New Zealand Gazette – 2003 – No. 140

Page 3748

✨ Financial Statements Notes



NELSON ELECTRICITY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year to 31 March 2003

As At As At
31-Mar-03 31-Mar-02
$000 $000
Term Loans
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, $1,271,613). As at 31 March 2003 Nelson Electricity owed Network Tasman $134,547 for transmission charges. (2002, $156,836)

2003 2002
Directors fees paid to Marlborough Lines in respect of Mr K Forrest 8,600 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.

Interest Rate Risk

Interest rate risk is the risk that interest rates will change, increasing or decreasing the cost of borrowing or lending. The company’s short term deposits are at fixed interest rates and mature within one year. The company has the opportunity to vary interest rates on its non current borrowings on such terms as it selects. The interest rate applying to the company’s current borrowings is disclosed in note 9.

Currency Risk

The company has no present exposure to risks arising from movement in exchange rates. (2002, Nil)

12. Commitments and Contingent Liabilities

As at 31 March 2003 the company had no material commitments or contingent liabilities that are not included in these financial statements. (2002, Nil)

13. Events Subsequent to Balance Date

There were no events subsequent to balance date requiring notification in these financial statements.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2003, No 140


Gazette.govt.nz — PDF NZ Gazette 2003, No 140




✨ LLM interpretation of page content

🏭 Notes to the Financial Statements for Nelson Electricity Limited (continued from previous page)

🏭 Trade, Customs & Industry
Accounting Policies, Financial Statements, Depreciation, Taxation, Financial Instruments, Fixed Assets, Operating Leases, Nelson Electricity Limited
  • K Forrest (Mr), Directors fees paid