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notes to the financial Statements
for the year ended 31 March 2012
30. Contingent assets and liabilities
Speedys Road Hydro Limited (the Company) is in mediation with Dairy Tech Limited (Dairy Tech) regarding a
claim from Dairy Tech that the Company owed a further $500,000 in respect of intake structure project works
that were built as part of the construction of a hydro generation scheme. The Company has rejected the claim
and noted that Dairy Tech owes the Company $532,800 by way of liquidated damages for late completion of
the project. No further formal steps have been taken in this matter by either party to commence proceedings.
(2011: $ Nil)
The minority shareholder has an option to purchase up to 49.9% of the equity in Speedy’s Road Hydro Limited.
This option expires on 1 September 2012. Discussions between the parties are currently underway and it is too
early to determine an outcome.
31. Operating lease arrangements
The Group is party to a number of operating leases for access to land for some communication sites and
substations. The lease amounts paid are immaterial to the Group’s overall operating costs. The Group does not
have an option to purchase the leased assets at the expiry of the lease period.
32. Events after balance date
There are no subsequent events after balance date.
33. Share based payments
No share based payments are made.
34. Related party transactions
Trading transactions
The Group traded with no related parties that are not members of the Group.
The amounts outstanding on intercompany loans are unsecured. No guarantees have been given or received.
Intercompany balances are stated in Notes 17 and 24.
Financial Corporation Limited
In August 2004, The Lines Company Limited divested its meter and relay assets into a wholly owned subsidiary,
in exchange for share capital.
Trading transactions within the group consist of collection of meter and relay income on behalf of Financial
Corporation Limited, management fees payable, holding of meter and relay inventories and the installation of
metering assets.
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