New Zealand Gazette – 2005 – No. 18

Page 414

✨ Financial Statements



414

NEW ZEALAND GAZETTE, No. 18

19 JANUARY 2005

10.4 Annual Valuation Reconciliation Report Year ending 31 March 2004 (Schedule 1 Part 8)
System fixed assets at ODV at 31 March 2003 76,992 70,828
Add system fixed assets acquired during the Year at ODV 5,660 5,308
Less system fixed assets disposed of during the year at ODV (892) (488)
Less depreciation on system fixed assets at ODV (3,847) (2,752)
Add revaluations of system fixed assets 22,483 4,097
Equals system fixed assets at ODV at 31 March 2004 100,396 76,992

  1. PROVISIONS
    The following movements were recorded in provisions held by Marlborough Lines Limited during the 2003/2004 financial year.

Provision for Staff Leave Opening balance movement Closing balance
Provision for Retirement Gratuities 139 (29) 110
Employee entitlements in non current liabilities 102 (18) 84

  1. COMMITMENTS
    12.1 Capital Commitments.
    Marlborough Lines capital expenditure committed to at balance date but not recognised in the financial statements 968 615

12.2 Lease Commitments
Commitments under present lease agreements over the next five years are as follows: 2005 - $14,000, 2006 - $4,500, 2007 - $4,500, 2008 - $4,500, 2009 - $4,500. The Company will continue to incur lease costs for a number of substation and repeater sites beyond 2009. The lease costs for these sites is not able to be quantified at the present time.

  1. CONTINGENT LIABILITIES
    Marlborough Lines has no contingent liabilities as at 31 March 2004. (2003 Nil)

  2. FINANCIAL INSTRUMENTS
    14.1 Credit Risk
    Credit risk is the risk that an outside party will not be able to meet its obligations to the Company. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash deposits, short term deposits and trade receivables. The maximum credit risk is the book value of these financial instruments; however, the Company considers the risk of non-recovery of these amounts to be minimal. The Company places its cash deposits with high credit quality financial institutions. Credit risk exists in respect of accounts receivable. The Company is able to impose bond requirements on retailers trading across its network in accord with the use of system agreements held with the retailers.

14.2 Interest Rate Risk
Interest rate risk is the risk that interest rates will change, increasing or decreasing the cost of borrowing or lending. The Groups short term deposits are at fixed interest rates and mature within one year.

14.3 Currency Risk
Currency risk is the risk that amounts payable in foreign currencies will change due to movements in exchange rates. The Company enters into foreign currency forward exchange contracts in order to manage its exposure to fluctuations in foreign currency exchange rates on the purchase of specific plant and equipment items from overseas suppliers. Total cover under forward exchange contracts at balance date was $nil (2003 - $nil).



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2005, No 18


Gazette.govt.nz — PDF NZ Gazette 2005, No 18




✨ LLM interpretation of page content

🏭 Marlborough Lines Limited Financial Statements (continued from previous page)

🏭 Trade, Customs & Industry
Financial Performance, Revenue, Expenditure, Marlborough Lines Limited