3422

NEW ZEALAND GAZETTE

No. 141

Line Other Line Other
Business Business Business Business
1996 1996 1995 1995
$000 $000 $000 $000
Balance remaining

• current 420 - 390 -
• term 487 - 581 -
  907 - 971 -

13. OPERATING LEASE COMMITMENT As at 31 March 1996

Obligations payable after balance date on non-cancellable operating leases are as follows:

Line Other Line Other
Business Business Business Business
1996 1996 1995 1995
$000 $000 $000 $000
Within one year - 59 - 21
One to two years - 59 - 21
Three to five years - 112 - -
Over five years - 37 - -

•       267         -           42

There is a right of renewal on the leases for a further term of three years.

14. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES

Counties Power has commitments for future capital expenditure at 31 March 1996 amounting to $2,700,000 (1995 : Nil). This expenditure relates to the improvement of the Pukekohe area supply and the new Pukekohe substation (Line Business).

15. FINANCIAL INSTRUMENTS

(A) Nature of activities and management policies with respect to financial instruments.

(i) In the normal course of its business the company incurs credit risk from trade debtors and financial institutions.

The company has a credit policy which is used to manage this exposure to credit risk. As part of this policy limits on exposures have been set, and are monitored on a regular basis.

The company does not have any significant concentrations of credit risk. The company does not require any collateral or security to support financial instruments due to the quality of the financial institutions dealt with.

(ii) Provision for uneconomic lines (refer note 12).

(iii) The company does not generally undertake any transactions denominated in foreign currencies apart from the purchase of distribution system equipment and does not hold any long term borrowings.

(iv) The company is party to a contract with ECNZ for hedging in relation to ECNZ electricity spot market prices. The company is contracted to paying (or being credited with) the difference between the hedge price and spot price for nominated kilowatt hours of electricity in designated time bands. The quantity of electricity hedged falls within the amount of electricity expected to be purchased by the company.

There is currently a limited market for hedges. Fair value of the hedges cannot be reasonably determined.

(B) Fair Values

Cash and Liquid Deposits, Short Term Loans, Provision for Uneconomic Lines and Investments.

The carrying value of these items is equivalent to the fair value.

16. RELATED PARTY TRANSACTIONS

There have been no material transactions with related parties during the period.

17. SUBSIDIARY

Cambie Corporation Limited is a shell company controlled by Counties Power Limited. Cambie Corporation has no assets or liabilities and did not trade during the year ended 31 March 1996. Cambie Corporation is in the process of being wound up.

18. ODV VALUATION

The ODV valuation of Counties Power Limited Lines Business Distribution System assets was calculated at $54,450,000 (31.3.95) by Worley Consultants.

COUNTIES POWER LIMITED

DISCLOSURE OF FINANCIAL PERFORMANCE MEASURES AND EFFICIENCY PERFORMANCE MEASURES PURSUANT TO REGULATION 13 AND PART II OF THE FIRST SCHEDULE OF THE ELECTRICITY (INFORMATION DISCLOSURE) REGULATIONS 1994

CERTIFICATION OF PERFORMANCE MEASURES BY AUDITORS

We have examined the information appearing on page 6 being -

a) Financial performance measures specified in clause 1 of Part II of the First Schedule to the Electricity (Information Disclosure) Regulations 1994; and

b) Financial components of the efficiency performance measures specified in clause 2 of Part II of that Schedule, -

and having been prepared by Counties Power Limited for the year ended 31 March 1996 for the purposes of regulation 13 of those regulations.

We certify that, having made all reasonable enquiry, to the best of my knowledge, that information has been prepared in accordance with the Electricity (Information Disclosure) Regulations 1994.

Coopers & Lybrand
Chartered Accountants
Auckland
29 August 1996

CERTIFICATION BY AUDITOR IN RELATION TO ODV VALUATION

We have examined the valuation report prepared by Counties Power Ltd and dated 23 August 1995 which report contains valuations as at 31 March 1995.

We certify that, having made all reasonable enquiry, to the best of our knowledge, the valuations contained in the report have been made in accordance with the ODV Handbook.

Coopers & Lybrand
Chartered Accountants
Auckland
28 August 1995