✨ Financial Statements Notes
2718 NEW ZEALAND GAZETTE No. 110
CENTRALPOWER GROUP
Line Business and Electricity Retailing
Notes to and forming part of the Financial Statements (cont.)
For the Year Ended 31 March 1998
- Financial Instruments
Credit
In the normal course of business the Group incurs credit risk from trade debtors and financial institutions. There are no significant concentrations of credit risk. The Group 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 Group 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 Group reserves the right to request a bond.
Concentrations of credit risk are limited due to the large number of customers in the Group's customer base.
Interest Rate
The Group has long term fixed rate borrowings used to fund ongoing activities. Currently the Group does not hedge the interest rate exposure.
The Group has no off balance sheet financing.
Foreign Exchange
The Group has entered into foreign exchange contracts at balance date in order to hedge Deutschmark (DEM) exposure for the purchase of wind farm development equipment from Vestas Danish Wind Technology A/S by Tararua Wind Power Limited.
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 Group established a short-term advances facility ($5,000,000) with The National Bank of New Zealand Limited. This facility was undrawn at balance date.
The Group established an overdraft facility with The National Bank of New Zealand Limited ($100,000). The facility was undrawn at balance date.
The Group established a letter of credit facility ($37,000,000) with The Bank of New Zealand in relation to the purchase of wind farm equipment from Vestas Danish Wind Technology A/S, in relation to the development of a wind farm in the Tararua Ranges.
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VUW Te Waharoa —
NZ Gazette 1998, No 110
NZLII —
NZ Gazette 1998, No 110
✨ LLM interpretation of page content
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Financial Statements for CentralPower Group
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🏭 Trade, Customs & IndustryElectricity, Financial Statements, Line Business, Retailing, CentralPower Group, Financial Instruments, Credit Risk, Interest Rate, Foreign Exchange, Fair Values, Bank Facilities