New Zealand Gazette – 2006 – No. 162

Page 4716

✨ Financial Statements



4716

NEW ZEALAND GAZETTE, No. 162

1 DECEMBER 2006

  1. PROVISIONS

The following movements were recorded in provisions held by Marlborough Lines Limited during the 2005/2006 financial year.

Provision for Staff Leave Opening balance movement Closing balance
151 9 160
Provision for Retirement Gratuities 119 4 123
  1. COMMITMENTS

11.1 Capital Commitments.

Marlborough Lines capital expenditure committed to at balance date but not recognised in the financial statements

2006 2005
$000's $000's
2,051 2,021

11.2 Lease Commitments

Commitments under present lease agreements over the next five years for the parent company are presently estimated as follows: less than 1 year - $11,628, less than 2 years - $11,628, 3-5 years - $25,883, greater than 5 years - $25,770. The Company will continue to incur lease costs for a number of substation and repeater sites beyond 2011.

  1. CONTINGENT LIABILITIES

Marlborough Lines has no contingent liabilities as at 31 March 2006. (2005 Nil)

  1. FINANCIAL INSTRUMENTS

13.1 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.

13.2 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.

13.3 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 (2005 - $nil).

13.4 Fair Values

The carrying amount of cash, short term deposits and trade receivables reflect their fair values. The fair value of foreign currency forward exchange contracts represents the estimated amount the Company would receive on termination of the contract at balance date, thereby taking into account the unrealised gain of open contracts.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 162


Gazette.govt.nz — PDF NZ Gazette 2006, No 162




✨ LLM interpretation of page content

🏭 Marlborough Lines Limited Financial Statements for the Year Ended 31 March 2006 (continued from previous page)

🏭 Trade, Customs & Industry
Financial statements, Revenue, Expenditure, Marlborough Lines Limited, Electricity Information Disclosure Requirements, Cash Flows, Operating Activities, Investing Activities, Financing Activities, Provisions, Commitments, Contingent Liabilities, Financial Instruments