✨ Financial Statements Notes
NGC HOLDINGS LIMITED
GAS WHOLESALING ACTIVITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
11. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
FOREIGN EXCHANGE RISK
Transactions are conducted in foreign currencies for the purpose of protecting the NZD value of capital expenditure. Forward exchange contracts are used to hedge forecasted foreign currency exposure arising out of the capital expenditure program. Hence at balance date no significant exposure to foreign currency risk exists.
CREDIT RISK
In the normal course of business, there is exposure to credit risks from energy retailers and customers. Credit policies are in place, which are used to manage the exposure to credit risks.
| 2010 CARRYING AMOUNT $000 | 2009 CARRYING AMOUNT $000 | |
|---|---|---|
| Notional cash | 37,452 | 33,329 |
| Receivables and prepayments | 8,117 | 10,726 |
12. CONTINGENT LIABILITIES
Claims against the gas wholesaling activities, where appropriate, have been recognised and disclosed within provisions. No other material contingent liabilities requiring disclosure have been identified (30 June 2009: nil).
13. TRANSACTIONS WITH RELATED PARTIES
| NATURE OF THE TRANSACTION | RELATED PARTY | 2010 $000 | 2009 $000 |
|---|---|---|---|
| Sold gas based on actual amounts billed and notional revenue | Gas Retailing Activities | 214,193 | 199,442 |
| charged based on gas wholesale's cost of gas. | |||
| Sold gas by-products based on standard terms and conditions. | Kapuni Gas Treatment Plant | 10,817 | 7,373 |
| Purchased gas transmission services based on standard terms | Gas Transmission Activities | 515 | 634 |
| and conditions. | |||
| Allocation of processing fees costs. | Kapuni Gas Treatment Plant | 5,685 | 7,416 |
(Transmission services charges are paid to related parties at the time of billing.)
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ISSN 0111-5650
ISSN 1177-8415
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NZ Gazette 2010, No 158
✨ LLM interpretation of page content
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Certification of Financial Statements for NGC Holdings Limited
(continued from previous page)
💰 Finance & Revenue15 November 2010
Financial Statements, Financial Instruments, Risk Management, Contingent Liabilities, Related Party Transactions