21. Cash and Cash Equivalents
|
Group |
Company |
|
2008 |
2007 |
2008 |
2007 |
| Cash at bank and in hand |
378 |
393 |
5 |
79 |
| Cash in transit |
15 |
– |
– |
– |
| Restricted at bank [See Note (a) below] |
10,199 |
7,244 |
10,199 |
7,244 |
| Short-term deposits [See Note (b) below] |
8,154 |
9,558 |
7,767 |
9,366 |
|
18,746 |
17,195 |
17,971 |
16,689 |
| |
|
|
|
|
(a) The restricted cash balance represents a deposit of Sri Lankan Rupees 236 million (2007 - Rs. 204 million) at People's Bank of Sri Lanka representing the sinking fund investment for the insurance reserve and a sinking fund amounting to Rs. 9,963 million (2007 - Rs. 7,039 million) maintained to redeem the
USD 100 million Notes in 2009. The restrictions on these balances are self-imposed.
(b) The interest on short-term bank deposits are on commercial terms. The weighted average effective interest rates on short-term LKR and USD bank deposits were 16.51% (2007 - 15.9%) and 5.18%
(2007 - 5.89%) respectively.
(c) For the purpose of the cash flow statement, the year-end cash and cash equivalents comprise the following:
| |
Group |
Company |
| |
2008 |
2007 |
2008 |
2007 |
| Cash and cash equivalents |
18,746 |
17,195 |
17,971 |
16,689 |
| Bank overdrafts (Note 22) |
(876) |
(275) |
– |
– |
|
17,870 |
16,920 |
17,971 |
16,689 |
|
|
|
|
|
22. Borrowings
|
Group |
Company |
|
2008 |
2007 |
2008 |
2007 |
| Current (due within one year) |
|
|
|
|
| Bank overdrafts (Note 21) |
876 |
275 |
– |
– |
| Government borrowings |
654 |
696 |
654 |
696 |
| USD 100 million Notes |
11,475 |
– |
11,475 |
– |
| Bank borrowings and others |
3,473 |
1,646 |
1,015 |
129 |
| Lease liabilities |
10 |
8 |
10 |
8 |
|
16,488 |
2,625 |
13,154 |
833 |
| Non-current (due after one year) |
|
|
|
|
| Government borrowings |
644 |
1,299 |
644 |
1,299 |
| Bank borrowings and others |
4,548 |
4,405 |
– |
111 |
| USD 100 million Notes |
– |
10,925 |
– |
10,925 |
| Lease liabilities |
36 |
31 |
36 |
31 |
|
5,228 |
16,660 |
680 |
12,366 |
| Total borrowings |
21,716 |
19,285 |
13,834 |
13,199 |
| |
|
|
|
|
(a) The interest rate exposure of the borrowings of the Group and Company was as follows:
| |
Group |
Company |
| |
2008 |
2007 |
2008 |
2007 |
| Total borrowings |
|
|
|
|
| - at fixed rates |
13,417 |
11,481 |
12,457 |
11,206 |
| - at floating rates |
8,299 |
7,804 |
1,377 |
1,993 |
|
21,716 |
19,285 |
13,834 |
13,199 |
| |
|
|
|
|
|
|
|
|
|
The currency exposure of the borrowings of the Group and the Company at the balance sheet date was as follows:
| |
Group |
Company |
| |
2008 |
2007 |
2008 |
2007 |
| Foreign currency |
11,591 |
11,687 |
11,591 |
11,165 |
| Local currency |
10,125 |
7,598 |
2,243 |
2,034 |
|
21,716 |
19,285 |
13,834 |
13,199 |
| |
|
|
|
|
|
|
|
|
|
| |
Group |
Company |
| |
2008 |
2007 |
2008 |
2007 |
| Average effective interest rates: |
|
|
|
|
| - Bank overdrafts |
20.74% |
16.29% |
– |
– |
| - Foreign bank borrowings |
2.9% - 6.4% |
5.31% |
6.4% |
5.31% |
| - Government borrowings |
15.02% |
12.21% |
15.02% |
12.21% |
| - USD 100 million Notes |
6.88% |
6.88% |
6.88% |
6.88% |
| - Bank borrowings |
16% - 19.84% |
15.39% |
16.00% |
– |
| - Lease liabilities |
21% - 25% |
21% - 25% |
21% - 25% |
21% - 25% |
| |
|
|
|
|
|
|
|
|
|
Maturity of non-current borrowings (excluding finance lease liabilities):
| |
Group |
Company |
| |
2008 |
2007 |
2008 |
2007 |
| Between 1 and 2 years |
2,609 |
13,492 |
602 |
12,313 |
| Between 3 and 5 years |
1,846 |
3,137 |
42 |
22 |
| Over 5 years |
737 |
– |
– |
– |
|
5,192 |
16,629 |
644 |
12,335 |
| |
|
|
|
|
Finance lease liabilities - minimum lease payments:
| |
Group |
Company |
| |
2008 |
2007 |
2008 |
2007 |
| Not later than 1 year |
18 |
13 |
18 |
13 |
| Later than 1 year and not later than 5 years |
46 |
44 |
46 |
44 |
|
64 |
57 |
64 |
57 |
| Less: future finance charges on finance leases |
(18) |
(18) |
(18) |
(18) |
| Present value of finance lease liabilities |
46 |
39 |
46 |
39 |
| |
|
|
|
|
Representing lease liabilities:
| |
Group |
Company |
| |
2008 |
2007 |
2008 |
2007 |
| Current |
10 |
8 |
10 |
8 |
| Non-current |
36 |
31 |
36 |
31 |
|
46 |
39 |
46 |
39 |
| |
|
|
|
|
(b) The Government of Sri Lanka had borrowed amounts in foreign currencies to fund the development of the Company’s telecommunication network. These amounts had been re-lent to the Company with shorter repayment periods than the underlying loan. The total borrowings of the Government of Sri Lanka as at 31 December 2008 was Rs 1,298 million (2007 - Rs 1,995 million). The exchange of fluctuations on these loans are borne by the Government of Sri Lanka.
(c) The Government of Sri Lanka has guaranteed third party loans of the Company amounting to
Rs. 116 million (2007 - Rs. 240 million). Total value of borrowings, which consist of USD 100 million Notes, that have neither been guaranteed nor secured by the Government of Sri Lanka is
Rs. 11,475 million (2007 - Rs. 10,925 million).
(d) The loan covenants include submission of audited financial statements to the lenders within specified periods from the financial year end, and to maintain adequate accounting records in accordance with generally accepted accounting principles.
(e) The Directors believe that the Company will have sufficient funds available to meet its present
loan commitments.
(f) Lease liabilities of the Group/Company are effectively secured as rights to the leased assets revert to the lessor in the event of default.
(g) Bank borrowings and bank overdrafts of Mobitel (Pvt) Limited, a subsidiary of the Company,
are secured, interalia, over corporate guarantees given by SLT PLC.
(h) Bank borrowings of Mobitel (Pvt) Limited are secured over guarantees issued by third parties and property, plant & equipment at a value of Rs. 4,298 million. |
