✨ Financial Statements
Buller Electricity Limited
Line Business Financial Statements
18 JANUARY 2005 NEW ZEALAND GAZETTE, No. 14
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 and Mercury 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 received a loan of $1,240,515 from the Buller Electric Power Trust that is interest bearing (8%), unsecured and repayable on demand.
(iii) Deposit interest rates range from 4.95% pa – 5.41% pa at balance date 31 March 2004.
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 2004. (2003 $1,816,115)
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. (2003 Nil)
10 PRICE THRESHOLD COMPLIANCE
Buller Electricity Limited was in breach of the price path thresholds set by the Commerce Commission in September 2003. Directors believe that any liability arising from this breach will not be material.
11 RECONCILIATION OF NET SURPLUS TO NET CASH FLOW FROM OPERATING ACTIVITIES
| 2004 $ | 2003 $ | |
|---|---|---|
| Reported Net Surplus after tax | 847,256 | 617,767 |
| Add (Less) Non Cash Items: | ||
| Depreciation | 384,159 | 357,992 |
| Vested Assets | (157,485) | |
| Add (Less) Movements in Working Capital Items: | ||
| Decrease (Increase) in Tax Receivable | 0 | 55,324 |
| Decrease (Increase) in Receivables | (64,451) | 131,803 |
| (Decrease) Increase in Creditors | (293,252) | 193,602 |
| (Decrease) Increase in Tax Payable | (35,674) | 41,056 |
| Decrease (Increase) in other Current Assets | 53,063 | (103,101) |
| 733,616 | 1,500,645 | |
| Add (Less) Movements in Non-current Items: | ||
| Net Loss (Gain) on Disposal of Assets | (156,600) | 0 |
Net Cash Inflows from Operating Activities | 577,016 | 1,500,645 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 14
Gazette.govt.nz —
NZ Gazette 2005, No 14
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Buller Electricity Limited Line Business Financial Statements
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🏭 Trade, Customs & IndustryFinancial Statements, Credit Risk, Interest Rate Risk, Commitments, Contingent Liabilities, Price Threshold Compliance, Reconciliation of Net Surplus