New Zealand Gazette – 2005 – No. 122

Page 2951

✨ Financial Statements



10 AUGUST 2005 NEW ZEALAND GAZETTE, No. 122 2951

Buller Electricity Limited

Line Business Financial Statements

7 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, Genesis Power Limited, Mercury Energy Limited and Contact Energy 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) All term loans are unsecured and subject to negative pledge undertakings. The term loans are not hedged and are at the floating 90 day bill rate. The company currently has $5million rolling loan facilities.

ii) The company has a loan of $1,740,515 that is interest bearing (8%), unsecured and repayable on demand.

iii) Deposit interest rates range from 5.8% pa – 7.05% pa at balance date 31 March 2005.

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 no capital commitments at 31 March 2005. (2004 $Nil)

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. (2004 Nil)

10 PRICE THRESHOLD COMPLIANCE

Buller Electricity Limited was in breach of the price path thresholds set by the Commerce Commission in September 2004. Directors believe that any liability arising from this breach will not be material. The company was not in breach of the price and quality thresholds at March 2005.

                        2005        2004
                        $       $

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

Reported Net Surplus after tax 498,581 847,256
Add (Less) Non Cash Items:
Depreciation 796,311 384,159
Vested Assets (146,716) (157,485)

Add (Less) Movements in Working Capital Items:
Decrease (Increase) in Tax Receivable (305,474) 0
Decrease (Increase) in Receivables (4,360) (64,451)
(Decrease) Increase in Creditors (22,116) 293,252
(Decrease) Increase in Tax Payable 0 (35,674)
Decrease (Increase) in other Current Assets 53,063
Decrease (Increase) in Interdivisional Balance (261,609) 0
554,617 733,616

Add (Less) Movements in Non-current Items:
Net Loss (Gain) on Disposal of Assets 0 (156,600)

Net Cash Inflows from Operating Activities 554,617 577,016



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2005, No 122


Gazette.govt.nz — PDF NZ Gazette 2005, No 122




✨ LLM interpretation of page content

🏭 Buller Electricity Limited Line Business Financial Statements (continued from previous page)

🏭 Trade, Customs & Industry
Financial Instruments, Credit Risk, Interest Rate Risk, Fair Values, Commitments, Contingent Liabilities, Price Threshold Compliance, Net Surplus, Cash Flow, Operating Activities