New Zealand Gazette – 2003 – No. 107

Page 2820

✨ Financial Statements



2820 NEW ZEALAND GAZETTE No. 107

NELSON ELECTRICITY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year to 31 March 2003

Note 8 Continued

The most recent Optimised Deprival Valuation undertaken in respect of the Nelson Electricity Ltd network system assets was as at 31 March 2001 and the total value recorded was $14,166m.

Land assets were revalued as at 31 July 2001 in accord with valuations provided by Telfer Young (Nelson) Ltd. A number of small parcels of land were bought into the company’s books for the first time at net current value totalling $92,800. These funds were credited to the Statement of Financial Performance.

The directors consider that the above values represent fair value for land and buildings.

The current rating valuation for buildings is $138,500 (2002 $140,000)

9. Term Loans

As at 31-Mar-03 $'000 As at 31-Mar-02 $'000
Westpac Trust Multi Option Credit Facility 1,000 1,000

The effective interest rate at 31 March 2003 is 6.36% (2002, 6.53%). This is a three year revolving facility reviewed and able to be extended annually. The facility limit is $1.8m and the company has granted a negative pledge as an alternative to issuing security. The agreement expires on 26 March 2005.

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:

2003 $ 2002 $
Marlborough Lines Ltd 167,705 15,600
Network Tasman Ltd 132,502 9,760
Payable to Marlborough Lines at 31 March Nil 17,550
Payable to Network Tasman at 31 March 11,042 10,980

Nelson Electricity reimburses Marlborough Lines for salaries paid to staff on their behalf. There were no amounts outstanding for salaries as at 31 March 2003. (2002 Nil)

Network Tasman oncharged to Nelson Electricity Transpower national grid charges during the year totalling $1,797,674. (2002, $1,271,818). As at 31 March 2003 Nelson Electricity owed Network Tasman $134,547 for transmission charges. (2002, $156,836)

Directors fees paid to Marlborough Lines in respect of Mr K Forrest 2003 $
8,800
2002 $
8,207

There were no related party transactions at nil or nominal value.
There were no related party debts written off or forgiven during the year. (2002 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.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2003, No 107


Gazette.govt.nz — PDF NZ Gazette 2003, No 107




✨ LLM interpretation of page content

🏭 Nelson Electricity Limited Financial Performance (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Share Capital, Retained Earnings, Reserves, Fixed Assets, Nelson Electricity Limited