✨ Financial Statements
3004 NEW ZEALAND GAZETTE No. 119
EnergyDirect Corporation Limited
ELECTRICITY BUSINESS
Note 9: Financial Instruments
Credit Risk
Financial instruments which potentially subject the Corporation to credit risk principally consist of bank balances and accounts receivable.
The Corporation performs credit evaluations on customers where possible and generally does not require deposits to be paid when customers demonstrate adequate credit history with previous electricity and gas suppliers.
Maximum exposures to credit risk for EnergyDirect’s electricity business as at balance dates were:
| 31 March Consolidated $000 | 31 March Lines $000 | 31 March Energy $000 | |
|---|---|---|---|
| Receivables and prepayments 1996 | 21,375 | 8,596 | 12,779 |
| Receivables and prepayments 1995 | 23,662 | 8,123 | 15,539 |
The above maximum exposures are net of any recognised provision.
Concentrations of credit risk
The Corporation is not exposed to any concentrations of credit risk.
Fair values
There were no differences between the fair value and carrying amounts of financial instruments at 31 March 1996 (1995 nil).
Note 10: Commitments and Contingencies
At balance date, there were no commitments contracted for and approved by the Corporation and allocated to the Electricity Business (1995 $325,550).
There are no contingent liabilities at 31 March 1996 (1995 nil).
Note 11: Related Party Transactions
The Corporation purchased the bulk of its electricity requirements from Pacific Energy Limited, an associate company. Total purchases during the year amounted to $49,313,000 (1995 $49,740,000). The remainder of $461,000 (1995 $218,000) was purchased from the landfill joint venture company. As at 31 March 1996 $4,218,000 was owing to Pacific Energy for energy purchases (1995 $4,264,787).
In addition, the Corporation paid a management fee of $106,000 (1995 $286,000) to Pacific Energy Limited.
The electricity purchase costs and management fee are allocated to the electricity energy business activities of EnergyDirect Corporation.
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VUW Te Waharoa —
NZ Gazette 1996, No 119
NZLII —
NZ Gazette 1996, No 119
✨ LLM interpretation of page content
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Statement of Financial Position of EnergyDirect Corporation Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Investments, Joint Ventures, Pacific Energy Limited, Landfill Gas, Electricity Generation