Notes to the Financial Statements

(b) Operating costs include Directors’ emoluments for the year 1999 of Rs. 41 million. This includes fees paid to NTT of Rs. 40         million for the secondment of expatriate personnel who are also Directors of SLTL.

3. Staff Costs     Group Company

---------------- ---------------- ---------------- ----------------       1999 1998 1999 1998     Rs.million Rs.million Rs.million Rs.million     ---------------- ---------------- ---------------- ----------------     Salaries, wages and allowances 2,084 1,891 2,084 1,891   Social security contributions 229 197 229 197     ---------------- ---------------- ---------------- ----------------     2,313 2,088 2,313 2,088     ---------------- ---------------- ---------------- ----------------     4. Finance Costs                Group/Company     ---------------- ----------------     1999 1998     Rs.million Rs.million           ---------------- ----------------     Interest expense and related charges         Rupee loans (long-term)     1,260 1,101     Rupee loans (short-term)     174 21     Foreign currency loans     1,419 907     Net foreign exchange losses and other charges (note a)     950 561         ---------------- ----------------     Total interest payable     3,803 2,590     Interest capitalised     (490) (691)         ---------------- ----------------     Total interest charged     3,313 1,899           ---------------- ----------------     (a) Other charges are for interest on bank overdrafts and the guarantee premium paid for 150K projects.                   5. Taxation             The charge for taxation is made up as follows:               Group/Company          ---------------- ----------------         1999 1998         Rs.million Rs.million         ---------------- ----------------     Current tax     - -     Deferred tax charge     1,056 1,260           ---------------- ----------------           1,056 1,260     No income tax is payable for the year in view of tax losses available for carry forward. At 31 December 1999, tax losses available for carry forward amounted to approximately Rs. 15,000 million   ---------------- ----------------

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Notes to the Financial Statements                               Page   1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

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