✨ Financial Statements Notes
NELSON ELECTRICITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year to 31 March 2001
8. Term Loans
| As At 31-Mar-01 $'000 | As At 31-Mar-00 $'000 | |
|---|---|---|
| 1,000 | 1,798 |
Westpac Trust Multi Option Credit Facility
The effective interest rate at 31 March 2001 is 6.90% (2000, 8.70%).
Three year facility, reviewed and able to be extended annually.
The facility limit is $1.8m, no security has been issued in respect of the facility and the agreement presently expires on 26 March 2004.
9. Related Party Transactions
Network Tasman Limited owns 50% of the shares in Nelson Electricity Limited and has in the past year provided operational management and systems review services at nil value.
Marlborough Lines Limited owns 50% of the shares in Nelson Electricity Limited and has in the past year provided management and administrative services to the following value:
| 2001 $ | 2000 $ | |
|---|---|---|
| Marlborough Lines Ltd | 14,400 | 15,000 |
| Payable to Marlborough Lines at 31 March | 7,200 | 15,000 |
Nelson Electricity reimburses Marlborough Lines for salaries paid to staff on their behalf. There were no amounts outstanding for salaries as at 31 March 2001. (2000 Nil)
Network Tasman oncharged to Nelson Electricity Transpower national grid charges during the year totalling $2,506,553. (2000, $2,642,039). As at 31 March 2001 Nelson Electricity owed Network Tasman $302,779 for transmission charges. (2000, $261,975)
Network Tasman contributed $18,227 to costs incurred in interconnecting the networks of both companies. Costs for this work together with GST ($20,505) were outstanding at 31 March.
| 2001 $ | 2000 $ | |
|---|---|---|
| Directors fees paid to Marlborough Lines in respect of Mr K Forrest | 3,000 | 8,000 |
10. Financial Instruments
Credit Risk
Credit risk is the risk that an outside party will not be able to meet its obligations to the company.
The company places its cash deposits with high credit quality financial institutions. Credit risk in respect of accounts receivable is minimised through the company's ability to place bonding requirements on its major electricity retailing customers and the substantial financial nature of these businesses. The company does not have any other significant concentrations of credit risk.
Interest Rate Risk
Interest rate risk is the risk that interest rates will change, increasing or decreasing the cost of borrowing or lending. The company's short term deposits are at fixed interest rates and mature within one year. The company has the opportunity to vary interest rates on its non current borrowings on such terms as it selects. The interest rate applying to the company's current borrowings is disclosed in note 8.
Currency Risk
The company has no present exposure to risks arising from movement in exchange rates. (2000, Nil)
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 114
Gazette.govt.nz —
NZ Gazette 2001, No 114
✨ LLM interpretation of page content
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Nelson Electricity Limited Financial Position Statement
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Term Loans, Related Party Transactions, Credit Risk, Interest Rate Risk, Currency Risk
- K Forrest (Mr), Directors fees paid