Annual Report 2009/10 - Colombo Stock Exchange

Connecting Sri Lanka to Progress
Sierra Cables PLC - Annual Report 2009/10
27
Notes to the Financial Statements
GROUP
COMPANY
For the year ended 31 March 2010 2009 2010 2009
Rs. Rs. Rs. Rs.
5. Income Tax Expenses
The charge for the year is made up as follows:
Income Tax on Current year's profit 22,974,440 14,402,165 3,822,996 7,242,819
Provision for Deemed Dividend Tax - 2,616,868 - 1,976,746
WHT on Dividend 637,615 3,362,945 - -
Deferred Taxation Charge/(Reversal) 860,763 (308,458) (914,623) (3,277,517)
24,472,818 20,073,520 2,908,373 5,942,048
5.1 Reconciliation between the Accounting Profit and Tax Expense
Accounting Profit before Associate Company's Share of Profit 108,286,675 25,781,080 139,874,390 45,154,887
Adjustments on Consolidation 94,485,285 30,266,508 - -
Aggregate Disallowed Income (163,211,240) (73,080,264) (155,183,514) (63,104,496)
Aggregate Disallowed Expenses 69,531,270 52,435,213 5,475,000 513,487
Aggregate Allowable Expenses (50,254,507) (34,216,525) - -
Profit/(Loss) from Business 58,837,483 1,186,012 (9,834,124) (17,436,122)
Losses Incurred for the Year 10,580,941 22,327,541 9,834,124 17,436,122
Income from Other Sources 25,284,109 42,044,485 17,384,014 32,934,378
Total Statutory Income 94,702,533 65,558,038 17,384,014 32,934,378
Tax Loss Claimed (35,799,671) (22,945,313) (6,084,405) (11,527,032)
Taxable Income 58,902,862 42,612,725 11,299,609 21,407,346
Tax on Exports @ 15% 334,879 276,254 - -
Tax on Balance Income @ 35% 22,300,038 13,913,071 3,766,499 7,135,782
22,634,917 14,189,325 3,766,499 7,135,782
Social Responsibility Levy @ 1.5% 339,524 212,840 56,497 107,037
22,974,440 14,402,165 3,822,996 7,242,819
5.2 In terms of sec. 52 of Inland Revenue Act No.10 of 2006, the profit from exports of Alucop Cables Limited is taxable at 15% and others
profits are tax at 35%.
5.3 Under the provision of Inland Revenue Act No.10 of 2006, Sierra Cables PLC is liable to income tax at 33 1/3 % of the adjustable
taxable profit for a period of 5 years commencing from the year of listing the company upto 2010/11 and there after at normal rates and
all other companies within the group are liable to income tax at 35% of the adjusted taxable profit for the year.