COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
A
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
B
COMMUNICATION FIJI LIMTED
ANNUAL REPORT 2014
CONTENTSPage Number
Directors, Advisors and Management Team
ii
Notice of Annual General Meeting
iii
Chairman’s Reportiv-v
Corporate Governance
viii - ix
Directors’ report1 - 2
Statement by directors3
Independent audit report4
Consolidated statement of comprehensive income
5
Consolidated statement of financial position
6
Consolidated statement of cash flows
7
Consolidated statement of changes in equity
8
Notes to the consolidated financial statements
9 - 32
Disclaimer on additional information
Listing requirements of South Pacific Stock Exchange
33
Minutes of the previous AGM
Proxy Form
34- 35
36-38
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COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
BOARD MEMBERS/ MANAGEMENT TEAM
Left to Right: William Parkinson (Managing Director), Shaenaz Voss, Matthew Wilson, Pramesh Sharma and
Jyoti Solanki (Group Financial Controller/ Company Secretary)
Ian Jackson
General Manager - CFL
AUDITORS
Adrian Au
General Manager - PNG FM LTD
SOLICITORS
BANKERS
REGISTERED
OFFICE
ERNST & YOUNG
231 Waimanu Road, Suva
Telephone: (679) 331 4766
Chartered Accountants
Suva.
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COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the 30th Annual General Meeting of the members of Communications (Fiji) Limited will be held at 10am
on Tuesday, the 12th of May 2015, at 231 Waimanu Road, Suva to transact the following business:
AGENDA
General Business
Minutes of the Previous Meetings held on 7th of May 2014:
To receive, consider and adopt the minutes of the previous Annual General Meeting held on 7th May 2014 as correct record of the
meeting.
Ordinary business:
Item 1 Adoption of Financial Statements for the year ended 31st December 2014
To receive, consider and adopt the Audited financial position and Comprehensive Income Statement and the reports of the Directors
and Auditors for the year ended 31st December 2014.
Item 2 Election of Directors
(a)
Mr Pramesh Sharma retires by rotation in accordance with Article 108 of the Articles of Association of the Company, and
being eligible offers himself for re-appointment as a director of the company.
(b)
Ms Shaenaz Voss retires by rotation in accordance with Article 108 of the Articles of Association of the Company, and being
eligible offers herself for re-appointment as a director of the company.
Item 3 Appointment of Auditors
The board proposes that M/s. Ernst & Young, Chartered Accountants, be appointed auditors of the company for the year 2015 and that
the board be authorized to fix their remuneration.
Item 4 Declaration of Dividends
The board recommends to adopt the 2nd interim dividend of $284,640 (8 cents per share) as final dividend for the year 2014 bringing
the total dividends declared to 13cents.
Other Business;
Any other business brought up in conformity with the Articles of Association of the company.
By order of the Board of Directors,
Jyoti Solanki
Company Secretary
Dated: 21st April 2015
Suva, Fiji Islands
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COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
CHAIRMAN’S REPORT
I am very pleased to report that the CFL Group posted a positive result for the year to December 2014.
After tax profit came in at $1,474,957 (2013:$1,515,009) on a turnover of $13,224,193.
Profit from operations of our core broadcast businesses in Fiji and Papua New Guinea went up by 18.13 per cent to $2,661,184 (2013:
$2,252,598).
This was underpinned by a record result from the Fiji operations of $1,368,161, a rise of 42.50 per cent over the previous year.
Income from election-related advertising provided a boost for the Fiji performance. Even without this there was growth in revenue
and profit reflecting a generally buoyant business and consumer climate. We calculate that there may be a dip in results in Fiji for 2015.
But we do not expect this to be significant, given the current economic and commercial indicators.
After a slow start, our PNG subsidiary, PNG FM Ltd, contributed an after-tax profit of K1,118,993 (F$892,410), a slight increase from
2013.
Shareholders are aware that our recent policy in PNG has been one of consolidation, following the earlier strain on the company’s
management systems and resources caused by very rapid growth. The administration of the company is now better organised and
more soundly based. We expect the trend of growth evident in 2014 to continue in 2015. This will be a busy year featuring the Pacific
Games in July and the 40th anniversary of Papua New Guinea’s independence.
We can all be encouraged by the strength of CFL Group’s consolidated balance sheet.
At year’s end the net worth of the group stood at $11,115,135, an increase of 8.7 per cent from 2013.
Overall debt reduced by 8.94 per cent.
An increase in equity improved the gearing ratio by three per cent to 19 per cent - well below our policy benchmark of 40 per cent or
less. This low level of gearing is a reflection of financial stability.
Earnings per share were a positive 41.45 cents, which places the Group in the top tier of companies in terms of their returns to
shareholders.
We have paid a total of just over $4 million in dividends in the 13 years since CFL listed on the South Pacific Stock Exchange and became
a public company.
For 2014 the CFL board approved a total dividend of 13 cents per share, divided into an interim payment of five cents and a final one
of eight cents.
Favourable market perceptions of CFL were reflected in continuing gains in our share price. This made CFL one of the best performers
on the South Pacific Stock Exchange in 2014. The price went up to $4.10c per share in December 2014 and rose further in March 2015
to $4.12c.
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COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
The year ended on a positive note when our application for renewal of our broadcast licence was approved by the Telecommunications
Authority of Fiji for a period of 15 years. This provides us with the certainty we require for operations and planning.
We intend to invest approximately $700,000 in 2015 in strengthening and expanding transmission networks required to support the
biggest commercial broadcaster in the Pacific Islands.
The aim, as always, is to ensure that we provide the widest possible coverage and sound quality for the populations of Fiji and PNG.
In line with global media developments we continue to develop our online presence through fijivillage.com. We organised one of the
defining moments of the 2014 elections with the staging of a leaders’ debate broadcast exclusively on our radio stations. It had an
additional multi-media dimension with video streaming on fijivillage.com for audiences in Fiji and world wide.
Once again the Tebbutt media survey demonstrated the extensive reach of our five Fiji stations. The survey revealed that 85.1 per cent
of radio listeners surveyed listened to one of our stations over a seven day period.
CFL’s 50 per cent shareholding in 231 Waimanu Road Ltd, owner of our headquarters building, gives us a consistent return. We have
now taken responsibility for management of the property. It has been renovated and is fully tenanted.
We are projecting that after-tax profitability of the company will rise to about $300,000 in 2015 (2014: $214,483) and in 2016 to
$340,000.
A new valuation is to be conducted in accordance with International Financial Reporting Standards. We expect this will have a
significant positive impact on the 2015 balance sheet.
The 41.7 per cent investment by PNG FM in Paradise Cinemas continues to present substantial challenges. We entered into this
venture in partnership with Damodar Group Fiji Limited and City Pharmacy Limited Group, which is listed on the Port Moresby Stock
Exchange. It was a groundbreaking initiative to bring cinema entertainment to PNG for the first time. Several factors formed the basis
for this decision. It was a certainty that PNG would have a cinema industry. It is the largest and most populous country in the region,
with a rapidly growing economy. Port Moresby is the biggest city among the Island nations.
Paradise Cinemas operates complexes in Port Moresby at Vision City and Waigani Central.
Development of the market, however, is more demanding than we anticipated. The company registered a loss for 2014 of K2,242,506
(FJD1,788,269).
Shareholders are supporting the venture and the Paradise team is working hard to put it on course for profitability over the longer
term. It is being closely monitored. There is a new push on marketing and promotion to capitalise on a strong line-up of movies.
Auditors determined no impairment was required on the investment in 2014 but this may be considered in 2015 depending on
circumstances.
This year marks the 30th anniversary of the formation of Communications Fiji. We are planning a special birthday celebration in July.
It’s been quite a journey from those small beginnings in Stewart Street, not far from our current home. We have achieved much and
surmounted many difficulties.
We intend to retain our position of market leadership and further enhance our ability to serve the best interests of our shareholders.
In all of this we will be motivated and driven by the restless entrepreneurial energy which has always been a hallmark of CFL. We must
use the anniversary milestone as an opportunity to focus on a future that holds as much promise as in 1985.
Matt Wilson
Chairman
v
CFL RADIO STATIONS
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
vi
PNG FM RADIO STATIONS
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
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COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED
CORPORATE GOVERNANCE IN ACCORDANCE WITH GUIDELINE PROVIDED
BY RESERVE BANK OF FIJI
Role of the Board
The role of the Board is to ensure that Management is provided with general and strategic direction to enhance corporate profit and
shareholder’s value. Decisions made by the Board should safeguard interests of the shareholders by overseeing Management and
regularly assessing controls and accountability systems.
The Board
The Board comprised of four Directors including one independent Director at the end of financial year 2014. All appointments and
removal of directors are confirmed at the Annual General Meeting.
The Board has set up a sub-committee to review the remuneration package of key personnel. This committee is chaired by Mr Pramesh
Sharma with Ms Shaenaz Voss as the other member. Most of the decisions are made and dealt with collectively by the Board. Approval
for urgent matters is sought via flying minutes.
Board Meetings
Board meeting discussions revolve around capital projects, financial performance and comparisons to budgets, editorial and operational
matters, compliance with corporate governance requirements, management reports and the financial results of its subsidiaries and
associates.
Directors
No. of meetings
entitled to attend No. of meetings
attended
Mr Matthew Wilson (Chairman)
5
5
Mr William Parkinson (Managing Director)
5
5
(Alternate Director)
5
5
Mr Pramesh Sharma
5
5
Apologies
Mrs Shaenaz Voss/ Mr Vilash Chand
Responsibilities of the Board
Each year the Board goes through the process of assessing the company’s strategic plan, performance targets, business objectives and
internal control policies. All matters relating to corporate governance are handled by the Board collectively.
The Finance department is responsible for producing financial information, monitoring external audits, reviewing half year and annual
financial statements and monitoring company’s compliance with stock exchange and other requirements by external bodies. The
Board is informed on these matters regularly by management and approval is sought by way of flying minutes, depending on the
urgency of the matter.
Constituting an Effective Board
The CFM Board comprises of two Directors representing significant shareholders, one independent Directors and the Managing
Director. All Directors are qualified individuals with wide experience in the media industry and the commercial sector. Appointments
are based on qualification, skill, experience, knowledge and integrity of the individual.
Appointment of a Chief Executive Officer (Managing Director)
Mr William Parkinson continued in his role as Managing Director. His contract is extended till 31 December 2016 and will be due
for renewal in 2017. His appointment by the Board was based on his over 30 years experience in the media industry in the Pacific
and in recognition of his performance in leading Communications Fiji Ltd since its inception in 1984. The remuneration package
for the Managing Director was decided by the Board based on independent advice sought from Chartered Accounting firm
PricewaterhouseCoopers.
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COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
Board and Company Secretary
The Company Secretary, Jyoti Solanki is a Group Financial Controller and has substantial years of experience in management and
accounting field. She is responsible for ensuring CFL and its subsidiary company PNGFM Ltd remains compliant to various regulatory
requirements, meets statutory obligations, board policy and procedures. She maintains minutes of board meetings and is accountable
to the Board on all governance issues.
Timely and balanced Disclosures
Board meetings are held on quarterly basis where company’s performance, strategies and operating results are discussed. On the
basis of these discussions, major decisions are deliberated and approved by the Board.
All the required material information is released periodically to the public through market announcements, as required under the
rules of the South Pacific Stock Exchange. In between meetings, the Board is kept informed by the Managing Director on all the
relevant matters transacting during the period.
Promote ethical and responsible decision-making
The Board realizes that no organization can flourish if there is an absence of ethical and responsible decision making. Therefore, the
Board has placed strong emphasis on encouraging management to engage in discussions and training that would foster improved
ethical and responsible decision making.
Register of Interest
The interests of the directors if any are noted during Board meetings.
Respect the rights of shareholders
The shareholders of CFM are well informed through market announcements, media briefings and the Annual General Meeting. The
Company also has an official website cfl.com.fj which is updated on a regular basis.
Accountability and Audit
Each subsidiary is separately audited annually by an external auditor and an Independent audit report is presented to the Board.
This report also forms part of the Annual Report. External auditors are appointed every year by shareholders in the Annual General
Meeting.
Though, the Company doesn’t have an internal audit team, special projects relating to Audit are performed by the Finance team and
reports are presented to Management and the Board.
Recognise and manage risk
The Company does not have a separate risk management committee. However, the Managing Director, Company Secretary and
General Managers conduct continuous assessment on material business and operational risks and transmit it to the Board. They also
ensure that proper controls and procedures are in place to administer these risks.
ix
CFL 2014 EVENTS
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
FIJI SHOWCASE
TADRA KAHANI
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COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
DIRECTORS’ REPORT
FOR THE YEAR ENDED 31 DECEMBER 2014
In accordance with a resolution of the Board of Directors, the Directors herewith submit the Consolidated Statement of Financial
Position of the company and the group as at 31 December 2014, the related Consolidated Statement of Comprehensive Income,
Consolidated Statement of Changes in Equity and Consolidated Statement of Cash Flows for the year then ended on that date and
report as follows:
Directors
Directors at the date of this report are:
Mathew Wilson
William Parkinson
Pramesh Sharma
Shaenaz Voss
Vilash Chand (Alternate director)
Principal activity
The principal business activity of the company and the subsidiary company in the course of the year was the operation of commercial
radio stations and there has been no significant change in this activity during the year. The associate companies provide wireless
internet services, cinema entertainment and renting of a property respectively.
Results
The operating group profit for the year was $1,474,957 (2013: $1,515,009) after providing $451,295 (2013: $534,440) for income tax.
The operating profit for the holding company for the year was $1,258,359 (2013: $953,561) after providing $132,580 (2013: $12,757)
for income tax.
Dividends
The dividends declared and/or paid during the year was $355,800 (2013: $782,760).
Subsequent to year end, the directors have declared a final dividend of $0.08 per share for the financial year ended 31 December
2014.
Reserves
The directors recommended that no transfer be made to reserves within the meaning of the Seventh Schedule of the Companies Act,
1983.
Bad and doubtful debts
Prior to the completion of the company’s and the group’s financial statements, the directors took reasonable steps to ascertain that
action had been taken in relation to writing off bad debts and the provision for doubtful debts. In the opinion of directors, adequate
provision has been made for doubtful debts.
As at the date of this report, the directors are not aware of any circumstances which would render the amount written off for bad
debts, or the provision for doubtful debts in the company and the group, inadequate to any substantial extent.
Non-current assets
Prior to the completion of the financial statements of the company and of the group, the directors took reasonable steps to ascertain
whether any non-current assets were unlikely to be realized in the ordinary course of business as compared to their values as shown in
the accounting records of the company and the group. Where necessary these assets have been written down or adequate provision
has been made to bring the values of such assets to an amount that they might be expected to realize.
As at the date of this report, the directors are not aware of any circumstances which would render the values attributed to non-current
assets in the company’s and the group’s financial statements misleading.
Unusual transactions
In the opinion of the directors, the results of the operations of the company and of the group during the financial year were not
substantially affected by any item, transaction or event of a material and unusual nature likely, in the opinion of the directors, to affect
substantially the results of the operations of the company and the group in the current financial year, other than those reflected in
the financial statements.
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COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
DIRECTORS’ REPORT continued
FOR THE YEAR ENDED 31 DECEMBER 2014
Events subsequent to balance date
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the
operations of the company and the group, the results of those operations, or the state of affairs of the company and the group as
reported in these financial statements.
Other circumstances
As at the date of this report :
(i)
no charge on the assets of the company and group has been given since the end of the financial year to secure the liabilities of any other person;
(ii)
no contingent liabilities have arisen since the end of the financial year for which the company and the
group could become liable; and
(iii)
no contingent liabilities or other liabilities of the company and the group have become or are likely to become
enforceable within the period of twelve months after the end of the financial year which, in the opinion of the
directors, will or may substantially affect the ability of the company and the group to meet its obligations as
and when they fall due.
As at the date of this report, the directors are not aware of any circumstances that have arisen, not otherwise dealt with in this report
or the company’s and its group’s financial statements, which would make adherence to the existing method of valuation of assets or
liabilities of the company and its subsidiary misleading or inappropriate.
Directors’ benefits
Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other than those
included in the aggregate amount of emoluments received or due and receivable by directors shown in the financial statements or
received as the fixed salary of a full-time employee of the company or of a related corporation) by reason of a contract made by the
company or by a related corporation with the director or with a firm of which he is a member, or with a company in which he has a
substantial financial interest.
Directors’ interests
Particulars of directors’ interests in the ordinary shares of the company during the year are as follows:
Direct interest Indirect interest
Mathew Wilson 112,736
Nil
William Parkinson
Nil
1,881,341
Signed on behalf of the Board of Directors in accordance with a resolution of the directors.
Dated this day of 2015.
Director: ………………………………………. 2
Director: ……………………………………….
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
STATEMENT BY DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2014
In accordance with a resolution of the Board of Directors, we state that in our opinion:
(i)
the accompanying Statement of ComprehensiveIincome of the company and group is drawn up so as to give a true and fair view of the results of the company and the group for the year ended 31 December 2014;
(ii)
the accompanying Statement of Changes in Equity of the company and the group is drawn up so as to give a true
and fair view of the changes in equity of the group for the year ended 31 December 2014;
(iii)
the accompanying Statement of Financial Position of the company and the group is drawn up so as to give a true
and fair view of the state of affairs of the company and the group as at 31 December 2014;
(iv)
the accompanying Statement of Cash Flows of the company and the group is drawn up so as to give a true and fair
view of the statement of cash flows of the company and the group for the year ended 31 December 2014;
(v)
at the date of this statement there are reasonable grounds to believe the company and the group will be able to
pay its debts as and when they fall due; and
(vi) all related party transactions have been adequately recorded in the books of the company and group.
Signed on behalf of the Board of Directors in accordance with a resolution of the directors.
Dated this day of 2015.
Director: ………………………………………. 3
Director: ……………………………………….
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
Pacific House
Level 7
1 Butt Street Suva Fiji
PO Box 1359 Suva Fiji
Tel: +679 331 4166
Fax: +679 330 0612
ey.com
INDEPENDENT AUDIT REPORT
To the members ofAUDIT
COMMUNICATIONS
INDEPENDENT
REPORT (FIJI) LIMITED
Scope
To
the members of COMMUNICATIONS (FIJI) LIMITED
We have audited the accompanying Financial Statements of Communications (Fiji) Limited and its subsidiary ('the Group'), which comprise
Scope
the consolidated statement of financial position as at 31 December 2013 and the consolidated statement of comprehensive income, the
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have audited
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Directors'
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Directors’
and Management’s Responsibility for the Financial Statements
accordance
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Auditor's Responsibility
Auditor’s
Responsibility
Our responsibility
is to express an opinion on the consolidated Financial Statements based on our audit. We conducted our audit in
Our
responsibility is to express an opinion on the consolidated Financial Statements based on our audit. We conducted our audit in
accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and
accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan
perform the audit to obtain reasonable assurance about whether the consolidated Financial Statements are free from material
and perform the audit to obtain reasonable assurance about whether the consolidated Financial Statements are free from material
misstatement.
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated Financial
Statements.
The procedures
depend
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including
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presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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Opinion
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our opinion:
opinion:
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properbooks
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which have
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the accompanying
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i) are in agreement with the books of account; and
i) are in agreement with the books of account; and
ii) to the best of our information and according to the explanations given to us:
ii)
to the best of our information and according to the explanations given to us:
a) give
view
of the
of the
company
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the groupand
as atthe
31group
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and of its 2014
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(a)a true and
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view of
of affairs
the state
of affairs
of the
as at2013
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performance,
changes
in
equity,
and
its
cash
flows
for
the
year
ended
on
that
date;
and
and of its financial performance, changes in equity, and its cash flows for the year ended on
that date;required
and by the Fiji Companies Act, 1983 in the manner so required.
b) give the information
(b)
give the information required by the Fiji Companies Act, 1983 in the manner so required.
We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of
We
have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the
our audit.
purposes of our audit.
Suva, Fiji
Ernst & Young
Chartered Accountants
2014
5
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COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
COMMUNICATIONS
COMMUNICATIONS
COMMUNICATIONS
(FIJI)
(FIJI)
LIMITED
LIMITED
(FIJI)
and
LIMITED
and
Subsidiary
Subsidiary
andDECEMBER
Subsidiary
company
company
company
FOR
THE
YEAR
ENDED
31
2014
COMMUNICATIONS
COMMUNICATIONS
COMMUNICATIONS
(FIJI)
(FIJI)
LIMITED
LIMITED
(FIJI)
and
LIMITED
and
Subsidiary
Subsidiary
and
Subsidiary
company
company
company
CONSOLIDATED
CONSOLIDATED
CONSOLIDATED
STATEMENT
STATEMENT
STATEMENT
OFOF
COMPREHENSIVE
COMPREHENSIVE
OF COMPREHENSIVE
COMPREHENSIVE
INCOME
INCOME
INCOME
CONSOLIDATED
CONSOLIDATED
CONSOLIDATED
STATEMENT
STATEMENT
STATEMENT
OF
OF
COMPREHENSIVE
COMPREHENSIVE
OF
INCOME
INCOMEINCOME
FOR
FOR
THE
THE
YEAR
FOR
YEAR
THE
ENDED
ENDED
YEAR
31
31
ENDED
DECEMBER
DECEMBER
31
DECEMBER
2014
2014
2014
FORFOR
THETHE
YEAR
FOR
YEAR
THE
ENDED
ENDED
YEAR
31 ENDED
31
DECEMBER
DECEMBER
31 DECEMBER
2014
2014 2014
Radio
Radio
income
income
Radio income
income
adio
Radio
income
income
Radio
Other
Other
revenue
revenue
Other
revenue
Other
Other
revenue
revenue
Other revenue
Salaries
Salaries
and and
employee
Salaries
employee
and
benefits
benefits
employee
benefits
alaries
Salaries
and
employee
and
Salaries
employee
and
benefits
employee
benefits benefits
Depreciation
Depreciation
and
Depreciation
and
amortization
and amortization
amortization
epreciation
Depreciation
and
Depreciation
amortization
and amortization
amortization
and
Other
Other
expenses
expenses
Other expenses
expenses
Other
Other
expenses
expenses
Other
Notes
Notes
Notes
Notes
Notes
Notes
4.1 4.1
4.1
4.1
4.2 4.2
4.2
4.2
4.3 4.3
4.3
4.3
4.4 4.4
4.4
4.4
4.5 4.5
4.5
4.5
4.1
4.1
4.2
4.2
4.3
4.3
4.4
4.4
4.5
4.5
rofit
Profit
fromfrom
operations
Profit
operations
from operations
operations
rofit
Profit
from
from
operations
Profit
operations
from
Group
Group
Group
Group
Group
Group
2014 2013
2013
2013
2014
2013
$
$
$
$ $$
Holding
Holding
Company
Company
Holding Company
Company
Holding
Holding
Company
Company
Holding
2013 2014
2014
2014
2014 2013
2013
2013
2013
2013
2014
2014
2013
2013
$
$
$
$
$
$
$
$
$
$
$
$
$
$
11,940,632
11,940,632
11,940,632
12,194,787
12,194,787
12,194,787
4,897,035
4,897,035
4,897,035
4,431,703
4,431,703
4,431,703
11,940,632
11,940,632
11,940,632
12,194,787
12,194,787
12,194,787
4,897,035
4,897,0354,897,035
4,431,703
4,431,7034,431,703
1,283,561
1,283,561
1,283,561
1,237,056
1,237,056
1,237,056
1,295,262
1,295,262
1,295,262
1,179,720
1,179,720
1,179,720
1,283,561
1,283,5611,283,561
1,237,056
1,237,0561,237,056
1,295,262
1,295,2621,295,262
1,179,720
1,179,7201,179,720
(3,447,652)
(3,447,652)
(3,447,652)
(3,103,693)
(3,103,693)
(3,103,693)
(2,043,656)
(2,043,656)
(2,043,656)
(1,886,376)
(1,886,376)
(1,886,376
(3,447,652)
(3,447,652)
(3,447,652)
(3,103,693)
(3,103,693)
(3,103,693)
(2,043,656)
(2,043,656)
(2,043,656)
(1,886,376)
(1,886,376)
(1,886,376)
(904,843)
(904,843)
(904,843)
(1,057,014)
(1,057,014)
(1,057,014)
(475,248)
(475,248)
(475,248)
(548,222)
(548,222)
(548,222
(904,843)
(904,843)(904,843)
(1,057,014)
(1,057,014)
(1,057,014)
(475,248)
(475,248)(475,248)
(548,222)
(548,222)(548,222)
(6,210,514)
(6,210,514)
(6,210,514)
(7,018,538)
(7,018,538)
(7,018,538)
(2,305,232)
(2,305,232)
(2,305,232)
(2,216,777)
(2,216,777)
(2,216,777
(6,210,514)
(6,210,514)
(6,210,514)
(7,018,538)
(7,018,538)
(7,018,538)
(2,305,232)
(2,305,232)
(2,305,232)
(2,216,777)
(2,216,777)
(2,216,777)
2,661,184
2,661,184
2,661,184
2,252,598
2,252,598
2,252,598
1,368,161
1,368,161
1,368,161
960,048
960,048
960,048
2,661,184
2,661,1842,661,184
2,252,598
2,252,5982,252,598
1,368,161
1,368,1611,368,161
960,048
960,048 960,048
inance
Finance
costs
costs
Finance costs
costs
4.6 4.6
inance
Finance
costs
costs
Finance
4.6
4.6
Share
Share
of
(loss)/profit
of
(loss)/profit
Share
of
of
(loss)/profit
associate
of
associate
or
of
joint
or
associate
joint
venture
venture
or
joint
venture
4.7 4.7
hareShare
of (loss)/profit
of (loss)/profit
Share ofof(loss)/profit
associate
of associate
orof
joint
associate
or joint
venture
venture
or joint venture 4.7
4.7
4.6
4.6
4.7
4.7
rofit
Profit
before
before
income
Profit
income
before
tax tax
income tax
tax
rofit
Profit
before
before
income
Profit
income
before
tax
taxincome
Income
tax
expense
ncome
tax expense
expense
Income
tax expense
expense
ncome
Income
tax
taxIncome
expense
tax
2014
2014
2014
2014
$
$ $$
(97,002)
(97,002)
(97,002)
(115,360)
(115,360)
(115,360)
(84,464)
(84,464)
(84,464)
(105,636)
(105,636)
(105,636
(97,002)
(97,002) (97,002)
(115,360)
(115,360)(115,360)
(84,464)
(84,464) (84,464)
(105,636)
(105,636)(105,636)
(637,930)
(637,930)
(637,930)
(87,789)
(87,789)
(87,789)
107,242
107,242
107,242
111,906
111,906
111,906
(637,930)
(637,930)
(87,789)
(87,789)
(87,789)
107,242
107,242
111,906
111,906
- (637,930)
- 107,242
- 111,906
--
1,926,252
1,926,252
1,926,252
2,049,449
2,049,449
2,049,449
1,390,939
1,390,939
1,390,939
966,318
966,318
966,318
1,926,252
1,926,2521,926,252
2,049,449
2,049,4492,049,449
1,390,939
1,390,9391,390,939
966,318
966,318 966,318
5
5
55
5
5
Net
profit
for the
the
for
Net
year
profit
year
for the
the year
year
et Net
Net profit
Net
profit
profit
for
for the
year
the
profit
year
for
(451,295)
(451,295)
(451,295)
(534,440)
(534,440)
(534,440)
(132,580)
(132,580)
(132,580)
(12,757)
(12,757)
(12,757
(451,295)
(451,295)(451,295)
(534,440)
(534,440)(534,440)
(132,580)
(132,580)(132,580)
(12,757)
(12,757) (12,757)
1,474,957
1,474,957
1,474,957
1,515,009
1,515,009
1,515,009
1,258,359
1,258,359
1,258,359
953,561
953,561
953,561
1,474,957
1,474,9571,474,957
1,515,009
1,515,0091,515,009
1,258,359
1,258,3591,258,359
953,561
953,561 953,561
Other
comprehensive
Other
Other comprehensive
Other
comprehensive
comprehensive
comprehensive
income
income
income income
- Other
Other
Other
comprehensive
comprehensive
income
income income
-- ---Other
comprehensive
income
toreclassified
beprofit
reclassified
tosubsequent
profit
or
loss
in subsequent
periods
: - Other
Other
comprehensive
comprehensive
Other
comprehensive
income
income
to
be
to
reclassified
be
income
reclassified
to
be
to
profit
to
or
loss
or
to
loss
in
profit
subsequent
in
or
loss
in
periods:
subsequent
periods:
periods:
OtherOther
comprehensive
comprehensive
Other comprehensive
income
income
to betoreclassified
income
be reclassified
to be
to reclassified
profit
to profit
or loss
or
toin
loss
profit
subsequent
in subsequent
or loss in
periods:
subsequent
periods: periods:
-xchange
Exchange
differences
Exchange
differences
on
differences
on
translation
translation
on
of
translation
of
foreign
foreign
of
foreign
xchange
Exchange
differences
Exchange
differences
on
differences
on
translation
translation
on oftranslation
foreign
of foreign
of foreign
operation
operation
operation
21 21
21
(229,014)
(229,014)
(229,014)
(474,662)
(474,662)
(474,662)
peration
operation operation
21
21
21
(229,014)
(229,014)(229,014)
(474,662)
(474,662)(474,662)
---
---
---
---
---
---
--
--
--
--
--
--
Other
Other
comprehensive
comprehensive
Other comprehensive
comprehensive
income
income
for the
the
for
income
the
year
for the
the year
year
Other
Other
comprehensive
comprehensive
Other
income
income
for
forincome
year
the year
year
for
--
--
--
--
--
--
(229,014)
(229,014)
(229,014)
(474,662)
(474,662)
(474,662)
(229,014)
(229,014)(229,014)
(474,662)
(474,662)(474,662)
Total
Total
Total comprehensive
comprehensive
comprehensive
comprehensive
income
income
for the
the
for
income
the
year
for the
the year
year
Total
otal
comprehensive
comprehensive
Total
income
income
for
forincome
year
the year
year
for
arnings
Earnings
per share
per
share
Earnings
share
(cents)
(cents)
per share
share (cents)
(cents)
arnings
per
Earnings
(cents)
per
Earnings
per
share
(cents)
1,245,943
1,245,943
1,245,943
1,040,347
1,040,347
1,040,347
1,258,359
1,258,359
1,258,359
953,561
953,561
953,561
1,245,943
1,245,9431,245,943
1,040,347
1,040,3471,040,347
1,258,359
1,258,3591,258,359
953,561
953,561 953,561
6
6
66
6
6
41.45
41.45
41.45
41.45
41.45 42.58
42.58
42.58
41.45
42.58
42.58
42.58
The
accompanying
accompanying
The accompanying
accompanying
notes
notes
formform
an notes
notes
integral
an
form
partan
an
part
ofintegral
integral
this
of
Consolidated
part
Consolidated
of this
thisStatement
Statement
Consolidated
Statement
of Comprehensive
Comprehensive
Statement
of
of Comprehensive
Comprehensive
Income.
Income.
Income.
he The
accompanying
The
accompanying
The
notes
notes
form
form
an
integral
an integral
integral
form
part
part
of
this
of this
Consolidated
this
part
Consolidated
of
Consolidated
Statement
of
Statement
of Comprehensive
Comprehensive
of
Income.
Income. Income.
The accompanying notes form an integral part of this Consolidated Statement of Comprehensive Income.
5
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
COMMUNICATIONS
COMMUNICATIONS
(FIJI) LIMITED
(FIJI)
and
LIMITED
Subsidiary
and Subsidiary
company company
AT
31 DECEMBER
2014
CONSOLIDATED
CONSOLIDATED
STATEMENT
STATEMENT
OF FINANCIAL
OF FINANCIAL
POSITION POSITION
AT 31 DECEMBER
AT 31 DECEMBER
2014
2014
Current assetsCurrent assets
Cash and cash Cash
equivalents
and cash equivalents
Trade receivables
Trade receivables
nventories
Inventories
Prepayments and
Prepayments
other assets
and other assets
ncome tax receivables
Income tax receivables
Non-current assets
Non-current assets
nvestment in subsidiary
Investment in subsidiary
nvestment in associates
Investmentand
in associates
joint ventures
and joint ventures
Financial assetsFinancial assets
ntangible assets
Intangible assets
Property, plantProperty,
and equipment
plant and equipment
Total assets
Notes
Notes
9(a)
9(a)
8
10
11
12
13
14
15
16
8
10
11
12
13
14
15
16
Total assets
Current liabilities
Current liabilities
Trade and other
Trade
payables
and other payables
Employee benefit
Employee
liabilities
benefit liabilities
nterest-bearing
Interest-bearing
borrowings
borrowings
ncome tax payable
Income tax payable
Non-current liabilities
Non-current liabilities
nterest-bearing
Interest-bearing
borrowings
borrowings
Deferred tax liability
Deferred tax liability
Total equity
Total equity
379,585
2,703,068
38,279
386,534
259,763
Group
2014 2013
$
$
379,585
325,776
2,703,068
2,663,366
38,27938,920
386,534
491,688
259,763
-
Holding Company
Holding Company
2013 2014
$
$
325,776 450
2,663,366
1,515,802
38,920 4,734
491,68880,393
- 87,589
2014 2013
$
$
450 450
1,515,802
1,338,846
4,734 7,343
80,39378,927
87,58963,836
2013
$
450
1,338,846
7,343
78,927
63,836
3,767,229
3,767,229
3,519,750
3,519,750
1,688,968
1,688,968
1,489,402
1,489,402
1,943,848
591,884
1,637,317
6,451,484
1,943,848
1,696,179
591,884
591,884
1,637,317
1,669,106
6,451,484
6,383,979
1,725,117
1,696,179
1,451,988
591,884
591,884
1,669,106
443,936
6,383,979
3,047,561
1,725,117
1,725,117
1,451,988
1,444,746
591,884
591,884
443,936
476,926
3,047,561
2,826,083
1,725,117
1,444,746
591,884
476,926
2,826,083
10,624,533
10,624,533
10,341,148
10,341,148
7,260,486
7,260,486
7,064,756
7,064,756
14,391,762
14,391,762
13,860,898
13,860,898
8,949,454
8,949,454
8,554,158
8,554,158
17
18
19
1,111,611
205,431
790,684
2,107,726
1,111,611
1,304,025
205,431
178,845
790,684
480,489
- 184,409
2,107,726
2,147,768
1,304,025
412,569
178,84570,814
480,489
634,653
184,409
2,147,768
1,118,036
412,569
772,936
70,81464,606
634,653
480,489
1,118,036
1,318,031
772,936
64,606
480,489
1,318,031
19
5
19
5
1,073,360
95,541
1,168,901
1,073,360
1,392,402
95,54195,736
1,168,901
1,488,138
1,392,402
1,073,360
95,736
172,285
1,488,138
1,245,645
1,073,360
1,392,402
172,285
160,511
1,245,645
1,552,913
1,392,402
160,511
1,552,913
3,276,627
3,276,627
3,635,906
3,635,906
2,363,681
2,363,681
2,870,944
2,870,944
11,115,135
11,115,135
10,224,992
10,224,992
6,585,773
6,585,773
5,683,214
5,683,214
3,558,000
253,685
7,303,450
3,558,000
3,558,000
253,685
482,699
7,303,450
6,184,293
3,558,000
3,558,000
482,69961,500
6,184,293
2,966,273
3,558,000
3,558,000
61,50061,500
2,966,273
2,063,714
3,558,000
61,500
2,063,714
11,115,135
11,115,135
10,224,992
10,224,992
6,585,773
6,585,773
5,683,214
5,683,214
Net assets
Shareholders' equity
Shareholders' equity
Share capital Share capital
Reserves
Reserves
Retained earnings
Retained earnings
Group
17
18
19
Total liabilities Total liabilities
Net assets
2014
$
20
21
20
21
The accompanying
The accompanying
notes form an notes
integral
form
partanofintegral
this Consolidated
part of thisStatement
Consolidated
of Financial
Statement
Position.
of Financial Position.
Signed for and Signed
on behalf
for of
and
the
onBoard
behalfand
of the
in accordance
Board and with
in accordance
a resolution
with
of athe
resolution
Directors.
of the Directors.
The accompanying notes form an integral part of this Consolidated Statement of Financial Position.
Director: ……………………………………….
Director: ……………………………………….
