New Zealand Gazette – 2003 – No. 98

Page 2593

✨ Financial Statements



12 AUGUST
NEW ZEALAND GAZETTE
2593

Buller Electricity Limited
Line Business Financial Statements

  1. 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 83.63% of short term deposits reprice within six months, and 16.37% reprice between six months and one year.

ii) Deposit interest rates range from 5.70% pa – 5.95% pa at balance date 31 March 2003.

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 capital commitments of $1,188,115 at 31 March 2003 to manufacture two (2002Nil) transformers for the Buller Grid Optimization Project. There are also capital commitments involving switchgear and foundation work for the Buller Grid Optimization Project for which purchase orders have been written totalling $628,000.

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 2002.

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

2003 $ 2002 $
Reported Net Surplus after tax 617,767 639,066
Add (Less) Non Cash Items:
Depreciation 357,992 337,210
Add (Less) Movements in Working Capital Items:
Decrease (Increase) in Tax Receivable 55,324 (55,796)
Decrease (Increase) in Receivables 131,803 (73,693)
(Decrease) Increase in Creditors 193,602 296,461
(Decrease) Increase in Tax Payable 41,056 0
Decrease (Increase) in other Current Assets 103,101 1,022
Other business Working Capital Movements included in Operating Cash Flows 0 14,582
1,500,645 1,158,852
Add (Less) Movements in Non-current Items:
Net Loss (Gain) on Disposal of Assets 0 0
0 0
Net Cash Inflows from Operating Activities 1,500,645 1,158,852


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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2003, No 98


Gazette.govt.nz — PDF NZ Gazette 2003, No 98




✨ LLM interpretation of page content

🏗️ Buller Electricity Limited Financial Statements (continued from previous page)

🏗️ Infrastructure & Public Works
Electricity, Financial Statements, Assets, Depreciation, Related Parties, Segmental Reporting, Financial Instruments, Credit Risk, Interest Rate Risk, Commitments, Contingent Liabilities, Cash Flow