(b) The investment in the Associate Company represents
a 40% shareholding (22,170,640 ordinary shares of
Rs. 10 each) in a cellular
telephone company, Mobitel (Private) Limited at
31 December 1999. Of the investment in Mobitel (Private)
Limited 15,170,640
ordinary shares were initially allotted, in consideration
of SLTL signing a Joint Venture Agreement with Telstra
Holdings
(Pty) Limited, Australia and discontinuing a Build
Own Transfer (BOT) Agreement they had entered into
in 1992. For
the purposes of preparing these financial statements
this investment of 15,170,640 shares was valued
at 40% of the Net Assets
of Mobitel (Private) Limited as at 30 June 1996
(the date on which Mobitel (Private) Limited effected
such issue of shares
in its accounts), according to its audited accounts
at that date. As at that date the 15,170,640 ordinary
shares represented
40% of the issued share capital of Mobitel (Private)
Limited and its value was Rs. 188 million. Since
SLTL did not
pay cash for the 15,170,640 ordinary shares, the
consideration was credited to capital reserve (note
21).
In
1996, Mobitel (Private) Limited increased its issued
share capital and SLTL made a cash investment of
Rs. 70 million in another
7,000,000 ordinary shares of Rs. 10 each, so as
to maintain a 40% shareholding in Mobitel (Private)
Limited.
The
investment in others represent unlisted investments
in Intelsat and Inmarsat, the international satellite
consortia..
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