✨ Financial Statements
UNISON NETWORKS - LINES BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the year ended 31 March 2007
The weighted average rates on interest rate options are as follows:
| 2007 % | 2007 $'000 | 2006 % | 2006 $'000 | |
|---|---|---|---|---|
| Maturing after 5 years | 7.30 | 30,000 | 0 | |
| 30,000 | 0 |
The market valuation of these hedges at 31 March 2007 is a $636,000 gain (2006: nil).
b) Credit risk
Financial instruments which potentially subject Unison to credit risk principally consist of bank balances and accounts receivables. No collateral is held on these amounts (2006: nil).
Maximum exposure to credit risk is the amount stated in the Financial Statements and is net of any recognised provision for losses on these financial instruments.
c) Concentration of credit risk
Unison has exposure to six electricity retailers that account for 84% 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 that 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, forward exchange contracts in operation were US$956,688 (2006: nil). The market valuation of these exchange contracts as at 31 March 2007 is a $127,618 loss (2006: nil).
13 SEGMENT INFORMATION
Unison operates predominantly in one industry - the ownership, management and operation of electricity networks within New Zealand.
14 RESERVES
| 2007 $'000 | 2006 $'000 | |
|---|---|---|
| Asset Revaluation Reserve | ||
| Balance at beginning of year | 248,010 | 112,166 |
| Revaluation of Land and Buildings | 2,910 | |
| Revaluation of electrical distribution network | - | 135,844 |
| 250,920 | 248,010 |
Detailed As
| 2007 | 2006 | |
|---|---|---|
| Land | 4,382 | 278 |
| Revaluation of electrical distribution network | 246,538 | 247,732 |
| 250,920 | 248,010 |
15 RETAINED EARNINGS
| 2007 $'000 | 2006 $'000 | |
|---|---|---|
| Balance at beginning of year | (13,668) | 32,712 |
| Net surplus/(deficit) | 16,127 | (41,780) |
| Dividends paid | (100) | (4,600) |
| Land and building revaluations | - | - |
| Balance at end of year | 2,359 | (13,668) |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 53
Gazette.govt.nz —
NZ Gazette 2008, No 53
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Unison Networks Limited - Lines Business Financial Position Statement
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🏭 Trade, Customs & IndustryFinancial Statements, Interest Rates, Credit Risk, Fair Values, Currency Risk, Segment Information, Reserves, Retained Earnings