✨ Financial Statements Notes
NGC HOLDINGS LIMITED
GAS WHOLESALING ACTIVITIES
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2007
10. PROPERTY, PLANT AND EQUIPMENT
| 2007 | COST / VALUATION $000 | ACCUMULATED DEPRECIATION $000 | NET BOOK VALUE $000 |
|---|---|---|---|
| Plant, vehicles, equipment | 1,409 | (915) | 494 |
| Capital work in progress | 24 | - | 24 |
| Total | 1,433 | (915) | 518 |
| 2006 | COST / VALUATION $000 | ACCUMULATED DEPRECIATION $000 | NET BOOK VALUE $000 |
|---|---|---|---|
| Plant, vehicles, equipment | - | - | - |
| Capital work in progress | - | - | - |
| Total | - | - | - |
The corporate non-system fixed assets have been allocated to the gas wholesaling activities in 2007. These assets were not allocated in 2006 but their use was charged to the business by way of a management fee.
11. FINANCIAL INSTRUMENTS
A comprehensive treasury policy approved by the Vector board of directors is used to manage the risks of financial instruments. The policy outlines the objectives and approach that are adopted in the treasury management processes. The policy covers, among other things, management of credit risk, interest rate risk, funding risk, liquidity risk, currency risk and operational risk.
A detailed disclosure of Vector group’s financial instruments is available under Note 30 of the Vector group’s annual report for the year ended 30 June 2007.
INTEREST RATE RISK
Interest rate exposures are actively managed in accordance with treasury policy. In this respect, at least forty percent of all debt must be at fixed interest rates or effectively fixed using interest rate swaps, forward rate agreements, options and other derivative instruments.
FOREIGN EXCHANGE RISK
In this reporting period transactions in foreign currencies have been conducted for the purpose of protecting the NZ$ value of capital expenditure.
There are outstanding forward exchange contracts. At balance date there is no significant exposure to foreign exchange risk.
CREDIT RISK
In the normal course of business, there is exposure to credit risks from energy retailers, financial institutions and trade debtors. There are credit policies, which are used to manage the exposure to credit risks.
As part of these policies, exposures are limited 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 Vector board of directors and are monitored on a regular basis. In this respect, credit risk is minimised by spreading such exposures across a range of institutions.
There is no anticipation of non-performance by any of these financial institutions.
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2007, No 132
Gazette.govt.nz —
NZ Gazette 2007, No 132
✨ LLM interpretation of page content
💰
Notes to the Financial Statements
(continued from previous page)
💰 Finance & Revenue14 November 2007
Financial statements, Property, Plant, Equipment, Financial instruments, Interest rate risk, Foreign exchange risk, Credit risk