29. DIRECTORS’ INTERESTS IN CONTRACTS   Close Window

(All amounts in Sri Lanka Rupees millions) A Director is considered to have a direct interest in a contract with the Company, if the Director him/herself is involved in a contract with the Company. A Director has an indirect interest in a contract with the Company, if the Director, through his/her common Directorships or his/her dependent family members is involved in a contract with the Company. The Directors of Sri Lanka Telecom Limited held Directorship in the following companies: Director Company Position Mr. T. Sumathipala Sumathi Trading Company Partner (50% holding)   Sumathi Book Printing (Private) Limited Director   Sri Lanka Telecom Services (Private) Limited Director   Mobitel (Private) Limited Chairman Mr. R. H. Fernando MSL Audit (Private) Limited Director   Commercial Bank of Ceylon Limited Alternate Director   Central Industries Limited Director   Ernst & Young Director   Ernst & Young Investment Consultants (Private) Limited Director   Management Systems Limited Director   MSL Galle (Private) Limited Director   Secretarial Services Limited Director   Business Intelligence Limited Director Mr. N. Pathmanathan Ceylon Petroleum Corporation Director   Galadari Hotels Limited Director Mr. Shuhei Anan Mobitel (Private) Limited Director   Sri Lanka Telecom Services (Private) Limited Director Ms. M.A.R.C. Cooray Sri Lanka Institute of Information Technology Director   Development Finance Corporation of Ceylon Director   Ceylon Electricity Board Director   Thomas De La Rue and Company Limited Director Mr. A.R. Ekanayake Council of Information Technology Director Mr. Kiyoshi Maeda NTT Com Asia Limited Director   HK Net Co., Limited Director   NTT Korea Co., Limited Director   NTT Australia Pty. Limited Director   NTT Australia IP Pty. Limited Director   Milletechno, inc. Director Mr. H. Yamada AutoWeb Communications, Inc Director   StarHub Pte. Limited Director   NTT America, Inc. Director   NTT Europe Limited Director   NTT Singapore Pte. Limited Director   NTT MSC Sdn. Bhd. Director Mr. Mitsuhiro Takase NTT Communications Corporation Director   Philippine Long Distance Telephone Company Director Mr. Setsuya Kimura NTT Communications Corporations (Thailand) Co. Limited Director       SLTL had the following transactions with the above companies during the year under review: Mobitel (Private) Limited Payments amounting to Rs. 7 million (2002 - Rs. 4.9 million) have been made during the year on call charges relating to cellular phones purchased for SLTL employees. Further, cellular phones amounting to Rs. 2 million (2002 - Rs. 3.3 million) were purchased from Mobitel (Private) Limited during the year. During the year 2002 a short-term interest free loan amounting to Rs. 138 million was granted to Mobitel (Private) Limited for which ordinary shares were issued in favour of this balance during the year ended 31 December 2003. Mobitel (Private) Limited has entered into an agreement with the Sri Lanka Cricket for sponsoring the England Cricket tour for which the Company incurred Rs. 7.5 million. The Company has guaranteed the following on behalf of Mobitel (Private) Limited:     (i) Loans amounting to Rs. 4,498 million and USD 10 million for GSM roll out and operational expenses. (ii) To obtain an investment commitment guarantee amounting to Rs. 250 million issued by banks in favour of TRC for bidding for a slot in the 1800 MHz band for the GSM roll out. (iii) To open L/C for GSM roll out a guarantee for USD 5 million was issued to a bank. (iv) Loan for USD 11.5 million and Rs. 7.3 billion for the GSM roll out. This loan will absorb Rs. 3 billion and USD 10 million described in (i) above, and also the USD 15 million cash deposit kept as collateral to open an L/C referred to in Note 15 (c), and will also absorb the USD 5 million guarantee issued to a bank, referred in (iii). Outstanding balances arising from sale/purchase of services   2003 2002 Receivable from related party     Mobitel (Private) Limited 37 ====== 78 ====== Payable to related parties     Mobitel (Private) Limited 37 – Sri Lanka Telecom (Services) Limited 15 15   --------- 52 ====== --------- 15 ======       NTT Communications Corporation As per the shareholders’ agreement with NTT, which owns 35% of the issued share capital of SLTL, the following charges have been borne by the Company:   2003 2002 Remuneration for experts seconded to SLTL 60 102 Expenditure for experts seconded to SLTL 12 51 Management fees to NTT – 240   --------- 72 ====== --------- 393 ======       Management agreement between NTT Communications Corporation and the Company came to an end on 4 August 2002. Sumathi Book Printing (Private) Limited The following tenders were awarded to Sumathi Book Printing (Private) Limited: Tender number Value (Rs. million) Description LS/MTCE/SS/2003 44   Printing of Telephone Colombo Directories LS/MTCE/LSSO/86/2002 5   Printing of Provincial Directories       SLTL did not have any other transactions with the above companies during the year.

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