✨ Financial Statements
Vector Limited
Electricity Lines Business
Notes to the Financial Statements
For the year ended 31 March 2005
23. FINANCIAL INSTRUMENTS (CONTINUED)
Fair values (continued)
Private placement senior notes
The fair value of US$ privately placed senior notes is based on face value plus accruals converted at the exchange rate prevailing at balance date.
The carrying amount for the US$ privately placed senior notes includes the principal and interest accrued, converted at the contract rates.
Derivative instruments
The fair value of interest rate swaps, cross currency swaps, forward rate agreements, and other derivative instruments is estimated based on the quoted market prices for these instruments.
The carrying amount includes the fair value adjustments (net of amortisation) on derivative transactions acquired and interest accrued.
LIQUIDITY RISK
Liquidity risk is the risk that there may be difficulty in raising funds at short notice to meet financial commitments as they fall due. In order to reduce the exposure to liquidity risk, the Vector group has access to undrawn committed lines of credit.
24. CONTINGENT LIABILITIES
The directors are aware of claims against entities within the Vector group and, where appropriate, have recognised provisions for these within the financial statements. No other material contingencies requiring disclosure have been identified (2004: nil).
25. TRANSACTIONS WITH RELATED PARTIES
During the year Vector Limited had the following related party transactions. At balance date, the Auckland Energy Consumer Trust (AECT) is the sole shareholder of Vector Limited.
| 2005 | 2004 | |
|---|---|---|
| $000 | $000 | |
| Payment of dividends to AECT | 49,100 | 32,200 |
| Electricity line services charged to UnitedNetworks Limited | - | 386 |
No related party debts have been written-off or forgiven during the year.
27. EVENTS AFTER BALANCE DATE
On 13 April 2004, Vector Limited announced its intention to proceed with an Initial Public Offering. A Prospectus was registered on 27 June 2005 and Vector Limited listed on the New Zealand Stock Exchange on 15 August 2005.
As at 31 March 2005 Vector Limited had pre-IPO equity securities which in limited circumstances would be convertible into equity shares in the Company. These were fully repaid on 15 August 2005.
No adjustments are required to these financial statements in respect of these events.
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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
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Vector Limited's Financial Position
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🏭 Trade, Customs & IndustryFinancial Statements, Interest Rate Swaps, Cross Currency Swaps, Foreign Exchange Risk, Hedging