✨ Financial Statements
3176 NEW ZEALAND GAZETTE No. 136
CENTRALPOWER LIMITED
Line Business and Electricity Retailing
Notes to the Financial Statements (cont.)
For the Year Ended 31 March 1997
10. Financial Instruments
Credit
In the normal course of business the Company incurs credit risk from trade debtors and financial institutions. There are no significant concentrations of credit risk. The Company has a treasury 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 require any collateral or security to support deposits held with banks in New Zealand and overseas due to the quality of the financial institutions dealt with. With respect to accounts receivable, credit evaluations are performed on customers requiring credit and the Company reserves the right to request a bond.
Concentrations of credit risk are limited due to the large number of customers in the Company’s customer base.
Interest Rate
The Company has long term fixed rate borrowings used to fund ongoing activities. Currently the Company does not hedge the interest rate exposure.
The Company has no off balance sheet financing.
Foreign Exchange
The Company has no foreign exchange exposure.
Fair Values
The carrying values of cash and bank balances, short term deposits, accounts receivable, and sundry creditors are equivalent to their fair value.
The Company has provided the following financial guarantees:
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A guarantee of Energy Brokers New Zealand Limited’s overdraft facility ($200,000) with the National Bank of New Zealand Limited, limited by CentralPower Limited’s shareholding of 21.0%.
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A guarantee of Energy Brokers New Zealand Limited’s credit facility ($40,000,000) with Westpac Banking Corporation, limited by CentralPower Limited’s shareholding of 21.0%.
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A guarantee of the energy purchase contract between Energy Brokers New Zealand Limited and Electricity Market Company Limited to the level of the expected share of energy purchases made on behalf of CentralPower Limited.
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A group banking deed guarantee with the National Bank of New Zealand relating to additional bank accounts operated by the CentralPower Limited Group.
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The CentralPower Employee Share Purchase scheme rules release employees from the obligation to repay the balance of any outstanding interest-free loans in respect of shares purchased under the scheme, should CentralPower Limited be placed into liquidation.
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VUW Te Waharoa —
NZ Gazette 1997, No 135
NZLII —
NZ Gazette 1997, No 135
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CentralPower Limited Financial Statements
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🌾 Primary Industries & ResourcesElectricity, Financial Statements, Line Business, Electricity Retailing, Fixed Assets, Valuations