| |
| Notes
to the Financial Statements |
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|
The
Government has guaranteed third party loans amounting
to Rs. 10,978 million (1998 - Rs. 9,841 million).
Total
value of loans that have neither been guaranteed nor secured
is Rs. 6,440 million (1998 - Rs. 316 million). All bank
overdrafts are unsecured.
The
majority of the loans require SLTL, among other matters,
to submit audited financial statements to the lenders
within stated periods of the calendar
year-end, and to maintain adequate accounting records
in accordance with generally accepted accounting
practice. SLTL has not complied with some of these requirements.
However, the Directors believe that the lenders were
aware of the likely shortcomings in SLTL’s accounting
records when signing the loan agreements, and have not
notified SLTL of any breach. The Directors
do not believe that the lenders will materially alter
any of the terms of these loans to SLTL’s detriment.
The
Directors believe the Company will have sufficient finances
available to meet its present commitments, either from
the renewal of its current facilities
or from the negotiation of new facilities.
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|
|
| |
15.
Deferred Income Taxes |
|
|
|
|
| |
|
|
|
|
|
|
| |
Deferred
income taxes are calculated on all temporary differences
under the liability method using a principal tax
rate of 35% (1998 - 35%).
The
movement in the deferred income tax account is
as follows:
|
|
| |
|
Group
|
Company
|
|
| |
|
---------------- |
---------------- |
---------------- |
---------------- |
|
|
|
1999 |
1998 |
1999 |
1998 |
|
| |
|
Rs.million |
Rs.million |
Rs.million |
Rs.million |
|
| |
|
---------------- |
---------------- |
---------------- |
---------------- |
|
| |
At
beginning of year
|
5,131 |
3,871 |
5,131
|
3,871
|
|
| |
Income
statement charge
|
1,057
|
1,260
|
1,056
|
1,260
|
|
| |
|
---------------- |
---------------- |
---------------- |
---------------- |
|
| |
At
end of year
|
6,188
|
5,131
|
6,187
|
5,131
|
|
| |
|
---------------- |
---------------- |
---------------- |
---------------- |
|
| |
16.
Deferred Income
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
The
deferred income represents the deferred line connection
charges, net of amounts released equally to the income
statement over a period of 15 years. |
|
| |
|
|
|
Group/Company
|
|
| |
|
|
|
---------------- |
---------------- |
|
| |
|
|
|
1999 |
1998 |
|
| |
|
|
|
Rs.million |
Rs.million |
|
| |
|
|
|
---------------- |
---------------- |
|
| |
Balance
at 1 January |
|
|
4,748
|
3,294
|
|
| |
Connection
fees for the year |
|
|
1,719
|
1,933
|
|
| |
Amount
amortised during the year |
|
|
(537)
|
(479)
|
|
| |
|
|
|
---------------- |
---------------- |
|
| |
Balance
at 31 December |
|
|
5,930
|
4,748
|
|
| |
|
|
|
---------------- |
---------------- |
|
| |
Amortisations
fall due as follows: |
|
|
|
|
|
| |
Within
one year |
|
|
530
|
422
|
|
| |
After
one year |
|
|
5,400
|
4,326
|
|
| |
|
|
|
---------------- |
---------------- |
|
| |
|
|
|
5,930
|
4,748
|
|
| |
|
|
|
---------------- |
---------------- |
|
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|
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On-Line
Annual Report by Smart Media Productions
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