✨ Financial Statements
4290 NEW ZEALAND GAZETTE No. 170
8. Financial Instruments
Interest Rate Risk - not subject to this risk as there are no interest bearing assets or liabilities.
Credit Risk - potentially subject to credit risk are cash deposits and trade debtors, cash deposits are placed with a small number of trading banks and the amount deposited per bank is limited. The Board of Directors approves the counter parties and the credit limits. NGC completes credit evaluations on customers where possible and requires a bond to be paid when customers cannot demonstrate an adequate credit history. There are no significant concentrations of credit risk.
Foreign Currency Risk - transactions denominated in foreign currencies are undertaken from time to time and resulting from these activities exposures in foreign currencies arise. These exposures are managed by other NGC Group companies.
Fair Values - Cash at bank, other investments, trade creditors and amounts due to subsidiaries - the carrying value of these items is equivalent to their fair value.
9. Capital Commitments
Amounts committed but not recorded in these financial statements total $nil (2001, $nil).
10. Abnormal Item
| $Thousands | ||
|---|---|---|
| 2002 | 2001 | |
| Receipt of Gas Commitment Fee from the amendment of a wholesale gas contract | 12,000 | - |
11. Contingent Liabilities
NGC has transferred 25 petajoules of prepaid Maui gas to Methanex, which must be uplifted by 2006. The liability will arise if Methanex calls for prepaid gas within the terms of its own Maui contracts and the Crown does not deliver on that call. In these circumstances NGC must make its best endeavors to deliver sufficient gas to meet its remaining obligations (10.1 PJ at 30 June 2002) or refund part of the monies to Methanex.
There are no other material contingent liabilities or legal proceedings outstanding.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 170
Gazette.govt.nz —
NZ Gazette 2002, No 170
✨ LLM interpretation of page content
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NGC – Gas Wholesaling Activities Notes to the Financial Statements
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Gas Wholesaling, Revenue, Expenses, Assets, Liabilities, Taxation, Interest Rate Risk, Credit Risk, Foreign Currency Risk, Fair Values, Capital Commitments, Abnormal Items, Contingent Liabilities