✨ Financial Statements Notes
NEW ZEALAND GAZETTE
No. 97
TELECOM AUCKLAND 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 |
| Payable within 1-2 years |
| Payable within 2-3 years |
| Payable within 3-4 years |
| Payable within 4-5 years |
| Payable thereafter |
CAPITAL COMMITMENTS
As at 31 March 1992 capital expenditure amounting to $15.9 million (31 March 1991: $50.0 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
Various 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.
In addition to the above, a competitor filed proceedings in August 1991, against Telecom, including Telecom Auckland, in connection with a request for a local service interconnection arrangement. The substantive issues are to be heard by the Court commencing in June 1992. 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. Telecom believes that it has valid defences to these proceedings. Because there are very few precedents to assist Telecom in determining the outcome if this action were to proceed, Telecom cannot ascertain the likelihood of such action being successful or the potential impact any judgement against it might have upon the trend of future net earnings.
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VUW Te Waharoa —
NZ Gazette 1992, No 97
NZLII —
NZ Gazette 1992, No 97
✨ LLM interpretation of page content
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Telecom Auckland Limited Financial Statements
(continued from previous page)
🏭 Trade, Customs & Industry27 May 1992
Telecommunications, Financial Statements, Commitments, Contingent Liabilities, Operating Leases, Capital Commitments, Land Claims, Lawsuits