| (All amounts in Sri Lanka Rupees millions) |
 |
| |
Group |
Company |
| |
2003 |
2002 |
2003 |
2002 |
|
| Current (due within one year) |
|
|
|
|
| Bank overdrafts |
– |
1 |
– |
– |
| Government borrowings |
2,353 |
2,626 |
2,353 |
2,626 |
| Bank borrowings and others |
4,830 |
3,938 |
2,486 |
3,696 |
| Debentures |
375 |
375 |
375 |
375 |
| |
---------
7,558
====== |
---------
6,940
====== |
---------
5,214
====== |
---------
6,697
====== |
| Non-current (due after one
year) |
|
|
|
|
| Government borrowings |
8,709 |
11,264 |
8,709 |
11,264 |
| Debentures [Note (a)] |
375 |
750 |
375 |
750 |
| Bank borrowings and others |
4,439 |
6,972 |
3,192 |
6,704 |
| |
13,523 |
18,986 |
12,276 |
18,718 |
| Total borrowings |
---------
21,081
====== |
---------
25,926
====== |
---------
17,490
====== |
---------
25,415
====== |
| |
|
| (a) |
The redemption of debentures will be in 4 equal annual instalments,
commencing from 23 March 2002, two years from the initial date
of allotment.
The interest rate exposure of the borrowings of the Company
was as follows:
|
| |
|
| |
|
| |
Group |
Company |
| |
2003 |
2002 |
2003 |
2002 |
|
| Total borrowings |
|
|
|
|
| - at fixed rates |
13,242 |
18,445 |
13,216 |
18,445 |
| - at floating rates |
7,839 |
7,481 |
4,274 |
6,970 |
| |
---------
21,081
====== |
---------
25,926
====== |
---------
17,490
====== |
---------
25,415
====== |
|
| |
|
| |
The currency exposure of the borrowings of the
Company at the Balance Sheet date was as follows: |
| |
|
| |
|
| |
Group |
Company |
| |
2003 |
2002 |
2003 |
2002 |
|
| Foreign currency |
5,678 |
9,325 |
5,678 |
9,325 |
| Local currency |
15,403 |
16,601 |
11,812 |
16,090 |
| |
---------
21,081
====== |
---------
25,926
====== |
---------
17,490
====== |
---------
25,415
====== |
| |
|
|
|
|
|
|
| |
Group/Company |
| |
2003 |
2002 |
|
| Average effective interest
rates |
|
|
| - Bank overdrafts |
– |
14.5% |
| - Domestic bank borrowings |
14% |
14.0% |
| - Foreign bank borrowings |
5.56% |
5.7% |
| - Government borrowings |
12.74% |
13.0% |
| Debentures |
|
|
| - Fixed (annually) |
14.50% |
14.5% |
| - Fixed (quarterly) |
14.00% |
14.0% |
| - Floating |
13% - 16% |
13% - 16% |
| |
| Maturity of non-current borrowings: |
|
| |
Group |
Company |
| |
2003 |
2002 |
2003 |
2002 |
|
| Between 1 and 2 years |
8,517 |
9,203 |
7,270 |
8,960 |
| Between 3 and 5 years |
3,684 |
6,224 |
3,684 |
6,199 |
| Over 5 years |
1,322 |
3,559 |
1,322 |
3,559 |
| |
---------
13,523
====== |
---------
18,986
====== |
---------
12,276
====== |
---------
18,718
====== |
| |
|
| (b) |
The Government borrows amounts in foreign currencies to fund
the development of SLTL’s network. These amounts have
been re-lent to SLTL with shorter repayment periods than the
underlying loan. The loan balance as at 31 December 2003 is
Rs. 11,061 million (2002 - Rs. 13,335 million). Exchange fluctuations
on repayments of these loans are borne by the Government. |
| |
|
| (c) |
SLTL bears the foreign exchange risk and the related costs
on a loan re-lent by the Government (a loan not among the above
loans), bearing interest at 10% per annum. The loan was fully
repaid during the financial year (2002 - Rs. 554 million). |
| |
|
| (d) |
Certain Government re-lent loans amounting to Rs. 354 million
(2002 - Rs. 1,086 million) have been granted on condition that
at least 25%-30% of the average capital expenditure on the related
projects is funded from funds generated internally. These projects
have been completed as at the Balance Sheet date. |
| |
|
| (e) |
The Government has guaranteed third party loans amounting
to Rs. 5,486 million (2002 - Rs. 8,127 million). Total value
of loans that have neither been guaranteed nor secured is Rs.
115 million (2002 - Rs. 2,062 million). |
| |
|
| (f) |
The majority of the loans require SLTL to submit audited financial
statements among other matters to the lenders within stated
periods of the calendar year end, and to maintain adequate accounting
records in accordance with generally accepted accounting principles. |
| |
|
| (g) |
The Directors believe the Company will have sufficient finances
available to meet its present commitments. |
|
| |
|