Director: …………………………
Director: …………………………
6
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
CONSOLIDATED
STATEMENT
OFcompany
CASH
FLOWS
COMMUNICATIONS
COMMUNICATIONS
COMMUNICATIONS
(FIJI) LIMITED
(FIJI)
(FIJI)
LIMITED
and
LIMITED
Subsidiary
and and
Subsidiary
Subsidiary
company
company
FOR
THE STATEMENT
YEAR
DECEMBER
2014
CONSOLIDATED
CONSOLIDATED
CONSOLIDATED
STATEMENT
STATEMENT
OF ENDED
CASH
OFFLOWS
CASH
OF 31
CASH
FLOWS
FLOWS
FOR THE
FOR
YEAR
FOR
THEENDED
THE
YEAR
YEAR
ENDED
31 ENDED
DECEMBER
31 DECEMBER
31 DECEMBER
2014 2014
2014
Note
Note Note
peratingOperating
activities
Operating
activities
activities
eceipts from
Receipts
customers
Receipts
from from
customers
customers
2014
$
Group
GroupGroup
20142014 2013
$
$
$
Holding Company
Holding
Holding
Company
Company
20132013 2014
$
$
$
20142014 2013
$
$
$
20132013
$
$
13,261,441
13,261,441
13,261,441
13,336,923
13,336,923
13,336,923
6,036,426
6,036,426
6,036,426
5,556,886
5,556,886
5,556,886
aymentsPayments
to suppliers
Payments
to and
suppliers
toemployees
suppliers
and employees
and employees
(9,762,787)
(9,762,787)
(9,762,787)
(10,141,222)
(10,141,222)
(10,141,222)
(4,570,542)
(4,570,542)
(4,570,542)
(3,847,985)
(3,847,985)
(3,847,985)
nterest and
Interest
bank
Interest
and
charges
bank
andpaid
bank
charges
charges
paid paid
(97,002) (97,002)
(97,002)
(115,360)
(115,360)
(115,360)
(84,464) (84,464)
(84,464)
(105,636)
(105,636)
(105,636)
ncome tax
Income
paidIncome
tax paid
tax paid
(895,662)
(895,662)
(895,662)
(1,306,749)
(1,306,749)
(1,306,749)
(144,559)
(144,559)
(144,559)
(230,431)
(230,431)
(230,431)
et cash provided
Net cash
Net by
cash
provided
Operating
provided
by Operating
Activities
by Operating
Activities
Activities
2,505,990
2,505,990
1,773,592
1,773,592
1,773,592
1,236,861
1,236,861
1,236,861
1,372,834
1,372,834
1,372,834
2,505,990
nvesting Investing
activities
Investing
activities
activities
roceeds Proceeds
from Proceeds
sale from
of plant
from
saleand
of
sale
plant
equipment
of plant
and equipment
and equipment
cquisition
Acquisition
of plant,
Acquisition
equipment
of plant,
of plant,
equipment
andequipment
intangibles
and intangibles
and intangibles
nvestment
Investment
in joint
Investment
venture
in joint
in venture
joint venture
ividendsDividends
received
Dividends
received
received
24,933 24,933
24,93335,950 35,950
35,95010,343 10,343
10,343 3,913
3,9133,913
(881,411)
(881,411)
(881,411)
(1,161,273)
(1,161,273)
(1,161,273)
(534,249)
(534,249)
(534,249)
(648,211)
(648,211)
(648,211)
(975,190)
(975,190)
(975,190)
(199,648)
(199,648)
(199,648) 100,000 100,000
100,000
100,000 100,000
100,000
100,000 100,000
100,000
100,000 100,000
100,000
(1,731,668)
(1,731,668)
(1,731,668)
(1,224,971)
(1,224,971)
(1,224,971)
(423,906)
(423,906)
(423,906)
(544,298)
(544,298)
(544,298)
et cash flows
Net cash
Net
used
cash
flows
in Investing
flows
used used
in Investing
Activities
in Investing
Activities
Activities
nancing Financing
activities
Financing
activities
activities
ividendsDividends
paid Dividends
to equity
paid to
holders
paid
equity
to equity
ofholders
the parent
holders
of theofparent
the parent
dvance to
Advance
related
Advance
to
party
related
to related
partyparty
epayment
Repayment
of secured
Repayment
ofloan
secured
ofprincipal
secured
loan principal
loan principal
epayment
Repayment
of lease
Repayment
principal
of lease
of lease
principal
principal
(498,120)
(498,120)
(498,120)
(853,920)
(853,920)
(853,920)
(498,120)
(498,120)
(498,120)
(853,920)
(853,920)
(853,920)
(71,100) (71,100)
(71,100)
(58,962) (58,962)
(58,962) (227,785)
(227,785)
(227,785)
(359,449)
(359,449)
(359,449)
(383,816)
(383,816)
(383,816)
(359,449)
(359,449)
(359,449)
(16,876) (16,876)
(16,876)
(65,478) (65,478)
(65,478)
(16,875) (16,875)
(16,875) -
Net
et cash flows
Net cash
used
cash
flows
in Financing
flows
used used
in Financing
Activities
in Financing
Activities
Activities
(813,881)
(813,881)
(813,881)
(1,337,809)
(1,337,809)
(1,337,809)
(898,811)
(898,811)
(898,811)
(1,213,369)
(1,213,369)
(1,213,369)
et (decrease)/increase
Net (decrease)/increase
Net (decrease)/increase
in cash held
in cash
in cash
held held
(39,559) (39,559)
(39,559)
(789,188)
(789,188)
(789,188)
(85,856) (85,856)
(85,856)
(384,833)
(384,833)
(384,833)
ash and Cash
cash Cash
equivalents
and cash
and cash
equivalents
at the
equivalents
beginning
at theatbeginning
of
the
year
beginning
of year
of year
222,065 222,065
222,065
1,080,685
1,080,685
1,080,685
(103,261)
(103,261)
(103,261)
281,572 281,572
281,572
ffects ofEffects
exchange
Effects
of exchange
rate
of exchange
changes
rateon
changes
rate
opening
changes
oncash
opening
onbalances
opening
cash cash
balances
balances
ash and Cash
cashCash
and
equivalents/(bank
cash
and cash
equivalents/(bank
equivalents/(bank
overdraft)overdraft)
at the
overdraft)
end
at the
atend
the end
9(a)
f year of year
of year
9(a) 9(a)
7,512
7,5127,512
(69,432) (69,432)
(69,432)
-
-
-
-
-
-
190,018 190,018
190,018
222,065 222,065
222,065
(189,117)
(189,117)
(189,117)
(103,261)
(103,261)
(103,261)
he accompanying
The accompanying
The accompanying
notes form
notes
an integral
notes
form form
anpart
integral
an
ofintegral
this
part
Consolidated
of
part
this
ofConsolidated
thisStatement
Consolidated
Statement
of Cash
Statement
Flows.
of Cash
of Cash
Flows.Flows.
The accompanying notes form an integral part of this Consolidated Statement of Cash Flows.
7
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
CONSOLIDATED
STATEMENT
OFcompany
CHANGES
IN EQUITY
COMMUNICATIONS
COMMUNICATIONS
COMMUNICATIONS
(FIJI) LIMITED
(FIJI)
(FIJI)
LIMITED
and
LIMITED
Subsidiary
andand
Subsidiary
Subsidiary
company
company
FOR
THE
YEAR
31
DECEMBER
CONSOLIDATED
CONSOLIDATED
CONSOLIDATED
STATEMENT
STATEMENT
STATEMENT
OFENDED
CHANGES
OF OF
CHANGES
CHANGES
IN EQUITY
IN EQUITY
IN EQUITY 2014
FOR THE
FOR
YEAR
FOR
THETHE
ENDED
YEAR
YEAR
ENDED
31ENDED
DECEMBER
31 31
DECEMBER
DECEMBER
2014 2014
2014
Notes
Notes
Notes
Retained earnings
Retained
Retained
earnings
earnings
Balance atBalance
theBalance
beginning
at the
at beginning
the
of the
beginning
year
of the
of year
the year
OperatingOperating
profit
Operating
after
profit
tax
profit
afterafter
tax tax
DividendsDividends
paid/proposed
Dividends
paid/proposed
paid/proposed
Balance atBalance
theBalance
endatofthe
at
theend
the
year
end
of the
of year
the year
7
7
7
2014
$
Group
2014
2014
$ $
Group
Group
2013
$
2013
2013
$ $
Holding Company
Holding
Holding
Company
Company
2014
$
2014
2014
$ $
2013
$
2013
2013
$ $
6,184,293
6,184,293
6,184,293
5,452,044
5,452,044
5,452,044
2,063,714
2,063,714
2,063,714
1,892,913
1,892,913
1,892,913
1,474,957
1,474,957
1,474,957
1,515,009
1,515,009
1,515,009
1,258,359
1,258,359
1,258,359
953,561 953,561
953,561
(355,800)
(355,800)
(355,800)
(782,760)
(782,760)
(782,760)
(355,800)
(355,800)
(355,800)
(782,760)
(782,760)
(782,760)
7,303,450
7,303,450
7,303,450
6,184,293
6,184,293
6,184,293
2,966,273
2,966,273
2,966,273
2,063,714
2,063,714
2,063,714
Reserves Reserves
Reserves
Foreign currency
Foreign
Foreign
translation
currency
currency
translation
reserve
translation
reserve
reserve
Balance atBalance
theBalance
beginning
at the
at beginning
the
of the
beginning
year
of the
of year
the year
MovementMovement
arising
Movement
on
arising
translation
arising
on on
translation
of
translation
the of
financial
of
the the
financial
financial
statements
statements
ofstatements
foreignof
subsidiary
foreign
of foreign
subsidiary
subsidiary
Balance atBalance
theBalance
endatofthe
at
theend
the
year
end
of the
of year
the year
21
21 21
421,199 421,199
421,199
895,861 895,861
895,861
-
-
-
-
-
-
(229,014)
(229,014)
(474,662)
(474,662)
(474,662)
(229,014)
-
-
-
-
-
-
192,185 192,185
192,185
421,199 421,199
421,199
-
-
-
-
-
-
Share premium
Share
Share
reserve
premium
premium
reserve
reserve
Balance atBalance
theBalance
beginning
at the
at beginning
the
of the
beginning
year
of the
of year
the year
Movements
Movements
during
Movements
theduring
year
during
the year
the year
Balance atBalance
theBalance
endatofthe
at
theend
the
year
end
of the
of year
the year
21
21 21
61,500 61,500
61,500 61,500 61,500
61,500 61,500 61,500
61,500 61,500 61,500
61,500
61,500 61,500
61,500 61,500 61,500
61,500 61,500 61,500
61,500 61,500 61,500
61,500
20
20 20
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
- 3,558,000
-3,558,000
- 3,558,000
-3,558,000
- 3,558,000
-3,558,000
- 3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
Share capital
Share
Share
capital
capital
Balance atMovements
Balance
the
Balance
beginning
atthe
the
atyear
beginning
the
of
the
beginning
year
ofyear
the
of year
the year
Movements
during
Movements
during
during
the
year
the
Balance atBalance
theBalance
endatofthe
at
theend
the
year
end
of the
of year
the year
TotalTotal
Total equity
equity
equity
11,115,135
11,115,135
11,115,135
10,224,992
10,224,992
10,224,992
6,585,773
6,585,773
6,585,773
5,683,214
5,683,214
5,683,214
The accompanying
The The
accompanying
accompanying
notes form
notes
annotes
integral
formform
anpart
integral
anof
integral
this
part
Consolidated
part
of this
of this
Consolidated
Statement
Consolidated
Statement
of Statement
Changes
of in
Changes
of
Equity.
Changes
in Equity.
in Equity.
The accompanying notes form an integral part of this Consolidated Statement of Changes in Equity.
8
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
1. Corporate information
The consolidated financial statements of Communications (Fiji) Limited and its subsidiary company (“the Group”) for the year ended
31 December 2014 were authorized for issue with a resolution of the directors on 27th March 2015. Communications (Fiji) Limited is
a limited liability company incorporated and domiciled in Fiji whose shares are publicly traded on the South Pacific Stock Exchange.
2.1 Basis of preparation
The consolidated financial statements have been prepared on a historical cost basis. The consolidated financial statements are
presented in Fiji dollars and all values are rounded to the nearest dollar except when otherwise indicated.
Statement of compliance
The consolidated financial statements of the group have been prepared in accordance with International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
The consolidated financial statements provide comparative information in respect of the previous period.
Basis of consolidation
The consolidated financial statements comprise the financial statements of the group and its subsidiary as at 31 December 2014.
Control is achieved when the group is exposed, or has rights, to variable returns from its involvement with the investee and has
the ability to affect those returns through its power over the investee. Specifically, the group controls an investee if and only if the
group has:
- power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);
- exposure, or rights, to variable returns from its involvement with the investee; and
- the ability to use its power over the investee to affect its returns.
When the group has less than a majority of the voting or similar rights of an investee, the group considers all relevant facts and
circumstances in assessing whether it has power over an investee, including:
- the contractual arrangement with the other vote holders of the investee;
- rights arising from other contractual arrangements; and
- the group’s voting rights and potential voting rights.
The group re-assesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of
the three elements of control. Consolidation of a subsidiary begins when the group obtains control over the subsidiary and ceases
when the group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of
during the year are included in the statement of comprehensive income from the date the group gains control until the date the
group ceases to control the subsidiary.
A change in ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the group loses
control over a subsidiary, it:
- derecognizes the assets (including goodwill) and liabilities of the subsidiary;
- derecognizes the cumulative translation differences recorded in equity;
- recognizes the fair value of the consideration received;
- recognizes the fair value of any investment retained;
- recognizes any surplus or deficit in profit or loss; and
- reclassifies the parent’s share of components previously recognized in other comprehensive income to profit or loss or
retained earnings, as appropriate, as would be required if the group had directly disposed of the related assets or liabilities.
The financial statements of the subsidiary is prepared for the same reporting period as the parent company, using consistent
accounting policies.
All intra-group balances, income and expenses and unrealized gains and losses resulting from intra-group transactions are eliminated
in full.
On consolidation, subsidiary company PNG FM’s assets and liabilities has been translated at the rate of exchange ruling at balance
date. Revenue and expense accounts have been translated using the average of the exchange rates ruling at the end of each month
during the current financial year. The rate used to translate the assets and liabilities of PNG FM was 1.2818:1 (2013: 1.25221:1) while
the average rate used to translate revenue and expense accounts was 1.2539:1 (2013: 1.1534:1).
During the year, the PNG Kina was revalued by over 15%.
9
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2014
2.2 Significant accounting judgments, estimates and assumptions
The preparation of the company and the group’s financial statements requires management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures and
COMMUNICATIONS
COMMUNICATIONS
(FIJI)
(FIJI)
LIMITED
LIMITED
and Subsidiary
andUncertainty
Subsidiary
company
company
the disclosure
of contingent
liabilities.
about
these assumptions and estimates could result in outcomes that require a
NOTES
NOTES
TO
THE
TO
THE
CONSOLIDATED
CONSOLIDATED
FINANCIAL
FINANCIAL
STATEMENTS
STATEMENTS
continued
continued
material adjustment to the carrying amount of the assets or
liabilities
affected in future periods.
FOR FOR
THE THE
YEARYEAR
ENDED
ENDED
31 DECEMBER
31 DECEMBER
20142014
Estimates and assumptions
2.2 Significant
2.2 Significant
judgments,
judgments,
estimates
estimates
and
and
assumptions
Theaccounting
key accounting
assumptions
concerning
theassumptions
future
and other
key sources of estimation uncertainty at the reporting date, that have a
significant
riskof
of
aand
material
adjustment
to the
carrying
amounts
assets
and
liabilities
within
the assumptions
next financial
The preparation
The
preparation
of the
company
thecausing
company
and the
group's
the group's
financial
financial
statements
statements
requires
requires
management
management
toof
make
to judgments,
make
judgments,
estimates
estimates
and assumptions
and
that affect
thatyear
affect
the the
reported
reported
amounts
amounts
of revenues,
of revenues,
expenses,
expenses,
assets
assets
andits
liabilities,
and
liabilities,
and the
and
accompanying
the
accompanying
disclosures
disclosures
and the
and
disclosure
the disclosure
of contingent
of
liabilities.
liabilities.
Uncertainty
Uncertainty
are
discussed
below.
The group
based
assumptions
and
estimates
on parameters
available
when
thecontingent
consolidated
financial
about about
these
these
assumptions
assumptions
estimates
and estimates
could could
result
result
in outcomes
in outcomes
that assumptions
require
that require
a material
aabout
material
adjustment
adjustment
to thetocarrying
the carrying
amount
amount
of the
ofassets
the
assets
or liabilities
or liabilities
statements
wereand
prepared.
Existing
circumstances
and
future
developments,
however,
may
change
due
to
affected
affected
in future
inchanges
future
periods.
periods.
market
or circumstances arising beyond the control of the group. Such changes are reflected in the assumptions when they
occur.
Estimates
Estimates
and assumptions
and assumptions
The key
The
assumptions
key assumptions
concerning
concerning
the future
the future
and other
and key
other
sources
key sources
of estimation
of estimation
uncertainty
uncertainty
at the at
reporting
the reporting
date, that
date,have
that ahave
significant
a significant
risk ofrisk
causing
of causing
a
a
Impairment
of non-financial
assets
material
material
adjustment
adjustment
to theto
carrying
the carrying
amounts
amounts
of assets
of assets
and liabilities
and liabilities
within within
the next
thefinancial
next financial
year are
year
discussed
are discussed
below.below.
The group
The group
based based
its assumptions
its assumptions
and and
Impairment
existsavailable
when
the
carrying
value
of anfinancial
assetfinancial
orstatements
cashstatements
generating
unitprepared.
(“CGU”)
exceeds
it recoverable
amount,
which
is thefuture
estimates
estimates
on parameters
on parameters
available
when
when
the consolidated
the
consolidated
were prepared.
were
Existing
Existing
circumstances
circumstances
and assumptions
and
assumptions
about about
future
higher however,
of its however,
fairmay
value
lesschange
costs
disposal
andchanges
its
use. The
fair
valuebeyond
less
costs
ofofdisposal
based
on available
developments,
developments,
change
may
due toof
due
market
to market
changes
or value
circumstances
or in
circumstances
arising
arising
beyond
the control
the control
theof
group.
thecalculations
group.
Such changes
Such is
changes
are reflected
are
reflected
in the in the
assumptions
assumptions
whenoccur.
they
occur.
data when
from they
binding
sales
transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs
of disposing of the asset. The value in calculation is based on a DCF model. The cash flows are derived from the budget for the next
five years and do not include restructuring activities that the group is not yet committed to or significant future investments that
Impairment
Impairment
exists exists
when the
when
carrying
the carrying
value of
value
an asset
of an or
asset
cash
orgenerating
cash generating
unit ("CGU")
unit ("CGU")
exceeds
exceeds
it recoverable
it recoverable
amount,
amount,
which which
is the is
higher
the higher
of its fair
of its
value
fair value
willofenhance
the
asset’s
performance
of
thefair
CGU
being
tested.
The calculations
recoverable
amount
is sensitive
to the
discount
rate used
for the
less costs
less costs
disposal
of disposal
and itsand
value
its in
value
use.inThe
use.fair
Thevalue
less
valuecosts
less costs
of disposal
of disposal
calculations
is based
is based
on available
on available
data from
data binding
from binding
sales transactions,
sales transactions,
DCFatmodel
as well
assimilar
the
cash-inflows
andprices
theincremental
growth
rate
used
for
extrapolation
purposes.
conducted
conducted
arm's
at arm's
length,
length,
for
forexpected
similar
assetsassets
orfuture
observable
or observable
marketmarket
prices
less
less incremental
costs
of
costs
disposing
of
disposing
of the of
asset.
the
asset.
The value
The in
value
calculation
in calculation
is based
is based
Impairment
Impairment
of non-financial
of non-financial
assetsassets
on a DCF
on amodel.
DCF model.
The cash
Theflows
cash are
flows
derived
are derived
from the
from
budget
the budget
for thefor
next
thefive
nextyears
five years
and doand
notdo
include
not include
restructuring
restructuring
activities
activities
that the
that
group
the group
is not is
yet
not yet
Taxes
committed
committed
to or significant
to or significant
future future
investments
investments
that will
that
enhance
will enhance
the asset's
the asset's
performance
performance
of theof
CGU
thebeing
CGU tested.
being tested.
The recoverable
The recoverable
amount
amount
is sensitive
is sensitive
to
to
the discount
the
discount
rate used
ratefor
used
thefor
DCF
themodel
DCF model
as to
wellthe
as
aswell
the
as
expected
the expected
future
cash-inflows
cash-inflows
the
and
growth
the growth
rate used
ratein
for
used
extrapolation
for
extrapolation
purposes.and timing
Uncertainties
exist
with
respect
interpretation
of future
complex
taxand
regulations,
changes
tax
laws,
andpurposes.
the amount
of future taxable income. The group establishes provisions, based on reasonable estimates, for possible consequences of audits by
the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such
Taxes Taxes
as experience
ofwith
previous
taxinterpretation
audits
and differing
interpretations
of
tax changes
regulations
bylaws,
the
taxable
and
theand
responsible
tax authority.
Uncertainties
Uncertainties
exist with
existrespect
respect
to theto
the interpretation
of complex
of complex
tax regulations,
tax regulations,
changes
in tax in
laws,
tax and
the
and
amount
the amount
and timing
timing
of future
of future
taxabletaxable
income.
income.
Such
differences
inprovisions,
interpretation
may
arise
forestimates,
a wide
variety
of issues
depending
onthe
the
conditions
prevailing
in respective
the countries
respective
The group
The
group
establishes
establishes
provisions,
based based
on reasonable
on reasonable
estimates,
for possible
for possible
consequences
consequences
of audits
of audits
by
by
tax
the
authorities
tax authorities
of theof
respective
the
countries
in
in
of
the
group
which which
itdomicile
operates.
it operates.
The
amount
The
amount
ofcompanies.
such
ofprovisions
such provisions
is based
is based
on various
on various
factors,
factors,
such as
such
experience
as experience
of previous
of previous
tax audits
tax audits
and differing
and differing
interpretations
interpretations
of tax of tax
regulations
regulations
by thebytaxable
the taxable
and the
andresponsible
the responsible
tax authority.
tax authority.
Such differences
Such differences
in interpretation
in interpretation
may arise
may for
arise
a wide
for a variety
wide variety
of issues
of issues
depending
depending
on theon the
conditions
conditions
prevailing
prevailing
the in
respective
the
domicile
domicile
of
of
group
the group
companies.
companies.
Deferred
taxinassets
arerespective
recognized
forthe
unused
tax losses
to the extent that it is probable that taxable profit will be available against
which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that
Deferred
Deferred
tax assets
assets
are recognized
are recognized
unused
for unused
losses
tax losses
to theto
extent
the extent
that
is probable
it is probable
that taxable
that taxable
profit will
profit
bewill
available
be available
againstagainst
which which
the losses
the losses
can becan be
can
be tax
recognized,
basedfor
upon
thetax
likely
timing
and
levelthat
of itfuture
taxable
profits
together
with
future
tax planning
strategies.
utilized.
utilized.
Significant
Significant
management
management
judgment
judgment
is required
is required
to determine
to determine
the amount
the amount
of deferred
of deferred
tax assets
tax assets
that can
that
becan
recognized,
be recognized,
based based
upon the
upon
likely
the timing
likely timing
and level
andoflevel
future
of future
taxabletaxable
profitsprofits
together
together
with future
with future
tax planning
tax planning
strategies.
strategies.
2.3 Changes in accounting policy and disclosures
New
and
amended
standards
and interpretations
2.3 Changes
2.3 Changes
in accounting
in accounting
policy policy
and
disclosures
and disclosures
The accounting policies adopted are consistent with those of the previous financial year, except for the following new and amended
standards effective as of 1 January 2014:
New and
New
amended
and amended
standards
standards
and interpretations
and interpretations
The accounting
The accounting
policies
policies
adopted
adopted
are consistent
are consistent
with those
with those
of the of
previous
the previous
financial
financial
year, except
year, except
for thefor
following
the following
new and
new
amended
and amended
standards
standards
effective
effective
as
as
of 1 January
of 1 January
2014: 2014:
Reference
Reference
Title Title
IAS 27IAS 27
IAS 32IAS 32
IFRS 10
IFRS 10
IFRS 12
IFRS 12
Amendment
Amendment
to IFRSto3IFRS 3
Amendment
Amendment
to IAS to
16IAS
and16
IAS 38IAS 38
Separate
Separate
Financial
Financial
Statements
Statements
Offsetting
Offsetting
Financial
Financial
AssetsAssets
and Financial
and Financial
Liabilities
Liabilities
Consolidated
Consolidated
Financial
Financial
Statements
Statements
Disclosure
Disclosure
of Interest
of Interest
in Other
in Other
Entities
Entities
Related
Related
party disclosures
party disclosures
and
Clarification
Clarification
of acceptable
of acceptable
methods
methods
of depreciation
of depreciation
and and
amortisation
amortisation
IFRS 9IFRS 9
Financial
Financial
Instruments
Instruments
IFRS 15
IFRS 15
Revenue
Revenue
from contracts
from contracts
with customers
with customers
Application
Application
date ofdate of
ImpactImpact
on financial
on financial
reportreport
standard
standard
1
1
1
1
1
January
1 January
2014 2014No impact
No impact
January
1 January
2014 2014No impact
No impact
January
1 January
2014 2014No impact
No impact
January
1 January
2014 2014No impact
No impact
July 12014
July 2014 No impact
No impact
The impact
The impact
of the of
standard
the standard
is yet to
is yet
be to be
1 January
1 January
2016 2016
assessed
assessed
The impact
The impact
of the of
standard
the standard
is yet to
is yet
be to be
1 January
1 January
2018 2018
assessed
assessed
The impact
The impact
of the of
standard
the standard
is yet to
is yet
be to be
1 January
1 January
2017 2017
assessed
assessed
ThereThere
There
were no
were
significant
no
changes
changes
to theto
group's
the
group's
accounting
accounting
policies
policies
duringpolicies
during
the financial
the
financial
year.
were
nosignificant
significant
changes
to the
group’s
accounting
during
theyear.
financial
10
year.
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2014
2.4 Summary of significant accounting policies
(a) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business
combination is fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any
accumulated amortization and any accumulated impairment losses. Internally generated intangible assets, excluding capitalized
development costs, are not capitalized and expenditure is reflected in the statement of ComprehensiveIincome in the year in which
the expenditure is incurred.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an
indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset
with a finite useful life is reviewed at least at each financial year end. Changes in the expected useful life or the expected pattern of
consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method,
as appropriate, and are treated as a change in accounting estimate. The amortization expense on intangible assets with finite lives
is recognized in the statement of comprehensive income in the expense category consistent with the function of intangible asset.
Intangible assets with indefinite useful lives are tested for impairment annually either individually or at the cash generating unit level.
Such intangibles are not amortized. The useful life of an intangible asset with an indefinite life is reviewed annually to determine
whether indefinite life assessment continues to be supportable. If not, the change is the useful life assessment from indefinite to
finite is made on a prospective basis.
Gains or losses arising from derecognizing of an intangible asset are measured as the difference between the net disposal proceeds
and the carrying amount of the asset and are recognized in the Statement of Comprehensive Income when the asset is derecognized.
(b) Investment in associate or joint venture
An associate is an entity over which the group has significant influence. Significant influence is the power to participate in the
financial and operating policy decisions of the investee, but is not control or joint control over those policies.
A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net
assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when
decisions about the relevant activities require unanimous consent of the parties sharing control.
Under the equity method, the investment in an associate is initially recognized at cost. The carrying amount of the investment
is adjusted to recognize changes in the group’s share of net assets of the associate or joint venture since the acquisition date.
Goodwill relating to the associate or joint venture is included in the carrying amount of the investment and is neither amortized nor
individually tested for impairment.
The statement of profit or loss reflects the group’s share of the results of operations of the associate or joint venture. Any change in
other comprehensive income of those investees is presented as part of the group’s other comprehensive income. In addition, when
there has been a change recognized directly in the equity of the associate or joint venture, the group recognizes its share of any
changes, when applicable, in the statement of changes in equity. Unrealized gains or losses resulting from transactions between the
group and the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture.
The aggregate of the group’s share of profit or loss of an associate or joint venture is shown on the face of the Statement of
Comprehensive Income and represents profit or loss after tax.
The financial statements of the associate or joint venture are prepared for the same reporting period as the group. Where necessary,
adjustments are made to bring the accounting policies in line with those of the group.
After application of the equity method, the group determines whether it is necessary to recognize an impairment loss on its
investment in its associate or joint venture. At each reporting date, the group determines whether there is objective evidence that
the investment in the associate or joint venture is impaired. If there is such evidence, the group calculates the amount of impairment
as the difference between the recoverable amount of the associate or joint venture and its carrying value, then recognizes the loss
as ‘Share of profit of associate or joint venture’ in the statement of comprehensive income.
Upon loss of significant influence over the associate or joint control over the joint venture, the group measures and recognizes any
retained investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of
significant influence or joint control and the fair value of the retained investment and proceeds from disposal is recognized in profit
or loss.
11
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2014
2.4 Summary of significant accounting policies continued
(c) Impairment of non-financial assets
The group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication
exists, or when annual impairment testing for an asset is required, the group estimates the asset’s recoverable amount. An asset’s
recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is
determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from
other assets or other groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples, quoted share prices for publicly traded subsidiary or other available fair value
indicators.
Impairment losses of continuing operations are recognized in the statement of comprehensive income in those expense categories
consistent with the function of the impaired assets, except for property previously revalued where the revaluation was taken to
equity. In this case, the impairment is also recognized in equity up to the amount of any previous revaluation.
For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously
recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Group makes an estimate of
recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to
determine the asset’s recoverable amount since the last impairment loss was recognized. If that is the case the carrying amount of
the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized
in the statement of comprehensive income unless the asset is carried at revalued amount, in which case the reversal is treated as
a revaluation increase.
The following criteria are also applied in assessing impairment of specific assets:
Goodwill
The group assesses whether there are any indication that goodwill is impaired at each reporting date. Goodwill is tested for
impairment annually and when circumstances indicate that the carrying value may be impaired.
Impairment is determined for goodwill by assessing the recoverable amount of the cash-generating units, to which the goodwill
relates. Where the recoverable amount of the cash-generating unit is less than their carrying amount an impairment loss is
recognized. Impairment losses relating to goodwill cannot be reversed in future periods. The group performs its annual impairment
test of goodwill as at 31 December.
Intangible assets
Intangible assets with indefinite useful lives are tested for impairment annually as at 31 December either individually or at the cash
generating unit level, as appropriate.
Associate and joint venture
After application of the equity method, the group determines whether it is necessary to recognize an additional impairment loss of
the group’s investment in its associate or joint venture. The group determines at each balance date whether there is any objective
evidence that the investment in associate or joint venture and the acquisition cost requires impairment and recognizes the amount
in the statement of comprehensive income.
(d) Investments and other financial assets
Financial assets within the scope of IAS 39 are classified as financial assets at fair value through profit or loss, loans and receivables,
held to maturity investments or available-for-sale financial assets, as appropriate. When financial assets are recognized initially,
they are measured at fair value, plus, in the case of investments not at fair value through profit or loss, directly attributable
transactions costs.
The group determines the classification of its financial assets on initial recognition and, where allowed and appropriate, re-evaluates
this designation at each financial year end.
All regular way purchases and sales of financial assets are recognized on the trade date, which is the date that the group commits
to purchase the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within
the period generally established by regulation or convention in the marketplace.
12
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2014
2.4 Summary of significant accounting policies continued
(c) Impairment of non-financial assets continued
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market. After initial measurement loans and receivables are carried at amortized cost using the effective interest method less
any allowance for impairment. Gains and losses are recognized in the statement of comprehensive income when the loans and
receivables are derecognized or impaired, as well as through the amortization process.
Fair value
The fair value of investments that are actively traded in organized financial markets is determined by reference to quoted market
bid prices at the close of business at balance date. For investments where there is no active market, fair value is determined using
valuation techniques. Such techniques include using recent arm’s length market transaction; reference to the current market value
of another instrument which is substantially the same; discounted cash flow analysis or other valuation models.
Amortized cost
Loans and receivables are measured at amortized cost. This is computed using the effective interest method less any allowance
for impairment. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees
that are an integral part of the effective interest rate.
(e) Impairment of financial assets
The Group assess at each balance date whether a financial asset or group of financial assets is impaired.
Assets carried at amortized cost
If there is objective evidence that an impairment loss on assets carried at amortized cost has been incurred, the amount of the loss
is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding
future expected credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate (i.e. the
effective interest rate computed at initial recognition). The carrying amount of the asset is reduced through use of an allowance
account. The amount of the loss shall be recognized in statement of comprehensive income.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event
occurring after the impairment was recognized, the previously recognized impairment loss is reversed, to the extent that the
carrying value of the asset does not exceed its amortized cost at the reversal date. Any subsequent reversal of an impairment loss
is recognized in the statement of comprehensive income.
In relation to trade receivables, a provision for impairment is made when there is objective evidence (such as the probability of
insolvency or significant financial difficulties of the debtor) that the Group will not be able to collect all of the amounts due under
the original terms of the invoice. The carrying amount of the receivable is reduced through use of an allowance account. Impaired
debts are derecognized when they are assessed as uncollectible.
(f) Inventories
Inventories are valued at the lower of cost and net realizable value. Costs includes invoice value plus associated costs incurred in
bringing each product to its present location and condition.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the
estimated costs necessary to make the sale.
(g) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand. For the purposes of the Statement of Cash Flows, cash and cash
equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.
13
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2014
2.4 Summary of significant accounting policies continued
(h) Trade and other receivables
Trade receivables are recognized at original invoice amount (inclusive of VAT) less any provision for uncollectible debts. Bad debts
are written off during the year in which they become known. A specific provision is raised for any doubtful debts.
(i) Trade and other payables
Liabilities for trade payables and other amounts are carried at cost (inclusive of VAT where applicable) which is the fair value of the
consideration to be paid in the future for goods and services received whether or not billed to the entity.
(j) Financial liabilities
Interest-bearing loans and borrowings
All loans and borrowings are initially recognized at fair value less directly attributable transaction costs, and have not been designated
“as at fair value through profit or loss”. After initial recognition, interest-bearing loans and borrowings are subsequently measured
at amortized cost using the effective interest rate method. Gains and losses are recognized in the comprehensive income when the
liabilities are derecognized as well as through the amortization process.
(k) Borrowing costs
Borrowing costs are recognized as an expense when incurred.
(l) Property, plant and equipment
Property, plant and equipment are stated at deemed cost less accumulated depreciation and any impairment in value. The principal
depreciation rates in use are:
Buildings Plant and equipment Motor vehicles 2%
5% - 30%
15% - 18%
Profit and loss on disposal of property, plant and equipment are taken into account in determining profit or loss for the year.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances
indicate the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated
recoverable amount, the assets or cash-generating units are written down to their recoverable amount.
The recoverable amount of property, plant and equipment is greater of net selling price and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent
cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs. Impairment losses are
recognized in the statement of comprehensive income.
(m) Leases
Finance leases, which transfer to the group substantially all the risks and benefits incidental to the ownership of the leased item,
are capitalized at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum
lease payments.
Capitalized leased assets are depreciated over the period the benefit is expected to be realized from their use.
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases.
Operating lease payments are recognized as an expense in the statement of comprehensive income on a straight line basis over the
lease term.
14
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2014
2.4 Summary of significant accounting policies continued
(n) Revenue
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the group and the revenue can be
reliably measured. The following specific recognition criteria must also be met before revenue is recognized:
Rendering of services
Radio revenue is recognized when commercials are played or service is delivered. Proceeds from advance deposits are not recognized
as revenue until the subsequent playing of commercials or delivery of service is performed.
Dividends
Revenue is recognized when the shareholders’ right to receive the payment is established.
Rental income
Rental income is accounted for on a straight line basis over the lease term on ongoing leases.
(o) Employee benefits
Annual leave
Provision is made for annual leave to be payable to employees on the basis of statutory requirement on employment contract.
Long service leave
The liability for employees’ entitlements to long service leave represents the amount payable to employees, based on current wage
and salary rates, for services provided up to balance date. The liability for long service leave increases according to the number of
years of service completed by the employee.
