enl commercial limited annual report 2011 - Investing In Africa

Notes to the Financial Statements
Year ended June 30, 2011
17 BORROWINGS (continued)
(f)
(g)
The exposure of the group’s borrowings to interest rate changes and the contractual repricing dates
are less than 6 months.
The carrying amounts of borrowings are denominated in the following currencies.
THE GROUP
THE COMPANY
2011 2010 2011 2010
Rs’000 Rs’000 Rs’000 Rs’000
Rupees 732,956 470,547 234,719 179,578
US Dollar 20,951 174 - -
EURO 10,284 - - -
764,191 470,721 234,719 179,578
18 DEFERRED INCOME TAX
(a) Deferred income tax is calculated on all temporary differences under the liability method at 15% (2010:
15%).
Deferred tax assets are recognised for tax losses carried forward only to the extent that realisation of
the related tax benefit is probable. The recoverability of tax losses is limited to a period of five years
from the relevant year of assessment.
At the end of the reporting period, the group had unused tax losses of Rs. 53m (2010: Rs.108m)
available for offset against future profits. No deferred tax asset has been recognised in respect of such
losses due to the unpredictability of future profit streams.
There is a legally enforceable right to offset deferred tax asset against deferred tax liabilities when the
deferred income taxes relate to the same fiscal authority on the same entity.
The following amounts are shown on the statement of financial position:
THE GROUP
2011 2010
Rs’000 Rs’000
Deferred tax liabilities 33,462 4,784
Deferred tax assets (5,827) (1,477)
27,635 3,307
(b)
The movement in the deferred income tax account is as follows:
THE GROUP
2011 2010
Rs’000 Rs’000
At July 1, 3,307 3,721
Acquisition through business combination 2,593 -
Credited to statement of comprehensive income (685) (414)
Charged to revaluation surplus 22,420 -
At June 30, 27,635 3,307
ENL Commercial Limited
Annual Report 2011
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