Vision Statement
To be an internationally competitive ICT investment company in
the Pacific
Mission Statement
‘To enhance shareholder value by pursuing areas that leverage off
our core investment in ICT’
Values
ATH’s Values are:
Integrity
Practising good corporate governance and being faithful to our
stakeholders.
Accountability
Helping our stakeholders understand how we make decisions;
taking ownership and being answerable and responsible for our
actions.
Innovation
Being at the forefront of product development and offerings.
Efficiency
Delivering on time, and getting things right the first time.
Effectiveness
Ensuring that our business is aligned with, and ultimately
contributes to, the achivement of our Vision.
Goals
ATH’s Goals are:
• Enhance shareholder value.
•
Exploit convergence between the information and telecomunication sectors to enter new areas of business.
•
Acquire existing businesses or create and invest in newly
established businesses to achieve growth
•
Become a company operating internationally and
prominent in the Pacific
•
Adopt international best practices, standards and
methods of operation
AMALGAMATED TELECOM HOLDINGS LIMITED
2nd Floor, Harbour Front
Rodwell Road
P.O.Box 11643
Suva
Phone: (679) 330 8700
Fax: (679) 330 8044
Website: www.ath.com.fj
SUBSIDIARY COMPANIES
Telecom Fiji Limited
Contents
Ganilau House
2
Edward Street
Private Mail Bag
Chairman’s Report
Suva
Phone (679) 3304019
Fax (679) 3001765
Website: www.TelecomFiji.com.fj
General Manager’s Report
Vodafone Fiji Limited
168 Princes Road, Tamavua
Private Mail Bag
Board
Suva
Phone (679) 3312000
Fax (679) 3312007
Website: www.vodafone.com.fj
Transtel Limited
Fifth Floor, Telecom New Wing Building
Edward Street
Private Mail Bag
Suva
Phone (679) 3210528, 3210556
Fax (679) 3310153
Website: www.transtel.com.fj
4
Xceed Pasifika Limited
Fifth Floor Telecom
New Wing Building
of Directors
Edward Street
Private Mail Bag
Suva Phone (679) 3216000
Fax (679) 3216098
Corporate Governance
Website: www.xceed.com.fj
Fiji Directories Limited
Third and Fourth Floors,
Telecom New Wing Building
Edward Street
P O Box 16059
Suva
Phone (679) 3311000
Fax (679) 3300004
Website: www.yellowpages.com.fj
7
8
9
11
Pacific Emerging Technologies Limited
Level 4 Profile
General Post Office Building
Company
Edward Street
Suva
P O Box U43, USP, Suva
(679) 3310025
TelecomPhone
Fiji Limited
Fax (679) 3310021
13
15
16
18
Fiji International Telecommunications Limited
ATH Call Centre Limited Vodafone Fiji Limited
Mercury House
(ATH InTouch)
158 Victoria Parade
Garden City, Raiwai
P O Box 59
P O Box 5040
Suva
Raiwaqa
Fiji Directories Fiji Limited Phone (679) 3312933
Phone (679) 3310333
Fax (679) 3300750
Fax (679) 112244
Vodafone
ATHFijiFiji
Foundation
Internet Services
Limited
(Connect)
Level 4 Ganilau House
Private Mail Bag, Suva
Phone (679) 3300100
Financial
Statements
Fax
(679) 3306269
Website: www.connect.com.fj
Chairman’s Report
Last year, our Board decided that 2011-2012 would be
our “Year of Consolidation.” This theme was certainly
not a retreat from our long-term goal of continued
financial growth, but a refocusing on the Group’s
core strengths and core businesses. This theme was
developed in response to the increasingly competitive
marketplace that now exists in Fiji amongst ICT-related
companies. This new focus resulted in movements
amongst several of our companies towards merging
operations, improving customer response times, and
reducing administrative overhead.
The turbulent global economic situation has – and will
continue to have –some effect on both Fiji and ATH In
spite of the resilience and optimism that our company
nurtures. Despite global trends, Fiji’s GDP achieved
modest growth in 2011, primarily due to an increase
in tourist arrivals, while other areas of Fiji’s economy
have mirrored the reduced growth of other countries.
Real per capita incomes in Fiji have declined over
the past few years, as has private investment, both
of which provide the fuel to power our economy by
creating growth. These indicators are further affected
by internal economic setbacks, such as the January
and March 2012 floods in the Western Division, and
external economic forces such as the continuing global
economic slowdown and financial uncertainty. In the
face of such a forecast, ATH’s decision to engage in
the consolidation of its companies has proven to be a
prudent move.
Our acquisition of 49% shareholding in FINTEL in midMarch 2012, together with ATH’s management rights
on the Fiji Government’s 51% meant that ATH gained
effective control of FINTEL. The 49% share acquisition
from Cable and Wireless Communications brought to
conclusion 110 years of CWC participation in Fiji. As an
international carrier, FINTEL’s success is an essential
cog in ATH’s intention to bring end-to-end service
capability to our customers across the ATH group and
we look forward to the benefits such integration will
bring to our customers and shareholders.
Overall growth for the ATH Group was fairly consistent
with 2010-2011, with a slight increase in consolidated
revenues by $2.3 million. The group recorded EBITDA
growth of 15.5% while Net Profit after tax was
improved by 87.8%. The upward results are particularly
attributed to the profits of FINTEL and reduction in
cost of sales.
Increases in ATH group expenditures have arisen from
significant increases in both fuel and energy costs.
Efforts are being made to contain these costs, including
some of our actions to consolidate our subsidiaries as
well as longer term environmentally friendly solutions
that will reduce and improve efficiencies on energy
usage.
Our cash flow during this past year remained healthy,
increasing from $12.10 million in 2011 to $30.05 million
in 2012. As a result, the dividends declared to our
shareholders remained at 3 cents per share, the same
level as 2011, which was a pay-out of $12.665 million.
Vodafone Fiji Limited once again achieved net positive
growth for the year. Net profit after tax increased
by 12% over the previous year while revenue grew by
5.2%. This growth was due primarily to an increase in
subscriber numbers and good performances in voice,
data and international roaming revenues.
Expansion in the 3G network in both Vanua Levu and
Viti Levu further set the stage for profitability into the
future. This substantial investment in equipment and
facilities to facilitate this expansion will achieve 3G
coverage to 75% of Fiji’s population.
This expansion will provide broadband Internet access
widely across Fiji, bringing the benefits of social
media, mobile-money, mobile commerce (through
M-PAISA), e-learning and the Internet to many new
users, especially those in rural and remote areas who
previously have not had the opportunity to partake.
2
TFL’s core revenue declined by 10.7% over the year.
This was in line with the global trend as fixed line
core revenues continued to be a growth challenge for
countries throughout the world.
It is encouraging however, that broadband – which
represents a key element of future business – grew by
6.1% and TFL intends to increase growth in this area.
This will be supported by accelerating the rollout of
broadband services to new customers.
operations. Again, this move will maximise our use
of available resources and improve the quality and
efficiency of our services.
ATH continues its corporate social responsibility and
philanthropic efforts through the Vodafone ATH Fiji
Foundation. This past year, the Foundation contributed
approximately $1.3 million to various community
projects.
The goal this past year for the ATH Fiji Foundation was
to “Mobilise communities and mobilise social change.”
This goal made use of Vodafone’s extensive mobile
network capability to address some of the most urgent
social challenges in Fiji, particularly during times of
disaster. Two new “Mobiles for Good” programmes
were initiated in 2011. These
Our acquisition of 49% were mHealth and Dr SMS, which
enabled people to obtain advice
shareholding in FINTEL in on various health issues simply
mid-March 2012, together through their mobiles phone.
This growth initiative will be enhanced by TFL’s direct
access to the Southern Cross Cable Network (SCCN),
which began in November 2011 and, together with ATH
control of FINTEL, will ultimately mean an improved
quality experience for our customers.
The International Private Lease
Circuits (IPLC) and Ethernet
Private Line (EPL) services
were launched in late 2011 as a
direct result of our new access
with ATH’s management In the year ahead, ATH will
to the SCCN. It is too soon
to determine whether these
continue to drive broadband
rights on the Fiji
new services will be a success,
business to ensure that we achieve
but the services should be Government’s 51% meant sustainable growth through new
particularly
attractive
to
streams as current core
that ATH has effective revenue
organisations that have offices
revenues become more and more
throughout the world and
constrained. Vodafone’s mobile
control of FINTEL.
need secure and fast data and
broadband enhancement and
communication links. Direct access to SCCN resulted TFL’s high speed broadband rollout together with
in a 28.3% fall in TFL’s direct costs, which should closer end-to-end integration of services with FINTEL
continue to improve profitability in the future.
to improve our customers’ experience of quality, are all
future initiatives along that front.
Fiji Directories Limited experienced a very challenging
year in 2011-2012. There was a marginal decline of In line with this ATH strategy, the group will continue
0.22% in the overall revenue for the company as a to explore new opportunities in the region to identify
result of a downward trend in traditional directory growth potential in a wider market while at the same
advertising revenue. This also resulted in an 11% decline time diversifying ATH’s income base.
in profits for the company over the previous financial
year. This decline was attributed primarily to increases Uncertainty in the global market aside, the ATH Group
in expenses related to personnel and other fixed costs. continues to perform above expectations overall in
New markets, such as Directories Mobile Search and a volatile and ever-changing local market. The Board
Online Advertising, are seen as growth areas for the acknowledges the hard work and astuteness of our
future and should help generate additional revenue in management team, which underpins our efforts to
the new financial year.
achieve growth for our shareholders.
Other ATH consolidation efforts included merging
Xceed Pasifika with TFL in April 2011. This move
reduced overhead and administrative expenses while
combining the technical expertise and strengths of
Xceed Pasifika with the related service operations of
TFL.
In the year ahead, the ATH Call Centre will be
streamlined by merging it with TFL’s customer service
3
Ajith Kodagoda
Chairman
Acting General Manager’s Report
Every year, there is only one thing certain in the
technology-driven world of telecommunications –
the continuous and accelerating pace of change. This
past financial year has been no exception. Changes in
technology, consumer trends, and senior personnel
have provided many new challenges for the ATH Group
of companies this past year. Financially too, it has
been a challenging year. But change can also bring with
it new opportunities.
On a consolidated basis, revenue for the ATH Group
slightly increased from $247 Million to $249 Million
and operating costs have increased slightly as well.
To counter this, the group will continue to undertake
measures to improve efficiency, consolidating parts of
our businesses that can harmonise well together, thus
bringing down operating costs and taking advantage
of potential synergies.
ATH’s Consolidated Net Operating Profit After Tax and
Minority Interest for the year ended 31 March 2012 was
$18.3 million, an increase of $14.2 million as compared
to last year’s result. The $14.2 million increase was due
to improved performances by major subsidiaries in the
Group like Vodafone Fiji and the fair value gain from
the acquisition of FINTEL later in the year.
Consolidated Net Profit
After Tax & Minority Interest
$’000
30,000
20,000
10,000
2009
2010
Consolidated Sales Revenue
$’000
300,000
250,000
200,000
150,000
100,000
2008
2009
2010
2011
2012
The ATH Group’s total assets were $518.8 million, an
increase from $504.0 million last year. The gearing
ratio at year’s end was at 24% compared to 30% last
year.
40,000
2008
There was a slight increase in consolidated sales
revenue by 1%. This increase was largely due to an
increase in sales revenue by Vodafone Fiji, ATH Call
Centre (for its one year of operation), ATH Limited
(with the exception of Telecom Fiji), Fiji Directories and
PET.
50,000
50,000
-
Positive contributions to the Consolidated Net
Operating Profit After Tax and Minority Interests were
forthcoming from ATH, Vodafone Fiji, Fiji Directories
and FINTEL. The rest of the companies recorded
losses, notably Telecom Fiji.
2011
2012
The holding company earned $19.5 million in ordinary
dividends during the year, compared to $16.2 million last
year. The increase was due to favourable performances
by Vodafone Fiji Limited, Fiji Directories and a special
dividend from FINTEL. Interest income from the
company’s portfolio of fixed income securities was
roughly on par with last year. In regards to expenses,
4
there were increases in management fees associated
with rights over Government shareholding in FINTEL
of $6.2 million, compared with $816,000 for last year.
Operating expenses incurred by the holding company
increased by 94%. This increase was primarlily due to
professional services and related fees in relation to the
FINTEL acquisition. However, there were decreases in
Directors fees due the vacant positions on the Board
and reduced overseas travel.
Dividends received by the holding company increased
from $16.2 million last year to $19.5 million for the year
ended 31 March 2012. The dividend contributions were
from VFL, FDL as well as the special dividend from
FINTEL.
Holding Company Revenue Sources
100%
90%
70%
60%
50%
40%
30%
20%
10%
0%
2008
Dividends
2009
2010
Management Fee
2011
2012
Interest
Others
The group’s consolidated EBITDA increased from $94
million last year to $108.6 million for the year ended
31 March 2012. This was supported by the increase in
operating net cash flows to $78.9 million compared to
$76 million for the same period last year. The increase
in earnings, cash flows and the acquisition of FINTEL
saw an increase in cash and cash equivalents held at
year end to $31 million compared to $6.5 million last
year .
This expansion will enlarge VFL’s 3G coverage and
broadband accessibility to an unprecedented 75%
of Fiji’s total population. This expansion – coupled
with continuing investment in broadband across ATH
subsidiaries – means that the group is well on its way
to achieving the National Broadband Policy objectives.
$’000
140,000
120,000
On the upside, this past year has also presented a
new opportunity for TFL with the opening of the
International telecommunications gateway through
the Southern Cross Cable Network (SCCN). This
opportunity has allowed TFL to increase our revenue
from international communications services and has
reduced our direct costs by 28.3%. With Internet traffic
forecasted to grow globally by over 4 times in the next
5 years, this represents a great opportunity for the
company.
100,000
80,000
60,000
40,000
20,000
2008
2009
2010
2011
VFL’s growth was broad based across Corporate
Businesses. This included small and medium
sized businesses that were seeking effective and
efficient solutions to facilitate their communication
requirements through converged fixed line and mobile
solutions for their voice and data needs. The consumer
sector also witnessed good growth in line with global
trends. This occurred primarily through an increase in
the use of smart phones and tablets, which pushed
demand for applications, content and data, further
driving usage on VFL’s 3G network. As uses of these
new technologies continue to grow exponentially in
our islands, the proliferation of these devices, and the
resultant increase in 3G usage, presents great potential
for VFL’s future.
TFL again had a very challenging year with further
erosion of our fixed line subscribers, resulting in
considerable loss of revenue. Globally, this has been
the challenge facing all fixed line telecom providers and
TFL is no exception to this trend.
EBITDA and Net Operating Cash Flow
EBITDA
To cater for anticipated volume growth and to keep
abreast of new developments in communication
technology, we again have had to invest approximately
$26.95 million this past year in network infrastructure.
Most of this investment has been in Vodafone’s
evolving 3G network, which saw an expansion of base
stations this past year, now bringing the total base
stations to 362 throughout the islands of the Fiji group.
Vodafone closed the year with another strong
performance. VFL achieved a net positive growth in
customers, much of which was largely attributable to
an increase in data connections. This growth in data
connections reflects a new trend in our consumer base,
as more and more users turn to their mobiles and
tablets for texting, emailing and surfing the Internet.
80%
0
We have emerged from the year still in a strong
financial position, but further challenges face us in the
near future.
2012
Net Cashflow from Operating activities
5
Overhead costs for TFL increased by 8.7% over the
previous year. This was largely due to an increase in
statutory personnel costs, fuel, electricity and energy
costs. Marketing costs were reduced by 49.1% over
the previous year through judicious spending achieved
primarily by focusing our marketing efforts on more
direct marketing and specific target marketing instead
of using national TV, radio and press media.
early 2012. In recognition of the growing importance
of broadband, ICT and communication infrastructure
development as key enablers of broad-based social
and economic growth, it was clearly in the Group’s best
interests to participate in these forums to help ensure
that any policies undertaken by government strike a
good balance with the interests of ATH stakeholders.
As part of consolidation, the ATH Intouch Call Centre,
TFL further addressed its financial challenges by
having provided contact centre services to TFL
curbing its staff numbers through the recruitment
for the past year, will also be integrated into TFL.
of only essential positions.
This will help sharpen the focus on
Many of these recruitments
service delivery and improve
ATH’s Consolidated support
were internal appointments
the customer experience for TFL and
from existing staff already
Net Operating Profit Connect customers, while driving for
within TFL. Three executive
cost efficiencies. Once these matters
management members left After Tax and Minority have been fully addressed, the operation
the organisation this past
Interest for the year will subsequently explore business
year, and all three were filled in
opportunities in Fiji and abroad.
ended 31 March 2012
acting capacity by existing TFL
staff.
In a year of consolidation and
was $18.3 million,
restructuring, ATH’s modest overall
an increase of $14.2 financial performance was expected.
Integration of operations
between TFL and Connect
of the efforts undertaken by
million as compared to Many
assisted both organisations
the Group have been taken to position
by streamlining operations
the organisation for future growth,
last year’s result.
with a view towards providing
by recognising the changes in our
end-to-end control of the customer experience and a
consumers’ communication habits and purchasing
realignment of their organisational structure to support
trends.
this. This exercise will ultimately result in substantial
cost savings, improve efficiency and provide a higher
Keeping one eye on the future and another on current
quality of experience for our customers.
market demand should enable the ATH Group to
improve its revenue generation in the very near future.
Fiji Directories Limited (FDL) achieved a net profit of
over $1 million this past year, primarily from advertising
A key element of our future strategy will be a proactive
sales. The total income for FDL was $4.1 million which
shift of the group’s overall business profile from
was a marginal decrease over the previous year.
dependency on telecommunication revenue – which
will continue to decline due to market maturity – to
FDL also achieved success through the introduction of
the increasing prevalence of the Internet and new
a new service called Directories Mobile Search (DMS).
media towards new business opportunities that will be
DMS in effect provides the White and Yellow Pages
supported over broadband networks.
right on the consumers’ mobile phones. With directory
searches increasingly moving to the Internet and
Additionally, as stated by the Chairman, ATH will
new media such as mobile phones and tablets, FDL’s
continue to explore new investment opportunities in
traditional revenues will face declines in the future, so it
the region to increase and diversify its revenue base.
was important for the company to develop in this arena
to ensure sustainability. The DMS service was provided
We applaud the hard work, dedication and teamwork
in partnership with Vodafone, further enhancing both
that all of ATH’s staff display towards their work.
companies’ income. Since its introduction, the number
Moving forward together, we should be able to achieve
of users has steadily climbed upwards.
our company’s strategic goals and put a smile back on
the faces of our many shareholders.
