✨ Financial Statements and Notes
HAWKE'S BAY NETWORK LIMITED - LINES BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For The Year Ended 31 March 2001
16 FINANCIAL INSTRUMENTS
a) Credit Risk
Financial instruments which potentially subject the company to credit risk principally consist of bank balances and accounts receivables. No collateral is held on these amounts which relate primarily to Energy Traders. Maximum exposure to credit risk is the amount stated in the financial statements and is net of any recognised provision for losses on these financial instruments.
b) Concentration of Credit Risk
The company is exposed to a concentration of credit risk in that at certain times during each month Contact Energy may account for up to 65% of the accounts receivable balance outstanding.
c) Fair Values
The methods and assumptions used are that carrying amounts in the financial statements reflect the estimated fair value of the financial instruments including receivables, bank and investments, accounts payable and term debt.
e) Currency Risk
The Company enters into forward exchange contracts for any transactions conducted in currency other than the New Zealand dollar to eliminate the effects of any currency fluctuations.
17 TRANSACTIONS WITH RELATED PARTIES
For the first 7 Months of the 2000 financial year the company purchased maintenance and network construction services from it's own in-house service providers at commercial rates. From 01/11/99 all the inspections service, planned maintenance and major capital works has been contracted out.
| 1/04/1999 to | 30/10/1999 | |
|---|---|---|
| 2001 $000 | $000 | |
| Construction of subtransmission assets | - | - |
| Construction of zone substations | - | 1,037 |
| Construction of distribution lines and cables | - | 1,019 |
| Construction of medium voltage switchgear | - | - |
| Construction of distribution transformers | - | 340 |
| Construction of distribution substations | - | - |
| Construction of low voltage lines and cables | - | 395 |
| Construction of other fixed assets | - | 2 |
| Maintenance of Assets | - | 2,031 |
| Consumer connections and disconnections | - | - |
The establishment Plan of the Company provided for the formation of the Hawkes Bay Power Consumers Trust (the object of which is to hold the shares of the Company on behalf of the consumers in their capacity as owners) and the issue of a $1,000,000 debt security from the Company to the Trust. The debt security is repayable on 1 June, 2003 and carries an interest rate of 6% per pa.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 85
Gazette.govt.nz —
NZ Gazette 2001, No 85
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Hawke's Bay Network Limited Financial Statements Disclosure
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🏗️ Infrastructure & Public WorksFinancial Statements, Electricity, Information Disclosure, Hawke's Bay Network Limited