Annual Report 2009/2010 - Colombo Stock Exchange
Annual Report 2009/2010 - Colombo Stock Exchange
Annual Report 2009/2010 - Colombo Stock Exchange
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Fi F n i n a a n n c c i i a l l S t a t e m e n t s<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
For the year ended 31st March<br />
In Rs.'000s<br />
8 INCOME TAX RELEASE<br />
Income tax expense / (release) on other income (Note 8.1)<br />
Economic service charge<br />
Net deferred tax income - (Note 22.1 & Note 22.2)<br />
Total income tax<br />
8.1 Reconciliation of the accounting profit and tax expenses.<br />
Accounting profits before taxation<br />
Aggregate of disallowable expenses<br />
Aggregate of allowable claims<br />
Tax adjusted profit<br />
Less- Exempt operational profit<br />
Exempt interest income<br />
Assessable income<br />
Utilisation of tax loss (Note 8.2.3)<br />
Taxable income<br />
<strong>2010</strong><br />
1,038<br />
2,634<br />
(11,480)<br />
(7,808)<br />
632,695<br />
421,944<br />
(122,453)<br />
932,186<br />
(930,572)<br />
(160)<br />
1,454<br />
(509)<br />
945<br />
<strong>2009</strong><br />
(902)<br />
-<br />
(6,022)<br />
(6,924)<br />
81,889<br />
182,964<br />
(121,250)<br />
143,603<br />
(143,021)<br />
(96)<br />
486<br />
(170)<br />
316<br />
Current tax (Note 8.2.2)<br />
(Over) / under provision in respect of prior years<br />
Social responsibility levy<br />
Total income tax expense / (release)<br />
331<br />
702<br />
5<br />
1,038<br />
110<br />
(1,014)<br />
2<br />
(902)<br />
8.2 Income Tax<br />
8.2.1 The operating profit and income of the Company is exempt from income tax for a period of twelve years,<br />
commencing from 1st of June 1998, in terms of the agreement with the Board of Investment<br />
th<br />
of Sri Lanka under Section 17 of the BOI Law No 4 of 1978.<br />
8.2.2 However, in terms of the Inland Revenue Act No. 10 of 2006 and amendments thereto, the profits &<br />
income from other sources are liable to income tax at the rate of 35% (<strong>2009</strong> - 35%). 1.5% of income tax is<br />
payable as a social responsibility levy (<strong>2009</strong> - 1.5%).<br />
No tax liability arises on interest earned on FCBU deposits as such is exempt from income tax.<br />
8.2.3 The Company has a tax loss of Rs.8,825,328/- as at 31 st March <strong>2010</strong> (<strong>2009</strong> - Rs.9,334,494/-).<br />
Utilisation of the same is restricted to 35% of the statutory income during the year. Any part of loss that cannot be<br />
deducted, can be carried forward indefinitely.<br />
8.2.4 The Company is liable to pay Economic Service Charge at 0.25% of operational turnover and payments<br />
made for the year amounts to Rs.19,509,099/- ( <strong>2009</strong> - 11,402,111/-). Payment made hereunder is available<br />
as income tax credit for a period of 5 years.<br />
36<br />
5
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