New Zealand Gazette – 2001 – No. 111

Page 2878

✨ Financial Statements Notes



2878 NEW ZEALAND GAZETTE No. 111

Note 7 : Commitments

As 31 March 2001, capital expenditure contracted for was $2,531,000 (2000 : $2,035,000).

Note 8 : Contingent Liabilities

There were no contingent liabilities as at 31 March 2001 (2000 nil).

Note 9 : Financial Instruments

Financial instruments which potentially subject the Lines Business to credit risk principally consist of cash and accounts receivable.

Credit Risk

Contracts have been entered into with various counter-parties having such credit ratings and in accordance with dollar limits as set forth by the board of directors.

Collateral

The Lines Business does not generally require collateral or other security to support service contracts. While the Lines Business may be subject to credit losses up to the notional value of the services or goods supplied in the event of non-performance by counter-parties, it does not expect such losses to occur.

Concentration of Credit Risk

Financial instruments which potentially subject the Lines Business to concentrations of credit risk principally consist of cash and accounts receivable.

The Lines Business places its cash and short-term investments with high credit quality financial institutions and sovereign bodies and limits the amount of credit exposure to any one financial institution.

The Lines Business has several large customers for which no collateral is required. These debtors are subject to normal on-going credit control procedures.

Note 10 : Disclosure of Information Relating to Transactions Between Persons in a Prescribed Business Relationship and Related Parties (Regulation 9)

The Line Business: 2001 $000 2000 $000

Purchased the following services from DELTA Utility Services Ltd:
Asset Maintenance 6,924 6,959
Network Management, Operation and Other 3,206 3,132
Total 10,130 10,091

Network Capital Work and Development:
Distribution Substations 675 725
Low Voltage Reticulation 1,404 1,197
Distribution Lines and Cables 1,508 1,242
Transformers 93 1,210
Zone Substations - 39
Plant and Equipment 131 -
Total 3,910 4,413

Network operation and maintenance is charged in accordance with a Fixed Term Contract.

All capital work is subject to open tender, established market rates, or competitive pricing.

At Balance Date $2,519,203 was owed to DELTA Utility Services Ltd (2000 : $2,029,880). Of this, $1,271,286 was due and payable on 20 April, while $1,247,917 relating to capital work in progress was paid at a later date.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2001, No 111


Gazette.govt.nz — PDF NZ Gazette 2001, No 111




✨ LLM interpretation of page content

💰 Notes to the Financial Statements (continued from previous page)

💰 Finance & Revenue
Capital Expenditure, Contingent Liabilities, Financial Instruments, Credit Risk, Concentration of Credit Risk, Related Parties, Transactions