SERVICE STREAM LIMITED — Annual Report 2004

Dec 5, 2004

$\bar{L}$

ABN 46 072 369 870

$\sim 10^7$

FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2003

CONTENTS PAGE Director's Report $1-2$ $\overline{3}$ Statement of Financial Performance Statement of Financial Position $\overline{4}$ $\overline{5}$ Statement of Cash Flows Notes to the Financial Statements $6 - 16$ Directors' Declaration 17 Independent Audit Report to the Members 18

$\hat{\mathcal{L}}$

TOTAL COMMUNICATIONS INFRASTRUCTURE PTY LIMITED ABN 46 072 369 870

DIRECTORS' REPORT

The directors submit the financial statements for the year ended 30 June 2003.

Directors

$\Delta = \frac{1}{2} \frac{N_{\rm{max}}}{\sigma_{\rm{max}}^2}$

(

The names of the directors in office at the date of this report are:

James J. Cooney Mark A. Stackpool Rodney A. Stanton

Principal Activities

The principal activity of the company during the financial year was telecommunications infrastructure project management.

No significant change in the nature of the activity occurred during the year.

Results and Dividends

The net profit after providing for income tax amounted to \$6,919,745.

Fully franked dividends of \$724,526 were paid during the year.

Insurance of Officers

During the financial year the company paid a premium of \$11,160 to insure the Directors of the company. The possible liabilities covered include costs incurred in defending civil or criminal proceedings that may be brought against officers in their capacity as officers of the company.

Except for the above, the company has not, during or since the end of the financial year, in respect of any person who is or has been an officer or auditor of the company or of a related body corporate:

indemnified or made any relevant agreement for indemnifying against a liability, including costs and expenses in successfully defending legal proceedings; or

paid or agreed to pay a premium in respect of a contract insuring against a liability for the costs or expenses to defend legal proceedings.

Matters Subsequent to the End of the Financial Year

No matters or circumstances have arisen since 30 June 2003 that have significantly affected or may significantly affect in subsequent financial years:

$\mathbf{q}$ $\blacksquare$

• the operations of the company; $(i)$
• (ii) the results of those operations: or
• (iii) the state of affairs of the Company.

DIRECTORS' REPORT (Cont)

Capital Commitments

The company has no capital commitments as at 30 June 2003.

Future Developments

Disclosure of information in relation to likely developments in the operations of the company and the expected results of operations have not been included in this report because the directors believe it would be likely to result in unreasonable prejudice to the company.

Signed in accordance with a resolution of the directors:

Fat

Director

$\big($

$\label{eq:2} \mathbf{A} = \left[ \begin{array}{c} \mathbf{A} \ \mathbf{A} \end{array} \right] \mathbf{A} \mathbf{A}$

. . . . . . . . . . . . . . . . . . . . Rodney A. Stanton

Director

Mark A. Stackpool $1976$ MBIR 2003 $26$

Dated

STATEMENT OF FINANCIAL PERFORMANCE

FOR THE YEAR ENDED 30 JUNE 2003

$\label{eq:2} \frac{\partial}{\partial t} \left( \frac{\partial}{\partial t} \right) \frac{\partial}{\partial t} \left( \frac{\partial}{\partial t} \right) = 0.$

$\mathbf{\mathcal{L}}$

$\mathbf \epsilon$

гов ше телиевре зооспе 200	Note	2003 S	2002 S
REVENUE FROM ORDINARY ACTIVITIES	$\overline{2}$	57,151,550	32,646,888
EXPENSES FROM ORDINARY ACTIVITIES	3	47, 171, 885	27,026,245
PROFIT FROM ORDINARY ACTIVITIES BEFORE INCOME TAX		9,979,665	5,620,643
Income Tax Expense	4	3,059,920	1,691,631
PROFIT FROM ORDINARY ACTIVITIES AFTER INCOME TAX EXPENSE		6.919.745	3.929.012

The statement of financial performance is to be read in conjunction with the accompanying notes to the financial statements.

