✨ Financial Statements
NGC HOLDINGS LIMITED
GAS TRANSMISSION ACTIVITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
11. COMMITMENTS
| 2008 | 2007 | |
|---|---|---|
| $'000 | $'000 | |
| Capital expenditure commitments | ||
| Capital expenditure contracted for at balance date but not yet incurred | - | 903 |
Operating lease commitments
| 2008 | 2007 | |
|---|---|---|
| Within one year | 7 | 35 |
| One to five years | 14 | - |
| Total | 21 | 35 |
The majority of the operating lease commitments relate to premises.
Finance lease commitments
| 2008 | 2007 | |
|---|---|---|
| One to five years | 1,180 | 1,223 |
| Total | 1,180 | 1,223 |
| Less: future finance charges | (143) | (206) |
| Present value of minimum lease payments | 1,037 | 1,017 |
Present value of finance lease liability
| 2008 | 2007 | |
|---|---|---|
| One to five years | 1,037 | 1,017 |
| Present value of minimum lease payments | 1,037 | 1,017 |
Finance leases relate to motor vehicles with varying lease terms.
12. INTANGIBLE ASSETS
| | COST/
| | VALUATION | ACCUMULATED AMORTISATION | CARRYING AMOUNT |
|--------------------|------------|--------------------------|-----------------|
| | $'000 | $'000 | $'000 |
2008
| Software | 27,539 | (18,920) | 8,619 |
| Total | 27,539 | (18,920) | 8,619 |
2007
| Software | 27,478 | (15,285) | 12,193 |
| Total | 27,478 | (15,285) | 12,193 |
13. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
A comprehensive treasury policy approved by the board of directors is used to manage the risks of financial instruments. The policy outlines the objectives and approach that will be adopted in the treasury management processes. The policy covers, among other things, management of credit risk, interest rate risk, funding risk, liquidity risk, currency risk and operational risk.
INTEREST RATE RISK
The interest rate exposure is actively managed in accordance with treasury policy. In this respect, at least forty percent of all debt must be at fixed interest rates or effectively fixed using interest rate swaps, forward rate agreements, options and other derivative instruments. The main objectives are to minimise the cost of total debt, control variations in the interest expense of the debt portfolio from year to year and to match where practicable the interest rate risk profile of debt with the risk profile of the assets. The treasury policy sets parameters for managing the interest rate maturity profile. The parameters depend upon the Standard and Poor's credit rating and the Reserve Bank of New Zealand continuing to implement monetary policy through adjustments to the official cash rate.
Next Page →
NZ Gazette 2008, No 185
✨ LLM interpretation of page content
🏭
NGC Holdings Limited Financial Statements for Gas Transmission Activities
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial statements, Commitments, Capital expenditure, Operating leases, Finance leases, Intangible assets, Software, Financial instruments, Risk management, Interest rate risk