Rangatira Annual Report 2025 - Flipbook - Page 55
Annual Report 2025
2024
Amortised cost
$000
FVOCI
$000
FVTPL
$000
Total
$000
Financial assets
Cash and cash equivalents
Trade receivables
Foreign currency forward contracts - see note 12
65,406
-
-
65,406
5,748
-
-
5,748
-
-
52
52
5,421
-
-
5,421
-
128,206
2,040
130,246
76,575
128,206
2,092
206,873
Payables
6,907
-
-
6,907
Borrowings - see note 22
10,935
-
-
10,935
Total financial liabilities
17,842
-
-
17,842
Loans receivable - see note 12
Investments - see note 8.1
Total financial assets
Financial liabilities
C. Foreign Currency Risk Management
The Company is exposed to some foreign currency risk, but was more predominant when it reported consolidated
financial statements with risks mainly from its consolidated subsidiaries. Where applicable, these were managed
within approved policy parameters and utilising forward foreign exchange contracts.
All foreign currency transactions during the financial year are brought to account using the exchange rate in effect
at the date of the transaction. Foreign currency monetary items at reporting date are translated at the exchange
rate existing at reporting date. Non-monetary assets and liabilities carried at fair value that are denominated in
foreign currencies are translated at the rates prevailing at the date when the fair value was determined.
Exchange differences are recognised in the profit or loss in the period in which they arise except for exchange
differences from the Company’s subsidiaries’ foreign operations assets and liabilities which were recognised in
the previous foreign currency translation reserve.
Now that the Company no longer consolidates its subsidiaries, foreign currency exchange risks are not material.
D. Interest rate risk
The Company as part of its consolidated financial statements carried long term variable rate borrowings, used
to fund ongoing activities of its subsidiaries. Management monitored the interest rates on an ongoing basis, and
from time to time, will lock in fixed rates.
The Company does not carry any borrowing and the notional principal or contract amount of the Company’s long
term variable rate borrowings at balance date was $nil (2024: $7.869 million, consolidated).
A sensitivity analysis of the exposure to interest rate risk at reporting date shows if variable interest rates
had been 1% higher or lower, while all other variables were held constant, the net profit after tax would have
decreased or increased by $nil (2024: $57,000, consolidated).
Now that the Company no longer consolidates its subsidiaries, interest rate risks are not material.
E. Credit risk and concentrations of credit risk
The Company incurs credit risk from trade debtors, transactions with financial institutions, and lending to other
entities. The risk associated with trade debtors is managed with a credit policy, which includes performing credit
evaluations on customers. The risk associated with financial institutions is managed by placing cash and shortterm investments with registered New Zealand and Australian banks. The maximum exposure are the carrying
values of these instruments, excluding any recognised expected credit losses under NZ IFRS 9.
The risk from loans and receivables are recorded at amortised cost. Management carefully monitor its loan book
for performance which include repayment, defaults (if any), and the borrower’s financial condition. The maximum
exposure is $17,982,000 (2024: $5,473,000).
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