To
the Members of Sri Lanka Telecom Limited
We
have audited the balance sheet of Sri Lanka
Telecom Limited as at 31 December 1999, the
consolidated balance sheet of the Company
and its Subsidiary as at that date, and the
related statements of income and cash flows
for the year then ended, together with the
accounting policies and notes thereon appearing
on pages 4 to 28.
Respective
Responsibilities of Directors and Auditors
The
Directors are responsible for preparing and
presenting these financial statements in accordance
with the Sri Lanka Accounting Standards. Our
responsibility is to express an opinion on
these financial statements, based on our audit.
Basis of Audit
Except
as discussed in paragraph 4 below, we conducted
our audit in accordance with Sri Lanka Auditing
Standards which require that we plan and perform
the audit to obtain reasonable assurance about
whether the financial statements are free
of material misstatements. An audit also includes
examining, on a test basis, evidence supporting
the amounts and disclosures in the said financial
statements, assessing the accounting principles
used and significant estimates made by the
Directors, as well as evaluating the overall
presentation of the financial statements and
determining whether the said financial statements
are prepared and presented in accordance with
Sri Lanka Accounting Standards. We therefore
believe that our audit provides a reasonable
basis for our opinion.
Limitation
of Scope
Information
relating to the age of amounts due in respect
of telephony services provided to Government
departments and other Governmental institutions,
and confirmation of those balances, were not
available. Further, these debts had not been
settled by 31 October 1997 as specified in
the shareholders agreement. We are therefore
unable to state whether Rs. 281 million shown
as a receivable from the Government is fairly
stated.
Opinion
In
our opinion, except for the effects of such
adjustments, if any, as might have been determined
to be necessary had we been able to satisfy
ourselves as to the matter referred to in
paragraph 4, the said balance sheet and the
related statements of income and cash flows
and the accounting policies and notes thereto,
have been prepared and presented in accordance
with Sri Lanka Accounting Standards, provide
the information required by the Companies
Act, No. 17 of 1982 and give a true and fair
view of the Company’s state of affairs as
at 31 December 1999 and the results of its
operations and its cash flows for the year
then ended.
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