Port Waratah Coal Services Limited

Notes to the financial statementsfor the financial year ended 31 December 2011ConsolidatedCompany31-Dec-11 31-Dec-10 31-Dec-11 31-Dec-10$'000 $'000 $'000 $'000NOTE 2 Profit from Operations(a) RevenueRevenue from continuing operations consisted of thefollowing items:Revenue from the rendering of Coal Handling Services 438,678 360,803 438,678 360,803(b) Other IncomeDividends from other corporations 993 967 1,296 967Interest received 837 5,975 837 5,975Other 1,040 1,135 1,040 1,135Gain on disposal of property, plant and equipment15 345 15 3452,885 8,422 3,188 8,422Total Revenue and Other Income 441,563 369,225 441,866 369,225(c) Profit before income taxProfit before income tax has been arrived at aftercharging the following expenses. The line items belowcombine amounts attributable to continuingoperations:Depreciation of property, plant and equipment 79,553 72,025 79,553 72,025Borrowing costs:Interest and finance charges paid/payable 37,101 34,439 37,101 34,439Amount capitalised - -Interest unwinding on rehabilitation provision 3,820 3,560 3,820 3,56040,921 37,999 40,921 37,999Defined contribution superannuation expense - 4 - 4Rental expense relating to operating leases and access 5,641 3,271 5,641 3,271agreementsNOTE 3 INCOME TAX(a) Income tax recognised in profit or lossTax expense comprises:Current tax expenseDeferred tax expense relating to the origination andreversal of temporary differencesTotal tax expenseThe prima facie income tax expense on pre-taxaccounting profit from operations reconciles to theincome tax expense in the financial statements asfollows:Profit from continuing operationsIncome tax expense calculated at 30%39,006 27,865 39,006 27,8655,364 (2,253) 5,364 (2,253)44,370 25,612 44,370 25,612151,946 85,825 152,249 85,52245,584 25,747 45,675 25,656Add/(Less)Capital loss- 458 - 458Non-deductible expenses175 144 175 144Share of profit from associate- (91) - -Investment allowance- (232) - (232)Research and development tax concessions (928) - (928) -Franking credits(465) (415) (556) (415)Adjustments recognised in the currentyear in relation to current tax of prioryears4 - 4 -44,370 25,612 44,370 25,61227