✨ Financial Statements Continuation
30 AUGUST 2005 NEW ZEALAND GAZETTE, No. 147 3621
Vector Limited
Electricity Lines Business
Notes to the Financial Statements
For the year ended 31 March 2005
23. FINANCIAL INSTRUMENTS (CONTINUED)
CREDIT RISK
In the normal course of its business, the Vector group is exposed to credit risk from energy retailers, financial institutions and trade debtors and therefore has credit policies which are used to manage the exposure to these credit risks.
As part of these policies, the Vector group can only have exposure to financial institutions having at least a credit rating of A- long term from Standard & Poor’s (or equivalent rating). In addition, limits on exposures to financial institutions have been set by the board of directors and are monitored on a regular basis. In this respect, the Vector group minimises its credit risk by spreading such exposures across a range of institutions. There is no anticipated non-performance by any of these financial institutions.
The Vector group has some concentration of credit exposures with a few large energy retailers and large electricity customers. To minimise this risk credit evaluations are performed on all energy retailers and large electricity customers and requires that a bond or other form of security is obtained where deemed necessary.
The Vector group places its cash deposits with a small number of banking institutions and limits the amount deposited. The maximum exposure to credit risk is represented by the carrying value of each financial asset.
| Carrying Amount 2005 $000 | Carrying Amount 2004 $000 | |
|---|---|---|
| Cash and bank overdraft | 1,239 | - |
| Trade receivables | 50,580 | 50,407 |
| Interest rate swaps | - | - |
| Cross currency swaps | 2,054 | 3,159 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 147
Gazette.govt.nz —
NZ Gazette 2005, No 147
✨ LLM interpretation of page content
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Vector Limited's Financial Position
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Interest Rate Swaps, Cross Currency Swaps, Foreign Exchange Risk, Hedging