Financial Statements




NEW ZEALAND GAZETTE

No. 224

TELECOM SOUTH LIMITED

NOTES TO THE FINANCIAL STATEMENTS—continued

| | Six Months Ended
| | 30 September 1990
| | $000's | Year Ended
| | 31 March 1990
| | $000's |

2 REVENUE

214,459 ... 399,859

Revenue includes rental from telephone lines and customer premises equipment, national calls, telex, leased circuit, telegraph, radio and support centre service revenue, and sales of customer premises equipment.

3 OPERATING EXPENSES

169,520 ... 326,919

Included in Operating expenses are:

Depreciation ... 49,342 ... 90,233
Audit fees ... 95 ... 145
Intercompany management fee ... 8,873 ... 19,471
Lease and rental costs ... 2,863 ... 5,187

The formula used in determining the amount of labour and overhead capitalised to the cost of self constructed assets has been varied with the effect that for the six months ended 30 September 1990 an additional $2.7 million of overhead which otherwise would have been charged to earnings, after taxation, was capitalised.

4 INTEREST

Interest income:

  • Intercompany ... 173 ... 787

Interest expense:

  • Intercompany ... 16,328 ... 34,990
  • Other ... 1,127 ... 20

Total interest expense ... 17,455 ... 35,010
Less interest capitalised ... (883) ... (501)

Net interest expense ... 16,572 ... 34,509

5 TAXATION EXPENSE

Net earnings before taxation ... 28,540 ... 39,218
Tax at current rate of 33% ... 9,418 ... 12,942
Adjustment for permanent differences ... 376 ... (1,912)

Total taxation ... 9,794 ... 11,030

The tax expense is represented by:

  • Current taxation (Note 9) ... 6,113 ... 5,911
  • Deferred taxation (Note 9) ... 3,681 ... 5,119

6 DIVIDENDS

Interim dividend proposed ... 3,373 ... —
Final dividend proposed ... — ... 20,285

Dividends for period ... 3,373 ... 20,285
Proposed dividend at end of period ... 3,373 ... 20,285

7 ACCOUNTS PAYABLE AND ACCRUALS

Trade accounts payable and accruals ... 31,597 ... 39,720
Personnel accruals ... 16,368 ... 9,349
Rentals billed in advance ... 10,348 ... 15,538
Payable to fellow subsidiary companies ... — ... 7,361
Payable to parent company ... 34,851 ... 17,680

Total accounts payable and accruals ... 100,525 ... 88,537



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✨ LLM interpretation of page content

🏭 Telecom South Limited Financial Position Statement (continued from previous page)

🏭 Trade, Customs & Industry
28 November 1990
Financial Statement, Revenue, Operating Expenses, Interest, Taxation, Dividends, Accounts Payable