Annual Report 2009/2010 - Colombo Stock Exchange

ANNUAL REPORT OF THE BOARD OF DIRECTORS ON THE
AFFAIRS OF THE COMPANY
SOLVENCY TEST
Taking into account the said distribution, the Directors are satisfied that the Company would meet the solvency test
requirement under Section 56(2) of the Companies Act No.07 of 2007 immediately after the distribution. The
Company’s Auditors, KPMG Ford Rhodes Thornton & Co. has issued a Certificate of Solvency confirming the same.
Solvency tests have been carried out by the Board of Directors before the payment of preference dividends in
accordance with the Companies Act No. 7 of 2007.
STATED CAPITAL
The Stated Capital of the Company as at 31st March 2010 was Rs.2,537,801,310/- (2009 - Rs.1,337,801,310/-)
consisting of 80,000,000 Ordinary shares and 35,000,000 Redeemable Cumulative Preference shares.
The Company made a Rights Issue of 30,000,000 fully paid Ordinary Shares on the basis of Three (03) fully paid
Ordinary Shares for every Five (05) Ordinary Shares held as at 28th August 2009 at Rs. 40/- each.
The Rights Issue was fully subscribed and Rs.1,200,000,000/- was received from the existing shareholders.
Accordingly the Stated Capital of the Company increased to Rs.2,537,801,310/-.
Annual Report of the Board of Directors on the Affairs of the Company
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