New Zealand Gazette – 2005 – No. 137

Page 3326

✨ Financial Statements



NELSON ELECTRICITY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year to 31 March 2005

Note 8 Continued

The most recent Optimised Deprival Valuation for the Nelson Electricity Ltd network system assets was dated 31 March 2004 and the total value recorded was $19,393m.

The current rating valuation for improvements is $138,000 (2004 $130,000)

9. Term Loans

As At 31-Mar-05 $000 As At 31-Mar-04 $000
Westpac Trust Multi Option Credit Facility 1,100 1,000

The effective interest rate at 31 March 2005 is 7.59% (2004, 6.04%). This is a three year revolving facility reviewed and able to be extended annually. The facility limit is $1.8m and the company has granted a negative pledge as an alternative to issuing security. The agreement expires on 31 October 2007.

10. Related Party Transactions

Marlborough Lines Limited and Network Tasman each own 50% of the shares in Nelson Electricity Limited and have in the past year provided management and administrative services to the following value:

2005 $ 2004 $
Marlborough Lines Ltd 167,496 167,705
Network Tasman Ltd 132,504 132,502

Payable to Marlborough Lines at 31 March: 13,958 (2004, 13,958).
Payable to Network Tasman at 31 March: 11,042 (2004, 11,042).

Nelson Electricity reimburses Marlborough Lines for salaries paid to staff on their behalf. Salaries totalling $35,809 remained payable to Marlborough Lines as at 31 March 2005. (2004 $29,110)

Network Tasman oncharged to Nelson Electricity Transpower national grid charges during the year totalling $1,797,012 (net). (2004, $1,759,300). As at 31 March 2005 Nelson Electricity owed Network Tasman $149,738 (net) for transmission charges. (2004, $134,673)

Network Tasman credited Nelson Electricity with loss rental rebates (from Transpower) totalling $126,084 (net). As at 31 March 2005 Network Tasman owed Nelson Electricity $12,846 (net) for loss rental rebates. (2004, $5,968)

During the year Nelson Electricity paid dividends totalling $1,100,000 to each of Marlborough Lines and Network Tasman. (2004, $950,000 each)

Directors fees paid to Marlborough Lines in respect of Mr K Forrest 2005 $
9,340
Directors fees paid to Marlborough Lines in respect of Mr K Forrest 2004 $
8,600

There were no related party transactions at nil or nominal value.

There were no related party debts written off or forgiven during the year. (2004 Nil)

11. Financial Instruments

Credit Risk

Credit risk is the risk that an outside party will not be able to meet its obligations to the company. The company places its cash deposits with high credit quality financial institutions. Credit risk in respect of accounts receivable is minimised through the company's ability to place bonding requirements on its major electricity retailing customers and the substantial financial nature of these businesses. The company does not have any other significant concentrations of credit risk.



Next Page →



Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2005, No 137


Gazette.govt.nz — PDF NZ Gazette 2005, No 137




✨ LLM interpretation of page content

🏭 Nelson Electricity Limited Notes to the Financial Statements (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Deprival Valuation, Term Loans, Related Party Transactions, Financial Instruments