✨ Financial Statements
4018 NEW ZEALAND GAZETTE, No. 163 14 DECEMBER 2004
10. Receivables and prepayments
| | 2004
$000 | 2003
$000 |
|----------------|-----------|-----------|
| Trade debtors | 1,815 | 1,786 |
| GST refund due | 448 | 411 |
| Prepayments | 12 | 26 |
| | 2,275 | 2,223 |
| Less provision for doubtful debts | (10) | (10) |
| | $2,265| $2,213|
11. Financial instruments
Credit risk
Financial assets which potentially subject the company to credit risk principally consist of bank balances and accounts receivable.
The company manages its principle credit risk by having Use of System Agreements with its major customers to maintain a minimum credit rating of BBB or better.
Maximum exposures to credit risk as at balance date are:
| | 2004
$000 | 2003
$000 |
|----------------|-----------|-----------|
| Bank balances | 863 | 1,229 |
| Receivables | 2,265 | 2,213 |
The above maximum exposures are net of any recognised provision for losses on these financial assets. Bank balances and investments in short term deposits are made with registered banks with satisfactory credit ratings.
Concentrations of credit risk
The company has exposures to concentrations of credit risk by having five line customers. This is managed as mentioned above through the Use of System Agreements.
Currency risk
The company has no material exposure to foreign exchange risk.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2004, No 163
Gazette.govt.nz —
NZ Gazette 2004, No 163
✨ LLM interpretation of page content
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Electra Limited - Financial Instruments
(continued from previous page)
💰 Finance & Revenue14 December 2004
Financial Instruments, Credit Risk, Currency Risk, Bank Balances, Receivables