New Zealand Gazette – 2002 – No. 112

Page 2983

✨ Financial Statements



NELSON ELECTRICITY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year to 31 March 2002

9. Term Loans

As At As At
31-Mar-02 $000 31-Mar-01 $000
Westpac Trust Multi Option Credit Facility 1,000 1,000

The effective interest rate at 31 March 2002 is 6.53% (2001, 8.90%). This is a three year facility reviewed and able to be extended annually. The facility limit is $1.8m and the company has a negative pledge as an alternative to issuing security. The agreement expires on 28 March 2004.

10. Related Party Transactions

Marlborough Lines Limited and Network Tasman each own 50% of the shares in Nelson Electricity Limited and have in the past year provided management and administrative services to the following value:

2002 $ 2001 $
Marlborough Lines Ltd 15,600 14,400
Network Tasman Ltd 9,780 Nil
Payable to Marlborough Lines at 31 March 17,550 7,200
Payable to Network Tasman at 31 March 10,950 Nil

Nelson Electricity reimburses Marlborough Lines for salaries paid to staff on their behalf. There were no amounts outstanding for salaries as at 31 March 2002. (2001 Nil)

Network Tasman oncharged to Nelson Electricity Transpower national grid charges during the year totalling $1,271,618. (2001, $2,503,553). As at 31 March 2002 Nelson Electricity owed Network Tasman $156,838 for transmission charges. (2001, $302,779)

2002 $
Directors fees paid to Marlborough Lines in respect of Mr K Forrest 8,207
2001 $
8,000

There were no related party transactions at nil or nominal value. (In the 2001 year Network Tasman provided operational management at nil value.)

There were no related party debts written off or forgiven during the year. (2001 Nil)

11. Financial Instruments

Credit Risk

Credit risk is the risk that an outside party will not be able to meet its obligations to the company. The company places its cash deposits with high credit quality financial institutions. Credit risk in respect of accounts receivable is minimised through the company’s ability to place bonding requirements on its major electricity retailing customers and the substantial financial nature of these businesses. The company does not have any other significant concentrations of credit risk.

Interest Rate Risk

Interest rate risk is the risk that interest rates will change, increasing or decreasing the cost of borrowing or lending. The company’s short term deposits are at fixed interest rates and mature within one year. The company has the opportunity to vary interest rates on its non current borrowings on such terms as it selects. The interest rate applying to the company’s current borrowings is disclosed in note 9.

Currency Risk

The company has no present exposure to risks arising from movement in exchange rates. (2001, Nil)



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2002, No 112


Gazette.govt.nz — PDF NZ Gazette 2002, No 112




✨ LLM interpretation of page content

🏭 Notes to the Financial Statements for Nelson Electricity Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Term Loans, Related Party Transactions, Financial Instruments, Credit Risk, Interest Rate Risk, Currency Risk
  • K Forrest (Mr), Directors fees paid to Marlborough Lines