DIPPED PRODUCTS PLC / ANNUAL REPORT 2008—2009

Notes to the Financial Statements
6. Income tax expense / (release)
Consolidated
2009
Rs ‘000
2008
Rs ‘000
Company
2009
Rs ‘000
2008
Rs ‘000
Income tax on current year profits 103,746 84,065 3,990 2,913
(Over)/under provision in respect of previous years 49 - 108 -
Irrecoverable economic service charge 141 1,255 - -
Write back of ESC previously written-off (4,576) (23,984) - (4,107)
99,360 61,336 4,098 (1,194)
Share of associate company income tax - 10,711 - -
Origination and reversal of temporary differences (2,394) 18,286 (9,659) (7,405)
Withholding tax on dividends 16,743 10,293 - -
Reconciliation of accounting profit to income tax expense
113,709 100,626 (5,561) (8,599)
Consolidated
2009
Rs ‘000
2008
Rs ‘000
Company
2009
Rs ‘000
2008
Rs ‘000
Profit before tax 616,437 615,969 298,694 203,995
Share of (profit)/loss of associate 381 (37,491) - -
Intra-group eliminations 476,097 258,342 - -
1,092,915 836,820 298,694 203,995
Disallowable expenses 504,494 651,774 126,864 165,760
Tax deductible expenses (642,316) (407,870) (32,401) (11,334)
Tax exempt income (905,362) (1,004,402) (381,920) (336,975)
Tax loss b/f (1,113,943) (573,050) - -
Adjustments for tax loss b/f (271,702) (178,974) - -
Tax loss c/f 1,673,931 1,113,943 - -
Taxable income 338,017 438,241 11,237 21,446
Income tax @ 35% 20,162 13,019 3,933 1,059
Income tax @ 33% - 55,586 - -
Income tax @ 27.5% 53,401 - - -
Income tax @ 15% 12,933 - - -
Income tax @ 10% - 1,842 - 1,842
Income tax at other tax rates 16,808 13,363 - -
Social responsibility levy 442 255 57 12
Income tax on current year profits 103,746 84,065 3,990 2,913
Dipped Products PLC., and Venigros (Pvt) Ltd., have entered into an agreement with the Board of Investment of Sri Lanka
(BOI) and have been granted a ten-year tax holiday on its business activity as “ Thrust Industries “, up to March 31,2009.
Similarly Grossart (Pvt) Ltd., Hanwella Rubber Products Ltd., and Texnil (Pvt) Ltd., have been granted a ten-year tax holiday
on its business activity as “ Thrust Industries “ up to March 31,2010, March 31, 2011 and March 31,2013 respectively.
Neoprex (Pvt) Ltd., has completed ten-year tax holiday period on March 31,2008 . Feltex (Pvt) Ltd., has entered in to an
agreement with BOI and has been granted a five-year tax holiday on its business activities from the year of making profits
or any year of assessment not later than two years reckoned from the date of commencement of commercial operations
or production whichever is earlier. Accordingly, tax holiday period had been commenced in 2006/2007 and Feltex (Pvt)
Ltd., enjoys a five-year tax holiday on its business activity as “Thrust Industries”, up to March 31, 2011.
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