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2003

$\label{eq:2.1} \begin{array}{l} \mathbf{A}^{(1)} = \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf{A}^{(1)} \mathbf$

t

€

	Note	2003 \$	2002 S.
CURRENT ASSETS
Cash	5	7,284,793	4,263,357
Receivables	6	7,970,888	6,037,211
Other	7	376,732	315,599
Inventories	8	1,851,716	894,655
TOTAL CURRENT ASSETS		17,484,129	11,510,822
NON-CURRENT ASSETS
Property, Plant and Equipment	9	566,200	694,201
Receivables	10	3,223,252	1,204,538
Deferred Tax Assets	11	110,737	104,301
TOTAL NON-CURRENT ASSETS		3,900,189	2,003,040
TOTAL ASSETS		21,384,318	13,513,862
CURRENT LIABILITIES
Payables	12	7,050,607	4,996,758
Borrowings	13	149,714	473,877
Current Tax Liabilities	14	621,881	680,536
Deferred Tax Liabilities	15	11,372
Provisions	16	149,092	184,261
TOTAL CURRENT LIABILITIES		7,982,666	6,335,432
NON-CURRENT LIABILITIES
Borrowings	17	61,085	66,047
Provisions	18	59,439	26,474
TOTAL NON-CURRENT LIABILITIES		120,524	92,521
TOTAL LIABILITIES		8,103,190	6,427,953
NET ASSETS		13,281,128	7,085,909
EQUITY
Contributed Equity	19	$\mathbf{2}$	2
Retained Profits	20	13,281,126	7,085,907
TOTAL EQUITY		13,281,128	7,085,909

The statement of financial position is to be read in conjunction with the accompanying notes to the financial statements.

STATEMENT OF CASH FLOWS

$\frac{1}{2}$ .

$\overline{\mathcal{L}}$

$\blacksquare$

FOR THE YEAR ENDED 30 JUNE 2003

	Note	2003 S	2002 \$
Cash Flows from Operating Activities:
Receipts from Operations Interest Received Payment to Suppliers & Employees Income Tax Paid Interest & Other Cost of Finance Paid		56,263,995 609,186 (46,026,329) (3, 119, 671) (24, 767)	29,970,537 252,042 (26, 561, 151) (1,168,205) (66, 572)
Net Cash Provided by (Used in) Operating Activities	21(a)	7,702,414	2,426,651
Cash Flows from Investing Activities:
Proceeds from Property, Plant & Equipment Payment for Property, Plant & Equipment		233,713 (318, 341)	225,518 (202, 253)
Net Cash Provided by (Used in) Investing Activities		(84, 628)	(23, 265)
Cash Flows from Financing Activities:
Finance Lease Repayments Increase in Borrowings Dividends Paid		(213, 113) (3,658,710) (724, 527)	(411, 170) 87,253 (427, 175)
Net Cash Provided by (Used in) Financing Activities		(4,596,350)	(925, 598)
Net Increase (Decrease) in Cash Held		3,021,436	(1,524,318)
Cash at Beginning of Financial Year		4,263,357	2,739,039
CASH AT END OF FINANCIAL YEAR	21(b)	7,284,793	4,263,357

The statement of cash flows is to be read in conjunction with the accompanying notes to the financial statements.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2003

$\label{eq:2} \Delta \epsilon = \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{2}} \frac{1}{\sqrt{$

€

$\mathbf{1}$ STATEMENT OF ACCOUNTING POLICIES

The company is not a reporting entity because in the directors' opinion, users are unlikely to exist who are unable to command the preparation of reports tailored so as to satisfy specifically all of their information needs.

This is a special purpose financial report that has been prepared for the sole purpose of complying with the Corporations Act 2001 requirements to prepare and distribute a financial report to members and must not be used for any other purpose. The directors have determined that the accounting policies adopted are appropriate to the needs of members.

The company has applied Accounting Standard AASB1025, Application of the Reporting Entity Concept and Other Amendments, which amends the application clauses of all existing standards so that they now apply only to companies that qualify as reporting entities. However, the financial report has been prepared in accordance with AASB1018 Statement of Financial Performance, AASB1034: Information to be Disclosed in Financial Reports, AASB1040 Statement of Financial Position and other applicable Accounting Standards and Urgent Issues Group Consensus Views, with the exception of the following.

AASB1005 – Financial Reporting by Segments AASB1017 - Related Party Disclosures AASB1033 – Presentation and Disclosure of Financial Instruments

The financial report has been prepared on the basis of historical costs and does not take into account changing money values or, except where stated, current valuations on non-current assets. The accounting policies have been consistently applied, unless otherwise stated.

The following is a summary of the material accounting policies adopted by the company in the preparation of the financial report.

Revenue Recognition

Sales revenue is recognised upon the issue of invoice to the customer.

