✨ Financial Statements Notes
28 FEBRUARY 2012 NEW ZEALAND GAZETTE, No. 24 687
VECTOR LIMITED & SUBSIDIARIES
GAS TRANSMISSION ACTIVITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
12. COMMITMENTS
| 2011 | 2010 | |
|---|---|---|
| $000 | $000 | |
| Capital expenditure commitments | ||
| Estimated capital expenditure contracted for at balance date but not provided | 503 | 1,975 |
Operating lease commitments
| 2011 | 2010 | |
|---|---|---|
| $000 | $000 | |
| Within one year | 310 | 321 |
| One to five years | 976 | - |
| Beyond five years | 966 | 40 |
| Total | 2,252 | 361 |
The majority of the operating lease commitments relate to premises leases.
Finance lease commitments
| 2011 | 2010 | |
|---|---|---|
| $000 | $000 | |
| Within one year | 458 | 619 |
| One to five years | 986 | 468 |
| Total | 1,444 | 1,087 |
| Less: future finance costs | (172) | (126) |
| Present value of minimum lease payments | 1,272 | 961 |
Present value of finance lease liability
| 2011 | 2010 | |
|---|---|---|
| $000 | $000 | |
| Within one year | 364 | 675 |
| One to five years | 908 | 286 |
| Present value of minimum lease payments | 1,272 | 961 |
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. Forward exchange contracts are used to hedge forecasted foreign currency exposure arising out of the capital expenditure programme. 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.
| 2011 | 2010 | |
|---|---|---|
| CARRYING | CARRYING | |
| AMOUNT | AMOUNT | |
| $000 | $000 | |
| Receivables and prepayments | 8,621 | 8,762 |
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NZ Gazette 2012, No 24
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Notes to the Financial Statements for Vector Limited & Subsidiaries Gas Transmission Activities
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Notes, Commitments, Leases, Risk Management