4
2006
$000's
2005
$000's
12. Borrowings
Repayable within one year
1,933
400
Current borrowings
1,933
400
Repayable within two years
7,300
10,433
Repayable within two to five years
100
00
Non-current borrowings
7,400
10,33
Total borrowings
9,333
11,333
The company has a total available bank facility of $14.00 million (200: $14.833 million). Borrowings under the
facility at 30 June 200 were $.333 million (200: $11.333 million), secured by way of a debenture over the
assets of the company. In addition the company has a bank overdraft facility totaling $00,000 (200: $00,000)
repayable on demand.
Interest rates on the floating rate debt is based on bank bill rates plus a margin and averaged .8% for the year
(200: .% to .3%). On the term loan portion of the borrowing, the average interest rate incurred for the year
was .80% (200: .80%).
13. Financial instruments
The company is party to financial instruments as part of its everyday operations. These include instruments such as
bank balances, accounts receivable, accounts payable and term loans. The company has policies providing for risk
management for interest rates and the concentration of credit.
Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to the changes in market
interest rates. This could particularly impact on the cost of borrowings. The directors do not consider there is any
significant exposure to interest rate risk on the company's borrowings.
Currency risk
Currency risk is the 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.
Credit risk
Credit risk is the risk that a third party will default on its obligations to the company, causing the company to incur a
loss. Financial instruments which potentially subject the company to credit risk consist principally of cash and trade
receivables. Concentration of credit risk with respect to accounts receivable are high due to the reliance on the
Christchurch City Council for 2% of City Care Limited's revenue. However, Christchurch City Council is considered
a high credit quality entity.
Fair value
For all financial instruments the carrying value is assessed as being fair value.
14. Equity
,03,000 fully-paid ordinary shares
6,036
,03
2,00,000 redeemable preference shares
2,500
2,00
8,536
8,3
At 30 June 200 the company had issued ,000,000 $1.00 redeemable preference shares. Of these, 2,00,000
have been fully paid; the remaining 2,00,000 redeemable preference shares are issued but uncalled. The option
to call this payment is with the directors of City Care Limited. All ordinary shares have one vote per share and
participate equally in any dividend distribution or any surplus on the winding up of the company.
