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Auditors' Report
and Financial Statements
Independent
Auditor's Report to the Cyprus
Telecommunications
Report on
the Financial Statements
We have audited the financial
statements of CYPRUS TELECOMMUNICATIONS
AUTHORITY ("CYTA"),
which comprise the balance sheet as at 31
December 2007 and the income statement,
statement of changes in equity and cash flow
statement for the year then ended, and a summary
of significant accounting policies and other
explanatory notes. This report is made solely to
CYTA’s Board of Directors, as a body, to the
Minister of Finance, to the House of
Representatives and to the Auditor General in
accordance with the Telecommunications Services
Law, Cap. 302 and with the Public Corporate
Bodies (Audited Accounts) Law of 1983 until
2007.
Board of
Directors’ Responsibility for the Financial
Statements
CYTA’s Board of Directors is
responsible for the preparation and fair
presentation of these financial statements in
accordance with International Financial
Reporting Standards as adopted by the European
Union (EU) and the requirements of the
Telecommunications Services Law, Cap. 302. 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 accounting estimates that
are reasonable in the circumstances.
Auditors’
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 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 control relevant to
the entity'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 entity's internal control. An audit also
includes evaluating the appropriateness of
accounting policies used and the reasonableness
of accounting estimates made by the Board of
Directors as well as evaluating the overall
presentation of the financial statements.
We believe that the audit
evidence we have obtained is sufficient and
appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial
statements give a true and fair view of the
financial position of CYPRUS TELECOMMUNICATIONS
AUTHORITY as of 31 December 2007 and of its
financial performance and its cash flows for the
year then ended in accordance with International
Financial Reporting Standards as adopted by the
EU and the requirements of the
Telecommunications Services Law, Cap. 302 and
the Public Corporate Bodies (Audited Accounts)
Law of 1983 until 2007.
Other
Matter
This report, including the opinion,
has been prepared for and only for the CYTA’s
Board of Directors, as a body, the Minister of
Finance, the House of Preventatives and the
Auditor General in accordance with the
Telecommunications Services Law, Cap. 302 and
with the Public Corporate Bodies (Audited
Accounts) Law of 1983 until 2007, and for no
other purpose. We do not, in giving this
opinion, accept or assume responsibility for any
other purpose or to any other person to whose
knowledge this report may come to.
KPMG
Charted Accountants
Lefkosia, 22 April
2008
Report of the Auditor General of the Republic to
the Cyprus Telecommunications Authority
(CYTA)
To Cyprus Telecommunications Authority (CYTA)
I have examined the foregoing report on the
financial statements of the Cyprus
Telecommunications Authority for the year ended 31 December 2007 submitted by
the appointed auditor in accordance with section
3(1) of the Public Corporate Bodies (Audited
Accounts) Law of 1983 until 2007 and I am
satisfied that this is appropriate.
×.
Giorgatzi
Auditor General of the Republic
Lefkosia, 30 May
2008
Income Statement
For the year ended 31 December
2007
| |
Note |
2007
£'000 |
|
2006
£'000 |
Operating
Revenue
Operating
Expenses |
4
5 |
265.461
(210.009)
|
|
249.181
(209.488)
|
|
Gross Profit |
|
55.452 |
|
39.693 |
| |
|
|
|
|
|
Other income
from operations |
6 |
1.298
|
|
1.130
|
|
Operating profit before financing
income/(expenses) |
8 |
56.750
|
|
40.823
|
|
imposed
penantly |
24 |
- |
|
(392) |
| |
|
|
|
|
|
Finance income |
|
8.688 |
|
9.739 |
|
Finance
expenses |
|
(207)
|
|
(415)
|
|
Net finance income |
9 |
8.481
|
|
9.324
|
|
Profit before tax |
|
65.231 |
|
49.755 |
|
Tax |
10 |
(17.680)
|
|
(15.529)
|
|
Profit for the year |
|
47.551
|
|
34.226
|
The notes are an integral part of
these financial statements
Balance Sheet
As at
31
December 2007
| |
Note |
2007
£'000 |
|
2006
£'000 |
Assets
Property, plant and
equipment
Intangible assets
Investments in subsidiaries
Available for sale financial assets
Held to maturity investments
Trade and other receivables |
11
12
13
15
16
17 |
231.883
18.491
32.219
1.093
40.570
1.059
|
|
228.496
22.229
32.219
936
47.312
790
|
|
Total non-current assets |
|
325.315
|
|
331.982
|
Inventories
Trade and other receivables
Held to maturity investments
Investments in associated undertakings
Refundable tax
Cash at bank and in hand |
17
16
14
22
|
2.966
58.881
19.659
866
14.241
158.598
|
|
3.605
62.808
26.059
-
10.148
135.090
|
|
Total current assets |
|
255.211
|
|
237.710
|
|
Total Assets |
|
580.526
|
|
569.692
|
|
Equity |
|
|
|
|
Other reserves
Retained
earnings |
18 |
1.005
501.650
|
|
848
454.099
|
|
Total equity attributable to shareholders of
the Company |
|
502.655
|
|
450.099
|
|
Liabilities |
|
|
|
|
Long-term loans
Deferred tax liabilities |
19
20 |
1.214
11.032
|
|
1.138
11.032
|
|
Total non-current liabilities |
|
12.246
|
|
12.430
|
Short-term
loans
Trade and other payables |
19
21 |
204
65.421
|
|
204
102.111
|
|
Total current liabilities |
|
65.525
|
|
102.315
|
|
Total liabilities |
|
77.871
|
|
114.745
|
|
Total equity and liabilities |
|
580.526
|
|
569.692
|
The notes are an integral part of
these financial statements
The financial
statements were approved by the Board of the
Directors on
22
April 2008.