Income Tax

Tax-effect accounting procedures are adopted whereby the income tax expense is calculated on the operating profit, adjusted for permanent differences between taxable and accounting income.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2003

$\mathbf{1}$ STATEMENT OF ACCOUNTING POLICIES(Cont.)

Income Tax (continued)

Timing differences, which arise due to the different accounting periods in which items of revenue and expense are included in the determination of operating profit and taxable income, are brought to account as either a provision for deferred income tax or a future income tax benefit.

Future income tax benefits are not brought to account unless realisation of the asset is assured beyond reasonable doubt. Future income tax benefits relating to entities with tax losses are only brought to account when their realisation is virtually certain.

Inventories

$\label{eq:2} \frac{1}{\sqrt{2}}\left(\frac{1}{\sqrt{2}}\right)^2\frac{1}{\sqrt{2}}\left(\frac{1}{\sqrt{2}}\right)^2.$

€

Inventories are measured at the lower of cost and net realisable value.

Property, Plant and Equipment

Property, plant and equipment is brought to account at cost or at director's valuation, less where applicable, any accumulated depreciation.

Depreciation is calculated so as to write off the net cost of each depreciable non-current asset over its expected useful life. Estimates of remaining useful lives are reviewed on a regular basis for all assets, with annual reassessments for major items. The depreciation rates used for each class of asset are as follows:

Plant and Equipment	$6\% - 20\%$
Motor Vehicles	$11\% - 22.5\%$
Office Furniture and Equipment	$6\% - 20\%$
Assets under Lease	$6\% - 20\%$

Leases

Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership are transferred to the company are classified as finance leases. Finance leases are capitalised recording an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual value. Leased assets are amortised over their estimated useful lives. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Lease payments under operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.

Employee Benefits

Provision is made, or a current liability for the legal liability to permanent employees for annual leave. Long Service Leave is not provided until a permanent employee attains five years continuous service. Sick Leave is expired or incurred.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2003

$\overline{1}$ STATEMENT OF ACCOUNTING POLICIES(Cont.)

Employee Benefits (cont.)

Contributions are made by the company to an employee superannuation fund and are charged as expenses when incurred. The company has no legal obligation to provide benefits to employees on retirement.

Foreign Currency Transactions and Balances

Foreign currency transactions during the period are converted to Australian currency at the rate of exchange applicable at the date of the transactions. Amounts receivable and payable in foreign currency at balance date are converted at the rates of exchange ruling at that date.

The gains and losses from conversion of short term assets and liabilities, whether realised or unrealised, are included in operating profit before income tax as they arise.

Maintenance and Repairs

Maintenance, repair costs and minor renewals are charged as expenses as incurred.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2003

ŧ

		2003 s	2002 S.
$\mathbf{2}$	REVENUE
	Revenue form operating activities
	Sale of Services	56,542,364	32,157,842
	Revenue from outside the operating activities
	Interest received	536,938	252,042
	Other	72,248	237,004
		57,151,550	32,646,888
3	PROFIT FROM ORDINARY ACTIVITIES
	Profit from ordinary activities before income tax expense includes the following specific
	net expenses:
	Depreciation	161,420	232,251
	Amortisation	78,652	191,979
	Employee Entitlements	182,058	210,735
4	INCOME TAX EXPENSE
	The prima facie tax payable on operating profit is reconciled to the income tax provided in the accounts as follows:
	Prima facie tax payable on operating profit &
	extraordinary items at 30%	2,993,900	1,686,192
	Add tax effect of permanent differences:
	Entertainment	3,457	4,389
	Non-deductible expenditure	1,114	1,051
	Less tax effect of:	2,998,471	1,691,632
	Timing differences not taken up	61,449
	Income Tax Expense	3,059,920	1,691,632

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2003

ĺ

$\bar{ }$

		2003 S	2002 \$
5	CASH
	CURRENT
	Cash at Bank	7,284,793	4,263,357
6	RECEIVABLES CURRENT
	Trade Debtors Other Debtors	4,840,329 104,173	4,518,221 16,588
	Retentions Held By Hutchison TCI UK Limited		99,159
	Loan - Habagou Properties	1,186,751 283,923	610,138 124,860
	Total Communications Innovations	1,555,712	668,245
		7,970,888	6,037,211
7	OTHER ASSETS CURRENT
	Prepayments	281,915	227,383
	Deposits	94,817	88,216
		376,732	315,599
8	INVENTORIES
	Work in Progress – At Cost	1,851,716	894,655

