✨ Financial Statements Notes
28 NOVEMBER 2005
NEW ZEALAND GAZETTE, No. 197
4959
Vector Limited & Subsidiaries
Gas Distribution Activities
Notes to the Financial Statements
For the year ended 30 June 2005
19. 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. The Vector group has credit policies which are used to manage the exposure to 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. The Vector group does not anticipate 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 energy customers. To minimise this risk the Vector group perform credit evaluations on all energy retailers and large energy customers and requires a bond or other form of security where deemed necessary.
The Vector group places its cash deposits with a small number of banking institutions and limits the amount deposited with each institution.
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 | 6 | 195 |
| Receivables | 3,569 | 958 |
| Interest rate swaps | - | - |
| Cross currency swaps | 1,097 | 1,470 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 197
Gazette.govt.nz —
NZ Gazette 2005, No 197
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Vector Limited & Subsidiaries Gas Distribution Activities Financial Position
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🏭 Trade, Customs & IndustryFinancial Statements, Gas Distribution, Vector Limited, Credit Risk, Financial Instruments, Energy Retailers, Financial Institutions, Trade Debtors, Credit Policies, Credit Ratings, Credit Evaluations, Bonds, Security, Cash Deposits, Banking Institutions, Carrying Value, Financial Assets