✨ Financial Statements
NGC HOLDINGS LIMITED
GAS RETAILING ACTIVITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
12. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued)
CREDIT RISK (continued)
| 2008 CARRYING AMOUNT $000 | 2007 CARRYING AMOUNT $000 | |
|---|---|---|
| Trade receivables | 30,990 | 36,472 |
LIQUIDITY RISK
Liquidity risk is the risk of difficulty in raising funds at short notice to meet financial commitments as they fall due. In order to reduce the exposure to liquidity risk, access to undrawn committed lines of credit is maintained. Cash flow reporting systems are maintained to monitor the forecast liquidity position over an outlook of five years.
The day-to-day liquidity exposure is managed by ensuring that sufficient levels of liquid assets and committed facilities are maintained for the next four to five weeks based on daily rolling operational cash flow forecasts. Short term liquidity crisis management is managed by ensuring sufficient borrowing capacity and liquid assets are available as determined from a monthly rolling 18 month cash flow forecast.
The long term liquidity exposure is managed by ensuring estimated deficits in net cash flow are able to be met as determined by the yearly rolling five year cash flow forecast.
A detailed disclosure of the financial instruments is reported in Note 27 of the Vector group's annual report for the year ended 30 June 2008.
13. CONTINGENT LIABILITIES
The directors are aware of claims against entities within the Vector group and, where appropriate, have recognised provisions for these within the financial statements. No material contingencies requiring disclosure have been identified (30 June 2007: nil).
14. RELATED PARTY BORROWINGS
Borrowings are a notional apportionment of the Vector group debt facilities including bank loans, a working capital facility, medium term notes, capital bonds, fixed interest rate bonds, private placement senior notes and floating rate notes. All borrowings are unsecured with all bank loans and medium term notes being subject to negative pledge arrangements.
The interest cost on borrowings has been calculated using a weighted average interest rate of 8.03% (30 June 2007: 7.47%) applicable to the Vector group. Borrowings are subject to various lending covenants. These have all been met for the years ended 30 June 2008 and 30 June 2007.
A detailed disclosure of the Vector group borrowings is reported in Note 26 of the Vector group annual report for the year ended 30 June 2008.
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NZ Gazette 2008, No 185
✨ LLM interpretation of page content
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NGC Holdings Limited Balance Sheet for Gas Retailing Activities
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🏭 Trade, Customs & IndustryFinancial statements, Provisions, Commitments, Property, Plant and Equipment, Gas retailing