✨ Financial Statements
28 NOVEMBER 2005
NEW ZEALAND GAZETTE, No. 197
4961
Vector Limited & Subsidiaries
Gas Distribution Activities
Notes to the Financial Statements
For the year ended 30 June 2005
19. FINANCIAL INSTRUMENTS (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.
Pre-IPO equity securities
The carrying amount of the pre-IPO equity securities is equivalent to their fair value and includes the principal and interest accrued.
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 mark to market 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.
20. CONTINGENT LIABILITIES
The directors are aware of claims against entities within the Vector group and, where appropriate, have recognised provisions for these as they relate to gas distribution activities within the financial statements. No other material contingencies requiring disclosure have been identified (2004: nil).
21. TRANSACTIONS WITH RELATED PARTIES
The Vector gas distribution business sold $2.2 million of distribution services to NGC New Zealand Limited in the year ended 30 June 2005.
NGC Holdings Limited's gas distribution business sold $3.6 million of distribution services to NGC New Zealand Limited and $43k to Vector Limited in the year ended 30 June 2005.
NGC Management Limited provides management services in respect of the gas distribution activities of NGC Holdings Limited. Management fees of $4.0 million were paid to NGC Management Limited by NGC Holdings Limited's gas distribution business during the year ended 30 June 2005.
No related party debts have been written-off or forgiven during the year.
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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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