✨ Financial Statements Notes
29 MAY NEW ZEALAND GAZETTE 1239
TRANSALTA NEW ZEALAND LIMITED Notes to and forming part of the Financial
Statements (Continued)
For the Year Ended 31 March 1999
Note: 11 Financial Instruments
The Company has a Treasury Management Policy to manage the risk associated with treasury financial instruments that is set by the Board of directors and monitored by a committee of the Board.
Credit Risk
Other financial instruments that potentially subject the Company to credit risk principally consist of accounts receivable, bank balances, short-term investments and treasury derivatives.
The Company completes credit evaluations on customers where possible and requires a bond to be paid when customers cannot demonstrate an adequate credit history.
The Company monitors the credit quality of the counterparties to its off-balance sheet financial instruments and does not anticipate non-performance by the counterparties.
Short term investments are made with counter parties with a minimum credit rating of A- long term and A-2 short term from Standards & Poors (or equivalent rating) subject to certain limits set by the Treasury Management Policy. The Company also has a limit on concentration of investments with any one institution or organisation.
Maximum exposures to credit risk included in the statement of financial position are:
| Distribution | Retail | |||
|---|---|---|---|---|
| 31-Mar-99 | 31-Mar-98 | 31-Mar-99 | 31-Mar-98 | |
| $000 | $000 | $000 | $000 | |
| Cash and short term investments | - | 3,373 | (5,925) | (92) |
| Accounts receivable | - | 1,346 | 1,230 | 1,494 |
The above maximum exposures are net of any recognised provision for losses on these financial instruments. The Company is not exposed to any significant concentrations of credit risk.
Interest Rate Risk
The Company is exposed to interest rate risk on its short-term investments and on its borrowings.
The risk with respect to short-term investments is managed by diversification of investments and within exposure limits in accordance with the Treasury Management Policy.
The Company enters into financial instruments to manage the interest rate risk in relation to its borrowings in accordance with the Treasury Management Policy.
The information disclosed in the 1999 Information Disclosure package issued by TransAlta New Zealand Limited has been prepared solely for the purposes of the Gas (Information Disclosure) Regulations 1997.
The information should not be used for any other purpose than that intended under the regulations.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 57
Gazette.govt.nz —
NZ Gazette 2000, No 57
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Notes to Financial Statements for TransAlta New Zealand Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Gas (Information Disclosure) Regulations, TransAlta New Zealand Limited