DIPPED PRODUCTS PLC / ANNUAL REPORT 2008—2009

Notes to the Financial Statements
According to the ruling given by the Urgent Issue Task Force (UITF) of The Institute of Chartered Accountants of
Sri Lanka, the amount stated in the Financial Statements have been adjusted to reflect the followings;
i. Future liability on the annual lease payment of Rs 19,598,000 will continue until the year 2045. The Net Present Value of
this liability at a 4% discounting rate (as recommended by UITF) would result in a liability of Rs 372,579,090.
ii.
iii.
The Net Present Value of Rs 372,579,090 is represented by a gross liability of Rs 715,327,000 (Rs 19,598,000 x36 ½
years ) and interest in suspense of Rs 342,747,910.
The charge to the Income Statement during the current period is Rs 21.2 million (2008 - Rs 21.4 million).
20. Deferred income
Grants
Consolidated
2009
Rs ‘000
2008
Rs ‘000
Grants
At beginning of the year 287,155 237,885
Received during the year 111,266 49,270
At end of the year 398,421 287,155
Amortisation
At beginning of the year 40,878 32,716
Amortised during the year 11,352 8,162
At end of the year 52,230 40,878
Carrying amount 346,191 246,277
Kelani Valley Plantations PLC., received grants from the Plantation Reform Project (PRP), Plantation Human Development
Trust and the Ministry of Community Development for workers’ facilities, and other infrastructure facilities. The amount
incurred is capitalised under relevant classification of property, plant and equipment and the corresponding grant
component is reflected under grants which is amortised over the useful life span of the asset.
21. Trade & other payables
Consolidated
2009
Rs ‘000
2008
Rs ‘000
Company
2009
Rs ‘000
2008
Rs ‘000
Trade payables 756,823 801,385 97,062 83,110
Other payables including accrued expenses 516,428 580,344 57,472 39,030
Unclaimed dividends 2,115 13,715 2,115 13,715
22. Interest bearing borrowings - due within one year
1,275,366 1,395,444 156,649 135,855
Consolidated
2009
Rs ‘000
2008
Rs ‘000
Company
2009
Rs ‘000
2008
Rs ‘000
Finance lease obligations net of interest - (note 19.2) 5,304 5,379 - -
Term loans - (note 19.1) 306,438 251,075 - 30,253
Short term loans and bank overdraft (unsecured) 2,405,206 1,896,960 473,189 483,027
23. Amounts due to subsidiaries
2,716,948 2,153,414 473,189 513,280
Company
2009
Rs ‘000
2008
Rs ‘000
Hand Protection 63,333 239,390
Plantations 324,293 453,333
387,626 692,723
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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