New Zealand Gazette – 1997 – No. 121

Page 2875

✨ Financial Statements Notes



9 SEPTEMBER NEW ZEALAND GAZETTE 2875

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS (Continued)

  1. Financial Instruments:
    Financial Instruments which potentially subject the company to credit risk principally consist of cash bank balances, short term deposit, and accounts receivable. Northpower does not generally require collateral from customers.

Northpower places its cash and short term deposits with high credit quality financial institutions (A1 or better), and limits the amount of credit exposure to any one institution in accordance with company policy.

The following methods and assumptions were used to estimate the fair value of each class of financial instrument: bank balances, short term deposits and receivables.

The carrying amount is the fair value for each of these classes of financial instrument.

  1. Segment Information:
    Northpower Ltd operates predominantly in the electricity supply industry within the Northland area.

Northpower is also involved in generation and contracting, but neither activity is considered significant.

  1. Contingent Liabilities:
    There are no contingent liabilities.

  2. Commitments:

Line Business Energy Business
1997 1996 1997 1996
$ $ $ $
Estimated capital commitments
contracted for at balance date 440,000 541,000 440,070 -

The commitments relate to new computer system.

  1. Related Parties:
    The Northpower Electric Power Trust is the sole shareholder. Other than dividend payment, there are no related transactions.

  2. Term Receivables:
    The Term Receivables are repaid in annual amounts expiring in 2003. Interest of 10.1% is charged on the annual balance owing.



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✨ LLM interpretation of page content

🏭 Notes to and Forming Part of the Financial Statements for Northpower Ltd. (continued from previous page)

🏭 Trade, Customs & Industry
13 August 1997
Financial Statements, Notes, Financial Instruments, Segment Information, Contingent Liabilities, Commitments, Related Parties, Term Receivables