✨ Financial Statements Notes
27 NOVEMBER NEW ZEALAND GAZETTE 4555
TRANS POWER NEW ZEALAND LIMITED GROUP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 1995
Credit Risk
Financial instruments which potentially subject the Group to credit risk principally consist of bank balances, receivables, and investments.
The Group has a credit policy which is used to manage this exposure to credit risk. As part of this policy, limits on exposures with counterparties in respect to the treasury function of the Group have been set and approved by the Board of Directors. These limits are monitored on a regular basis. Credit evaluations are performed on Trans Power’s customers and it is the Group’s policy to require bond payments where considered appropriate. No bond amounts are held by Trans Power as at 30 June 1995.
The maximum exposures to credit risk as at balance date are:
| 30 June 1995 | 30 June 1994 | |
|---|---|---|
| $000 | $000 | |
| Cash in bank | 7 | 4,735 |
| Trade receivables | 59,591 | 53,089 |
| Other receivables | 2,781 | 32,084 |
| Investments | 2,800 | 1,505 |
The above maximum exposures are net of any recognised provision for losses on these financial instruments.
Concentration of Credit Risk
66 per cent of Cash, Trade, Other receivables and Investments are due from seven customers (in 1994 67 per cent of Cash, Trade receivables, Other receivables and Investments were due from five customers).
All receivables where provision for loss has not been made are considered to be fully recoverable. There are no other significant concentrations of credit risk.
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VUW Te Waharoa —
NZ Gazette 1995, No 139
NZLII —
NZ Gazette 1995, No 139
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Notes to the Financial Statements for Trans Power New Zealand Limited
(continued from previous page)
🏗️ Infrastructure & Public WorksFinancial Statements, Credit Risk, Concentration of Credit Risk, Bank Balances, Receivables, Investments