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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
17. Investments in subsidiaries
|
Company |
|
2008 |
2007 |
| Unlisted shares |
|
|
| Opening net book amount |
7,782 |
7,032 |
| Additions |
2,390 |
750 |
| Closing net book amount |
10,172 |
7,782 |
|
|
|
| |
|
|
| Advance against investments |
|
|
| SLT Publications (Pvt) Limited [See Note (d) below] |
30 |
– |
| |
|
|
Details of the subsidiary companies in which the Company had control as at 31 December are set out below:
2008 2007
| Name of company |
Investment
Rs. million |
Company
holding % |
Investment
Rs. million |
Company
holding % |
Sri Lanka Telecom (Services) Limited
[See Note (a) below] |
25 |
100 |
25 |
100 |
| Mobitel (Pvt) Limited [See Note (b) below] |
9,822 |
100 |
7,722 |
100 |
| SLT Hong Kong Limited [See Note (c) below] |
36 |
100 |
35 |
100 |
| SLT Publications (Pvt) Limited [See Note (d) below] |
20 |
100 |
– |
– |
SLT Manpower Solutions (Pvt) Limited
[See Note (e) below] |
1 |
100 |
– |
– |
| SLT VisionCom (Pvt) Limited [See Note (f) below] |
100 |
100 |
– |
– |
| Sky Network (Pvt) Limited [See Note (g) below] |
68 |
75 |
– |
– |
| |
10,172 |
|
7,782 |
|
| |
|
|
|
|
(a) This investment in subsidiary company consists of 2,500,000 shares representing a 100% holding of the issued stated capital of Sri Lanka Telecom (Services) Limited.
(b) The Company owns 119,238,240 shares representing 100% of the issued ordinary share capital of Mobitel (Pvt) Limited. At 31 December 2007, the Company held 575,000,000 12% cumulative and redeemable preference shares of Mobitel (Pvt) Limited with a value of Rs. 10 per share. Additions during 2008 comprise the capital infusion of Rs. 1 billion in 12% cumulative and redeemable preference shares and Rs. 1.1 billion in 14% cumulative and redeemable preference shares of Mobitel (Pvt) Limited. The preference dividend ranks above ordinary dividends.
At 31 December 2008, preference dividends amounting to Rs. 1,318 million were in arrears
(31 December 2007: Rs. 956 million). No accrual has been made in the Company’s financial statements.
(c) This investment in subsidiary company consists of 2,500,000 shares representing a 100% holding of the issued stated capital of SLT Hong Kong Limited.
(d) This investment in subsidiary company consists of 2,000,000 shares representing a 100% holding of the issued stated capital of SLT Publications (Pvt) Limited.
Advance against investments wholly consists of Rs. 30 million paid by the Company to acquire the ordinary shares of SLT Publications (Pvt) Limited and shares are yet to be issued to the Company.
(e) This investment in subsidiary company consists of 50,000 shares representing a 100% holding of the issued stated capital of SLT Manpower Solutions (Pvt) Limited.
(f) This investment in subsidiary company consists of 10,000,000 shares representing a 100% holding of the issued stated capital of SLT VisionCom (Pvt) Limited.
(g) This investment in subsidiary company consists of 71,251 shares representing a 75% holding of the issued stated capital and 6 million 12% cumulative and redeemable preference shares of Sky Network (Pvt) Limited.
All the subsidiaries except for Mobitel (Pvt) Limited and SLT Hong Kong Limited are audited by PricewaterhouseCoopers.
18. Non-Current Receivables
| |
Group |
Company |
|
2008 |
2007 |
2008 |
2007 |
| Employee loans [See Note (a) below] |
1,572 |
1,268 |
1,572 |
1,268 |
| |
|
|
|
|
(a) Employee loans are repayable in equal monthly instalments over the loan period not exceeding six years. The amount shown as a non-current receivable represents staff loan instalments falling due after 1 January 2010.
(b) The weighted average interest rates on staff loans are between 3% and 7% (2007 - 3% and 7%).
19. Inventories
Inventories consist of engineering stores, consumables, office stationery and hardware and are stated net of provisions for slow-moving and obsolete items.
20. trade and other Receivables
|
Group |
Company |
|
2008 |
2007 |
2008 |
2007 |
| Domestic trade receivables |
13.562 |
13,081 |
11,507 |
10,541 |
| CDMA instalment debtors |
– |
340 |
– |
340 |
| Foreign trade receivables |
2,958 |
2,991 |
2,958 |
2,991 |
|
16,520 |
16,412 |
14,465 |
13,872 |
| Less: Provision for bad and doubtful receivables |
(7,552) |
(7,712) |
(6,957) |
(6,135) |
| Less: Interest/revenue in suspense |
(19) |
(104) |
– |
– |
| Trade receivables - net |
8,949 |
8,596 |
7,508 |
7,737 |
| Amount due from subsidiaries [Note 35 (g)] |
– |
– |
2,299 |
1,650 |
| Amount due from related companies [Note 35 (g)] |
139 |
– |
139 |
– |
| Advances and prepayments [See Note (a) below] |
592 |
212 |
98 |
144 |
| Employee loans |
376 |
324 |
376 |
324 |
| Other receivables [See Note (b) below] |
1,004 |
806 |
359 |
209 |
| Amounts due within one year |
11,060 |
9,938 |
10,779 |
10,064 |
| |
|
|
|
|
(a) Advances and prepayments of the Company mainly consist of advances on purchases of
Rs. 56 million (2007 - Rs. 89 million) and payments for software maintenance of Rs. 30 million
(2007 - Rs. 37 million). Advances and prepayments of the Group mainly consist of advances on purchases of Rs. 549 million (2007 - Rs. 150 million) and payments for software maintenance of
Rs. 30 million (2007 - Rs. 37 million).
(b) Other receivables of the Company mainly consist of interest receivable of Rs. 280 million
(2007 - Rs. 165 million), refundable deposits of Rs. 77 million (2007 - Rs. 42 million) and dishonoured cheques of Rs. 2 million (2007 - Rs. 2 million). Other receivables of the Group mainly consist of interest receivable of Rs. 281 million (2007 - Rs. 165 million), refundable deposits of Rs. 138 million
(2007 - Rs. 82 million), dishonoured cheques of Rs 2 million (2007 - Rs. 7 million) and VAT receivable of Rs 362 million (2007 - Rs. 428 million).
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