✨ Financial Statements
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 $20,000 ($94,951 in 2000).
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 $8,650,000 (2000 $23,000,000), having a fair value of $8,707,641 (2000 $23,047,012). In addition, as at 31 March 2001, the face value of the instruments the Group held were as following:
| Interest Rate Options: | Rate | Term | Commencement Date | 2001 | 2000 |
|---|---|---|---|---|---|
| Swap | 7.60% | Three Years | 7 November, 1997 | - | 3,500 |
| Swap | 7.16% | 42 Months | 20 December, 2000 | 4,000 | - |
| Swap | 7.27% | 66 Months | 20 December, 2000 | 4,000 | - |
| Swap | 7.08% | Five Years | 3 April, 1998 | 13,000 | 13,000 |
The mark to market value of the interest rate swap agreements as at 31 March 2001 showed a loss of $561,681 (2000 - benefit of $127,840).
(ii) Credit
In the normal course of its business the Company incurs credit risk from trade debtors and financial institutions. 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.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 87
Gazette.govt.nz —
NZ Gazette 2001, No 87
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Financial Statements for Horizon Energy Distribution Limited
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🏗️ Infrastructure & Public WorksElectricity, Financial Statements, Capital Commitments, Financial Instruments, Interest Rates, Credit Risk, Fair Values, Segmental Reporting, Horizon Energy Distribution Limited