(p) Foreign currencies
The consolidated financial statements are presented in Fiji dollars, which is the holding company’s functional and presentation
currency. Each entity in the group determines its own functional currency and items included in the financial statements of each
entity are measured using that functional currency. Transactions in foreign currencies are initially recorded at the functional
currency rate ruling at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated
at the functional currency rate of exchange ruling at balance date. All differences are taken to profit or loss with the exception of
differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity. These are taken directly
to equity until the disposal of the net investment, at which time they are recognized in comprehensive income. Tax charges and
credits attributable to exchange differences on those borrowings are also dealt with in equity.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as
at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the
exchange rates at the date when fair value is determined.
The assets and liabilities of foreign operations are translated into Fiji dollars at the rate of exchange ruling at balance date and its
income statement is translated at the weighted average exchange rate for the year. The exchange difference arising on translation
are taken directly to a separate component of equity. On disposal of the foreign entity, the deferred cumulative amount recognized
in equity relating to that particular foreign operation is recognized in the statement of comprehensive income.
(q) Business combinations and goodwill
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate
of the consideration transferred measured at acquisition date fair value and the amount of any non-controlling interests in the
acquiree. For each business combination, the group elects whether to measure the non-controlling interests in the acquiree at fair
value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and
included in expenses.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and
designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date.
This includes the separation of embedded derivatives in host contracts by the acquiree.
15
“A Look Back in Time – Celeb
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
in 90’s
16
brating 30 years of existence”.
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
Cookie the Clown in action in the 90’s
Tukini Cama of FM96 at Showcase in the early 90’s
Waisale Serevi and Saimoni Rokini in the FM96
studio after the 1998 Hong Kong 7’s win.
The Late Anirudh Diwakar,
Navtarang Programme Director –
September 1989 to August 2011.
Jokatama Qio, Viti FM Drive Time Host – August
1998.
Viti FM 2nd Birthday Celebration with the late,
Mere Lomaloma, Unaisi Koroitamana and Viti
FM Programme Director then, Vuli Salusalu –
November 1998
Tukinu Cama with Brad Johnston, Fiji
National Rugby 15’s coach – 1997.
Launch of Mural with staff & Board Members,
Chairman and Co-Founder, Matt Wilson (2nd from
left) and former Chairman & Shareholder, Mr Hari
Punja (3rd from left) - Dec 1997
17
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2014
2.4 Summary of significant accounting policies continued
(q) Business combinations and goodwill continued
If the business combination is achieved in stages, any previously held equity interest is re-measured at its acquisition date fair value
and any resulting gain or loss is recognized in profit or loss. It is then considered in the determination of goodwill.
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized
for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the
fair value of the net assets acquired is in excess of the aggregate consideration transferred, the group re-assesses whether it has
correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the
amounts to be recognized at the acquisition date. If the re-assessment still results in an excess of the fair value of net assets acquired
over the aggregate consideration transferred, then the gain is recognized in profit or loss.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment
testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the group’s cash-generating
units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are
assigned to those units.
Where goodwill has been allocated to a cash-generating unit and part of the operation within that unit is disposed of, the goodwill
associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on
disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the
portion of the cash-generating unit retained.
(r) Taxes
Current income tax
Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted at balance date.
Current income tax relating to items recognized directly in equity is recognized in equity and not in comprehensive income.
Deferred tax
Deferred income tax is provided using the liability method on temporary differences at balance date between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognized for all taxable temporary differences, except:
- where the deferred income tax liability arises from goodwill amortization or the initial recognition of an asset or liability in
a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss; and
- in respect of taxable temporary differences associated with investments in subsidiary, associates and interest in joint
ventures, except where the timing of the reversal of the temporary difference can be controlled and it is probable that the
temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused
tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences,
and the carry forward of unused tax credits and unused tax losses can be utilized except:
- where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of
an asset or liability in a transaction that it is not a business combination and, at the time of the transaction, affects neither
the accounting profit nor taxable profit or loss; and
- in respect of deductible temporary differences associated with investments in subsidiary, associates and interests in joint
ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse
in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.
18
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES
TO(FIJI)
THE
CONSOLIDATED
FINANCIAL STATEMENTS continued
UNICATIONS
COMMUNICATIONS
(FIJI) LIMITED
LIMITED
and Subsidiary
and Subsidiary
companycompany
THE
YEAR
ENDED
31 DECEMBER
2014
S TO
NOTES
THE FOR
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TO THE
CONSOLIDATED
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FINANCIAL
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STATEMENTS
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continued
HEFOR
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DECEMBER
31 DECEMBER
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erred taxDeferred
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apply
the
apply
year to
when
the
the
yearasset
when
isthe
realized
asset
or
is the
realized
liability
or the
isis liability is
Deferred
taxand
assets
and liabilities
measured
at
the
tax are
rates
that to
areto
expected
to apply
to the
year
when
the
asset
tled, based
settled,
on realized
tax
based
rateson
tax tax
rates
laws)
(and
tax have
laws)based
been
that enacted
have
been
or substantively
enacted
or substantively
enacted
the
enacted
balance
at
the
date.
balance
Deferred
date.
taxDeferred
relating
tax
to items
relating
recognized
to
items recognized
or(and
the
liability
isthat
settled,
on tax
rates
(and tax
laws)
that at
have
been
enacted
or substantively
enacted
at the
balance
ctly in equity
directly
is recognized
in equity is in
recognized
equity and
in not
equity
in profit
and not
or loss.
in profit or loss.
date. Deferred tax relating to items recognized directly in equity is recognized in equity and not in profit or loss.
erred income
Deferred
tax assets
incomeand
tax deferred
assets and
income
deferred
tax liabilities
income tax
areliabilities
offset, ifare
a legally
offset,enforceable
if a legally enforceable
right exists right
to setexists
off current
to set tax
off current
assets against
tax assets
current
against
tax current tax
Deferred
income
tax
assets
andtodeferred
income
liabilities
offset,
if a legally
enforceable right exists to set off current tax
ilities and
liabilities
the deferred
and the
taxes
deferred
related
taxes
to
the
related
same
taxable
the same
entity
taxable
and tax
the
entity
same
and
taxation
theare
same
authority.
taxation
authority.
es tax
assets against current tax liabilities and the deferred taxes related to the same taxable entity and the same taxation authority.
Sales tax
Sales
tax are
enue, expenses
Revenue,
and
expenses
assets
andrecognized
assets are net
recognized
of the amount
net of the
of sales
amount
tax of
except:
sales tax except:
Revenue, expenses and assets are recognized net of the amount of sales tax except:
-
where the
wheretax
theincurred
sales tax
on incurred
a purchase
on aofpurchase
assets orofservices
assets or
is not
services
is not recoverable
from the taxation
from the
authority,
taxationinauthority,
which case
in which
the sales
casetax
theis sales tax is
- sales
- where
the sales
tax incurred
on
a purchase
of assets
orrecoverable
services
is not
recoverable
from
the taxation
authority,
in which
case
recognized as
recognized
part of the
as acquisition
part of the of
acquisition
the assetoforthe
as part
assetoforthe
as expense
part of the
item
expense
as applicable;
item as and
applicable; and
-
- receivables
receivables
and payables
stated
the
amount
of sales
tax included.
receivables
and -payables
and
arepayables
stated
with
are stated
theare
amount
with
the
of with
sales
amount
tax of
included.
sales tax
included.
the sales tax is recognized as part of the acquisition of the asset or as part of the expense item as applicable; and
net amount
The net
of sales
amount
of sales
recoverable
from, or payable
from, to,
or payable
the taxation
to, the
authority
taxationis authority
included as
is included
part of receivables
as part of receivables
payables or
in payables
the Statement
the of
Statement of
The
nettaxes
amount
oftaxes
salesrecoverable
taxes
recoverable
from,
or payable
to, the taxation
authority
is included
asorpart
of receivables
or in
payables
ancial Position.
Financial Position.
in the Statement of Financial Position.
mparatives
(s) Comparatives
(s) Comparatives
ere necessary,
WhereWhere
amounts
necessary,
relating
amounts
toamounts
prior
relating
yearto
have
priorbeen
year
reclassified
haveyear
beenhave
reclassified
to conform
to
with
conform
presentation
with
presentation
in thewith
current
in the
year.
currentin
year.
necessary,
relating
to prior
been reclassified
to
conform
presentation
the current year.
GMENT
3. INFORMATION
SEGMENT INFORMATION
3. SEGMENT INFORMATION
The
its subsidiary
operate
predominantly
in
theservices
commercial
radioThe
services
industry.
Theoperates
holding
company
operates
company
Theand
company
its company
subsidiary
and itsand
operate
subsidiary
predominantly
operate
predominantly
in the
commercial
in the commercial
radio
radio
industry.
services
industry.
holding
The
company
holding
companyin
operates
Suva, Fiji
inwhile
Suva,itsin
Fiji while its
Suva,
Fiji
while
its
subsidiary
operates
in
Port
Moresby,
Papua
New
Guinea.
sidiary operates
subsidiary
in operates
Port Moresby,
in Port
Papua
Moresby,
New Guinea.
Papua New Guinea.
(a)
Geographical
segments
(a) Geographical
Geographical
segments
segments
The following tables present revenue and profit information and certain asset and liability information regarding geographical
The following
The
tables
following
present
tables
revenue
present
revenue
profit
and
profit information
and
certain
and
asset
certain
and liability
asset and
information
liability information
regarding geographical
regarding geographical
segments for
segments
the years
for the years
segments
for
the
yearsand
ended
31information
December
2014
and 2013.
ended 31 December
ended 312014
December
and 2013.
2014 and 2013.
Year ended Year
31 December
ended 312014
December 2014
Revenue
Revenue
External sales
External sales
Results
Results
Segment result
Segment result
Unallocated Unallocated
expenses expenses
Profit from operating
Profit fromactivities
operating activities
Net finance Net
costs
finance costs
Share of (loss)/profit
Share of (loss)/profit
of associateoforassociate
joint venture
or joint venture
Profit beforeProfit
income
before
tax income tax
Income tax expense
Income tax expense
Net profit Net profit
PNG
$
PNG
$
Fiji
$
Fiji
$
EliminationsEliminations Total
$
$
$
7,043,597 7,043,597
4,897,035 4,897,035
7,043,597 7,043,597
4,897,035 4,897,035
1,223,660 1,223,660
1,368,161 1,368,161
1,223,660 1,223,660
1,368,161 1,368,161
-
Total
$
-11,940,63211,940,632
-11,940,63211,940,632
69,363
69,363
69,363
2,661,184 2,661,184
69,363
2,661,184 2,661,184
465,950 465,950
1,390,939 1,390,939 69,363
(318,715) (318,715)(132,580) (132,580)
147,235 147,235
1,258,359 1,258,359 69,363
69,363
1,926,252 1,926,252
- (451,295) (451,295)
69,363
1,474,957 1,474,957
(12,538) (12,538) (84,464)
(745,172) (745,172) 107,242
19
(84,464)
107,242
-
- (97,002) (97,002)
- (637,930) (637,930)
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES
THE
CONSOLIDATED
FINANCIAL STATEMENTS continued
MUNICATIONS
COMMUNICATIONS
(FIJI)TO
LIMITED
(FIJI)
LIMITED
and
Subsidiary
and Subsidiary
company
company
ES NOTES
TO THE
TO
CONSOLIDATED
THE
CONSOLIDATED
FINANCIAL
FINANCIAL
STATEMENTS
STATEMENTS
continued
continued
FOR
THE
YEAR
ENDED
31 DECEMBER
2014
THE
FOR
YEAR
THEENDED
YEAR ENDED
31 DECEMBER
31 DECEMBER
2014 2014
3. SEGMENT
INFORMATION
SEGMENT
3.
SEGMENT
INFORMATION
INFORMATION
continued
continued
continued
Year ended
Year
31ended
December
31 December
2014
2014
Assets and
Assets
liabilities
and liabilities
Segment Segment
assets assets
Investment
Investment
in associate
in associate
or joint venture
or joint venture
Total assets
Total assets
Segment Segment
liabilities liabilities
Total liabilities
Total liabilities
Other segment
Other information
segment information
Capital expenditure:
Capital expenditure:
- fixed
tangible
fixed assets
- tangible
assets
- intangible
- intangible
assets assets
Amortization
Amortization
of intangible
of intangible
assets assets
Depreciation
Depreciation
Doubtful and
Doubtful
bad debts
and bad debts
Cash flows
Cash flows
OperatingOperating
activities activities
Investing Investing
activities activities
Financing Financing
activities activities
Year ended
Year
31ended
December
31 December
2013
2013
Revenue Revenue
External sales
External sales
Result
Result
result
Segment Segment
result
Unallocated
Unallocated
expenses expenses
Profit from
Profit
operating
from operating
activities activities
Net finance
Netcosts
finance costs
Share of (loss)/profit
Share of (loss)/profit
of associate
of associate
or joint venture
or joint venture
PNG
$
PNG
$
Fiji
$
Fiji
$
Eliminations
Eliminations
$
$
Total
$
Total
$
5,797,961
5,797,961 7,497,466
7,497,466 (847,513)
(847,513)12,447,914
12,447,914
491,860 491,860 1,451,988
1,451,988
- 1,943,848
1,943,848
6,289,821
6,289,821 8,949,454
8,949,454 (847,513)
(847,513)14,391,762
14,391,762
1,335,687
1,335,687 2,363,681
2,363,681 (422,741)
(422,741) 3,276,627
3,276,627
1,335,687
1,335,687 2,363,681
2,363,681 (422,741)
(422,741) 3,276,627
3,276,627
336,614 336,614
8,518
8,518
8,309
8,309
421,101 421,101
6,583
6,583
627,906 627,906
40,169 40,169
465,132 465,132
402,089 402,089
(30,682) (30,682)
-
-
964,520 964,520
48,687 48,687
473,441 473,441
823,190 823,190
(24,099) (24,099)
1,269,129
1,269,129 1,236,861
1,236,861
(1,307,762)
(1,307,762) (423,906)
(423,906)
84,930 84,930 (898,811)
(898,811)
PNG
PNG
Restated Restated
$
$
Fiji
Fiji
$
$
Eliminations
Eliminations
7,763,084
7,763,084 4,431,703
4,431,703
7,763,084
7,763,084 4,431,703
4,431,703
1,467,975
1,467,975
1,467,975
1,467,975
$
$
-
Total
Total
$
$
- 12,194,787
12,194,787
- 12,194,787
12,194,787
960,048 960,048 (175,425)
(175,425) 2,252,598
2,252,598
960,048 960,048 (175,425)
(175,425) 2,252,598
2,252,598
(9,724) (9,724) (105,636)
(105,636)
(199,695)
(199,695) 111,906 111,906
-
-
(115,360)
(115,360)
(87,789) (87,789)
Profit before
Profit
income
beforetax
income tax
Income tax
Income
expense
tax expense
Net profitNet profit
1,258,556
1,258,556
(521,683)
(521,683)
736,873 736,873
Assets and
Assets
liabilities
and liabilities
Segment Segment
assets assets
Investment
Investment
in associate
in associate
or joint venture
or joint venture
Total assets
Total assets
6,359,423
6,359,423 7,109,412
7,109,412(1,304,116)
(1,304,116)12,164,719
12,164,719
251,433 251,433 1,444,746
1,444,746
- 1,696,179
1,696,179
6,610,856
6,610,856 8,554,158
8,554,158(1,304,116)
(1,304,116)13,860,898
13,860,898
Segment Segment
liabilities liabilities
Total liabilities
Total liabilities
1,510,807
1,510,807 2,870,944
2,870,944 (745,845)
(745,845) 3,635,906
3,635,906
1,510,807
1,510,807 2,870,944
2,870,944 (745,845)
(745,845) 3,635,906
3,635,906
20
966,318 966,318 (175,425)
(175,425) 2,049,449
2,049,449
(12,757) (12,757)
(534,440)
(534,440)
953,561 953,561 (175,425)
(175,425) 1,515,009
1,515,009
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
MMUNICATIONS
COMMUNICATIONS
(FIJI)TO
LIMITED
(FIJI)
LIMITED
and
Subsidiary
and Subsidiary
company
company
NOTES
THE
CONSOLIDATED
FINANCIAL STATEMENTS continued
TES
NOTES
TO
THE
TO
CONSOLIDATED
THE
CONSOLIDATED
FINANCIAL
FINANCIAL
STATEMENTS
STATEMENTS
continued
continued
MMUNICATIONS
COMMUNICATIONS
(FIJI)
LIMITED
(FIJI)and
LIMITED
Subsidiary
and
Subsidiary
company
company
FOR
THE
YEAR
ENDED
31
DECEMBER
2014
THE
FOR
YEAR
THEENDED
YEAR ENDED
31 DECEMBER
31 DECEMBER
2014 2014
TES TONOTES
THE CONSOLIDATED
TO THE CONSOLIDATED
FINANCIAL
FINANCIAL
STATEMENTS
STATEMENTS
continuedcontinued
THE YEAR
FOR THE
ENDED
YEAR
31ENDED
DECEMBER
31 DECEMBER
2014
2014
SEGMENT
3.
SEGMENT
INFORMATION
INFORMATION
continued
continued
3. SEGMENT
INFORMATION
continued
(a)
Geographical
segments
continued
(a) Geographical
Geographical
segments
segments
continued
continued
SEGMENT
3.(a)
INFORMATION
SEGMENT
INFORMATION
continued
continued
Year ended
Year
31
ended
December
31continued
December
2013
continued
2013
continued
(a) Geographical
(a)
Geographical
segments
segments
continued
Year ended 31
Year
December
ended 31
2013
December
continued
2013 continued
PNG
PNG
Restated Restated
PNG
$
$ PNG
Restated
Restated
$
$
Fiji
Fiji
Eliminations
Eliminations
Total
Total
Fiji
Eliminations
Total
$
$ Fiji Eliminations
$
$
$
$ Total
Other segment
Other segment
information
information
$
$
$
$
$
$
Capital expenditure:
Capital expenditure:
Other
segment
Other
information
segment
information
455,562 455,562
604,136 604,136
1,059,698
1,059,698
tangible
fixed assets
tangible
fixed
assets
Capital
expenditure:
Capital
expenditure:
intangible
intangible
assets
assets
57,500 57,500
44,075 44,075
101,575 101,575
455,562
455,562604,136
604,136
--1,059,698
1,059,698
-Amortization
tangible
-of
fixed
tangible
assets
fixed assets
Amortization
intangible
of intangible
assets
assets
2,519 2,519
70,436 70,436
72,955 72,955
-Depreciation
intangible
- assets
intangible assets
57,500 506,273
57,500477,786
44,075 477,786
44,075
-- 101,575
101,575
Depreciation
506,273
984,059 984,059
Amortization
of intangible
of
intangible assets
2,519 31,789
2,519 70,436
70,436
-- 72,955
72,955
Doubtful Doubtful
and Amortization
bad
debts
and bad assets
debts
31,789
50,000 50,000
81,789 81,789
Depreciation Depreciation
506,273
506,273477,786
477,786
- 984,059
984,059
Doubtful
and Doubtful
bad
debts
and
debts
31,789
31,789
50,000
50,000
- 81,789
81,789
Inter-segment
Inter-segment
revenues
revenues
arebad
eliminated
are eliminated
upon consolidation
upon consolidation
and reflected
and reflected
in the 'adjustments
in the 'adjustments
and
eliminations'
and eliminations'
column.
column. -
Inter-segment revenues are eliminated upon consolidation and reflected in the ‘adjustments and eliminations’ column.
Inter-segment
revenues
are revenues
eliminatedare
upon
eliminated
consolidation
upon consolidation
and reflectedand
in the
reflected
'adjustments
in the 'adjustments
and eliminations'
and column.
eliminations' column.
(b) Inter-segment
Business
(b) Business
segments
segments
(b) company
Business
segments
The company
The
and itssegments
subsidiary
and
its subsidiary
both operate
both predominantly
operate predominantly
in the commercial
in the commercial
radio services
radio services
industry. industry.
Revenue, Revenue,
expenditure
expenditure
and certain
and asset
certain asset
(b) Business
(b)
segments
Business
The
company
and its
subsidiary
operate
predominantly
in theand
commercial
radio
services
industry.
expenditure
andsegments
information
information
regarding
regarding
business
business
segments
segments
for both
the years
for
the
ended
years
31ended
December
31 December
2014
2014
2013and
are2013
the
same
are
the
as that
same
disclosed
as thatRevenue,
disclosed
for geographical
for
geographical
segments
The
company
The
andcompany
its subsidiary
and itsboth
subsidiary
operateboth
predominantly
operatesegments
predominantly
in the for
commercial
in years
the radio
commercial
services
industry.
services
Revenue,
industry.
Revenue,
expenditure
certainasasset
and
certain
asset
information
regarding
business
the
ended
31radio
December
2014
andexpenditure
2013
are and
the
same
thatcertain asset
above.
above.
informationdisclosed
regarding
information
business
regarding
segments
business
forsegments
the years
for
ended
the 31
years
December
ended 31
2014
December
and 2013
2014
areand
the2013
sameare
as that
the same
disclosed
as that
for disclosed
geographical
for geographical
segments
segments
for
geographical
segments
above.
above.
above.
REVENUE
4.
REVENUE
AND EXPENSES
AND EXPENSES
Group
Group
Holding Company
Holding Company
4. REVENUE AND EXPENSES
REVENUE
4.AND
REVENUE
EXPENSES
AND EXPENSES
2014
$
2014
Revenue, Revenue,
expensesexpenses
and finance
andcosts
finance
for costs
the year
for include
the yearthe
include
following:
the following:
$
2014
Group
$
2014
$
2013
2013
Group
$
$
2013
2013
$
$
2014
2014
2013
2013
Holding Company
Holding Company
$
$
$
$
2014
2014 2013
2013
$
$
$
$
Revenue,
expenses
Revenue,
expenses
finance costs
and finance
for the costs
year include
for the the
yearfollowing:
include the following:
4.1 Radio4.1
income
Radio and
income
Advertising
Advertising
income income
10,993,993
10,993,99310,535,151
10,535,151 4,481,615
4,481,615 3,937,565
3,937,565
4.1 Radio income
4.1 Radio income
Total Event
Total
Company
Event Company
Limited income
Limitedand
income
otherand
commercial
other commercial
946,639 946,639
1,659,636
1,659,636
415,420 415,420
494,138 494,138
Advertising income
10,993,993
10,993,993
10,535,151
10,535,151
4,481,615
4,481,615
3,937,565
3,937,565
Advertising income
income income
Total Event Company
Total Event
Limited
Company
income
Limited
and other
income
commercial
and other commercial
11,940,632
11,940,632
12,194,787
12,194,787
4,897,035
4,897,035
4,431,703
4,431,703
1,659,636
415,420
494,138
946,639
946,639
1,659,636
415,420
494,138
income
income
11,940,632 11,940,632
12,194,787 12,194,787
4,897,035 4,897,035
4,431,703 4,431,703
4.2 Other
4.2
revenue
Other revenue
Other income
Other income
612,671 612,671
291,978 291,978
337,872 337,872
218,839 218,839
4.2 Other revenue
4.2 Other revenue
Gain on disposal
Gain on of
disposal
assets of assets
9,597 9,597
18,101 18,101
9,597 9,597
3,913 3,913
Other incomeOther income
612,671
612,671291,978
291,978337,872
337,872218,839
218,839
Cinema advertising
Cinema advertising
661,293 661,293
926,977 926,977
661,293 661,293
510,530 510,530
Gain on disposal
Gainofon
assets
disposal of assets
9,597
9,597 18,101
18,101 9,597
9,597 3,913
3,913
Dividend income
Dividend income
159,719 159,719
Cinema advertising
661,293926,977
926,977661,293
661,293510,530
510,530
Cinema advertising
661,293
Management
Management
fees
fees
286,500 286,500
286,719 286,719
Dividend income
- 159,719
159,719
Dividend income
1,283,561
1,283,561 1,237,056
1,237,056 1,295,262
1,295,262 1,179,720
1,179,720
fees
- 286,500
286,500286,719
286,719
Management Management
fees
1,283,561 1,283,561
1,237,056 1,237,056
1,295,262 1,295,262
1,179,720 1,179,720
4.3 Salaries
4.3 and
Salaries
employee
and employee
benefits benefits
FNPF andFNPF
FNU levy
and FNU levy
295,393 295,393
175,878 175,878
168,061 168,061
305,286 305,286
4.3 employee
Salaries and
employee benefits
4.3 Salaries and
benefits
Salaries and
Salaries
wages
and wages
2,406,286 1,633,055
1,633,055 1,584,419
1,584,419
2,620,227
2,620,227 2,406,286
FNPF and FNUFNPF
levy and FNU levy
295,393175,878
175,878168,061
168,061
305,286
305,286295,393
Staff commission
Staff commission
and bonus
and bonus
337,053 337,053
234,316 234,316
120,709 120,709
485,801 485,801
2,406,286 2,406,286
1,633,055 1,633,055
1,584,419 1,584,419
Salaries and wages
Salaries and wages
2,620,227 2,620,227
Staff training
Staff training
64,961 64,961
407
407
13,187 13,187
36,338 36,338
Staffand
commission
337,053234,316
234,316120,709
120,709
Staff commission
bonus and bonus
485,801337,053
485,801
3,447,652
3,447,652 3,103,693
3,103,693 2,043,656
2,043,656 1,886,376
1,886,376
64,961
407 13,187
13,187
407
Staff training Staff training
36,338 64,961
36,338
3,447,652 3,447,652
3,103,693 3,103,693
2,043,656 2,043,656
1,886,376 1,886,376
4.4 Depreciation
4.4 Depreciation
and amortization
and amortization
Depreciation
Depreciation
984,059 984,059
402,089 402,089
477,786 477,786
823,190 823,190
4.4 and
Depreciation
and amortization
4.4 Depreciation
amortization
Amortization
Amortization
of intangibles
of intangibles
assets assets
72,955 72,955
73,159 73,159
70,436 70,436
81,653 81,653
Depreciation Depreciation
984,059402,089
402,089477,786
477,786
823,190
823,190984,059
904,843 904,843 1,057,014
1,057,014
475,248 475,248
548,222 548,222
intangibles assets
72,955 73,159
73,159 70,436
70,436
Amortization Amortization
of intangiblesof
assets
81,653
81,653 72,955
904,843
904,843
475,248548,222
548,222
1,057,014 1,057,014475,248
21
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES
TO THE(FIJI)
CONSOLIDATED
FINANCIAL STATEMENTS continued
COMMUNICATIONS
COMMUNICATIONS
(FIJI) LIMITED
and
LIMITED
Subsidiary
and Subsidiary
company company
THE
YEAR
ENDED
31
DECEMBER
2014
NOTES TOFOR
NOTES
THE CONSOLIDATED
TO THE
CONSOLIDATED
FINANCIALFINANCIAL
STATEMENTS
STATEMENTS
continued
continued
FOR THE YEAR
FOR THE
ENDED
YEAR
31 ENDED
DECEMBER
31 DECEMBER
2014
2014
COMMUNICATIONS
COMMUNICATIONS
(FIJI) LIMITED
(FIJI) LIMITED
and Subsidiary
and Subsidiary
company
company
.
REVENUE
REVENUE
EXPENSES
continued
EXPENSES FINANCIAL
continued
Group
Group
NOTES
NOTES
TO4.AND
THE
TO
CONSOLIDATED
THEAND
CONSOLIDATED
FINANCIAL
STATEMENTS
STATEMENTS
continued
continued
2014
2014 2013
FOR
THE
FOR
YEAR
THEENDED
YEAR (FIJI)
ENDED
31 DECEMBER
31 DECEMBER
2014
2014 company
COMMUNICATIONS
LIMITED
and
Subsidiary
$
$
$
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
4. 4.5
REVENUE
4.
REVENUE
AND
EXPENSES
AND
EXPENSES
continued
continued
Group
Group
4.5 Other expenses
FOR Other
THE expenses
YEAR
ENDED 31 DECEMBER 2014
Holding Company
Holding Company
2013 2014
$
$
2014 2013
$
$
2013
$
Holding Company
Holding Company
2014
2014
2013
2013
2014
2014
2013
2013
Auditors remuneration
audit fees
Auditors -remuneration
- audit fees
79,847
79,847
79,847
79,847
12,900
12,900
12,900
12,900
$21,849 $
$21,849 $
$ 1,750 $
$ 1,750 $
- other services
- other services
21,849
21,849
1,750
1,750
4.
REVENUE AND EXPENSES continued
Group
Holding Company
Bad debts
Bad debts
6,011
6,011
2014
2013
2014
2013
4.5 Other
4.5
expenses
Other expenses
Managing Director's
Managing
emoluments
Director's emoluments
185,000
185,000
185,000
185,00092,500
92,50092,500
92,500
Auditors Auditors
remuneration
remuneration
- audit fees
- audit fees
79,847
79,847
79,847
79,847
12,900
12,900
12,900
12,900
$
$
$
$
Directors’ feesDirectors’ fees
22,972
22,97227,355
27,35515,000
15,00018,688
18,688
- other services
- other services
21,849 21,849
21,849 21,849
1,750 1,750
1,750 1,750
4.5
Other debts
expenses
Doubtful
Doubtful debts
(24,099)
(24,099)
81,789
81,789
(30,682)
(30,682)
50,000
50,000
Bad debtsBad debts
6,011 6,011
Auditors
remuneration
- audit
fees
79,847 609,932
79,847 741,608
12,900 209,939
12,900 220,619
Operating
lease
Operating
rentals lease
rentals
609,932
741,608
209,939
220,619
ManagingManaging
Director'sDirector's
emoluments
emoluments
185,000 185,000
185,000 185,000
92,500 92,500
92,500 92,500
- other services
21,849 5,315,013
21,849 5,875,079
1,750 2,003,825
1,750 1,820,320
Other operating
Other
expenses
operating expenses
5,315,013
5,875,079
2,003,825
1,820,320
Directors’Directors’
fees
fees
22,972 22,972
27,355 27,355
15,000 15,000
18,688 18,688
Bad debts
6,011 7,018,538
6,210,514- 6,210,514
7,018,538
2,305,232- 2,305,232
2,216,777- 2,216,777
Doubtful Doubtful
debts
debts
(24,099)(24,099)
81,789 81,789
(30,682)(30,682)
50,000 50,000
Managing Director's emoluments
185,000
185,000
92,500
92,500
OperatingOperating
lease rentals
lease rentals
609,932 609,932
741,608 741,608
209,939 209,939
220,619 220,619
Directors’
fees
22,972
27,355
15,000
18,688
4.6 Finance
costs
4.6
Finance
costs
Other operating
Other operating
expensesexpenses
5,315,013
5,315,013 5,875,079
5,875,079 2,003,825
2,003,825 1,820,320
1,820,320
Doubtful
debts
(24,099)
81,789
(30,682)
50,000
Finance charges
payable
under payable
finance leases
Finance
charges
under finance leases
- 6,210,514 -7,018,538
687
- 2,305,232 -2,216,777
- 2,216,777 6,210,514
7,018,538 687
2,305,232
Operating
rentals
609,932
741,608 114,67384,464
209,939
220,619 105,636
Bank
loans andlease
Bank
overdrafts
loans and overdrafts
97,002
97,002
114,673
84,464
105,636
Other operating expenses
5,315,013
5,875,079 115,36084,464
2,003,825
1,820,320 105,636
97,002
97,002
84,464
115,360
105,636
4.6 Finance
4.6 costs
Finance costs
6,210,514
7,018,538
2,305,232
2,216,777
Finance charges
Financepayable
chargesunder
payable
finance
underleases
finance leases
687
687
4.7 Share
of loss/(profit)
4.7
of
ofloss/(profit)
associate
joint
associate
ventureor joint venture
Bank loans
Bank
andShare
loans
overdrafts
and
overdraftsorof
97,002 97,002
114,673 114,673
84,464 84,464
105,636 105,636
4.6
Finance
costs
Share
of profit
Share
from 231
of profit
Waimanu
from Rd
231Holdings
Waimanu
Limited
Rd Holdings Limited
(107,242)
(107,242)
(111,906)
(111,906)
(107,242)
(107,242)
(111,906)
(111,906)
97,002 97,002
115,360 115,360
84,464 84,464
105,636 105,636
Finance
charges
payable
underParadise
finance
leases
Share
of loss
from
Share
Paradise
of loss Cinemas
from
(PNG)Cinemas
Limited (PNG) Limited
745,172 745,172
199,695687 199,695
- - Bank loans and overdrafts
97,002 637,93087,789
114,673
84,464 (107,242)
105,636 (111,906)
637,930
87,789
(107,242)
(111,906)
4.7 Share
4.7
of loss/(profit)
Share of loss/(profit)
of associate
of associate
or joint venture
or joint venture
97,002
115,360
84,464
105,636
Share of profit
Share from
of profit
231from
Waimanu
231 Waimanu
Rd Holdings
Rd Limited
Holdings Limited
(107,242)
(107,242) (111,906)
(111,906) (107,242)
(107,242) (111,906)
(111,906)
$745,172 745,172
$
$199,695 199,695
$
$
$$
$.
INCOME
TAX
INCOME
5. of loss
Share
Share
from
ofTAX
loss
Paradise
from Cinemas
Paradise (PNG)
Cinemas
Limited
(PNG) Limited
4.7 Share
of loss/(profit)
5. INCOME
TAX of associate or joint venture
637,930 637,930
87,789 87,789 (107,242)
(107,242) (111,906)
(111,906)
The major
components
The
majorfrom
ofcomponents
income
tax expense
of income
fortax
the
expense
years
ended
for the31
years
December
ended 2014
31 (107,242)
December
and 2013
2014
are: and 2013
are:
Share
of profit
231 Waimanu
Rd Holdings
Limited
(111,906)
(107,242)
(111,906)
The major components of income tax expense for the years ended 31 December 2014 and 2013 are:
Share of loss from Paradise Cinemas (PNG) Limited
745,172
199,695
A reconciliationAbetween
reconciliation
tax expense
between
and
taxthe
expense
product
and
ofthe
accounting
product profit
of accounting
multiplied
profit
by Fiji's
multiplied
domestic
by Fiji's
tax rate
domestic
for thetax
years
rateended
for the31
years
December
ended 2014
31 December
and
2014 and
$ 637,930
$
$
$
$ (107,242)
$
$ (111,906)
$
5.
5. TAX
INCOME
INCOME TAX
87,789
2013 is as A
follows:
2013 is as follows:
reconciliation
between tax expense and the product of accounting profit multiplied by Fiji’s domestic tax rate for the years
The majorThe
components
major31
components
of incomeof2014
tax
income
expense
for
expense
the years
for the
ended
years
31ended
December
31 December
2014 and2014
2013and
are:2013 are:
December
andtax2013
Accountingended
profit
Accounting
before
income
profit before
tax
income
tax is as follows:
1,926,252
1,926,252
2,049,449
2,049,449
1,390,939
1,390,939
966,318
966,318
$
$
$
$
5.
