New Zealand Gazette – 2002 – No. 93

Page 2510

✨ Financial Statements and Performance Measures



Buller Electricity Limited

Line Business Financial Statements

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, 100% are due from TrustPower Limited, Meridian Energy Limited and Genesis Power 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 81% of short term deposits reprice within six months, and 19% reprice between six months and one year.

ii) Deposit interest rates range from 4.74% pa – 5.94% 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. (2001Nil)

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 2001.

2002 2001
$ $

10 RECONCILIATION OF NET SURPLUS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Reported Net Surplus after tax | 639,066 | 1,025,698 |
Add (Less) Non Cash Items: | |
Depreciation | 337,210 | 342,931 |
Add (Less) Movements in Working Capital Items: |
Decrease (Increase) in Tax Receivable | (55,796) | 60,434 |
Decrease (Increase) in Receivables | (73,693) | (69,342)|
(Decrease) Increase in Creditors | 296,461 | (157,516)|
Decrease (Increase) in other Current Assets| 1,022 | (2,621) |
Other business Working Capital Movements included in Operating Cash Flows | 14,582 | 254,768 |
| |
| 1,158,852| 85,723 |
Add (Less) Movements in Non-current Items: |
Net Loss (Gain) on Disposal of Assets | 0 | 65,959 |
|
Net Cash Inflows from Operating Activities| 1,158,852| 1,520,311|



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2002, No 93


Gazette.govt.nz — PDF NZ Gazette 2002, No 93




✨ LLM interpretation of page content

🏭 Certification of Financial Statements and Performance Measures by Buller Electricity Limited (continued from previous page)

🏭 Trade, Customs & Industry
30 July 2002
Financial Statements, Performance Measures, Electricity, Certification, Buller Electricity Limited, Accounting Policies