Financial Statements Notes




2 SEPTEMBER NEW ZEALAND GAZETTE 2589


Power New Zealand Limited


12 CREDIT RISK

Cash and short term deposits are placed with high credit quality financial institutions (A1/A1+) limiting the amount of credit exposure to any one institution, as set forth by the board of directors. While the company may be subject to credit losses up to the contract amounts in the event of non-performance by its counterparties, it does not expect such losses to occur.

13 CAPITAL COMMITMENTS

At balance date, estimated capital expenditure contracted for but not provided was $36,586,000 (1995: $188,000)

14 CONTINGENT LIABILITIES

Guarantees totalling $487,500 have been given to facilitate operations.

Performance Bonds totalling $210,000 (1995: $151,174) have been issued on behalf of Power New Zealand to:

i) Ensure completion of contract works, and

ii) To meet board obligations under the Stock Exchange Listing requirements.

Contingent liabilities exist in relation to on-going disputes which are being defended.

The company has provided a guarantee to Pacific Energy’s liabilities to ECNZ in respect of purchases made by Power New Zealand Limited.

15 EVENTS OCCURRING AFTER BALANCE DATE

The Directors are not aware of any significant event occurring subsequent to balance date which, if known at balance date, would have resulted in a different assessment of the amount attributable to an item in the financial statements.


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🌾 Notes to Financial Statements of Power New Zealand Limited (continued from previous page)

🌾 Primary Industries & Resources
Credit Risk, Capital Commitments, Contingent Liabilities, Guarantees, Performance Bonds, Financial Statements