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New Zealand Gazette – 2005 – No. 20

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✨ Financial Statements Continuation

19 JANUARY 2005
NEW ZEALAND GAZETTE, No. 20
455

Alpine Energy Limited Lines Business

Notes to and Forming Part of the Financial Statements - Continued
for the Year Ending 31 March 2004

Capital Commitments

In respect of the business activities being reported on, the Company has capital commitments amounting to $6,508,807 as at 31 March 2004 (2003 $2,689,573).

Financial Instruments

a) Concentration of Credit Risk

Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of bank deposits and accounts receivable. 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 and bank deposits with high credit quality financial institutions and limits the amount of credit exposure to any one financial institution.

The Company continually evaluates and monitors the credit quality of its customers. There is a concentration of credit risk in relation to activities with associated entities. This risk is managed indirectly through appointments to the governing bodies of these associated entities.

b) Fair Value

The carrying value of cash and bank deposits, accounts receivable and accounts payable is equivalent to their fair value.

Reconciliation Of Operating Surplus With Cash Flows From Operating Activities

	2004	2003
Operating Surplus After Income Tax	8,795,872	8,439,232
Add/ (Deduct) Non Cash Items
Depreciation	3,229,174	3,135,465
Deferred Tax
	12,025,046	11,574,697
Add/ (Deduct) Movements in Working Capital
(Increase)/Decrease in Debtors	52,160	(291,474)
(Increase)/Decrease in Deferred Tax	(62,723)	(70,978)
Increase/(Decrease) in Creditors	(366,395)	639,518
Increase/(Decrease) in Provision for Tax	514,979	728,959
	12,540,025	12,303,656

Related Party Transactions

Associated Entity: Networks South Limited (excl GST)

Networks South Limited is 50% owned by Alpine Energy Limited and provided administrative, engineering and planning functions for the network from 1 April 2003 to 31 March 2004. These services are charged on a fixed contract basis.

During the period, this charge totalled $3,254,518 (2003 $2,882,534). The outstanding amount as at 31 March 2004 was $85,304 (2003 $90,106) payable on normal commercial terms.

No debts were written off or forgiven and no transactions took place at nil or nominal value.

Transactions do not relate to the categories specified in the Regulations except 'Maintenance of Assets' which totalled $875,173 in 2004 (2003 $811,182).