✨ Financial Statements Notes
UNISON NETWORKS - LINES BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the year ended 31 March 2006
13 FINANCIAL INSTRUMENTS ...continued
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. (2005: nil)
Maximum exposure to credit risk is the amount stated in the financial statements and is net of any recognised provision for loses on these financial instruments.
c) Concentration of credit risk
Unison has exposure to four electricity retailers that account for 66% 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.
d) Fair values
The methods and assumptions used are carrying amounts in the financial statements reflect the estimated fair value of the financial instruments including receivables, bank and investments, accounts payable and term debt. There were no material investments at balance date.
e) Currency risk
Unison enters into forward exchange contracts for any significant transactions conducted in currency other than the New Zealand dollar to eliminate the effects of any currency fluctuations. At balance date no forward exchange contracts were in operation (2005: nil).
14 SEGMENT INFORMATION
Unison operates predominantly in one industry - the ownership, management and operation of electricity networks within the Hawke’s Bay, Rotorua and Taupo regions.
15 RESERVES
| 2006 | 2005 | |
|---|---|---|
| $'000 | $'000 | |
| Asset Revaluation Reserve | ||
| Balance at beginning of year | 112,166 | 112,166 |
| Revaluation of electrical distribution network | 135,844 | - |
| 248,010 | 112,166 |
Detailed As
| Land | 278 | 278 |
| Revaluation of electrical distribution network | 247,732 | 111,888 |
| 248,010 | 112,166 |
16 RETAINED EARNINGS
| 2006 | 2005 | |
|---|---|---|
| $'000 | $'000 | |
| Balance at beginning of year | 32,712 | 17,050 |
| Net surplus/(deficit) | (41,780) | 18,700 |
| Dividends paid | (4,600) | (3,038) |
| (13,668) | 32,712 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 157
Gazette.govt.nz —
NZ Gazette 2006, No 157
✨ LLM interpretation of page content
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Notes to Financial Statements for Unison Networks Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial statements, Credit risk, Concentration of credit risk, Fair values, Currency risk, Segment information, Reserves, Retained earnings