National Grid 2004 Annual Report Download - page 31

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17. Financial instruments (continued)
Currency and interest rate composition of financial assets
The currency and interest rate composition of the Group’s financial assets are shown in the table below after taking account of currency and interest
rate swaps.
Fixed rate assets
Weighted
average
Weighted period
Non-interest average for which
Total bearing Fixed rate interest rate rate is fixed
At 31 March 2004 £m £m £m % Years
Sterling 72 – 72 3.7 0
US dollars 2 – 2 1.1 0
Other currencies 1 – 1 2.0 0
Cash and investments 75 – 75 – –
Other financial assets (sterling) 2,544 2,544 – – –
2,619 2,544 75 – –
At 31 March 2003
Sterling 3 – 3 4.0 0
US dollars 2 – 2 1.1 0
Other currencies 2 – 2 2.5 0
Cash and investments 7 – 7 – –
Other financial assets (sterling) 2,241 2,241 – – –
2,248 2,241 7 – –
Other financial assets comprises amounts owed by Transco’s immediate parent company, Transco Holdings plc.
The maturity profile of the Group’s financial liabilities and assets are shown in the tables below after taking into account currency and interest rate
swaps.
2004 2003
Maturity of financial liabilities at 31 March £m £m
In one year or less 1,305 1,093
More than one year, but not more than two years 260 647
More than two years, but not more than three years 887 203
More than three years, but not more than four years 293 892
More than four years, but not more than five years 457 240
More than five years 1,742 2,116
4,944 5,191
2004 2003
Maturity of financial assets at 31 March £m £m
In one year or less 75 7
No maturity date 2,544 2,241
2,619 2,248
Financial assets with no maturity date comprise amounts owed by Transco’s immediate parent company, Transco Holdings plc.
Fair values of financial instruments at 31 March 2004 2003
Book value Fair value Book value Fair value
£m £m £m £m
Financial instruments held or issued to finance the Group’s operations:
Short-term borrowings (1,305) (1,267) (1,089) (1,093)
Long-term borrowings (3,578) (4,079) (4,174) (4,677)
Financial assets 2,619 2,619 2,248 2,248
Financial instruments held to manage the interest rate and currency profile:
Interest rate swaps –14 – 62
Forward foreign currency contracts and cross currency swaps (58) 90 92 313
Market values, where available, have been used to determine fair values. Where market values are not available, fair values have been calculated
by discounting future cash flows at prevailing interest rates.
Notes to the Accounts_continued
Annual Report and Accounts 2003/04_Transco plc 29