During this past financial year, the ATH Group made
important submissions towards the National Broadband
Policy, which was introduced by the Prime Minister
in October 2011. Submissions were also presented to
the Fiji National ICT Policy and Telecommunications
Infrastructure Sharing Regulations that began in
Ivan Fong
Acting General Manager/Company Secretary
6
Board of Directors
Ajith Kodagoda
Chairman
David Kolitagane
Deputy Chairman
Taito Waqa
Director
Umarji Musa
Director
Tom Ricketts
Director
Arun Narsey
Director
Ivan Fong
Acting General Manager
7
Corporate Governance
In accordance with the Reserve Bank of Fiji’s Corporate
Governance Code, ATH provides the following corporate
governance statement for the year ending 31 March 2012:
Role of the Board
The role of the Board is to assume accountability for the
success of the company by taking responsibility for its
direction and manage in order to meet its objective of
enhancing corporate profit and shareholder value.The
regular business of the Board, during its meeting, covers
business investments and strategic matters, governance
and compliance, the General Manager’s report, and the
performance of subsidiary companies.
Composition of Board
The Board comprises seven Non-Executive Directors of
which four are Strategic Investor Directors and three are
Independent Directors.
The Directors in office as at 31 March 2012 are:
Name
Date of
Appointment
Ajith Kodagoda
Independent
Director
16 July 2009
David Kolitagane
Independent
Director
20 August 2009
Umarji Musa
Independent
Director
23 August 2010
Taito Waqa
Strategic Investor
Director
21 August 2008
Arun Narsey
Strategic Investor
Director
1 September
2010
Tom Ricketts
Strategic Investor
Director
6 August 2009
As at 31 March 2012 there is a vacant position on the board
of directors. The directors are appointed in line with the
company’s Memorandum of Association and are elected at
the company’s Annual General Meeting. One third retires by
rotation each year and are eligible for re-election. The FNPF
is excluded from participating in this election process. A total
fee of $62,500 was paid to Directors for their service during
the year in accordance with the shareholders resolution at
the 13th Annual General Meeting. The company also met
other expenses mainly for travel and accommodation which
were incurred during the course of their duties for ATH.
Directors were also covered under a Directors’ and Officers’
Insurance Policy and a Personal Accident Insurance Policy.
The Board met seven times during the financial year ended
31 March 2012. Attendance was as follows:
Director
Number of
Meetings
Entitled to
Attended
Number of
Meetings
Attended
Apologies
Received
Board Sub-Committees
The Board has formally constituted three committees, the
Corporate Governance Committee, the Audit and Finance
Committee and the Human Resources Committee. The
Corporate Governance Committee comprises all of the
Directors, and is also chaired by the Board Chairman.
The Corporate Governance Committee is responsible for
ensuring that the Board operates effectively and efficiently
and that the company has appropriate employment
practices. The Human Resources Committee is responsible
for advising the Board on human resources issues which
includes the remuneration and conditions of employment
of the General Manager and senior management and
succession planning.
Appointment of a General Manager
As at 31 March 2012 the position of ATH General Manager
remains vacant with Mr Ivan Fong in an acting position.
The appointment of the General Manager is made by the
Human Resources Committee and is for a term of three
years.
Board Secretary
The Board is assisted by the Company Secretary, Mr Ivan
Fong, who also holds the role of Acting General Manager.
Timely and Balanced Disclosure
As a listed company, ATH is subject to the rules and
regulations for listed companies as set out by the South
Pacific Stock Exchange and Reserve Bank of Fiji. This
includes market announcements of material information,
six monthly unaudited financials, audited financials and
annual report.
Ethical and Responsible Decision Making
The Company has a code of conduct which is relayed to the
Directors upon appointment to the Board. ATH believes
that all Directors and executives uphold the code of conduct
and ethical standards of the company.
Register of Interests
A register of interests is maintained by the company in line
with the code of conduct.
Rights of Shareholders
In line with South Pacific Stock Exchange’s requirements,
the company issues market announcements of material
information, six monthly unaudited financials, audited
financials and annual report. The same information is
posted on SPSE and ATH websites. All shareholders
are invited to the AGM and are given an opportunity to
communicate directly with the Board of Directors.
Accountability and Audit
Ajith Kodagoda
7
6
1
David
Kolitagane
7
4
3
ATH is audited annually by an independent external auditor.
The company also has an Audit and Finance Committee
which provides oversight of the company’s internal controls
and operations, verifying and safeguarding the integrity of
the company’s financial reporting.
Taito Waqa
7
2
5
Risk Management
Arun Narsey
7
7
0
The Directors of the company are always mindful of
potential risks that may arise in the course of its business.
While the company does not have a separate Risk
Management Committee it has contingencies to address
this as the need arises.
Tom Ricketts
7
6
1
Umarji Musa
7
7
0
8
Company Profile
Establishment and Ownership
Group Structure
Amalgamated Telecom Holdings Limited (“ATH”)
was incorporated as a public company on 10 March
1998, as a vehicle through which the Fiji Government’s
investments in the telecommunications sector were
consolidated for the purpose of privatisation under its
public sector reform programme.
Telecom Fiji Limited is a 100% owned subsidiary of
ATH, and operates Fiji’s only Public Service Telephone
Network (PSTN).
ATH commenced operations on 16 December 1998,
following the sale of a 49% strategic stake in the
company to the Fiji National Provident Fund (“FNPF”)
as part of a tender in which a number of international
parties participated. The FNPF subsequently
consolidated its control of ATH in September 1999
after it acquired a further 2% of the issued shares in
accordance with contractual obligations. Government’s
shareholding as a result, was reduced to 49%.
Fiji’s telephone directory is published by Fiji Directories
Limited, a joint venture between ATH (90%), and
Edward H O Brien (Fiji) Limited (10%).
Vodafone Fiji Limited is the country’s leading provider
of mobile telephony service, using the Global System
for Mobile (GSM) standard and mobile phone money
transfer service. It is a joint venture between ATH (51%)
and Vodafone International Holdings BV (49%).
Internet Services Fiji Limited which trades under
“Connect” brand name was a 100% subsidiary of
Telecom Fiji Limited, and has been reabsorbed back into
Telecom Fiji Limited.
In February 2002, Government sold a further 9.7% of its
shares through a Private Placement with institutional
investors,
including
the
FNPF, which acquired further
An additional 4.7% of
shares. An additional 4.7% of
Government’s shares were sold
Government’s shares
in a Public Offer a month later.
were sold in a Public
Government is currently ATH’s
second largest shareholder with
Offer a month later.
34.6% interest, while the FNPF
Government is currently
is the largest shareholder with
58.2%.
ATH’s second largest
The Company
shareholder with 34.6%
interest, while the FNPF
is the largest shareholder
with 58.2%.
ATH
is
Fiji’s
principal
telecommunications
holding
company,
through
its
investments and provision of
direct services in a broad range
of telecommunications and
related services. The principal activities of the ATH
Group include:
• Provision of voice, Internet and data related services;
• Provision of business communications solutions;
• Provision of ICT and surveillance products;
• Provision of Transaction management and prepaid
services;
• Provision of directory information services;
• Provision of Business Processing Outsourcing (BPO),
including call centre services;
• Provision of international telecommunications
facilities;
In addition, ATH has rights to manage Government’s 51%
shareholding in Fiji International Telecommunications
Limited (“FINTEL”), Fiji’s current sole provider of
international telecommunication services. On March
15 2012, ATH acquired 49% of FINTEL from Cable
and Wireless Communications Limited for a sum of
$18.6million.
9
Transtel Limited is a 100% subsidiary
of Telecom Fiji Limited, and its
principal activities are the marketing
and selling of prepaid transaction
cards.
Xceed Pasifika Limited is a 100%
subsidiary of Telecom Fiji Limited,
and sells customer premises
equipment like telephone handsets,
PABXs, customer premises cabling,
computers,
and
surveillance
equipment.
ATH Technology Park Limited is a
100% subsidiary of ATH, and was
established as the vehicle through
which the proposed ATH Technology
Park at Vatuwaqa could be developed, owned and
operated. ATH Call Centre Limited which trades under
the “ATH In Touch” brand name is a 100% subsidiary of
ATH.
Pacific Emerging Technologies Limited is a joint venture
between ATH (51%) and Pacific Electronic Commerce Pty
Limited (49%), and provides electronic payments service
through its Payecomm system.
Fiji International Telecommunications Limited is a
joint venture between the Fiji Government (51%)
and ATH (49%) (previously held by Cable & Wireless
Communications plc (UK)), provides and operates
international telecommunication facilities into and out
of Fiji.
Strategic Positioning
ATH is dedicated to becoming an internationally
competitive ICT company in the Pacific. Its mission is to
enhance shareholder value by pursuing businesses that
leverage off its core investment in ICT. ATH’s values
are integrity, accountability, innovation, efficiency and
effectiveness.
Business Risks
The ATH Group’s future prospects however is subject to
the following risks:
Implementation of telecommunications policy that
increases uncertainty or limit’s the opportunity of
operators to earn commensurate returns, therefore
hindering innovation and investment Low economic
growth due to continuing weak macro-economic
conditions, limiting potential for growth in business.
Weak foreign currency exchange rates resulting high
costs as telecommunications equipment and support
fees, a large portion of costs are denominated in foreign
currency. Rapid technological changes could render
current technology obsolete sooner than expected. The
cost of replacing equipment could be substantial, while
new entrants could have the advantage of entering the
market with a lower cost structure, and more advanced
technology. Lack of skilled personnel due to competancy
gaps in the labour market, local and international
mobility of the workforce and migration overseas could
disrupt operations, and cause significant increase in
labour costs.
As telecommunications is increasingly an international
business as network effects mean that there is
increasing benefit to extend services beyond national
boundaries to reap the benefits of scale and scope.
Restrictions or unfavourable conditions on foreign
investments by Fiji domiciled companies could affect
implementation of ATH’s growth path in the region
through its Pacific Strategy.
10
Board of Directors
Chairman: Directors: Acting CEO:
Company
Secretary:
Mr Tom Ricketts
Mr Sashi Singh
Mr Tevita Kuruvakadua
Mr Daryl Tarte
Mr Umarji Musa
Mr Ivan Fong
Mr Samuela Vadei
Overview
Fixed line operators worldwide have been experiencing
declines in voice revenues as wireless technologies
increasingly become the preferred mode of
communication. Unfortunately Telecom Fiji has not
been immune to this global trend. It has been another
challenging year for TFL with the continuous challenges
brought about by competition and the declining number
of fixed-line subscribers and revenues. However, TFL
strives to look at new opportunities and maintain and
possibly increase its subscriber base and guard its
revenue.
The opening of the international telecommunications
gateway through the Southern Cross Cable Network
(SCCN) to Australia and the US in November 2011 has
presented TFL with opportunities to enhance its data
services and revenue. There is also a new scope for
launching non-traditional communication services in
the future.
TFL’s core revenue decreased by 10.7% mainly due to
reduction in local call charges and decline in subscriber
numbers. Direct costs fell by 28.3% which was mostly
attributed to drop in inter-connect rates and as a result
of access to SCCN in the latter part of the financial year.
Voice revenues decreased by 22.3% predominantly
due to decline in post-paid services. However, TFL via
its marketing initiatives has managed to stabilise
the decline subscriber numbers. Data and internet
revenues increased by 6.1%. This was mainly attributed
to innovative initiatives and the continued rollout of
new products and services. The data revenue stream is
a significant driver of revenue and profits and efforts
are being made to promote this to customers to boost
revenue.
11
TFL foresees great opportunities in these areas and as
such would be putting extra focus towards broadband
and data in the upcoming year.
Overall overhead costs increased by 8.7% year on year.
This increase is mainly attributed to the following areas:
-
Personnel cost increased by 3.4%. This was due
to the FNPF compliance which required TFL to
pay for all costs including staff benefits and
allowances. At present TFL is aiming to curb
its staff numbers and only recruit essential
positions.
-
Marketing costs declined by 49.1%. This was
due to enhanced, targeted, and direct marketing
efforts by the team with more focus on roadshows and events.
-
Operating expenses increased by 19.8%. This
increase is attributed to significant increases in
fuel and electricity costs which are beyond TFL’s
control.
Marketing
The financial year showed more focus on target
marketing - the formation of Business and Retail
SBUs ensured more focus on segments with planned
marketing activities/initiatives and customer-centric
campaigns. The aim has been to deliver more compelling
value propositions to the market.
Efforts were placed on improving customer service,
service continuity, and more products placed in TFL
shops to meet satisfaction/demands. Connect also
continued to launch packages to tap into other markets
- students with scholar packages, and more recent high
speed Velocity package.
TFL maintained its support of important social-business
partnerships with sponsoring of the Investment Fiji
Prime Ministers Exporter of the Year Awards, and the
Melanesian Spearhead Group Leaders Forum in Suva.
The company continued to sponsor the Tadra Kahani
Schools Dance Competition in an effort to support youth
development. It was also a silver sponsor of Suva’s
Hibiscus Festival, a supporter of the Careers Expo, and
host to the “Safe Kids Corner” at the Fiji Showcase.
Continued support of education and leadership
development was shown through TFL’s sponsorship of
the High Achiever Awards at both tertiary and secondary
schools levels, in addition to support for Open Day’s at
various tertiary institutions including the University of
the South Pacific and the Fiji National University.
New Products Network Rollout
The new products rolled out by TFL were mainly targeted
towards leveraging off the direct access to SCCN
capacity. TFL acquired capacity to US mainland and
Sydney, Australia. Both routes are active and provide
full redundancy to high-end, high-demand corporate
customers. TFL has released International Private Lease
Circuits (IPLC) and Ethernet Private Line (EPL) services.
The IPLC service is a private Point-to-Point circuit
that can be used by organizations to communicate
between their offices that are geographically dispersed
throughout the world. TFL’s IPLC service can be used for
the exchange of business data, video conferencing, and
any other form of telecommunication.
Human Resources
TFL continues to focus on enhancing its human
resources. The current financial year saw the exit of three
executive management members – General Manager IT,
Chief Financial Officer, and the Chief Executive Officer.
These positions have since then been filled in acting
capacities through succession planning with TFL.
The integration of Connect operations with TFL has
provided opportunities for streamlined operations and
staffing realignment.
I am grateful to the Board of Directors, the Management
Team, and to all staff of TFL for their support and
perseverance in putting their best efforts toward
increasing TFL’s efficiency in the currently challenging
business climate.
12
Board of Directors
Chairman: Mr Lionel Yee
Directors: Mr Isikeli Tikoduadua
Mr Robin Yarrow
Mr Russel Hewitt
Mr Craig Wilson
Mr Anthony Zac Summers
Kursten Shalfoon
(resigned 18 August 2011)
Managing
Director: Aslam Khan
Company
Secretary: Pradeep Lal
On the network front, Vodafone Fiji kept its competitive
advantage in the mobile telecommunications market
through a substantial investment in technology.
Vodafone continued to expand its 3G network in 2011,
taking 3G-coverage to the Northern Division, and for
the first time covering a major part of Vanua Levu and
Taveuni. Vodafone also rolled-out more 2G and 3G
stations in the year, thereby bringing our total number
of stations to 362. This increased Vodafone 3G coverage
to 75% of Fiji’s population.
Mobile Connections
800
700
600
500
400
300
200
100
0
Corporate & Business Markets
2008
2009
2010
2011
In the current competitive market, Vodafone Fiji’s
Corporate & Business Markets Division continued
to grow as a result of a range of solution-based and
innovative products, “value-packed” propositions and
an elevated focus on quality customer service.
2012
Revenue
$m
200
180
160
140
120
100
80
60
40
20
0
Vodafone Fiji caters for all business segments
ranging from small-office-home-office and smallmedium enterprises to Corporate and multi-national
organizations. Whilst our core mobile voice and data
business continues to grow, the corporate sector is
seeking combine fixed and mobile solutions for their
voice and data needs, as well as integrated services and
productivity tools.
2008
2009
2010
2011
2012
Vodafone Fiji continued its strong performance in the
mobile communication industry for the 2012 financial
year. The company once again registered a netpositive growth in subscriber numbers, largely driven
connections. Active subscribers on the network to date
are 631,684.
The company also delivered strong financial results
with net profit after tax increasing by 12% compared to
last year whilst revenues grew by 5.2%. These growths
resulted from major areas including voice, data, and
roaming.
13
3G Broadband
Solutions
(High-Speed)
Internet
FlashNet continues to be a very popular product due
to its portability and increased speeds. This, coupled
with the increased coverage from the installation of
additional 3G Base Stations around Viti Levu, resulted in
a significant growth on Data.
Blackberry, Smartphones and Tablets
Several new models and contractual plans with the
added benefit of business and social networking
applications were introduced into the market. This
increase in smart phones (i.e. iPhones, iPads, Tablet
PC’s, and Android smart phones) in the market saw
mobile data growth with an increased awareness on
Vodafone’s 3G Broadband bundled services for mobile
Internet. With social media on the rise, Vodafone is well
placed to capitalize on this new growth opportunity in
the coming financial year.
Consumer Market
Prepaid Data
The freedom of “pay for what you use” is still the
preferred option for the majority of our customers.
The successes of prepaid voice propositions have
now been replicated with data products. Whilst many
attractive promotions continue to be offered for prepaid
voice, prepaid data offers new growth opportunities.
The company is well placed to capitalize on prepaid
data opportunities as customers upgrade from basic
handsets to data-enabled handsets and smart phones.
Since the last financial year, Vodafone has been able to
offer a wide range of new, data-enabled handsets and
smart phones at very affordable prices.
