09 Financial statements Financial Statements For the Year Ended 30 June 2011 Contents Directors’ <strong>Report</strong> 47 Independent Auditor’s <strong>Report</strong> 48 Statement <strong>of</strong> Comprehensive Income 49 Statement <strong>of</strong> Financial Position 50 Statement <strong>of</strong> Changes in Equity 51 Statement <strong>of</strong> Cash Flows 53 Notes to the Financial Statements 54 Statement by Directors 92 46
Directors’ <strong>Report</strong> For the yEAR ended 30 JuNE 2011 The Board <strong>of</strong> Directors <strong>of</strong> <strong>Endeavour</strong> <strong>Energy</strong> (the Corporation), formerly Integral <strong>Energy</strong>, have pleasure in submitting the accounts <strong>of</strong> the economic entity for the period 1 July 2010 to 30 June 2011, and the independent audit report thereon. 1 General information (a) Directors The names <strong>of</strong> Directors in <strong>of</strong>fice at any time during the year are shown on page 40. Details <strong>of</strong> meetings and attendance by Directors are shown in the Corporate Governance section on page 39. (b) Principal Activities The principal activities <strong>of</strong> the Corporation during the course <strong>of</strong> the period ended 30 June 2011 were the purchase, distribution and sale <strong>of</strong> electricity, meter data provision and maintenance, and the construction and management <strong>of</strong> electricity distribution assets. On 14 December 2010, the former Integral <strong>Energy</strong> received a Ministerial Direction under section 20N(1) <strong>of</strong> the State Owned Corporations Act 1989 in relation to the sale <strong>of</strong> its retail net assets. On 21 February 2011 a further Ministerial Direction under section 20N(1) <strong>of</strong> the State Owned Corporations Act 1989 in relation to affected retail employees impacted by the sale <strong>of</strong> the retail net assets. The Integral <strong>Energy</strong> retail net assets, along with the Integral <strong>Energy</strong> brand name, was sold on 1 March 2011, at which time activities relating to the purchase and sale <strong>of</strong> electricity ceased. Integral <strong>Energy</strong> was renamed <strong>Endeavour</strong> <strong>Energy</strong> following the sale <strong>of</strong> the Integral <strong>Energy</strong> brand name. 2 Business review (a) Operating Results The after tax pr<strong>of</strong>it <strong>of</strong> the Corporation for the year was $1,004.0m (2010: $179.0m), including a gain on the sale <strong>of</strong> the Retail net assets in the amount <strong>of</strong> $759.3m. 3. other items a State <strong>of</strong> Affairs <strong>Endeavour</strong> <strong>Energy</strong> is a <strong>New</strong> South Wales state-owned energy corporation incorporated under the <strong>Energy</strong> Services Corporation Act 1995 and operates within the terms <strong>of</strong> the Electricity Supply Act 1995 on behalf <strong>of</strong> its shareholder, the <strong>New</strong> South Wales Government. During the year the former Integral <strong>Energy</strong>’s retail net assets, along with the Integral <strong>Energy</strong> brand name was sold, and activities relating to the purchase and sale <strong>of</strong> electricity subsequently ceased. The financial statements for the Corporation for the period ending 30 June 2011 are presented on pages 49 to 91 inclusive. (b) Events Subsequent to Balance Date There has not arisen, in the interval between the end <strong>of</strong> the financial period and the date <strong>of</strong> this report, an event <strong>of</strong> a material and unusual nature likely, in the opinion <strong>of</strong> the Directors <strong>of</strong> the Corporation, to affect significantly the operations <strong>of</strong> the economic entity, the results <strong>of</strong> those operations, or the state <strong>of</strong> affairs <strong>of</strong> the economic entity, in subsequent financial years. (c) Likely Developments The Corporation’s purpose is encapsulated in the statement: Everyday we deliver to our communities the ability to live and the energy to grow. <strong>Endeavour</strong> <strong>Energy</strong> continues to remain focussed on operating a safe, reliable and sustainable network by maintaining a strong commercial focus, balancing commercial outcomes whilst managing stakeholder and community expectations, effectively delivering the core business processes that drive the business, and fully harnessing the skills and capabilities <strong>of</strong> our people through a clear focus on organisational alignment underpinned by the values <strong>of</strong> the Corporation. Further information about likely developments in the operations <strong>of</strong> the Corporation and the expected results <strong>of</strong> those operations in subsequent financial years has not been included in this report as the Directors believe, on reasonable grounds, that to include such information would be likely to result in unreasonable prejudice to the Corporation. (d) Directors’ Benefits During the period no Director <strong>of</strong> the Corporation has received, or become entitled to receive, any benefits by reason <strong>of</strong> a contract made by the Corporation or a related body corporate with a Director, or with a firm <strong>of</strong> which a Director is a member, or with an entity in which a Director has a substantial interest. (e) Environmental Regulation <strong>Performance</strong> The Corporation’s environmental and waste discharge obligations are regulated under both State and Federal Law. All environmental performance obligations are monitored by the Environmental Steering Committee and subjected, from time to time, to Government agency audits and site inspections. The Corporation has a policy <strong>of</strong> at least complying, but in most cases exceeding, its environment performance obligations. (f) Rounding <strong>of</strong> amounts Amounts in the financial statements have been rounded to the nearest thousand dollars unless specifically stated to be otherwise. Signed in accordance with a resolution <strong>of</strong> the Directors: Vince Graham Director 22 September 2011 Michael McLeod Director 22 September 2011 <strong>Endeavour</strong> <strong>Energy</strong> <strong>Annual</strong> <strong>Performance</strong> <strong>Report</strong> 2010–11 47
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