INCOME TAX
A reconciliation
A reconciliation
between between
tax expense
tax and
expense
the product
and the of
product
accounting
of accounting
profit multiplied
profit multiplied
by Fiji's domestic
by Fiji's domestic
tax rate for
taxthe
rateyears
for the
ended
years
31ended
December
31 December
2014 and2014 and
Prima facie taxPrima
thereon
facie
at tax
thethereon
Fiji rate at
of the
10%Fiji
(2013:
rate of18.5%)
10% (2013: 18.5%)
2013
as
2013
follows:
is as follows:
Theismajor
components
of income tax expense for the years ended 31 December 2014 and 2013 are:
192,625
192,625
379,148
379,148
139,094
139,094
178,769
178,769
Accounting
profit
income
tax
Accounting
profit
before
income
taxthe product of accounting profit multiplied
1,926,252
1,926,252
2,049,449
2,049,449
1,390,939
966,318
A reconciliation
between
tax
expense
by
Fiji's235,288
domestic
tax rate
for167,699
the years
ended
31 December
2014
and
Effect
of higher
Effect
taxbefore
rates
of
higher
in
PNG
tax
rates
inand
PNG
235,288
167,699
- 1,390,939
- 966,318
asnon-deductible
follows:
Tax2013
effectisof
Tax
effect of non-deductible
items
items
9,829
9,829
119,546
119,546 9,829
9,829 5,791
5,791
Prima facie
Prima
tax facie
thereon
taxat
thereon
the Fijiat
rate
theofFiji10%
rate(2013:
of 10%18.5%)
(2013: 18.5%)
Share
of loss/(profit)
Share
ofloss/(profit)
associate
orof
joint
associate
ventureornon-deductible/nonjoint venture non-deductible/nonAccounting
profitof
before
income
tax
1,926,252
2,049,449
1,390,939
966,318
16,241
16,241
(10,724)
(10,724)
(20,703)
(20,703)
379,148
139,094
178,769
192,625
192,625
379,148
139,094
178,769
taxable
taxable
63,793
63,793
Effect of Effect
higher of
taxhigher
rates tax
in PNG
rates in PNG
235,288 235,288
167,699 167,699
Prima
facieEffect
taxinthereon
at the
of 10% (2013: 18.5%)
Effect
of change
Fiji
oftax
change
rate
in Fiji rate
tax rate
-(152,687)
(152,687) -(152,687)
(152,687)
Tax effect
Tax
of effect
non-deductible
of non-deductible
items
items
9,829 9,829
119,546 119,546
9,829 9,829
5,791 5,791
Other
Other
2,460
2,460 3,691
3,691 2,495
2,495 178,769
785
785
192,625
379,148
139,094
Share of loss/(profit)
Share of loss/(profit)
of associate
of associate
or joint venture
or jointnon-deductible/nonventure non-deductible/nonUnder/(over)
provision
Under/(over)
from
provision
prior
yearfrom prior year
(52,700)
(52,700)16,241
802 16,241 802(10,724)
(8,114)- (10,724)
(8,114)
802- (20,703)802
(20,703)
Effect
of
higher
tax
rates
in
PNG
235,288
167,699
taxable taxable
63,793 63,793
Tax effect of non-deductible items
9,829
119,546
9,829
5,791
Income
tax
attributable
Income
toattributable
operating
profit
to operating profit
451,295
451,295
534,440(152,687)
534,440
132,580
132,580
12,757(152,687)
12,757
Effect of
Effect
change
ofinchange
Fijitax
tax
in
rate
Fiji tax rate
(152,687)
(152,687)
Share of loss/(profit) of associate or joint venture non-deductible/nonOther
Other
2,460 2,460
3,691
2,495
785
785
16,241 3,691
(10,724)2,495
(20,703)
taxable
63,793
Under/(over)
Under/(over)
provision
provision
from
prior
from
yearprior
year
(52,700)
(52,700)
802
802
(8,114) (8,114)
802
802
(a)
Consolidated
(a) income
Consolidated
statement
income
statement
Effect of change in Fiji tax rate
(152,687)
(152,687)
Current
income
Current
tax:
income
tax:
Income
tax
Income
attributable
tax
attributable
to
operating
to
operating
profit
profit
451,295
451,295
534,440
534,440
132,580
132,580
12,757
12,757
Other
2,460
3,691
2,495
785
Current income
Current
tax charge
income
taxyear
charge
503,564
666,393802 666,393
126,464
136,950802 136,950
Under/(over)
provision
from
prior
(52,700) 503,564
(8,114) 126,464
Adjustments inAdjustments
respect of previous
in respect
year
of previous year
(a)Income
Consolidated
(a)
income statement
income
statement
taxConsolidated
attributable
to
operating
profit
Effect
of
change
Effect
in
tax
of
rate
change
in
tax
rate
Current income
Currenttax:
income tax:
Origination
andOrigination
reversal
oftax
and
temporary
reversaldifferences
of temporary differences
Current income
Current
tax
income
charge
charge
(a)
Consolidated
income
Income
tax expense
Income
taxstatement
expense
Adjustments
Adjustments
in respectinof
respect
previous
of year
previous year
Current income tax:
Effect
of Effect
change
ofinchange
taxcharge
rate
in tax rate
Current
income
tax
Origination
Origination
and reversal
and of
reversal
temporary
of temporary
differences
differences
Adjustments in respect of previous year
Income tax
Income
expense
tax expense
Effect of change in tax rate
Origination and reversal of temporary differences
Income tax expense
(52,700)
(52,700) 802
802(8,114)
(8,114) 802
802
451,295
534,440
132,580
12,757
-(152,687)
(152,687) -(152,687)
(152,687)
431 503,564 431
19,932 666,393
19,932
14,230 126,464
14,230
27,692 136,950
27,692
503,564
666,393
126,464
136,950
451,295
451,295
534,440
534,440
132,580
132,58012,757
12,757
(52,700)(52,700)
802
802
(8,114) (8,114)
802
802
503,564
431
431
(52,700)
451,295 451,295
431
451,295
22
(152,687)
(152,687)
666,393
19,932 19,932
802
534,440 534,440
(152,687)
19,932
534,440
126,464
14,230 14,230
(8,114)
132,580 132,580
14,230
132,580
(152,687)
(152,687)
136,950
27,692 27,692
802
12,757 12,757
(152,687)
27,692
12,757
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
COMMUNICATIONS
(FIJI)ENDED
LIMITED
and
company2014
COMMUNICATIONS
(FIJI)
LIMITED
and Subsidiary
company
FOR THE
YEAR
31Subsidiary
DECEMBER
NOTES
THE CONSOLIDATED
FINANCIAL
STATEMENTS continued
NOTES
TO
THE TO
CONSOLIDATED
FINANCIAL
STATEMENTS
COMMUNICATIONS
COMMUNICATIONS
(FIJI) LIMITED
(FIJI)
and
LIMITED
Subsidiary
and
Subsidiary
company continued
company
FOR
THE
YEAR
ENDED
31
DECEMBER
2014
FOR
THE
YEAR
ENDED
31
DECEMBER
2014
INCOME
NOTES TO5.
NOTES
THE
CONSOLIDATED
TOTAX
THE CONSOLIDATED
FINANCIALFINANCIAL
STATEMENTS
STATEMENTS
continued continued
FOR THE YEAR
FOR THE
ENDED
YEAR
31ENDED
DECEMBER
31 DECEMBER
2014
2014
5.
5.
Group
Holding Company
Group
Holding Company
2014
2013
2014
2013
2014
2013
2014
2013
Group
Company
Holding
INCOME TAX
5. continued
INCOME TAX continued
$
$
$
$
$Group
$ Holding $
$ Company
2014
2014 2013
2013 2014
2014 2013
2013
Deferred tax
(b) tax
(b) Deferred
$
$
$
$
$
$
$
$
Deferred
tax assets/liabilities
at 31 relates
December
relates
to the following:
Deferred tax
assets/liabilities
at 31 December
to the
following:
tax Deferred tax
(b) Deferred (b)
Deferred
assets/liabilities
Deferred
tax
assets/liabilities
at 31
December
at 31
relates
December
to the relates
following:
to the following:
Provision
fordebts
doubtful
debts
36,787
54,564
3,856
6,924
Provision tax
for
doubtful
36,787
54,564
3,856
6,924
Employee entitlements
47,468
40,733
7,081
6,461
Employee entitlements
47,468
40,733
7,081
6,461
Provision for
doubtful
Provisiondebts
for
doubtful
debts
36,787 (179,796)
36,787
54,564 (191,033)
54,564
3,856 (183,222)
3,856
6,924 (173,896)
6,924
Accelerated
depreciation
for taxand
purposes
Accelerated
depreciation
for
tax purposes
other and other
(179,796)
(191,033)
(183,222)
(173,896)
Employee entitlements
Employee entitlements
47,468
47,468 40,733
40,733 7,081
7,081 6,461
6,461
Nettax
deferred
Net deferred
liabilitytax liability
(95,541) (95,541) (95,736) (95,736)(172,285)(172,285)(160,511)(160,511)
Accelerated depreciation
Acceleratedfor
depreciation
tax purposes
for and
tax purposes
other
and other
(179,796) (179,796)
(191,033) (191,033)
(183,222) (183,222)
(173,896) (173,896)
5. TAX
INCOME
TAX continued
INCOME
continued
Net deferred
tax
Netliability
deferred
tax liability
Represented
on the
consolidated
balance
Represented
on the consolidated
balance sheet
as: sheet as:
(95,541)
Deferred
liability
Deferred
tax
liability
Represented
on
Represented
the tax
consolidated
on the balance
consolidated
sheetbalance
as:
sheet as:
(95,541) (95,541) (95,736) (95,736)(172,285)(172,285)(160,511)(160,511)
Deferred tax liability
Deferred tax liability
(95,541)
(95,736)
(95,736)
(172,285)
(172,285)
(160,511)
(160,511)
(95,541) (95,541) (95,736) (95,736)(172,285)(172,285)(160,511)(160,511)
(95,541)
(95,541)
(95,736)
(95,736)
(172,285) (172,285)
(160,511) (160,511)
(95,541)
$
$
(95,541)
(95,736)
$
$
(95,736)
(172,285)
(172,285)
(160,511)
(160,511)
6.
6. 6. PER
EARNINGS
EARNINGS
SHAREPER SHARE
EARNINGS
PER SHARE
6.
6. profit
EARNINGS
PER
EARNINGS
SHARE
PERafter
SHARE
Operating
Operating
afterprofit
income
taxincome tax
7.
Weighted
average
number
oftax
shares
outstanding
1,474,9573,558,000
1,474,957
1,515,0093,558,000
1,515,009
Operating
profit
Operating
after
income
profit
tax
after
income
Weighted
average
of shares
outstanding
3,558,000
3,558,000
Weighted average
number
of number
shares
outstanding
Basic
earnings
per
share
(cents)
41.45
42.58
Basic
earnings
per
share
(cents)
41.45
42.58
Basic earnings per share (cents)
3,558,000 3,558,000
3,558,000 3,558,000
Weighted average
Weighted
number
average
of shares
number
outstanding
of shares outstanding
41.45
41.45 42.58
42.58
Basic earningsBasic
per share
earnings
(cents)
per share (cents)
Basicper
share is calculated
by
the for
netthe
profit
forattributable
the year attributable
to
ordinary shareholders
by theaverage
weighted
average
Basic earnings
share isper
calculated
thedividing
net
profit
year
toyear
ordinary
shareholders
by the weighted
number
of number
shares of shares
Basicearnings
earnings
per
sharebyisdividing
calculated
by dividing
the
net
profit
for the
attributable
to ordinary
shareholders
by
the weighted
outstanding
outstanding
during the during
year. the year.
average
number
ofshare
shares
outstanding
during
the
year.
Basic earnings
Basic
per share
earnings
is calculated
per
by
is calculated
dividing
the
bynet
dividing
profit the
for net
the
profit
year attributable
for the yeartoattributable
ordinary shareholders
to ordinary by
shareholders
the weighted
by the
average
weighted
number
average
of shares
number of shares
There
arethe
noyear.
convertible
for the
group.
been no transaction
involving
ordinary
shares orordinary
potential
ordinary shares
There
are no
convertible
redeemable
preferencepreference
shares for shares
the group.
There
haveThere
been have
no transaction
involving ordinary
shares
or potential
shares
outstanding
during
outstanding
during theredeemable
year.
between
theno
reporting
date
and
date of
completion
of these
financial
statements.
between the
reporting
date
and the
date
ofthe
completion
of these financial
statements.
There
are
convertible
redeemable
preference
shares
for
the group.
There have been no transaction involving ordinary shares or
There are no convertible
There are no
redeemable
convertiblepreference
preference
for theshares
group.for
the have
group.
been
There
have
transaction
been noinvolving
ordinary
involving
shares
ordinary
or potential
sharesordinary
or potential
shares
ordinary shares
potential
ordinary
sharesredeemable
betweenshares
the
reporting
dateThere
and
the
date
ofnocompletion
oftransaction
these financial
statements.
between the reporting
between the
datereporting
and the date
date of
and
completion
the date of
ofcompletion
these financial
of these
statements.
financial statements.
$
$
$
$
7.
DIVIDENDS
PAID AND PROPOSED
$
$
$
$
DIVIDENDS
PAID AND PROPOSED
7.
8.
8.
Operating profit after income tax
Declared
paid
year:PROPOSED
Declared
and
paid
inand
year:
DIVIDENDS
7.
PAID
DIVIDENDS
AND
PROPOSED
PAIDinAND
Final
dividend
2013:
5 cents
Final dividend
for
2013: 5for
cents
(2012:
12 (2012:
cents) 12 cents)
Declared
and
paid
Declared
in2014:
year:
and 5paid
in year:
Interim
dividend
for
2014:
5 cents
(2013: 6 cents)
Interim dividend
for
cents
(2013:
6 cents)
Final
dividend
Final
for 2013:
dividend
5 cents
forand
2013:
(2012:
12 cents)
(2012: 12 cents)
Dividends
declared
paid5 cents
Dividends
declared
and
paid
Interim dividend
Interim
for 2014:
dividend
5 cents
for 2014:
(2013:
5 cents
6 cents)
(2013: 6 cents)
Declared
but not paid:
Declared but
not paid:
Dividends declared
Dividends
and paid
declared and paid
Interim
dividend
2013: 4 cents
Interim dividend
for
2013: 4for
cents
Declared but not
Declared
paid: but not paid:
Interim dividend
Interim
for 2013:
dividend
4 cents
for 2013: 4 cents
8.RECEIVABLES
TRADE RECEIVABLES
TRADE
$
$
$
$
1,474,957
1,515,009
1,474,957
1,515,009
$
$
$
$
$
$
$
$
177,900 177,900 426,960 426,960 177,900 177,900 426,960 426,960
177,900 177,900 213,480 213,480 177,900 177,900 213,480 213,480
177,900
177,900
426,960
426,960
177,900
177,900
426,960
426,960
355,800 355,800
640,440 640,440
355,800 355,800
640,440 640,440
177,900
177,900
213,480
213,480
177,900
177,900
213,480
213,480
355,800
355,800
640,440
640,440
355,800
355,800
640,440
640,440
142,320 142,320
142,320 142,320
$
-
$
- 142,320
$
$
142,320
$
-
$
- 142,320
$
$
142,320
TRADEreceivables
RECEIVABLES
8. Trade
TRADE
RECEIVABLES
receivables
Trade
Provision
fordebts
doubtful debts
Provision for
doubtful
Trade receivables
Trade receivables
Provision for doubtful
Provisiondebts
for doubtful debts
from
related entities
Receivable Receivable
from related
entities
$
$
$
$
$
$
$978,779
2,480,824
2,591,935
1,122,793
2,480,824
2,591,935
1,122,793
(148,329)(148,329)(228,042)(228,042) (38,560) (38,560) (69,242)
2,480,824
2,480,824
2,591,935
2,591,935
1,122,793
1,122,793
978,779
2,332,4952,332,495
2,363,8932,363,893
1,084,2331,084,233
909,537
(148,329) (148,329)
(228,042) (228,042)
(38,560)
(38,560)
(69,242)
370,573 370,573
299,473 299,473
431,569 431,569
429,309
2,332,495
2,332,495
2,363,893
2,363,893
1,084,233
1,084,233
909,537
Receivable from
Receivable
related entities
from related entities
2,703,068
2,663,366
1,515,802
1,338,846
370,5732,703,068
370,573
299,4732,663,366
299,473
431,5691,515,802
431,569
429,3091,338,846
429,309
2,703,068
For terms
and conditions
to related
party receivable,
24.
For terms and
conditions
relating to relating
related party
receivable,
refer Note refer
24. Note
2,703,068
2,663,366
2,663,366
1,515,802
1,515,802
1,338,846
$
978,779
(69,242)
978,779
909,537
(69,242)
429,309
909,537
1,338,846
Trade
receivables
are non-interest
bearing
and party
areon
generally
on
30-90
day
terms.
At 31 December
2014,
trade receivables
of at
thenominal
group at
nominal
Trade
receivables
are non-interest
and
are
generally
30-90
terms.Note
At 31
2014, trade
receivables
of the group
value
of value of
For terms
and
For
conditions
terms
and
relating
conditions
tobearing
related
relating
party
to receivable,
related
refer
receivable,
Noteday
24.
refer
24.December
(2013:
$228,042)
wereand
impaired
and fully
provided
for. Movements
thefor
provision
for impairment
of receivables
were as follows:
$148,329 $148,329
(2013:
$228,042)
were impaired
fully
provided
for.
Movements
in
the provision
impairment
of receivables
were as follows:
For terms
and conditions
relating
to
related
party
receivable,
refer
Notein 24.
Trade receivables
Trade
are
receivables
non-interest
arebearing
non-interest
and are
bearing
generally
and on
are30-90
generally
dayon
terms.
30-90
Atday
31 terms.
December
At 31
2014,
December
trade receivables
2014, trade
ofreceivables
the group at
of nominal
the group
value
at nominal
of
value of
$148,329 (2013:
$148,329
$228,042)
(2013:
were
$228,042)
impairedwere
and fully
impaired
provided
and fully
for. Movements
provided for.inMovements
the provision
in for
the impairment
provision for
ofimpairment
receivablesof
were
receivables
as follows:
were as follows:
Trade receivables are non-interest bearing and are generally on 30-90 day terms. At 31 December 2014, trade receivables of
the group at nominal value of $148,329 (2013: $228,042) were impaired and fully provided for. Movements in the provision for
impairment of receivables were as follows:
23
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
COMMUNICATIONS
COMMUNICATIONS
(FIJI) LIMITED
(FIJI)
and
LIMITED
Subsidiary
and Subsidiary
company company
COMMUNICATIONS
(FIJI)
LIMITED
and Subsidiary
company
FOR
THE
YEAR
ENDED
31
DECEMBER
2014
NOTES TO NOTES
THE CONSOLIDATED
TO THE CONSOLIDATED
FINANCIALFINANCIAL
STATEMENTS
STATEMENTS
continued
continued
NOTES
TOENDED
THE CONSOLIDATED
FINANCIAL
STATEMENTS
COMMUNICATIONS
(FIJI)
LIMITED2014
and Subsidiary
company continued
FOR THE YEAR
FOR THE
ENDED
YEAR
31
DECEMBER
31
DECEMBER
2014
FOR
THE
YEAR
ENDED
31
DECEMBER
2014
NOTES
TO
THE
CONSOLIDATED
FINANCIAL
STATEMENTS
continued
COMMUNICATIONS
COMMUNICATIONS
(FIJI)
(FIJI)
LIMITED
LIMITED
andand
Subsidiary
Subsidiary
company
company
TRADE
RECEIVABLES
continued
RECEIVABLES
continued
Group
Group
Holding
Holding Company
8.
4..
REVENUE
ANDTRADE
EXPENSES
continued
Group
Holding Company
Company
FOR
THE YEAR ENDED
31 DECEMBER
2014continued
NOTES
NOTES
TO TO
THETHE
CONSOLIDATED
CONSOLIDATED
FINANCIAL
FINANCIAL
STATEMENTS
STATEMENTS
continued
TRADE RECEIVABLES
continued
Group
8.
2014
2014 2013
2013 2014
2014 2013
2013
2014
2013
2014
2013Holding Company
COMMUNICATIONS
COMMUNICATIONS
(FIJI)
LIMITED
(FIJI)
and
LIMITED
Subsidiary
and Subsidiary
company company
FOR
FOR
THETHE
YEAR
YEAR
ENDED
ENDED
31
31
DECEMBER
DECEMBER
2014
2014
2014
2013
2014
2013
$
$
$
$
$
$
$ Holding Company
$
TRADE RECEIVABLES continued
Group
8.
NOTES TONOTES
THE CONSOLIDATED
TO THE CONSOLIDATED
FINANCIALFINANCIAL
STATEMENTS
STATEMENTS
continuedcontinued2014
$
$
$
$
2013
2014
2013
228,042Group
228,042
181,415
181,41569,242
69,24219,242
19,242
At
1 TRADE
January
At 1 January
COMMUNICATIONS
COMMUNICATIONS
(FIJI)
LIMITED
(FIJI)and
LIMITED
Subsidiary
and Subsidiary
company company
4.5
Other
expenses
TRADE
RECEIVABLES
RECEIVABLES
continued
continued
Group
Holding
Holding
Company
Company
8.
8.
FOR
THE
YEAR
FOR
THE
ENDED
YEAR
31
ENDED
DECEMBER
31
DECEMBER
2014
2014
$ 181,415
$ 1
69,242
1the
January
81,789
81,789
50,000
50,000
Charge
for theremuneration
year At
year fees
-$ 228,042
-$ 12,900
Auditors
- audit
79,847
79,847
12,900
NOTES
TO
NOTES
THECharge
CONSOLIDATED
TOforTHE
CONSOLIDATED
FINANCIALFINANCIAL
STATEMENTS
STATEMENTS
continued
continued 2013
2014
2014
2013
2014
2014
2013
2013
81,789
5
Charge for the year
(66,352)
(66,352)
(20,154)
(20,154)
Utilized
UtilizedAt
(30,682)
(30,682)
228,042
181,415
1
services
21,849
1,750
1,750
1 January- other
$ 21,849
$ Group
$
$
$ Holding
$
$69,242
$
TRADE
RECEIVABLES
TRADE
RECEIVABLES
continued
continued
Group
Company
Holding
Company
8. Translation
8.
FOR
THE YEAR
FOR
THE
ENDED
YEAR
31ENDED
DECEMBER
31
DECEMBER
2014
2014
(66,352)
(20,154)
Utilized
(13,361)
(13,361)
adjustment
Translation
adjustment
(15,008)
(15,008)
- (30,682)
-
81,789
5
Charge for the year
-Bad debts
6,011
2014
2014
2013
2013
2014
201438,560
2013
201369,242
(13,361)
Translation adjustment
(15,008)
-19,242
148,329
148,329
228,042
228,042
38,560
69,242
228,042
228,042
181,415
181,415
69,242
69,242
19,242
At
December
At 31 Utilized
December
At 31
1At
January
1 January
(66,352)
(20,154)
(30,682)
Managing
Director's
emoluments
185,000
185,000
92,500
92,500
TRADE
RECEIVABLES
TRADE
RECEIVABLES
continued
continued
Group
Holding
Company
8.
8. the
$
$
$228,042
$ Holding
$ 38,560
$
148,329
6
At
31 December
81,789
81,789$
50,000
Charge
Charge
for
for
year
the year
- Group
- $
-Company
(13,361)
(15,008)
- 50,000
Directors’ fees Translation adjustment
22,972
27,355
15,000
18,688
At
31
December,
At 31
theDecember,
ageing analysis
the ageing
of trade
analysis
receivables
of trade
forreceivables
the group is
for
asthe
follows:
group
is(66,352)
as follows:
2014
2014 2013
2013 2014
2014 2013 2013
(66,352)
(20,154)
(20,154)
Utilized
Utilized
(30,682)
(30,682)
148,329
228,042
38,560
6
At
31
December
228,042
228,042181,415
181,415(30,682)
69,242
69,24250,000
19,242
19,242
At 1Doubtful
January
At
1 January the ageing analysis of trade receivables for the group
At 31
December,
is as follows:
debts
81,789
At 31 December, the ageing analysis of trade receivables for$(24,099)
the group
is $as follows:
(13,361)
(13,361)
$(15,008)
$
$
$
Translation
Translation
adjustment
adjustment
(15,008)
- $
- $ 50,000
81,789
81,789
50,000
Charge
for the
Charge
year rentals
for the year
- Past due but
- 741,608
- 220,619
not
Past
impaired
due but not
impaired
Operating
lease
609,932
209,939
148,329
148,329
228,042
228,042
38,560
38,560
69,242
69,242
At 31
AtDecember
31 DecemberAt 31 December, the ageing analysis of trade receivables for the
group is as228,042
follows:
(66,352)
(66,352)
(20,154)
(20,154)
Utilized
Utilized
(30,682)
Past due
but
not
impaired (30,682)
228,042
181,415
181,415
69,242
69,242 19,242
19,242
At
1 Other
January
At
1 January
operating
expenses Total
2,003,825
Total
< 30 days
< 30 30
days
- 5,315,013
60(13,361)
days 30 - 60
60
days
- 5,875,079
90(15,008)
days 60 - 90
days
> 90
days - > 90 days 1,820,320
(13,361)
Translation
adjustment
Translation
adjustment
(15,008)
81,789
81,789
50,000
50,000
Charge
for the
Charge
year for the
year
6,210,514
2,216,777
not
impaired 158,724
At 31
AtDecember,
31 December,
the ageing
the ageing
analysis
analysis
of trade
of trade
receivables
receivables
for
the
for group
the group
is1,455,707
asisfollows:
follows:
Total
<as
30
days
30 - 7,018,538
60
days Past due
60but
- 2,305,232
90
days
> 90
days
1,455,707
547,500
547,500
170,564
170,564
158,724
2,332,495
148,329
148,329
228,042
228,042
38,560
38,560
69,242
69,242
At 31 December
At 312014
December 2014 2,332,495
(66,352)
(66,352)
(20,154)
(20,154)
Utilized
Utilized
(30,682)
(30,682)
2014
2,332,495 1,803,871
1,455,707
170,564
158,724
2013 adjustment
2013 2,363,893
319,012
319,012
96,895
96,895
144,115
2,363,893
Total1,803,871
< 30
days
30
-due
60547,500
days
60
- 90144,115
days> 90
(13,361)PastPast
(13,361)
Translation adjustment
Translation
(15,008)
(15,008)
- days due
but
not
but
impaired
not impaired
4.6
Finance
costs
2013
1,803,871
319,012
96,895
144,115
2,363,893
At
31
December,
At
31
the
December,
ageing
analysis
the
ageing
of
trade
analysis
receivables
of
trade
for
receivables
the
group
for
is
as
the
follows:
group
is
as
follows:
148,329
148,329
228,042
228,042
38,560
38,560
69,242
69,242
At 31 December
At 31 December
2014
1,455,707
547,500
170,564
158,724
2,332,495
At 31Finance
December,
At
31
the
December,
ageing
analysis
the
ageing
of
trade
analysis
receivables
of
trade
for
receivables
the
company
for
is
the
as
company
follows:
is
as
follows:
Total
Total leases
< 30<days
30 days
30 -30
60-days
60- days
60 -60
90-days
90687
days
> 90>days
90 days
charges payable under
finance
2013
319,012
96,895
144,115
2,363,893
At 31 December, the
ageing analysis of
trade receivables 1,803,871
for the company
is asbut
follows:
Past due
Past
not 170,564
impaired
due but not impaired
2014
2014
1,455,707
1,455,707
547,500
170,564
158,724
158,724
2,332,495
Bank
and
overdrafts
97,002
84,464
105,636
Atloans
31AtDecember,
the
ageing
analysis
ofoftrade
receivables
forasthe
the
company
is asdue
follows:
At 31
December,
31
the
December,
ageing
analysis
the
ageing
of2,332,495
trade
analysis
receivables
tradefor
receivables
the
group for
is
follows:
group
is547,500
as follows:
Past
but 114,673
not
Past
impaired
due but not impaired
At 2013
31 December,
ageing
analysis< of
trade
receivables
the
company
is 60
as follows:
2013
1,803,871
1,803,871
319,012
319,012
96,895
144,115
2,363,893
2,363,893
97,002
115,360
84,464
not
impaired
Totalthe
Total
30
days
< 30 days
30for
- 60
days
30 - 60
days
- 90
days96,895
60Past
- 90due
days
>but
90 144,115
days
> 90 days 105,636
Past
due
but
Past
impaired
due
not
Total
Total
< 30 days
< 30 30
days
- 60 days 30
- 60
60
days
- 90not
days
60but
- 90
days
> impaired
90 days
> 90 days
2014
2014
1,455,707
1,455,707
547,500
547,500170,564
170,564
158,724
158,724
2,332,495
2,332,495
Past
due
but
not
impaired
At 31
AtDecember,
31 December,
the
ageing
the
ageing
analysis
analysis
of
trade
of
trade
receivables
receivables
for
the
for
company
the
company
is
as
is
follows:
as
follows:
Total 657,472
< 30295,651
days
30 - 60
days
60 - 9017,424
days
> 90 days
2014
2014 1,084,233
657,472
295,651
113,686
113,686
17,424
1,084,233
Total or
< 30
days
< 30
days
30 - 60319,012
days 30 - 60
60
days
- 90 96,895
days 60 - 90 96,895
days
> 90 144,115
days
> 90 144,115
days
2013 of associate
2013
1,803,871
1,803,871
319,012
2,363,893
2,363,893
4.7 Share of loss/(profit)
joint Total
venture
2014
657,472
295,651
113,686
17,424
1,084,233
2013
2013 909,537
524,366
524,366
243,765
243,765
56,572
56,572
84,834
84,834
909,537
Total
<
30
days
30
60
days
60
90
days
>
90 (111,906)
days
Past
Past
due
due
but
not
but
impaired
not
impaired
2014 2,332,495
1,455,707 1,455,707
547,500
547,500
170,564
170,564
158,724
158,724
2,332,495
Share of profit2014
from 231 Waimanu
Rd Holdings Limited
(107,242)
(111,906)
(107,242)
2013
524,366
243,765
56,572
84,834
909,537
At 31 December,
At 31
the
December,
ageing analysis
the ageing
of2014
trade
analysis
receivables
of tradefor
receivables
the
company
for
the
is
as
company
follows:
is
as
follows:
657,472
295,651
113,686
1,084,233 1,803,871
2013Paradise 2013
1,803,871
319,012
319,012
144,11517,424
2,363,893
2,363,893
Share of loss from
Cinemas
(PNG) Limited
745,172
199,695
TotalTotal
< 30
<days
30 days
30 -30
60
-days
60 days $
60 -60
90
-96,895
days
90 days $ 96,895
> 90$
>144,115
days
90 days
CASH AND
CASH
EQUIVALENTS
AND CASH EQUIVALENTS
$
$
$
$ 84,834
$
9. CASH
.
2013
524,366
243,765
56,572
909,537
Past due but Past
not
impaired
due but not impaired
637,930
87,789
(107,242)
(111,906)
2014
2014
657,472
295,651
295,651
113,686
17,424
1,084,233
1,084,233
CASH
AND
CASH
$ 17,424
$
$
At 31 December,
At 9.
31
the
December,
ageing
analysis
the
ageing
ofEQUIVALENTS
trade
analysis
receivables
of tradefor
receivables
the 657,472
company
for the
is ascompany
follows:
is as follows: $113,686
2013
2013
524,366
524,366
243,765
243,765
56,572
56,572
84,834
84,834
909,537
909,537
Total
Total
<
30
days
<
30
days
30
60
days
30
60
60
days
90
days
60
90
days
>
90
days
>
90
days
CASH
AND
CASH
$the
$
$
$
9. For
Past
due
but
not
Past
impaired
due butat
not
impaired
(a) For 9.
the purpose
(a)
ofthe
theCASH
purpose
consolidated
of EQUIVALENTS
theStatement
consolidated
of Cash
Statement
Flows, of
cash
Cash
and
Flows,
cash cash
equivalents
and cash
comprise
equivalents
following
comprise
the
31following
December:
at 31 December:
AND
EQUIVALENTS
$295,651
$113,686
$ 17,424
$
5.
INCOME TAXCASH 2014
2014
657,472
657,472
295,651
113,686
17,424
1,084,233 1,084,233
(a) For the purpose of the consolidated Statement of Cash Flows, cash and cash equivalents comprise the following at 31 December:
CASH
ANDAND
CASH
CASH
EQUIVALENTS
EQUIVALENTS
$243,765
$ 30 - 60
$ 56,572
$ 60 - 90 56,572
$
$ $
9. 9.CASH
Total
Total 909,537
< 30524,366
days
< 30524,366
days
30 - 60
days
60
days
- 90
days
days
> 90$days
2013
243,765
84,834
84,834
909,537
379,585
379,585
325,776
325,776
450> 90 days
450 450
450
Cash at
bank Cash
atincome
bank 2013
The major
components
of
tax expense
for
the years ended
31 December
and 2013
are: equivalents
(a)
For
theat
purpose
of the
consolidated
Statement
Cash 2014
Flows,
and
cash
comprise
the
following at
31
2014
2014
657,472
295,651
295,651
113,686
113,686
17,424
1,084,233
1,084,233
379,585comprise
325,776
450
Cash
bank
For the
purpose
the
consolidated
Statement
of Cashof657,472
Flows,
cash cash
and cash
equivalents
the
following
at17,424
31December:
December:
(189,567)
(189,567)
(189,567)
(189,567)
(103,711)
(103,711)
(103,711)
(103,711)
Bank(a)
overdraft
Bank
(Note
overdraft
19) of
(Note
19)
reconciliation
between
tax
expense
the product
of accounting
profit524,366
multiplied
by Fiji's domestic
tax
rate for the
years
31 December
and $
2013
2013and909,537
524,366
243,765
56,572
56,572
84,834
84,834
CASH
AND
CASH
EQUIVALENTS
AND
CASH
EQUIVALENTS
$
$243,765
$
$at
$ended
$2014
9. A
9.
(189,567)
(189,567)
(103,711)
(10
Bank
overdraft
(Note
19) of909,537
190,018
190,018
222,065
222,065
(189,117)
(189,117)
(103,261)
(103,261)
(a)
(a)
For
the
ForCASH
purpose
the
purpose
of the
of
consolidated
theat
consolidated
Statement
Statement
Cash
of Cash
Flows,
Flows,
cashcash
and and
cashcash
equivalents
equivalents
comprise
comprise
the
following
the following
31
atDecember:
31
December:$
379,585
325,776
450
Cash
bank
2013 is as follows:
190,018
222,065
(189,117)
(10
(189,567)
(189,567)
(103,711)
(10
Bank overdraft (Note 19)
atAND
bank
earns
Cash
at
interest
bank
earns
at EQUIVALENTS
floating
interest
rates
at based
floating
onrates
dailybased
bank deposit
on dailyrates.
bank deposit
Short-term
rates.
deposits
Short-term
are
made
deposits
for varying
are
periods
of between
periods
one
of day
between
and450
one
379,585
325,776
450
450$
450
at
bank
Cash
at bank
CASHCash
CASH
CASH
EQUIVALENTS
AND
CASH
$379,585
$
$325,776
$ made
$ for varying
$
$ day and
9. Cash
9.
Accounting
before
income
tax
1,926,252
2,049,449
1,390,939
966,318
190,018
222,065
(189,117)
(10
(a) For
theprofit
purpose
(a)
For
of
the
the
purpose
of
the
consolidated
Statement
Statement
Cash
Flows,
ofbased
cash
Cash
Flows,
cash
cash
equivalents
and
cash
equivalents
the
comprise
following
the
at
31
following
December:
atdeposit
31
Cash
atconsolidated
bank
earns
at of
floating
rates
on
daily
bank
deposit
rates. Short-term
deposits
are
made
for December:
varying
of between one
three
months,
three
depending
months,
on
the
depending
immediate
oninterest
the
requirements
immediate
of
requirements
the
group,
and
ofand
the
earn
group,
interest
and
atearn
thecomprise
interest
respective
at
the
short-term
respective
deposit
short-term
rates.
rates.periods
(189,567)
(189,567)
(189,567)
(189,567)
(103,711)
(103,711)
(103,711)
(103,711)
Bank
Bank
overdraft
overdraft
(Note
(Note
19)
19)
three
months,
depending
on
the
immediate
requirements
of
the
group,
and
earn
interest
at
the
respective
short-term
deposit
rates.
PrimaCash
facieat
tax
thereon
at at
thebank
Fiji rate
of interest
10% (2013:
18.5%)
190,018
190,018
222,065
222,065
(189,117)
(189,117)
(103,261)
(103,261)
Cash
earns
at floating
rates based on daily bank
deposit rates.
Short-term
deposits
are
made
for varying 450
periods
of between one
379,585
379,585
325,776
325,776
450
450
450d
bank
Cash
at
bank
(a) For the purpose
(a) Forof
the
the
purpose
consolidated
of the Statement
consolidated
of Statement
Cash Flows,ofcash
Cashand
Flows,
cashcash
equivalents
and cashcomprise
equivalents
the comprise
following the
at 31
following
December:
at 31 December:
three
months,
depending
on the
immediate
requirements
the
group,
and
earn borrowing
interest
at facilities
theborrowing
respective
short-term
deposit
rates.
192,625
379,148
139,094
178,769
(189,567)
(189,567)
(189,567)
(189,567)
At 31Bank
December
At 31
2014,
December
the
2014,
hadthe
available
group
$Nil
had
available
(2013: $200,000)
$Nil (2013:
ofof
$200,000)
undrawn
committed
of
undrawn
committed
in respect
facilities
of in
which
respect
all conditions
of which all(103,711)
conditions
(103,711)
(103,711)
(103,711)
overdraft
Bank
(Note
overdraft
19)group
(Note
19)
CashCash
at bank
at bank
earns
earns
interest
interest
at floating
at floating
ratesrates
based
based
on daily
on daily
bankbank
deposit
deposit
rates.
rates.