New prepaid data propositions such as prepaid
Blackberry services and campaigns that offer free
handset upgrades to include Facebook and Twitter
access has also helped with the uptake. Internet Day
Pass promotions and the introductions of monthlyprepaid Blackberry, iPhone and Smart Phone plans are
making internet access on mobile phones simple, and
more affordable.
Value Added Services
Whilst voice and data remain king in the core mobile
communications offering by Vodafone, value added
products have increasingly become important to engage
with the customers on an ongoing basis.
Vodafone continues to offer the market the most
innovative and rewarding value-added products and
services. It has established a strong relationship with
all media partners that utilize it’s Vodafone SMS
platform to offer ongoing competitions and promotions
that offer instant and ongoing rewards to customers.
Vodafone has also engaged with a number of mobile
content providers that provide the latest content for
mobile phones. This includes news, information and
entertainment. These offer our customers a complete
mobile communication experience that brings out
the individuality and lifestyle of our users in their own
unique ways.
M-PAiSA
It has been two years since the launch of M-PAiSA –
Vodafone mobile wallet service and it is increasingly
being adopted as a safe, convenient and affordable
alternative to financial services.
Over the last financial year, a number of new payment
options have been added to the M-PAiSA service. These
include utility payments such as water, electricity,
Council, insurance and loan repayments with various
financial institutions such as the Housing Authority of
Fiji, Home Finance, Fiji Development Bank and Dominion
Finance.
The Judicial department is also able to make
maintenance payments using the business-to-customer
bulk payment option. We hope to add more innovative
payment options to the M-PAiSA service in the new
financial year.
Retail
Vodafone retail outlets have gradually transformed
from product-based offers to more solution-driven
propositions as the consumer preference for mobile
communication continues to evolve. Mobile phones with
Internet capabilities, smart phones and data products
are increasingly the more sought after products.
Accordingly, Vodafone retail outlets Fiji-wide have been
re-organized to ensure the continued availability of dataenabled hardware such as smart phones, FlashNets,
Webbox and other data related accessories such as
pocket Wi-Fi, and wireless repeaters. This is backed with
expert and trained personnel to deliver an exceptional
customer experience.
Sponsorships
Vodafone Fiji continued to own key events and sporting
bodies in the country through corporate sponsorships.
The Vodafone Trophy under the FNRL Sponsorship
attracted 27 different schools taking part in the Under-15
and Under-18 grades competitions. This is a record
number. The company also extended its contract with
the Fiji Football Association for the annual Fiji FACT
Football tournament.
Vodafone signed up an annual partnership with
the South Pacific Bowling Carnival and launched
the Vodafone Masters and Vodafone Classic golf
tournaments. These were held at the Nadi Golf Club and
Fiji Golf Club respectively. The popular television talent
show, Vodafone MIC, continues to be a showstopper
with some outstanding talents coming forward every
year. Vodafone also continued to support a number of
municipalities around the country with the sponsorship
of the following annual charitable festivals.
Suva – Hibiscus Festival
Nadi – Bula Festival
Lautoka - Farmers Carnival
Tavua – Gold town Carnival
Labasa – Friendly North Festival
The Kula Film awards continued to lure aspiring
filmmakers. Vodafone also sponsored the Tourism
Awards at the Prime Ministers Exporter of the Year
Awards. Other events supported through sponsorships
included the Fiji Institute of Accountant Congress, CPA
Australia-Fiji Congress, Head Teachers & Principals
Conferences, Local Government Meets and the Fiji
Medical Association conference.
In the arts & music, Vodafone supported the Malaga
Concerts and this helped to raise the profile of
contemporary Pacific cultures. Vodafone also partnered
with the two major radio stations to host the biggest
New Years Eves Street Party.
14
Fiji Directories Limited
Board of Directors
Chairman: Mr Aslam Khan
Directors: Mr Kim Askew
CEO:Vacant
DMS
The Fiji Directories Limited pursued integrative growth
opportunities with its product development strategies
in 2011. This saw the introduction of the very popular
‘Directories Mobile Search’. This product essentially puts
the telephone directory in mobile phones – conveniently
allowing you to access important information while
on the move. DMS is a service made possible through
partnership with Vodafone Fiji Ltd and it empowers
owners of Smart Phones across the country. The
product has been an instant hit, with the number of
users steadily increasing since its introduction to the
market.
Financials
Fiji Directories Limited recorded a net profit of $1,076,519.
A part of this gain was from online advertising sales
via the company website, www.yellowpages.com.fj;
however, the company also saw a 0.22% decrease in
revenue when compared to last year.
Of notable mention was the 9.12% increase in income
generated by the listing fees of mobile numbers from
the previous year. In the financial year, the company
recorded an overall income of $4,277,269.
in Fiji. “Save A Tree, Recycle Me” is the stewardship
message currently being shared in order to encourage
sustainable business development and growth practices
that would result in the preservation of our resources for
future generations.
Customers can now return their old directories to the
nearest Post Office each year (for recycling) in exchange
for new ones. The Fiji Directories Ltd in partnership with
Gosal Distributors Ltd will strive to continue with this
green initiative in accordance with its aim to play its
part in the preservation and sustainability of our natural
resources.
Net Profit After Tax
$’000
3.000
2,500
2,000
1,500
1,000
500
-
Online
Both of our websites (www.yellowpages.com.fj & www.
whitepages.com.fj) offer our advertisers a global reach
with packaged listing offers that allow customers
access 24/7. This saw an increase in revenue by 22.24%
compared to the previous year. Site visits grew steadily
throughout the year, increasing their ‘real estate value’
as effective advertising space.
Green Initiative
Fiji Directories Ltd pioneers a green initiative through
strategic alliances with Post Fiji Ltd and Gosal
Distributors Ltd – a newly established recycling company
15
2008
2009
2010
2011
2012
2011
2012
Consolidated Sales Revenue
$0’000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-
2008
2009
2010
Board of Directors
Chairman: Directors: Foundation
Executive/
Secretary:
Mr Lionel Yee
Mr Ivan Fong
Mr Divik Deo
Mr Elenoa Biukoto
Mr Iliesa Volau
Mr Arunesh Vishwa
Ms Ambalika Devi
Executive Summary
Vodafone Red Alert
The Vodafone ATH Fiji Foundation is the philanthropic
arm of Vodafone Fiji Limited. This financial year, the
Foundation focused on addressing social issues through
innovation and networking as it sought to achieve its
goal of “Mobilizing communities and mobilizing social
change”. The objective was to mobilize communities
through positive partnerships that resulted in social
change, and in turn executing innovative charitable
programs that enable everyone to make a World of
Difference. Being at the forefront of delivering innovative
solutions through technology, the Foundation strongly
believes that mobile communication technology can
address some of Fiji’s most pressing humanitarian
challenges. Tasked with the responsibility to utilize
our people and technology in the mobilization of
social change, a new direction was envisioned for the
Foundation with the aim of improving people’s lives.
The Foundation firmly believes in healthy and stable
communities not only for our employees, but also for
our friends and customers alike. With this in mind, we
strive each day and help to assist through innovative
programs and partnerships. Since its inception, the
Vodafone ATH Fiji Foundation has invested over
$9million in Fiji. The Foundation has supported over
370 community projects and is currently partnering with
over 300 charitable organizations throughout Fiji to
increase its outreach through sustainable partnership.
The Foundations “World of Difference” programme
is bringing about social change in positive ways. The
2011-2012 Foundation year saw the implementation of
Foundation flagship programmes such as Vodafone Red
Alert, Mobile for Good, World of Difference, Double Your
Dollar, and Hands up Vodafone. A total of approximately
$1.3million was invested in the community through the
various 2011 activities.
The “Vodafone Red Alert” is a disaster response facility.
The programme was activated this year to assist the
victims of the flash flooding experienced in the Western
Division in January, and most recently in March of 2012.
Vodafone Fiji Ltd, Vodafone Group Foundation, and
the Vodafone New Zealand Foundation bestowed
the Foundation with a total of $321,000.00 to assist
with our efforts. This enabled the Foundation (along
with its customers and charity partners) to carry out
rehabilitation and life-support activities that made a
real difference in the lives of the many unfortunate
victims of the disaster. Vodafone Fiji Limited also
donated an additional $100,000.00 to the cause. The
Vodafone Red Alert programme saw the delivery of hot
meals to evacuation centres, distribution of food rations
to affected communities, and the provision of clean
and safe drinking water. It also provided educational
assistance to school children, and set up emergency
Health Camps to provide immediate health relief to
flood victims. Under the rehabilitation programme,
Life-Rebuilding kits were provided along with seed
and seedlings. Outreach programmes were also set up
to initiate food sustenance programs for families. The
Vodafone Red Alert programme assisted over 10,000
individuals under their employee engagement initiative,
Vodafone Fiji employees were directly involved in the
distribution operations.
Mobile for Good
Under the ‘Mobile for Good’ programme, services such
As mHealth, mEducation, and Dr. SMS were initiated.
By taking advantage of the extensive reach provided
through the proliferation of mobile communications
devices such as PDA’s and mobile phones, mHealth aims
to improve access to health programmes that seek to
address basic health problems in Fiji, particularly, noncommunicable diseases (NCD’s) such as ailments of
16
the heart, liver, kidneys, cancer, and mental health;
amongst other health and wellness advisory-related
programs. The mHealth initiative is working towards
a shared vision of preventing lifestyle diseases and is
impacting over 30,000 customers on a daily basis by
allowing subscribers to access basic health and wellness
tips, free of charge.
Given the popularity of mHealth, DR. SMS has
been launched to allow subscribers to seek tailored
professional advice on their personal health and
wellness. Through content charity partners, volunteer
doctors have been mobilized to support this initiative.
The aim of Dr SMS is to reach out to the impoverished
and vulnerable individuals who do not have direct access
to doctors and medical personnel as a result of personal
poverty and remoteness to these important services.
World of Difference
In 2011, the Foundation engaged 24 candidates with
innovative projects attached to twenty communitybased organizations all over Fiji. The World of Difference
programme empowered the candidates to execute
its principles. The innovative projects which include
medical, socio-economic and innovative health care
projects, nature conservation, women’s institute and
empowerment, St Christopher’s Home project, Virgin
Coconut oil Factory, Counseling & Social Service,
and other initiated activities is engaging our charity
volunteers on a deeper level. It channels their energies
into activities that build and strengthen relationships
with those communities in which Vodafone operates.
Through partnerships forged by this programme, the
following was achieved:
• $330,000 worth of wheelchairs was accessed
via the Wheelchair Foundation in the United
States of America.
17
•
•
60 World of Difference Community symposiums
were conducted in the provinces of Rewa,
Tailevu, Nadroga-Navosa, Macuata, Ba,
Rakiraki, Cakaudrove, as well as the SuvaNausori corridor.
6 corporate symposiums were conducted;
thereby, assisting over 850 employees
By aligning itself with the Duke of Edinburgh Awards, the
Foundation and the World of Difference charity partners
were also able to reach 48 schools; connecting children
with agriculture, social services, leadership development
and team building.
Double Your $ and Hands-up Vodafone
The year 2011 also saw an increase in volunteer
programmes amongst Vodafone employees who were
passionate about a particular cause and volunteered to
raise funds that were later doubled by the Foundation.
A total of 142 employees donated skills and provided
a helping hand with Vodafone Red Alert, Double Your
Dollar, Wheelchair Drive, and the Hands-up program.
Other Achievements
The Foundation has also been able to give another chance
at life to 59 children living with severe heart ailments. It
also provided water to over 330 communities, prevented
blindness in over 20,000 individuals, treated fifteen
children from the Hilton Special School by helping them
get into the mainstream, and touched the lives of over
60,000 direct beneficiaries. The National Volunteer
Centre registered over 2000 unemployed individuals,
established 20 community groups, and under-took 125
small-scale community projects. It also executed 189
capacity building or training sessions with an average
of 600 youths, and established 16 small-medium
enterprise businesses.
Financial Contents
Directors’ Report
19
22
23
24
25
26
27
28
66
Statement by Directors
Independent Audit Report
Statement of Comprehensive Income
Statement of Changes in Equity
Statement of Financial Position
Statement of Cash Flows
Notes to the Financial Statements
South Pacific Stock Exchange
- Listing Requirements
18
Directors’ Report
For the Year ended 31 March 2012
In accordance with a resolution of the Board of Directors, the directors herewith submit the statement of financial
position of Amalgamated Telecom Holdings Limited (the company) and of the group as at 31 March 2012 and the
related statement of comprehensive income, statement of changes in equity and statement of cash flows for the
year then ended and report as follows:
Directors
The names of directors in office at the date of this report are:
Mr Ajith Kodagoda - Chairman Mr Tom Ricketts
Mr David Kolitagane - Deputy Chairman Mr Taito Waqa
Mr Arun Narsey Mr Umarji Musa
Principal Activities
The principal activities of the company during the year were that of investments and provision of management
services.
The principal activities of the subsidiary entities during the year were providing telecommunication services and
telephone equipment, compilation and publishing of the Fiji telephone directory, provision of internet connection
and internet related services, operation of a mobile telecommunications network, provision of pre-paid telephony
services, provision of mobile phone money transfer service, managing PAYECOMM products, sale of ICT equipment
and solutions and development of a technology park including call centres, data warehouse and processing centres.
On 15 March 2012, the company acquired 49% shareholding in Fiji International Telecommunications Limited
(“FINTEL”), an entity that provides international telecommunication facilities into and out of Fiji. While the
company owns 49% in FINTEL, the company also manages the 51% shareholding of the Government of Fiji in
FINTEL in accordance with a management agreement. The results of FINTEL have been incorporated in the
consolidated financial statements from the date of acquisition.
Effective from 1 April 2011, Telecom Fiji Limited acquired from Xceed Pasifika Limited, the existing business of sale
and service of office and computer equipment together with business assets and liabilities.
Other than the above, there were no significant changes in the nature of these activities during the financial year.
Results
The net profit after income tax of the company for the year was $23,357,000 after providing for income tax
expenses of $1,571,000 (2011: $17,811,000 after providing for income tax expenses of $538,000).
The consolidated net profit after income tax attributable to the members of the company for the financial year
was $18,362,000 (2011: $4,142,000).
Dividends
Dividends of $12,665,000 were declared during the year ended 31 March 2012 (2011: $12,665,000).
Reserves
It is proposed that no amounts be transferred to reserves within the meaning of the Seventh Schedule of the Fiji
Companies Act, 1983 (2011: Nil).
Bad and Doubtful Debts
Prior to the completion of the company’s and group’s financial statements, the directors and management took
reasonable steps to ascertain that action has been taken in relation to writing off bad debts and the provision
for impairment. In the opinion of the directors and management, adequate provision has been made for doubtful
debts.
19
Directors’ Report - continued
For the Year ended 31 March 2012
Bad and Doubtful Debts - continued
As at the date of this report, the directors and management are not aware of any circumstances, which would
render the amount written off for bad debts, or the provision for impairment in the company or the group,
inadequate to any substantial extent.
Non-Current Assets
Prior to the completion of the financial statements of the company and the group, the directors and management
took reasonable steps to ascertain whether any non-current assets were unlikely to be realised in the ordinary
course of business compared to their values as shown in the accounting records of the company and of 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 realise.
As at the date of this report, the directors and management 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 and management, the results of the operations of the group or any company in the
group during the financial year were not substantially affected by any item, transaction or event of a material and
unusual nature, nor has there arisen between the end of the financial year and the date of this report any item,
transaction or event of a material and unusual nature likely, in the opinion of the directors and management, to
affect substantially the results of the operations of the group or any company in the group in the current financial
year.
Significant Events during the Year
During the year:
(i) On 15 March 2012, the company acquired 49% shareholding in FINTEL for a consideration of $18.6
million;
(ii) Telecom Fiji Limited (“TFL”), a subsidiary of the group, restructured its borrowings with the Fiji National
Provident Fund (“FNPF”). TFL obtained a loan of $30 million from Australia and New Zealand Banking
Group Limited (“ANZ”) from which $10 million was utilised for capital expenditure of the company and
$20 million was utilised to repay the loan from FNPF. Accordingly, prior year loans from FNPF of $80
million was reduced to $60 million and loans at various interest rates that made up this $60 million
was combined as one loan with new terms and conditions;
(iii) Restructuring of the TFL group was undertaken and commercial operations from Xceed Pasifika
Limited (subsidiary) was transferred to TFL effective 1 April 2011. As a result, TFL acquired from Xceed
Pasifika Limited the existing business of retailing computer equipment together with business assets
and liabilities;
(iv) Telecom Fiji Limited started operating its USA link via Southern Cross Cables;
(v) The Fiji Commerce Commission made a final determination on 7 November 2011 in relation to price
controls of interconnection services of Telecom Fiji Limited; and
(vi) On 27 May 2009, the National High Court of Papua New Guinea issued an order of judgment in favour
of the associate entity, Amalgamated Telecom Holdings (PNG) Limited, Steamships Trading Limited
and the company. The judgment was against the Independent State of Papua New Guinea.
The litigation related to the share acquisition agreement entered between the Independent Public
Business Corporation of PNG and Amalgamated Telecom Holdings (PNG) Limited. Under the terms
of the share acquisition agreement, Amalgamated Telecom Holdings (PNG) Limited was to acquire
50.1% of the shares in Telikom PNG Limited. However, due to the non performance of the contract
by the Independent Public Business Corporation of PNG, the sale of Telikom PNG Limited shares to
Amalgamated Telecom Holdings (PNG) Limited did not proceed.
At 31 March 2012, no settlement has been received by the company. However, the company received an
offer for an out of court settlement for consideration.
20
Directors’ Report - continued
For the Year ended 31 March 2012
Events Subsequent to Balance Date
Subsequent to balance date,
(i) TFL further restructured its borrowings. As part of the restructure, a further loan from Fiji National
Provident Fund was obtained to settle the loan that was acquired from Australia and New Zealand
Banking Group Limited during the financial year; and
(ii)
The directors are reviewing ATH Call Centre’s profitability with a view of finding the best option moving
forward. A decision was made to roll back Call Centre’s operations to TFL (the company’s only customer)
including staff and assets. The plan is to transfer the assets at their carrying amounts. A definite date
of transfer has yet to be confirmed.
