New Zealand Gazette – 2004 – No. 168

Page 4208

✨ Financial Statements



4208

NEW ZEALAND GAZETTE, No. 168

17 DECEMBER 2004

Interest rate risk

Interest rate risk is the risk that the value of the company’s assets and liabilities will fluctuate due to changes in market interest rates.

The company has interest bearing debt which is subject to interest rate variations in the market.

Interest rate swaps are employed to manage interest rate exposure on long term borrowings.

Contracts have been entered into with various counterparties having such credit ratings and in accordance with such dollar limits as set by the board of directors. The company does not require collateral or other security to support financial instruments with credit risk. While the company may be subject to credit losses up to the notional principal or contract amounts in the event of non performance by its counterparties, it does not expect such losses to occur.

For interest rate swaps the cash requirements are limited to interest payable or receivable which is a net payable amount of $25,869 as at 31 March 2004 (- in 2003).

  1. Reconciliation of net surplus after taxation with net cash flow from operating activities
Net surplus after tax 2004 $000’s 2003 $000’s
35,453 39,953

Non cash items:

Depreciation 21,940 18,137

Deferred tax 4,020 4,984

Asset write offs 750 594

Subsidised assets (2,771) (1,745)

Other 210 210

Movements in other working capital items:

(Increase)/decrease in debtors 505 (1,226)

(Increase)/decrease in interest receivable - -

(Increase)/decrease in stocks (1) 19

Increase/(decrease) in creditors (1,529) (643)

Increase/(decrease) in interest payable 87 -

(Increase)/decrease in tax asset 799 3,269

Items classified as an investing activity:

(Profit)/loss on sale of property, plant and equipment (42) (46)

Net cash inflow from operating activities 59,421 63,506

  1. Contingent assets and liabilities

There were no material contingent assets or contingent liabilities as at 31 March 2004 or as at 31 March 2003.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2004, No 168


Gazette.govt.nz — PDF NZ Gazette 2004, No 168




✨ LLM interpretation of page content

🏭 Notes to the financial statements for Orion New Zealand Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial statements, Interest rate risk, Reconciliation, Contingent assets, Contingent liabilities