$\sim 10^{11}$

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2003

$\frac{1}{\sum_{i=1}^{n-1} \sum_{j=1}^{n-1} \sum_{j=1}^{n-1} \sum_{j=1}^{n-1} \sum_{j=1}^{n-1} \sum_{j=1}^{n-1} \sum_{j=1}^{n-1} \sum_{j=1}^{n-1} \sum_{j=1}^{n-1} \sum_{j=1}^{n-1} \sum_{j=1}^{n-1} \sum_{j=1}^{n-1} \sum_{j=1}^{n-1} \sum_{j=1}^{n-1} \sum_{j=1}^{n-1} \sum_{j=1}^{n-1} \sum_{j=1}^{n-1} \sum_{j=1}^{n-1$

$\overline{\mathbf{C}}$

ĺ

	2003 S	2002 S.
PROPERTY, PLANT & EQUIPMENT 9
	172,704	164,044
Furniture & Fittings - At Cost Less: Accumulated Depreciation	105,623	88,374
	67.081	75,670
Office Furniture & Equipment - At Cost	646,056	463,359
Less: Accumulated Depreciation	362,503	272,292
	283,553	191,067
Other Assets under Lease	170,888	686,022
Less: Accumulated Amortisation	65,393	363,750
	105,495	322,272
Motor Vehicles - At Cost	373,311	281,018
Less: Accumulated Amortisation	263,240	175,826
	110,071	105,192
Leasehold Improvements - At Cost	120,165	120,165
Less: Accumulated Depreciation	120,165	120,165
Total Property, Plant & Equipment	566,200	694.201

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2003

$\mathcal{I}_\bullet$

$\frac{1}{2}$ .

€

€

	2003	2002
	S	\$
PROPERTY, PLANT & EQUIPMENT (cont'd) 9
(a) Movements in Carrying Amounts
Furniture & Fittings
Balance at the beginning of year	75,670	76,992
Additions	8,660	8,546
Depreciation expense	(17, 249)	(9,868)
Carrying amount at the end of year	67,081	75,670
Office Furniture & Equipment
Balance at the beginning of year	191,066	194,114
Additions	182,698	94,178
Depreciation expense	(90,211)	(93, 226)
Carrying amount at the end of year	283,553	191,066
Other Assets under Lease
Balance at the beginning of year	322,272	735,346
Additions	45,522
Disposals	(183, 649)	(221,095)
Amortisation expense	(78,650)	(191, 979)
Carrying amount at the end of year	105,495	322,272
Motor Vehicles
Balance at the beginning of year	105,192	41,196
Additions	81,461	8,218
Disposals	(50,064)
Depreciation expense	(26, 518)	(34, 222)
Carrying amount at the end of year	110,071	105,192
Leasehold Improvements
Balance at the beginning of year		95,989
Additions		5,312
Depreciation expense		(101, 301)
Carrying amount at the end of year
Total Carrying Amount of Property, Plant & Equipment	566,200	694,201

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2003

$\overline{\mathbf{C}}$

€

		2003 \$	2002 $\mathbf{s}$
10	RECEIVABLES
	NON - CURRENT
	Loan - TCI UK Limited		219,311
	- Habagou Properties	3,003,941	1,204,538
		3,223,252	1,204,538
11	DEFERRED TAX ASSETS
	NON - CURRENT Future Income Tax Benefit	110,737	104,301
12	PAYABLES
	Trade Creditors & Accrued Expenses	6,849,513	4,919,279
	GST Payable Income in Advance	49,770	57,479
		151,324	20,000
13	BORROWINGS	7,050,607	4,996,758
	CURRENT
	Lease Liability	45,556	253,707
	Loan - Total Communications Innovations	104,158	220,170
		149,714	473,877
14	TAX LIABILITIES CURRENT
	Provision for Income Tax	621,881	680,536
15	DEFERRED TAX LIABILITIES CURRENT
	Deferred Income Tax Liability	11.372
16	PROVISIONS CURRENT
	Provision for Annual Leave	149,092	184,261
17	BORROWINGS NON-CURRENT
	Lease Liability	61,085	66,047

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2003

$\frac{1}{2}\sum_{i=1}^{n}\frac{1}{2}\sum_{j=1}^{n}\frac{1}{2}\sum_{j=1}^{n}\frac{1}{2}\sum_{j=1}^{n}\frac{1}{2}\sum_{j=1}^{n}\frac{1}{2}\sum_{j=1}^{n}\frac{1}{2}\sum_{j=1}^{n}\frac{1}{2}\sum_{j=1}^{n}\frac{1}{2}\sum_{j=1}^{n}\frac{1}{2}\sum_{j=1}^{n}\frac{1}{2}\sum_{j=1}^{n}\frac{1}{2}\sum_{j=1}^{n}\frac{1}{2}\sum_{j=1}^{n}\frac{1}{2}\sum_{j=1}^{n}\frac{1}{2}\sum_{j$