Apart from the matters noted above, no other matters or circumstances have arisen since the end of the financial
year which significantly affected or may significantly affect the operations of the group or any company in the
group, the results of those operations, or the state of affairs of the group or any company in the group in future
financial years.
Basis of Accounting
The directors and management believe that the basis of preparation of the financial statements is appropriate
and that the company will be able to continue in operation for at least twelve months from the date of this report.
Accordingly, the directors and management believe that the classification and carrying amounts of assets and
liabilities as stated in these financial statements to be appropriate.
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 any company in the group or of a
related corporation) by reason of a contract made by any company in the group 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.
Other Circumstances
As at the date of this report:
(i) no charge on the assets of any company in the 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 any company in the
group could become liable; and
(iii) no contingent liabilities or other liabilities of any company in the group has become or is likely to
become enforceable within the period of twelve months after the end of the financial year which, in the
opinion of the directors and management, will or may substantially affect the ability of the company or
the group to meet its obligations as and when they fall due.
As at the date of this report, the directors and management are not aware of any circumstances that have arisen,
not otherwise dealt with in this report which would make adherence to the existing method of valuation of assets
or liabilities of the company and the group misleading or inappropriate.
For and on behalf of the board and in accordance with a resolution of the Board of Directors.
Dated this 28th day of June 2012.
DirectorDirector
21
Statement By Directors
For the Year ended 31 March 2012
In accordance with a resolution of the Board of Directors of Amalgamated Telecom Holdings Limited, we state
that in the opinion of the directors:
(i)
the accompanying statement of comprehensive income of the company and of the group is drawn up
so as to give a true and fair view of the results of the company and of the group for the year ended
31 March 2012;
(ii)
the accompanying statement of changes in equity of the company and of the group is drawn up so
as to give a true and fair view of the changes in equity of the company and of the group for the year
ended 31 March 2012;
(iii)
the accompanying statement of financial position of the company and of the group is drawn up so
as to give a true and fair view of the state of affairs of the company and of the group as at 31 March
2012;
(iv)
the accompanying statement of cash flows of the company and of the group is drawn up so as to
give a true and fair view of the cash flows of the company and of the group for the year ended
31 March 2012;
(v) at the date of this statement, there are reasonable grounds to believe that the company and the
group will be able to pay its debt as and when they fall due; and
(vi) all related party transactions have been adequately recorded in the books of the company and the
group.
For and on behalf of the board and in accordance with a resolution of the Board of Directors.
Dated this 28th day of June 2012.
DirectorDirector
22
Independent Audit Report
To the members of Amalgamated Telecom Holdings Limited
We have audited the accompanying Financial Statements of Amalgamated Telecom Holdings Limited (the
company) and of the group, which comprise the statement of financial position as at 31 March 2012, the
statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the
year ended, and a summary of significant accounting policies and other explanatory notes.
Directors’ and Management’s Responsibility for the Financial Statements
The directors and management are responsible for the preparation and fair presentation of these Financial
Statements in accordance with International Financial Reporting Standards and the requirements of the Fiji
Companies Act, 1983. This responsibility includes: designing, implementing and maintaining internal control
relevant to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making
estimates that are reasonable in the circumstances.
Auditor’s Responsibility
Our responsibility is to express an opinion on these 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 perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal controls relevant to the company’s preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the company’s internal controls. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.
We have examined the financial statements and the auditors’ report of the subsidiary companies of which we
have not acted as auditors as shown in Note 30. The audit reports on the financial statements of the subsidiary
companies were not subject to any qualification.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Opinion
In our opinion:
(a) proper books of account have been kept by the company and the group, so far as it appears from our
examination of those books; and
(b) the accompanying financial statements which have been prepared in accordance with International
Financial Reporting Standards:
i) are in agreement with the books of account;
ii) to the best of our information and according to the explanations given to us:
(a) give a true and fair view of the state of affairs of the company and of the group as at
31 March 2012 and of the results, cash flows and changes in equity of the company and of the group
for the year ended on that date; and
(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 our audit.
SUVA, FIJI
28 June 2012
23
ERNST & YOUNG
CHARTERED ACCOUNTANTS
Statement of Comprehensive Income
For the Year ended 31 March 2012
Consolidated
Company
Note201220112012 2011
$’000$’000$’000 $’000
Revenue Direct costs
5
6
249,411
(66,766) 247,068
(66,433) 25,853
-
17,016
-
Gross profit 182,645180,635 25,853 17,016
Other income
7
17,334
7,315
25
14
Amortisation and impairment of intangibles
14
(6,084)
(3,099)
-
Depreciation
13 (51,268)(54,149)
(27)
(25)
Impairment of investments in subsidiaries
-
-
1,150
Marketing and promotion expenses
(8,275)
(9,756)
(55)
(46)
Redundancy costs-
(611)-Reversal of impairment loss on plant and equipment
7,603
845
-
Impairment loss on receivables
-
-
(600)
Impairment loss on receivables written back
358
-
-
Personnel costs
8
(37,767)
(36,237)
(299)
(384)
Operating expenses 9 (53,295) (48,168) (1,271) (656)
Operating profit 51,251 36,775 22,476 15,919
10
(5,403) (4,132) 2,452 2,430
Profit before income tax 45,848 32,643 24,928 18,349
Income tax expense
11 (12,683) (14,981) (1,571) (538)
Profit after income tax 33,165 17,662 23,357 17,811
-
-
-
-
Total comprehensive income for the year,
net of tax 33,165 17,662 23,357 17,811
Attributable to:
Equity holders of the company
Non-controlling interests
18,362 14,803 33,165 4,142 13,520 17,662 23,357 -
23,357 17,811
17,811
Finance (cost)/income – net
Other comprehensive income
Earnings per share for profit attributable to
the equity holders of the company during
the year (expressed in cents per share)
- Basic and diluted 12 4
1
The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
24
Statement of Changes in Equity
For the Year ended 31 March 2012
Attributable to equity holders of the company
Share
Share Retained
Total
Capital Premium earnings
reserve
$’000
$’000
$’000
$’000
Noncontrolling
interest
$’000
Total
$’000
Consolidated
Balance as at 31 March 2010
105,526 2,074 101,738209,338 36,352245,690
Changes in equity for 2010 – 2011
Profit for the year ended 31 March 2011
-
-
4,142
4,142
13,520 17,662
Dividends paid or provided (Note 26) -
- (12,665) (12,665) (9,910) (22,575)
Balance as at 31 March 2011
105,5262,074 93,215200,815 39,962 240,777
Changes in equity for 2011 – 2012
Profit for the year ended 31 March 2012
-
-
18,362
18,362
14,803
33,165
Dividends paid or provided (Note 26)
-
- (12,665) (12,665) 9,881 (2,784)
Balance as at 31 March 2012
105,5262,074 98,912206,512 64,646 271,158
Company
Balance as at 31 March 2010
105,5262,074 107,420215,020
Changes in equity for 2010 – 2011
Profit for the year ended 31 March 2011
-
-
17,811
17,811
Dividends paid or provided (Note 26)
-
- (12,665) (12,665)
Balance as at 31 March 2011
105,5262,074 112,566220,166
Changes in equity for 2011 – 2012
Profit for the year ended 31 March 2012
-
-
23,357
23,357
Dividends paid or provided (Note 26)
-
- (12,665) (12,665)
Balance at 31 March 2012
105,526 2,074 123,258230,858
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
25
Statement of Financial Position
As at 31 March 2012
Consolidated
Company
Note201220112012 2011
$’000$’000$’000 $’000
Assets
Non-current assets
Property, plant and equipment
13
354,829
347,626
11
38
Intangible assets
14
21,932
25,877
-
Available-for-sale financial assets
15
-
-
175,863
158,414
Held-to-maturity investments
16
48,336
48,660
48,336
48,660
Deferred tax assets
17 (a)
6,757
14,798
7
4
Trade and other receivables
19
4,983 4,982 24,983 24,982
436,837 441,946 249,200 232,098
Current assets
Deferred expenses
80
78
-
Held-to-maturity investments
16
1,420
4,000
320
3,000
Inventories
18 10,09310,390
-
Trade and other receivables
19
39,403
35,543
19,820
22,406
Cash on hand and at bank
31,006 12,097 8,231 979
82,002 62,108 28,371 26,385
Total assets 518,839504,054 277,571 258,483
Shareholders’ equity and liabilities
Shareholders’ equity attributable to members of the company
Issued capital
21105,526105,526105,526105,526
Share premium reserve
2,074
2,074
2,074
2,074
Retained earnings
98,912 93,215 123,258 112,566
Equity attributable to owners of the parent 206,512
200,815 230,858
220,166
Non-controlling interests
64,646 39,962 -
Total shareholders’ equity
271,158 240,777 230,858 220,166
Liabilities
Non-current liabilities
Deferred tax liabilities
17 (b)
25,424
29,106
-
Borrowings
22100,803 86,672 33,818 20,000
Provisions
23 768249 - Trade and other payables
24
13,171
17,341
-
Deferred income
25
350 395 -
140,516 133,763 33,818 20,000
Current liabilities
Borrowings
22 15,30128,918 1,204 12,500
Provisions
2333,66925,746 9,848 4,551
Trade and other payables
24
58,195
74,850
1,843
1,266
107,165129,514 12,895 18,317
Total liabilities247,681263,277 46,713 38,317
Total equity and liabilities 518,839504,054 277,571 258,483
The above Statement of Financial Position should be read in conjunction with the accompanying notes. For and
on behalf of the board and in accordance with a resolution of the Board of Directors.
DirectorDirector
26
Statement of Cash Flows
For the Year ended 31 March 2012
Consolidated
Company
Note201220112012 2011
$’000$’000$’000 $’000
Operating activities
Receipts from customers
256,195 260,024
Payments to suppliers and employees
(168,576) (172,468) 2
(806) 14
(594)
Net cash inflows/(outflows) generated from
operations 87,619 87,556 (804)
(580)
Interest received
Interest paid
Dividends received
Management fees
Income taxes paid
1,890
(8,325)
-
6,031
(8,266) 3,468
(7,031)
-
-
(7,911) 4,237
(2,058)
19,530
6,031
(502) 4,588
(1,590)
5,990
(1,297)
Net cash inflows from operating activities
78,949 76,082 26,434 7,111
Investing activities
Payments for property, plant and equipment
Payments for intangible assets
Proceeds from sale of plant and equipment
Redemption of held to maturity investments
Payment for held to maturity investments
Investment in FINTEL
(38,500)
(5,713)
246
4,000
(1,100)
-
(58,179)
(1,521)
84
200
-
-
-
-
-
3,000
-
(18,600) (15)
-
Net cash outflows used in investing activities
(41,067) (59,416) (15,600) (15)
Financing activities
Dividends paid to equity holders of the parent
Dividends paid to non-controlling interests
Loans and advances to subsidiary entities
Loan repayments
Proceeds from borrowings
(8,443)
(12,042)
-
(37,904)
45,000 (16,885)
(14,809)
-
-
9,000 (8,443)
-
(1,139)
(19,000)
25,000 (16,885)
(3,330)
12,500
Net cash outflows used in financing activities
(13,389) (22,694) (3,582) (7,715)
Net increase/(decrease) in cash and cash
equivalents
24,493 (6,028) 7,252 (619)
Effect of exchange rate movement on cash and
cash equivalents 6
(257) -
-
Cash and cash equivalents at the beginning of
the financial year
6,507 12,792 979 1,598
31,006 6,507 8,231 979
Cash and cash equivalents at end of year
20
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
27
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 1.
GENERAL INFORMATION
Amalgamated Telecom Holdings Limited (“the company”) and its subsidiaries (together “the
group”) provide telecommunication services and related equipment, internet connection and related
services, operation of a mobile telecommunications network, compilation and publishing of the Fiji
telephone directory, pre-paid telephony services, sale of ICT equipment and solutions, PAYECOMM
product management, provision of management services and development of a technology park
including call centres, data warehouse and processing centres.
On 15 March 2012, the company acquired 49% shareholding in Fiji International Telecommunications
Limited (“FINTEL”), an entity that provides international telecommunication facilities into and out of
Fiji.
Amalgamated Telecom Holdings Limited is a limited liability company incorporated and domiciled
in Fiji. The address of its registered office and principal place of business is Harbour Front Building,
Rodwell Road, Suva. The company is listed on the South Pacific Stock Exchange, Suva.
Statement of Compliance
The financial statements have been prepared in accordance with International Financial Reporting
Standards (“IFRS”) and the Fiji Companies Act, 1983.
These financial statements were authorised for issue by the directors on 28 June 2012.
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of these financial statements are set
out below. These policies have been consistently applied to all the years presented, unless otherwise
stated.
2.1
Basis of Preparation
The financial statements of Amalgamated Telecom Holdings Limited and the group
have been prepared in accordance with International Financial Reporting Standards (“IFRS”).
These financial statements have been prepared under the historical cost convention, as
adjusted by the revaluation increments of land and buildings, available-for-sale financial
assets, financial assets and financial liabilities at fair value through profit or loss.
In the application of IFRS, management is required to make judgments, estimates and
assumptions about carrying values of assets and liabilities that are not readily apparent from
other sources. The estimates and associated assumptions are based on historical experience
and various other factors that are believed to be reasonable under the circumstance, the
results of which form the basis of making the judgments. Actual results may differ from
these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised if the revision
affects only that period or in the period of the revision and future periods if the revision affects
both current and future periods. Judgments made by management in the application of IFRS
that have significant effects on the financial statements and estimates with a significant risk of
material adjustments in the future periods are disclosed, where applicable, in the relevant notes
to the financial statements.
28
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
2.1
Basis of Preparation - continued
The areas involving a higher degree of judgment or complexity, or areas where assumptions
and estimates are critical to the financial statements are disclosed in Note 4.
Accounting policies are selected and applied in a manner which ensures that the resulting
financial information satisfies the concepts of relevance and reliability, thereby ensuring
that the substance of the underlying transactions or other events is reported.
Standards, amendments and interpretations issued
The following standards, amendments and interpretations to existing standards were published
and are mandatory for the accounting periods beginning on or after 1 January 2012 or later
periods. No significant impact arose out of these standards, amendments and interpretations.
The amendments to existing standards were for the following:
• IAS 1, ‘Financial Statement Presentation – Presentation of Items of Other Comprehensive
Income’ (effective from 1 July 2012);
• IAS 12, ‘Income Taxes – Recovery of Underlying Assets’ (effective from 1 January 2012);
• IAS 19 (Amendment), ‘Employee Benefits’ (effective 1 January 2013);
• IAS 27, ‘Separate Financial Statements’ (effective 1 January 2012);
• IAS 28, ‘Investments in Associates and Joint Ventures’ (effective 1 January 2013);
• IFRS 9, ‘Financial Instruments – Classification and Measurement’ (effective 1 January 2013)
The International Accounting Standards Board (IASB) issued the following new standards:
• IFRS 10, ‘Consolidated Financial Statements’ (effective from 1 January 2013);
• IFRS 11, ‘Joint Arrangements’ (effective from 1 January 2013);
• IFRS 12, ‘Disclosure of Involvement in Other Entities’ (effective from 1 January 2013); and
• IFRS 13, ‘Fair Value Measurement’ (effective from 1 January 2013).
The company will review the impact of these standards on the group in the next financial year.
2.2
Basis of Consolidation
Subsidiaries
Subsidiaries are all entities over which the group has the power to govern the financial
and operating policies generally accompanying a shareholding of more than one half of the
voting rights. The existence and effect of potential voting rights that are currently exercisable
or convertible are considered when assessing whether the group controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the group.
They are de-consolidated from the date that control ceases.
29
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
2.2
Basis of Consolidation - continued
Subsidiaries continued
The purchase method of accounting is used to account for the acquisition of subsidiaries by
the group. The cost of an acquisition is measured as the fair value of the assets given, equity
instruments issued and liabilities incurred or assumed at the date of the exchange, plus costs
directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured initially at their fair values at the
acquisition date, irrespective of the extent of any non-controlling interest. The excess of the
cost of the acquisition over the fair value of the group’s share of the identifiable net assets
acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the
net assets of the subsidiary acquired, the difference is recognised directly in the statement of
comprehensive income as fair value gain on acquisition.
The consolidated financial statements are prepared by combining the financial statements
of all the entities that comprises the group. A list of subsidiaries appears in Note 30 to the
financial statements.
Inter-company transactions, balances and unrealised gains or losses on transactions between
group companies are eliminated. Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by the group.
The financial statements of Amalgamated Telecom Nominees Limited have not been
incorporated in the consolidated financial statements for the reasons stated in Note 30.
While the company owns 49% in FINTEL, the company also manages the 51% shareholding of
the Government of Fiji in FINTEL in accordance with a management agreement. The results
of FINTEL have been incorporated in the consolidated financial statements from the date of
acquisition.
Non-Controlling Interest
Non-controlling interest represents that part of the net results of operations and net assets of
the subsidiaries, which are not owned, directly or indirectly by the company.
Associates
Associates are all entities over which the group has significant influence but not control,
generally accompanying a shareholding of between 20% and 50% of the voting rights.
Investments in associates are accounted for using the equity method of accounting and are
initially recognised at cost. The group’s investment in associates includes goodwill identified on
acquisition, net of any accumulated impairment loss.
The group’s share of its associates’ post-acquisition profits or losses is recognised in the
statement of comprehensive income, and its share of post-acquisition movements in reserves
is recognised in reserves. The cumulative post-acquisition movements are adjusted against the
carrying amount of the investment. When the group’s share of losses in an associate equals or
exceeds its interest in the associate, including any other unsecured receivables, the group does
not recognise further losses, unless it has incurred obligations or made payments on behalf of
the associate.
30
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
2.2
Basis of Consolidation - continued
Associates - continued
Unrealised gains on transactions between the group and its associates are eliminated to the
extent of the group’s interest in the associates. Unrealised losses are also eliminated unless
the transaction provides evidence of an impairment of the asset transferred.
2.3
Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings
are subsequently stated at amortised cost; any difference between the proceeds (net of
transaction costs) and the redemption value is recognised in the statement of comprehensive
income over the period of the borrowings using the effective interest rate method.
