✨ Financial Statements
WEL NETWORKS LIMITED
| Line Business | 2007 | 2006 |
|---|---|---|
| ($000s) | ($000s) |
9 Non-current Liabilities
Payables and accruals
Borrowings (refer note 17) | 36,546 | 36,546 |
Deferred tax | 18,681 | 17,760 |
Other non-current liabilities | - | - |
Total non-current liabilities | 55,227 | 54,306 |
10 Contingencies
There are no contingent liabilities (2006: nil).
11 Capital commitments
Capital expenditure
Capital commitments as at 31 March 2007 are estimated at $1,124,000 (2006: $1,499,000).
Operating Leases
Non-cancellable operating lease commitments:
| 2007 | 2006 | |
|---|---|---|
| Within one year | 239 | 54 |
| Later than one, not later than two years | 758 | 43 |
| Later than two, not later than five years | 2,265 | 120 |
| Later than five years | 6,244 | 759 |
Total Operating Leases | 9,506 | 976 |
The lines business leases land and premises. Operating leases held over properties give the lines business the right to renew the lease subject to a predetermination of the lease rental by the lessor. There are no options to purchase in respect of land and premises held under operating leases.
12 Financial Instruments
(a) Risk
Nature of activities and management policies with respect to financial instruments:
(i) Concentrations of Credit Risk
In the normal course of its business, the lines business incurs credit risk from trade receivables from customers and transactions with financial institutions. A provision has been set up for trade receivables which are unlikely to be collected.
The lines business has a credit policy which is used to manage this exposure to credit risk. As part of this policy, limits on exposures with counterparties have been set and are monitored on a regular basis.
The lines business has in excess of 90% of its trade debtors owing from the incumbent.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 29
Gazette.govt.nz —
NZ Gazette 2008, No 29
✨ LLM interpretation of page content
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Financial Performance and Equity Movements of WEL Networks Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial statements, Non-current liabilities, Contingencies, Capital commitments, Operating leases, Financial instruments, Credit risk