New Zealand Gazette – 2005 – No. 143

Page 3499

✨ Financial Statements Notes



UNISON NETWORKS - LINES BUSINESS

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For The Year Ended 31 March 2005

Operating lease commitments

2005 2004
$000 $000
Less than 1 year 79 77
1-2 years 33 51
2-5 years 13 28
125 156

11 CONTINGENT LIABILITIES

Note 22 discloses potential implications for Unison’s prices and asset carrying values as a result of the Commerce Commission’s current inquiry. Unison has no other contingent liabilities. (2004: The Company was audited by the Inland Revenue Department for the tax year ending 31 March 2001. At balance Unison has not received any notification of intention to reassess the years under review.)

12 Reconciliation of Reported Net Operating Surplus After Tax With Net Cash Flows From Operating Activities

2005 2004
$000 $000
Net Surplus 18,700 10,977
(Loss)/Gain on sale of property, plant and equipment 16 (95)
Amortisation 4,495 4,495
Depreciation 12,748 11,599
35,959 26,976
(Increase)/decrease in receivables and prepayments (793) (1,228)
(Decrease)/increase in inventories 49 (580)
(Decrease)/increase in accounts payable, accruals and employee entitlements (42) (867)
(Increase)/decrease in taxation payable 625 (1,718)
Net cash inflow from operating activities 35,798 22,583

13 FINANCIAL INSTRUMENTS

Unison has a comprehensive treasury policy approved by the Board of Directors to manage the risks of financial instruments.

a) Interest rate risk

Unison manages interest rate exposure in accordance with treasury policy by hedging no less than 60% of all borrowings with interest rate hedge instruments.

The weighted average rates on interest rate swaps are as follows:

2005 % 2005 $000 2004 %* 2004 $000
Maturing in less than 1 year 6.15 30,000 6.11 24,000
Maturing between 1 and 2 years 6.32 30,000 6.15 30,000
Maturing between 2 and 5 years 6.46 54,000 6.41 84,000
Maturing after 5 years 6.65 36,000 6.65 36,000
150,000 174,000
  • The weighted average rates for 2004 were incorrectly stated in the 2004 Financial Statements and have hence been corrected.

The market valuation of these hedges at 31 March 2005 is a $2,177,608 gain (2004: $2,363,309 loss).

b) Credit risk

Financial instruments which potentially subject Unison to credit risk principally consist of bank balances and accounts receivable. No collateral is held on these amounts. (2004: nil)

Maximum exposure to credit risk is the amount stated in the Financial Statements and is net of any recognised provision for losses on these financial instruments.

c) Concentration of credit risk

Unison has exposure to four electricity retailers that account for 69% of accounts receivable. To minimise this risk, the Company performs credit evaluations on all energy retailers in conjunction with the contractual requirements contained within the use of system agreements operating with these parties. A bond or bank undertaking may be required where deemed necessary. At balance date a bank guarantee of up to $5.4 million is currently held by Unison in respect of one retailer.



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VUW Te Waharoa — PDF NZ Gazette 2005, No 143


Gazette.govt.nz — PDF NZ Gazette 2005, No 143




✨ LLM interpretation of page content

🏭 Unison Networks Limited - Notes to Financial Statements (continued from previous page)

🏭 Trade, Customs & Industry
Financial reporting, Operating lease commitments, Contingent liabilities, Reconciliation of net operating surplus, Financial instruments, Interest rate risk, Credit risk, Concentration of credit risk