Annual Report 2012 - Dialog
Annual Report 2012 - Dialog
Annual Report 2012 - Dialog
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(c) Inquiry by Sri Lanka Customs<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong> l <strong>Dialog</strong> Axiata PLC l 121<br />
In August 2008, Sri Lanka Customs (SLC) detained a shipment of CDMA Customer Premises Equipment (CPE), belonging<br />
DBN and commenced an investigation into the eligibility of these items falling under the duty exemptions granted under the<br />
terms and conditions of the agreement with the Board of Investment of Sri Lanka. The shipment was cleared by submitting<br />
bank guarantees and thereafter shipments of CPE were cleared by paying duty ‘under protest’. The main contention of SLC<br />
was that the CDMA CPE could not be considered a fixed asset. Having completed the investigation, SLC commenced an<br />
inquiry into this matter on 30 January 2009 and this inquiry is still in progress.<br />
No assessment has been made as at the date of the statement of financial position. The Directors are of the opinion that no<br />
material liability would result from the inquiry and accordingly no provision has been made in the financial statements.<br />
(d) Guarantees<br />
Guarantees given by the Company as at 31 December <strong>2012</strong> is amounting to Rs. 421,205,212.<br />
35 Commitments<br />
(a) Capital commitments<br />
Capital expenditure contracted for at the statement of financial position date but not yet incurred:<br />
Group Company<br />
<strong>2012</strong> 2011 <strong>2012</strong> 2011<br />
Supply of telecommunication equipment 10,861,284 1,349,257 8,200,687 948,418<br />
(b) Financial commitments<br />
The Group has the following annual commitments;<br />
Currency Amount (‘000)<br />
<strong>Annual</strong> fee to the Board of Investment of Sri Lanka LKR 1,424<br />
Site rental LKR 2,020,916<br />
<strong>Annual</strong> maintenance contracts LKR 1,645,714<br />
Rental to Axiata Lanka (Private) Limited LKR 7,920<br />
(c) Other commitments<br />
There were no other material financial commitments outstanding at the end of the reporting period.