✨ Financial Statements
FINANCIAL INSTRUMENTS
Electricity Ashburton Limited estimates that in respect of the reported Financial Instruments being cash, bank deposits, account receivables, investments and industry loan reported in the financial statement-
(i) Fair value is equivalent to carrying an amount as stated in the statement of financial position.
(ii) Concentration of credit risk is minimised in respect of-
(a) Receivables: The company has exposure of credit risk by having six line customers. Credit risk with each of these customers is managed by a use of system agreement. The company performs credit evaluations where considered necessary.
(b) Bank deposits, by a specific policy of spreading investments between registered trading banks, Ashburton Permanent Building Society and the Loan & Building Society.
(c) Cash, by being held in minimal quantities.
(iii) Industry loan of $7,325 is now fully paid.
The company has a $500,000 overdraft facility with Westpac Trust, which is secured by a negative pledge over assets. No loans have been uplifted during the financial year under report. During the year the entered into an agreement with Westpac Trust and Bank of New Zealand for loan facilities of $3 million each for 2001/2 capital works.
(iv) During the year a secured interest free loan of $300,000 for a term of three years was placed with the Ashburton Aquatic Park Charitable Trust
COMMITMENTS
Estimated capital expenditure contracted for at balance date is $1,384,875 (2000: $20,000).
CONTINGENT LIABILITIES
As at 31 March 2001 there were no material contingent liabilities that are not included in these financial statements (2000: Nil).
SEGMENT INFORMATION
The predominant activity of Electricity Ashburton Limited is the distribution of electricity. All operations are conducted in New Zealand.
RELATED PARTIES
Electricity Ashburton Limited has a contracting division that provides services to the Lines Business. The services provided are for the maintenance of the network and capital construction of System Assets. The services are provided in an ongoing capacity. The standard charge for these services are:
Labour $22 to $29 per hour
External Purchase Charged at cost
Transport (light truck) $7.20 per hour
Transport (heavy truck) $18 to $27 per hour
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 118
Gazette.govt.nz —
NZ Gazette 2001, No 118
✨ LLM interpretation of page content
💰 Electricity Ashburton Limited Financial Instruments
💰 Finance & RevenueFinancial Instruments, Electricity Ashburton Limited, Cash, Bank Deposits, Account Receivables, Investments, Industry Loan, Overdraft Facility, Loan Facilities, Secured Interest-Free Loan, Capital Expenditure, Contingent Liabilities, Segment Information, Related Parties