21 SEPTEMBER NEW ZEALAND GAZETTE 3165

SCANPOWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED 31 MARCH

Note 1: (i) OPERATING REVENUE
Network line rentals 4,534,964 4,332,955
Appliance sales, servicing and wiring 0 0
Network contracting 0 230,662
Interest income 111,783 142,566
Dividend income 11,885 0
Total revenue 4,658,632 4,706,183

    (ii) OPERATING EXPENSES
    Audit fees                                                   24,600        15,159
    Auditors fees for other services                                  2,750         2,750
    Fees to other auditors                                          6,123           0
    Depreciation                                                368,872       420,021
    Directors remuneration & expenses                              78,102        78,000
    Change in provision for doubtful debts                              0           0
    Interest paid                                                   768         9,267
    Lease payments                                                    0        19,544
    Loss/ (gain) on sale of assets                                  70,690      (26,998)
    Discounts to customers                                    1,209,373     1,258,539
    Cost of sales & operating expenses                            2,713,805     2,860,987
                                                                4,483,488     4,645,273

Note 2: Taxation
A tax loss benefit of $298,051 has been recognized, subsequent realisation of which is subject to the
requirements of income tax legislation being met.

    Taxation Reconciliation
    Accounting net operating surplus before taxation              175,144        60,910

    Taxation at 33%                                               57,798        20,100
    Plus tax effect of:
    Non deductible expenditure                                       0         8,313
    Permanent differences                                         9,096           0
    Prior year adjustment                                      28,796           0
    Income tax charge for the year                                 95,690        28,413

    Income tax charge for the year comprises:
    Current taxation                                              7,135      (2,556)
    Deferred taxation                                            88,555       30,969
                                                                95,690        28,413

    Deferred Tax Asset / (Liability):
    Opening balance                                            (45,850)     (14,881)
    Prior period adjustment                                    (28,847)      (1,060)
    Current year movement                                        29,522     (29,909)
    Tax losses                                                298,051           0
    Closing balance                                            252,876     (45,850)