✨ Financial Statements
NEW ZEALAND GAZETTE
No. 78
TAUPO ELECTRICITY LIMITED
Notes (cont)
13. CAPITAL RESERVES
| Line Business | Other Businesses | |
|---|---|---|
| 1995 ($) | 1995 ($) | |
| Opening Balance | 7,167 | 19,756 |
| Capital Reserve arose from: | ||
| Transfer from Earnings (sale of assets) | 10,490 | 23,000 |
| Closing Balance | 17,657 | 42,756 |
14. RELATED PARTY TRANSACTION
During the year transactions with the principal shareholder, Taupo District Council, included the sale of electricity to Taupo District Council, lease of buildings from Taupo District Council, payment of rates to Taupo District Council and regular services provided to and by Taupo District Council. All transactions were on standard commercial terms. The value of goods and services sold to Taupo District Council totalled $1,165,998.
Purchases of Goods and Services from Taupo District Council totalled $236,983. At 31 March 1995 included in Accounts Receivable was $187,630 owed by Taupo District Council to Taupo Electricity Limited and $18,444 owed to Taupo District Council by Taupo Electricity Limited was included in Accounts Payable.
15. SALE OF TAUPO ELECTRICITY LIMITED
Early in 1995, the Taupo District Council indicated it proposed to consider the sale of Taupo Electricity Limited and Taupo Generation Limited. The proposal was subject to a public consultation process.
The Board of Directors supports the proposed sale for the following reasons:
- The Taupo District Council is not an appropriate shareholder for TEL and TGL in the new competitive environment;
- The companies need a shareholder who can provide equity and take a greater risk in order that the companies can achieve their goals;
- Investors are currently paying large premiums for controlling equity positions in power companies;
- Delivered energy costs are not likely to be affected by a new owner;
- The companies are performing well and are in a prime condition for sale;
and subject to the sale being:
- For 100% of the company;
- For cash only;
- And at the right price.
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VUW Te Waharoa —
NZ Gazette 1995, No 78
NZLII —
NZ Gazette 1995, No 78
✨ LLM interpretation of page content
🏭
Statement of Accounting Policies for Taupo Electricity Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Capital Reserves, Related Party Transactions, Sale of Company