Borrowings are classified as current liabilities unless the group has an unconditional right to
defer settlement of the liability for at least 12 months after the balance date.
2.4
Borrowing Costs
The borrowing costs that are directly attributable to the acquisition of the capital assets are
capitalised until substantially all the activities necessary to prepare the capital assets for its
intended use are complete. Other borrowing costs are recognised as an expense in the year
in which they are incurred.
2.5
Cash and Cash Equivalents
For the purpose of statement of cash flows, cash and cash equivalents includes cash on
hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities in the statement of financial position.
2.6
Comparatives
Where necessary, amounts relating to prior years have been reclassified to facilitate
comparison and achieve consistency in disclosure with current year amounts.
2.7
Dividend Distribution
Dividend distribution to the company’s shareholders is recognised as a liability in the group’s
and company’s financial statements in the period in which the dividends are proposed or
declared by the company’s directors.
2.8
Earnings per Share
Basic earnings per share
Basic earnings per share (EPS) is determined by dividing net profit after income tax attributable
to members of the holding company by the weighted average number of ordinary shares during
the year.
Diluted earnings per share
Diluted EPS is the same as the basic EPS as there are no ordinary shares which are considered
dilutive.
31
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
2.9
Employee Benefits
Wages, salaries and sick leave
Liabilities for wages and salaries expected to be settled within 12 months of the reporting date
are accrued up to the reporting date. Liabilities for non-accumulating sick leave are recognised
when the leave is taken and measured at the rates prevailing at that time.
Annual leave
The liability for annual leave is recognised in the provision for employee benefits and is
measured at the rates prevailing at year end.
Long service leave
The liability for long service leave is recognised in the provision for employee benefits and
measured as the present value of expected future payments to be made in respect of services
provided by employees up to the reporting date. Consideration is given to expected future
wage and salary levels, experience of employee departures and periods of service. Expected
future payments are discounted using market yields at the reporting date on government
bonds with terms to maturity and currency that match, as closely as possible, the estimated
future cash outflows.
Retirement benefits
The liability for retirement benefits is recognised in the provision for employee benefits and
measured as the present value of expected future payments to be made in respect of services
provided by employees up to the reporting date.
Bonus plans
The companies under the group pay bonuses to employees based on performance of the group
and achievement of individual objectives by the employees. The group recognises a provision
where contractually obliged or where there is a past practice, subject to performance evaluation.
Terminal benefits
The group recognises termination benefits when it is demonstrably committed to either
terminating the employment of current employees according to a formal plan without the
possibility of withdrawal; or providing termination benefits as a result of an offer made for
redundancy. Benefits falling due more than 12 months of the balance date are disclosed at the
present value.
Defined contribution plans
Contributions to Fiji National Provident Fund are expensed when incurred.
2.10 Financial Assets
The group classifies its financial assets in the following categories: loans and receivables,
held-to-maturity investments and available-for-sale financial assets. The classification depends
on the purpose for which the financial assets were acquired. Management determines the
classification of its financial assets at initial recognition.
32
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
2.10 Financial Assets - continued
(a) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. They are included in current assets, except for
maturities greater than 12 months after the balance date, which are classified as non-current
assets. The group’s loans and receivables comprise ‘trade and other receivables’ disclosed in
the statement of financial position (Note 19).
(b) Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable
payments and fixed maturities that the Group’s management has the positive intention and
ability to hold to maturity.
Held-to-maturity investments are measured at subsequent reporting dates at amortised cost.
Held-to-maturity investments in Fiji Government Registered Stock by the group are recorded at
their amortised cost and not remeasured to market values as they are considered likely to be
held to maturity in line with investment objectives and fixed price nature of the investments.
(c) Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either designated in this category
or not classified in any of the other categories. They are included in non-current assets unless
management intends to dispose of the investment within 12 months of the balance date.
Equity investments in subsidiary companies not held for trading are classified under this
category.
Investments in subsidiaries are classified as available-for-sale investments and are accounted
for at cost less any accumulated impairment charges in the financial statements of the
company.
Available-for-sale financial assets are initially recognised at fair value plus transaction
costs. Financial assets are de-recognised when the rights to receive cash flows from the
investments have expired or have been transferred and the group has transferred substantially
all risks and rewards of ownership.
Available-for-sale financial assets are subsequently carried at fair value. Changes in the fair
value of the available- for-sale financial assets are recognised in equity. When financial assets
classified as available for sale are sold or impaired, the accumulated fair value adjustments
recognised in equity are included in the statement of comprehensive income as ‘gains and
losses’.
Dividends on available-for-sale financial assets are recognised in the statement of comprehensive
income as part of revenue when the company’s right to receive payments is established.
33
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
2.10 Financial Assets - continued
(c) Available-for-sale financial assets - continued
The company assesses at each balance date whether there is objective evidence that a financial
asset or a group of financial assets is impaired. In the case of equity securities classified as
available for sale, a significant or prolonged decline in the fair value of the security below its
cost is considered as an indicator that the securities are impaired. If any such evidence exists
for available-for-sale financial assets, the cumulative loss – measured as the difference
between the acquisition cost and the current fair value, less any impairment loss on that
financial asset previously recognised in profit or loss – is removed from equity and recognised in
the statement of comprehensive income.
2.11 Foreign Currency Translation
a) Functional and presentation currency
The group operates in Fiji and hence the financial statements are presented in Fiji dollars,
which is the group’s functional and presentation currency.
b) Transactions and balances
Foreign currency transactions are translated into Fiji currency using the exchange rates
prevailing at the dates of the transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the translation at year-end exchange
rates of monetary assets and liabilities denominated in foreign currencies are recognised in the
statement of comprehensive income.
2.12 Government Grants
Government grants are recognised in the statement of financial position initially as deferred
revenue where there is reasonable assurance that they will be received and that the group will
comply with the conditions attached to them. Grants that compensate the group for expenses
incurred are recognised as revenue in the statement of comprehensive income on a systematic
basis in the same periods in which the expenses are incurred. Grants that compensate the
group for the cost of an asset are recognised in the statement of comprehensive income
as revenue on a systematic basis over the useful life of the asset.
2.13 Impairment of Non-Financial Assets
Assets that have an indefinite useful life are not subject to amortisation and are tested
annually for impairment. Assets that are subject to amortisation are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which the asset’s carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s
fair value less costs to sell and value in use. For the purposes of assessing impairment, assets
are grouped at the lowest levels for which there are separately identifiable cash flows (cashgenerating units). Non-financial assets other than goodwill that suffered impairment are
reviewed for possible reversal of the impairment at each reporting date.
2.14 Income Tax
The current income tax charge is calculated on the basis of the tax laws enacted or substantively
enacted at the balance date. Management periodically evaluates positions taken in tax returns
with respect to situations in which applicable tax regulations is subject to interpretation and
establishes provisions where appropriate on the basis of amounts expected to be paid to the
tax authorities.
34
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
2.14 Income Tax - continued
Deferred income tax is provided in full, using the liability method, on temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts in the financial
statements. However, the deferred income tax is not accounted for if it arises from initial
recognition of an asset or liability in a transaction other than a business combination that
at the time of the transaction affects either accounting nor taxable profit or loss. Deferred
income tax is determined using tax rates (and laws) that have been enacted or substantially
enacted by the balance date and are expected to apply when the related deferred income tax
asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable
profit will be available against which the temporary differences and the eligible tax losses can
be utilised.
Current and deferred tax for the period
Current and deferred tax is recognised as an expense or income in the statement of comprehensive
income, except when it relates to items credited or debited directly to equity, in which case the
deferred tax is also recognised directly in equity.
2.15 Intangible Assets
(a) Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the
group’s share of the net identifiable assets of the acquired subsidiary/associate at the date of
acquisition. Goodwill on acquisitions of subsidiaries is included in ‘intangible assets’. Goodwill
on acquisitions of associates is included in ‘investments in associates’ and is tested for
impairment as part of the overall balance. Separately recognised goodwill is tested annually
for impairment and carried at cost less accumulated impairment losses. Impairment losses on
goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying
amount of goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The
allocation is made to those cash-generating units or groups of cash-generating units that
are expected to benefit from the business combination in which the goodwill arose.
(b) Computer software
Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire
and bring to use the specific software. These costs are amortised over their estimated useful
lives (three to five years).
Costs associated with developing or maintaining computer software programmes are
recognised as an expense as incurred. Costs that are directly associated with the development
of identifiable and unique software products controlled by the group, and that will probably
generate economic benefits exceeding costs beyond one year, are recognised as intangible
assets. Costs include the software development, employee costs and an appropriate portion
of relevant overheads.
Computer software development costs recognised as assets are amortised over their estimated
useful lives.
35
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
2.15 Intangible Assets - continued
(c) Investment in movie productions
Investments in movie productions have been valued at cost and reduced by an impairment
charge to arrive at a carrying amount which is an amount the company expects to recover from
the exploitation of the copyright in accordance with the Production Investment Agreement.
(d) IRU Capacity
The IRU network capacity has been recorded at cost and is amortised over its estimated useful
lives, as follows:
-
IP Transit
-
STM – 1
-
STM - 4
Australia Link
3 years
10 years
10 years
USA Link
3 years
10 years
10 years
2.16 Inventories
Inventories comprise of merchandise and consumables, and are valued at the lower of cost and
net realisable value. Net realisable value is the estimated selling price in the ordinary course
of business, less the estimated cost of completion and selling expenses.
The cost of inventories has been determined on a weighted average cost basis or first-infirst-out principle and includes expenditure incurred in acquiring the inventories and bringing
them to their existing location and condition.
Provisions for inventory obsolescence are raised based on a review of inventories. Inventories
considered obsolete or un-saleable are written off in the year in which they are identified.
2.17 Leases
Leases in which a significant portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases. Payments made under operating leases (net of any
incentives received from the lessor) are charged to the statement of comprehensive income on
a straight-line basis over the period of the lease.
Rental income from operating leases is recognised on a straight line basis over the term of the
relevant lease.
2.18 Property, Plant and Equipment
Property, plant and equipment is stated at historical cost less accumulated depreciation
and impairment losses. Historical cost includes expenditure that is directly attributable to the
acquisition and installation of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with the
item will flow to the group and the cost of the item can be measured reliably. The carrying
amount of a replaced part is de-recognised. All other repairs and maintenance are charged to
the statement of comprehensive income during the financial period in which they are incurred.
36
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
2.18 Property, Plant and Equipment - continued
Cost of leasehold land includes initial premium payment or price paid to acquire leasehold land
including acquisition costs.
Freehold land is not depreciated.
Depreciation on other assets is calculated using the straight-line method to allocate their cost
or revalued amounts to their residual values over their estimated useful lives, as follows:
-
Leasehold land
Buildings
Freehold properties
Southern Cross Cable IRUs
Exchange plant and telecommunication infrastructure
Subscriber equipment
Trunk network plant
Plant and machinery
Motor vehicles
Furniture, fittings and office equipment
Computer equipment and software
Term of lease
10 - 40 years
9 – 13 years
9 – 82 years
10 - 15 years
3 - 20 years
10 - 15 years
4 – 16 years
3 - 5 years
3 – 10 years
3 - 5 years
The asset’s residual values and useful lives are reviewed, and adjusted if appropriate, at each
balance date.
During the year, ATH Call Centre Limited, a subsidiary company reviewed and revised the
estimated useful lives of computer equipment, furniture, fittings and office equipment. The
revision resulted in an increase in estimated useful lives of the assets which resulted in an
increase in profit for the year of $349,382.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying
amount and are taken into account in determining the results for the year.
2.19 Provisions
Provisions are recognised when the group has a present legal or constructive obligation as a
result of past events; it is probable that an outflow of resources will be required to settle the
obligation; and the amount can be reliably estimated. Provisions are not recognised for future
operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required
in settlement is determined by considering the class of obligations as a whole. A provision is
recognised even if the likelihood of an outflow with respect to any one item included in the
same class of obligations may be small.
37
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
2.19 Provisions - continued
Provisions are measured at the present value of the expenditures expected to be required to
settle the obligation using a pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the obligation.
2.20 Revenue Recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of
goods and services in the ordinary course of the group’s activities. Revenue is shown net of
Value Added Tax, returns, rebates, discounts and after eliminating sales within the group.
The group recognises revenue when the amount of revenue can be reliably measured, it is
probable that future economic benefits will flow to the entity and when specific criteria have
been met for each of the group’s activities as described below. The amount of revenue is not
considered to be reliably measurable until all contingencies relating to the sale have been
resolved. The group bases its estimates on historical results, taking into consideration the type
of customer, the type of transaction and the specifics of each arrangement.
The group provides telecommunication and related services which include fixed line,
mobile and internet communication services, compilation and publishing of the Fiji Telephone
Directory, pre-paid telephony services, sale of telecommunications related office equipment
and provision of management and call centre services.
a) Sale of telecommunication and related services
Revenue is recognised based on billing cycles through the month. Unbilled revenue from the
billing cycle date to the end of each month is recognised as revenue in the month the service
is provided.
Revenue from prepaid products and fixed monthly charges billed in advance is deferred and
recognised as revenue either once the related service has been provided or when the product
date has expired, whichever falls earlier.
Revenue from the provision of internet services is recognised upon the use of service by its
customers.
Revenue from installation, connection and associated costs are recognised upon completion of
the installation or connection.
Revenue from publication of telephone directories is recognised upon dispatch of the directories
for distribution. Advance billings and monies collected in advance are deferred. Revenue from
fixed-priced contracts in relation to on-line directory is recognised over the term of the contract.
Revenue earned from publication of the telephone directory is stated net of allowances.
b) Sale of equipment
Sale of equipment is recognised when a group entity sells a product to the customer. Revenue
is recognised at the point the product is dispatched from the warehouse or sold at a group retail
outlet.
38
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
2.20 Revenue Recognition - continued
c) Interest Income
Interest income is recognised on a time-proportion basis using the effective interest rate
method.
d) Management fees income
Management fees income is recognised on an accrual basis.
e) Dividend income
Dividend income from investments is recognised when the right to receive payment is established.
f) Investment in movie production
Income from exploitation of the copyright in movie production is brought to account when the
right to receive royalty income is established.
2.21 Segment Reporting
A business segment is a group of assets and operations engaged in providing products or
services that are subject to risks and returns that are different from those of other business
segments. A geographical segment is engaged in providing products or services within a
particular economic environment that are subject to risks and return that are different from
those of segments operating in other economic environments.
For reporting purposes, the group considers itself to be operating predominantly in the
telecommunications industry and revenue from other sources are not material. In addition, the
group operates predominantly in Fiji only and hence one geographical segment for reporting
purposes. The group has disclosed three reportable operating segments as follows (as outlined
in Note 32):
•
•
•
Fixed line telecommunications (“FL Telecom”) segment includes all fixed line
telecommunication services including the sale or lease of telecommunications
related office equipment, accessories and services including prepaid telephony and card
services;
Mobile telecommunications (“Mobile Telecom”) segment includes all mobile
telecommunication services including the sale of associated equipment, accessories
and services; and
Other segment comprises units which contribute less than 10% of group total
revenue and include provision of internet services, directory services, PAYECOMM
products, call centre and management services.
2.22 Share Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of
new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
2.23 Trade Receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised
cost using the effective interest rate method, less provision for impairment. A provision for
impairment of trade receivables is established when there is objective evidence that the group
will not be able to collect all amounts due according to the original terms of the receivables.
39
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
2.23 Trade Receivables - continued
Provision is raised on a specific debtor level as well as on a collective basis. Significant financial
difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are considered indicators that a specific
debtor balance is impaired. Impairment assessed at a collective level is based on past experience
and data in relation to actual write- offs. The carrying amount of the asset is reduced through
the use of an allowance account, and the amount of the loss is recognised in the statement
of comprehensive income. When a trade receivable is uncollectible, it is written off against the
allowance account for trade receivables.
Subsequent recoveries of amounts previously written off are credited in the statement of
comprehensive income.
2.24 Trade Payables
Trade payables are recognised initially at fair value and subsequently measured at amortised
cost using the effective interest rate method.
2.25 Value Added Tax (VAT)
Revenues, expenses, assets and liabilities are recognised net of the amount of Value Added
Tax (VAT), except where the amount of VAT incurred is not recoverable from the taxable
authority, it is recognised as part of the cost of acquisition of an asset or as part of an item
of expense, or for trade receivables and trade payables which are recognised inclusive of VAT.
NOTE 3.
FINANCIAL RISK MANAGEMENT
3.1 Financial Risk Factors
The group’s activities expose it to a variety of financial risks: market risk (including foreign
exchange risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit
risk and liquidity risk. The group’s overall risk management programme focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the
group’s financial performance.
Risk management is carried out by executive management. Executive management identifies,
evaluates and monitors financial risks in close co-operation with the operating units.
(a) Market risk
(i) Foreign exchange risk
The group largely procures most of its telecommunication equipment and supplies
from overseas and is exposed to foreign exchange risk arising from various currency
exposures, primarily with respect to the US, Australian and NZ dollar. Foreign exchange
risk arises from future commercial transactions and recognised assets and liabilities.
Management has set up a policy to require group companies to manage their foreign
exchange risk against their functional currency, in this case the Fiji dollar. Foreign
exchange risk arises when future commercial transactions or recognised assets or
liabilities are denominated in a currency other than the Fiji Dollar. For significant
settlements, the group companies are required to seek quotations from recognised
banks and use the most favourable exchange rate for purposes of the settlement.
40
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 3.
FINANCIAL RISK MANAGEMENT - continued
3.1 Financial Risk Factors - continued
(a) Market risk - continued
(i) Foreign exchange risk - continued
As at year end, assets and liabilities denominated in foreign currencies are significant
and hence changes in the US, Australian and NZ dollars by 10% (increase or decrease)
is expected to have a significant impact on the net profit and equity balances currently
reflected in the group financial statements.
Further, movements in the value of the Fiji dollar will continue to have a significant
impact on the net profit and equity balances in the group’s financial statements in
future, primarily in relation to the significant capital expenditure outlays in the next
financial year and the consistent procurement of maintenance products and services
from overseas.