S. Kremmos
Chairman |
Ph. Savvides
Deputy Chief
Executive Officer |
G. koufaris
Senior Finance
Manager |
Statement of Changes in Equity
For the year ended
31
December
2007
| |
|
Other
reserves
£'000 |
|
Retained
earnings
£'000 |
|
Balance at 1 January
2006 |
|
439
|
|
474.873
|
| |
|
|
|
|
FV reserve
-
available-for-sale financial
assets
Fair value gains |
|
409
|
|
-
|
Profit for the year
Contribution to Cyprus Government |
|
-
-
|
|
34.226
(55.000)
|
|
|
|
409
|
|
(20.774)
|
|
Balance at 31 December
2006 |
|
848
|
|
454.099
|
|
|
|
|
|
|
|
Balance at 1 January
2007 |
|
848 |
|
454.099 |
|
|
|
|
|
|
FV reserve
-
available-for-sale financial
assets
Fair value gains |
|
157
|
|
-
|
|
Profit for the year |
|
-
|
|
47.551
|
|
Balance at 31 December
2006 |
|
1.005
|
|
501.650
|
The notes are an integral part of
these financial statements
Cash Glow Statement
For the year ended
31
December
2007
| |
Note |
2007
£'000 |
|
2006
£'000 |
Cash
flows from operating activities
Profit for the year
Adjustments for:
Depreciation of property, plant and
equipment
Amortisation of intangible fixed assets
(Profit)/loss from the sale of property,
plant and equipment
Fair value (gains)/losses on available for
sale financial assets
Income from investments
Loss from subsidiary companies
Interest income
Interest expense
Income tax expense |
11
12
6
9
9
10 |
47.551
37.270
8.592
(174)
(499)
(26)
-
(8.130)
207
17.680
|
|
34.226
40.827
11.768
2.964
169
(390)
(160)
(9.510)
246
15.529
|
Cash
flows from operations before working capital
changes
Decrease/(increase) in inventories
Decrease in trade and other receivables
(Decrease)/increase in trade and other
payables |
|
102.471
639
3.658
(36.690)
|
|
95.669
(348)
16.125
140
|
Cash flows from operations
Tax paid |
|
70.078
(21.774)
|
|
111.586
(8.725)
|
|
Net cash from operating activities |
|
48.304
|
|
102.861
|
Cash
flows from investing activities
Payment for purchase of intangible assets
Payment for purchase of property, plant and
equipment
Payment for purchase of investments in
associated undertakings
Payment for purchase of investments held to
maturity
Proceeds from disposal of property, plant
and equipment
Proceeds from sale of investments held to
maturity
Interest received
Income from investments |
12
14
16 |
(4.801)
(44.093)
(866)
(12.418)
3.558
26.059
8.130
26
|
|
(9.856)
(44.118)
-
(14.046)
-
15.504
9.510
390
|
|
Net cash used in investing activities |
|
(24.405)
|
|
(42.616)
|
Cash
flows from financing activities
Repayment of loans
Interest paid
Contribution to the Republic of Cyprus |
|
(184)
(207)
-
|
|
(184)
(246)
(55.000)
|
|
Net cash used in financing activities |
|
(391)
|
|
(55.430)
|
|
Net
increase in cash and cash equivalents |
|
23.508 |
|
4.815 |
|
Cash and cash equivalents at beginning of
the year |
|
135.090
|
|
130.275
|
|
Cash and cash equivalents at end of the year |
|
158.598
|
|
135.090
|
The notes are an integral part of
these financial statements
Notes to the Financial Statements
Press to see the Notes
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