✨ Financial Statements Notes
Note 7 : Commitments
As at 31 March 2003, capital expenditure contracted for was $5,161,059 (2002 : $2,576,001).
Note 8 : Contingent Liabilities
There were no contingent liabilities as at 31 March 2003 (2002 : 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: | 2003 | 2002 |
|---|---|---|
| $000 | $000 |
Purchased the following services from DELTA Utility Services Ltd:
| Asset maintenance | 7,261 | 6,851 |
| Network management, operation and other | 3,379 | 3,867 |
| Total | 10,640 | 10,718 |
| Network capital work and development | ||
|---|---|---|
| distribution substations | 1,060 | 883 |
| low voltage reticulation | 2,629 | 1,596 |
| distribution lines and cables | 2,783 | 1,641 |
| transformers | 1,272 | 573 |
| zone substations | 99 | - |
| plant and equipment | 47 | 474 |
| Total | 7,890 | 5,167 |
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, $3,833,520 was owed to DELTA Utility Services Ltd (2002 : $2,293,815). Of this, $1,419,455 was due and payable on 20 April, while $2,414,065 relating to capital work in progress payable at a later date.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2003, No 99
Gazette.govt.nz —
NZ Gazette 2003, No 99
✨ LLM interpretation of page content
💰 Commitments for Capital Expenditure
💰 Finance & RevenueCapital Expenditure, Financial Commitments
💰 Contingent Liabilities
💰 Finance & RevenueContingent Liabilities, Financial Risk
💰 Financial Instruments and Credit Risk
💰 Finance & RevenueFinancial Instruments, Credit Risk, Collateral
💰 Disclosure of Transactions with Related Parties
💰 Finance & RevenueRelated Party Transactions, Financial Disclosure