NOTES TO THE FINANCIAL STATEMENTS

Group Company


17. Other creditors 1996
m
1995
m
1996
m
1995
m


Trade creditors 1,732 1,177 1,455 1,005
Amounts owed to subsidiary undertakings- - 726 1,475
Amounts owed to associated undertakings 37 23 2 1
Corporation taxes 1,091 1,009 1,007 776
Other taxation and social security 354 344 359 336
Other creditors 853 752 701 697
Accrued expenses 282 221 168 119
Deferred income 710 705 685 695
Dividends 715 669 715 669



Total other creditors 5,774 4,900 5,818 5,773



Total other creditors included amounts due after more than one year:
Deferred income 28 43 28 43





18. Provisions for liabilities and charges Deferred
taxation (a)
m
Pension
provisions
m
Other
provisions
m
Total
m




Group
Balances at 1 April 1995 279 671 97 1,047
Charged against profit for the year:
Regular pension cost - 284 - 284
Redundancy charges - 266 - 266
Other charges 96 - 10 106
Utilised in the year - (241) (16) (257)





375 980 91 1,446
Advance corporation tax recoverable (179) - - (179)





Total provisions at 31 March 1996 196 980 91 1,267





Company
Balances at 1 April 1995 113 671 46 830
Charged against profit for the year:
Regular pension cost - 275 - 275
Redundancy charges - 266 - 266
Other charges 87 - 7 94
Utilised in the year - (232) (4) (236)





200 980 49 1,229
Advance corporation tax recoverable (179) - - (179)





Total provisions at 31 March 1996 21 980 49 1,050






Group Company


(a) Deferred taxation
The elements of deferred taxation provided in the accounts at 31 March were as follows:
1996
m
1995
m
1996
m
1995
m


Tax effect of timing differences due to:
Excess capital allowances 712 554 654 532
Pension provisions (323) (352) (323) (352)
Other (14) 77 (131) (67)



Total deferred taxation provided 375 279 200 113
Advance corporation tax recoverable (179) (168) (179) (113)



Total provision for deferred taxation 196 111 21 -




The total potential liability to deferred taxation at 31 March was as follows:
Tax effect of timing differences due to:
Excess capital allowances 2,700 2,512 2,642 2,490
Pension provisions (323) (352) (323) (352)
Other (14) 77 (131) (67)



Total 2,363 2,237 2,188 2,071
Advance corporation tax recoverable (179) (168) (179) (168)



Total potential liability for deferred taxation 2,184 2,069 2,009 1,903




19. Called up share capital
The authorised share capital of the company throughout the year ended 31 March 1996 was 2,625,000,001 divided into one special rights redeemable preference share of 1 and 10,500,000,000 ordinary shares of 25p each.

The allotted, called up and fully paid share capital of the company was 1,573m at 31 March 1996 (1995 - 1,559m), representing 6,291,457,275 ordinary shares (1995 - 6,234,917,704) and one special rights redeemable preference share (1995 - 1).

Certain special rights, set out in the companys articles of association, attach to the special rights redeemable preference share issued to HM Government. This share, which carries no right to capital or profits beyond its nominal value, is redeemable at par at the option of the shareholder.

Of the authorised but unissued share capital at 31 March 1996, 257 million ordinary shares were reserved to meet options granted under the employee share option schemes described in note 27.

Ordinary shares allotted during the year were as follows:

Number Nominal value
Consideration



Savings related schemes 49,409,345 12,352,336 108,620,517
Other share option schemes 7,130,226 1,782,557 21,584,280



Totals for the year ended 31 March 1996 56,539,571 14,134,893 130,204,797




Other reserves

20. Reserves Share
premium
account
m
Capital
redemption
reserve
m
Other
reserves
m
Profit
and loss
account
m
Total
m





Group
Balances at 1 April 1995 415 750 18 9,255 10,438
Premium on allotment of ordinary shares 116 - - - 116
Retained profit for the financial year - - - 802 802
Goodwill, on acquisition of subsidiary and associated undertakings, written off (a) - - - (302) (302)
Goodwill, previously written off to reserves, taken back to profit and loss account (a) - - - 12 12
Currency movements arising on consolidation of foreign subsidiary and associated undertakings (b) - - - 42 42
Other movements - - 9 (12) (3)






Balances at 31 March 1996531 750 27 9,797 11,105






Company
Balances at 1 April 1995 415 750 - 9,890 11,055
Premium on allotment of ordinary shares 116 - - - 116
Retained profit for the financial year (c) - - - 1,155 1,155
Currency movements arising on investments in subsidiary and associated undertakings (b) - - - 149 149






Balances at 31 March 1996 531 750 - 11,194 12,475






(a) Aggregate goodwill in respect of acquisitions in the current and earlier years of 2,477m (1995 - 2,187m) has been written off against the groups reserves.

(b) The currency movements for the group and the company included net losses, in respect of currency borrowings, of 29m and 28m, respectively.

(c) The profit for the financial year, dealt with in the profit and loss account of the company, was 2,339m (1995 - 1,800m). As permitted by Section 230 of the Companies Act 1985, no profit and loss account of the company is presented.

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