✨ Financial Statements
3020 NEW ZEALAND GAZETTE No. 128
TRANSALTA NEW ZEALAND LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS (continued)
AS AT 31 MARCH 1997
11 RELATED PARTY TRANSACTIONS
The immediate parent company of TransAlta New Zealand Limited is Trans New Zealand Energy Limited and the ultimate controlling party is TransAlta Energy Corporation.
During the period, the Company had the following transactions with related parties:
Purchases of electricity totalling $20,964,000 (1996: $49,313,000) from Pacific Energy Limited (Associate Company). The balance owing at 31 March 1997 was $4,833,000 (1996: $4,218,000).
At 31 March 1997 amounts accrued to TransAlta Energy Corporation for services provided with respect to the installation and implementation of a new electricity network automated asset information and management system totalled $302,000 (1996: nil).
The Group paid subvention payments to Trans New Zealand Energy Limited ($851,663) and that company’s parent Trans New Zealand Limited ($2,807,707). These were pre-existing obligations of the antecedent company Capital Power Limited at 1 October 1996.
At 31 March 1997 interest on capital notes and bonds accrued and owing to Trans New Zealand Energy Limited totalled $9,559,000 (1996: nil).
No related party debts have been written off or forgiven during the year.
12 FINANCIAL INSTRUMENTS
Credit Risk Financial instruments which potentially subject the company to credit risk principally consist of bank balances, accounts receivable and electricity hedge contracts.
The Company performs credit evaluations on customers where possible and requires deposits to be paid when customers demonstrate inadequate credit history.
Investments are made with financial institutions and other organisations with a minimum credit rating of A long term and A-1 short term from Standards & Poors (or equivalent rating). The company also has a limit on concentration of investments with any one institution.
Maximum exposures to credit risk as at 31 March 1997 were:
| LINE BUSINESS | ENERGY BUSINESS | |
|---|---|---|
| 31-Mar-97 | 31-Mar-96 | |
| $000 | $000 | |
| Cash and Bank | 35 | 192 |
| Accounts Receivable | 17,638 | 14,489 |
| Investments in Bank | 20,240 | 5,025 |
| Deposits and Government Stock | ||
| Loans and Advances | 171 | - |
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VUW Te Waharoa —
NZ Gazette 1997, No 128
NZLII —
NZ Gazette 1997, No 128
✨ LLM interpretation of page content
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Financial Statements of TransAlta New Zealand Limited
(continued from previous page)
🌾 Primary Industries & ResourcesElectricity, Financial Statements, Related Party Transactions, Financial Instruments, Credit Risk