✨ Financial Statements
4388 NEW ZEALAND GAZETTE, No. 182 9 DECEMBER 2009
Financial liabilities
| Distribution | Retail | |||
|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | |
| $ | $ | $ | $ | |
| Financial liabilities at amortised cost | ||||
| Creditors and other payables | 343,746 | 305,495 | 4,211,655 |
Borrowings:
- secured loans | | 3,075,896 | 5,891,541 | 9,016,627 | 2,412,005 |
Financial instruments which potentially subject the Group to credit risk principally consist of bank balances and accounts receivable. Generally the Group does not require collateral. 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. An amount of $54,705 (2008: $108,290) is included in Retail’s current liabilities which is the value of consumer deposits held. No other collateral is held on these amounts.
The Group is not exposed to any concentrations of risk or currency risk.
The Group has no bank overdraft facility.
The methods and assumptions used are that the carrying amount in the financial statements reflects the estimated fair value of the financial instruments including receivables, bank and investments and accounts payable.
The Group has long term borrowings which are used to fund ongoing activities.
The Group has arranged a bank guarantee for $388,203 (2008: $388,203) which is required by Vector Ltd to ($335,000) to gain access to their distribution networks and Maui Development Limited ($53,203) for use of the Maui pipeline under the open access agreement.
Interest Rate Risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. This could particularly impact on the cost of borrowing or the return on investments.
The Directors do not consider there is any significant exposure to interest rate risk on the Group’s investments.
The interest rates on the Group’s borrowings are disclosed in note 7. Interest rates are reviewed regularly.
There are no interest rate options or interest rate swap agreements in place as at 30 June 2009 (2008: Nill).
Currency Risk
No currency risk.
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NZ Gazette 2009, No 182
✨ LLM interpretation of page content
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Notes to the Financial Statements
(continued from previous page)
💰 Finance & Revenue3 December 2009
Financial liabilities, Creditors, Borrowings, Credit risk, Bank guarantees, Interest rate risk, Currency risk