Short-term
Short-term
deposits
deposits
are made
are made
for varying
for varying
periods
periods
of between
of between
one one
day day
and and
Atathad
31
December
$200,000)
of undrawn
committed
borrowing
in
respect
all
co
Effect
of higher
tax
rates
in
PNG
235,288
167,699
- facilities
- of which
precedent
had
precedent
been
met.
been met. 2014, the group had available $Nil (2013:
379,585
379,585
325,776
325,776
450
450
450
450
190,018
190,018
222,065
222,065
(189,117)
(189,117)
(103,261)
Cash
at
bank
Cash
bank
Cash
at
bank
earns
interest
at floating
rates of
based
ongroup,
daily
deposit
Short-term
deposits
are
made
for varying
periods
of (103,261)
three
three
months,
months,
depending
depending
on the
on
immediate
the immediate
requirements
requirements
the
of group,
the
and bank
and
earnearn
interest
interest
atrates.
the
at respective
the
respective
short-term
short-term
deposit
deposit
rates.
rates.
precedent
had
been
met.
Tax effect
of non-deductible
items
9,829
119,546
9,829
5,791
(189,567)
(189,567)
(189,567)
(189,567)
(103,711)
(103,711)
(103,711)
(103,711)
Bank overdraft
Bank
(Note
overdraft
19)
(Note
19)
At 31
December
2014,
the group
had available
$Nil
(2013: $200,000)
of undrawn
committed
borrowing
facilities
in respect
of which all con
between
day
and
three
months,
depending
onon
the
immediate
requirements
ofarethe
group,
and
earn
at the
respective
Cash at
Cash
earnsone
atinterest
bank
earns
at
floating
interest
rates
at
floating
based
on
rates
daily
based
bank
deposit
daily
bank
rates.deposit
Short-term
rates.deposits
Short-term
made
deposits
for are
varying
made
periods
forinterest
varying
of between
periods
one
of
between
day and one
day and
Share
of bank
loss/(profit)
of
associate
or joint
venture
non-deductible/non190,018
222,065
(189,117)
(189,117)
(103,261)
Group 190,018222,065
Group
Holding Company
Holding
Company (103,261)
0. INVENTORIES
10.
INVENTORIES
precedent
had been met.
16,241
(10,724)
(20,703)
short-term
deposit
rates.
three
months,
three
depending
months,
on
depending
the
immediate
on
the
requirements
immediate
requirements
of
the
group,
of
and
the
earn
group,
interest
and
earn
at
the
interest
respective
at
the
short-term
respective
deposit
short-term
rates.
deposit
rates.
taxable
At 31
At December
31 December
2014,
the the
group
group
had had
available
available
$Nil $Nil
(2013:
(2013:
$200,000)
$200,000)
of undrawn
of 63,793
undrawn
committed
committed
borrowing
borrowing
facilities
facilities
in respect
in respect
of which
of which
all conditions
all
conditions
Group
Holding
Company
10.2014,
INVENTORIES
2014
2014 2013
2013 2014
2014 2013
2013
precedent
precedent
had
had
been
been
met.
met.
Cash
at
Cash
earns
interest
bank
earns
at floating
interest
rates
at floating
based on
rates
dailybased
bank on
deposit
daily bank
rates.deposit
Short-term
Short-term
are
made
deposits
for are
varying
made
periods
for varying
periods2014
one
of
between
day and one day2013
and
Effect
ofbank
change
in at
Fiji
tax
rate
-rates.deposits
(152,687)
- of between
(152,687)
2014
2013
$
$
$
$
$
$
$
$
Group
Holding
Company
10.
INVENTORIES
At
31
December
2014,
the
group
had
available
$Nil
(2013:
$200,000)
of
undrawn
committed
borrowing
facilities
in
respect
of
which
three months,three
depending
months,
on depending
the immediate
on the
requirements
immediate requirements
of the group, of
and
the
earn
group,
interest
and at
earn
theinterest
respective
at the
short-term
respective
deposit
short-term
rates.
deposit rates.
Other
2,460
3,691
2,495
785 all conditions
$
$
$
$
At 31 December
At 312014,
December
the group
2014,had
theavailable
group had
$Nilavailable
(2013: $200,000)
$Nil (2013: of
$200,000)
undrawn
committed
of undrawn
borrowing
committed
facilities
borrowing
in
respect
facilities
of
in
which
respect
all
conditions
of
which
201438,920
2013 4,734
2014 7,343
2013
all had
conditions
precedent
had
been
met.
Total
Event
Company
Total
Limited
Company
merchandise
Limited
merchandise
38,279Group
38,279
38,920
4,734
7,343
Under/(over)
provision
from
prior
year
(52,700)
802
(8,114)
802
Group
Holding
Holding
Company
Company
10. 10.
INVENTORIES
INVENTORIES
precedent
precedent
beenEvent
met.
had
been
met.
$ 38,279
$ 38,920
$ 4,734
$
Total Event Company Limited merchandise
2014
2014 committed
2013
2013 facilities
2014 ofinwhich
2013
2013
At 31
December
31
2014,
December
group
2014,
had
the
available
group
had
$Nil
(2013:
$200,000)
$Nil
(2013:
of$200,000)
undrawn
undrawn
borrowing
committed
borrowing
in2014
respect
facilities
respect
all
conditions
of12,757
which all conditions
Income
tax attributable
tothe
operating
profit
451,295
534,440
132,580
The
amount
ofAt
The
write-down
amount
of write-down
inventories
recognized
of
inventories
as available
an
recognized
expense
as
was
an$Nil
expense
(2013:
was
$Nil).
$Nil of
(2013:
$Nil).
Event
Limited
38,279
$ $ was
$
$
$38,920
$
$ 4,734
$
been Total
met.
beenCompany
met.
Group
Group
Holding
Company
Holding
Company
10. precedent
INVENTORIES
10.hadprecedent
INVENTORIES
Thehad
amount
of
write-down
ofmerchandise
inventories recognized as an expense
$Nil (2013:
$Nil).
2014
2014
2013
2013
2014
2014
2013
2013
1. PREPAYMENTS
11.
PREPAYMENTS
AND
OTHER
ASSETS
AND
ASSETS
$ 38,279
$ $Nil).
$ 4,734
$ 7,343
$
TotalTotal
Event
Event
Company
Company
Limited
Limited
merchandise
merchandise
38,279
38,920
38,920 $
4,734 $
7,343
(a)
Consolidated
income
statement
The
amount
ofOTHER
write-down
of inventories recognized as an expense
was $Nil$ (2013:
11.
PREPAYMENTS
AND
OTHER
ASSETS
Group
Group
Holding
Company
Holding
Company
10. INVENTORIES
10.
INVENTORIES
$
$
$
$
$
$
$
$
$
$
$
$
Current income tax:
The The
amount
amount
ofCurrent
write-down
of write-down
of inventories
of inventories
recognized
recognized
as an
asexpense
an expense
was was
$Nil $Nil
(2013:
(2013:
$Nil).
$Nil).
2014
2014 2013
2013 2014
2014 2013
2013
Current
Current
income
tax
charge
11.
PREPAYMENTS
AND
OTHER
ASSETS
503,564
666,393
126,464
136,950
$
$
$
$
Total Event Company
Total Event
Limited
Company
merchandise
Limited merchandise
38,279
38,279 38,920
38,920 4,734
4,734 7,343
7,343
Current
$
$146,747
$
$138,044
$ 47,515
$ 47,515
$ 46,395
$ 46,395
Refundable
deposits
Refundable
deposits
146,747
138,044
Adjustments
in respect
of previous year
(52,700)
802
(8,114)
802
11. 11.
PREPAYMENTS
PREPAYMENTS
AND
AND
OTHER
OTHER
ASSETS
ASSETS
$
$
$
$
$
$
$
$
Refundable
depositsofrecognized
146,747
138,044
47,515
The amount of
The
write-down
amount
ofofwrite-down
inventories
inventoriesasrecognized
an expenseaswas
an expense
$Nil (2013:
was
$Nil).
$Nil (2013:
$Nil).154,184
Prepayments
Prepayments
101,517
101,517
154,184
30,592
30,59229,682
29,6824
Current
TotalEffect
Eventof
Company
Total
Event
Limited
Company
merchandise
Limited merchandise
38,279
38,279
38,920
38,920 4,734
4,734
7,343
7,343
change
in
tax
rate
(152,687)
(152,687)
Prepayments
101,517
154,184
30,592
2
Other receivables
Other receivables
138,270
138,270
199,460
199,460
2,286
2,286
2,850
2,850
The
amount
of
write-down
of
inventories
recognized
as
an
expense
was
$Nil
(2013:
$Nil).
Refundable
deposits
146,747
138,044
47,515
4
Origination and reversal of temporary differences
431
19,932
14,230
27,692
Current
Current
Otherofof
receivables
138,270
199,460
2,286
11.
PREPAYMENTS
11. The
PREPAYMENTS
AND
OTHER
ASSETS
AND
OTHER
ASSETS
amount
of
The
write-down
amount
write-down
inventories
of
recognized
inventories
as
recognized
an
expense
as
was
an
$Nil
expense
(2013:
was
$Nil).
$Nil
(2013:
$Nil).
$
$
$
$
$
$
$
$
Prepayments
101,517
154,184
30,592
2
451,295
534,440
132,580
12,757
386,534
386,534
491,688
491,688
80,393
80,393
78,927
78,927
Income tax expense
Refundable
Refundable
deposits
deposits
146,747
146,747
138,044
138,044
47,515
47,515
46,395
46,395
386,534
491,688
80,393
7
Other receivables
138,270
199,460
2,286
Prepayments
Prepayments
101,517$
154,184$
30,592$
29,682$
Current
Current
11. PREPAYMENTS
11. PREPAYMENTS
AND OTHER ASSETS
AND OTHER ASSETS
$101,517
$154,184
$ 30,592
$ 29,682
386,534
491,688
80,393
7
Other
Other
receivables
receivables
138,270
138,270
199,460
199,460
2,286
2,286
2,850
2,850
Refundable deposits
Refundable deposits
146,747
146,747138,044
138,044 47,515
47,515 46,395
46,395
Current
Current
386,534
386,534 101,517491,688
491,688 154,184 80,393
80,393 30,592 78,927
78,927 29,682
Prepayments Prepayments
101,517
154,184
30,592
29,682
Other receivables
Other receivables
138,270
138,270138,044
199,460
199,460 47,515
2,286
2,286 46,395
2,850
2,850
Refundable
deposits
Refundable
deposits
146,747
146,747
138,044
47,515
46,395
Prepayments Prepayments
Other receivables
Other receivables
101,517
386,534
138,270
101,517
386,534154,184
491,688
138,270199,460
154,184
491,688 30,592
80,393
199,460 2,286
30,592
80,393 29,682
78,927
2,286 2,850
29,682
78,927
2,850
386,534
386,534491,688
491,688 80,393
80,393 78,927
78,927
24
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES
TO LIMITED
THE
CONSOLIDATED
FINANCIAL
STATEMENTS continued
COMMUNICATIONS
COMMUNICATIONS
(FIJI)
(FIJI)
and
LIMITED
Subsidiary
and Subsidiary
company
company
NOTES TOFOR
NOTES
THE CONSOLIDATED
TO
THE
CONSOLIDATED
FINANCIAL
FINANCIAL
STATEMENTS
STATEMENTS
continued
continued
THE
YEAR
ENDED
31
DECEMBER
2014
COMMUNICATIONS
(FIJI)
LIMITED
and Subsidiary
company
FOR THE
FOR
ENDED
YEAR
31ENDED
DECEMBER
31 DECEMBER
2014STATEMENTS
2014
NOTES
TOYEAR
THE THE
CONSOLIDATED
FINANCIAL
continued
COMMUNICATIONS
COMMUNICATIONS
(FIJI)
(FIJI)
LIMITED
LIMITED
and
and
Subsidiary
Subsidiary
company
company
OR THE YEAR ENDED 31 DECEMBER 2014
Group
12. INVESTMENT
12. INVESTMENT
IN subsidiary IN subsidiary
NOTES
NOTES
TO TO
THETHE
CONSOLIDATED
CONSOLIDATED
FINANCIAL
FINANCIAL
STATEMENTS
STATEMENTS
continued
continued
2014
2014
Group $
2. FOR
INVESTMENT
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FOR
THETHE
YEAR
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ENDED
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31 31
DECEMBER
DECEMBER
2014
2014
Shares
in subsidiary
companies:
in subsidiary
companies:
$
Group
Holding Company
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2013
2013 2014
2014 2013
2013
$
$
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$
$
$
2014
2013
2014
2013
- Total Event
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2
2
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$
$
$
- INVESTMENT
PNG
FM IN
Pty
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FM(FIJI)
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-1,725,115
1,725,115
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COMMUNICATIONS
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andand
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2. 12.
INVESTMENT
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2
2
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2014
20142013
2014
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2013
2013
NOTES
NOTES
TO FM
THE
TOPtyTHE
CONSOLIDATED
CONSOLIDATED
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STATEMENTS
STATEMENTS
continued
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1,725,115
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Shares
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FORFOR
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31
2014
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- FM PtyofLimited
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1,725,115
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13. INVESTMENT
2014
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13. INVESTMENT
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IN ASSOCIATEINOR
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20132013
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3. INVESTMENT
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1,725,117
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3. 13.
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231 Waimanu
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231
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company
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Summarized
financial
information
of 231
Waimanu
Rd
Limited, based on its IFRS financial statements,
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Current
assets,
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including
assets,
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and
cashcash
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andHoldings
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347,610 and
347,610
352,756
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investment
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in 231
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231
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method.
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financial
information
information
of 231
of 231
Waimanu
Waimanu
Rd
Holdings
Rd Holdings
Non-current
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2,876,403
2,876,403
2,859,620
2,859,620
with
the
carrying
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of
the
investment
are
set
out
below:
3. 13.
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INon
ASSOCIATE
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of investment
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are set
are out
set below:
out
below:
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assets,
including
cash
and
cash
equivalents
and prepayments
347,610
352,756
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liabilities,
Current
including
liabilities,
tax
payable
including
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payable
(15,669)
(15,669)
(14,284)
(14,284)
$
$
$
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Non-current
assets
2,876,403
2,859,620
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deferred
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(304,367)
(304,367)
(308,600)
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of Communications
of Communications
(Fiji) (Fiji)
Limited
Limited
in 231
in Waimanu
231 Waimanu
Rd Holdings
Rd Holdings
Limited
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Current
liabilities,
including tax payable
(15,669) 2,903,977
(14,284) 2,889,492
Equity
Equity
2,903,977
2,889,492
Current
Current
assets,
assets,
including
including
cashcash
and and
cashcash
equivalents
equivalents
and and
prepayments
prepayments
347,610
347,610
352,756
352,756
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holding
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company
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has aincluding
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in Waimanu
231 Waimanu
Rd Holdings
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Limited,
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a company
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involved
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in property
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management.
management.
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company's
The company's
liabilities,
deferred
tax
liabilities
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Non-current
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assets
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2,876,403
2,876,403
2,859,620
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investment
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in 231
in Proportion
Waimanu
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Waimanu
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Rdgroup's
Holdings
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for using
for using
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method.
method.
Summarized
Summarized
financial
financial
information
information
of 231
of Waimanu
231
Waimanu
Rd
Holdings
Rd Holdings
Equity
2,903,977
2,889,492
Proportion
of
the
ofownership
the
ownership
50%
50%
50%
50%
Current
Current
liabilities,
liabilities,
including
including
tax
payable
tax payable
(15,669)
(15,669)
(14,284)
(14,284)
Limited,
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basedbased
on its
on
IFRS
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are set
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setbelow:
out
below:
1,444,746
1,444,746
Carrying
amount
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of
amount
of
231
investment
Waimanu
Rd
Holdings
Waimanu
Limited
Rd
Holdings
1,451,988
1,451,988
Non-current
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liabilities,
liabilities,
including
including
deferred
deferred
tax liabilities
tax liabilities
(304,367)
(304,367)
(308,600)
(308,600)
Proportion of the group's ownership
50%
50%
Equity
Equity
2,903,977
2,903,977
2,889,492
2,889,492
1,444,746
Carrying amount of investment - 231 Waimanu Rd Holdings Limited
1,451,988
Current
Current
assets,
assets,
including
including
cash
cash
andorcash
and
equivalents
equivalents
and
and
347,610
347,610
352,756
352,756
Summarized
statement
Summarized
of
statement
profit
loss
ofcash
profit
of 231
orWaimanu
loss
ofprepayments
231
Rd prepayments
Holdings
WaimanuLimited:
Rd Holdings Limited:
Non-current
Non-current
2,876,403
2,876,403
2,859,620
2,859,620
Proportion
Proportion
ofassets
the
of assets
group's
the group's
ownership
ownership
50%
50%
50%
50%
Revenue
Revenue
358,622
358,622358,622
358,622
Summarized
statement
of
profit
or
loss
of Waimanu
231 Waimanu
Rd Limited
Holdings
Limited:
Current
Current
liabilities,
liabilities,
including
tax payable
(15,669)
(15,669)
(14,284)
(14,284)
Carrying
Carrying
amount
amount
of
investment
ofincluding
investment
-tax
231
-payable
231
Waimanu
Rd Holdings
Rd Holdings
Limited
1,451,988
1,451,988
1,444,746
1,444,746
Expenses
Expenses
(78,778)
(78,778)
(78,778)
(78,778)
Non-current
Non-current
liabilities,
liabilities,
including
including
deferred
deferred
tax liabilities
tax liabilities
(304,367)
(304,367)
(308,600)
(308,600)
Revenue
358,622
358,622
279,844
279,844
279,844
279,844
Profit before tax
Profit before tax
Equity
Equity
2,903,977
2,903,977
2,889,492
2,889,492
Expenses
(78,778)
(78,778)
Summarized
Summarized
statement
statement
ofexpense
profit
of profit
or loss
or loss
of 231
of 231
Waimanu
Waimanu
Rd Holdings
Rd Holdings
Limited:
Limited:
Income
tax expense
Income
tax
(56,033)
(56,033)
(56,033)
(56,033)
Profit
before
tax
279,844
279,844
for the Profit
year for the year
223,811
223,811
223,811
223,811
Profit
347,260
Revenue
Revenue
358,622
358,622
358,622
358,622
Proportion
Proportion
the
ofgroup's
the group's
ownership
ownership
50%
50%
50%
50%
Income
tax of
expense
(56,033)
(56,033)
(79,128)
Expenses
Expenses
(78,778)
(78,778) 107,242
(78,778)
(78,778) 111,906
111,906
Group's
share
Group's
ofof
profit
share
for
the
of profit
year
the
year
107,242
1,444,746
1,444,746
Carrying
Carrying
amount
investment
of
investment
- 231-for
Waimanu
231
Waimanu
Rd Holdings
Rd Holdings
Limited
Limited
1,451,988
1,451,988
for amount
the year
223,811
223,811
Profit
Profit
Profit
before
before
tax tax
279,844
279,844
279,844
279,844
268,132
Income
Income
tax
expense
tax
expense
(56,033)
(56,033)
(56,033)
(53,649)
111,906
share
of
profit Limited
for
year
107,242
231Group's
Waimanu
231
Rd
Holdings
Waimanu
Rdthe
Holdings
had no
Limited
contingent
had no
liabilities
contingent
or capital
liabilities
commitments
or capital commitments
as at 31 December
as at 31
2013
December
and 2014.
2013
and(56,033)
2014.
Summarized
Summarized
statement
of profit
of profit
or loss
or of
loss
231
of Waimanu
231 Waimanu
Rd Holdings
Rd Holdings
Limited:
Limited:
Profit
Profit
for the
forstatement
year
the year
223,811
223,811
223,811
223,811
214,483
(b) Waimanu
Investment
(b)
ofInvestment
PNG FM
Limited
of PNG
in FM
Paradise
Cinemas
in Paradise
(PNG)
Cinemas
Limited
(PNG)
Limited as at 31 December 2013 and 2014. 358,622
231
Rd Holdings
Limited
had
no Limited
contingent
liabilities
or
capital
commitments
Revenue
Revenue
358,622
358,622
358,622
Group's
Group's
share
share
of profit
of profit
for the
for year
the year
107,242
107,242
111,906
111,906
The Expenses
subsidiary,
The
PNG
subsidiary,
FM Limited
PNGhas
FMaLimited
41.67%has
shareholding
a 41.67% in
shareholding
Paradise Cinemas
in Paradise
(PNG)
Cinemas
Limited,
(PNG)
a company
Limited,involved
a company
in cinema
involved
entertainment
in cinema entertainment
in Papua
Newin Papua New
Expenses
(78,778)
(78,778)
(78,778)
(78,778)
(b) Investment of PNG FM Limited in Paradise Cinemas (PNG) Limited
Guinea.
The
group's
Guinea.
The
Paradise Cinemas
in Paradise
(PNG)
Cinemas
Limited(PNG)
is accounted
Limited isforaccounted
using thefor
equity
usingmethod
the equity
in the
method
consolidated
in279,844
the consolidated
financial statements.
financial
statements.
Profit
Profit
before
before
tax investment
tax group'sininvestment
279,844
279,844
279,844
231
231
Waimanu
Waimanu
Rd
Holdings
Rd
Holdings
Limited
Limited
had
had
no
contingent
no
contingent
liabilities
liabilities
or
capital
or
capital
commitments
commitments
as
at
as
31
at
December
31
December
2013
2013
and
and
2014.
2014.
The
subsidiary,
PNG
Limited
hasofinformation
aParadise
41.67% Cinemas
shareholding
in Limited,
Paradise
Cinemas
(PNG)
Limited,
company
involved
in cinema
entertainment
in Papua
New
Summarized
financial
Summarized
information
financial
of Paradise
(PNG)
Cinemas
(PNG)
based
Limited,
onor
its
IFRS
based
financial
on itsaIFRS
statements,
financial
and
statements,
reconciliation
and
reconciliation
with
the
carrying
with
amount
the carrying
of amount of
Income
Income
tax
expense
taxFM
expense
(56,033)
(56,033)
(56,033)
(56,033)
231
Waimanu
Rd
Holdings
Limited
had
no
contingent
liabilities
capital
commitments
as
at
31
December
2013
and
2014.
Guinea.
The
investment
in
Paradise
Cinemas
(PNG)
Limited
is accounted for using the equity method in the consolidated
financial statements.
the(b)
investment
the
are
investment
set
outLimited
below:
are
set
out
forgroup's
the
for
year
the
year
223,811
223,811
223,811
223,811
Profit
Profit
Investment
of
PNG
FM
Limited
in below:
Paradise
Cinemas
(PNG)
Limited
(b)
Investment
of
PNG
FM
in
Paradise
Cinemas
(PNG)
Limited
Summarized financial information of Paradise Cinemas (PNG) Limited, based on its IFRS financial statements, and reconciliation with the carrying amount of
The The
subsidiary,
subsidiary,
PNG
PNG
FM
Limited
FM
Limited
has
has
a
41.67%
a
41.67%
shareholding
shareholding
in
Paradise
in
Paradise
Cinemas
Cinemas
(PNG)
(PNG)
Limited,
Limited,
a
company
a
company
involved
involved
in
cinema
in
cinema
entertainment
entertainment
in
Papua
in
Papua
NewNew 338,034
(b)share
Investment
of cash
PNG
FMcash
Limited
in Paradise
Cinemas
(PNG)
Limited
Current
assets,
Current
including
assets,
including
and
cash
equivalents
and
cashand
equivalents
prepayments
and
prepayments
485,836
338,034
111,906
111,906
Group's
Group's
of
profit
of profit
for
the
for
year
the
year
107,242
107,242 485,836
the investment
areshare
set
out
below:
Guinea.
Guinea.
The The
group's
group's
investment
investment
in Paradise
in Paradise
Cinemas
Cinemas
(PNG)
(PNG)
Limited
Limited
is accounted
is accounted
for using
for using
the the
equity
equity
method
method
in the
in the
consolidated
consolidated
financial
financial
statements.
statements.
Non-current
assets
Non-current
assets
10,044,287
10,044,287
5,432,764
The subsidiary, PNG FM Limited has a 41.67% shareholding in Paradise Cinemas (PNG) Limited, a company involved in cinema 5,432,764
Summarized
financial
information
information
of
Paradise
of
Paradise
Cinemas
Cinemas
(PNG)
Limited,
Limited,
based
based
on
its
onIFRS
its as
IFRS
financial
financial
statements,
statements,
and
and
reconciliation
reconciliation
withwith
the(8,106,543)
carrying
the carrying
amount
amount
of of
Current
assets,
including
cash
and
cash
equivalents
and(PNG)
prepayments
485,836
338,034
231Summarized
Waimanu
231
Waimanu
Rdfinancial
Holdings
Rd
Holdings
Limited
Limited
had
no
had
contingent
no
contingent
liabilities
or capital
or
capital
commitments
commitments
atas
31
atDecember
31 December
2013
2013
and
2014.
and
Current
liabilities,
Current
including
liabilities,
tax
payable
including
tax
payable
(8,106,543)
entertainment
in Papua
New
Guinea.
The liabilities
group’s
investment
in Paradise
Cinemas
(PNG)
Limited
is2014.
accounted for
using(2,797,750)
the equity (2,797,750)
the investment
the
investment
are
set
are out
set below:
out
below:deferred
Non-current
assets
10,044,287
5,432,764
Non-current
liabilities,
Non-current
including
liabilities,
including
tax
liabilities
deferred
tax
liabilities
(1,243,117)
(1,243,117)
(2,269,036)
method
inofincluding
the
consolidated
statements.
Summarized
financial information of Paradise Cinemas
(PNG) Limited,(2,797,750)
based on its (2,269,036)
(b) Current
Investment
(b) Investment
of PNG
FM
PNGLimited
FMtax
Limited
in Paradise
in financial
Paradise
Cinemas
Cinemas
(PNG)(PNG)
Limited
Limited
liabilities,
payable
(8,106,543)
Equity
Equity
1,180,463
1,180,463
704,012
Current
assets,
including
cash
and
cash
equivalents
and
prepayments
485,836
338,034 704,012
Current
assets,
including
cash
and
cash
equivalents
and
prepayments
485,836
338,034
IFRSPNG
financial
statements,
and
reconciliation
with
carrying
amount
of Limited,
theainvestment
areinvolved
setinout
The Non-current
subsidiary,
The subsidiary,
FM
PNGLimited
FM
Limited
has deferred
ahas
41.67%
a 41.67%
shareholding
shareholding
in
Paradise
inthe
Paradise
Cinemas
Cinemas
(PNG)(PNG)
Limited,
company
a company
involved
cinema
inbelow:
cinema
entertainment
entertainment
in
Papua
in Papua
New New
liabilities,
including
tax
liabilities
(1,243,117)
(2,269,036)
Non-current
assets
10,044,287
5,432,764
Non-current
assets
10,044,287
5,432,764
Proportion
of
Proportion
the
group's
of
ownership
the
group's
ownership
41.67%
41.67%
36%
36%
Guinea.
Guinea.
The group's
The group's
investment
investment
in Paradise
in Paradise
Cinemas
Cinemas
(PNG)(PNG)
Limited
Limited
is accounted
is accounted
for using
for using
the equity
the equity
method
method
in the
in consolidated
the
consolidated
financial
financial
statements.
statements.
Equity
1,180,463
704,012
Current
liabilities,
including
tax
payable Cinemas
(8,106,543) 491,860
(2,797,750) 251,433
Current
liabilities,
including
tax payable
(8,106,543)
(2,797,750)
Carrying
amount
Carrying
of investment
amount
- Paradise
investment
-Cinemas
Paradise
(PNG)
Cinemas
Limited
(PNG)
Limited
491,860
251,433
Summarized
Summarized
financial
financial
information
information
ofof
Paradise
of Paradise
Cinemas
(PNG)
(PNG)
Limited,
Limited,
basedbased
on itsonIFRS
its financial
IFRS financial
statements,
statements,
and reconciliation
and reconciliation
with with
the carrying
the carrying
amount
amount
of of
Non-current
including
deferred
tax liabilities
(1,243,117)
Non-current
including
deferred
tax liabilities
(1,243,117)
(2,269,036)
Proportion
ofliabilities,
theliabilities,
group's
ownership
41.67%
36%(2,269,036)
the investment
the investment
are set
areout
setbelow:
out below:
Equity
1,180,463
704,012
Equity
1,180,463
704,012
Carrying
amount of investment - Paradise Cinemas (PNG) Limited
491,860
251,433
Current
assets,
including
cash cash
and cash
equivalents
and prepayments
Current
assets,
including
and cash
equivalents
and prepayments
485,836
485,836
338,034
338,034
Proportion
of group's
the group's
ownership
41.67%
Proportion
of the
ownership
41.67%
36%36%
Non-current
Non-current
assets
assets
10,044,287
10,044,287
5,432,764
5,432,764
Carrying
amount
of investment
- Paradise
Cinemas
(PNG)
Limited
491,860
Carrying
amount
of investment
- Paradise
Cinemas
(PNG)
Limited
491,860
251,433
251,433
Current
Current
liabilities,
liabilities,
including
including
tax payable
tax payable
(8,106,543)
(8,106,543)
(2,797,750)
(2,797,750)
Non-current
Non-current
liabilities,
liabilities,
including
including
deferred
deferred
tax liabilities
tax liabilities
(1,243,117)
(1,243,117)
(2,269,036)
(2,269,036)
Equity
Equity
1,180,463
1,180,463
704,012
704,012
Proportion
Proportion
of the
ofgroup's
the group's
ownership
ownership
Carrying
Carrying
amount
amount
of investment
of investment
- Paradise
- Paradise
Cinemas
Cinemas
(PNG)(PNG)
Limited
Limited
41.67%
41.67%
491,860
491,860
25
36% 36%
251,433
251,433
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES(FIJI)
TO LIMITED
THE
CONSOLIDATED
FINANCIAL STATEMENTS continued
COMMUNICATIONS
COMMUNICATIONS
(FIJI)and
LIMITED
Subsidiary
and Subsidiary
company company
FOR
THE
YEAR
ENDED
31
DECEMBER
2014
NOTES TONOTES
THE CONSOLIDATED
TO THE
CONSOLIDATED
FINANCIAL
FINANCIAL
STATEMENTS
STATEMENTS
continued
continued
COMMUNICATIONS
(FIJI)
LIMITED
and
Subsidiary
company
FOR
THE YEAR
FOR THE
ENDED
YEAR
31ENDED
DECEMBER
31
DECEMBER
2014
2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
COMMUNICATIONS
COMMUNICATIONS
(FIJI)
LIMITED
(FIJI)
and
LIMITED
Subsidiary
and Subsidiary
company company
13.
INVESTMENT
IN ENDED
ASSOCIATE
INOR
ASSOCIATE
JOINT VENTURE
OR JOINT
VENTURE
FORINVESTMENT
THE 13.
YEAR
31
DECEMBER
2014
NOTES
TO NOTES
THE
CONSOLIDATED
TO THEofCONSOLIDATED
FINANCIAL
FINANCIAL
STATEMENTS
STATEMENTS
continued continued
(b) Investment
(b) of
Investment
PNG FM Limited
PNGinFM
Paradise
LimitedCinemas
in Paradise
(PNG)
Cinemas
Limited
(PNG) Limited
FORINVESTMENT
THE
YEAR
FOR
ENDED
THE
YEAR
31
ENDED
DECEMBER
31
DECEMBER
2014
2014
13.
IN ASSOCIATE
OR
JOINTor
VENTURE
Summarized
statement
Summarized
ofstatement
profit
loss
of profit
of Paradise
or lossCinemas
of Paradise
(PNG)
Cinemas
Limited:
(PNG) Limited:
2014
2014
2013
2013
$
2014
$
$
2013
$
(b) Revenue
Investment of
PNG FM Limited in Paradise Cinemas (PNG) Limited
$
$
Revenue
5,763,724
5,763,724
5,990,577
5,990,577
2014
2014 2013
13. INVESTMENT
13. ININVESTMENT
2013
ASSOCIATE OR
IN ASSOCIATE
JOINT VENTURE
OR JOINT VENTURE
Expenses
(7,552,137) (7,552,137)
(6,589,661) (6,589,661)
Summarized Expenses
statement of profit or loss of Paradise Cinemas (PNG) Limited:
(b) Profit
Investment
(b)
of
PNG
Investment
FM
Limited
of
PNG
in
Paradise
FM
Limited
Cinemas
in
Paradise
(PNG)
Cinemas
Limited
(PNG)
Limited
$
$
$
$
before Profit
tax before tax
(1,788,413)
(1,788,413)
(599,084)
(599,084)
Revenue
5,763,724
5,990,577
Income
tax expense
Income
tax of
expense
Summarized
statement
Summarized
profit
statement
or lossofofprofit
Paradise
or loss
Cinemas
of Paradise
(PNG)Cinemas
Limited: (PNG) Limited:
Expenses
(7,552,137)
(6,589,661)
Profit for theProfit
year for the year
(1,788,413) (1,788,413)
(599,084) (599,084)
Revenue
Revenue
5,763,724
5,763,724
5,990,577
5,990,577
before tax
(1,788,413)
(599,084)
Profit
Expenses
Expenses
(7,552,137)
(7,552,137)
(6,589,661)
(6,589,661
Income
tax
expense
Group's
share
Group's
of
profit
share
for the
of profit
year for the year
(745,172)
(745,172)
(199,695)
(199,695)
Profit for
before
tax
Profit before tax
(1,788,413) (1,788,413)
(599,084)
(599,084
the year
(1,788,413)
(599,084)
Profit
Paradise
Cinemas
Paradise
(PNG)
Cinemas
Limited
has provided
Limited has
a bank
provided
guarantee
a bank
amounting
guaranteetoamounting
$124,824to
as$124,824
at 31 December
as at 31
2014.
December
Paradise
2014.
Cinemas
Paradise
(PNG)
Cinemas
Limited
had- no
Limited had no
Income
tax expense
Income
tax (PNG)
expense
- (PNG)
Group's
share
of
profit
for
the
year
(745,172) (1,788,413)
capital
commitments
capital
commitments
as
atfor
31
December
as
at 31
2013
December
and has
2014.
2013
and 2014.
for
the year
the
year
(599,084)
Profit
Profit
Paradise
Cinemas
(PNG)
Limited
provided
a bank guarantee amounting to $124,824 as at(1,788,413)
31
December 2014.(199,695)
Paradise (599,084
Cinemas
(PNG)
Limited
had
noathe
capital
commitments
as
at
31
and
2014.
Paradise
Cinemas
(PNG)
Limited
has
provided
bank
toLimited
$124,824
assupport
at2013
December
2014.
Paradise
Cinemas
(PNG)
Limited
had(PNG)
no Limited.
At
31Group's
December
At
31
2014,
December
the
holding
2014,
the
holding
company
PNG
authorised
FM amounting
Limited
PNG
toFM
issue
aDecember
letter
to issue
of
a 31
letter
for
ofthe
support
operations
for the
ofoperations
Paradise
Cinemas
of Paradise
(PNG)
Cinemas
Limited.
(199,695)
(199,695
share
of
Group's
profit
share
for
the
ofcompany
year
profit
forauthorised
yearguarantee
(745,172)
(745,172)
capital commitments as at 31 December 2013 and 2014.
Paradise Cinemas
Cinemas
Limited2014,
(PNG)
has provided
Limited
ahas
bank
provided
guarantee
a authorised
bank
amounting
guarantee
to $124,824
amounting
as
to at
$124,824
December
at 2014.
31
Paradise
2014.
Cinemas
(PNG)Cinemas
Limited
(PNG)
had noLimited had n
AtParadise
31(PNG)
December
the
holding
company
PNG
FM Limited
to31
issue
a as
letter
of December
support
for
the Paradise
operations
of Paradise
At
31 December
2014,
the
holding
company
authorised
PNG FM
Limited
Cinemas (PNG) Limited.
capital
commitments
capital
as
commitments
at 31
December
asventure
at 2013
31
December
andventure
2014.
