New Zealand Gazette – 2008 – No. 13

Page 312

✨ Financial Statements Notes



312 NEW ZEALAND GAZETTE, No. 13 29 JANUARY 2008

NELSON ELECTRICITY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year to 31 March 2007

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.

9. Term Loans

As At
31-Mar-07 31-Mar-06
$000 $000

Westpac Trust Multi Option Credit Facility

3,470 | 3,500

The effective interest rate at 31 March 2007 is 8.17% (2006, 7.70%). This is a three year revolving facility and able to be extended annually. The facility limit is $8.1m and the company has granted a negative pledge as an alternative to issuing security in respect of the facility. The agreement expires on 31 October 2008.

10. Related Party Transactions

Marlborough Lines Limited and Network Tasman Limited 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:

2007 2006
$ $
Marlborough Lines Ltd 257,496 167,496
Network Tasman Ltd 170,496 132,502

Payable to Marlborough Lines at 31 March.

21,458 | 13,958

Payable to Network Tasman at 31 March.

14,208 | 11,042

Nelson Electricity reimburses Marlborough Lines for salaries paid to staff on their behalf. Salaries totalling $23,546 remained payable to Marlborough Lines as at 31 March 2007. (2006 $31,510)

Network Tasman oncharged to Nelson Electricity Transpower national grid charges during the year totalling $2,111,171 (net). (2006, $1,782,305). As at 31 March 2007 Nelson Electricity owed Network Tasman $176,637 (net) for transmission charges. (2006, $148,735)

Network Tasman credited Nelson Electricity with loss rental rebates (from Transpower) totalling $224,926 (net). (2006, $280,506) As at 31 March 2007 Network Tasman owed Nelson Electricity $6,162 (net) for loss rental rebates. (2006, $22,200)

During the year Nelson Electricity paid dividends totalling $1,060,000 to each of Marlborough Lines Limited and Network Tasman Limited. (2006, $1,900,000 each)

During the year Network Tasman provided Nelson Electricity with access to its fibre optic network to a value of $6,144 (2006 Nil). As at 31 March 2007 the value outstanding to Network Tasman was $549.

2007 2006
$ $

Directors fees paid to Marlborough Lines in respect of Mr K Forrest

10,800 | 10,080

There were no related party transactions of nil or nominal value.

There were no related party debts written off or forgiven during the year. (2006 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.



Next Page →



Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2008, No 13


Gazette.govt.nz — PDF NZ Gazette 2008, No 13




✨ LLM interpretation of page content

🏭 Notes to the Financial Statements for Nelson Electricity Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Deprival Valuation, Term Loans, Related Party Transactions, Credit Risk, Nelson Electricity Limited
  • K Forrest, Directors fees paid