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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 2008 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 2008.
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 2008 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 2008.
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 2008, 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, 25 May
2009
Report of the Auditor General of the Republic to
the 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 2008 submitted by the appointed
auditor in accordance with section 3(1) of the
Public Corporate Bodies (Audited Accounts) Law
and I am satisfied that this is appropriate.
×.
Giorgatzi
Auditor General of the Republic
Lefkosia, 25 May
2009
Income Statement
For the year ended 31 December
208
| |
Note |
2008
€'000 |
|
2007
€'000 |
|
|
|
|
|
|
Operating
Revenue
Operating
Expenses |
4
5 |
484.329
(371.877)
|
|
453.599
(358.823)
|
|
Gross Profit |
|
112.452 |
|
94.776 |
|
|
|
|
|
|
|
Other income
from operations |
6 |
1.975
|
|
2.185
|
|
Operating profit before financing
income/(expenses) |
8 |
114.427
|
|
96.961
|
|
Penalty
(imposed)/cancelled |
24 |
3.960 |
|
- |
|
|
|
|
|
|
Finance income
Finance
expenses |
|
20.536
(1.040)
|
|
14.843
(352)
|
|
Net finance income |
9 |
19.496
|
|
14.491
|
|
Profit before tax |
|
137.883 |
|
111.452 |
|
Tax |
10 |
(34.919)
|
|
(30.208)
|
|
Profit for the year |
|
102.964
|
|
81.244
|
The notes are an integral part of
these financial statements
Balance Sheet
As at
31
December 2008
| |
Note |
2008
€'000 |
|
2007
€'000 |
|
|
|
|
|
|
Assets
Property, plant and
equipment
Intangible assets
Investments in subsidiaries
Investments in associated
undertakings
Held-to-maturity investments
Trade and other receivables |
11
12
13
15
16
17 |
377.581
39.117
55.049
1.480
68.975
2.355
|
|
396.193
31.594
55.049
1.480
69.318
1.810
|
|
Total non-current assets |
|
544.557
|
|
555.444
|
Inventories
Trade and other receivables
Available-for-sale financial assets
Held-to-maturity investments
Refundable tax
Cash at bank and in hand |
17
16
14
22
|
4.949
136.150
1.404
-
26.124
323.236
|
|
5.068
100.604
1.867
33.589
24.332
270.980
|
|
Total current assets |
|
491.863
|
|
436.440
|
|
Total Assets |
|
1.036.420
|
|
991.884
|
|
Equity |
|
|
|
|
Other reserves
Retained
earnings |
18 |
1.253
883.181
|
|
1.716
857.117
|
|
Total equity attributable to shareholders of
the Company |
|
884.434
|
|
858.833
|
|
Liabilities |
|
|
|
|
Long-term loans
Deferred tax liabilities |
19
20 |
1.736
16.049
|
|
2.074
18.849
|
|
Total non-current liabilities |
|
17.785
|
|
20.923
|
Short-term
loans
Trade and other payables |
19
21 |
348
133.853
|
|
349
111.779
|
|
Total current liabilities |
|
134.201
|
|
112.128
|
|
Total liabilities |
|
151.986
|
|
133.051
|
|
Total equity and liabilities |
|
1.036.420
|
|
991.884
|
The notes are an integral part of
these financial statements
The financial
statements were approved by the Board of the
Directors on
25 May, 2009.
S. Kremmos
Chairman |
Ph. Savvides
Chief Executive
Officer |
G. koufaris
Deputy Chief
Executive Officer |
Statement of Changes in Equity
For the year ended
31
December
2008
| |
Other
reserves
€'000 |
|
Retained
earnings
€'000 |
|
Total
€'000 |
|
|
|
|
|
|
Balance at 1 January
2007 |
1.448
|
775.873
|
777.321
|
| |
|
|
|
Fair value gains
Profit for the year |
268
-
|
-
81.244
|
268
81.244
|
|
Balance at 31 December
2007 |
1.716
|
857.117
|
858.833
|
|
|
|
|
|
|
Balance at 1 January
2008 |
1.716 |
857.117 |
858.833 |
|
|
|
|
|
Fair value
losses
Profit for the year
Contribution to Cyprus Government |
(463)
-
-
|
-
102.964
(76.900)
|
(463)
102.964
(76.900)
|
|
Balance at 31 December
2008 |
1.253
|
883.181
|
884.434
|
The notes are an integral part of
these financial statements
Cash Flow Statement
For the year ended
31
December
2008
| |
Note |
2008
€'000 |
|
2007
€'000 |
|
|
|
|
|
|
Cash
flows from operating activities
Profit for the year
Adjustments for:
Depreciation of property, plant and
equipment
Amortisation of intangible fixed assets
Loss/(profit) from the sale of property,
plant and equipment
Income from investments
Interest income
Interest expense
Income tax expense |
11
12
6
9
9
10 |
102.964
58.889
17.009
96
(45)
(20.536)
359
34.919
|
|
81.244
63.681
14.680
(297)
(44)
(14.743)
352
30.208
|
Cash
flows from operations before working capital
changes
Decrease in inventories
(Increase)/decrease in trade and other receivables
Increase/(decrease) in trade and other
payables |
|
193.655
119
(36.091)
22.074
|
|
175.081
1.092
6.250
(62.688)
|
Cash flows from operations
Tax paid |
|
179.757
(39.511)
|
|
119.735
(37.203)
|
|
Net cash from operating activities |
|
140.246
|
|
82.532
|
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
11
14
16 |
(23.998)
(51.838)
-
-
10.931
33.932
20.536
45
|
|
(8.205)
(75.341)
(1.480)
(22.069)
6.082
44.524
14.743
44
|
|
Net cash used in investing activities |
|
(10.392)
|
|
(41.702)
|
Cash
flows from financing activities
Repayment of loans
Interest paid
Contribution to the Republic of Cyprus |
|
(339)
(359)
(76.900)
|
|
(314)
(352)
-
|
|
Net cash used in financing activities |
|
(77.598)
|
|
(666)
|
|
Net
increase in cash and cash equivalents |
|
52.256 |
|
40.164 |
|
Cash and cash equivalents at beginning of
the year |
|
270.980
|
|
230.816
|
|
Cash and cash equivalents at end of the year |
|
323.236
|
|
270.980
|
The notes are an integral part of
these financial statements
Notes to the Financial Statements
Press to see the Notes
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