2013
and
2014.to issue a letter of support for the operations of Paradise
Total
investment
ininvestment
associate
or
joint
1,943,848 1,943,848
1,696,179 1,696,179
Total
in
associate
or joint
Cinemas (PNG) Limited.
At 31
December
At Holdings
2014,
31 December
the
holding
2014,
company
the
holding
PNG
authorised
FM
Limited
to listed
issue
FM Limited
aon
letter
ofissue
support
a letter
for the
of support
operations
for the
of Paradise
operations
Cinemas
of Paradise
(PNG)Cinemas
Limited. (PNG) Limited.
231
Waimanu
231
Rd
Waimanu
Limited
Rd
Holdings
and
PNG
Limited
FMauthorised
Limited
andcompany
PNGare
FM
not
Limited
listed
are
on PNG
not
any
stock
exchange.
anytostock
exchange.
Totalininvestment
associate
1,943,848
1,696,179
Total investment
associate or in
joint
venture or joint venture
14. FINANCIAL
14. ASSETS
FINANCIAL ASSETS
Group
Group
Holding Company
Holding Company
231
Rd
Holdings
Limited
and
PNG FM
are not listed on any stock exchange.
TotalWaimanu
investment
Total
in associate
investment
or in
joint
associate
venture
or Limited
joint and
venture
1,943,848 2014
1,943,848
1,696,179 2013
1,696,179
2014
2013exchange.
2013
2014
2013
231
Waimanu
Rd
Holdings
Limited
PNG FM Limited are2014
not listed on
any stock
$
$
$
$
$
$
$
$
231 Waimanu
Rd
231
Holdings
Waimanu
Limited
Rd Holdings
and PNG
Limited
FM Limited
and PNG
are FM
notLimited
listed on
areany
notstock
listedexchange.
on anyGroup
stock exchange.
14. FINANCIAL
ASSETS
Holding Company
591,884
591,884591,884
591,884591,884
591,884591,884
591,884
Shares in i-Pac
Shares
Communications
in i-Pac Communications
Limited
Limited
2014
2013
2014
2013
14.
ASSETS
FINANCIAL ASSETS
14. FINANCIAL
Group
Holding
$
$ Group
$ Holding Company
$ Company
2014
2014 2013
2013 2014
2014 2013
2013
15. INTANGIBLE
15.
ASSETS
INTANGIBLE
ASSETSLimited
591,884
591,884
591,884
591,884
Shares in
i-Pac
Communications
$
$
$
$
Holding company
Holding company
$$
$ $
$$
$ $
Shares in i-Pac
Shares
Communications
in i-Pac Communications
Limited
Limited
Software
Software
15. INTANGIBLE ASSETS
Cost:
Cost:
Holding company
1 January
1 January ASSETS
15. At
INTANGIBLE
15.At
ASSETS
INTANGIBLE
Software
Additions
Additions
Holding
company
Holding
company
Cost:
At
31 December
At 31 December
Software
At
1 January Software
Cost:
Cost:
Additions
Depreciation
Depreciation
and
impairment:
and impairment:
At 1
1 January
January
1 January
31
December
At
AtAt
1 January
Additions Depreciation
Additions
Depreciation
charge
for the
charge
year for the year
Depreciation
and impairment:
At 31
31 December
December
December
At
AtAt
3131
December
At 1 January
Depreciation
and
Depreciation
impairment:
and impairment:
Depreciation
charge
forvalue
the year
Net
book value
Net
book
At 31
1 January
At 1 January
At
December
591,884
591,884
591,884
591,884
591,884
591,884
591,884
591,884
$
$
868,899
868,899824,824
824,824
40,169
44,075
$ 40,169
$
$ 44,075
$
909,068
909,068868,899
868,899
868,899
824,824
40,169
44,075
868,899
868,899
824,824
824,824
909,068
868,899
321,537
321,537
391,973
391,973
40,169
40,169
44,075
44,075
70,436
73,159
73,159 70,436
909,068
909,068
868,899
868,899
465,132
465,132
391,973
391,973
321,537
391,973
70,436
73,159
443,936
443,936476,926
476,926
321,537
321,537
391,973
391,973
465,132
391,973
70,436
73,159
73,15970,436
Goodwill
Goodwill Software 443,936
Software
Total
476,926 Total
465,132
465,132
391,973
391,973
$
$
$
$
$
$
443,936
443,936
476,926 2,433,968
476,926
1,507,569 1,507,569926,399
2,433,968
926,399
Goodwill
Software
Total
48,687
48,687 48,687
48,687
$
$
$
-Goodwill
(1,328)
(1,328) Total
(1,328)
Goodwill
Software
Software(1,328)
Total
1,507,569
2,433,968
926,399
1,507,569
1,507,569
973,758
973,758
2,481,327
2,481,327
$
$
$
$
$
$
48,687
48,687
1,507,569
1,507,569
2,433,968
2,433,968
926,399
926,399
(1,328)
(1,328)
- 394,293
48,687
48,687
48,687
48,687
1,507,569
973,758
2,481,327
764,862
764,862
370,569
370,569
394,293
(1,328)
(1,328)
(1,328)
(1,328
79,336
79,336
79,336 79,336
1,507,569
1,507,569
973,758
2,481,327
2,481,327
- 973,758
(188)
(188)
(188)
(188)
764,862
370,569
394,293
370,569
370,569473,441
473,441844,010
844,010
79,336
79,336
764,862
764,862
370,569
370,569
394,293
394,293
(188)
(188)
- 500,317
79,336 1,637,317
79,336
79,336
79,336
370,569
473,441
844,010
1,137,000
1,137,000
500,317
1,637,317
(188
(188)
(188) (188)
370,569 1,137,000
370,569
473,441
473,441
844,010 1,669,106
844,010
1,137,000
532,106
532,106
1,669,106
1,137,000
500,317
1,637,317
Depreciation charge
Depreciation
for the charge
year for the year
Group
Group
Net book value
At 31 December
At 31 December
Cost:
Cost:
Net1 book
value
Net
book value
At
January
At
2014
1 January
2014
Group
Additions
Additions
Cost:
Translation
adjustment
Translation
adjustment
Group
Group
At
1 January 2014
At
31 December
AtCost:
31
2014
December 2014
Cost:
Additions
At 1 January
2014
Atimpairment:
1 January
Translation
adjustment
Depreciation
Depreciation
and
and2014
impairment:
Additions
Additions
31January
December
At
1
At
2014
12014
January 2014
Translation adjustment
Translation
adjustment
Depreciation
Depreciation
charge
for the
charge
year for the year
Depreciation
and
At 31 December
Atimpairment:
2014
31 December
2014
Translation
adjustment
Translation
adjustment
At 1 January 2014
At
31 December
At
31
2014
December
2014
Depreciation
and
Depreciation
impairment:
and
Depreciation charge for the year impairment:
At 1written
January
2014
Atwritten
1 January
2014
Translation
adjustment
Net
down
Net
value:
down
value:
Depreciation
charge
Depreciation
for the charge
year
At
31 December
At
31
2014
December
2014 for the year
Translation adjustment
Translation adjustment
Net written down value:
At 131
December
At
31 December
At
January
At
2014
1 2014
January
2014 2014
At 31 December 2014
Net written down
Netvalue:
written down value:
At
January
2014
At 131
December
At 2014
31 December 2014
At 1 January 2014
At 1 January 2014
26
1,137,000
1,137,000
532,106
1,137,000
500,317
1,669,106
500,317
1,637,317
1,637,317
1,137,000
1,137,000
532,106
532,106
1,669,106
1,669,106
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
THE YEAR ENDED
DECEMBER
2014
NOTES TOFOR
THE CONSOLIDATED
FINANCIAL31
STATEMENTS
continued
FOR THE YEAR ENDED 31 DECEMBER 2014
15. INTANGIBLE ASSETS continued
15. INTANGIBLE ASSETS continued
(a) Impairment testing of goodwill and intangibles with indefinite useful lives
(a) Impairment testing of goodwill and intangibles with indefinite useful lives
Goodwill acquired through business combination with indefinite life has been allocated to the subsidiary acquired which is an
Goodwill acquired through business combination with indefinite life has been allocated to the subsidiary acquired which is an individual cash generating
OMMUNICATIONS
COMMUNICATIONS
(FIJI)
(FIJI)
and
LIMITED
Subsidiary
Subsidiary
individual
cashLIMITED
generating
unit,
which isand
alsocompany
a reportablecompany
segment, for impairment testing as follows:
unit, which is also a reportable segment, for impairment testing as follows:
NOTES TO THE
NOTES
CONSOLIDATED
TO THE CONSOLIDATED
FINANCIAL FINANCIAL
STATEMENTS
STATEMENTS
continued continued
OR THECarrying
YEAR
FORamount
ENDED
THE YEAR
31
DECEMBER
ENDED
31
DECEMBER
2014
2014
of goodwill
Carrying amount
of goodwill
$
$
1,137,000
1,137,000
5. INTANGIBLE
ASSETS
INTANGIBLE
continued
ASSETS
continued
The 15.
recoverable
amount
of the
subsidiary has been determined based on a value in use calculation using cash flow projections from financial budgets
Thebyrecoverable
amountcovering
of the subsidiary
has been
determined
based
on a value in use calculation using cash flow projections
approved
senior
management
a and
five intangibles
year
period.
Theindefinite
pre-tax discount
rate applied to cash flow projection is 19% (2013: 19%) and cash
(a) Impairment(a)
testing
Impairment
of goodwill
testing
and of
intangibles
goodwill
indefinite
useful
with
lives
useful lives
from
financial
budgets
approved
bywith
senior
management
covering
a five
year
period.
The as
pre-tax
discountaverage
rate applied
torate
cash
flows
beyond
the
5-year
period
are
extrapolated
using
a
5%
growth
rate
(2013:
5%)
is
the same
the long
growth
forflow
the
Goodwill acquired
Goodwill
through
acquired
business
through
combination
business
with
combination
indefinite life
withhas
indefinite
been allocated
life has been
tothat
theallocated
subsidiary
to acquired
the subsidiary
whichterm
acquired
is an individual
which
is
cash
an generating
individual
cash generating
projection
iswhich
19%is(2013:
19%)for
and
cash flows
beyond
thetesting
5-yearasperiod
are extrapolated using a 5% growth rate (2013: 5%) that is
industry
unit,
whichinisPNG.
also
unit,
a reportable
also
segment,
a reportable
impairment
segment, for
testing
impairment
as follows:
follows:
the same as the long term average growth rate for the industry in PNG.
Key assumptions used in value in use calculations
$
$
$
$
The calculation
of value
in use are
most sensitive to the following assumptions:
Carrying
amount
Carrying
goodwill
amount
of goodwill
1,137,000
1,137,000
1,137,000
1,137,000
Key assumptions used in value in use calculations
Discount rates;
The recoverableThe
amount
recoverable
of the amount
subsidiary
of has
the been
subsidiary
determined
has been
based
determined
on a value
based
in use
on calculation
a value in use
using
calculation
cash flowusing
projections
cash flow
from
projections
financial budgets
from financial budget
Market share during budget period;
The
of value
in
use are
most
toyear
the
following
approved
by calculation
senior
approved
management
by
seniorcovering
management
a five
covering
yearsensitive
period.
a five
The
pre-tax
period.
discount
The assumptions:
pre-tax
rate applied
discount
to rate
cashapplied
flow projection
to cash flow
is 19%
projection
(2013: is
19%)
19%and
(2013:
cash19%) and cash
rates used to extrapolate cash flows beyond the budget period;
flows beyond
the
5-year
beyond
period
theare
5-year
extrapolated
period are
using
extrapolated
a 5% growth
usingrate
a 5%
(2013:
growth
5%)
rate
that
(2013:
is the5%)
same
that
as is
the
the
long
same
term
as average
the longgrowth
term average
rate forgrowth
the
rate for the
Growth
-flows
Discount
rates;
- in Political
stability;
and
industry
PNG.industry
in PNG.
- Market share during budget period;
expenditure.
Capital
-Key
Growth
ratesinused
to
extrapolate
cash flows beyond the budget period;
Key assumptions
used
assumptions
in value
used
use calculations
in value
in use calculations
Discount
rates-The
Political
andinsensitive
The
calculation
of
value
calculation
instability;
use are
of value
most
use are to
most
thesensitive
followingto
assumptions:
the following assumptions:
Discount
rates
reflect
management's
- Capital
expenditure.
- Discount
rates;
Discount rates; estimate of the risks specific to the unit. This is the benchmark used by management to assess operating
performance and to evaluate future investment proposals. In determining the appropriate discount rate, regard has been given to the yield on a tenMarket share
- during
Market
budget
shareperiod;
during budget period;
year government
bond at the beginning of the budgeted year.
rates
- Discount
Growth rates
- used
Growth
to extrapolate
rates used cash
to extrapolate
flows beyond
cashthe
flows
budget
beyond
period;
the budget period;
MarketDiscount
share during
budget
period
rates
reflect
estimate of the risks specific to the unit. This is the benchmark used by management to assess
Political stability;
Political
and management’s
stability; and
These operating
assumptions
are important,
because,
as wellfuture
as using
industry data
for growth
rates management
assess how discount
the unit's rate,
position,
relative
its
performance
and
to evaluate
investment
proposals.
In determining
the appropriate
regard
has to
been
Capital
expenditure.
-change
Capital
competitors,
might
overexpenditure.
the budget period. Management expects the Group's share of the PNG market to be stable over the budget period.
given to the yield on a tenyear government bond at the beginning of the budgeted year.
Discount rates Discount rates
Discount
ratesestimates
Discount
reflect management's
rates reflect management's
risks specific
of theto
risks
the specific
unit. This
to is
thethe
unit.
benchmark
This is the
used
benchmark
by management
used bytomanagement
assess operating
to assess operating
GrowthMarket
rate
share during
budgetestimate
period of theestimate
performance
and
performance
to evaluate
and
future
to evaluate
investment
future
proposals.
investment
In determining
proposals. the
In determining
appropriatethe
discount
appropriate
rate, regard
discount
hasrate,
beenregard
given has
to the
been
yield
given
on to
a tenthe yield on a ten
Rates are
based
on
published
industry
research.
These year
assumptions
arebond
important,
because, the
as well
as using industry data for growth rates management assess how the unit’s
year government
bond
government
at the beginning
atofthe
thebeginning
budgetedofyear.
budgeted year.
position,
relative to its competitors, might change over the budget period. Management expects the Group’s share of the PNG
Political
stability
Market
share
during
Market
budget
shareperiod
during budget period
marketexpect
to bethe
stable
overenvironment
the budgettoperiod.
Management
political
be
over
theasbudget
period.
These assumptions
These
are
assumptions
important,
because,
are important,
as well
because,
asstable
usingas
industry
well
data
usingfor
industry
growthdata
rates
formanagement
growth ratesassess
management
how theassess
unit's position,
how the unit's
relative
position,
to its relative to it
competitors,
might
competitors,
change over
might
thechange
budgetover
period.
the Management
budget period.
expects
Management
the Group's
expects
share
theofGroup's
the PNG
share
market
of the
to be
PNGstable
market
over
to the
be stable
budgetover
period.
the budget period.
Capital expenditure
Growth rate estimates
There are no significant capital expenditure adjusted in the budgeted period. The capital expenditure used in this calculation is assumed to be equal to
Rates are based on published industry research.
Growth
rate estimates
Growth rate estimates
depreciation.
Rates are basedRates
on published
are based
industry
on published
research.
industry research.
stability
16. PROPERTY, Political
PLANT AND
EQUIPMENT
Political
stabilityPolitical expect
stability the political environment to
Management
Holding
company
Plant and
be stable
the budget period.
Landover
and buildings
equipment
Motor vehicles
Total
Management expect
Management
the political
expect
environment
the political
toenvironment
be stable over
to the
be stable
budgetover
period.
the budget period.
Cost:
$
$
$
$
CapitalCapital
expenditure
Capital expenditure
expenditure
At 1 January
2014are no significant capital expenditure adjusted in the budgeted
486,026 period. 10,071,421
11,136,781is
579,334
There
The
capital
expenditure
used
in
this
calculation
There are no significant
There arecapital
no significant
expenditure
capital
adjusted
expenditure
in the adjusted
budgetedinperiod.
the budgeted
The capital
period.
expenditure
The capital
used
expenditure
in this calculation
used in this
is assumed
calculation
to be
is assumed
equal to to be equal to
Additions
627,906
494,080
133,826
assumed
to be equal to depreciation.
depreciation.
depreciation.
Disposals
(52,203)
(3,501)
(48,702)
At 31 December
2014
486,026
10,562,000
664,458
11,712,484
6. PROPERTY,
16.
PLANT
PROPERTY,
AND EQUIPMENT
PLANT AND EQUIPMENT
Plant and
Plant and
Land and buildings
Land and buildings
Motor vehicles Motor vehicles
Total
Total
equipment
equipment
Holding
company
Holding
company
Depreciation
and
impairment:
At 1 January 2014
Cost:
Cost:
Depreciation charge for the year
At 1 January 2014
At 1 January 2014
Disposals
Additions
Additions
At 31 December 2014
Disposals
Disposals
Net
down
value:
At
31written
December
At2014
31
December 2014
At 31 December 2014
Depreciation and
Depreciation
impairment:and impairment:
At
At 1 January 2014
At11January
January2014
2014
Depreciation charge
Depreciation
for the year
charge for the year
Disposals
Disposals
At 31 December
At2014
31 December 2014
269,207
$
17,425
486,026
286,632
486,026
199,394
7,679,898
361,593
$
$
$
$
321,370
63,294
486,026
10,071,421 10,071,421
579,334
(47,864)
-494,080
494,080
133,826
8,001,268
377,023
- (3,501)
(3,501)
(48,702)
486,026
10,562,000 10,562,000
664,458
2,560,732
287,435
8,310,698
$
$
$
402,089
11,136,781 11,136,781
579,334
(47,864)
627,906
627,906
133,826
8,664,923
(52,203)
(52,203
(48,702)
664,458
11,712,484 11,712,484
3,047,561
269,207
216,819
17,425
286,632
269,207
7,679,898
2,391,523
17,425
321,370
286,632
8,001,268
7,679,898
361,593
217,741
321,370
63,294
- (47,864)
8,001,268
377,023
8,310,698
361,593
2,826,083
63,294
402,089
(47,864)
(47,864)
377,023
8,664,923
8,310,698
402,089
(47,864
8,664,923
Net written down
Netvalue:
written down value:
At 31 December
At2014
31 December 2014
199,394
199,394
2,560,732
2,560,732
287,435
287,435
3,047,561
3,047,561
At 1 January 2014
At 1 January 2014
216,819
216,819
2,391,523
2,391,523
217,741
217,741
2,826,083
2,826,083
27
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES
TO LIMITED
THE
CONSOLIDATED
FINANCIAL
STATEMENTS continued
COMMUNICATIONS
COMMUNICATIONS
(FIJI)
(FIJI)
and
LIMITED
Subsidiary
and Subsidiary
company
company
NOTES TOFOR
NOTES
THE CONSOLIDATED
TO THE
CONSOLIDATED
FINANCIALFINANCIAL
STATEMENTS
STATEMENTS
continued
continued
THE
YEAR
ENDED
31
DECEMBER
2014
FOR THE YEAR
FOR THE
ENDED
YEAR
31ENDED
DECEMBER
31 DECEMBER
2014
2014
COMMUNICATIONS
COMMUNICATIONS
(FIJI) LIMITED
(FIJI)
and
LIMITED
Subsidiary
andSubsidiary
Subsidiary
company company
company
COMMUNICATIONS
(FIJI)
LIMITED
and
COMMUNICATIONS
COMMUNICATIONS
(FIJI)
LIMITED
(FIJI)
and
LIMITED
Subsidiary
and Subsidiary
company company
PLANT
PROPERTY,
AND
EQUIPMENT
PLANT
AND
continued
EQUIPMENT
continued
Plant and
16. PROPERTY,
16.
NOTES
TO
NOTES
THE
CONSOLIDATED
TO
THE
CONSOLIDATED
FINANCIAL
FINANCIAL
STATEMENTS
STATEMENTS
continued
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
continued
Land and buildings
Land
and buildings
equipment
NOTES TO NOTES
THE CONSOLIDATED
TO THE CONSOLIDATED
FINANCIALFINANCIAL
STATEMENTS
STATEMENTS
continued
continued
FOR Group
THE FOR
YEAR
FORTHE
ENDED
THEYEAR
YEAR
31ENDED
ENDED
DECEMBER
31DECEMBER
DECEMBER
2014
2014
31
2014
$
$
$
FOR THE YEAR
FORGroup
THE
ENDED
YEAR
31 ENDED
DECEMBER
31 DECEMBER
2014
2014
Cost:
Cost:
PLANT
PROPERTY,
EQUIPMENT
PLANT
AND
continued
EQUIPMENT
continued
6. PROPERTY,
16.
At 1 January
2014
At
1AND
January
2014
PROPERTY,
PLANT
AND
EQUIPMENT
continued
16.
PLANT
PROPERTY,
AND EQUIPMENT
PLANT AND
continued
EQUIPMENT continued
6. PROPERTY,
16.
Additions
Additions
Group
Group
Disposals Group
Disposals
Group
Group
Cost:
Cost:
Translation adjustment
Translation
adjustment
Cost:
Cost:
Cost:
At
January
2014
1
January
2014
At131
December
At
2014
December
2014
At
1 31
January
2014
At
1 January 2014
At
1 January 2014
Additions
Additions
Additions
Additions
Additions
Disposals
Disposals
DepreciationDisposals
and
Depreciation
impairment:
and impairment:
Disposals
Disposals
Translation
adjustment
Translation
adjustment
At 1 January
2014
At
1 January
2014
Translation
adjustment
Translation
adjustment
Translation
adjustment
At
31 December
At
2014
31
December
2014
Depreciation
charge
Depreciation
for thecharge
year
for the year
At
31
December
2014
At 31 December
At 2014
31 December 2014
Disposals
Disposals
Depreciation
and
Depreciation
impairment:
and
impairment:
Translation adjustment
Translation
adjustment
Depreciation
and
impairment:
Depreciation
and
Depreciation
impairment:
and
impairment:
At
January
2014
1
January
2014
At131
December
At
2014
December
2014
At
1 31
January
2014
At
1 January charge
2014
At
1 January
2014
Depreciation
Depreciation
for the
charge
year forfor
the
year
Depreciation
charge
the
year
Depreciation
charge
Depreciation
for the charge
year for the year
Disposals
Disposals
Net written Disposals
down
Net
written
value: down value:
Disposals
Disposals
Translation
adjustment
Translation
adjustment
At 31 December
At
31
2014
December
2014
Translation
adjustment
Translation
adjustment
Translation
adjustment
At 31 December
2014
31
December
2014
AtAt
31
December
2014
At
December
At 2014
31
December
2014
At31
1 January
2014
1 January
2014
Plant and
equipment
Motor vehicles
Motor vehicles
Total
$
$
$
$
Total
$
Plant
and
Plant
and 1,165,600 1,165,600
511,436
511,436
16,267,108
16,267,108
17,944,144 17,944,144
Plant
and
Plant and
PlantMotor
and vehiclesMotor vehicles
Land and buildings
Land
and
buildings
Total
Total
equipment
equipment
2,491
2,491
677,154
677,154
284,875
284,875
964,520 Total
964,520
Land
and
buildings
equipment
Motor vehicles
Land and buildings
Land and buildings
equipment
equipment
Motor vehiclesMotor vehicles
Total
Total
$
$ (94,802) $ $(94,802)
-$
- $ (94,802) $ $(94,802)
$$
$$
$
$
$
$
$
$
$
$
(587)
(587)
(141,545) (141,545)
(14,866)
(14,866)
(156,998) (156,998)
511,436
511,436
16,267,108
16,267,108
17,944,144
17,944,144
1,165,600
1,165,600
513,340 511,436
513,340
16,802,71716,267,108
16,802,717
1,340,807 1,165,600
1,340,807
18,656,86417,944,144
18,656,864
511,436
511,436
16,267,108
17,944,144
1,165,600
1,165,600
2,491
2,491
677,154 16,267,108
677,154
284,875
284,875
964,520 17,944,144
964,520
2,491
677,154
284,875
964,520
2,491
2,491
677,154
677,154
284,875
284,875
964,520
964,520
(94,802)
(94,802)
(94,802)
- - - (94,802)
(94,802)
(94,802)
-(141,545)
- (94,802)
(94,802)
(94,802)
(94,802)
(587)
(587)
(141,545)
(14,866)
(14,866)
(156,998)
(156,998)
11,560,165
11,560,165
270,129
270,129
10,542,552
10,542,552
747,484
747,484
(587)
(141,545)
(14,866)
(156,998)
(587)
(587)
(141,545) 16,802,717
(141,545)
(14,866) 1,340,807
(14,866)
(156,998) 18,656,864
(156,998)
513,340
513,340
16,802,717
1,340,807
18,656,864
19,293 513,340
19,293
668,49116,802,717
668,491
135,406 1,340,807
135,406
823,19018,656,864
823,190
513,340
513,340
16,802,717 16,802,717
1,340,807
1,340,807
18,656,864 18,656,864
- (93,964)
(93,964)
(93,964)
(93,964)
(62)
(62)
(73,516)
(73,516)
(10,433)
(10,433)
(84,011)
(84,011)
11,560,165
11,560,165
270,129
270,129
10,542,552
10,542,552
747,484
747,484
289,360 270,129
289,360
11,137,52710,542,552
11,137,527
778,493 747,484
778,493
12,205,38011,560,165
12,205,380
11,560,165
270,129
270,129
10,542,552
747,484
747,484
19,293
19,293
668,491 10,542,552
668,491
135,406
135,406
823,190 11,560,165
823,190
19,293
668,491
135,406
823,190
19,293
19,293
668,491
668,491
135,406
135,406
823,190
823,190
(93,964)
(93,964)
(93,964)
- - - (93,964)
(93,964)
(93,964)
-(62)
- (93,964)
(93,964)
(93,964)
(93,964)
(62)
(73,516)
(73,516)
(10,433)
(10,433)
(84,011) 6,451,484
(84,011)
223,980
223,980
241,307
241,307
562,314
562,314
6,451,484
(62)
(73,516)
(10,433)
(84,011)
(62)
(62)
(73,516) 11,137,527
(73,516)
(10,433)
(10,433)
(84,011) 12,205,380
(84,011)
289,360
289,360
11,137,527
778,493
12,205,380
289,360
11,137,527778,493
778,493
12,205,380
289,360
289,360
11,137,527
778,493
778,493
12,205,380
241,307
241,307
238,851 11,137,527
238,851
418,116
418,116
6,383,979 12,205,380
6,383,979
Net written down
Net
value:
written
down
value:
Net
written
down
value:
Thewritten
carrying
amount
Thevalue:
carrying
of plant
amount
and
equipment
of plant and
held
equipment
under finance
held under
leasesfinance
and hire
leases
purchase
and hire
contracts
purchase
for contracts
the groupfor
at the
31 December
group at 31
2014
December
was $126,916
2014 was $126,916
Net
down
Net
written
down
value:
223,980
223,980
241,307 contracts
241,307
562,314
562,314
6,451,484
At 31
December
At
2014
31
December
2014
223,980
241,307
562,314
6,451,484
At(2013:
31
December
2014
The
carrying
amount
plant
and
underare
finance
leases
and
hire
purchase
for
thehire
group
atand
316,451,484
December
(2013:
$8,701).
Leased
$8,701).
assets
Leased
andofassets
assets
under
andequipment
hire
assets
purchase
underheld
hire
contracts
purchase
contracts
pledged
asare
security
pledged
forasthe
security
relatedfor
finance
the
related
lease
and
finance
lease
purchase
hire
liabilities.
purchase
liabilities.
223,980
223,980
241,307
241,307
562,314
562,314
6,451,484
6,451,484
At 31 December
At 2014
31 December 2014
2014 was $126,916 (2013: $8,701). Leased assets and assets under hire purchase contracts are pledged as security for the related
At 1 JanuaryAt
2014
At
1 January
2014
241,307
241,307
238,851
238,851
418,116
418,116
6,383,979 6,383,979
6,383,979
1 January
2014
241,307
238,851
418,116
finance
lease
and
hireyear
purchase
Total
non-cash
Total
addition
non-cash
during
addition
the
during
amounted
theliabilities.
year
to $133,826.
amounted to $133,826.
At
1 January
2014
At
1 January
2014
241,307
241,307
238,851
238,851
418,116
418,116
6,383,979
6,383,979
The
amount
The
carrying
of buildings
plant
amount
andwith
equipment
of
held
equipment
under of
finance
held
leases
under
finance
and hire
leases
purchase
and
contracts
hire
purchase
for
the
group
for
31
the
December
group
at
2014
31
December
was
2014
was
$126,916
Landcarrying
and buildings
Land
and
with
aamount
carrying
amount
aplant
carrying
ofand
$224,513
amount
(2013:
$224,513
$241,310)
(2013:
are
$241,310)
subject
to
are
a purchase
first
subject
mortgage
to
acontracts
first
charge
mortgage
to
secure
charge
allatof
to
the
secure
group's
all of$126,916
bank
the
group's
loans
bank
loans
The
carrying
of
plant
and
equipment
held
under
finance
leases
and
hire
contracts
forat
the
group
31
December
2014
was
$126,916
The
carrying
amount
The
carrying
of
plant
amount
and
of plant
and
held
equipment
under
finance
held
under
leases
finance
and
hire
leases
purchase
and
contracts
hire
purchase
for
the
contracts
group
for
at related
31
theDecember
group
at 31
2014
December
wasliabilities.
$126,916
2014
wasliabilities.
$126,916
(2013:
$8,701).
(2013:
Leased
$8,701).
assets
Leased
andequipment
assets
assets
under
and
hire
assets
purchase
under
contracts
hire
purchase
arecontracts
pledged
contracts
as
are
security
pledged
for
the
security
related
finance
the
lease
and
finance
hire
purchase
lease
and
hire
purchase
Total
non-cash
addition
during
the
year
amounted
to $133,826.
(2013:
$8,701).
Leased
assets
and
assets
under
hire
purchase
are
pledged
asas
security
forfor
the
related
finance
lease
and
hire
purchase
liabilities.
(Note19).
(Note19).
(2013: $8,701).
(2013:
Leased
$8,701).
assets Leased
and assets
assets
under
andhire
assets
purchase
under contracts
hire purchase
are pledged
contracts
asare
security
pledged
for as
thesecurity
relatedfor
finance
the related
lease and
finance
hire purchase
lease and liabilities.
hire purchase liabilities.
As at 31 December
As at 31
2014,
December
the gross
2014,
carrying
the gross
amount
carrying
of fully
amount
depreciated
of fullyproperty,
depreciated
plant
property,
and equipment
plant and
that
equipment
is still in use
thatisis$6,653,749.
still in use is $6,653,749.
Total non-cash
Total
addition
non-cash
during
addition
thewith
year
during
the
year
to
$133,826.
amounted
to
$133,826.
Total
non-cash
addition
during
the
year
amounted
$133,826.
Land
and
buildings
aamounted
carrying
amount
of to
$224,513
(2013: $241,310) are subject to a first mortgage charge to secure all of the
Total non-cashTotal
addition
non-cash
duringaddition
the yearduring
amounted
the year
to $133,826.
amounted to $133,826.
Land and buildings
Land
with
and
abuildings
carrying
with
amount
a carrying
of $224,513
amount
of
$224,513
$241,310)
(2013:
are
$241,310)
subject to
are
a subject
first
subject
mortgage
a first
charge
mortgage
to secure
charge
all to
ofto
the
secure
group's
bank
the
loans
group's
bank
loans
Land
and
buildings
a carrying
amount
of(2013:
$224,513
(2013:
$241,310)
are
toto
a first
mortgage
charge
secure
allall
ofof
the
group's
bank
loans
group’s
bank
loanswith
(Note19).
Land and buildings
Land with
and buildings
a carryingwith
amount
a carrying
of $224,513
amount (2013:
of $224,513
$241,310)
(2013:
are$241,310)
subject to are
a first
subject
mortgage
to a first
charge
mortgage
to secure
charge
all oftothe
secure
group's
all of
bank
the loans
group's bank loans
(Note19).
Group
Group
Holding Company
Holding Company
17. (Note19).
TRADE AND
OTHER
TRADE
PAYABLES
AND OTHER PAYABLES
17.(Note19).
(Note19).
(Note19).
As at 31 December
2014,
31
December
the gross
2014,
carrying
the
gross
amount
carrying
of
fully
amount
depreciated
fully
property,
plant
property,
and equipment
plant
and
that
equipment
is still2013
in
use
that
is2014
is
$6,653,749.
still
use
is
$6,653,749.
As
atat31
31
December
2014,
the
gross
carrying
amount
ofdepreciated
fully
depreciated
property,
plant
and
equipment
that
is still
in use is 2013
2014
2014
2013
2013
AsAs
December
2014,
the
gross
carrying
amount
ofof
fully
depreciated
property,
plant
and
equipment
that
is
still
in in
use
is 2014
$6,653,749.
As at 31 December
As at 2014,
31 December
the gross
2014,
carrying
the gross
amount
carrying
of fullyamount
depreciated
of fully
property,
depreciated
plantproperty,
and equipment
plant and
thatequipment
is still in use
thatis is$6,653,749.
still in use is $6,653,749.
$
$
$
$
$
$
$
$
$6,653,749.
Trade payables
Trade
payables
AND
17.OTHER
TRADE
PAYABLES
AND
OTHER
PAYABLES
7. TRADE
TRADE
AND
OTHER
PAYABLES
17.
AND
TRADE
AND OTHER PAYABLES
7. TRADE
17.OTHER
Other payables
OtherPAYABLES
payables
Dividend payable
Dividend payable
Payable to related
Payable
entity
to related entity
187,990
267,620
267,620 Holding
34,921 Company
34,921
46,972
46,972
Group 187,990
Group
Holding
Company
Group
Holding
Company
Group
Group
Holding Company
Holding
Company2013
923,621
923,621
894,085 2013
894,085
377,648
377,648
330,941
330,941
2014
2014
2013
2014
2014
2013
2014
2013
2014
2013
2014
2014
2013
2014
2014
2013
- $ 142,320 2013
142,320
- $ 142,320 2013
142,320
$
$
$$
$$
$$
$$
$
$
$
$
$252,703
-$
-$
- $ 252,703
1,111,611
1,111,611
1,304,025
1,304,025
412,569
412,569
772,936
772,936
Trade payables
Trade
payables
187,990
187,990
267,620
267,620
34,921
34,921
46,972
46,972
Trade
payables
187,990
267,620
34,921
46,972
Trade
payablesTrade
payables
187,990
187,990
267,620
267,620
34,921
34,921
46,972
46,972
Other payables
Other
payables
923,621
923,621
894,085
894,085
377,648
377,648
330,941
330,941
Other
payables
923,621
894,085
377,648
330,941
Other payables
Other
payables
923,621
923,621
894,085
894,085
377,648
377,648
330,941
330,941
Dividend
payable
Dividend
payable
142,320
142,320
Terms and
conditions
Terms
and
of
the
conditions
above financial
of the above
liabilities:
financial liabilities:
Dividend
payable
- - 142,320
142,320
- - 142,320
142,320
Dividend
payable
Dividend
payable
142,320
142,320
142,320
142,320
- 252,703
252,703
Payable
to
related
Payable
entity
to
related
entity
252,703
Payable
to
related
entity
Trade payables
Trade
are non-interest
payables arebearing
non-interest
and are
bearing
normally
andsettled
are normally
on 60-day
settled
terms.
terms.
- on 60-day
- 412,569
- 772,936
252,703
252,703
Payable to related
Payable
entity
to related entity
1,111,611
1,111,611
1,304,025
1,304,025
412,569
772,936
1,111,611
1,304,025
412,569
772,936
Other payables
Other
are non-interest
payables arebearing
non-interest
and have
bearing
an average
and have
term
an average
of 1,111,611
six months.
term of six
months.
1,111,611
1,304,025
1,304,025
412,569
412,569
772,936
772,936
payable
- and
Interest
isabove
normally
payable
settled
is normally
monthly
settled
throughout
monthly
the
throughout
financial year.
the financial year.
Terms- and Interest
conditions
ofconditions
the
financial
liabilities:
Terms
conditions
of
the
above
financial
liabilities:
Terms
and
of
the
above
financial
liabilities:
Terms- and For
conditions
Terms
and
of For
the
conditions
aboveand
financial
of conditions
the above
liabilities:
financial
liabilities:
terms
and
conditions
terms
relating
to
related
relating
parties,
to
related
refer
to
parties,
Note
refer
24.
to
Note
24.60-day terms.
