✨ Financial Statements and Notes
2728 NEW ZEALAND GAZETTE No. 109
HAWKE'S BAY NETWORK LIMITED - LINES BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the Year Ending 31 March 2000
16 FINANCIAL INSTRUMENTS
a) Credit Risk
Financial Instruments which potentially subject the Company to credit risk principally consist of bank balances and accounts receivables. No collateral is held on these amounts which relate primarily to Energy Traders. Maximum exposure to credit risk is the amount stated in the Financial Statements and is net of any recognised provision for losses on these financial instruments.
b) Concentration of Credit Risk
The Company is exposed to a concentration of credit risk in that at certain times during each month Contact Energy may account for up to 65% of the accounts receivable balance outstanding.
c) Fair Values
The methods and assumptions used are that carrying amounts in the financial statements reflect the estimated fair value of the financial instruments including receivables, bank and investments, accounts payable and term debt.
17 TRANSACTIONS WITH RELATED PARTIES
For the first seven months of the year the Company purchased maintenance and network construction services from its own in-house service providers at commercial rates. From 1 November 1999 all the inspections service, planned maintenance and major capital works has been contracted out.
There were no outstanding balances owing to this disestablished internal provider as at 31 March 2000.
2000 1999
$000 $000Services provided to the Company during the period 01/04/99 to 31/10/99 included:
Construction of subtransmission assets - -
Construction of zone substations 1,037 116
Construction of distribution lines and cables 1,019 1,731
Construction of medium voltage switchgear - -
Construction of distribution transformers 340 454
Construction of distribution substations - -
Construction of low voltage lines and cables 395 -
Construction of other fixed assets 2 1
Maintenance of Assets 2,031 3,549
Consumer connections and disconnections - -
Note: The 1999 Comparison for Maintenance of Assets has been corrected as a result of an Incorrect note disclosure in last years Gazette.
The Establishment Plan of the Company provided for the formation of the Hawke's Bay Power Consumers’ Trust (the object of which is to hold the shares of the Company on behalf of the consumers in their capacity as owners) and the issue of a $1,000,000 debt security from the Company to the Trust. The debt security is repayable on 1 June, 2003 and carries an interest rate of 6% per annum.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 109
Gazette.govt.nz —
NZ Gazette 2000, No 109
✨ LLM interpretation of page content
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Notes to and forming part of the financial statements for Hawke's Bay Network Limited
(continued from previous page)
💰 Finance & RevenueFinancial statements, Credit Risk, Concentration of Credit Risk, Fair Values, Transactions with Related Parties, Construction Services, Maintenance of Assets, Hawke's Bay Network Limited