New Zealand Gazette – 2006 – No. 157

Page 4585

✨ Financial Statements Notes



29 NOVEMBER 2006 NEW ZEALAND GAZETTE, No. 157

4585

UNISON NETWORKS - LINES BUSINESS

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 31 March 2006

Operating lease commitments

2006 2005
$000 $000
Less than 1 year 32 79
1-2 years 10 33
2-5 years - 13
42 125

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.

12 RECONCILIATION OF REPORTED NET OPERATING SURPLUS AFTER TAX WITH NET CASH FLOWS FROM OPERATING ACTIVITIES

2006 2005
$000 $000
Net surplus/(deficit) (41,780) 18,700
(Gain)/loss on sale of property, plant and equipment (16) 16
Amortisation 4,495 4,495
Restatement of goodwill 60,559 -
Depreciation 13,316 12,748
36,574 35,959
(Increase)/decrease in receivables and prepayments (1) (793)
(Increase)/decrease in inventories (938) 49
(Decrease)/increase in accounts payable, accruals and employee entitlements (479) (42)
(Decrease)/increase in taxation payable (1,370) 625
Net cash inflow from operating activities 33,756 35,798

13 FINANCIAL INSTRUMENTS

Unison has a comprehensive treasury policy approved by the Board of Directors in respect of managing 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:

Maturities 2006 % 2006 $000 2005 % 2005 $000
Maturing in less than 1 year 6.35 30,000 6.15 30,000
Maturing between 1 and 2 years 6.45 30,000 6.32 30,000
Maturing between 2 and 5 years 6.51 46,000 6.46 54,000
Maturing after 5 years 6.58 64,000 6.65 36,000
170,000 150,000

Included in the 2006 notional swap amounts at 31 March 2006 are $40 million of forward start swaps that have been transacted but only actively hedge floating interest rates from 1 November 2006. Of the forward start swaps $10 million are maturing between 2 and 5 years and the remaining $30 million are maturing after 5 years.

The market valuation of these hedges at 31 March 2006 is a $136,843 gain (2005: $2,177,608 gain).



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 157


Gazette.govt.nz — PDF NZ Gazette 2006, No 157




✨ LLM interpretation of page content

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

🏭 Trade, Customs & Industry
Financial statements, Operating lease commitments, Contingent liabilities, Net cash flows, Financial instruments, Interest rate risk