New Zealand Gazette – 2005 – No. 127

Page 3080

✨ Financial Statements



HORIZON ENERGY DISTRIBUTION LIMITED - Lines Business

NOTES TO THE FINANCIAL STATEMENTS

17 CAPITAL COMMITMENTS

The Group has commitments for future capital expenditure amounting to $181,090 ($201,000 in 2004).

18 FINANCIAL INSTRUMENTS

(a) The nature of activities and management policies with respect to financial instruments is described as follows:

(i) Interest Rates

The Group generally uses swaps to manage interest rate risk.

As at 31 March 2005, the face value of the swaps the Group held were as follows:

Interest Rate Options:
Commencement Date Rate Term 2005 2004
$000 $000
3 April, 1998 7.07% Twelve Years 4,800 6,900
20 December, 2000 7.27% 66 Months - 4,000
29 June, 2001 7.16% Six Years 4,000 4,000
16 August, 2002 6.68% Seven Years 3,000 3,000
20 March, 2003 6.76% 45 Months 4,000 4,000
20 September, 2004 6.98% 59 Months 4,000 -
19,800 21,900

The mark to market value of the interest rate swap agreements as at 31 March 2005 showed a loss of $54,490 (2004 - loss of $759,309). No provision is made for any unrealised loss.

(ii) Credit

In the normal course of its business the Company incurs credit risk from trade debtors and financial institutions. The Company has a credit policy which is used to manage this exposure to credit risk. As part of this policy, limits on exposures have been set and are monitored on a regular basis.

(b) Fair Values

The fair value of Term Loans is $26.6 million which is the same as the carrying value disclosed in Note 11.

19 PROVISIONS

2005 2004
Balance at Beginning of Year 90 -
Current Year Provision - 90
Provision Released - -
Balance at 31 March 90 90

The provision includes allowances for costs associated with disputes.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2005, No 127


Gazette.govt.nz — PDF NZ Gazette 2005, No 127




✨ LLM interpretation of page content

🏭 Horizon Energy Distribution Limited Financial Statements (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Capital Commitments, Financial Instruments, Interest Rates, Credit, Fair Values, Provisions