New Zealand Gazette – 2005 – No. 8

Page 174

✨ Financial Statements and Notes



174 NEW ZEALAND GAZETTE, No. 8 17 JANUARY 2005

NELSON ELECTRICITY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year to 31 March 2004

Note 8 Continued

The most recent Optimised Deprival Valuation for the Nelson Electricity Ltd network system assets was dated 31 March 2004 and the total value recorded was $19,393m.

Land assets were revalued as at 31 July 2001 in accord with valuations provided by Telfer Young (Nelson) Ltd The directors consider that the above values represent fair value for land and buildings.
The current rating valuation for improvements is $130,000 (2003 $138,500)

9. Term Loans

As at As at
31-Mar-04 31-Mar-03
$000 $000
Westpac Trust Multi Option Credit Facility 1,000 1,000

The effective interest rate at 31 March 2004 is 6.04% (2003, 6.36%). This is a three year revolving facility reviewed and able to be extended annually. The facility limit is $1.8m and the company has granted a negative pledge as an alternative to issuing security. The agreement expires on 28 March 2006.

10. Related Party Transactions

Marlborough Lines Limited and Network Tasman each own 50% of the shares in Nelson Electricity Limited and have in the past year provided management and administrative services to the following value:

2004 2003
Marlborough Lines Ltd 167,705 167,705
Network Tasman Ltd 132,502 132,502
Payable to Marlborough Lines at 31 March 13,958 Nil
Payable to Network Tasman at 31 March 11,042 11,042

Nelson Electricity reimburses Marlborough Lines for salaries paid to staff on their behalf. Salaries totalling $29,110 remained payable to Marlborough Lines as at 31 March 2004. (2003 Nil)

Network Tasman oncharged to Nelson Electricity Transpower national grid charges during the year totalling $1,759,300. (2003, $1,797,674). As at 31 March 2004 Nelson Electricity owed Network Tasman $134,673 for transmission charges. (2003, $134,547)

2004 2003
Directors fees paid to Marlborough Lines in respect of Mr K Forrest 8,600 8,600

There were no related party transactions at nil or nominal value.
There were no related party debts written off or forgiven during the year. (2003 Nil)

11. Financial Instruments

Credit Risk

Credit risk is the risk that an outside party will not be able to meet its obligations to the company. The company places its cash deposits with high credit quality financial institutions. Credit risk in respect of accounts receivable is minimised through the company's ability to place bonding requirements on its major electricity retailing customers and the substantial financial nature of these businesses. The company does not have any other significant concentrations of credit risk.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2005, No 8


Gazette.govt.nz — PDF NZ Gazette 2005, No 8




✨ LLM interpretation of page content

🏭 Nelson Electricity Limited Financial Performance and Equity Movements (continued from previous page)

🏭 Trade, Customs & Industry
Financial statements, Share capital, Retained earnings, Reserves, Plant property and equipment, Nelson Electricity Limited