✨ Financial Statements Notes
17 JANUARY 2005
NEW ZEALAND GAZETTE, No. 7
151
Notes to the financial statements (continued)
For the year ended 31 March 2004
17) Contingent Asset
Over the past 2 years the Company reported a contingent asset in respect to an insurance claim resulting from storm damage incurred in 2000. During the year the Company accepted a settlement offer from the Insurance Companies resulting in the receipt of an additional $395,000, increasing the settlement proceeds to $1.145 million.
18) Commitments
There were no capital commitments not provided for at year end. The figure for 2003 was also nil.
19) Financial instruments
Credit risk
Financial assets which potentially subject the Company to a credit risk principally consist of bank balances and accounts receivable. The maximum credit risk is the book value of these financial instruments however, the Company considers the risk of non recovery of these amounts to be minimal.
Bank balances and investments in short term deposits are made with registered banks with satisfactory credit ratings. Exposure with any one financial institution is restricted in accordance with company policy.
Currency risk
The company had no material exposure to currency risk at 31 March 2004.
Interest risk
The interest rate risk is limited to bank borrowings. The Company has a policy of hedging interest rates and has hedges covering $23 million of borrowings for periods between two and five years at less than 7.5%.
Fair Values
The carrying value of cash and bank deposits, accounts receivable and accounts payable is equivalent to their fair value.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 7
Gazette.govt.nz —
NZ Gazette 2005, No 7
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Notes to the financial statements for the year ended 31 March 2004
(continued from previous page)
💰 Finance & RevenueFinancial statements, Contingent asset, Insurance claim, Commitments, Financial instruments, Credit risk, Currency risk, Interest risk, Fair values