Trade payables
are payables
non-interest
bearing
and are
normally
settled
on 60-day
terms.
Trade
payables
are
non-interest
bearing
and
are
normally
settled
- - Trade
are
non-interest
bearing
and
are
normally
settled
onon
60-day terms.
Trade payables
Trade
are non-interest
payables arebearing
non-interest
and arebearing
normally
andsettled
are normally
on 60-day
settled
terms.
on 60-day terms.
Other payables
are payables
non-interest
bearing
and have
an and
average
term
of
six months.
- Other
Other
payables
are
non-interest
bearing
and
have
an
average
term
of
months.
are
non-interest
bearing
have
an
average
term
of
sixsix
months.
$
BENEFIT
EMPLOYEE
BENEFIT
LIABILITIES
18. EMPLOYEE
18.
Other
payables
- LIABILITIES
Other
are
non-interest
payables
arebearing
non-interest
and have
bearing
an average
and have
term
an of
average
six $months.
term of six$months.
Interest- payable
is normally
settled
monthly
throughout
the
financial the
year.
- Interest
Interest
payable
normally
settled
monthly
throughout
the
financial
year.
payable
is is
normally
settled
monthly
throughout
financial
year.
Interest
payable
- leave
Interest
is normally
payable
settled
is normally
monthly
settled
throughout
monthly
thethroughout
financial year.
the107,125
financial year.
Annual
Annual
101,119
- leave
For terms
conditions
relating
to related
parties,
referparties,
to
Noterefer
24.
For
terms
and
conditions
relating
related
parties,
refer
Note
24. 107,125
- -and
For
terms
and
conditions
relating
toto
related
toto
Note
24.
- service
For terms
and For
conditions
terms and
relating
conditions
to related
relating
parties,
to related
refer to
parties,
Note 24.
refer to 98,306
Note 24.
Long
leave
Long- service
leave
98,306 77,726
$ 205,431 $ $205,431
$ 178,845
BENEFIT
EMPLOYEE
LIABILITIES
BENEFIT
LIABILITIES
8. EMPLOYEE
18.
18.
EMPLOYEE
BENEFIT
LIABILITIES
$
$
$
18.
BENEFIT
EMPLOYEE
LIABILITIES
BENEFIT LIABILITIES
8. EMPLOYEE
Annual leaveAnnual
Annual
leave
leave
Annual
leave leave
Annual
leave leave
Long
service
Long
service
Long
service
leave
Long service leave
Long service leave
107,125
107,125
98,306
98,306
205,431
205,431
28
107,125
101,119
107,125
107,125
101,119
98,306
77,726
98,306
98,306
77,726
205,431
178,845
205,431
205,431
178,845
$
$
101,119 70,814
77,726
178,845
70,814
$
$
$
$
$
101,11970,814
101,119
101,119
77,72670,814
77,726
77,72670,814
178,845
178,845
178,84570,814
$
$
70,814 64,606
70,814
64,606
$
$
$
$
$
70,81464,606
70,814
70,814
64,606
- - 64,606
70,814
70,814
70,81464,606
$
64,606
64,606
$
$
$
64,606
64,606
64,606
- 64,606
64,606
64,606
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
COMMUNICATIONS
COMMUNICATIONS
COMMUNICATIONS
COMMUNICATIONS
(FIJI)
(FIJI)
(FIJI)
(FIJI)
LIMITED
and
LIMITED
LIMITED
Subsidiary
andand
and
Subsidiary
Subsidiary
Subsidiary
company
company
company
company
NOTES
TO LIMITED
THE
CONSOLIDATED
FINANCIAL
STATEMENTS continued
NOTESNOTES
TO
NOTES
NOTES
THE
TOCONSOLIDATED
TO
THE
TOTHE
THE
CONSOLIDATED
CONSOLIDATED
CONSOLIDATED
FINANCIAL
FINANCIAL
FINANCIAL
FINANCIAL
STATEMENTS
STATEMENTS
STATEMENTS
STATEMENTS
continued
continued
continued
continued
FOR
THE
YEAR
ENDED
312014
DECEMBER 2014
FOR THE
FORFOR
YEAR
FOR
THETHE
THE
YEAR
ENDED
YEAR
YEAR
ENDED
31
ENDED
ENDED
DECEMBER
31 31
DECEMBER
31DECEMBER
DECEMBER
2014 2014
2014
COMMUNICATIONS
COMMUNICATIONS
(FIJI) LIMITED
(FIJI)
andLIMITED
Subsidiary
and company
Subsidiary company
NOTES TO THE
NOTES
CONSOLIDATED
TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
continued continued
Group Group
Group
Group
2014 2014
2014
2014 2013 2013
2013
2013
19. INTEREST-BEARING
19. YEAR
19.
INTEREST-BEARING
19.
INTEREST-BEARING
INTEREST-BEARING
BORROWINGS
BORROWINGS
BORROWINGS
BORROWINGS
FOR
THE
FOR
ENDED
THE
YEAR
31
DECEMBER
ENDED
31 2014
DECEMBER 2014
Holding Company
Holding
Holding
Holding
Company
Company
Company
2014 2014
2014
2014 2013 2013
2013
2013
$ $$
$
$ $$
$
$ $$
$
$ $$
Group
Group
Holding Company
Holding Company
4%
4% 4%
4%
Bank overdraft
Bank
overdraft
Bank
overdraft
overdraft On demand
On demand
On
Ondemand
demand
189,567189,567
189,567
189,567
103,711103,711
103,711
103,711
189,567189,567
189,567
189,567
103,711103,711
103,711
103,711
2014
2014
2013
2013
2014
2014
2013
2013
9. INTEREST-BEARING
19.Bank
INTEREST-BEARING
BORROWINGS
BORROWINGS
4%
4%
4% 4%
Secured Secured
loanSecured
Secured
loan loan
loan
Note 26NoteNote
26
Note26
26
552,606552,606
552,606
552,606
376,778376,778
376,778
376,778
396,575396,575
396,575
396,575
376,778376,778
376,778
376,778
$48,511
$
$48,511
$
Current
Current
Maturity
Effective
rate
4% % interest rate$%48,511 48,511
4%
4%
4%
Lease
liabilities Maturity
Note
22interest
Lease liabilities
Lease
Lease
liabilities
liabilities
Note 22NoteEffective
Note
22
22
48,511
- $ - - $ 48,511 48,511
48,511
-$ -Current Current
Current
Current
$
MaturityMaturity
Maturity
Effective
Maturity
Effective
interest
Effective
Effective
interest
rateinterest
%
interest
rate rate
%rate%%
Bank overdraft Bank overdraftOn demand
Secured loan Secured loan Note 26
Lease
liabilities
Lease liabilities Note 22
Non-current
Non-current
Non-current
Non-current
Secured Secured
loanSecured
Secured
loan loan
loan
Lease liability
Lease
liability
Lease
Lease
liability
liability
4%
On demand
4%26
Note
4%22
Note
26
Note 26NoteNote
Note26
26
4%
Note 22NoteNote
22
Note22
22
4%
Non-current
Non-current
Secured loan Secured loan Note 26
Note
4%26
Lease
Lease
liability
Note
22
Note
22
4%
Detailsliability
of
Details
interest
Details
Details
of interest
bearing
ofof
interest
interest
borrowings
bearing
bearing
bearing
borrowings
are:
borrowings
borrowings
are:
are:
are:
Details of interest bearing borrowings are:
4%
4%
4%
4% 4%
4%
4% 4%
4%
4%
4%
(a) Bank
(a)overdraft
(a)
Bank
(a) Bank
overdraft
Bank
and
overdraft
overdraft
secured
and secured
and
loan
andsecured
are
secured
loan
secured
loan
are
loan
secured
as
are
are
follows:
secured
secured
as follows:
asasfollows:
follows:
189,567
189,567
103,711
103,711
189,567
189,567
103,711
103,711
790,684
480,489
634,653
480,489
790,684790,684
790,684
480,489480,489
480,489
634,653634,653
634,653
480,489480,489
480,489
552,606
552,606
376,778
376,778
396,575
396,575
376,778
376,778
48,511
48,511 - 48,511
48,511 -
988,789988,789
988,789
1,392,402
1,392,402
1,392,402
988,789988,789
988,789
1,392,402
1,392,402
1,392,402
988,789
1,392,402
988,789
1,392,402
790,684
790,684
480,489
480,489
634,653
634,653
480,489
480,489
84,571 84,571
84,571
- - 84,571 84,571
84,571
-84,571
84,571
1,073,360
1,073,360
1,073,360
1,073,360
1,392,402
1,392,402
1,392,402
1,392,402
1,073,360
1,073,360
1,073,360
1,073,360
1,392,402
1,392,402
1,392,402
1,392,402
988,789
84,571
988,789
1,392,402
84,571 -
1,392,402
988,789
- 84,571
988,789
1,392,402
84,571 -
1,392,402
-
1,073,360
1,073,360
1,392,402
1,392,402
1,073,360
1,073,360
1,392,402
1,392,402
(a) Bank overdraft and secured loan are secured as follows:
Holding
company
Holding
Holding
Holding
company
company
Details
of interest
Details
bearing
of company
interest
borrowings
bearing
are: borrowings are:
The
Holding
company
The bank
overdraft
The
bank
Thebank
bank
overdraft
facility
overdraft
overdraft
and
facility
loan
facility
facility
and
from
and
loan
and
Westpac
loan
from
loanfrom
Westpac
from
Banking
Westpac
Westpac
Banking
Corporation
Banking
Banking
Corporation
Corporation
are
Corporation
secured
are secured
are
by
areasecured
secured
first
byregistered
aby
first
bya afirst
registered
first
mortgage
registered
registered
mortgage
debenture
mortgage
mortgage
debenture
over
debenture
debenture
theover
assets
over
the
over
of
assets
the
the
the
assets
assets
of the
ofofthe
the
overdraft
The
bank
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facility
and
loan
from
Westpac
Banking
Corporation
are
secured
by
aloan
first
registered
mortgage
debenture
(a) Bank
(a)
and
Bank
secured
overdraft
loan
and
aresecured
secured
loan
as
are
secured
as
follows:
company
company
and
company
company
undertakings
and
undertakings
and
and
undertakings
including
undertakings
including
its including
uncalled
including
itsfollows:
uncalled
ad
its
its
called
uncalled
uncalled
adbut
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ad
ad
unpaid
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butcapital.
unpaid
but
butunpaid
unpaid
Interest
capital.
capital.
capital.
Interest
on bank
Interest
Interest
on
overdrafts
bank
on
onbank
overdrafts
bank
and
overdrafts
overdrafts
and
accounts
and
loan
andloan
accounts
loan
areaccounts
accounts
charged
are charged
are
atare
the
charged
charged
rate
at the
of
atatrate
the
therate
of
rateofof
4.00%.
over the assets of the company and undertakings including its uncalled ad called but unpaid capital. Interest on bank
4.00%.
4.00%.
4.00%.
Holding
company
Holding company
overdrafts
and
loan accounts
are charged
at theBanking
rate are
of Corporation
4.00%.
The bank overdraft
The bank
facility
overdraft
and loanfacility
from Westpac
and loan Banking
from Westpac
Corporation
secured by are
a first
secured
registered
by a first
mortgage
registered
debenture
mortgage
over debenture
the assetsover
of the
the assets of th
Lease
Lease
liabilities
liabilities
liabilities
(b) Lease
(b)liabilities
(b)
(b) Lease
company and undertakings
company and
including
undertakings
its uncalled
including
ad called
its uncalled
but unpaid
ad called
capital.
but Interest
unpaid capital.
on bankInterest
overdrafts
on bank
and loan
overdrafts
accounts
andare
loan
charged
accounts
at the
are rate
charged
of at the rate o
Lease
liabilities
Lease
Lease
Lease
liabilities
were
liabilities
liabilities
secured
werewere
secured
were
by asecured
Master
secured
by aLease
by
Master
bya aMaster
Master
agreement
Lease
Lease
Lease
agreement
and
agreement
agreement
a charge
and a
and
over
and
charge
a acharge
leased
charge
overassets.
over
leased
overleased
leased
assets.
assets.
assets.
(b) Lease liabilities
4.00%.
4.00%.
Lease liabilities were secured by a Master Lease agreement and a charge over leased assets.
(b) Lease liabilities
(b) Lease liabilities
$
$ $$
$
$
20. SHARE
20. 20.
20. SHARE
CAPITAL
SHARE
SHARE
CAPITAL
CAPITAL
CAPITAL
Lease liabilities were
Leasesecured
liabilities
bywere
a Master
secured
Lease
by agreement
a Master Lease
and a
agreement
charge over
andleased
a charge
assets.
over leased assets.
Authorised
Authorised
capital
Authorised
Authorised
capital
capital
capital
5,000,000
5,000,000
ordinary
5,000,000
5,000,000
ordinary
shares
ordinary
ordinary
of
shares
$1shares
each
shares
of $1
ofof
each
$1
$1each
each
0. SHARE CAPITAL
20. SHARE CAPITAL
Issued and
Issued
paid
Issued
Issued
and
up capital
paid
and
andpaid
up
paid
capital
up
upcapital
capital
Authorised capital
Authorised capital
3,558,000
3,558,000
ordinary
3,558,000
3,558,000
ordinary
shares
ordinary
ordinary
of
shares
$1shares
each
shares
of $1
ofof
each
$1
$1each
each
5,000,000 ordinary
5,000,000
shares ordinary
of $1 each
shares of $1 each
21. Issued
RESERVES
21. and
21.
RESERVES
21.paid
RESERVES
RESERVES
Issued
up capital
and paid up capital
3,558,000 ordinary
3,558,000
shares ordinary
of $1 each
shares of $1 each
Foreign currency
Foreign
Foreign
Foreign
currency
translation
currency
currency
translation
reserve
translation
translation
reserve
reserve
reserve
At 1 January
At 1At
January
At11January
January
1. RESERVES 21. RESERVES
CurrencyCurrency
translation
Currency
Currency
translation
differences
translation
translation
differences
differences
differences
At 31 December
At 31
At
At
December
31
31
December
December
Foreign
currency
Foreign
translation
currency
reserve
translation reserve
At 1 January At 1 January
Share premium
Share
Share
Share
premium
reserve
premium
premium
reserve
reserve
reserve
Currency translation
Currency
differences
translation differences
At 31
1 January
At 1At
January
AtAt
11January
January
At
December
31
December
Issue of Issue
additional
Issue
Issue
of additional
of
shares
ofadditional
additional
- shares
at ashares
premium
shares
- at a- -at
premium
ata apremium
premium
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reserve
Share
premium reserve
At 31premium
December
At 31
At
At
December
31
31December
December
$$
$
$
$$
$
$
$$
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
$
$
$
$
$
$
$
$
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
3,558,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
$
$
3,558,000
$$
$
$
3,558,000
3,558,000
$$
$
$
3,558,000
3,558,000
421,199421,199
421,199
421,199
895,861895,861
895,861
895,861
$
$
$
$
$
(229,014)
(229,014)
(229,014)
(229,014)
(474,662)
(474,662)
(474,662)
(474,662)
192,185192,185
192,185
192,185
421,199421,199
421,199
421,199
-
$$
$
$
3,558,000
3,558,000
-$
$
---
-
$$
3,558,000
-$
---
421,199
421,199
895,861
895,861 (229,014)
(229,014)
(474,662)
(474,662) 61,500 61,500
61,500
61,500
61,500 61,500
61,500
61,500
61,500
61,500
61,500
61,500
61,500
61,500
61,500
192,185
192,185
421,199
421,199
- 61,500
----61,500 61,500
61,500
61,500 61,500 61,500
61,500
61,500 61,500 61,500
61,500
61,500 61,500 61,500
61,500
61,500
At 1 January At 1 January
Total reserves
TotalTotal
Total
reserves
reserves
reserves
Issue of additional
Issue
shares
of additional
- at a premium
shares - at a premium
At 31 DecemberAt 31 December
Nature and
Nature
purpose
Nature
Nature
and purpose
and
of
and
reserves
purpose
purpose
of reserves
ofofreserves
reserves
61,500
61,500
61,500
61,500
61,500
61,500
61,500
61,500
253,685253,685
253,685
253,685
482,699482,699
482,699
482,699 61,500 61,500
61,500
61,500 61,500 61,500
61,500
61,500
61,500
61,500
61,500
61,500
61,500
61,500
61,500
61,500
Total
reserves
Total
reserves
Foreign
currency
Foreign
Foreign
Foreign
currency
translation
currency
currency
translation
reserve
translation
translation
reserve
reserve
reserve
253,685
253,685
482,699
482,699
61,500
61,500
61,500
61,500
Foreign currency
Foreign
Foreign
Foreign
currency
translation
currency
currency
translation
reserve
translation
translation
is
reserve
used
reserve
reserve
to
is used
record
isisused
to
used
exchange
record
totorecord
record
exchange
differences
exchange
exchange
differences
arising
differences
differences
from
arising
arising
the
arising
from
translation
from
the
fromtranslation
the
the
oftranslation
translation
the financial
of the
ofoffinancial
the
statements
thefinancial
financial
statements
of
statements
statements
foreign
of subsidiary.
foreign
ofofforeign
foreign
subsidiary.
Itsubsidiary.
is
subsidiary.
It is ItItisis
Nature
and purpose of reserves
Nature and purpose
of reserves
Nature
and
purpose
of
reserves
also used
also
to also
used
record
alsoused
to
used
the
record
toto
effect
record
record
theofeffect
the
hedging
the
effect
effect
of hedging
net
ofofhedging
investments
hedging
net investments
net
netinvestments
ininvestments
foreign
in operations.
foreign
ininforeign
foreign
operations.
operations.
operations.
Foreign currencyForeign
translation
currency
reserve
translation reserve
Share premium
Share
Share
Share
premium
reserve
premium
premium
reserve
reserve
reserve
Foreign
currency
translation
reserve
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translation
currency
reserve
translation
is used to
reserve
record
is exchange
used to record
differences
exchange
arising
differences
from thearising
translation
from of
the
the
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financial statements
of the financial
of foreign
statements
subsidiary.
of foreign
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The share
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premium
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share
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share
premium
reserve
premium
premium
arises
reserve
reserve
reserve
from
arises
the
arises
arises
from
issue
from
the
from
of issue
shares
the
theissue
issue
ofat
shares
of
aof
premium.
shares
shares
at a at
premium.
ata apremium.
premium.
Foreign
currency
is used
to
record
exchange
also used to record
also the
used
effect
to record
oftranslation
hedging
the effect
netreserve
investments
of hedging
net
in foreign
investments
operations.
in foreign differences
operations. arising from the translation of the financial statements
of foreign subsidiary. It is also used to record the effect of hedging net investments in foreign operations.
Share premium reserve
Share premium reserve
The share premium
The reserve
share premium
arises from
reserve
the arises
issue of
from
shares
the at
issue
a premium.
of shares at a premium.
Share premium reserve
The share premium reserve arises from the issue of shares at a premium.
29
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES
TO THE
CONSOLIDATED
FINANCIAL STATEMENTS continued
COMMUNICATIONS
COMMUNICATIONS
(FIJI) LIMITED
(FIJI)
and
LIMITED
Subsidiary
and Subsidiary
company company
COMMUNICATIONS
COMMUNICATIONS
(FIJI)
LIMITED
(FIJI)
and
LIMITED
Subsidiary
and
Subsidiary
company
company
COMMUNICATIONS
COMMUNICATIONS
(FIJI)
LIMITED
(FIJI)
and
LIMITED
Subsidiary
and DECEMBER
Subsidiary
company
company
THE
YEAR
ENDED
31
2014
NOTES
TOFOR
NOTES
THE CONSOLIDATED
TO
THE
CONSOLIDATED
FINANCIAL
FINANCIAL
STATEMENTS
STATEMENTS
continued
continued
NOTES
TO NOTES
THE
CONSOLIDATED
TO
THE
CONSOLIDATED
FINANCIAL
FINANCIAL
STATEMENTS
STATEMENTS
continued
NOTES
NOTES
THETHE
CONSOLIDATED
TO
THE
CONSOLIDATED
FINANCIAL
STATEMENTS
continued continued
continued
OR THETO
YEAR
FOR
ENDED
YEAR
31 ENDED
DECEMBER
31 DECEMBER
2014FINANCIAL
2014 STATEMENTS
FOR
THE
YEAR
FOR
ENDED
THE
YEAR
31
ENDED
DECEMBER
31
DECEMBER
2014
2014
FOR THE YEAR
FOR THE
ENDED
YEAR
31 ENDED
DECEMBER
31 DECEMBER
2014
2014
2. EXPENDITURE
22. COMMITMENTS
EXPENDITURE COMMITMENTS
2.
2. EXPENDITURE
EXPENDITURE
22. COMMITMENTS
COMMITMENTS
EXPENDITURE COMMITMENTS
2. EXPENDITURE
22. COMMITMENTS
EXPENDITURE COMMITMENTS
(a) Capital expenditure
(a) Capital
commitments
expenditure commitments
(a)
(a) Capital
Capital expenditure
expenditure
(a) Capital
commitments
commitments
expenditure commitments
(a) Capital expenditure
(a) Capital
commitments
expenditure commitments
(b) Finance lease
(b) commitments
Finance lease commitments
(b)
(b) Finance
Finance lease
lease
(b) commitments
commitments
Finance lease commitments
(b) Finance lease
(b) commitments
Finance lease commitments
Future commitments
Future in
commitments
respect of finance
in respect
lease
ofare
finance
as follows:
lease are as follows:
Future
Future commitments
commitments
Future in
in
commitments
respect
respect of
of finance
finance
in respect
lease
lease
ofare
are
finance
as
as follows:
follows:
lease are as follows:
Future commitments
Future in
commitments
respect of finance
in respect
lease
ofare
finance
as follows:
lease are as follows:
Within one year
Within one year
Within
Within one
one year
year
Within one year
Within one year
Within one year
Total minimumTotal
leaseminimum
paymentslease payments
Total
Total minimum
minimum
Total
lease
leaseminimum
payments
payments
lease payments
Deduct
future Deduct
finance
future
charges
finance
charges
Total minimum
Total
leaseminimum
payments
lease payments
Deduct
Deduct future
future finance
Deduct
finance charges
future
charges
finance charges
Deduct
future
Deduct
finance
future
charges
finance
charges
Present value of
Present
minimum
value
lease
of minimum
payments
lease payments
Present
Present value
value of
of
Present
minimum
minimum
value
lease
lease
of minimum
payments
paymentslease payments
Present value of
Present
minimum
value
lease
of minimum
paymentslease payments
Analyzed as: Analyzed as:
Analyzed
Analyzed
as:
as: Analyzed
as:
Current
Current
Analyzed
as: Analyzed
as:
Current
Current
Current
Current
Current
Group
Group
Group
Group
Group
2014
2014 2013
Group
Group
2013
2013
2014
2014
2014
$
$
$
2013
2014
2014
$
$
$
$
$
$
$
$517,575517,575
- 517,575
517,575-517,575-- -517,575517,575- -
52,952
52,952
52,952
52,952
52,952
52,952
52,952
(4,440)
52,952
(4,440)
(4,440)
(4,440)
48,512
48,512
48,512
48,512
48,512
48,512
48,512
48,512
133,083
133,083
133,083
133,083
52,952
52,952
52,952
52,952
52,952
(4,440)
52,952
(4,440)
(4,440)
48,512
48,512
48,512
48,512
48,512
48,512
133,083
133,083
133,083
Holding Company
Holding Company
Holding Company
Company
2013 2014Holding
2014Holding
2013 Company
Holding Company
Holding
Company2013
2013
2014
2014
2014
2013
2013
2013
$
$
$
$
$
2013
2014
2014
2013
2013
$
$
$
$
$
$
$
$
$
$$
-$
517,575
517,575
- 517,575
517,575
-517,575-- 517,575
517,575-
------ --
---
52,952
52,952
52,952
52,952
52,952
52,952
52,952
(4,440)
52,952
(4,440)
(4,440)
(4,440)
-48,512
-48,512
48,512
-48,512
-- --
- 48,512
- 48,512
48,512
- 133,083
-48,512
133,083
133,083
133,083
-
52,952
52,952
52,952
52,952
52,952
(4,440)
52,952
(4,440)
(4,440)
48,512
48,512
48,512
48,512
48,512
48,512
133,083
133,083
133,083
-
--------
----
----
--
(c) Operating(c)
leaseOperating
commitments
lease commitments
(c)
(c) Operating
Operating(c)
lease
leaseOperating
commitments
commitments
lease commitments
(c) Operating(c)
leaseOperating
commitments
lease commitments
Future commitments
Future in
commitments
respect of operating
in respectlease
of operating
are as follows:
lease are as follows:
Future
Future commitments
commitments
Future in
in
commitments
respect
respect of
of operating
operating
in respect
lease
lease
of operating
are
are as
as follows:
follows:
lease are as follows:
Future commitments
Future in
commitments
respect of operating
in respectlease
of operating
are as follows:
lease are as follows:
Within one year
Within one year
146,114
146,114
558,615
558,615
146,114
146,114
146,114
Within
Within
one
one
year
year
Within
one
year
146,114
146,114
146,114
558,615
558,615
558,615
146,114
146,114
146,114
146,114
146,114
After
After
but not
one
more
year
than
but not
fivemore
yearsthan five years
586,788
586,788
586,788
586,788
586,788
586,788
586,788
Withinone
oneyear
year
Within
one
year
146,114
146,114
558,615
558,615
146,114
146,114
146,114
After
After
one
one
year
year
After
but
but
not
not
one
more
more
year
than
than
but
not
five
five
more
years
years
than
five
years
586,788
586,788
586,788
586,788
586,788
586,788
586,788
586,788
586,788
586,788
586,788
More
five More
years
than
five than
years
484,052
484,052
621,764
621,764
484,052
484,052
621,764
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one year
After
but not
onemore
year
but not
fivemore
yearsthan five years
586,788
586,788
586,788
586,788
586,788
586,788
586,788
More
More than
than five
five More
years
yearsthan five years
484,052
484,052
484,052
621,764
621,764
621,764
484,052
484,052
484,052
621,764
621,764
More thanlease
fiveMinimum
More
yearsthanlease
five payments
years
484,052
484,052
621,764
621,764
484,052
484,052
621,764
Minimum
payments
1,216,954
1,216,954
1,767,167
1,767,167
1,216,954
1,216,954
1,354,666
Minimum
Minimum lease
lease Minimum
payments
paymentslease payments
1,216,954
1,216,954
1,216,954
1,767,167
1,767,167
1,767,167
1,216,954
1,216,954
1,216,954
1,354,666
1,354,666
Minimum lease Minimum
paymentslease payments
1,216,954
1,216,954
1,767,167
1,767,167
1,216,954
1,216,954
1,354,666
The group has The
lease
group
agreements
has lease
foragreements
office space.
forThe
office
annual
space.
lease
Therentals
annualare
lease
recognized
rentals are
as an
recognized
expense as
in the
an expense
current year.
in the current year.
group
hasgroup
lease
agreements
forspace.
office
space.
The
annual
lease
rentals
are
an
expense
the
current
year.
The
The The
group
group
has
has The
lease
lease
agreements
agreements
has
lease
for
foragreements
office
office
space.
forThe
The
office
annual
annual
space.
lease
lease
The
rentals
rentals
annual
are
are
lease
recognized
recognized
rentals
are
as
asrecognized
an
an
recognized
expense
expense as
as
in
in the
the
an expense
current
current year.
year.
inin
the
current
year.
The group has The
lease
group
agreements
has lease
foragreements
office space.
forThe
office
annual
space.
lease
Therentals
annualare
lease
recognized
rentals are
as an
recognized
expense as
in the
an expense
current year.
in the current year.
$
$
$
$
$
$
$
3. CONTINGENT
23. LIABILITIES
CONTINGENT LIABILITIES
$
$
$
$
$
$
$
$
$
$
$
3.
3. CONTINGENT
CONTINGENT
23. LIABILITIES
LIABILITIES
CONTINGENT LIABILITIES
$
$
$
$
$
$
$
23. LIABILITIES
3. CONTINGENT
CONTINGENT LIABILITIES
Fiji Electricity Authority
Fiji Electricity Authority
8,660
8,660 8,660
8,660 8,660
8,660 8,660
Fiji
Fiji Electricity
Electricity
Authority
Authority
Fiji Electricity
Authority
8,660
8,660
8,660 8,567
8,660
8,660
8,660 8,567
8,660
8,660
8,660 8,567
8,660
8,660
Telecom
Fiji Limited
Telecom
Fiji Limited
8,567
8,567
8,567
8,567
Fiji Electricity
Authority
Fiji Electricity
Authority
8,660
8,660 8,660
8,660 8,660
8,660 8,660
Telecom Fiji Limited
8,567 8,567
8,567 8,567
8,567 8,567
Telecom Fiji Limited
8,567
Telecom Fiji Limited
Telecom Fiji Limited
8,567
8,567 8,567
8,567 8,567
8,567 8,567
17,227
17,22717,227
17,22717,227
17,22717,227
17,22717,227
17,22717,227
17,22717,227
17,227
17,227
17,22717,227
17,22717,227
17,22717,227
146,114
146,114
586,788
146,114
586,788
621,764
586,788
621,764
621,764
1,354,666
1,354,666
1,354,666
$
$
$
8,660
8,660
8,567
8,660
8,567
8,567
17,227
17,227
17,227
4. RELATED 24.
PARTY
RELATED
DISCLOSURES
PARTY DISCLOSURES
$
$
$
$
$
$
$
$
4.
4. RELATED
RELATED 24.
PARTY
PARTY
RELATED
DISCLOSURES
DISCLOSURES
PARTY DISCLOSURES
$
$
$
$
$
$
$
$
$
$
$
$
4. RELATED 24.
PARTY
RELATED
DISCLOSURES
PARTY DISCLOSURES
$
$
$
$
$
$
$
$
(a) Directors (a) Directors
(a)
(a) Directors
Directors (a) Directors
(a) Directors (a) Directors
Directors at anytime
Directors
during
at anytime
the yearduring
were as
thefollows:
year were as follows:
Directors
Directors
at
at anytime
anytime
Directors
during
during
at anytime
the
the
year
year
during
were
were
as
as
the
follows:
follows:
year
wereShaenaz
as
follows:
Mathew
Wilson,
Mathew
William
Wilson,
Parkinson,
William
Pramesh
Parkinson,
Sharma
Pramesh
and
Sharma
Voss.
and Shaenaz Voss.
Directors
at anytime
Directors
during
at anytime
the
year
during
were
as
the
follows:
year
were as
follows:
Mathew
Mathew Wilson,
Wilson,Mathew
William
WilliamWilson,
Parkinson,
Parkinson,
William
Pramesh
Pramesh
Parkinson,
Sharma
Sharma
Pramesh
and
and Shaenaz
Shaenaz
SharmaVoss.
Voss.
and Shaenaz Voss.
Mathew Wilson,Mathew
WilliamWilson,
Parkinson,
William
Pramesh
Parkinson,
Sharma
Pramesh
and Shaenaz
SharmaVoss.
and Shaenaz Voss.
Ownership interest
Ownership interest
Ownership interest
Ownership interest
(b) Ownership(b)
interest
Ownership
in related
interest
parties
in related parties
Ownership
Ownership interest
interest
Ownership interest
Ownership
Ownership interest
interest
Ownership interest
(b)
(b) Ownership
Ownership(b)
interest
interest
Ownership
in
in related
related
interest
parties
parties
in related parties
Ownership
interest
Ownership
interest
Ownership
interest
Ownership
(b) PNG
Ownership
(b)
interest
Ownership
in
related
interest
parties
in
related
parties
FM Limited
PNG FM Limited
100%
100%
100% interest
100%
PNG
PNG
FM
FM
Limited
Limited
PNG
FM
Limited
100%
100%
100%
100%
100%
100%
Total
Event
Company
Total
Event
Limited
Company Limited
100%
100%
100%
PNG FM
Limited
PNG FM
Limited
100%
100% 100%
100%
100%
----------Total
Total
Event
Event
Company
Company
Total
Event
Limited
Limited
Company
Limited
100%
100%
100%
100%
100%
100%
231
Holdings
231
Limited
HoldingsLimited
Limited
50%
50%
50%
50%
50%
50% 100%
50%
50%
TotalWaimanu
Event Company
TotalWaimanu
Event
Limited
Company
100%
100%
100%
231
231 Waimanu
Waimanu
Holdings
Holdings
231
Waimanu
Limited
Limited
Holdings
Limited
50%
50%
50% 50%
50%
50% 50%
50%
50% 50%
50%
50%
Paradise
Cinemas
Paradise
(PNG)
Cinemas
Limited
(PNG) Limited
Limited
41.7%
41.7%
36.0%
231 Waimanu
Holdings
231
Waimanu
Limited
Holdings
50%
50% 36.0%
50%
50% 50%
50%
50%
50%
Paradise
Paradise Cinemas
Cinemas
Paradise
(PNG)
(PNG)Cinemas
Limited
Limited (PNG) Limited
41.7%
41.7%
41.7% 36.0%
36.0%
36.0%
--Paradise Cinemas
Paradise
(PNG)Cinemas
Limited (PNG) Limited
41.7%
41.7% 36.0%
36.0%
(c) The following
(c) related
The following
party transactions
related partyoccurred
transactions
during
occurred
the financial
during
year:
the financial year:
(c)
(c) The
The following
following
(c) related
related
The following
party
party transactions
transactions
related party
occurred
occurred
transactions
during
during
occurred
the
the financial
financial
during
year:
year:
the financial year:
(c) The
(c) related
The
following
party
transactions
related
occurred
transactions
during
the financial
during
the financial year:
(i) following
(i)with
Transactions
Transactions
consolidated
withparty
subsidiary
consolidated
- PNG
subsidiary
FMoccurred
Limited
- PNG
FMyear:
Limited
$
$
$
$
(i)
(i) Transactions
(i)with
Transactions
consolidated
with
subsidiary
consolidated
PNG
subsidiary
FM
Limited
PNG
FM
$
$
$
$
$
$
(i) Transactions
(i)with
Transactions
consolidated
withsubsidiary
consolidated
- PNG
subsidiary
FM Limited
- PNG FM Limited
Limited
$
$
$
$
Costs incurred Costs
on behalf
incurred
of the
onsubsidiary
behalf of the
and subsidiary
recovered and recovered
250,500
250,500
216,702
216,702
Costs
Costs incurred
incurred
Costs
on
on behalf
behalf
incurred
of
of the
the
onsubsidiary
subsidiary
behalf of and
the
and subsidiary
recovered
recovered and recovered
250,500
250,500
250,500
216,702
216,702
216,702
Management
fees
Management
fees
36,000
36,000
36,000
36,000
Costs incurred Costs
on behalf
incurred
of the
onsubsidiary
behalf of the
and subsidiary
recovered and recovered
250,500
250,500
216,702
216,702
Management
Management fees
fees
Management fees
36,000
36,000
36,00036,000
36,000
36,000
Management fees
Management fees
36,000
36,00036,000
36,000
Transactions
231 Waimanu
with Rd
231Holdings
Waimanu
Limited
Rd Holdings Limited
$
$
$
$
(ii) Transactions
(ii)with
Transactions
231
with
231
Holdings
Waimanu
Limited
Rd
$
$
$
$
$
$
(ii)
(ii) Transactions
(ii)with
(ii) Transactions
(ii)with
Transactions
231 Waimanu
Waimanu
with Rd
Rd
231
Holdings
Waimanu
Limited
Rd Holdings
Holdings Limited
Limited
$
$
$
$
Rental of officeRental
and studio
of office
space
and studio space
338,142
338,142
137,712
137,712
Rental
Rental of
of office
office
Rental
and
and studio
studio
of office
space
space
and studio space
338,142
338,142
338,142
137,712
137,712
137,712
Dividends
received
Dividends
received
100,000
100,000
100,000
100,000
Rental of office
Rental
and studio
of office
space
and studio space
338,142
338,142
137,712
137,712
Dividends
Dividends received
received
Dividends received
100,000
100,000
100,000
100,000
100,000
100,000
Dividends
received
Dividends
received
100,000
100,000
100,000
100,000
Related party transactions
Related partyare
transactions
at normal commercial
are at normal
terms
commercial
and conditions.
terms and conditions.
