✨ Financial Statements Notes
2804
NEW ZEALAND GAZETTE
No. 113
NOTE 2. COMMITMENTS
GIS Mapping System
| 1998 | 1997 |
|---|---|
| $13,802 | $15,660 |
Operating Lease Commitments at 31 March
Less than one year
27,000
16,000
Greater than one year but not more than two years
18,000
12,000
Greater than two years but not more than three years
34,000
4,000
$79,000
$32,000
NOTE 3. CONTINGENT LIABILITIES
At 31 March 1998 Electricity Invercargill Limited's share
of a PowerNet Limited contingent liability in respect of
Use of System Agreements is
| 1998 | 1997 |
|---|---|
| 17,000 | 17,000 |
Electricity Invercargill Limited's share of guarantees
given to Contractors by PowerNet Limited for amounts
ranging from $20,000 to $164,000
446,000
452,244
$463,000
$469,244
NOTE 4. FINANCIAL INSTRUMENTS
Credit Risk: Financial instruments which potentially subject the Company to a credit risk consist
principally of bank deposits and receivables. Bank deposits are placed with high credit quality financial
institutions. Concentrations of credit risk with respect to Receivables relate to PowerNet Limited but are
subject to normal terms of trade. Regular monitoring of receivables is undertaken.
Interest Rate Risk: The Company's term liabilities are held by debenture with the Invercargill City
Council under a pre-arranged instrument, interest rate risk is managed by funding over a range of
maturities. Through agreement and renewable loans, interest expense is being minimised.
Foreign Exchange and Currency Risk: The company is not exposed to foreign exchange or currency
risk.
Off-Balance Sheet Financial Instruments: The company does not have any off-balance sheet
financial instruments.
Fair Values: The fair value of the on-balance sheet financial instruments are represented by the
carrying values.
NOTE 5. DIVIDEND
A notional Dividend of $1,500,000 is included to reflect the anticipated position at 31 March, 1998.
As the Company's financial year ends on 30 June no decision will be made on the payment of a dividend
until after the final position is known.
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VUW Te Waharoa —
NZ Gazette 1998, No 113
NZLII —
NZ Gazette 1998, No 113
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Notes to and forming part of the Line Business Financial Statements
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