✨ Financial Statements Continuation
30 NOVEMBER 2004 NEW ZEALAND GAZETTE, No. 157 3881
9. Contingent Liabilities
There are no contingent liabilities, which would have a material adverse effect on these financial statements (30 June 2003: Nil).
10. Financial Instruments
Interest Rate Risk
There is no interest rate risk as NGC – Transmission Activities does not hold any interest bearing assets or liabilities.
Credit Risk
Financial instruments potentially subject to credit risk are cash deposits and trade debtors. Cash deposits are placed with a small number of trading banks and the amount deposited per bank is limited. The counter parties and the credit limits are approved by the Board of Directors. NGC completes credit evaluations on customers where possible and requires a bond to be paid when customers cannot demonstrate an adequate credit history. There are no significant concentrations of credit risk.
Foreign Currency Risk
Transactions denominated in foreign currencies are undertaken from time to time and resulting from these activities exposures in foreign currencies arise, these exposures are managed by other NGC Group companies.
Fair Values
Cash at bank, other investments, trade creditors and amounts due to subsidiaries - the carrying value of these items is equivalent to their fair value.
11. Related Parties Transactions
NGC Management Limited provides management services in respect of the gas transmission activities. Management fees were paid to NGC Management Limited of $8.9 million (30 June 2003: $5.6 million).
Sales for transmission and maintenance services to Gas Wholesaling Activities of $0.6 million (30 June 2003: $0.6 million), Gas Retailing Activities of $26.4 million (30 June 2003: $28.5 million) and NGC New Zealand Limited of $0.4 million (30 June 2003: $0.2 million).
Purchases of fuel gas, including UFG adjustment, from Gas Retailing Activities of $2.8 million (30 June 2003: $4.4 million).
Purchases of mechanical services from NGC New Zealand Limited were $0.7 million (30 June 2003: $0.5 million).
Transactions with related parties are settled in the ordinary course of business. No amounts have been written off or forgiven during the year ended 30 June 2004 (30 June 2003: Nil).
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2004, No 157
Gazette.govt.nz —
NZ Gazette 2004, No 157
✨ LLM interpretation of page content
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Certification of NGC Gas Transmission Activities Financial Statements
(continued from previous page)
🏭 Trade, Customs & Industry30 June 2004
Financial Statements, Contingent Liabilities, Financial Instruments, Interest Rate Risk, Credit Risk, Foreign Currency Risk, Related Parties Transactions, NGC, Gas Transmission