directors - Colombo Stock Exchange

DIeseL & MotoR eNGINeeRING pLC ANNUAL RepoRt 2009/10
9.2 Tax Losses Brought Forward and Utilised during the Year
Consolidated Company
2009/10 2008/09 2009/10 2008/09
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Tax Losses at the beginning of the year 19,861 9,443 – –
Loss incurred during the year – 6,154 – –
Utilised during the year (118) – – –
Adjustment on asset held for sale (7,035) – – –
Adjustment to tax loss brought forward 97 4,264 – –
At the end of the year 12,805 19,861 – –
The income tax has been computed in accordance with the Inland Revenue Act No. 10 of 2006.
The Companies within the Group are liable to income tax at 35%. The tax on export profit is 15%.
The Social Responsibility Levy is 1.5% of the income tax.
The tax liability on proposed final dividend is Rs. 3,480,955/-. The actual liability arises in year in
which the dividend is paid hence no liability is recognised in these Financial Statements.
10. Discontinued Operations
In December 2009 the Group discontinued operations of Telecommunication Equipment Sales and
Service which were included in Electro Mechanical & Bio Medical Engineering segment; the business
was not a discontinued operation as at 31st March 2009 and the comparative income statement has
been restated to show the discontinued operation separately from continuing operations.
Results of Discontinued Operations
notes to the Financial statements
2009/10 2008/09
Rs. ’000 Rs. ’000
Revenue 40,305 86,138
Expenses (72,732) (106,198)
Loss before taxation (32,427) (20,060)
Income tax release 2,471 6,476
Losses for the period (29,956) (13,584)
Basic Losses per share (3.44) (1.42)
Diluted Losses per share (3.44) (1.42)
Cash Flows from Discontinued Operations
Net cash flows from operating activities 11,779 (8,586)
Net cash from investing activities – (149)
Network of branches, Workshops & showrooms 170 historical Note 171 Key principals 173 Country Report 175 Alphabetical Index 179
151