€

		2003 S	2002 \$
18	PROVISIONS
	NON-CURRENT
	Provision for Long Service Leave	59,439	26,474
19	CONTRIBUTED EQUITY
	Paid Up Capital
	2 Ordinary Shares (1998: 2 of \$1 each) fully paid	っ	2
20	RETAINED PROFITS
	Balance at beginning of the year	7,085,907	3,584,070
	Net Profit for the year	6,919,745	3,929,012
	Dividends Paid	(724, 526)	(427, 175)
	Balance at end of the year	13.281.126	7,085,907
21	LEASE COMMITMENTS
	Other Assets under Lease
	Not later than one year	51,737	270,890
	Later than one year and not later
	than two years	39,716	41,450
	Later than two years and not later
	than five years	23,923	29,429
		115,376	341,769
	Less: Future Finance Charges	8,735	22,015
		106,641	319,754
	Operating Leases
	Not later than one year	521,908	483,381
	Later than one year and not later
	than two years	244,959	164,676
	Later than two years and not later than five years
		218,043 984,910	240,487 888.544

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH JUNE 2003

$\label{eq:2} \frac{1}{2}\left(\frac{1}{2}\right)^2+\frac{1}{2}\frac{1}{2}\left(\frac{1}{2}\right)^2$

$\mathbf \epsilon$

$\mathbf \mathbf \mathbf \mathbf \mathbf \mathbf \mathbf \mathbf \mathbf \mathbf \mathbf \mathbf \mathbf \math$

		2003 S	2002 S
22	STATEMENT OF CASH FLOWS
(a)	Reconciliation of Net Cash provided by Operating Activities to Operating Profit after Income Tax
	Operating Profit (Loss) after Income Tax	6,919,745	3,929,012
	Non Cash Flows and Non-Operating Items in Operating Profit:
	Unrealised Foreign Exchange Gain	6,032	(10, 877)
	Amortisation	78,652	191,979
	Depreciation	133,977	232,251
	Profit on sale of Property, Plant & Equipment	(1,100)	4,416
	Changes in Assets & Liabilities:
	Decrease (Increase) in Receivables	(416, 294)	(1,785,251)
	Decrease in Deferred Tax Asset	4,937	6,057
	Decrease (Increase) in Prepayments	(54, 532)	(78, 814)
	Decrease (Increase) in Inventories	(957,061)	(329, 490)
	Increase (Decrease) in Trade Creditors	2,053,849	(310, 723)
	Increase (Decrease) in Provisions	(55, 927)	578,091
	Net Cash Provided (Used) by Operating Activities	7,702,414	2,426,651
(b)	Reconciliation of Cash
	Cash at the end of the financial year as shown in the statement of cash flow is reconciled to the related item in the balance sheet as follows:
	Cash at Bank	7,284,793	4,263,357

(c) Non-Cash Financing and Investing Activities

During the financial year, the company acquired no plant and equipment by means of finance leases (Refer Note 9).

$\sim 10^{-10}$

ABN 46 072 369 870

DIRECTORS' DECLARATION

As stated in Note 1 to the financial statements, in the directors' opinion, the company is not a reporting entity because there are no users dependent on general purpose financial reports. This is a special purpose financial report that has been prepared to meet Corporations Act 2001 requirements.

The financial report has been prepared in accordance with Accounting Standard AASB 1025: Application of the Reporting Entity Concept and Other Amendments and other Accounting Standards and mandatory professional reporting requirements to the extent described in Note 1.

The directors declare that the financial statements and notices set out on pages 3 to 15 :

• (a) comply with Accounting Standards and other mandatory professional reporting requirements as detailed above, and the Corporations Regulations 2001; and
• (b) give a true and fair view of the company's financial position as at 30 June 2003 and of its performance, as represented by the results of its operations for the financial year ended on that date.

