603585-1940-Supplementary-Bill-read-a-first-time---Telephone-Amendment — Page 2

339

of net

profits.

35.-(1) For the purposes of section 36, the net annual Computation 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 moneys borrowed by the Company includ- ing interest on Debentures;

(ii) the sums payable yearly to the Accountant-General in accordance with section (7);

(iii) working costs;

(iv) reasonable management expenses;

(v) superannuation and provident funds;

(vi) maintenance and removal of works, apparatus and other property of the Company;

(vii) 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 sum not exceeding ten per cent. of the cost of such plant and equipment;

(iii) 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 sum, 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).

(3) The Company shall be entitled to make annual appro- priations to Capital Reserve. Commencing with the year 1939 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.

(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.

(5) 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 Reserve, 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.