✨ Financial Statements
2756
NEW ZEALAND GAZETTE
No. 110
Notes to the Financial Statements
For the year ended 31 March 2000
| 2000 | 1999 | |
|---|---|---|
| $000 | $000 |
17. FINANCIAL INSTRUMENTS (CONTINUED)
Concentrations of credit risk
Bank balances
11,248
2,816
Term deposits
22,000
33,248
2,816
The company is not exposed to any other concentrations of credit risk.
Interest rate risk
Interest rates on debt issued in the current year are generally fixed for periods of between one and three months at rates from 4.1% to 7.8% (1999: 4.1% to 7.8%). The interest rates are based on the BkBM rate plus a margin.
Interest rate swaps and forward rate agreements are used to manage the proportion of fixed rate debt to total debt. Interest rate swaps and forward rate agreements open as at 31 March 2000 have a principal of $209.8 million (1999:$209.8 million) with a cash benefit of $27.4 million (1999:$7.8 million). The company pays a weighted average interest rate on open interest rate swaps and forward rate agreements of 7.2% (1999:7.3%).
The company values interest rate swaps by determining the net present value of future cash flows using current interest rates. The company continuously monitors the credit quality of the major international institutions that are counterparties to its off balance sheet financial instruments and does not anticipate non-performance by any of the counterparties.
18. COMMITMENTS
Capital expenditure commitments
Estimated capital expenditure contracted for at balance date but not provided for:
CBD reinforcement tunnel
36,500
65,600
Other commitments
8,239
9,472
44,739
75,072
Operating lease commitments
Within one year
2,792
14
One to two years
1,284
14
Two to five years
3,765
42
Beyond five years
1,256
19
9,097
89
19. CONTINGENT LIABILITIES
Central business district (CBD) power outage
Following the CBD power outages VECTOR has been threatened with claims for compensation. As at the date of these financial statements no legal claims resulting from the power outages have been filed against the company. Adequate provision has been made in these financial statements for further costs relating to restoring the CBD network and for compensation offered by VECTOR to its CBD customers affected by the outages.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 110
Gazette.govt.nz —
NZ Gazette 2000, No 110
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Notes to the Financial Statements
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🏭 Trade, Customs & IndustryFinancial Statements, Fixed Assets, Receivables, Financial Instruments, Credit Risk, Interest Rate Risk, Capital Expenditure, Operating Lease, Contingent Liabilities