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Notes to the Consolidated Financial Statements
30 June 2013
78 BRADKEN LIMITED ANNUAL REPORT 2013
Notes to the consolidated financial statements
30 June 2013
(continued)
27 Contingencies
(a) Contingent Liabilities
The parent entity and Group had contingent liabilities at 30 June 2013 and 2012 in respect of:
Guarantees and letters of credit
2013
2012
$'000
$'000
Bank guarantees for contract performance
76,915
177,634
Letters of credit
762
1,213
Total estimated contingent liabilities
77,677
178,847
Claims
No material losses are anticipated in respect of any of the above contingent liabilities.
Austin Engineering
There are no contingent liabilities that are known to Bradken that relate to Austin Engineering.
(b) Pala litigation
28 Commitments
(a) Capital commitments
Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows:
2013
2012
$'000
$'000
Land & buildings
Payable:
Within one year
66
15,430
66
15,430
Property, plant and equipment
Payable:
Within one year
26,532
25,947
Later than one year but not later than five years
3,266
1,043
29,798
26,990
(b) Lease commitments
Within one year
11,276
7,826
Later than one year but not later than five years
29,556
14,853
Later than five years
18,303
2,338
59,135
25,017
Representing:
Non cancellable operating leases
57,797
23,687
Future finance charges on finance leases
1,338
1,330
59,135
25,017
Information about guarantees given by entities within the Group, including the parent entity are described in note 31. No
deficiencies of assets exist in any of these companies.
Commitments in relation to leases contracted for at the reporting
date but not recognised as liabilities, payable:
The Bradken Group has been involved from time to time in various claims and lawsuits incidental to the ordinary course of
business, including damages and commercial disputes relating to its products and services. The Group has disclaimed liability
and will defend any action flowing from specific claims. It is not practical to estimate the potential effect of these claims but legal
advice obtained indicates that any liability that may arise in the unlikely event these claims are successful will not be significant.
Also refer to Note 27 (b) below.
Bradken has appealed the adverse decision with regards to the Norcast / Pala case that was handed down by the Federal Court
in April 2013. As a result of this decision an amount of $24,594,000 being the judgment sum, was placed in escrow with the
Federal Court pending the outcome of the appeal. Bradken does not control the escrow account and in the event that Bradken
is successful on appeal, the escrow sum, together with an estimated amount covering Bradken’s legal and other associated
costs, which have both been taken as an expense in the year ended 30 June 2013, would be expected to be shown as income in
the financial statements for the year ended 30 June 2014.
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Bradken Limited