✨ Financial Statements
15 SEPTEMBER NEW ZEALAND GAZETTE
TRANSALTA NEW ZEALAND LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS (continued)
AS AT 31 MARCH 1997
12 FINANCIAL INSTRUMENTS (continued)
The above maximum exposures are net of any recognised provision for losses on these financial instruments.
The Company is not exposed to any significant concentrations of credit risk.
Interest Rate Risk The Company is exposed to interest rate risk on investments in bank deposits and government stock. This risk is managed within exposure limits set. The Company is not exposed to interest rate risk on capital notes and bonds as the interest rates are fixed for the term of the obligations.
Wholesale Electricity Market Risk The bases upon which electricity is purchased in the wholesale market and on-sold to customers results in the Company having exposure to electricity market price risk. The Company has set maximum limits on the exposure to risk which the Company may have at any time based on forecasts of electricity sales. The Company enters into hedge contracts to manage its exposure to market price risk.
Currency Risk The Company has no significant exposure to currency risk at 31 March 1997.
Fair Values There are no material differences between the fair value and carrying amounts of financial instruments at 31 March 1997 with the exception of the following:
| Fair Value/Contract Amount | Fair Value | Carrying Amount | |
|---|---|---|---|
| $'000 | $'000 | $'000 | $'000 |
| Line | Energy | Line | |
| Contracts for Differences | see below (1) | see below (2) | 607 |
| Capital Notes Due 1 October 2001 | 96,091 | 1,452 | 92,447 |
| Bonds Due 1 October 2003 | 93,284 | 1,410 | 91,232 |
| Bonds Due 1 October 2006 | 93,284 | 1,410 | 91,232 |
(1) The contract amount on contracts for differences has not been disclosed as the information is considered commercially sensitive.
(2) The fair value on the contract for differences has not been disclosed as it is not practical to do so in the absence of a liquid energy trading market.
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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
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🌾 Primary Industries & ResourcesElectricity, Financial Statements, Financial Instruments, Credit Risk, Interest Rate Risk, Wholesale Electricity Market Risk, Currency Risk, Fair Values