(ii) Price risk
The group does not have investments in equity securities quoted on stock exchange
and hence is not exposed to equity securities price risk. The group is not exposed to
commodity price risk.
(iii) Regulatory risk
The group’s profitability can be significantly impacted by regulatory agencies
established and to be established which governs the telecommunication sector in Fiji.
Specifically retail and wholesale prices are regulated by the Commerce Commission and
the group’s operating environment will be regulated by Telecom Authority of Fiji when
the Telecom Authority of Fiji is fully operational.
(iv) Cash flow and fair value interest rate risk
The group’s investments are on fixed terms with the group intending to hold these
investments until their maturity dates.
The group has significant interest-bearing assets in the form of short-term and long
term deposits. These are at fixed interest rates and hence there are no interest rate risks
during the period of investment. For re-investment of short and long term deposits, the
group negotiates an appropriate interest rate with the banks and invests with the bank
which offers the highest interest return.
Given the fixed nature of interest rates described above, the group has a high level of
certainty over the impact on cash flows arising from interest income. Accordingly the
group does not require simulations to be performed over impact on net profits arising
from changes in interest rates.
In relation to borrowings from Fiji National Provident Fund, the group is not exposed
to interest rate risk as it borrows funds at fixed interest rates.
In relation to the bank overdraft from bank, the group to a certain extent is exposed to
interest rate risk as the bank overdraft is at floating interest rates. The risk is managed
closely within the approved policy parameters.
41
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 3.
FINANCIAL RISK MANAGEMENT - continued
3.1 Financial Risk Factors - continued
(b) Credit risk
Credit risk is managed at group and at individual entity level. Credit risk arises from cash and
cash equivalents, deposits with banks, as well as credit exposures to wholesale and retail
customers, including outstanding receivables. For banks, only reputable parties with known
sound financial standing are accepted. All new customers undergo a credit check before a
credit account is allowed. Individual credit limits are set based on internal ratings in accordance
with limits set by the executive management. The utilisation of credit limits is regularly
monitored. Sales to retail customers can be on credit depending on whether the customer has
a pre-approved credit account or otherwise in cash. The group holds security deposits for a large
number of its customers.
(c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable
securities to ensure availability of funding. The group monitors liquidity through rolling
forecasts of the group’s cash flow position. Overall the group does not see liquidity risk
as high given that a reasonable portion of revenues are billed and collected in advance or
generally within 30 days.
The table below analyses the group’s financial liabilities into relevant maturity groupings
based on the remaining period at the balance date to the contractual maturity date. The
amounts disclosed in the table are the contractual undiscounted cash flows.
Consolidated Less than Between 1 Between 3 Over 5
1 year
and 2
and 5
years
yearsyears
At 31 March 2012
$’000 $’000 $’000 $’000
Borrowings (Note 22)
Trade and other payables (Note 24)
3.2
15,301
58,195
15,161
13,171
67,756
-
17,886
-
At 31 March 2011
Borrowings (Note 22)
28,918
16,672
50,000
Trade and other payables (Note 24)
74,850
17,341
-
20,000
-
Capital Risk Management
The group’s objectives when managing capital are to safeguard the group’s ability to continue as
a going concern in order to provide returns for shareholders and benefits for other stakeholders
and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the group may adjust the amount of
dividends paid to shareholders, return capital to shareholders, issue new shares and/or sell
assets to reduce debt. The group monitors capital on the basis of the gearing ratio. This ratio
is calculated as net debt divided by total capital. Net debt is calculated as total borrowings
(including ‘current and non-current borrowings’ as shown in the consolidated statement of
financial position) less cash on hand and at bank and short term deposits. Total capital is
calculated as ‘equity’as shown in the consolidated statement of financial position plus net debt.
42
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 3.
FINANCIAL RISK MANAGEMENT - continued
3.2
Capital Risk Management - continued
Consolidated The gearing ratios at 31 March 2012 and 2011 were as follows:
2012
2011
$’000$’000
Total borrowings (Note 22)
116,104
115,590
(30,497)
(12,097)
(509)
(1,000)
Net debt 85,098
102,493
Total equity
271,158
240,777
356,256
343,270
24%
30%
Less: Cash on hand and at bank (Note 20)
Less: Short term deposits (Note 20)
Total capital (total equity plus net debt)
Gearing ratio (net debt / total capital x 100) The movement in the gearing ratio during 2012 resulted primarily from the increase in cash and cash
equivalents during the financial year.
3.3 Fair Value Estimation
The carrying value less impairment provision of trade receivables and payables are assumed
to approximate their fair values. The carrying values of financial liabilities are estimated to
approximate their fair values.
NOTE 4.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgments are continually evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
4.1
Critical Accounting Estimates and Assumptions
The group makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates and
assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are discussed below.
(a) Fair value of equity instruments
Management uses judgment to select a variety of methods and make assumptions that are
mainly based on market conditions existing at each balance date. Given that the entities
subject to these investments are primarily subsidiaries of the holding company, the fair value
of the equity instruments is estimated to assume their carrying values.
(b) Estimated impairment of investment in movie productions
The investment in movie productions comprises of a guaranteed and a non-guaranteed portion.
The impairment allowance in Note 14 represents the provision based on the management’s
assessment of the expected recoveries of the exploitation of the copyright in the movie
productions.
43
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 4.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS - continued
4.2 Critical Judgments in Applying the Entity’s Accounting Policies
(a) Impairment of accounts receivable
Impairment of accounts receivable balances is assessed at an individual as well as on a
collective level. At a collective level, all debtors in the 120 days plus category (excluding
those covered by a specific impairment provision) are estimated to have been impaired and
are accordingly provided for.
(b) Impairment of property, plant and equipment and intangible assets
The group assesses whether there are any indicators of impairment of all property, plant and
equipment and intangible assets at each reporting date. Property, plant and equipment and
intangible assets are tested for impairment and when there are indicators that the carrying
amount may not be recoverable, a reasonable provision for impairment is created. For the year
ended 31 March 2012, no additional provision for impairment has been made as the group
reasonably believes that no indicators for impairment exist.
A reversal of impairment loss previously recognised was recorded during the year as a result of
the reassessment.
(c) Deferred tax assets
Deferred tax assets are recognised for all tax losses to the extent that taxable profits will be
available against which the losses can be utilised. Significant management judgment is required
to determine the amount of deferred tax assets that can be recognised, based upon the likely
level of future taxable profits together with future planning strategies. For significant tax
losses unutilised, the group sought an independent opinion on management estimates.
(d) Provision for stock obsolescence
Provision for stock obsolescence is assessed and raised on a specific basis based on a
review of inventories. Inventories considered obsolete or un-serviceable are written off in the
year in which they are identified.
(e) Printed telephone directory - revenue and expense recognition
Revenue related to printed directories is recognised once the directories have been dispatched
for distribution. All advance billings and monies collected in advance are deferred. Costs
including overhead expenses incurred in relation to securing advertisements and in the
publishing of the directories are also deferred until the associated revenues are recognised.
(f) Fair value of equity instruments
Management uses judgment to select a variety of methods and make assumptions that are
mainly based on market conditions existing at each balance date. Given that the entities
subject to these investments are primarily subsidiaries of the company, the fair value of the
equity instruments is estimated to assume their carrying values.
44
Notes to the Financial Statements
For the Year ended 31 March 2012
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
NOTE 5.
REVENUE
Access fees
Call revenue
Card services
Data network revenue
Dividends from subsidiary companies
Directory revenue
Equipment and ancillaries
Management fees
Operator services
Other sales and service
11,040
193,637
3,639
22,690
-
4,070
5,946
6,323
121
1,945 11,251
189,584
5,685
24,647
-
4,079
6,215
816
148
4,643 -
-
-
-
19,530
-
-
6,323
-
-
16,200
816
-
249,411
247,068
25,853 17,016
Airtime and PSTN charges
Directory production costs
Equipment and ancillary costs
35,965
406
30,395 34,320
587
31,526 -
-
-
-
NOTE 7. OTHER INCOME
66,766 66,433 -
-
- -
-
-
-
-
-
25 14
25
14
NOTE 6. DIRECT COSTS
Amortisation of government grant 45
54
Bad debts recovered
51
392
Exchange gain:
- realized
2,580 835 - unrealized
594 1,060 Fair value gain on acquisition of FINTEL
8,745
-
Gain on sale of property, plant and equipment
222 64 Others
5,097 4,910 17,334 7,315
NOTE 8. PERSONNEL COSTS
Wages and salaries, including leave pay
and other benefits
FNPF and other superannuation contributions
Other personnel costs
31,331
3,569
2,867 29,645
3,248
3,344 37,76736,237
Number of employees as at balance date (Nos.)
45
960
994
269
26
4
340
28
16
299
384
4
5
Notes to the Financial Statements
For the Year ended 31 March 2012
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
NOTE 9. OPERATING EXPENSES
Auditors’ remuneration
- Audit services
134
137
10
10
- Other services
45
78
7
(12)
Bad debts and impairment of receivables (net)
811
2,405
-
Consultancy and contractors fees
Directors’ remuneration:
800
1,294
-
- Fees and allowances
254
272
63
64
Electricity5,8425,393 15
11
Insurance 3,8613,564 66 92
Legal and professional
851
321
516
41
License fees
11,216
5,520
-
Loss on disposal of assets
-
200
-
Operating leases
6,327
5,939
47
46
Provision for stock obsolescence
(1,021)
548
-
Repairs and maintenance
3,055
3,278
1
3
Tax penalties
-
157
-
Travelling and transportation
921
1,806
62
49
Others
20,199 17,256 484
352
53,29548,168 1,271
656
NOTE 10. FINANCE INCOME - NET
Finance income:
- Interest income on held-to-maturity investments
- Interest income on advances to related parties NOTE 11.
2,862
60 2,998
60 2,740
1,481 2,480
1,699
Interest expense:
- Borrowings
2,922 3,058 4,221 4,179
(8,325) (8,325) (7,190) (7,190) (1,769) (1,769) (1,749)
(1,749)
Finance (cost)/income – net
(5,403)
(4,132)
2,452
2,430
INCOME TAX EXPENSE
(a)
Income tax expense
Current tax
Deferred tax asset
Deferred tax liability
Effect in change in tax rate from 28%
to 20%
(Over)/under provided in prior years
12,397
5,780
1,765
9,143
4,077
1,444 1,567
4
-
538
-
(7,170)
(89) -
317
-
-
-
12,683 14,981 1,571 538
46
Notes to the Financial Statements
For the Year ended 31 March 2012
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
NOTE 11. INCOME TAX EXPENSE - continued
(b) Numerical reconciliation of income
tax expense to prima facie tax payable
Profit before income tax expense
45,848
32,643
24,928
18,349
Tax at the Fiji tax rate of 28%
(company – 20%) (2011: 29%)
9,423
9,292
4,986
3,670
Tax effect of amounts which are not deductible
(taxable) in calculating taxable income:
Export income allowances
(487)
(326)
-
Non deductible expenses
783
285
487
108
Dividend income
-
-
(3,906)
(3,240)
Penalties-
43-Amortisation of government grant
(12)
(16)
-
Investment allowances
(3,065)
(9,934)
-
Temporary differences and tax
losses not recognised / de-recognised
13,299
15,352
-
(Over)/under provision in income
tax in prior years
(89)
317
-
Under/(over) provision of deferred tax
in prior years
4
(30)
4
Effect of change in tax rate
(7,170)
-
-
Others
(3) (2) -
-
(c)
Income tax expense
12,683 14,981 1,571 538
Un-recognised deferred income tax
asset balances
Un-recognised tax losses Un-recognised/de-recognised temporary
differences
19,483 16,217 -
-
-
795 -
-
Un-recognised deferred tax balances 19,483 17,012 -
-
NOTE 12. EARNINGS PER SHARE
(a)
Basic
Basic earnings per share are calculated in accordance with the policy outlined in Note 2.8.
Profit attributable to equity
holders of the company ($’000)
18,362
4,142
Weighted average number of
ordinary shares in issue (nos.)422,104,868 422,104,868
Basic earnings per share (cents per share)
4
1
(b) Diluted - Diluted earnings per share is same as basic earnings per share.
47
48
19,688
269,076
(44,435) 845
-
66,655
-
1,101
244,910
Telecommunications
equipment
and plant
$’000
15,687
(4,570) -
-
4,709
-
1,319
14,229
$’000
Computer
equipment
6,091
(1,232) -
-
1,557
(217)
219
5,764
Furniture,
fittings and
office
equipment
$’000
2,115
(2,154) -
-
-
(3)
382
1,468
(146) -
(785)
-
-
619
1,780
$’000
$’000
3,890
Capital
Spares
Motor
Vehicles
33,504
-
-
(148)
(73,313)
-
51,387
55,578
$’000
Work in
Progress
347,629
(54,149)
845
(933)
-
(220)
55,027
347,059
$’000
Total
Net book amount
19,688 -
Accumulated depreciation
Accumulated impairment allowance 39,520
(19,832)
Cost
269,076 (7,602) (367,669)
644,347
15,687
-
(33,805)
49,492
6,091
-
(11,132)
2,115
-
(10,530)
17,223 12,645
1,468
(146) -
33,504
-
-
347,629
(7,748)
(442,968)
1,614 33,504798,345
At 31 March 2011
Closing net book amount (1,612) -
Depreciation/impairment charge
-
Transfers
Reversal of impairment loss
-
392
Disposals
Consumed during the year
-
20,908
$’000
Leasehold
Land and
Buildings
Additions
Opening net book amount
Year ended 31 March 2011
Consolidated
NOTE 13. PROPERTY, PLANT AND EQUIPMENT
Notes to the Financial Statements
For the Year ended 31 March 2012
-
Reversal of impairment loss
49
-
-
3,435
-
-
24,018
4,155
295,722
3,435
-
(252)
12,691
-
(38,932)
51,623
12,691
(5,313)
-
-
6,043
-
(12,768)
18,811
6,043
(1,340)
-
-
104
(2)
1,190
6,091
Furniture,
fittings and
office
equipment
$’000
1,054
-
(11,193)
12,247
1,054
(1,386)
-
-
-
(21)
346
10,174
-
-
-
(35,687)
(6,562)
18,919
354,829
(51,268)
7,603
(2,318)
-
(6,585)
59,768
347,629
$’000
$’000
33,504
Total
Work in
Progress
1,692
(146)
-
10,174
-
-
354,829
4,009
(556,216)
1,838 10,174907,036
1,692
-
-
(2,318)
-
-
2,542
1,468
$’000
$’000
2,115
Capital
Spares
Motor
Vehicles
Included in additions during the year were property, plant and equipment acquired on consolidation of Fiji International Telecommunications Limited (“FINTEL”)
results in March 2012. The written down value of FINTEL assets included in additions during the year is $34.2 million.
The reversal of impairment loss of $7.6 million was in respect to VTSAT at Yaqara. Impairment loss which was recognised during 2007 has been reversed
based on evaluation and reassessment carried out by the management taking into consideration current usage and future usage.
Included in leasehold land and buildings are properties shared by TFL and Post Fiji Limited and reflects the amount to the extent funded by TFL up to 30 June
1996 and any subsequent costs incurred by TFL on the properties thereafter. The titles in relation to the shared land and buildings are not held in the name of
the TFL. Furthermore, there is an ownership dispute between Post Fiji Limited and TFL in respect to the New Wing Building in Suva. The dispute is currently
subject to mediation proceedings.
Net book amount
Accumulated impairment allowance
(471,686)
45,403 763,253 3,687
(21,385)
3,435
-
-
Accumulated depreciation
295,722
(42,002)
7,603
1,489
-
828
15,687
$’000
$’000
-
34,094
-
26,951
269,076
Computer
equipment
Freehold
properties
Cost
At 31 March 2012
(1,227)
-
Consumed during the year
24,018
-
Transfers
Closing net book amount
-
Disposals
Depreciation/impairment charge
5,557
19,688
Leasehold
TelecomLand and munications
Buildings
equipment
and plant
$’000
$’000
Additions
Opening net book amount
Year ended 31 March 2012
Consolidated
NOTE 13. PROPERTY, PLANT AND EQUIPMENT - continued
Notes to the Financial Statements
For the Year ended 31 March 2012
-
Closing net book amount 50
-
-
Accumulated depreciation Net book amount -
-
Depreciation charge Closing net book amount
-
-
-
Cost Accumulated depreciation Net book amount At 31 March 2012
-
-
Additions
Transfers
-
Opening net book amount
Year ended 31 March 2012
-
Cost At 31 March 2011
-
-
Transfers
-
16
10
$’000
Computer
equipment
-
20
Furniture,
fittings and
office
equipment
$’000
-
-
-
$’000
$’000
17
Capital
Spares
Motor
Vehicles
-
-
$’000
Work in
Progress
16
47
$’000
Total
20
20 (119) 139 20 (6) 9
9
(155) 164 9
(11) 9
9
(34) 43 9
(8) -
-
-
-
-
-
-
-
-
-
-
-
38
38
(308)
346
38
(25)
-
-
-
-
-
11 (128) 139 11 (9) -
(164) 164 -
(9) -
(43) 43 -
(9) -
-
-
-
-
-
-
-
-
-
11
(335)
346
11
(27)
- - - ----
- - - ----
-
-
-
-
-
-
- - - ----
-
-
Telecommunications
equipment
and plant
$’000
Depreciation charge -
Additions
$’000
Leasehold
Land and
Buildings
Opening net book amount
Year ended 31 March 2011
Company
NOTE 13. PROPERTY, PLANT AND EQUIPMENT - continued
Notes to the Financial Statements
For the Year ended 31 March 2012
Notes to the Financial Statements
For the Year ended 31 March 2012
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
NOTE 14.
