Page 63 - NZPM Annual Report 2020

NZPM GROUP LIMITED
Notes to the Consolidated Financial Statements for the year ended 31 March 2020

31.4. Trading transactions with shareholders

Sale of goods to shareholders are made at market prices. The amounts outstanding at balance date are on normal trade terms and
will be settled in cash.

Sale of goods Amounts owing
2020 2019 2020 2019
31.5. Trading transactions with directors
$’000 $’000 $’000 $’000
Sale of goods 8,376 5,445 827 887

Directors J DeBernardo, A Lawrence (retired), J Leen, P Faul, C McCord, S McIvor (retired), N Mansfield, and M Whitehead are also
directors of companies which regularly trade with Plumbing World Limited. Goods sold to companies associated with the directors
during the year were based on the price lists in force and terms that would be available to third parties. No goods were purchased
from companies associated with the directors during the year (2019: nil).
The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received. No provisions have
been made for doubtful debts in respect of the amounts owed.

2020 2019
31.6. Rental of properties from directors
$’000 $’000
Lease costs paid 283 283

Director S McIvor (retired) has an interest in a property that is leased to Plumbing World Limited in Wanaka. Director J DeBernardo
has an interest in a property that is leased to Plumbing World Limited in Christchurch. Formal lease agreements are in place for both
properties and rent is based on commercial rates.

In April 2020, Director J DeBernardo advised that he had disposed of his interest in this Christchurch property.

32. Financial risk management

32.1. Classes and categories of financial instruments and their fair values

The following table combines information about:
• classes of financial instruments based on their nature and characteristics;
• the carrying amounts of financial instruments;
• fair values of financial instruments (except financial instruments when carrying amount approximates their fair value); and
• fair value hierarchy levels of financial assets and financial liabilities for which fair value was disclosed.

Fair value hierarchy levels 1 to 3 are based on the degree to which fair value is observable:
• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not
based on observable market data (unobservable inputs).

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NZPM GROUP LIMITED ANNUAL REPORT 2020