✨ Financial Statements and Performance Measures
NEW ZEALAND GAZETTE
No. 130
Notes to and Forming Part of the Financial Statements
For the Year Ending 31 March 2002
9 DISCLOSURE OF PERFORMANCE MEASURES PURSUANT TO REGULATION 15 AND PART II OF THE FIRST SCHEDULE OF THE GAS (INFORMATION DISCLOSURE) REGULATIONS 1997
| Financial Performance Measures | Gas 2002 | 2001 | 2000 | 1999 |
|---|---|---|---|---|
| (i) Accounting Return on Total Assets | 8.27% | 8.28% | 9.74% | 13.56% |
| (ii) Accounting Return on Equity | -0.85% | 7.17% | 7.87% | 13.41% |
| (iii) Accounting Rate of Profit including revaluation | 5.69% | 5.40% | 21.65% | 8.95% |
| (iv) Accounting Rate of Profit excluding revaluation | 5.69% | 5.40% | 7.21% | 8.95% |
| Efficiency Performance Measures | ||||
|---|---|---|---|---|
| (v) Direct Line Cost per Kilometre | $1,634.20 | $1,632.68 | $1,159.84 | $2,153.55 |
| (vi) Indirect Line Cost per Gas Customer | $64.45 | $72.26 | $56.54 | $9.44 |
10 CONTINGENT LIABILITIES AND COMMITMENTS
Contingencies
As Powerco is an integrated business, this disclosure relates to the business as a whole.
The company has been named as a Second Defendant in a claim issued by Todd Energy Limited and Kiwi Co-operative Dairies Limited against Transpower Limited. The plaintiffs allege various breaches of the Commerce Act 1986 and claim various declarations and injunctions together with damages totalling $19.9 million. However, on 25 October 2001, Kiwi Co-operatives Dairies Limited discontinued its proceedings against Powerco. This leaves Todd Energy Limited as the only plaintiff in the proceedings. The claim is being defended by Powerco, which contends that it is not in breach of any of its obligations. No provision for the claim has been included in the financial statements.
Capital Commitments
As Powerco is an integrated business, this disclosure relates to the business as a whole.
Commitments for future capital expenditure resulting from contracts entered into amounts to $840,000 (2001: $16,000).
11 FINANCIAL INSTRUMENTS
As Powerco is an integrated business, this disclosure relates to the business as a whole.
(i) Credit Risk
Financial instruments which potentially subject the Company to credit risk principally consist of bank balances and accounts receivable. There are no significant concentrations of credit risk. The five largest accounts receivable balances as at 31 March 2002 comprise 11.49% (2001: 73.76%) of total accounts receivable. These accounts are subject to a Board Prudential Supervision Policy which is used to manage the exposure to credit risk.
As part of this policy, limits on exposures have been set and are monitored on a regular basis. Cash deposits are only made with registered banks.
(ii) Interest Rate Risk
Interest rate risk is the risk that interest rates will change, increasing or decreasing the cost of borrowing or lending. The Company’s short term borrowings are on a floating daily interest rate. Non-current debt is funded by the Redeemable Fixed Coupon Bonds and Powerco’s Commercial Paper programme based on 90 day Bank Bills.
Powerco has entered into interest rate swap agreements to reduce the impact of the changes in interest rates on its borrowings. As at 31 March 2002 the Company had interest rate swap agreements with registered banks. The maturities of these agreements are shown in Note 10 (iv). The weighted average of the interest rate swap agreements (excluding the reverse swap agreement) produce an interest rate of 7.13% p.a.
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 130
Gazette.govt.nz —
NZ Gazette 2002, No 130
✨ LLM interpretation of page content
💰
Operating Revenue and Expenditure Financial Statements
(continued from previous page)
💰 Finance & RevenueOperating Revenue, Expenditure, Financial Statements, Gas, Line Charge Revenue, Interest Revenue
💰 Disclosure of Performance Measures
💰 Finance & RevenueFinancial Performance, Efficiency Measures, Accounting Return, Direct Line Cost, Indirect Line Cost
💰 Contingent Liabilities and Commitments
💰 Finance & RevenueContingencies, Legal Claims, Capital Commitments, Financial Statements
💰 Financial Instruments
💰 Finance & RevenueCredit Risk, Interest Rate Risk, Financial Instruments, Accounts Receivable, Interest Rate Swaps