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Notes to the Financial Statements
 
       
    Sri Lanka Insurance Corporation Limited  
       
    (c) Insurance premium paid during the year on policies relating to cash in transit and motor vehicles amounted to Rs. 1.8     million and Rs 3.5 million, respectively.  
       
    (iii) Mr. S. Anan who is a Director of the Company is also the Vice President of NTT Communications Corporation with which     the following transactions took place during the year:  
       
    NTT Communications Corporation  
       
    As per the shareholders’ agreement with NTT, which owns 35% of the issued share capital of SLTL, the following charges have been borne by the Company during the year:  
       
    Remuneration for experts seconded to SLTL       Rs. 113 million
Expenditure for experts seconded to SLTL          Rs. 68  million
Management fees payable to NTT                      Rs. 270 million

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                                                                           Rs.451  million  
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    Mr. R.D. Somasiri who was a Director (resigned on 14 October 1999) of the Company was also a Director of Mobitel (Private) Limited and Sri Lanka Telecom (Services) Limited. Mr. S. Hashimoto, the Chief Executive Officer of the Company and Mr. N. Asami, a Director of the Company, are also Directors of Mobitel (Private) Limited and Sri Lanka Telecom (Services) Limited. Transactions with these companies are stated above.  
       
    27. Related Party Transactions  
       
    SLTL provides telecommunication services to the Government of Sri Lanka, in theory on terms identical with those applicable to its other customers. However, the amounts due from the Government for these services have been outstanding for long periods. The policy to disconnect telephones for late payment is not uniformly applied to Government departments.  
       
    Related party transactions should be read in conjunction with note 26 to the financial statements.  
       
    28. Post Balance Sheet Events  
       
   

The Company issued to the public on March 2000, 1,500,000 unsecured redeemable 5 year debentures (2000/2005) of Rs. 1,000 each of three (3) types, which rank equal and pari passu to each other differing only with respect to interest coupons and the frequency at which interest payments are made. The descriptions of the three types of debentures are as follows:

Interest rate of 14% p.a. payable quarterly.

Interest rate of 14.5% p.a. payable annually.

Floating interest rate of 1.25% p.a.above the simple average of 6 months weighted average Treasury Bill rate.

 
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Notes to the Financial Statements                              
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