✨ Financial Statements
CENTRALINES LIMITED - Lines Business
Notes to the Financial Statements
For the year ended 31 March 2007
Note 10: Financial Instruments
Centralines has no off balance sheet financing (other than those disclosed in these notes), nor any foreign exchange exposure.
The fair value of financial instruments is the carrying amount disclosed in the Statement of Financial Position.
Centralines has an approved overdraft facility with the ANZ Bank for $100,000 at an interest rate of 14%.
The interest rates on the company’s deposits are presented in note 3.
Interest Rate Risk
Interest Rate risk is the risk that the value of the assets and liabilities will fluctuate due to changes in market interest rates. The Company is exposed to interest rate risk primarily through cash balances, investments and finance leases.
Credit risk
Financial instruments which potentially subject the Company to credit risk principally consist of bank balances and accounts receivable. No collateral is held on these amounts. Maximum exposure to credit risk is the amount stated in the Financial Statements and is net of any recognised provision for losses on these financial instruments.
Concentration of credit risk
The Company has exposure to one electricity retailer that may account for up to 50% of accounts receivable. To minimise this risk, the company has contractual requirements contained within the use of system agreements operating with this party. A bond may be required where deemed necessary. At balance date no such bonds were held.
Note 11: Reserves
| 2007 | 2006 | |
|---|---|---|
| $000 | $000 | |
| Asset revaluation reserve | ||
| Balance at beginning of year | 23,777 | 23,795 |
| Revaluation of electrical distribution network | - | - |
| Revaluation of Land/Buildings | - | (18) |
| Balance at end of year | 23,777 | 23,777 |
Detailed as:
| | | |
| Land/Buildings | 44 | 44 |
| General | 420 | 420 |
| Revaluation of electrical distribution network | 23,313 | 23,313 |
| | 23,777 | 23,777 |
Note 12: Retained Earnings
| 2007 | 2006 | |
|---|---|---|
| $000 | $000 | |
| Balance at beginning of year | 4,882 | 3,102 |
| Net surplus | 2,428 | 1,830 |
| Dividends paid | (50) | (50) |
| Balance at end of year | 7,260 | 4,882 |
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 49
Gazette.govt.nz —
NZ Gazette 2008, No 49
✨ LLM interpretation of page content
🏢
Centralines Limited Financial Position
(continued from previous page)
🏢 State Enterprises & InsuranceFinancial statement, Financial Instruments, Interest Rate Risk, Credit Risk, Reserves, Retained Earnings