INTANGIBLE ASSETS
Movie productions
Gross carrying amount:
Balance as at 1 April Additions/(disposals) Balance as at 31 March
17,854 -
17,854 17,854 -
17,854 -
-
-
-
Accumulated impairment allowance:
Balance as at 1 April Impairment allowance
Balance as at 31 March
17,854 -
17,854 17,854 -
17,854 -
-
-
-
-
-
-
-
Computer software costs
Gross carrying amount:
Balance as at 1 April Additions
Balance as at 31 March
31,731 655 32,386 30,527 1,204 31,731 -
-
-
-
Accumulated impairment allowance:
Balance as at 1 April Impairment allowance
Balance as at 31 March
22,402 3,023 25,425 19,900 2,502 22,402 -
-
-
-
6,961 9,329 -
-
Indefeasible Rights of Use capacity
Gross carrying amount:
Balance as at 1 April Additions
Balance as at 31 March
17,145 1,484 18,629 -
17,145 17,145 -
-
-
-
Accumulated impairment allowance:
Balance as at 1 April Impairment allowance
Balance as at 31 March
597 3,061 3,658 -
597 597 -
-
-
-
Net book amount
14,971 16,548 -
-
Total intangible assets, net 21,932 25,877 -
-
Net book amount
Net book amount
Investments in movie productions comprise of investments in “Straight Edge”, “Smilodon”, “The
Great North Pole Elf Strike” and “Pirate Islands 2” movie projects. All movie projects have been
granted F1 Provisional Certificate by the Fiji Audio Visual Commission and thereby incentives by way
of 150% tax deductions are available. They have been valued at cost and reduced by an impairment
charge to arrive at a carrying amount which is an amount the group expects to recover from the
exploitation of the copyright in accordance with the Production Investment Agreement.
51
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 14.
INTANGIBLE ASSETS - continued
Indefeasible Rights of Use (“IRU”) capacity relates to the lease of IRU network capacity by Telecom
Fiji Limited for a period of 3 years (for IP Transit) and 10 years (for STM-1 and STM-4) via Australia
and USA links. The IRU network capacity is capitalised to intangible assets, and is amortised over
the contract periods. Where estimated useful lives or recoverable values have diminished due to
technological change or market conditions, amortisation is accelerated.
NOTE 15.
AVAILABLE-FOR-SALE FINANCIAL ASSETS
Available-for-sale financial assets consist of equity investments in subsidiary companies, all of which
are unlisted and denominated in local currencies and are stated at cost. Carrying values are as
follows:
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
Shares in subsidiary companies:
Non-current
- At cost Less: Provision for impairment
-
-
-
-
-
-175,863 158,414
177,013
(1,150) 158,414
-
During the year, the company acquired 49% shareholding in FINTEL. While the company owns 49% in
FINTEL, the company also manages the 51% shareholding of the Government of Fiji in FINTEL
in accordance with a management agreement. The results of FINTEL have been incorporated in the
consolidated financial statements from the date of acquisition.
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
NOTE 16.
HELD-TO-MATURITY INVESTMENTS
Non-current
Fiji Government Registered Stock
Add unamortised premium
48,310
26
48,630
30
48,310
26
48,630
30
Current
Fiji Government Registered Stock Short term deposits
48,336 48,660 48,336 48,660
320
1,100 1,420 3,000
1,000 4,000 320
-
320 Total
49,756 52,660 48,656 3,000
- 3,000
51,660
The above investments are accounted for as held-to-maturity as they are considered likely to be
held to maturity in line with investment objectives and fixed price nature of the investments. They
are hence stated at amortised cost. The carrying values of the Fiji Government Registered securities
are considered to be their reasonable approximation of their fair values.
52
Notes to the Financial Statements
For the Year ended 31 March 2012
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
NOTE 17. DEFERRED INCOME TAX
The following provides a breakdown of
deferred tax assets and liabilities at balance date:
(a)
(b)
Deferred tax assets
Provision for impairment of trade receivables
1,913
2,671
-
Provision for employee entitlements
1,324
1,611
4
1
Provision for stock obsolescence
503
976
-
Tax losses
2,668
8,874
-
Depreciation3233
Deferred revenue
114
119
-
Unrealised exchange loss
184
532
-
Others
48 13 -
6,75714,798
7
4
Deferred tax liabilities
Deferred expenses
16
22
Depreciation 25,27128,787
Unrealised exchange gain
137 297 -
-
-
-
25,424 29,106 -
-
Consumables and finished goods Goods in transit
12,257 352 13,355 572 -
-
-
Provision for stock obsolescence
12,609 (2,516) 13,927 (3,537) -
-
-
10,093 10,390 -
-
NOTE 18. INVENTORIES
NOTE 19. TRADE AND OTHER RECEIVABLES
Non-current
Advance to Amalgamated Telecom Nominees
Limited (a)
4,983
4,982
4,983
4,982
Advance to Vodafone Fiji Limited (c)
-
-
20,000
20,000
4,983 4,98224,983 24,982
53
Notes to the Financial Statements
For the Year ended 31 March 2012
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
NOTE 19. TRADE AND OTHER RECEIVABLES - continued
Current
Trade receivables (b)
43,119
39,452
-
Less: Unearned income
(1,415) (1,337) -
-
Less: Provision for impairment
41,704 (17,296) 38,115 (17,188) -
-
-
24,408 20,927 -
-
Accrued revenue
Dividends receivable
Advance to Vodafone Fiji Limited (c) M-PAiSA trust
Receivable from related parties
Other receivables and advances
Less: Provision for impairment
3,479
-
-
1,065
1,479
9,100
(128) 39,403 4,734
-
-
1,203
593
8,347
(261) 35,543 1,858
12,700
599
-
5,001
262
(600) 1,535
16,200
818
3,601
252
-
19,820 22,406
(a) The advance to Amalgamated Telecom Nominees Limited is unsecured and subject to interest
at the rate of 1.2% per annum.
(b)
The carrying value of the trade and other receivables and receivables from related parties are
considered to be reasonable approximation of their fair values.
(c)
The company advanced $20 million to Vodafone Fiji Limited, a subsidiary company. This advance
is secured by an equitable mortgage debenture over all the assets of the subsidiary company,
including called and uncalled capital. The terms of the loan is 3 years with interest only
payments at the rate of 7% and the principal repayable in full on maturity.
(d)
Trade receivables that are less than 3 and 4 months past due are not considered impaired.
As at 31 March 2012, trade receivables of $24,408,000 (2011: $20,927,000) were not considered
impaired.
As of 31 March 2012, trade receivables for the group of $17,424,000 (2011: $17,449,000)
were impaired and provided for. The company impaired and provided for trade receivables of
$600,000 (2011: nil). The individually impaired receivables mainly relates to customers, who
have defaulted in payments. It was assessed that a portion of the receivables is expected to be
recovered.
54
Notes to the Financial Statements
For the Year ended 31 March 2012
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
NOTE 19. TRADE AND OTHER RECEIVABLES - continued
Movements in the provision for impairment of
trade receivables are as follows:
As at 1 April
Provision for impairment of receivables
Amounts written off during the year
Reversals during the year
17,449
828
(137)
(716) 16,512
2,021
-
(1,084) -
600
-
-
-
As at 31 March
17,424
17,449
600
-
The creation and release of provision for impaired receivables have been included in “Operating
expenses” and “Other income” in the statement of comprehensive income (Note 9 and Note 7
respectively). Amounts charged to the allowance account are generally written off, when there is no
expectation of recovering additional cash.
The other classes within trade and other receivables do not contain impaired assets.
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable
mentioned above. The group generally obtains security deposits for all new LAN line and Internet
connections. Apart from this, it does not hold any collateral as security. The total carrying amount
of security deposits in relation to the above trade receivables carried by the group is $4,838,000 (2011:
$4,879,000).
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
NOTE 20.
NOTES TO THE STATEMENT OF CASH FLOWS
Cash And Cash Equivalents
Cash and cash equivalents included in the statement
of cash flows comprise the following amounts:
Cash on hand and at bank
30,497
12,097
8,231
979
Bank overdraft-
(6,590)-Short term deposits
509 1,000 -
31,006 6,507 8,231
Number of
issued shares
(Nos.)
Value of ordinary
shares
$’000
979
Total
$’000
NOTE 21. SHARE CAPITAL
As at 31 March 2012 and 2011
422,104,868 105,526 105,526
The total authorised number of ordinary shares of the company is 40,000,000,000 shares
(2011:40,000,000,000 shares) with a par value of $0.25 per share (2011: $0.25 per share). All issued
shares are fully paid.
55
Notes to the Financial Statements
For the Year ended 31 March 2012
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
NOTE 22. BORROWINGS
Non-current
Term loans – ANZ
(i)
Term loans – FNPF
(ii)
Term loan – BSP
(iii)
Term loan – Westpac
(iv)
21,107
65,878
4,599
9,219 100,803 -
86,672
-
-
86,672 -
20,000
4,599
9,219 33,818 20,000
20,000
Current
Term loans – ANZ
(i)
5,419
-
-
Term loans – FNPF
(ii)
8,678
22,328
-
9,000
Term loan – BSP
(iii)
401
-
401
Term loan – Westpac
(iv)
803
-
803
Term loan – TFL
(v)
-
-
-
3,500
Bank overdraft
(vi)
-
6,590 -
15,301 28,918 1,204 12,500
Total borrowings
116,104 115,590 35,022 32,500
Term loans consist of the following:
(i)
Telecom Fiji Limited (“TFL”) restructured its borrowings with the Fiji National Provident Fund
(“FNPF”). TFL obtained a loan of $30 million from Australia and New Zealand Banking Group
Limited (“ANZ”) from which $10 million was utilised for capital expenditure of the company
and $20 million was utilised to repay loan from FNPF. Accordingly, prior year loans from FNPF
of $80 million was reduced to $60 million and loans at various interest rates that made up this
$60 million were combined as one loan with new terms and conditions.
The bank loan from ANZ is subject to variable interest at the rate of 7.25%. The loan is payable
at monthly repayments of $597,000. The borrowing is secured by a 1st registered mortgage
over all the assets and undertaking of Telecom Fiji Limited with priority up to $10 million.
Subsequent to year end, TFL further restructured its borrowings by refinancing this ANZ loan
through FNPF.
(ii)
Fiji National Provident Fund – Of the total $74.5 million, $54.5 million borrowings are secured
by 2nd registered mortgage debenture over all the assets and undertakings of Telecom
Fiji Limited. The interest rate on this loan is fixed at 7.33%. The loan is payable at monthly
repayments of $1,032,475.
The holding company borrowed $20 million on behalf of Vodafone Fiji Limited, a subsidiary
company. The interest rate on this loan is 6.75% and the borrowing is secured by promissory
note given by the subsidiary company.
(iii)
The holding company borrowed $5 million from Bank of South Pacific at the rate of 4.7% per
annum with monthly repayments of $52,303. This loan is unsecured.
(iv) The holding company borrowed $10 million from Westpac Banking Corporation at the rate of
4.7% per annum with monthly repayments of $104,700. This loan is unsecured.
56
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 22. BORROWINGS - continued
(v) The holding company borrowed $3.5 million from its subsidiary TFL at the rate of 6.4% last
year. This loan was repaid during the year. A further $10 million was borrowed and repaid within
the current year.
(vi) The bank overdraft of subsidiary, Vodafone Fiji Limited, is unsecured and repayable on demand
and subject to an effective interest rate of 5.96% per annum. The facility was not utilised by
the company at balance date.
The fair value of current borrowings and non-current borrowings equals their carrying amount as the
impact of discounting is not significant.
Dividends
$’000
NOTE 23. PROVISIONS
Income
Employee
Directory
tax entitlements Production
costs
$’000
$’000
$’000
Total
$’000
Consolidated
As at 1 April 2011
Additional provisions recognised
Non-cash adjustments
Paid during the year
Unused amounts reversed
Under provision in prior year
14,1325,998
5,818
27,976
8,682
5,477
-
(321)
-
(20,485) (8,266)
(4,632)
-
(61)
-
-
25
-
Carrying amount as at 31 March 2012 47 25,995
47
42,182
-
(321)
- (33,383)
-
(61)
-
25
21,623 6,057 6,663 94 34,437
4,222
12,664
(8,443)
-
-
323
1,571
(502)
(8)
3
6
15
(3)
-
-
-
-
-
-
-
4,551
14,250
(8,948)
(8)
3
8,443 1,387 18 -
9,848
Company
As at 1 April 2011
Additional provisions recognised
Paid during the year
Non-cash adjustments
Over provision in prior year
Carrying amount as at 31 March 2012 Analysis of total provisions:
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
Non-current
Current
768 33,669 249 25,746 -
9,848 4,551
34,43725,995 9,848 4,551
57
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 23. PROVISIONS - continued (a) Income tax - relates to income tax payable for current financial year. This is expected to be
fully settled within seven months after the balance date.
(b) Employee entitlements consists of the following:
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
Annual leave
1,010
1,658
Bonus4,855 3,911
Long service leave
128
79
Retirement benefits
670 170 18
-
-
-
6
-
6,6635,818
18
6
Annual Leave
Generally annual leave is taken within one year of entitlement and accordingly it is expected that
a significant portion of the total annual leave balance will be utilised within the next financial
year. Note 2.9 outlines the accounting policy and underlying basis for these accruals.
Long service leave and retirement benefits
Long service leave and retirement benefits are accrued for employees entitled to the same under
their terms of employment. Note 2.9 outlines the accounting policy and underlying basis for these
accruals.
Bonus
Bonus provisions are expected to be significantly settled within 12 months after the end of the
financial year. Note 2.9 outlines the accounting policy and underlying basis for these accruals.
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
NOTE 24.
TRADE AND OTHER PAYABLES
Non-current
Trade payables and accruals
8,333
12,462
-
Subscriber deposits
4,838 4,879 -
-
13,17117,341
-
Current
Trade payables and accruals
45,151
58,810
1,270
432
E-value in circulation
1,065
1,203
-
Owing to related parties
1,247
3,123
573
834
Deferred revenue
10,732 11,714 -
58,19574,850 1,843 1,266
Total71,36692,191 1,843 1,266
The fair value of current liabilities and non-current liabilities equals their carrying amount, as
the impact of discounting is not significant.
58
Notes to the Financial Statements
For the Year ended 31 March 2012
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
NOTE 25. DEFERRED INCOME
Non-current
Government grant
Less: Accumulated amortization
6,459 (6,109) 350 6,459 (6,064) -
-
-
395 -
-
8,443
4,222 4,222
8,443 8,443
4,222 4,222
8,443
12,665 12,665 12,665 12,665
NOTE 26. DIVIDENDS
Ordinary shares
Final dividend for the year Interim dividend for the year
NOTE 27. CONTINGENCIES
Following is a summary of estimated contingent liabilities:
NOTE 28.
Performance guarantees
1,634
1,720
-
Litigations 369730104 Movie investment tax incentive allowance
2,124 2,490 -
4,127 4,940 104 Legal claims
Various claims have been brought against subsidiary companies. The directors have obtained legal
advice on these claims and are confident that no significant liability other than those that have been
brought to account or have been disclosed will eventuate.
COMMITMENTS
(a)
Capital commitments
Capital expenditure commitments as at balance date are as follows:
Intangible assets
Property, plant and equipment
55
45,718
46
26,944
30
55
49
Capital expenditure commitments primarily relate to various capital investment schemes,
programs and initiatives approved by the Board.
(b) Operating leases
The group leases various premises under non-cancellable operating leases. These leases have
varying terms, escalation clauses and renewal rights. On renewal, the terms of the leases are
renegotiated.
59
Notes to the Financial Statements
For the Year ended 31 March 2012
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
NOTE 28.
COMMITMENTS - continued
Commitments for minimum lease payments in relation to non-cancellable operating leases
are payable as follows:
(b) Operating leases -continued
Within one year
3,357
2,652
38
46
Later than one year but not later
than five years
5,424
5,083
-
46
Later than five years
25,158 21,086 -
33,939 28,821 38 92
(c) Maintenance and support services
The group is committed to pay a sum of $3,270,000 in future to Huawei Technologies (Australia)
Pty Limited as part of maintenance and support service agreement for a remaining period of
42 months. The agreement was signed on 10 November 2011.
(d) Operating licence commitment
The group has an operating licence issued by the Government of the Republic of Fiji on January
2008 to establish, operate and maintain a telecommunication system. The licence has a term
of 15 years and an annual licence fee of $1 million or greater (exclusive of Value Added Tax) is
payable.
NOTE 29. RELATED-PARTY TRANSACTIONS
(a)
Parent entity
The company is a subsidiary of Fiji National Provident Fund.
(b) Directors
The names of persons who were directors of the company at any time during the financial year
are as follows:
Mr Ajith Kodagoda - Chairman
Mr David Kolitagane – Deputy Chairman
Mr Arun Narsey, Mr Taito Waqa, Mr Tom Ricketts, Mr Umarji Musa
Directors’ remuneration is disclosed under Note 9.
The following transactions were carried out with related parties:
(c) Sales of services and interest
(i) By ATH
Interest income from subsidiary company Management fee income from
Government of Fiji (shareholder)
60 60 1,481
1,699
6,279 816 6,279 816
15,783 -
-
(ii) ATH group - provision of telecommunication related services
Roaming call revenue – related entities
60
15,052 Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 29. RELATED-PARTY TRANSACTIONS - continued
(c)
Sales of services and interest - continued
During the year, the group provided telecommunication related services to the Fiji National
Provident Fund, Government of Fiji, other Government owned entities, directors and director
related entities and to executives. These services were provided at normal commercial rates,
terms and conditions.
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
(d) Superannuation
Fiji National Provident Fund
(e)
3,569
3,248
26
28
Purchases of services
Following is a summary of different purchase transactions the group has had with the
subsidiaries and related entities during the year:
Advertising expense
33
46
6
6
Billing bureau charges – related entities
1,677
1,525
-
Communications and internet
70
38
4
20
Call Centre charges
903
151
-
Equipment and ancillaries
1,735
1,444
-
Interest expenses and fees
6,966
7,190
1,867
1,749
Isaac support – other related entities
88
93
-
Network support – other related entities
891
921
-
Operating leases – parent entity
644
657
47
46
Roaming call charges – related entities
1,011
963
-
Others186318 26 28
(f)
Other transactions
- Loan from subsidiary
-
-
10,000
- Dividends from subsidiaries
-
-
19,530
3,500
16,200
All transactions with related parties are conducted on commercial terms and conditions.
