✨ Financial Statements
2430
NEW ZEALAND GAZETTE
No. 97
HORIZON ENERGY DISTRIBUTION LIMITED
Financial Statements for the purposes of the Electricity (Information Disclosure) Regulations 1999 and the Electricity (Information Disclosure) Amendment Regulations 2000
NOTES TO THE FINANCIAL STATEMENTS
17 CAPITAL COMMITMENTS
The Group has commitments for future capital expenditure amounting to $94,951 ($77,472 in 1999).
18 FINANCIAL INSTRUMENTS
(a) The nature of activities and management policies with respect to financial instruments is described as follows:
(i) Interest Rates
The Group generally uses fixed rate loans or swaps to manage interest rate risk. The total level of fixed rate funding at 31 March was $23,000,000 (1999 $25,500,000), having a fair value of $23,047,012 (1999 $24,867,409). In addition, as at 31 March 2000, the face value of the instruments the Group held were as following:
Interest Rate Options:
| Rate | Term | Commencement Date | 2000 | 1999 |
|---|---|---|---|---|
| Swap | 7.60% | Three Years | 7 November, 1997 | 3,500 |
| Swap | 8.34% | Two Years | 24 March, 1998 | - |
| Swap | 7.08% | Five Years | 3 April, 1998 | 13,000 |
The mark to market value of the interest rate swap agreements as at 31 March 2000 showed a benefit of $127,840 (1999 - loss of $721,000).
(ii) Credit
In the normal course of its business the Company incurs credit risk from trade debtors and financial institutions. There are no significant concentrations of credit risk. The Company has a credit policy which is used to manage this exposure to credit risk. As part of this policy, limits on exposures have been set and are monitored on a regular basis. The bank risk is reduced by spreading short term investments over high credit quality financial institutions.
(b) Fair Values
Financial instruments in the current section of the balance sheet, with the exception of the current portion of term loans, are shown at values equivalent to their fair values. The fair value of term loans is disclosed in section (a) (i) above. Investments are shown at cost which is not significantly different from their fair values.
19 SEGMENTAL
The Company operates predominantly in one industry, the distribution of electricity. Its operations are carried out solely in New Zealand and are therefore within one geographical segment for reporting purposes.
20 COMPANY NAME CHANGE
On 1 April 1999, the company changed its name from Bay of Plenty Electricity Limited to Horizon Energy Distribution Limited.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 97
Gazette.govt.nz —
NZ Gazette 2000, No 97
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Financial Statements for Horizon Energy Distribution Limited
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🏭 Trade, Customs & IndustryElectricity, Financial Performance, Capital Commitments, Financial Instruments, Interest Rates, Credit Risk, Segmental Reporting, Company Name Change