✨ Financial Statements Notes
2690 NEW ZEALAND GAZETTE No. 104
Notes to and Forming Part of the Financial Statements
For the Year Ended 31 March 1996
22 CONTINGENT LIABILITIES AND COMMITMENTS
There are no material contingent liabilities as at balance date.
There are no capital commitments as at balance date. However in the ordinary course of business the company has entered into a gas supply contract which commits it to an annual expenditure for a minimum of 7 years of approximately $800,000 per annum.
23 TRANSACTIONS WITH RELATED PARTIES
Powerco paid legal fees to Horsley Christie, a firm in which Mr D H Brown, a director, has an interest, and to Rudd Watts & Stone, a firm in which Mr J S Auld, a director has an interest. The fees were charged on normal terms and conditions and account for 52% and 2% respectively of total group legal fees.
During the year Powerco paid financial consultancy fees to Doyle Gilberd & Company, a firm in which Mr R I Gilberd, a director has an interest. The fees were charged on normal terms and conditions and constitute 3% of consultancy costs.
All directors are energy customers of Powerco under normal terms and conditions of supply.
Powerco is also deemed to have a related party relationship with New Plymouth District Council, being a 45% shareholder in Powerco. Powerco paid $407198 rent to the New Plymouth District Council at market rate. Powerco also supplies energy to the New Plymouth District Council under normal terms and conditions, the value of sales being 0.9% of total sales. Rates have been paid to New Plymouth District Council to the value of $60,534.
Powerco also has related party transactions with it’s associate companies, Energy Brokers New Zealand Limited, and Powerco Appliances Limited.
The Chief Executive of Powerco Limited is a director of Energy Brokers New Zealand Limited.
27.4% of electricity purchases by Powerco were purchased from Energy Brokers New Zealand Limited. At balance date the amount owing to Energy Brokers New Zealand Limited by Powerco was $1,484,630. Powerco supplies metering assemblies to Energy Brokers for which it charges a market rate.
Powerco Appliances Limited pays rent at market rate to Powerco, a total rent paid for the period under review amounted to $162,000. Powerco also acted as the financing company for Powerco Appliance Limited’s hire purchase sales. The value of hire purchases financed by Powerco as at 31 March 1996 was $2.02 million.
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VUW Te Waharoa —
NZ Gazette 1996, No 104
NZLII —
NZ Gazette 1996, No 104
✨ LLM interpretation of page content
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Notes to and Forming Part of the Financial Statements for the Year Ended 31 March 1996
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Contingent Liabilities, Related Party Transactions, Legal Fees, Consultancy Fees, Energy Brokers
- D H Brown, Director with interest in Horsley Christie
- J S Auld, Director with interest in Rudd Watts & Stone
- R I Gilberd, Director with interest in Doyle Gilberd & Company