DIPPED PRODUCTS PLC / ANNUAL REPORT 2008—2009

Notes to the Financial Statements
After completion of tax exemption period, the business income of Dipped Products PLC., Venigros (Pvt) Ltd., Grossart
(Pvt) Ltd., Neoprex (Pvt) Ltd., Texnil (Pvt) Ltd., would be liable to income tax at a concessionary rate of 15% for a further
period of ten years and Feltex (Pvt) Ltd., would be liable to income tax at a concessionary rate of 10% for a further period
of two years in accordance with the agreement entered into with BOI. Palma Ltd., is entitled to a five-year tax holiday,
which would commence from the year of making profits in terms of section 20(1) b of the Inland Revenue Act No:28 of
1979 read in conjunction with section 187(2)of the Inland Revenue Act No: 38 of 2000 as amended.
In terms of section 40, DPL Plantations (Pvt) Ltd., enjoys a concessionary rate of 15% on profits from plantation
management.
In terms of section 17(a)( i ) of the Inland Revenue Act No:38 of 2000 (amendment) ,“Specified Profits from agriculture”
of Kelani Valley Plantations PLC., would be exempt from income tax for a period of five years up to December 31, 2009.
Kelani Valley Green Tea (Pvt) Ltd., and Kalupahana Power Company (Pvt) Ltd., have entered into an agreement with BOI,
and have been granted five-year tax holidays 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 whichever
is earlier. Accordingly, tax holiday period of Kelani Valley Green Tea (Pvt) Ltd., commenced in 2006/2007 and tax holiday
period of Kalupahana Power Company (Pvt) Ltd., commenced in 2007/2008. ICOGUANTI S.p.A. - Italy is liable to a
corporate tax of 27.5% and a regional tax of 3.90% on its taxable income. Dipped Products ( Thailand ) Ltd., would be
exempt from income tax for a period of 8 years up to December 31,2012 and would be taxed at half of corporate tax
rate for a further period of five years.
7. Earnings per share
Basic earnings per share
The basic earnings per share is based on the profits attributable to the ordinary shareholders divided by the weighted
average number of ordinary shares in issue during the year, calculated as follows;
Consolidated
Company
2009 2008 2009 2008
Net profit for the year (Rs ‘000) 362,870 371,122 304,255 212,594
Weighted average number of shares (in thousands) 59,861 59,861 59,861 59,861
Basic earning per share (Rs) 6.06 6.20 5.08 3.55
7.1 Diluted earnings per share
There are no potentially dilutive ordinary shares of the Company and as a result the diluted earnings per share is the same
as the basic earnings per share shown above.
8. Dividend per share
Company
2009
Rs ‘000
2008
Rs ‘000
Interim dividend - Nil (2008 - Rs 1.50 per share) - 89,792
Final dividend proposed Rs 3.00 per share (2008 Rs 1.50 per share) - note 30 179,585 89,793
Gross dividend 175,585 179,585
Number of Shares (in thousands) 59,861 59,861
Dividend (inclusive of proposed dividend ) per share (Rs.) 3.00 3.00
Dividend of Rs 3.00 per share (2008 - Rs 3.00 per share ) distributed to shareholders comprise tax exempt dividends
received by the Company , and is tax free in the hands of shareholders.
D I P P E D P R O D U C T S P L C A N N U A L R E P O R T 2 0 0 8 – 2 0 0 9
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