✨ Financial Statements
BULLER ELECTRICITY LIMITED – LINE BUSINESS
7 Financial Instruments
(a) Credit Risk
i) In the normal course of business the company incurs credit risks being cash, bank deposits and debtors transactions with electricity retailers and financial institutions.
ii) The company has a credit evaluation policy and requires a bond or a guarantee from customers.
iii) The company has concentrations of credit risk in accounts receivable balances. Of total electricity line charges receivable, 96% are due from TrustPower Limited and Meridian Energy Limited.
iv) The company has a policy that minimises its credit risk to financial institutions by limiting the amount of cash and short term investments placed with any one financial institution at any one time.
(b) Interest Rate Risk
i) The exposure to interest rate risk arises from the level of short term deposits held. At balance date 36% of short term deposits reprice within six months, and 64% reprice between six months and one year.
ii) Deposit interest rates range from 6.2% pa - 7.25% pa at balance date.
c) Fair Values
The directors consider that the carrying amount of financial instruments in the statement of financial position is equal to their fair value.
8 Commitments
There are no capital commitments at balance date. (2000 Nil)
9 Contingent Liabilities
There is a contingent liability for discrepancies that may arise on the reconciliation of energy transported versus energy charged by the various energy retailers. The potential or maximum liability is not able to be estimated. The same contingent liability existed in 2000.
10 RECONCILIATION OF NET SURPLUS TO NET CASH FLOW FROM OPERATING ACTIVITIES
| 2001 $ | 2000 $ | |
|---|---|---|
| Reported Net Surplus after Tax | 1,025,698 | 235,055 |
| Add (Less) Non Cash Items: | ||
| Depreciation | 342,931 | 531,716 |
| Add (Less) Movements in Working | ||
| Capital Items: | ||
| Decrease (Increase) in Tax | ||
| Receivable/Payable | 60,434 | 172,777 |
| Decrease (Increase) in Receivables | (69,342) | 13,452 |
| (Decrease) Increase in Creditors | (157,516) | 148,195 |
| Decrease (Increase) in other | ||
| Current Assets | (2,621) | (2,086) |
| Estimated other business Working | ||
| Capital Movements included in | ||
| Operating Cash Flows | 254,768 | (39,353) |
| 85,723 | 292,985 | |
| Add (Less) Movements in Non-current Items: | ||
| Add (Less) Items Classified as | ||
| Investing Activities | 65,959 | 32,293 |
| Net Loss (Gain) on Disposal of | ||
| Assets | 65,959 | 32,293 |
| Net Cash Inflows from Operating | ||
| Activities | 1,520,311 | 1,092,049 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 99
Gazette.govt.nz —
NZ Gazette 2001, No 99
✨ LLM interpretation of page content
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Buller Electricity Limited - Financial Statements
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🏭 Trade, Customs & IndustryFinancial Statements, Credit Risk, Interest Rate Risk, Contingent Liabilities, Net Surplus, Cash Flow