✨ Financial Report Continuation
NEW ZEALAND GAZETTE
No. 105
Horowhenua Energy Limited Line and Energy Businesses - Annual Report 1996
Page 7
5 RECEIVABLES
and repayments
| LINE | ENERGY | |||
|---|---|---|---|---|
| 1996 | 1995 | 1996 | 1995 | |
| $000 | $000 | $000 | $000 | |
| Trade debtors | 1,184 | 1,919 | 2,596 | 1,845 |
| Inter-Company receivables | 26 | 15 | 0 | 0 |
| Prepayments | 52 | 10 | 0 | 0 |
| Total | 1,262 | 1,944 | 2,596 | 1,845 |
less Provision for doubtful debts | 100 | 100 | 100 | 100 |
| | 1,162 | 1,844 | 2,496 | 1,745 |
6 FINANCIAL
instruments
CREDIT RISK
Financial instruments which potentially subject the Company to credit risk principally consist of bank balances and accounts receivable.
The Company performs credit evaluations on all customers requiring credit. Where a satisfactory credit reference is obtained the Company generally does not require collateral.
Maximum exposures to credit risk as at balance date are:
| LINE | ENERGY | |
|---|---|---|
| 1996 | 1996 | |
| $000 | $000 | |
| Bank Balances | 3,730 | 0 |
| Receivables | 1,162 | 2,496 |
The above maximum exposures are net of any recognised provision for losses on these financial instruments.
Investments in short term deposits are made with registered banks with satisfactory credit ratings.
CREDIT FACILITIES
The Company has total banking facilities of $7,200,000 (1995: $3,200,000).
FAIR VALUES
There were no differences between the fair value and carrying amounts of financial instruments as at 31 March 1996.
7 CONTINGENT
liabilities
At any point in time the Company will be investigating complaints or queries about various aspects of the service it provides to customers. In a number of these action may be taken against the Company. At 31 March 1995 there was legal action taken against the former Horowhenua Electric Power Board which remains unresolved. The Directors have been advised that the Company has good defence against any action that may be taken against it and that no provision for loss is required in the financial statements.
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VUW Te Waharoa —
NZ Gazette 1996, No 105
NZLII —
NZ Gazette 1996, No 105
✨ LLM interpretation of page content
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Horowhenua Energy Limited Line and Energy Businesses - Annual Report 1996
(continued from previous page)
💰 Finance & Revenue26 August 1996
Financial statements, audit, certification, Horowhenua Energy Limited