(g)
Key management compensation
Salaries and other short-term employee
benefits
(h)
5,343 Year-end balances arising from sales/purchases of services
Receivables from related parties (Note 19):
- Dividend receivable from subsidiaries -
- subsidiary companies
1,479 Payables to related parties (Note 24):
- related entities
61
1,247 4,856 148 158
-
593 12,700 5,000 16,200
4,419
3,123 573 834
Notes to the Financial Statements
For the Year ended 31 March 2012
Consolidated
Company
201220112012 2011
$’000$’000$’000 $’000
NOTE 29. RELATED-PARTY TRANSACTIONS - continued
(i) Loans and advances to/(from) related parties
Advance to Vodafone Fiji Limited (Note 19)
-
Advance from Telecom Fiji (Note 22)
-
Advance to Amalgamated Telecom Nominees
Limited (Note 19)
4,983 -
-
20,000
-
20,000
(3,500)
4,982 4,983 4,982
109,000 20,000 29,000
Refer Note 19 for terms underlying the advance to subsidiary.
(j)
Borrowings from ultimate parent entity
Term loans - FNPF (Note 22)
74,556 Refer Note 22 for terms underlying borrowings from ultimate parent entity.
NOTE 30. SUBSIDIARY ENTITIES
The consolidated financial statements incorporate the assets, liabilities and results of the following
subsidiaries in accordance with the accounting policy described in Note 2.2:
ATH Call Centre Limited
ATH Technology Park Limited
Fiji Directories Limited
FINTEL
Pacific Emerging Technologies Limited
Vodafone Fiji Limited
Telecom Fiji Limited
Internet Services Fiji Limited
Transtel Limited
Xceed Pasifika Limited
FINTEL Internet Services Limited
Immediate
parent
Class
of
Shares
ATH
ATH
ATH
ATH
ATH
ATH
ATH
TFL
TFL
TFL
FINTEL
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Equity holding (%)
2012
2011
100%
100%
90%
49%
51%
51%
100%
100%
100%
100%
100%
100%
100%
90%
51%
51%
100%
100%
100%
100%
-
All companies are incorporated in Fiji and have the same balance date as the parent entity.
The financial statements of Fiji Directories Limited and the Telecom Group which include Telecom
Fiji Limited and its subsidiary companies Internet Services Fiji Limited, Transtel Limited and Xceed
Pasifika Limited are audited by G.Lal + Co.
The financial statements of Fiji International Telecommunications Limited and its subsidiary
company FINTEL Internet Services Limited are audited by KPMG.
The principal activity of Amalgamated Telecom Nominees Limited (ATN) is to hold the shares of
Amalgamated Telecom Holdings Limited for the qualifying employees of the ATH Group under
Employee Share Option Plan. Accordingly, the financial statements of ATN are not consolidated in
the consolidated financial statements. In accordance with the Employee Share Option Plan Trust
Deed dated 8 October 2002 and amendments thereto, any surplus balance in the Cash Fund upon
liquidation of ATN and after satisfaction of all obligations will be paid to the holding company.
62
Notes to the Financial Statements
For the Year ended 31 March 2012
Entity
Place of
Incorporation
Investment
Book Value
$
%
Owned
NOTE 31. ASSOCIATED ENTITY
Amalgamated Telecom Holdings
(PNG) Limited (non-operating entity) PNG
Fixed line
Telecom
$’000
50% Mobile
Telecom
$’000
Other
$’000
1
Elimination Consolidated
$’000
$’000
NOTE 32. SEGMENT REPORTING
31 March 2012
Revenue
External customer
Inter-segment - operating
Other revenue
Total revenue
72,959
163,740
12,712
-
5,862
9,733
21,017
(36,612)
4,691
3,776
122
8,745
83,512 177,24933,851 (27,867)
249,411
17,334
266,745
Results
Depreciation and amortisation
33,237
22,918
1,197
-
57,352
Finance cost/(income)
5,767
2,126 (2,490)
-
5,403
Direct and other expenditure
52,934
114,131
8,314
(17,237)
158,142
Segment profit before tax
(8,426) 38,07426,830 (10,630)
45,848
Operating assets
Operating liabilities
Other disclosures
Capital expenditure
31 March 2011 Revenue
External customer
Inter-segment – operating
Other revenue
Total revenue
229,774 189,008332,122 (232,065)
137,957 99,50661,636 (51,418)
6,865
20,472
362
-
78,215
153,238
15,615
-
13,303
11,704 16,922
(41,929)
5,575
1,600
140
-
97,093 166,54232,677 (41,929)
518,839
247,681
27,699
247,068
7,315
254,383
Results
Depreciation and amortisation
34,914
21,161
1,173
-
57,248
Redundancy costs
611
-
-
-
611
Finance cost/(income)
4,740
1,925 (2,533)
-
4,132
Direct and other expenditure
56,976
105,459 15,040
(17,726)
159,749
Segment profit before tax
(148) 37,99718,997 (24,203)
32,643
Operating assets
Operating liabilities
Other disclosures
Capital expenditure
265,360 186,900272,555 (220,761)
161,492 108,38150,078 (56,674)
38,957
63
31,999
2,420
-
504,054
263,277
73,376
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 33.
PRINCIPAL ACTIVITIES
The principal activities of the company during the year were that of investments and provision of
management services.
The principal activities of the subsidiary entities during the year were providing telecommunication
services and telephone equipment, compilation and publishing of the Fiji telephone directory, provision
of internet connection and internet related services, operation of a mobile telecommunications
network, provision of pre-paid telephony services, provision of mobile phone money transfer
service, managing PAYECOMM products, sale of ICT equipment and solutions, and development
of a technology park including call centres, data warehouse and processing centres.
On 15 March 2012, the company acquired 49% shareholding in Fiji International Telecommunications
Limited (“FINTEL”), an entity that provides international telecommunication facilities into and out
of Fiji. While the company owns 49% in FINTEL, the company also manages the 51% shareholding
of the Government of Fiji in FINTEL in accordance with a management agreement. The results of
FINTEL have been incorporated in the consolidated financial statements from the date of acquisition.
Effective from 1 April 2011, Telecom Fiji Limited acquired from Xceed Pasifika Limited, the existing
business of sale and service of office and computer equipment together with business assets and
liabilities.
There were no significant changes in the nature of these activities during the financial year.
NOTE 34. SIGNIFICANT EVENTS DURING THE YEAR
During the year:
(i)
On 15 March 2012, the company acquired 49% shareholding in FINTEL for a consideration of
$18.6 million;
(ii)
TFL restructured its borrowings with the FNPF. TFL obtained a loan of $30 million from ANZ
Bank from which $10 million was utilised for capital expenditure of the company and $20
million was utilised to repay the loan from FNPF. Accordingly, prior year loans from FNPF of
$80 million was reduced to $60 million and loans at various interest rates that made up this
$60 million was combined as one loan with new terms and conditions;
(iii)
Restructuring of the Telecom Fiji group was undertaken and commercial operations from
Xceed Pasifika Limited (subsidiary) was transferred to TFL effective 1 April 2011. As a result, TFL
acquired from Xceed Pasifika Limited the existing business of retailing computer equipments
together with business assets and liabilities;
(iv) Telecom Fiji Limited started operating its USA link via Southern Cross Cables;
(v) The Fiji Commerce Commission made a final determination on 7 November 2011 in relation
to price controls of interconnection services of Telecom Fiji Limited; and
(vi) On 27 May 2009, the National High Court of Papua New Guinea issued an order of judgment in
favour of the associate entity, Amalgamated Telecom Holdings (PNG) Limited, Steamships
Trading Limited and the company. The judgment was against the Independent State of
Papua New Guinea
64
Notes to the Financial Statements
For the Year ended 31 March 2012
NOTE 34. SIGNIFICANT EVENTS DURING THE YEAR - continued
The litigation related to the share acquisition agreement entered between the Independent Public
Business Corporation of PNG and Amalgamated Telecom Holdings (PNG) Limited. Under the terms
of the share acquisition agreement, Amalgamated Telecom Holdings (PNG) Limited was to acquire
50.1% of the shares in Telikom PNG Limited. However, due to the non performance of the contract
by the Independent Public Business Corporation of PNG, the sale of Telikom PNG Limited
shares to Amalgamated Telecom Holdings (PNG) Limited did not proceed.
At 31 March 2012, no settlement has been received by the company. However, the company received
an offer for an out of court settlement for consideration.
NOTE 35.
EVENTS SUBSEQUENT TO BALANCE DATE
Subsequent to balance date,
(i)
TFL has restructured its total borrowings. As part of the restructure, a further loan from Fiji
National Provident Fund was obtained to settle the loan that was acquired from ANZ Bank
during the financial year; and
(ii)
The directors and management are reviewing ATH Call Centre’s profitability with a view of
finding the best option moving forward. A decision was made to roll back Call Centre’s
operations to TFL (the company’s only customer) including staff and assets. The plan is to
transfer the assets at their carrying amounts. A definite of transfer has yet to be confirmed.
Apart from the matters noted above, no other matters or circumstances have arisen since the end
of the financial year which significantly affected or may significantly affect the operations of the
group or any company in the group, the results of those operations, or the state of affairs of the
group or any company in the group in future financial years.
65
South Pacific Stock Exchange - Listing Requirements
1.
Statement of interest (direct and indirect) of each director in the share capital of the company as at 31
March 2012:
Directors
2.
Direct Interest (Number of Shares)
Indirect Interest (Number of Shares)
Shareholding of those persons holding the 20 largest blocks of shares:
Shareholders
No. Of Shares
Fiji National Provident Fund
245,960,597
Republic of Fiji Islands
145,932,209
Unit Trust of Fiji
8,618,087
Fijians Trust Fund
5,000,000
Amalgamated Telecom Nominees Limited
4,700,193
Fiji National Provident Fund Nominees Limited
2,070,941
Yasana Holdings Limited
2,077,237
Fijian Holdings Limited
1,000,000
Guardian Trustees Limited – Fijian Holdings Trust Fund
3.
346,326
Banaban Trust Fund board
200,000
Colonial Fiji Life Limited
180,324
Dominion Insurance Limited
179,814
FHL Securities Limited
131,205
JP Bayly Trust
111,500
RFMF Army Medical Scheme
100,000
Nakuruvakarua Company Limited
100,000
Yatu Lau Company Limited
100,000
Naitasiri Provincial Council
94,350
Lomaiviti Provincial Council
94,340
Distribution of share holding under Section 6.31(v):
Holding
Less than 500 shares
4.
613,727
Kiran Lata Kumar
No. of Holders
Total % Holding
13
0.00
500 to 5,000 shares
698
0.77
5,001 to 10,000 shares
102
0.20
10,001 to 20,000 shares
41
0.16
20,001 to 30,000 shares
11
0.07
30,001 to 40,000 shares
2
0.01
40,001 to 50,000 shares
15
0.18
50,001 to 100,000 shares
12
0.24
100,001 to 1,000,000 shares
8
0.65
Over 1,000,000 shares
7
97.72
Total
909
100%
Mr Ajith Kodagoda has waived emolument due to him on his appointment as Chairman of the Board of
Directors on 18 August 2010.
66
173,473
-
FINTEL
17
Transtel
Limited
-
Xceed Pasifika Ltd
4,070
67
-
-
-
284
14
170
-
-
-
2,419
194
4,167
137,729
84,839
Operating liabilities
Shareholders’ equity
89,502
99,506
189,008
30,983
38,807
2,855
41,662
-
4,046
225
4,271
(128)
-298
2,931
4
2,935
-
1,973
2,520
4,493
1,076
- 3,091
Share Register
Amalgamated Telecom Holdings Limited, Harbour Front Building, Rodwell Road, Suva
222,568
Operating assets
6.
(11,923)
95,265146,266
(excluding dividends)
after income tax
Net (loss) / profit
(benefit)
-
903
ATH Call
Centre Ltd
-
21
-
-
-
-
2,903
Pacific
Emerging
Technologies Ltd
(3,615)
(77)
1,071
1,433
(604)
3,848
3,244
(387)
24
1,635
1,013
2,648
(993)
3,896
-
(8)
3,198
682
2,903
-
77 1,290
-
2,504
-
273
903
1,017
- 56
-
-
-
3,615
3,779
7,091-- -508
Finance cost/(income)
5,766
2,126-- -(30)
114,131
52,275
Other expenses
83,342177,249
33,44522,918
Income tax expense/
-
Fiji DirectoInternet ATH Techries Ltd Services Fiji nology Park
Ltd
Ltd
4,537
3,776
-
153-
97 --- -
78,805
Vodafone
Fiji Ltd
amortization
Depreciation and
dividends)
revenue (excluding
Other operating
Sales revenue
Telecom
Fiji Ltd
Disclosure on the trading results of each subsidiary under Section 6.31(viii):
(Amount in $’000)
5.
South Pacific Stock Exchange - Listing Requirements
EBIT
36,775
68
$0.75
$0.89
$0.65
Market price per
share
Maximum market
price per share
Minimum market
price per share
Dividend Yield
4.0%
18.8 times
$0.59
Price Earnings ratio
$0.04
$0.03
Dividend per share
Net Tangible Asset
per share
3.4%
89 times
$0.88
$1.01
$0.89
$0.51
73,376
27,699
Capital expenditure
76,082
78,949
8.9 times
30.0%
102,493
0.46 times
Net cash flow from
operating activities
9.5 times
24.0%
Interest cover
85,098
Net Debt
0.77 times
3.50%
504,054
518,839
6.5%
2.1%
1.0 cents
4,142
7.2%
4.0 cents
18,362
94,023
51,251
108,603
Gearing
Current Ratio
Return on assets
Total Assets
Return on equity
Earnings per share
Net Earnings
EBITDA
247,068
249,411
For the 12
months
ended 31
March 2011
($’000)
5%
27.8 times
*
*
$1.00
$0.58
$0.07
63,920
72,340
15.2 times
26.3%
87,883
0.50 times
5.1%
508,137
7.2%
3.6 cents
15,382
80,500
32,136
254,783
For the 12
months
ended 31
March 2010
($’000)
6.9%
14.7 times
*
*
$1.16
$0.57
$0.09
69,489
62,201
*
22.3%
69,204
0.68 times
18.3%
502,410
15.2%
7.9 cents
33,144
116,830
72,768
284,214
For the 12
months
ended 31
March 2009
($’000)
9.9%
8.3 times
*
*
$0.91
$0.56
$0.07
53,184
94,196
*
4.9%
12,120
0.58 times
26.3%
415,554
21.4%
10.9 cents
46,149
130,735
88,083
269,597
For the 12
months
ended 31
March 2008
($’000)
7.1%
8.6 times
*
*
$0.84
$0.53
$0.06
82,311
119,786
*
9.6%
23,579
0.67 times
22.4%
424,619
19.9%
9.8 cents
41,276
125,523
71,570
257,361
For the 12
months
ended 31
March 2007
($’000)
6.0%
12.0 times
*
*
$1.00
$0.49
$0.06
34,292
99,483
*
12.1%
25,003
1.10 times
25.2%
424,173
17.9%
8.3 cents
34,932
122,825
70,416
237,786
For the 12
months
ended 31
March 2006
($’000)
6.0%
17.2 times
*
*
$1.00
$0.47
$0.06
32,721
89,750
164.1 times
22.4%
44,144
1.15 times
18.1%
405,623
13.2%
5.8 cents
24,576
88,136
52,527
222,402
For the 12
months
ended 31
March 2005
($’000)
5.8%
10.1 times
*
*
$1.03
$0.47
$0.05
30,804
75,089
48.9 times
25.0%
49,799
0.81 times
22.7%
384,245
22.9%
10.2 cents
42,852
89,540
65,430
203,070
For the 12
months
ended 31
March 2004
($’000)
4.4%
11.2 times
*
*
$1.11
$0.42
$0.06
44,619
76,360
90.6 times
21.8%
38,983
1.12 times
24.7%
325,907
24.9%
9.9 cents
42,070
91,156
68,234
195,538
For the 12
months
ended 31
March 2003
($’000)
7.
Operating Revenue
For the 12
months
ended 31
March 2012
($’000)
South Pacific Stock Exchange - Listing Requirements
Group Consolidated Ten Years Financial Performance
AMALGAMATED TELECOM HOLDINGS LIMITED
2nd Floor, Harbour Front
Rodwell Road
P.O.Box 11643
Suva
Phone: (679) 330 8700
Fax: (679) 330 8044
Website: www.ath.com.fj
SUBSIDIARY COMPANIES
Telecom Fiji Limited
Ganilau House
Edward Street
Private Mail Bag
Suva
Phone (679) 3304019
Fax (679) 3001765
Website: www.TelecomFiji.com.fj
Transtel Limited
Fifth Floor, Telecom New Wing Building
Edward Street
Private Mail Bag
Suva
Phone (679) 3210528, 3210556
Fax (679) 3310153
Website: www.transtel.com.fj
Vodafone Fiji Limited
168 Princes Road, Tamavua
Private Mail Bag
Suva
Phone (679) 3312000
Fax (679) 3312007
Website: www.vodafone.com.fj
Xceed Pasifika Limited
Fifth Floor Telecom
New Wing Building
Edward Street
Private Mail Bag
Suva Phone (679) 3216000
Fax (679) 3216098
Website: www.xceed.com.fj
Fiji Directories Limited
Third and Fourth Floors,
Telecom New Wing Building
Edward Street
P O Box 16059
Suva
Phone (679) 3311000
Fax (679) 3300004
Website: www.yellowpages.com.fj
ATH Call Centre Limited
(ATH InTouch)
Garden City, Raiwai
P O Box 5040
Raiwaqa
Phone (679) 3310333
Fax (679) 112244
Internet Services Fiji Limited (Connect)
Level 4 Ganilau House
Private Mail Bag, Suva
Phone (679) 3300100
Fax (679) 3306269
Website: www.connect.com.fj
Pacific Emerging Technologies Limited
Level 4 General Post Office Building
Edward Street
Suva
P O Box U43, USP, Suva
Phone (679) 3310025
Fax (679) 3310021
Fiji International Telecommunications Limited
Mercury House
158 Victoria Parade
P O Box 59
Suva
Phone (679) 3312933
Fax (679) 3300750