New Zealand Gazette – 2008 – No. 21

Page 463

✨ Financial Statements



Buller Electricity Limited

Line Business Financial Statements

7 FINANCIAL INSTRUMENTS

(a) Credit Risk

i) In the normal course of business the company incurs credit risks being cash, bank deposits and debtors transactions with electricity retailers and financial institutions.

ii) The company has a credit evaluation policy and requires a bond or a guarantee from customers.

iii) The company has concentrations of credit risk in accounts receivable balances. Of total electricity line charges receivable, 100% are due from TrustPower Limited, Meridian Energy Limited, Genesis Power Limited, Mercury Energy Limited and Contact Energy Limited.

iv) The company has a policy that minimises its credit risk to financial institutions by limiting the amount of cash and short term investments placed with any one financial institution at any one time.

(b) Interest Rate Risk

i) All term loans are unsecured and subject to negative pledge undertakings. The term loans are not hedged and are at the floating 90 day bill rate. The company currently has $5million rolling loan facilities.

ii) The company has a loan of $1,740,515 that is interest bearing (8%), unsecured and repayable on demand.

iii) Deposit interest rates range from 7.30% pa – 7.80% pa at balance date 31 March 2007.

c) Fair Values
The directors consider that the carrying amount of financial instruments in the statement of financial position is equal to their fair value.

8 COMMITMENTS
There are no capital commitments at 31 March 2007. (2006 $Nil)

9 CONTINGENT LIABILITIES
There is a contingent liability for discrepancies that may arise on the reconciliation of energy transported versus energy charged by the various energy retailers. The potential or maximum liability is not able to be estimated. (2006 $Nil)

10 PRICE THRESHOLD COMPLIANCE
Buller Electricity Limited was in breach of the price path thresholds set by the Commerce Commission in September 2003 and March 2004. Directors believe that any liability arising from these breaches will not be material. The company was not in breach of the price and quality thresholds at March 2007.

11 RECONCILIATION OF NET SURPLUS TO NET CASH FLOW FROM OPERATING ACTIVITIES

2007 2006
Reported Net Surplus after tax 1,297,084 693,261
Add (Less) Non Cash Items:
Depreciation 809,651 823,433
Vested Assets (359,474) (352,734)
Add (Less) Movements in Working Capital Items:
Decrease (Increase) in Tax Receivable 21,860 169,141
Decrease (Increase) in Receivables (382,042) (5,726)
(Decrease) Increase in Creditors 69,947 (145,924)
(Decrease) Increase in Tax Payable 0 0
Decrease (Increase) in other Current Assets 0 0
(Decrease) Increase in Interdivisional Balance 437,667 5,555
597,609 493,745
Add (Less) Movements in Non-current Items:
Net Loss (Gain) on Disposal of Assets 0 0
Net Cash Inflows from Operating Activities 1,894,693 1,187,006


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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2008, No 21


Gazette.govt.nz — PDF NZ Gazette 2008, No 21




✨ LLM interpretation of page content

🏭 Buller Electricity Limited Financial Statements (continued from previous page)

🏭 Trade, Customs & Industry
7 February 2008
Buller Electricity Limited, Financial Statements, Credit Risk, Interest Rate Risk, Contingent Liabilities, Price Threshold Compliance, Reconciliation of Net Surplus