✨ Telecom South Limited Financial Notes
4610 NEW ZEALAND GAZETTE No. 205
TELECOM SOUTH LIMITED
NOTES TO THE FINANCIAL STATEMENTS
(CONTINUED)
11 COMMITMENTS
OPERATING LEASES
Operating lease commitments are mainly in respect of leases of land and buildings. Minimum rental commitments as at 31 March 1992 for all non-cancellable operating leases are:
(in millions)
- Payable within 1 year: 2.1
- Payable within 1-2 years: 1.7
- Payable within 2-3 years: 1.5
- Payable within 3-4 years: 1.2
- Payable within 4-5 years: 0.6
- Payable thereafter: 4.6
Total: $11.7
CAPITAL COMMITMENTS
As at 30 September 1992 capital expenditure amounting to $8.9 million (30 September 1991: $23.2 million, 31 March 1992: $21.8 million) has been committed under contractual arrangements.
12 CONTINGENT LIABILITIES
LAND CLAIMS
As stated in Note 7, interests in land included in assets purchased from the Crown may be subject to claims to the Waitangi Tribunal or may be deemed to be Wahi Tapu and, in either case, may be resumed by the Crown.
Certain claims have been brought or are pending against the Crown under the Treaty of Waitangi Act 1975. Some of these claims may affect land transfers to Telecom by the Crown and/or by Telecom to its subsidiary companies.
In the event that land is resumed by the Crown, there is provision for compensation to Telecom.
LAWSUITS AND OTHER CLAIMS
In August 1991, a competitor filed proceedings against Telecom in connection with a request for a local service interconnection arrangement. The basis of claim is that the Telecom Group, in offering certain terms and conditions of service, is in breach of section 36 of the Commerce Act 1986. Substantive hearings in the suit were completed in October 1992. Judgement is awaited. Telecom believes that it has valid defences to these proceedings. Because there are very few precedents to assist Telecom in determining the outcome of these proceedings, Telecom cannot ascertain the likelihood of such proceedings being successful or the potential impact any judgement entered against it might have upon the trend of Telecom’s future net earnings.
Various other lawsuits, claims and investigations have been brought by or against the Company. The Board of Directors believes that in the event of an unfavourable outcome, such matters will not have a material adverse effect upon the Company’s financial position.
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VUW Te Waharoa —
NZ Gazette 1992, No 205
NZLII —
NZ Gazette 1992, No 205
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Telecom South Limited Financial Statements
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💰 Finance & RevenueFinancial Statements, Commitments, Leases, Contingent Liabilities, Lawsuits