✨ Financial Statements for Powerco Limited
2720
NEW ZEALAND GAZETTE
No. 91
POWERCO LIMITED - ENERGY BUSINESS
8 ENERGY BROKERS
Energy Brokers New Zealand Limited was incorporated under the Companies Act 1955 as a Private Company (limited by shares) on 23 June 1993. It was formed to undertake energy trading activities. Powerco holds 60,000 $1 Ordinary shares, being 20% of the total shares on issue. At 31 March 1995 Energy Brokers have accumulated losses of $260,758.
9 FIXED ASSETS
| 1995 $ | |
|---|---|
| Generating Plant | 25,953 |
| Cost | |
| Accumulated depreciation | 12,716 |
| Book value | 13,237 |
10 FINANCIAL INSTRUMENTS
a Credit Risk
Financial instruments which potentially subject the company to credit risk principally consist of bank deposits, debtors and investments.
Generally the company does not require collateral from customers.
Maximum exposures to credit risk is the amount stated in the financial statements and are net of any recognised provision for losses in these financial instruments.
The company invests funds with financial institutions with satisfactory credit ratings.
b Concentrations of Credit Risk
The company is not exposed to any concentrations of credit risk.
c Credit Facilities
The company has no arranged bank overdraft facility.
d Fair Values
There was no difference between the fair value and the carrying amounts of cash and bank, bank deposits and debtors. The fair values for other investments are as disclosed in note 8.
11 POWERCO APPLIANCES LIMITED
Powerco sold off as a going concern its Appliance Sales and Servicing operation on 31 March 1995. Settlement of the sale price, net of Powerco's shareholding in Powerco Appliances Limited of $525,000, took place in April 1995.
The net value of the transaction to Powerco is shown as follows:
| $ | |
|---|---|
| Trading Stock | 1,492,800 |
| Office Furniture and Equipment | 80,000 |
| Motor Vehicles | 148,723 |
| Goodwill | 200,000 |
| Sale value | 1,921,523 |
| Powerco's 50% shareholding in Powerco Appliances Limited (Note 7) | (525,000) |
| NET SETTLEMENT (Note 6) | 1,396,523 |
12 TRANSACTIONS WITH RELATED PARTIES
There were no transactions with related parties for the energy business.
13 CONTINGENT LIABILITIES
a Powerco Appliances Limited
Powerco Limited has entered into agreement with two providers of financial facilities to Powerco Appliances Limited, guaranteeing compliance with the terms of those facilities. In each case, the guarantee is limited to one half of the liability of Powerco Appliances Limited to the financial providers who hold security over the assets of Powerco Appliances Limited. It is expected that the maximum contingent liability of Powerco Limited under the two guarantees will not exceed $600,000 in total.
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VUW Te Waharoa —
NZ Gazette 1995, No 91
NZLII —
NZ Gazette 1995, No 91
✨ LLM interpretation of page content
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Financial Statements for Powerco Limited
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🏭 Trade, Customs & IndustryFinancial statements, Energy brokers, Fixed assets, Financial instruments, Appliance sales, Related parties, Contingent liabilities