Related
Related party
party transactions
transactions
Related party
are
are
transactions
at
at normal
normal commercial
commercial
are at normal
terms
terms
commercial
and
and conditions.
conditions.
terms and conditions.
Related party transactions
at normal commercial
terms
and conditions.
Related partyare
transactions
are at normal
commercial
terms and conditions.
30
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES
TO THE(FIJI)
CONSOLIDATED
FINANCIAL STATEMENTS continued
OMMUNICATIONS
COMMUNICATIONS
(FIJI) LIMITED
and
LIMITED
Subsidiary
and company
Subsidiary company
THE
YEAR
ENDED FINANCIAL
31 DECEMBER
2014
NOTES TO FOR
THE
NOTES
CONSOLIDATED
TO THE
CONSOLIDATED
FINANCIAL
STATEMENTS
STATEMENTS
continued
continued
OR THE YEAR
FOR ENDED
THE YEAR
31 DECEMBER
ENDED 31 DECEMBER
2014
2014
Group
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company Group
2014
2014 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
continued
$
$
$
FOR (d)
THE
YEAR
ENDED
31
DECEMBER
2014
(d) Compensation
of
Compensation
key
management
of keypersonnel
management
personnel
DISCLOSURES
PARTYcontinued
DISCLOSURES continued
4. RELATED PARTY
24. RELATED
Short-term employee
Short-term
benefits
employee benefits
Superannuation
Superannuation
contribution
contribution
PARTY DISCLOSURES
continued
24. RELATED
(d) Compensation of key management personnel
(e) Owings from
(e)
related
Owings
entities
from related entities
Short-term employee benefits
Paradise Cinemas
Paradise
(PNG) Cinemas
Limited (PNG) Limited
Superannuation contribution
PNG FM LimitedPNG FM Limited
(e) Owings from related entities
(f) (Receivables)/owing
(f) (Receivables)/owing
to related entity
to related entity
Paradise Cinemas (PNG) Limited
PNG FM LimitedPNG FM Limited
399,618
31,969
431,587
$
370,573
370,573
$
-
(g) Directors' interests
(g)
Directors'
in an employee-share
interests intoanrelated
employee-share
incentive
plan incentive plan
(f) (Receivables)/owing
entity
(g) Directors’ interests in an employee-share incentive plan
399,618
479,357
Group
31,969
38,349
2014
517,706
$431,587
Holding Company
Holding Company
2013 2014
2014 2013
2013
$
$
$
$
$
479,357
296,161
38,349
23,693
2013
319,854
$517,706
296,161
293,460
Holding
Company 293,460
23,693
23,477
23,477
2014
2013
316,937
$319,854
$316,937
$
$
399,618
370,573
299,473
31,969
431,587
370,573
299,473
$
$
$
370,573
-
$
$
479,357
299,473 38,349
- 431,569
517,706
299,473
431,569
$
$
$
299,473
-(161,979)
$
$
296,161
23,693
431,569
429,309
319,854
431,569
429,309
$
$
$
(161,979)
252,703
431,569
$
293,460
23,477
429,309
316,937
429,309
$
$
252,703
429,309
$
$
$
$
370,573
-
-(161,979)
299,473
(161,979)
252,703
431,569
No share
options
No
share
options
granted
have
tobeen
staff,
granted
executives
to staff,
andstaff,
executives
the non-executive
and the
members
non-executive
of themembers
Board
of
of
Directors
the Board
under
of- Directors
this
scheme.
under
this scheme.
PNG
FM been
Limited
(161,979)
Nohave
share
options
have
been
granted
to
executives
and
the non-executive
members
of
the
Board
of
Directors
under
this scheme.
-
5. COMPANY25.
DETAILS
COMPANY DETAILS
-
(161,979)
252,703
429,309
252,703
252,703
(g) Directors'
interests in an employee-share incentive plan
25. COMPANY
DETAILS
(a) Company
incorporation
(a) Company
incorporation
No share options
have been granted to staff, executives and the non-executive members of the Board of Directors under this scheme.
(a)
Company
incorporation
The legal form of
The
the
legal
company
form ofisthe
a public
company
company,
is a public
domiciled
company,
and incorporated
domiciled and
in incorporated
the Republic in
of the
Fiji under
Republic
theofCompanies
Fiji under the
Act,Companies
1983.
Act, 1983.
The legal form of the company is a public company, domiciled and incorporated in the Republic of Fiji under the Companies
DETAILS
25. COMPANY
Act, 1983.
(b) Registered
(b)
office/Company
Registered
office/Company
operation
operation
The company's
operations
company's
andoperations
registered and
office
registered
is located
office
at 231
is located
Waimanu
at Road,
231 Waimanu
Suva while
Road,
the Suva
subsidiary
while the
is insubsidiary
Papua New
is Guinea.
in PapuaThe
New
associate
Guinea. The associate
(a) The
Company
incorporation
(b) Registered
office/Company
operation
company
namely
company
231 Waimanu
namely
Rd
231
Holdings
Waimanu
Limited
Rd Holdings
operateLimited
from 231
operate
Waimanu
fromRoad,
231 Waimanu
Suva.
Road, Suva.
The legal form of the company is a public company, domiciled and incorporated in the Republic of Fiji under the Companies Act, 1983.
The company’s operations and registered office is located at 231 Waimanu Road, Suva while the subsidiary is in Papua New (c) Number
of (c)
employees
Number
employees
Guinea.ofThe
associate company
namely 231 Waimanu Rd Holdings Limited operate from 231 Waimanu Road, Suva.
(b) Registered
office/Company
operation
As at balance date,
As atthe
balance
company
date,employed
the company
a total
employed
of 125 employees
a total of 125
(Group:
employees
254 employees
(Group: 254
- 2013:
employees
164 employees).
- 2013: 164 employees).
The company's operations and registered office is located at 231 Waimanu Road, Suva while the subsidiary is in Papua New Guinea. The associate
(c) Number
of
employees
company namely 231 Waimanu Rd Holdings Limited operate from 231 Waimanu Road, Suva.
6. FINANCIAL
RISKFINANCIAL
MANAGEMENT
RISK OBJECTIVES
MANAGEMENT
AND
OBJECTIVES
POLICIESemployed
AND POLICIES
26.
As at balance
date, the
company
a total of 125 employees (Group: 254 employees - 2013: 164 employees).
(c) Number of employees
The group's principal
The group's
financial
principal
liabilities
financial
comprises
liabilities
bankcomprises
overdrafts,
bank
finance
overdrafts,
leases, finance
hire purchase
leases,contracts,
hire purchase
trade
contracts,
payables trade
and loans.
payables
The and
mainloans.
purpose
Theof
main purpose o
26. FINANCIAL
RISK
MANAGEMENT
OBJECTIVES
AND
POLICIES
atis balance
date,
company
employed
total
of operations.
125
employees
(Group:
254
employees
employees).
these financial liabilities
theseAsfinancial
to raise
liabilities
finance
isthe
to
for
raise
the finance
group's
for
operations.
thea group's
The
group
has various
The group
financial
has
various
assets
financial
such -as2013:
assets
trade 164
receivables
such
as trade
andreceivables
cash , which
and
arise
cash , which arise
itsdirectly
The
group’s
principal
financial liabilities comprises bank overdrafts, finance leases, hire purchase contracts, trade payables and
directly from
operations.
from its
operations.
MANAGEMENT
ANDliabilities
POLICIES is to raise finance for the group’s operations. The group has various financial
26. FINANCIAL
loans. TheRISK
main
purpose of OBJECTIVES
these financial
The main risk arising
The
main
from
riskthe
arising
company's
from
the
financial
company's
statements
financial
arestatements
interest
rate
areand
interest
credit
rate
risk.
and
Thecredit
Boardrisk.
of Directors
The Boardreviews
of Directors
and agrees
reviews
policies
and agrees
for
policies fo
assets
such
as
trade
receivables
and
cash
, which
arise directly
from
its
operations.
group's
principal
financial
liabilities
comprises bank
overdrafts, finance leases, hire purchase contracts, trade payables and loans. The main purpose o
managing each The
managing
of these
risks
each
which
of these
are
risks
summarized
which
are
below.
summarized
below.
these financial liabilities is to raise finance for the group's operations. The group has various financial assets such as trade receivables and cash , which arise
risk
The main
arising from the company’s financial statements are interest rate and credit risk. The Board of Directors reviews
Interest rate
Interest
raterisk
risk
directly
from
its operations.
and
agrees
policies
for managing
each
ofin these
risks
which
are summarized
below.
The group's exposure
The group's
to theexposure
risk of changes
to the risk
in market
of changes
interest
market
rates relates
interestprimarily
rates relates
to theprimarily
group's to
long-term
the group's
debtlong-term
obligationsdebt
withobligations
floating interest
with floating
rates. interest rates
The isgroup's
main
risk
arising
the
financial
statements
are
interest
raterate
anddebts.
credit risk. The Board of Directors reviews and agrees policies fo
The group's policy
The
to manage
policy
itsisinterest
tofrom
manage
costcompany's
itsusing
interest
a mix
cost
of fixed
using
and
a mix
variable
of fixed
rate
and
debts.
variable
managing
each risk
of these risks which are summarized below.
Interest rate
The following sensitivity
The following
analysis
sensitivity
is based
analysis
on theisinterest
based on
rate
the
risk
interest
exposures
rate in
risk
existence
exposures
at in
the
existence
balance date:
at the balance date:
2014
2013
The group’s exposure to the risk of changes in market interest rates relates primarily to the group’s long-term debt obligations Increase /
Increase /
with floating interest rates. The group’s policy is to manage its interest cost
using a mix of fixed
variable
rate
Effectand
on profit
Effect
on debts.
profit
(decrease) in (decrease)
in
Interest rate risk
The group's exposure to the risk of changes in market interest rates relates primarily to the group's long-term debt obligations with floating interest rates
before tax
interest
rate interestbefore
rate tax
The group's policy is to manage its interest cost using a mix of fixed and variable rate
debts.
The following sensitivity analysis is based on the interest rate risk exposures in existence at the balance
date: $
$
The following sensitivity analysis is based on the interest rate risk exposures in existence at the balance date:
+10%
+10%
2014
(16,768)
(16,768)
Increase
-10%
-10% /
16,768
16,768
Effect
on
profit
(decrease) in
tax
interest
+10%
+10%rate (11,536) before(11,536)
2013
-10%
2014
-10%
+10%
-10%
+10%
-10%
2013
31
11,536
$ 11,536
(16,768)
16,768
(11,536)
11,536
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED and Subsidiary company
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 31 DECEMBER 2014
COMMUNICATIONS
COMMUNICATIONS
(FIJI)RISK
LIMITED
(FIJI)
LIMITED
and Subsidiary
and
Subsidiary
company
26. FINANCIAL
MANAGEMENT
OBJECTIVES
AND company
POLICIES continued
NOTES TO
NOTES
THE
CONSOLIDATED
TO
THE
CONSOLIDATED
FINANCIAL
FINANCIAL
STATEMENTS
STATEMENTS
continued
COMMUNICATIONS (FIJI) LIMITED and Subsidiarycontinued
company
Foreign
currency
risk 31 DECEMBER
OR THEFOR
YEAR
THE
ENDED
YEAR
31
ENDED
DECEMBER
2014
2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
The group has an investment in Papua New Guinea. The movement in the Kina/Fiji dollar exchange rates are recorded in equity and
FOR
THE
YEARonENDED
DECEMBER
2014
will
be
realized
disposal31
of
the
investment.
6. FINANCIAL
26. RISK
FINANCIAL
MANAGEMENT
RISK MANAGEMENT
OBJECTIVES
OBJECTIVES
AND
POLICIES
AND
continued
POLICIES continued
Foreign currency
Foreign
risk
currency
risk
26.
FINANCIAL
RISK
MANAGEMENT OBJECTIVES AND POLICIES continued
The group has transactional currency exposures. Such exposures arises from purchases by the group in currencies other than Fijian
The group has
TheForeign
an
group
investment
has an investment
inrisk
Papua New
in Papua
Guinea.New
TheGuinea.
movement
The in
movement
the Kina/Fiji
in the
dollar
Kina/Fiji
exchange
dollarrates
exchange
are recorded
rates arein recorded
equity and
in equity
will be and
realized
will be
on realized on
currency
dollars.
disposal of the
disposal
investment.
of the investment.
The group has an investment in Papua New Guinea. The movement in the Kina/Fiji dollar exchange rates are recorded in equity and will be realized on
The group has
Thetransactional
group
transactional
currency exposures.
currency Such
exposures.
exposures
Sucharises
exposures
from arises
purchases
fromby
purchases
the group
byinthe
currencies
group inother
currencies
than Fijian
otherdollars.
than Fijian dollars.
Credit
riskhas
disposal
of the investment.
isThe
the
group’s
that allcurrency
customers
who wish
trade onarises
creditfrom
terms
are subject
creditin verification
procedures.
addition,
group
haspolicy
transactional
exposures.
Suchtoexposures
purchases
by thetogroup
currencies other
than FijianIn
dollars.
Credit risk It
Credit
risk
receivable
balances
are
onwho
anwish
ongoing
basis
with
the
result
thatverification
the
group’s
exposure
bad debts
is notbalances
significant.
It is the group's
It isCredit
the
policy
group's
that
all
policy
customers
that monitored
all who
customers
wish to
trade
on to
credit
trade
terms
on credit
are subject
terms
are
to credit
subject
to credit
verification
procedures.
procedures.
Into
addition,
In
receivable
addition,
receivable
arebalances are
risk
There
are
no
significant
concentrations
of
credit
risk
within
the
group.
monitored on
monitored
an ongoing
on an
basis
ongoing
with the
basis
result
withthat
the the
result
group's
that the
exposure
group'stoexposure
bad debts
to isbad
notdebts
significant.
is not significant.
There are no
There
significant
are no concentrations
significant concentrations
of credit of credit
It is the group's policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are
risk within the
riskgroup.
within the group.
monitored on an ongoing basis with the result that the group's exposure to bad debts is not significant. There are no significant concentrations of credi
Liquidity
risk
risk within
Liquidity riskLiquidity
risk the group.
The table below summarizes the maturity profile of the Group’s liabilities at 31 December based on contractual undiscounted
The table below
TheLiquidity
table
summarizes
below
the maturitythe
profile
maturity
of the
profile
Group's
of the
liabilities
Group's
at liabilities
31 December
at 31based
December
on contractual
based on contractual
undiscounted
undiscounted
payments: payments:
risk summarizes
payments:
The table below summarizes the maturity profile of the Group's liabilities at 31 December based on contractual undiscounted payments:
$
$
$
$
$
$
$
$
31 December
312014
December 2014
Total
Total On demand On demand< 1 year
< 1 year 1 - 5 years 1 - 5 years> 5 years > 5 years
$
$
$
$
Interest-bearing
Interest-bearing
borrowings
1,864,044 1,864,044
189,567 On189,567
1,073,360
31
Decemberborrowings
2014
Total
demand 601,117 <601,117
1 year 1,073,360 1
- 5 years
> 5 years
Trade and other
Tradepayables
and other payables
1,111,611 1,111,611 187,990 187,990 923,621 923,621
Interest-bearing borrowings
1,864,044
189,567
601,117
1,073,360 3,108,737 3,108,737
377,557 377,557
1,573,249 1,573,249
1,157,931 1,157,931
- 1,524,738
1,073,360
2,975,655
Trade and other payables
1,111,611
187,990
923,621
3,108,737
377,557
1,573,249
1,157,931
31 December
312013
December 2013
Total
Total On demand On demand< 1 year
< 1 year 1 - 5 years 1 - 5 years> 5 years > 5 years
Interest-bearing
Interest-bearing
borrowings
31
Decemberborrowings
2013
Trade and other
Tradepayables
and other payables
Interest-bearing borrowings
Trade and other payables
1,872,891 1,872,891
103,711 On103,711
1,021,204
Total
demand 376,778 <376,778
1 year 1,021,204 1
- 5 years 371,198 > 371,198
5 years
1,304,025 1,304,025 267,620 267,6201,036,405 1,036,405
1,872,891
103,711
376,778
1,021,204
371,198
3,176,916 3,176,916
371,331 371,331
1,413,183 1,413,183
1,021,204 1,021,204
371,198 371,198
1,304,025
267,620
1,036,405
3,176,916
371,331
1,413,183
1,021,204
371,198
Capital
management
Capital management
Capital management
The primaryThe
The
objective
primary
ofobjective
the
group's
of of
the
capital
group's
management
capital
management
is to
ensureisthat
to ensure
itismaintains
that ita maintains
strong
a strong
ratingcredit
arating
healthy
andcapital
arating
healthy
ratio
capital
in aorder
ratio
to support
incapital
order to support
primary
objective
the
group’s
capital
management
to ensure
that itcredit
maintains
aand
strong
credit
and
healthy
Capital management
its businessratio
its
and
business
maximize
andshareholder
maximize
shareholder
value.
value.
in
order
to
support
its
business
and
maximize
shareholder
value.
The primary objective of the group's capital management is to ensure that it maintains a strong credit rating and a healthy capital ratio in order to suppor
The group manages
Theits
group
itsmanages
capital
its capitaland
structure
makes adjustments
and
makes adjustments
to it, in lighttoofit,changes
in light of
in economic
changes inconditions.
economic To
conditions.
maintainTo
or maintain
adjust the
orcapital
adjust structure,
the capital structure,
business
andstructure
maximize
shareholder
value.
The
groupmay
manages
its
capital
structure
and
makescapital
adjustments
to to
it, shareholders
inorlight
changes
inNoeconomic
conditions.
maintain
the group may
the adjust
group
the
dividend
adjust the
payment
dividend
to
payment
shareholders,
to
shareholders,
return
return
to shareholders
capital
issueofnew
orshares.
issue new
changes
shares. No
were
changes
made were
in To
themade
objectives,
in theorobjectives,
The group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure
polices or processes
polices the
orduring
processes
the structure,
year
during
31the
December
yeargroup
312013
December
and
31
2013
December
and
312014.
December
2014.
adjust
capital
the
may
adjust
the
dividend
payment
to shareholders, return capital to shareholders or issue new
the group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives
shares.
Noorchanges
were
made
in the
objectives,2013
polices
or
processes
during the year 31 December 2013 and 31 December 2014.
processes
the
31 December
anddebt
31
December
The group monitors
Thepolices
group
capital
monitors
usingcapital
a during
gearing
using
ratio,
ayear
gearing
which
ratio,
is netwhich
debt is
divided
net
by total
divided
capital
by2014.
total
plus capital
debt. The
plusgroup's
debt. The
policy
group's
is to policy
keep the
is to
gearing
keep the
ratio
gearing
below ratio below
40%. The group
40%. includes
The group
netincludes
debt, interest-bearing
net debt, interest-bearing
borrowings,borrowings,
trade and other
tradepayables
and other
less
payables
cash and
less
cash
cash
equivalents,
and cash equivalents,
excluding discounted
excluding discounted
operations. operations.
The
group
monitorscapital
capital using
using aa gearing
ratio, which
is net
debtdebt
divided
by total
capitalcapital
plus debt.
The
group's policy
is to
keepisthe
The
group
monitors
gearing
is of
net
divided
byunrealized
total
plus
debt.
group’s
policy
to gearing
keep ratio below
Capital includes
Capital
any
includes
preference
any shares,
preference
equity
shares,
attributable
equity
attributable
toratio,
equitywhich
holders
to equity
the
holders
parent
of less
the parent
any
less anygains
unrealized
reserve.
gainsThe
reserve.
The ratio
groupbelow
includes
netThe
debt,
interest-bearing
borrowings,
trade and otherborrowings,
payables lesstrade
cash and
and cash
excluding
discounted
the40%.
gearing
40%.
group
includes net
debt, interest-bearing
otherequivalents,
payables less
cash and
cash operations
Capital
includes
any
preference
shares,
equity
attributable
to
equity
holders
of
the
parent
less
any
unrealized
gains
reserve.
equivalents, excluding discounted operations. Capital includes any preference shares, equity attributable to equity holders of the
parent less any unrealized gains reserve.
Interest-bearing
Interest-bearing
borrowings borrowings
Trade and other
Tradepayables
and other payables
Interest-bearing borrowings
Less: cash and
Less:
short
cashterm
and deposits
short term deposits
Trade and other payables
Net debt Net debt
Less: cash and short term deposits
Equity
Equity
Net debt
Group
Group
2013
2013
2014
Group
$
$
$
2014
2013
1,864,044 1,864,0441,872,891 1,872,891
$
$
1,111,611 1,111,6111,304,025 1,304,025
1,864,044
1,872,891
(379,585) (379,585)(325,776) (325,776)
1,111,611
1,304,025
2,596,070 2,596,0702,851,140 2,851,140
(379,585)
(325,776)
11,115,13511,115,135
10,224,99210,224,992
2,596,070
2,851,140
2014
$
Total capitalTotal
capital
Equity
11,115,13511,115,135
10,224,99210,224,992
11,115,135
10,224,992
Capital and Capital
netTotal
debt
and
net debt
capital
13,711,20513,711,205
13,076,13213,076,132
11,115,135
10,224,992
Gearing ratio
Gearing
ratio
Capital
and net debt
19%
Gearing ratio
7. SUBSEQUENT
27. SUBSEQUENT
EVENTS
EVENTS
19%
22%
13,711,205
19%
22%
13,076,132
22%
There has27.
not
There
arisen
hasinnot
thearisen
interval
in the
between
interval
thebetween
end of the
the financial
end of the
year
financial
and the
year
date
and
of the
thisdate
report
of any
this other
reportitem,
any other
transaction
item, transaction
or event of or
a material
event ofand
a material and
SUBSEQUENT
EVENTS
27.unusual
SUBSEQUENT
EVENTS
unusual nature
likely,
nature
in thelikely,
opinion
in the
of the
opinion
directors,
of thetodirectors,
affect significantly
to affect significantly
the operations
the of
operations
the company
of the
and
company
the Group,
and the
the results
Group, of
thethose
results
operations
of those or
operations or
There has not arisen in the interval between the end of the financial year and the date of this report any other item, transaction or event of a material and
the state ofThere
the
affairs
state
ofof
the
affairs
company
of the
company
the
Group
andas
the
reported
Group the
as
in reported
these
financial
in these
statements.
financial
statements.
has
not
arisen
inand
the
interval
between
end of
the
financial
year
and the date of this report any other item, transaction or
unusual nature likely, in the opinion of the directors, to affect significantly the operations of the company and the Group, the results of those operations o
event
of a material and unusual nature likely, in the opinion of the directors, to affect significantly the operations of the company
the state of affairs of the company and the Group as reported in these financial statements.
and the Group, the results of those operations or the state of affairs of the company and the Group as reported in these financial
statements.
32
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LIMITED
DISCLAIMER ON ADDITIONAL INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2014
Disclaimer on additional Information
The additional financial information, being the detailed SPSE disclosure requirements and detailed Income Statement has been
compiled by the management of Communications (Fiji) Limited.
To the extent permitted by law, Ernst & Young does not accept liability for any loss or damage which any person, other than
Communications (Fiji) Limited may suffer arising from any negligence on our part. No person should rely on the additional financial
information without having an audit or review conducted.
33
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS (FIJI) LTD
LISTING REQUIRMENTS OF SOUTH PACIFIC STOCK EXCHANGE
(A)
Schedule of each class of shares held by Directors and Senior Management under listing rule 6.31(iv) as at 31st December 2014
NamesNo of Shares
Parkinson Holdings Ltd
1,881,341
Unit Trust of Fiji (Trustee Company) Ltd
388,627
BSP Life(Fiji) Ltd
275,855
Matt Wilson
112,736
Ian Jackson
14,500
Loretta Jackson
9,500
Adrian Au2,000
Malakai Fredrick Veisamasama
2,000
Doris King
1,500
Charles Taylor
1,500
Ateca Toganivalu
1,000
Vijay Narayan
1,000
Vijay Varma
(B)
500
Shareholdings of those persons holding twenty largest blocks of shares under listing rule 6.31(iv)
Shareholder Name
No. of Shares
Total % Holdings
1
Parkinson Holdings Ltd
1,881,341
52.88
2
Unit Trust of Fiji (Trustee Company) Ltd
388,627
10.92
3
BSP Investments (Fiji) Ltd
275,855
7.75
4
JP Bayly Trust
167,333
4.70
5
Matt Wilson
112,736
3.17
6
Deborah Keola Yasmeen Dean
95,262
2.68
7
FHL Trustees Limited ATF Fijiam Holdings Unit Trust
62,000
1.74
8
FijiCare Insurance Ltd
35,000
0.98
9
Lautoka Stevedoring (Fiji) Company Ltd
34,100
0.96
10
Amy Lynn Bergquist
34,000
0.96
11
Aequi-Libria Associates Ltd
26,700
0.75
12
Erik Larson and Karla Larson –Wadd,JTwros
24,400
0.69
13
Ian & Loretta Jackson
24,000
0.67
14
Eta & Radike Qereqeretabua
21,200
0.60
15
Graham Eden
20,891
0.59
16
Reddy’s Enterprises Ltd
20,000
0.56
17
Roland F Schultz
15,000
0.42
18
Nabukeru Village - Apanisa
14,795
0.42
19
Arthur John Reynolds & Julian Reynolds
12,400
0.35
20
Jignesh Chauhan
12,000
0.34
34
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
(C)
Disclosure under listing rule 6.31 (viii)
PNG FM LTD (PNG)FJD
PARADISE CINEMAS (PNG)FJD
231 WAIMANU RD (FIJI)
Percentage of Shareholding 100% 41.67%
$
$
Turnover
7,268,468
2,691,511
338,142
Other Income
49,975
614,420
9,118
7,318,443
3,305,931
347,260
Depreciation and amortization
423,693
1,044,473
28,454
Interest Expense
60,006
397,797
-
Other Expenses
5,623,616
3,652,086
50,674
Income Tax Expense
318,718
-
53,649
6,426,033
5,094,356
132,777
Net Profit/(loss) after Tax
892,410
(1,788,425)
214,483
Total Assets 8,024,090
10,092,385
2,299,217
Total Liabilities
1,439,260
9,349,660
320,036
Shareholders Fund
6,584,830
742,725
1,979,181
(D)
Disclosure under Listing Rule 6.31 (ix)
There were no contracts existing which had director’s material interest in it.
(E)
Disclosure under listing Rule 6.31(xii)
Summary of key Financial Results for the previous five years (Consolidated)
50%
$
2014
2013
2012 * Restated 2011* Restated
2010
2009
Net Profit After Tax
1,474,957
1,515,009
2,219,621
642,379
1,318,038
1,412,000
Current Assets
3,767,229
3,519,750
4,254,733
2,916,787
2,227,503
1,674,925
Non- Current Assets
10,624,533
10,341,148
10,550,686
9,453,014
8,064,207
7,697,295
Total Assets
14,391,762
13,860,898
14,805,419
12,369,801
10,291,710
9,372,220
Current Liabilities
2,107,726
2,147,768
3,256,048
2,314,050
1,842,070
1,411,133
Non- Current Liabilities
1,168,901
1,488,138
1,581,966
2,652,045
1,592,517
1,954,625
Total Liabilities
3,276,627
3,635,906
4,838,014
4,966,095
3,434,587
3,365,758
Shareholders’ Equity
11,115,135
10,224,992
9,967,405
7,403,706
6,857,123
6,006,462
(F)
Disclosure under listing Rule 6.31(xiii)(a) (Consolidated)
2014Cents
2013 Cents
Dividend Declared per share 0.13
0.15
Earnings per share 41.45
42.58
62.38 Net tangible assets per share
266.38
240.00
234.00
(G)
2012 cents
0.24
Disclosure under listing Rule 6.31(xiii) (d)
Share price during the year (cents per share)
2014
Highest 4.10
Lowest
2.94
On 31st December 2014
4.10
35
2011cents
2010cents
2009cents
0.10
0.08
0.08
24.64
37.04
39.69
160.96
151.62
127.28
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
MINUTES OF THE 29TH ANNUAL GENERAL MEETING
Minutes of the Twenty Ninth Annual General Meeting of Shareholders held on the 7th of May 2014, at 231 Waimanu Road, at 10.00am.
Present:
Mr. Matthew Wilson Chairman
Mr. William Parkinson
Mr Pramesh Sharma
Ms. Jyoti Solanki Company Secretary
Ms Elenoa Kaloumaira
Mr. Steven Pickering (E&Y)
Mr. Sikeli Tuinamuana(E&Y)
Ms. Krishika Narayan(SPSE)
Mrs. Doris Southwick
Mrs. Ateca Toganivalu
Ms Misau Atalifo
Mr. Vijay Narayan
Ms. Sufi Dean
Mr Charles Taylor
Ms. Siale
Mr Malakai Vaisamasama
Mr. Philip Wilikibau
Apologies:
Shaenaz Voss
Quorum:
The Quorum required was met and recorded.
Opening of AGM
The Chairman welcomed the shareholders and attendees.
Note of Thanks by Chairman:
Good morning and welcome to this the 29th annual general meeting of Communications Fiji Ltd. By now you will have read reports in
the media about the 2013 results as outlined in the annual report, and in a statement to the South Pacific Stock Exchange.
I described 2013 as a year of contrast. It was divided into two parts. We began very strongly in the first six months and then Group
performance dropped significantly in the last half.
The reason for this was a slump in the economy of Papua New Guinea that had a damaging impact on the revenue figures of our
subsidiary PNG FM. Commercial activity slowed when the construction phase of the massive Liquid Natural Gas (LNG) project wound
down. There was also a shift in commodity prices and a fall in the value of the kina.
Many companies felt the combined effect of these developments in terms of reduced income and profit. Management and employees
in Fiji held the line well in a very competitive market that showed little growth. Their efforts produced a small increase in profit.
You are aware that Group profit for the year was $1,515,009, well down on the record profit for 2012. However, to place the 2013
figure in context, it was the second biggest profit in our history.
I am pleased to tell you that so far this year, Fiji is tracking ahead of 2013. This can be attributed to a lift in the economy related to the
2014 elections. There are positive sentiments among consumers and in the commercial community. We look forward to a successful
transition to parliamentary rule. This in itself will spur further confidence and create an enhanced business climate.
Looking to the future, Fiji, the company’s home, will always be important for the Group. It is a country of enormous unrealized
potential. But, as a media company, we are somewhat constrained by ownership restrictions. If we can successfully argue for these to
36
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
be relaxed somewhat, the outlook here will improve.
PNG FM is central to our vision for expansion. Papua New Guinea is a new economic and business frontier. It has rich natural resources,
a large population by Pacific Island standards and a relatively substantial landmass. It is strategically located as a bridge between Asia
and the Pacific.
This is our twentieth year of operation in PNG and we are therefore familiar with the cyclical nature of the national patterns of growth.
The current cycle is still holding back our performance. We do not expect a significant increase in profit this year.
However, there are indications and forecasts that conditions next year will produce a surge in business. Our priority is to ensure PNG
FM is ready for that.
The company has tripled in size in the last four years and, naturally, challenges have come with that rate of growth. We are continuing
to invest in reorganisation and restructuring to address the transformation.
Internal controls are now tighter and financial management is centralized through head office in Suva, with the assistance of IT and
banking technology. This is working well.
The board had its first meeting in Port Moresby last month. This gave your directors an opportunity to hear from the PNG FM team
leaders and other executives. We were very impressed with their levels of talent, their vision and closeness to the market. The
directors were shown around the first Paradise Cinemas complex and a second one at Waigani to cater to a different market. We hold
a third shareholding in this venture.
The visit to Port Moresby was very productive.
The CFM Group has the most talented and experienced pool of broadcast professionals in the Pacific. For some time we have been
drawing on the skills of executives in Suva - especially in accounting, creative and engineering - to provide short-term hands-on
assistance for the development of the PNG enterprise.
We are now taking this policy of support to a new level with the appointment of Charles Taylor, a versatile and highly experienced
manager from head office, as deputy general manager in Papua New Guinea. Charles will work very closely with PNG FM team leaders
to help them fine-tune the organizational framework and systems and deliver results to budget. He should be in place by June for an
initial term of two years.
This appointment will free up the general manager, Adrian Au, to spend more time on overall supervision, especially on financial
management in close collaboration with the Group Financial Controller, Jyoti Solanki.
Shareholders will obviously have noticed the rise and rise of the CFM share price. This is a testament to the hard work, skill and
determination of many people and to the confidence of the market.
We will shortly be asking you to formalize the payment of a third interim dividend of five cents per share, bringing the final dividend
for 2013 to 15 cents per share.
I thank my fellow directors for their contributions to the work of the board during the year and express our appreciation for the
support of you, the shareholders.
Confirmation of Minutes:
The Minutes of the twenty eighth Annual General Meeting held on the 26th of April 2013 were read and approved.
The motion to adopt the minutes was moved by Mr Vijay Narayan and seconded by Ms. Sufi Dean and approved unanimously.
Matters arising from the Minutes:
No Matters Arising
Audited Accounts:
The Chairman went through Audited Financials page by page and highlighted on major information and disclosures.
Auditors were present to answer any technical questions raised by shareholders, however, there were no major issue or questions
were asked by shareholders.
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COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
The Audited Balance Sheet, Profit and loss and Directors reports were received and adopted. The motion was moved by Pramesh
Sharma and seconded by Ms. Elenoa.
Election of Director:
Mr Matt Wilson was only director due for re-appointment under article 108 of Article of Association of the company. At this stage Mr
Matt Wilson stepped aside as the chairman while William Parkinson assumed the role and moved the motion of his re-appointment.
Pramesh Sharma seconded his motion and all the present shareholders approved unanimously.
Appointment of Auditors:
The meeting resolved to re appoint M/s Ernst & Young as auditors.
The motion was proposed by Mr. Malakai Vaisamasama, seconded by Mr. Pramesh Sharma.
Dividends:
The meeting noted that a 3rd Interim Dividend of $177,900 (5cents per share) has been adopted as the final Dividend for the year
2013.
The motion was moved by Ms. Sufi Dean, seconded by Mr. Malakai Vaisamasama and adopted unanimously.
Other Matters:
William Parkinson clarified about some publicity about the sale of Dominion Insurance. Since Dominion Insurance owns other 50% in
231 Waimanu Rd he will get some clarification on the deal and if required market announcement will be made in near future.
Vote of Thanks:
Pramesh Sharma thanked the CFL & PNGFM management team for the continuing strong performance in 2014.
There being no other business Chairman Mr. Matt Wilson closed the meeting at 10.30 am.
Approved
……………………….
Chairman
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CFL 2014 FINAL EVENT
COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
Fiji’s Biggest Night Out – The Annual Fiji Street Party
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COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
COMMUNICATIONS FIJI LTD
Private Mail Bag, Suva, Fiji. Phone: 3 314 766
e-mail: jyoti@cfl.com.fj
Fax: 3 303 748
APPOINTMENT OF PROXY
THE COMPANY SECRETARY,
I/We__________________________________________of ___________________________________________________________
being a member of Communications Fiji Limited, hereby appoint,
_____________________________________________of ____________________________________________________________
or failing him/her ______________________________of _____________________________________________________________
as my/our proxy, to vote for me/us and on my/our behalf at the Annual General Meeting of Communications Fiji Limited to be held
on 12th of May, 2015 and at any adjournment thereof
Signed this ____________________________________________day of _____________________________________________2015
Signature of Member: ________________________________________________________________________________________
Name of Member: ____________________________________________________________________________________________
Signature of Witness: __________________________________________________________________________________________
In case of a body corporate, this form should be under its Seal or be signed by an Officer or an Attorney duly authorized by it.
This form is to be used in favour of/against* the resolution.
*Strike out which ever is not applicable. Unless otherwise instructed, the proxy may vote as
he/she thinks fit.
This proxy form, to be effective, must reach the registered office of the Company, 231 Waimanu Road, Suva, no less than 48 hours
before the time of holding the meeting.
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COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
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COMMUNICATION FIJI LIMTED ANNUAL REPORT 2014
CFL: FM96, Legend FM, Navtarang, Radio Sargam, Viti FM, Total Event Company,
fijivillage.com & CFL CinemADs,
PNG FM: Nau FM, Yumi FM, Legend FM, Total Event Company,
pngvillage.com & CinemADs PNG
Paradise Cinemas LTD
231 Waimanu Rd LTD
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