|
Notes
to the Financial Statements |
|
The
tax on the Company’s profit before tax differs from the
theoretical amount that would arise using the basic tax
rate of the Company, as follows: |
|
|
|
|
|
|
Group/Company |
|
|
|
|
|
---------------- |
---------------- |
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rs.million |
Rs.million |
|
|
|
|
|
---------------- |
---------------- |
|
|
Net
profit before taxes |
|
|
2,325
|
3,482
|
|
|
|
|
|
---------------- |
---------------- |
|
|
Tax
at 35% |
|
|
814
|
1,219
|
|
|
Expenses
not deductible |
|
|
397
|
65
|
|
|
Income
not subject to tax |
|
|
(155) |
(24) |
|
|
|
|
|
---------------- |
---------------- |
|
|
|
|
|
1,056
|
1,260
|
|
|
|
|
|
---------------- |
---------------- |
|
|
|
|
|
|
|
|
|
Further
information about deferred tax is presented in note
15. |
|
|
|
|
|
|
|
|
|
6.
Prior year Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
As
explained in the Accounting Policy No. 18, the policy
followed by the Company in recording goodwill was
changed during the year. The change in the accounting
policy was treated as a prior year adjustment in accordance
with the recommendation made in Sri Lanka Accounting
Standard No. 10, Net Profit or Loss for the Period,
Fundamental Errors and Changes in Accounting Policies.
The Directors take the view that the proposed treatment
gives a fairer presentation of the results for the
year and assets and liabilities at the balance sheet
date. |
|
|
|
|
|
|
|
|
|
|
|
|
The
impact of this change is set out below: |
|
|
Group/Company
|
|
|
|
|
|
---------------- |
---------------- |
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rs.million |
Rs.million |
|
|
|
|
|
---------------- |
---------------- |
|
|
Increase
in retained profit at 1 January 1998 |
|
|
257 |
259
|
|
|
Increase in retained profit for the year ended 31
December 1998 |
|
688
|
688
|
|
|
|
|
|
---------------- |
---------------- |
|
|
Increase
in retained profit at 1 January 1999 |
|
|
945
|
947
|
|
|
|
|
|
---------------- |
---------------- |
|
|
7.
Earnings per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share is calculated by dividing the net
profit attributable to shareholders by the weighted
average number of ordinary shares in issue during
the year. |
|
|
|
|
|
Company
|
|
|
|
|
|
---------------- |
---------------- |
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rs.million |
Rs.million |
|
|
|
|
|
---------------- |
---------------- |
|
|
Net
profit attributable to shareholders |
|
1,269
|
2,222
|
|
|
Weighted
average number of ordinary shares in issue (million) |
|
1,805
|
1,805
|
|
|
Basic
earnings per share |
|
|
0.70
|
1.23
|
|
|
|
|
|
---------------- |
---------------- |
|
|
|
|
On-Line
Annual Report by Smart Media Productions
|
|