New Zealand Gazette – 2003 – No. 125

Page 3360

✨ Financial Statements Notes



CENTRALINES LIMITED - LINES BUSINESS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDING 31 MARCH 2003

2003 2002
$'000 $'000

Note 14: Related Party Information

CHB Consumers Power Trust owns all of the issued capital of Centralines Limited.

Centralines terminated its management contract with Scanpower, 30 September 2002, and entered into an agreement with Urition Networks Limited for managerial services from 1 October 2002.

Directors' transactions with the company were made under normal terms and conditions of supply and sale available to members of staff. No discounts were given during the year.

As at 31 March 2003, the total outstanding was $2,934 (2002 - $null).

During the year Mr H Donald, who is a director provided services totalling $1,875 (2002 $701) and Mr Luoni who is also a director provided services through his company totalling $22,196.

2003 2002
$ $
J Aitken 1,059 0
G Smith 0 0
M Luoni 0 1,161
H Donald 1,875 0

Contestable contracting services in asset construction and maintenance were provided by Centralines contracting division at cost, including overheads, and as detailed, respectively, here and in Note 16.12b below.

2003 2002
Construction Maintenance Construction
$'000 $'000 $'000
Subtransmission assets 0 10 0
Zone substations 0 24 0
Distribution lines and cables 792 343 0
Medium voltage switchgear 0 19 0
Distribution transformers 0 21 0
Distribution substations 10 20 0
Low voltage lines and cables 48 107 0
Other system fixed assets 0 0 0

Note 15: Financial Instruments

Centralines has no off balance sheet financing (other than those disclosed in these notes), nor any foreign exchange exposure.

The fair value of financial instruments is the carrying amount disclosed in the Statement of Financial Position.

Centralines has an approved overdraft facility with the ANZ Bank for $100,000 at an interest rate of 11.80%.

The interest rates on the company's deposits are presented in note 6.

Credit risk

Financial instruments which potentially subject the Company to credit risk principally consist of bank balances and accounts receivables. No collateral is held on these amounts.

Maximum exposure to credit risk is the amount stated in the Financial Statements and is net of any recognised provision for losses on these financial instruments.

Concentration of credit risk

The Company has exposure risk to one electricity retailer that may account for 60% of accounts receivables. To minimise this risk, the company has contractual requirements contained within the use of system agreements operating with this party. A bond may be required where deemed necessary. At balance date no such bond was held.

Note 18: Significant Events after Balance Date

The Commerce Commission has published (6 June 2003) in the New Zealand gazette the final determinations for the future regulation of electricity lines businesses within New Zealand (see note 12).

A winter task force has been established to co-ordinate nationwide measures to conserve electricity as a direct result of reduced supply levels at hydro generation stations. If these measures extend to lengthy water heating controlling and rolling blackouts, the Company will see a reduction in network charges.

The company is not aware of any other post balance date events which would have a significant effect on the business activities of Centralines.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2003, No 125


Gazette.govt.nz — PDF NZ Gazette 2003, No 125




✨ LLM interpretation of page content

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

🏭 Trade, Customs & Industry
Financial Statements, Related Party Transactions, Directors, Contracts, Financial Instruments, Credit Risk, Post-Balance Events
  • H Donald (Mr), Director providing services
  • M Luoni, Director providing services through company
  • J Aitken, Director with outstanding transactions
  • G Smith, Director with no outstanding transactions