directors - Colombo Stock Exchange

notes to the Financial statements
9. Income Tax Expense
Current Tax Expense:
150
Consolidated Company
2009/10 2008/09 2009/10 2008/09
Restated
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Income tax on current year profit (Note 9.1) 149,186 61,794 118,460 44,202
Under provision in respect of previous year 4,367 2,596 3,890 2,231
Deferred Tax Expense:
153,553 64,390 122,350 46,433
Origination and reversal of temporary differences (Note 28) (14,182) 1,187 (5,237) 325
139,371 65,577 117,113 46,758
Tax release* 2,471 6,477 – –
Total income tax expense 141,842 72,054 117,113 46,758
9.1 Reconciliation of Accounting Profit to Income Tax Expense
Consolidated Company
2009/10 2008/09 2009/10 2008/09
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Profit before Taxation
Continuing operations 420,095 175,082 306,315 107,878
Discontinued operations (32,427) (20,060) – –
387,668 155,022 306,315 107,878
Disallowable expenses 175,982 174,213 142,059 165,410
Allowable expenses (111,831) (117,998) (103,878) (105,272)
Tax losses for the year – 6,154 – –
Share of (profit)/loss of equity accounted investee (8,236) 177 – –
Income not liable to tax (4,638) (42,505) (4,013) (42,476)
Taxable income
Income tax
438,945 175,063 340,483 125,540
Tax at 15% 866 294 590 294
Tax at 35% 146,115 60,587 116,120 43,255
Social Responsibility Levy (SRL) at 1.5% 2,205 913 1,750 653
Income tax on profits for the year 149,186 61,794 118,460 44,202
Effective tax rate 38.48 39.86 38.67 40.97
*Tax release represents the tax saving on loss of discontinued operations.
ANNUAL RepoRt 2009/10 DIeseL & MotoR eNGINeeRING pLC
statements of Changes in equity 138 Cash flow statements 139 Notes to the financial statements 141 ten year summary 165 share Information 166