3180 NEW ZEALAND GAZETTE No. 125

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

Note 1: (i) OPERATING REVENUE
Network line rentals 4,746,635 4,534,964
AC loss-rental rebates 157,646 248,850
Interest income 103,024 111,783
Dividend income 0 11,885
Total revenue 5,007,305 4,907,482

(ii) OPERATING EXPENSES
Audit fees 26,500 24,600
Auditors fees for other services 4,000 2,750
Fees to other auditors 1,030 6,123
Bad debts written off 0 8,405
Depreciation 307,528 368,872
Directors remuneration & expenses 72,000 78,102
Interest paid 101 768
Loss/ (gain) on sale of assets 4,171 70,690
Network holiday credits (1999 including discounts) 1,547,978 1,209,373
Cost of sales & operating expenses 2,788,468 2,962,655
4,751,776 4,732,338

Note 2: Taxation Reconciliation
Accounting net operating surplus before taxation 255,529 175,144
Taxation at 33% 84,325 57,798
Plus tax effect of:
Non deductible expenditure 0 0
Permanent differences 8,313 9,096
Prior year adjustment 48,170 28,796
Income tax charge for the year 140,808 95,690

Income tax charge for the year comprises:
Current taxation 0 7,135
Deferred taxation 140,808 88,555
140,808 95,690

Deferred Tax Asset / (Liability):
Opening balance 252,876 (45,850)
Prior period adjustment 237,209 (28,847)
Current year movement (11,353) 29,522
Tax losses (288,069) 298,051
Closing balance 190,663 252,876

Note 3: Retained Earnings & Reserves
Retained Earnings
Balance at beginning of the year 223,345 231,690
Net surplus for the year 114,721 79,454
Adjustment to equity (3,722,597) (67,799)
Transfer from revaluation reserves 449,464 0
Share premium reserve account closed 185,025 0
Dividends paid and proposed (45,000) (20,000)
Balance at end of the year (2,795,042) 223,345