✨ Financial Statements
NGC HOLDINGS LIMITED
GAS TRANSMISSION ACTIVITIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2009
12. COMMITMENTS (CONTINUED)
| 2009 | 2008 | |
|---|---|---|
| $'000 | $'000 | |
| Finance lease commitments | ||
| Within one year | 515 | - |
| One to five years | 1,113 | 1,180 |
| Total | 1,628 | 1,180 |
| Less: future finance charges | (214) | (143) |
| Present value of minimum lease payments | 1,414 | 1,037 |
| Present value of finance lease liability |
|---|
| Within one year |
| One to five years |
| Present value of minimum lease payments |
Finance leases relate to motor vehicles with varying lease terms.
13. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
FOREIGN EXCHANGE RISK
Transactions are conducted in foreign currencies for the purpose of protecting the NZD value of capital expenditure. The outstanding forward exchange contracts are used to hedge forecasted foreign currency exposure arising out of the capital expenditure program. Hence at balance date no significant exposure to foreign currency risk exists.
CREDIT RISK
In the normal course of business, there is exposure to credit risks from energy retailers and customers. Credit policies are in place, which are used to manage the exposure to credit risks.
There exists some concentration of credit exposures with a few large energy retailers and large energy customers. To minimise this risk, credit evaluations are performed on all energy retailers and large energy customers and requirement of a bond or other form of security where deemed necessary is made.
| 2009 | 2008 | |
|---|---|---|
| CARRYING | CARRYING | |
| AMOUNT | AMOUNT | |
| $'000 | $'000 | |
| Cash | - | 730 |
| Receivables and prepayments | 11,732 | 8,135 |
14. CONTINGENT LIABILITIES
Claims against the gas transmission activities, where appropriate, have been recognised and disclosed within provisions. No other material contingencies requiring disclosure have been identified (30 June 2008: nil).
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NZ Gazette 2009, No 173
✨ LLM interpretation of page content
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Notes to the Financial Statements for NGC Holdings Limited
(continued from previous page)
💰 Finance & Revenue30 June 2009
Financial Statements, Commitments, Lease Payments, Foreign Exchange Risk, Credit Risk, Contingent Liabilities, NGC Holdings Limited