New Zealand Gazette – 1999 – No. 169

Page 4025

✨ Financial Statements Notes



12 NOVEMBER NEW ZEALAND GAZETTE 4025

                                                                               1999
                                                                               $000

(ii) Operating Lease Commitments:

Lease commitments under non-cancellable operating leases:

Not later than one year 6 52
Later than one year and not later than two years 0 4
Later than two years and not later than five years 0 0
Later than five years 0 0

                                                                           6                    56
  1. CONTINGENT LIABILITIES

(i) As at 31 March 1999 there is a Contingent Liability estimated to be $17,036 in respect of Accrued Termination Gratuities for staff with over 10 years service, but who are not approaching their eligibility for Government Superannuation.

(ii) As at 31 March 1999, the business has a contingent liability of $141,049 (1998 - $154,440) in respect of Subdivision Developers' Rebates on sections which are reticulated but undeveloped. The individual liabilities will be brought to charge as each section is developed and Line Charges become payable.

  1. FINANCIAL INSTRUMENTS

Credit Risk

Financial instruments which potentially subject the business to credit risk consist of bank balances and accounts receivable.

The business performs credit evaluations on all customers requiring credit and seeks commitments, deposits or guarantees prior to commencement of work.

Maximum Exposures to credit risk as at balance date are the amounts stated in the Statement of Financial Position. These maximum exposures are net of any recognised provision for losses on these financial instruments. No collateral is held on the above amounts.

Concentrations of Credit Risk

The company contracts Line Services to a small number of Energy Retailers. Apart from this, the business is not exposed to any concentration of credit risk as at 31 March 1999.

Revenue Risk

Eastland Network Limited (formerly Eastland Energy Limited) sold its Energy Business to Contact Energy Limited. Under the terms of the Use of System Agreements now in place between the company and the electricity retailers, the company invoices the retailers for the Network Line Charges for their customers connected to the network. At present this has created a concentration of risk in the transactions with the incumbent retailer. As the number of retailers using the network increases, and the number of connections supplied by “alternative” retailers also increases, the revenue risk to the business will decrease.

Currency Risk

The business is not exposed to any significant currency risk as at 31 March 1999.



Next Page →

PDF embedding disabled (Crown copyright)

View this page online at:


VUW Te Waharoa — PDF NZ Gazette 1999, No 169


NZLII — PDF NZ Gazette 1999, No 169




✨ LLM interpretation of page content

💰 Notes to Financial Statements of Eastland Network Limited (continued from previous page)

💰 Finance & Revenue
Financial Statements, Operating Lease Commitments, Contingent Liabilities, Financial Instruments, Credit Risk, Revenue Risk, Currency Risk, Eastland Network Limited