In the director's opinion:

• (a) the financial statements and notes are in accordance with the Corporations Act 2001; and
• (b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors:

Director

€

Rodney A Stanton

Director

Mark A Stackpool

$26$ servenger 2003 Dated

INDEPENDENT AUDIT REPORT TO THE MEMBERS OF

TOTAL COMMUNICATIONS INFRASTRUCTURE PTY LIMITED ABN 46 072 369 870

Audit Opinion

$\begin{aligned} \mathbf{A} & \mathbf{A} & \mathbf{A} \ \mathbf{A} & \mathbf{A} & \mathbf{A} \ \mathbf{A} & \mathbf{A} & \mathbf{A} \end{aligned}$

€

In our opinion, the financial report, set out on pages 3 to 16:

• (a) presents a true and fair view, as required by the Corporations Act 2001 in Australia, of the financial position of Total Communications Infrastructure Pty Limited as at 30 June 2003 and of its performance for the year ended on that date in accordance with the accounting policies described in Note 1 to the financial statements; and
• (b) is presented in accordance with Accounting Standards and other mandatory professional reporting requirements in Australia to the extent described in Note 1 to the financial statements, the Corporations Act 2001 and the Corporations Regulations 2001.

This opinion must be read in conjunction with the following explanation of the scope and summary of our role as auditor.

Scope and Summary of our role

The financial report - responsibility and content

The preparation of the financial report, being a special purpose financial report, for the year ended 30 June 2003 is the responsibility of the director of Total Communications Infrastructure Pty Limited. It includes the financial statements for Total Communications Infrastructure Pty Limited (the Company) and has been prepared for distribution to members for the purpose of fulfilling the director's financial reporting requirements under the Corporation Act 2001.

The directors have determined that the accounting policies used and described in Note 1 to the financial statements, including the basis of accounting, which forms part of the financial report, are appropriate to meet the requirements of the Corporations Act 2001 and the needs of members.

The Auditor's role and work

We conducted an independent audit of the financial report in order to express an opinion on it to the members of the Company. No opinion is expressed as to whether the accounting policies used, and described in Note 1, are appropriate to the needs of the members. We disclaim any assumption of responsibility for any reliance on this audit report or on the financial report to which it relates to any person other than the members, or for any purpose other than that for which they were prepared.

Our role was to conduct the audit in accordance with Australian Auditing Standards. Our audit did not involve an analysis of the prudence of business decisions made by the director or management.

INDEPENDENT AUDIT REPORT TO THE MEMBERS OF

TOTAL COMMUNICATIONS INFRASTRUCTURE PTY LIMITED ABN 28 104 504 449

The Auditor's role and work (continued)

In conducting the audit, we carried out a number of procedures to assess whether in all material respects the financial report presents fairly a view in accordance with the Corporations Act 2001, the accounting policies described in Note 1 to the financial statements and the Corporations Regulations 2001, which is consistent with our understanding of the Company's financial position, and its performance as represented by the results of its operations. These policies do not require the application of all Accounting Standards and other mandatory professional reporting requirements in Australia.

The procedures included:

$\sum_{\mathbf{y} \in \mathcal{Y}} \sum_{\mathbf{y} \in \mathcal{Y}} \sum_{\mathbf{y} \in \mathcal{Y}} \sum_{\mathbf{y} \in \mathcal{Y}} \sum_{\mathbf{y} \in \mathcal{Y}} \sum_{\mathbf{y} \in \mathcal{Y}} \sum_{\mathbf{y} \in \mathcal{Y}} \sum_{\mathbf{y} \in \mathcal{Y}} \sum_{\mathbf{y} \in \mathcal{Y}} \sum_{\mathbf{y} \in \mathcal{Y}} \sum_{\mathbf{y} \in \mathcal{Y}} \sum_{\mathbf{y} \in \mathcal{Y}} \sum_{\mathbf{y} \in \mathcal{Y$

€

• (a) selecting and examining evidence, on a test basis, to support amounts and disclosures in the financial report;
• (b) evaluating significant accounting estimates made by director in the preparation of the financial report; and
• obtaining written confirmation regarding material representations made to us in connection with the $(c)$ audit.

Our audit opinion was formed on the basis of these procedures.

Independence

As auditor, we are required to be independent of the Company and free of interests which could be incompatible with integrity and objectivity. In respect of this engagement, we followed the independence requirements set out by The Institute of Chartered Accountants in Australia, the Corporations Act 2001 and the Auditing and Assurance Standards Board.

V.J.Ryon.co

V.J RYAN & CO Chartered Accountants

Pelg Il

Peter D Wyer Partner

Dated at Sydney this Lenk day of SEPTEARSA 2003