New Zealand Gazette – 2002 – No. 119

Page 3200

✨ Financial Statements Notes



3200

NEW ZEALAND GAZETTE

No. 119

  2002 2001
  $'000 $'000

Note 7. Share Capital

Share Capital (issued and fully paid)

  • 25,000,000 ordinary shares | 25,000 | 25,000
  • 300,000 7.25% Redeemable Preference Shares | 300 | 300
  • 5,000,000 Preference Shares | 5,000 |
    Capital Reserve | 102 | 102
    Transition Reserve | 418 | 418
    Asset Revaluation Reserve | 19,137 | 18,702
    Retained Earnings | 388 | (3,653)
      | 50,345 | 40,869

Note 8. Financial Instruments

Credit Risk

Financial instruments which potentially subject the Company to credit risk principally
consist of bank accounts, accounts receivable and investments.

The Company places its cash with high quality financial institutions and limits the amount of exposure
to any one financial institution. There is a high concentration of credit risk to Trustpower.

The maximum exposure to credit risk at balance date is the fair value of the instruments as
stated in the Statement of Financial Position.

Fair Values

For all financial instruments other than the interest rate swaps and the shareholding in
International Panel and Lumber (West Coast) Limited the fair value is equivalent to the
carrying amount as stated in the Statement of Financial Position. Borrowings are planned
to be run to maturity. The fair value of the interest rate swaps at 31 March 2002
is $132,874 (2001 $239,470).

The fair value of the shares in International Panel and Lumber (West Coast) Limited is $63,654
(2001 $55,815). This represents the value of the 30,000 shares based on the value of net assets
as at 31 January 2002.

Currency Risk

The Company has minimal currency risk given that financial instruments are principally transacted in
New Zealand dollars. Forward exchange contracts may be employed by the Company to manage
exposure to currency fluctuations.

Interest Rate Risk

Interest rate risk is low as borrowings have fixed interest rates except for the Short Term
Advance Facility for $4,000,000 (2001 $8,600,000) for which interest rates are hedged. The
contract amount of interest rates swaps held at 31 March 2002 is $10,600,000
(2001 $10,600,000).



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2002, No 119


Gazette.govt.nz — PDF NZ Gazette 2002, No 119




✨ LLM interpretation of page content

🏭 Westpower Limited Financial Statements Notes (continued from previous page)

🏭 Trade, Customs & Industry
31 March 2002
Financial Statements, Revenue, Expenses, Taxation, Westpower Limited