New Zealand Gazette – 2003 – No. 115

Page 3139

✨ Financial Statements Notes



Notes to and Forming Part of the Financial Statements

For the Year Ended 31 March 2003

POWERCO

ELECTRICITY DIVISION

13 Related Party Transactions

As Powerco Limited is an integrated business, this disclosure relates to the business as a whole.

Powerco paid consulting fees amounting to $109,100 (2002: $58,200) to Upson Associates Ltd, a company in which Mr B R Upson, a director, has an interest, for work performed in the area of corporate development, finance and regulatory advice.

Powerco paid consulting fees amounting to $17,000 (2002: nil) to Ogden Consulting Limited, a company in which Mr J H Ogden, a director, has an interest, for work performed in the area of corporate finance and regulatory advice.

Powerco is also deemed to have a related party relationship with New Plymouth District Council. The New Plymouth District Council holds a 38.16% material interest in Powerco Limited. Powerco paid $124,938 (2002: $52,304) rent to the New Plymouth District Council at market rates. Rates have been paid to New Plymouth District Council to the value of $7,147 (2002: $21,060). Utility Rates have been paid to the New Plymouth District Council to the value of $5,238 (2002: nil). Other arms length transactions with the New Plymouth District Council amounted to $68,954 (2001: $131,628).

Powerco paid consulting fees and brokerage amounting to 48% of the total fees paid for asset acquisition transactions, (2002: 77%) to companies in the Macquarie New Zealand group, companies in which Mr J H Ogden was a Director. Mr J H Ogden resigned as a Director of Macquarie New Zealand Limited on 30 April 2002, resigned as a Director of Macquarie Equities New Zealand Limited on 5 December 2002 and resigned as a consultant to Macquarie New Zealand Limited on 31 January 2003.

In the financial year under review, all operating activities and relevant assets were transferred to a subsidiary company, Powerco Management Services Limited. PMS Ltd charges Powerco market rates for all services provided, including electricity network management and maintenance. The following amounts were paid to PMS Ltd for services provided:

  • Network Maintenance: $14,339,832
  • Asset Management: $7,466,084
  • Operations and Dispatch: $2,188,055
  • Group Services: $3,108,810
  • Corporate Services: $12,116,457

These transactions are completed upon normal commercial terms. No amounts have been forgiven or written off in the year.

14 Reconciliation of Operating Surplus After Taxation with cash inflow from operating activities

2003 2002
$000 $000
Operating surplus after taxation 40,030 29,153
Add (less) non cash items
Depreciation 21,305 18,237
Provision for Doubtful Debts - 308
21,305 18,545
Movements in working capital
Asset revaluation - 10,874
Accounts receivable (8,003) 1,591
Change in Prepayments 2,022 (2,173)
Movements in deferred taxation 1,334 (1,659)
Tax refund due inventories 12,778 12,608
Accounts payable (12,732) (5,240)
20,663 17,406
Net cashflow from operating
activities $81,998 $65,104


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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2003, No 115


Gazette.govt.nz — PDF NZ Gazette 2003, No 115




✨ LLM interpretation of page content

🏭 Powerco Limited Financial Statements (continued from previous page)

🏭 Trade, Customs & Industry
21 August 2003
Electricity, Financial Statements, Taxation, Performance Measures, Contingent Liabilities, Capital Commitments, Financial Instruments, Credit Risk, Interest Rate Risk, Foreign Exchange Risk, Fair Value
  • B R Upson, Director with consulting fees paid
  • J H Ogden, Director with consulting fees paid