✨ Financial Statements
2828 NEW ZEALAND GAZETTE No. 104
12. OPERATING LEASE COMMITMENT
Counties Power Limited Line Business had no operating lease commitments (2001 Nil).
13. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
Counties Power Limited Line Business had commitments for future capital expenditure at 31 March 2002 totalling $117,000 (2001: $761,000).
There were no material contingent liabilities at 31 March 2002.
14. FINANCIAL INSTRUMENTS
(A) Nature of activities and management policies with respect to financial instruments.
(i) The company incurs credit risk from transactions with trade debtors and financial institutions in the normal course of business. At balance date the company had a significant concentration of credit risk relating to the amount receivable from Electricity Retailers. The company has a programme to manage this risk concentration, including adhering to specific credit policy requirements, insurance arrangements and having the contractual ability to require security to be provided by these customers under certain circumstances.
The maximum estimated credit exposure in respect of trade debts is:
- Total asset class - $2.5 million (2001 $2.2 million)
- Debts subject to significant debt concentration risk - $1.7 million (2001 $1.6 million)
The company does not generally require collateral or security to support financial instruments other than as outlined above, due to the quality of the financial institutions dealt with.
(ii) The company does not generally undertake any transactions denominated in foreign currencies apart from the purchase of distribution system equipment and does not hold any long term borrowings.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 104
Gazette.govt.nz —
NZ Gazette 2002, No 104
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Counties Power Limited Statement of Financial Notes
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