New Zealand Gazette – 2008 – No. 47

Page 1351

✨ Financial Statements



ALPINE ENERGY LIMITED LINES BUSINESS

Notes to and Forming Part of the Financial Statements - Continued

For the Year Ended 31 March 2007

b) Credit Risk

The Company has minimal credit risk in its holding of various financial instruments. These financial instruments relate to cash and short term investments, trade and sundry receivables.

c) Concentration of Credit Risk

Financial instruments which potentially subject the Company to concentrations of credit risk principally relate to cash and short term investments, trade and sundry receivables.

The company places its cash and short term investments with financial institutions who have a Standard and Poors credit rating of "A" or better or who provide first ranking security and also limits the amount of credit exposure to any one financial institution.

The level of credit risk in respect of accounts receivable is influenced by the small number of major electricity retailers conveying electricity across the Company’s network.

d) Interest Rate Risk

Interest rate risk is the risk that interest rates will change, increasing or decreasing the cost of borrowing or lending. The Company’s short term deposits are at fixed rates with maturities not exceeding two years. Consequently the Company is not exposed to significant interest rate risk.

e) Currency Risk

Currency risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company has no exposure to currency risk.

8. Reconciliation Of Operating Surplus With Cash Flows From Operating Activities

2007 2006
$ $
Operating Surplus After
Income Tax 6,383,148 7,794,073
Add/ (Deduct) Non Cash
Items
Depreciation & Amortisation 4,585,424 4,710,789
Deferred Tax 1,824,556 1,346,370
12,793,128 13,851,232
Add/ (Deduct) Movements
in Working Capital
(Increase)/Decrease in
Debtors (1,230,913) 436,819
Increase/(Decrease) in
Creditors 596,276 (363,345)
Increase/(Decrease) in
Provision for Tax (826,170) 206,116
(1,460,807) 279,590
11,332,321 14,130,822

9. Related Party Transactions

Associated Entity: Networks South Limited (excl GST)

Networks South Limited is 50% owned by Alpine Energy Limited and provided administrative, engineering and planning functions for the network from 1 April 2006 to 1 December 2006. These services are charged on a fixed contract basis.

During the period, this charge totalled $47,268 (31 March 2006 $336,072). The outstanding amount as at 1 December 2006 was $0 (31 March 2006 $2,048) payable on normal commercial terms.

No debts were written off or forgiven and no transactions took place at nil or nominal value.

On 1 December 2006 NetCon Limited merged with its parent Network South Limited and was then renamed NetCon Limited. For comparative purposes the full 12 months of Netcon Ltd trading with Alpine Energy Ltd has been disclosed below.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2008, No 47


Gazette.govt.nz — PDF NZ Gazette 2008, No 47




✨ LLM interpretation of page content

🏭 Notes to and Forming Part of the Financial Statements for Alpine Energy Limited Lines Business (continued from previous page)

🏭 Trade, Customs & Industry
31 March 2007
Financial statements, Credit risk, Interest rate risk, Currency risk, Operating surplus, Cash flows, Related party transactions