Annual Report.CDR - Colombo Stock Exchange

NOTES TO THE FINANCIAL STATEMENTS (CONTD.)
7.1.Reconciliation of Accounting Profit/(Loss) with taxable income
2009/2010 2008/2009
Rs.
Rs.
Profit/(Loss) before tax (4,285,937,282) (2,563,400,716)
Capital portion of Lease Rentals 362,693,761 779,526,438
Disallowable Expenses 2,601,109,432 694,816,213
Tax deductible Expenses (399,770,444) (669,117,235)
Tax Exempt Income (209,433,874) (71,335,944)
Taxable other Income (123,117,254) (77,348,125)
Interest Claimed under Section 32 (44,074,913) (229,956,062)
Taxable Income/(Loss) (2,098,530,574) (2,136,815,431)
Income Tax Nil Nil
Social Responsibility Levy Nil Nil
Nil
Nil
Movement of Tax Losses
Tax loss Brought forward (2,923,735,982) (786,920,551)
Tax loss during the year (2,098,530,574) (2,136,815,431)
Tax loss carried forward (5,022,266,556) (2,923,735,982)
2009/2010 2008/2009
7.2 Deferred Tax Asset Rs. Rs.
Lease Stock - Vehicles (71,893,916) 15,639,242
Lease Stock - Property - -
Property Plant & Equipment (317,366,851) (399,686,857)
Provision for fall in value of Investments 106,858,729 74,577,788
Provision for Doubtful Receivables on Related Companies 485,368,778 70,000,000
Provision for Loan Losses 575,888,730 365,716,787
Assets purchased under Finance Leases (13,623,239) (36,242,167)
General Provision - 3,082,400
Unclaimed Tax Losses 1,023,307,594 275,422,193
1,788,539,825 368,509,386
Additional deferred tax asset not recognized (Note 7.3) (1,597,314,540) (177,284,101)
191,225,285 191,225,285
7.3 The above additional differed tax asset of Rs.1,597,314,540 for the year ended 31st March 2010
(Rs.177,284,101/- as at 31st March 2009) has not been recognized because of the view that taxable
profit will not be available in the foreseable future for which deductible temporary differences can
be utilized other than Rs.191,225,285/- recognised as at 31st March 2008.
T H E F I N A N C E C O . P L C - A N N U A L R E P O RT 2 0 0 9 - 2 0 1 0
33