1025 As
TITTT
Substitution
for section 35
No. of
4. Section 35 of the Telephone Ordinance, 1925, as
of Ordinance amended by section 7 of the Telephone Amendment Ordin- ance, 1930, and by section 2 of the Telephone Amendment Ordinance, 1933, is repealed and the following section substituted therefor----
mended by section 7 of
Ordinance No. of
1930, and
vection 2 of
Ordinanc
No 27 of
J933.
Computation of nut profita.
35-(1) For the purposes of section 30, the net annual profits of the Company in respect of any financial year com mencing with the year 1939 shall be the gross takings of the Company, excluding the interest and dividends referred to in sub-section (3) of this section but including the takings in respect of trunk line services, less the moneys appropriated for the following purposes, namely
(i) interest on moneya borrowed by the Company includ- ing interest on Debentures;
(ii) the suas payable yearly to the Accountant-General
in accordance with section (7);
(i) working onsts;
(iv) reasonable management expenses;
(v) superannuation and provident funds;
(vi) maintenance and removal of works, apparatus and
other property of the Company;
(vi) depreciation of buildings, plant and other property of the Company, including investments and other assets of whatever nature with the exception of investments made on account of the Capital Reserve Fund;
(viii) the appropriation of authorized sums to Reserve.
(2)(a) The amount to be written off or provided annually for depreciation shall be-
(i) in the case of land and buildings, a sum or sums to be fixed by an architect approved by the Director and the Company:
(ii) in the case of plant and equipment other than build- ings, a aum not exceeding ten per cent, of the cost of such plant and equipment;
(ii) in the case of investments, a sum not exceeding the amount by which the book value of the investments exceeds their current market value at the date of making up the
accounts.
(b) In the event of investments, other than investments held on account of the Capital Reserve Fund, being sold or otherwise disposed of for a sun, whether received in cash or otherwise, in excess of the current book value of such invest- ments, such excess shall be included in the gross takings of the Company for the purposes of sub-section (1).
(8) The Company shall be entitled to make annual appro- priations to Capital Reserve. Commencing with the year 1989 no such annual appropriation shall exceed the sum of ninety- two thousand five hundred and seventy-seven dollars plus the total amount of interest and dividends received during the year from the investments made on account of this Reserve.
3
(4) The cost of making provision for the maintenance of an efficient service shall not include any sums expended on works where such expenditure is in the nature of capital outlay,
(6) Notwithstanding that in any year or other accounting period no allowance or a less allowance than that hereinbefore authorized shall have been made for depreciation or appro- priation to Beserve, it shall not be lawful for the Company to make in any succeeding year or accounting period any greater allowance for those purposes than that hereinbefore authorized.
5. Section 36 of the Telephone Ordinance, 1925, is Substitution repealed and the following section is substituted therefor-
for section 36 of Ordinance No. 9 of 1925.
GGVATEMEN
36.-(1) I after deducting the amount (if any) payable abo to the Government, by way of taxation on profits, from the of additional not annual profits of the Company, as defined in section 85, soyalty. and commencing with the financial year 1989, there shall remain a sum greater than 12 per cent. on the paid-up capital for the time being of the Company then there shall be paid to the Accountant-General, as an additional royalty to the royalty laid down in section 7, one half of the surplus of such remaining som over and above the amount of such 12 per cent.
(2) Any dispute which may arise under section 35 as to the amount of the net amual profits of the Company shall be referred to arbitration under the provisions of section 49.
6. Section 87 of the Telephone Ordinance, 1926, as amended by section 8 of the Telephone Amendment Ordin- ance, 1930, is further amended by the repeal of the third paragraph. thereof.
dent of Ordinamen No. of
of suction 37
1925, d mmanded by section of Ordinancn
No. 9 of 1030.
for section
7. Section 88 of the Telephone Ordinance, 1926, is Bubellation reptuled and the following section is substituted therefor-
32 of Ordin
Ace No. £
of 1925.
for a
38. The Company shall provide the Government, free of Provinian charge, with a telephone service for Government purposes service for up to 600 lines and shall arrange for the necessary brauch Goverment exchange to be constructed in a place approved by the purposes. Government ne sufficiently protected from possible air raid damage. Any telephones or connexions in excess of 500 lines will be paid for by the Government at standard rates of subscription in accordance with the provisions of section 34 loss a discount of twenty-five per cent.
8. Section 39 of the Telephone Ordinance, 1925, is Substatica repealed and the following section is substituted therefor......
fns Kection
39 of Ordin-
nuce No. 9 of 1925.
and allow
of sccounts.
39.--(1) The Company shall keep true and particular Company accounts of and concerning all matters connected with the p concession and shall, on the first day of March in every year lospection deliver to the Accountsut-General a statement in writing showing the number of subscribers connected with each exchange and the number of persons who have requested
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