New Zealand Gazette – 2003 – No. 3

Page 96

✨ Financial Notes and Disclosures



96

NEW ZEALAND GAZETTE

No. 3

Note 7: Commitments

As 31 March 2002, capital expenditure contracted for was $2,576,001 (2001 : $2,531,000).

Note 8: Contingent Liabilities

There were no contingent liabilities as at 31 March 2002 (2001 : nil).

Note 9: Financial Instruments

Financial instruments which potentially subject the Lines Business to credit risk principally consist of cash and accounts receivable.

Credit Risk

Contracts have been entered into with various counter-parties having such credit ratings and in accordance with dollar limits as set by the board of directors.

Collateral

The Lines Business does not generally require collateral or other security to support service contracts. While the Lines Business may be subject to credit losses up to the notional value of the services or goods supplied in the event of non-performance by counter-parties, it does not expect such losses to occur.

Concentration of Credit Risk

Financial instruments which potentially subject the Lines Business to concentrations of credit risk principally consist of cash and accounts receivable.

The Lines Business places its cash and short-term investments with high credit quality financial institutions and sovereign bodies and limits the amount of credit exposure to any one financial institution.

The Lines Business has several large customers for which no collateral is required. These debtors are subject to normal on-going credit control procedures.

Note 10: Disclosure of Information Relating to Transactions Between Persons in a Prescribed Business Relationship and Related Parties (Regulation 9)

The Line Business:

Purchased the following services from DELTA Utility Services Ltd:

2002 2001
Asset maintenance 6,851 6,924
Network management, operation and other 3,867 3,206
Total 10,718 10,130

Network capital work and development

2002 2001
distribution substations 883 675
low voltage reticulation 1,596 1,404
distribution lines and cables 1,641 1,508
transformers 573 193
zone substations - -
plant and equipment 474 131
Total 5,167 3,910

Network operation and maintenance is charged in accordance with a Fixed Term Contract.

All capital work is subject to open tender, established market rates, or competitive pricing.

At balance date, $2,293,815 was owed to DELTA Utility Services Ltd (2001 : $2,519,203). Of this, $1,519,826 was due and payable on 20 April, while $773,989 relating to capital work in progress was payable at a later date.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2003, No 3


Gazette.govt.nz — PDF NZ Gazette 2003, No 3




✨ LLM interpretation of page content

💰 Financial Statements and Equity Movements (continued from previous page)

💰 Finance & Revenue
10 January 2003
Capital Expenditure, Contingent Liabilities, Financial Instruments, Credit Risk, Related Party Transactions