New Zealand Gazette – 2003 – No. 121

Page 3292

✨ Financial Statements

3292 NEW ZEALAND GAZETTE No. 121

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS (Continued)

Line Business
	2003	2002
	$000's	$000's

Reconciliation of Net Surplus After Taxation with Cash Inflow from Operating Activities:
Net Surplus After Taxation | 6,477 | 4,932 |

Add (less) Non Cash Items:
Depreciation | 3,831 | 3,806 |

Movements in Working Capital
Increase (Decrease) in Creditors | 601 | (187) |
(Increase) Decrease in Taxation Refund | (226) | 324 |
(Increase) Decrease in Accounts Receivable | (254) | (162) |
(Increase) Decrease in Inventory | (261) | 11 |

Net Cash Flow from Operating Activities | $10,168 | $8,724 |

Financial Instruments:
Financial Instruments which potentially subject the company to credit risk principally consist of cash bank balances, short term deposit, and accounts receivable. Northpower does not generally require collateral from customers.
Northpower places its cash and short term deposits with high credit quality financial institutions (A1 or better), and limits the amount of credit exposure to any one institution, in accordance with Company policy.
The fair value of all financial instruments is approximated by the carrying value recorded in the Statement of Financial Position.
Segment information:
Northpower Ltd operates predominantly in the electricity network industry within the Northland area. Therefore, there is no segmental information.
Contingent Liabilities:
There are no contingent liabilities (2002 $Nil)
Commitments:
| 2003 | 2002 |
| 687 | NIL |
Related Parties:
The Northpower Electric Power Trust is the sole shareholder.
Northpower's Contracting Division provided the following services to the Network Division:-

	2003	2002
	$000's	$000's
(i) Maintenance of Assets	3,366	2,688
(ii) Consumer disconnections/reconnections	15	0
(iii) Other Services	873	960

Construction of New Assets:-
(a) Subtransmission Assets | 64 | 948 |
(b) Zone Substations | 498 | 602 |
(c) Distribution Lines and Cables | 209 | 71 |
(d) Medium Voltage Switchgear | 20 | 117 |
(e) Distribution Transformers | 315 | 189 |
(f) Distribution Substations | 0 | 0 |
(g) Low Voltage Reticulation | 28 | 237 |

Network Maintenance and Capital Works are charged in accordance with a Fixed Term Contract.

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