| (a) |
The investment in the
Subsidiary Company consists of 2,500,000 ordinary shares, representing
a
100% holding in the issued share capital of Sri Lanka Telecom
(Services) Limited. |
| (b) |
The investment in the
Associate Company represents a 40% shareholding (22,170,640
ordinary shares of Rs. 10/- each) in a cellular telephone company,
Mobitel (Private) Limited at 31 October 2002. Of the investment
in Mobitel (Private) Limited 15,170,640 ordinary shares were
initially allotted, in consideration of SLTL signing a Joint
Venture Agreement with Telstra Holdings (Private) Limited, Australia
and discontinuing a Build Own Transfer (BOT) Agreement they
had entered into in 1992. For the purposes of preparing these
financial statements this investment of 15,170,640 shares was
valued at 40% of the Net Assets of Mobitel (Private) Limited
as at 30 June 1996 (the date on which Mobitel (Private) Limited
effected such issue of shares), according to its audited accounts
at that date. As at that date the 15,170,640 ordinary shares
represented 40% of the issued share capital of Mobitel (Private)
Limited and its value was Rs. 188 million. Since SLTL did not
pay cash for the 15,170,640 ordinary shares, the consideration
was credited to capital reserve (Note 23).
In 1996, Mobitel (Private) Limited increased its issued share
capital and SLTL made a cash a further investment of Rs. 70
million a further 7,000,000 ordinary shares of Rs. 10/- each,
so as to maintain a 40% shareholding in Mobitel (Private) Limited.
On 1 November 2002 the Company bought over the remaining 60%
of the issued share capital of Mobitel (Private) Limited from
Telstra Holdings (Private) Limited for a purchase consideration
of US $ 9,500,000 to be paid in three instalments, of which
the first instalment of US $ 3,000,000 was paid upfront. Thus,
Mobitel (Private) Limited which was an associate as at 31 October
2002, became a fully owned subsidiary of the Company on 1 November
2002. |
| (c) |
The investment in others
represents unlisted investments in Intelsat and Inmarsat, the
international satellite consortia. |
