✨ Financial Statements
4530
NEW ZEALAND GAZETTE, No. 155
28 NOVEMBER 2006
Vector Limited
Electricity Lines Business
Notes to the Financial Statements
For the year ended 31 March 2006
20. FINANCIAL INSTRUMENTS (continued)
CREDIT RISK
In the normal course of business, the Vector group is exposed to credit risks 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 exposures 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 performs 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 2006 $000 | Carrying amount 2005 $000 | |
|---|---|---|
| Cash and bank overdraft | - | 1,239 |
| Trade receivables | 53,948 | 50,580 |
| Interest rate swaps | 1,858 | - |
| Cross currency swaps | 1,774 | 2,054 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 155
Gazette.govt.nz —
NZ Gazette 2006, No 155
✨ LLM interpretation of page content
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Vector Limited Financial Statements for the Electricity Lines Business
(continued from previous page)
🏭 Trade, Customs & Industry28 November 2006
Vector Limited, Financial Statements, Electricity Lines Business, Financial Instruments, Interest Rate Swaps, Cross Currency Swaps, Foreign Exchange Risk, Credit Risk