11. interest income
|
Group |
Company |
| Interest income from |
2008 |
2007
|
2008
|
2007
|
- bank deposits
|
919
|
953
|
848
|
906
|
- financial assets
|
262
|
256
|
262
|
256
|
- staff loans
|
98
|
77
|
98
|
77
|
|
1,279
|
1,286
|
1,208
|
1,239
|
| |
|
|
|
|
12. Taxation
The charge for taxation is made up as follows:
|
Group |
Company |
|
2008 |
2007 |
2008 |
2007 |
| Income tax charge |
3,873 |
4,495 |
3,851 |
4,479 |
| Release of deferred tax liabilities (Note 23) |
(1,680) |
(1,736) |
(1,680) |
(1,736) |
|
2,193 |
2,759 |
2,171 |
2,743 |
| |
|
|
|
|
The tax charge differs from the theoretical amount that would arise using the basic tax rate on the accounting profit of the Company and Group as follows:
|
Group |
Company |
|
2008 |
2007 |
2008 |
2007 |
| Profit before tax |
9,560 |
8,399 |
8,772 |
8,131 |
| Tax calculated at a tax rate of 35% (2007 - 33 1/3%) |
3,346 |
2,799 |
3,070 |
2,710 |
| Tax effect of income not subject to tax |
(5,389) |
(2,617) |
(1,159) |
(283) |
| Expenses not deductible for tax purposes |
4,236 |
2,445 |
260 |
184 |
| Effect of changes in tax rates |
– |
132 |
– |
132 |
| Tax charge |
2,193 |
2,759 |
2,171 |
2,743 |
| |
|
|
|
|
Current income tax charges of the Group/Company is made up as follows:
|
Group |
Company |
|
2008 |
2007 |
2008 |
2007 |
| Sri Lanka Telecom PLC |
3,851 |
4,479 |
3,851 |
4,479 |
| Mobitel (Pvt) Limited |
19 |
16 |
– |
– |
| SLT Manpower Solutions (Pvt) Limited |
3 |
– |
– |
– |
|
3,873 |
4,495 |
3,851 |
4,479 |
|
|
|
|
|
In terms of agreement entered into with the Board of Investment of Sri Lanka, the profit earned from operating a cellular mobile service by Mobitel (Pvt) Limited is exempt from income tax for a period of
15 years commencing from 1 June 1994. The tax charge of Mobitel (Pvt) Limited for the year wholly consists of income tax on other income.
In terms of the provisions of Inland Revenue Act No. 10 of 2006, as amended, the following companies are liable to income tax. However, in view of the adjusted tax losses brought forward and incurred during the year, such companies were not liable for income tax for the year ended 31 December
2008. The adjusted tax losses available to carry forward as at 31 December 2008 are as follows:
| Adjusted tax losses
available for carry
forward as at 31 December |
|
|
2008 |
2007 |
| Sky Network (Pvt) Limited |
16 |
8 |
| SLT VisionCom (Pvt) Limited |
42 |
– |
| SLT Publications (Pvt) Limited |
15 |
– |
| Sri Lanka Telecom (Services) Limited |
3 |
2 |
| SLT Hong Kong Limited |
21 |
25 |
|
97 |
35 |
|
|
|
13. Earnings per Share
The basic earnings per share are calculated by dividing the net profit attributable to equityholders by the weighted average number of ordinary shares in issue during the year.
|
Group |
Company |
|
2008 |
2007 |
2008 |
2007 |
| Net profit attributable to equityholders (Rs. million) |
7,370 |
5,640 |
6,601 |
5,388 |
Weighted average number of ordinary shares
in issue (million) |
1,805 |
1,805 |
1,805 |
1,805 |
| Basic earnings per share (Rs.) |
4.08 |
3.12 |
3.66 |
2.99 |
| |
|
|
|
|
|
|
|
|
|
14. Dividends
In respect of 2007, a first and final dividend of Rs. 1/- (2006 - Rs. 1/-) per share amounting to
Rs. 1,804,860,000/- (2006 - Rs. 1,804,860,000/-) was paid during the current year.
The Board has recommended a first and final dividend of Rs. 1/- per share amounting to Rs. 1,804,860,000/- for the year ended 31 December 2008. This is to be approved by the shareholders at the Annual General Meeting to be held on 27 March 2009. As stipulated by Sri Lanka Accounting Standard No. 12 (Revised) - Events After The Balance Sheet Date, the proposed dividend is not recognised as a liability as at
31 December 2008.
|
