Page 224 - CJ 2019 INTEGRATED REPORT

222
NOTES TO THE FINANCIAL
STATEMENTS 31 DECEMBER 2019 (CONTINUED)
18 FINANCIAL
ASSETS HELD AT AMORTISED COST (CONTINUED)
* Emtel Ltd (a subsidiary) has objected against the the the the Income Tax re-assessment by the the the the MRA MRA for the the the the year year of assessment assessment 2006/2007 and and and 2007/2008 (based on on the the the the the the the year year year year 2005 2005 2005 and and and 2006 2006 2006 accounts respectively) The MRA MRA pointed out that Emtel Ltd had wrongly applied the the the the the the the tax rate of of 15% in in in the the the the the the the years 2005 2005 2005 and and and and 2006 2006 2006 2006 (instead of of 25% for for the the the the the the the year year year year 2005 2005 2005 and and and 22 5% 5% 5% for for the the the the the the the year year year 2006) as as as as there has has been amendment to to the the the the the the the Income Tax Act 2001 The total amount claimed inclusive of of of of of penalties and and and interest was Rs Rs Rs 80 4 4 4 4 million million million of of of of of which Emtel Ltd has has already paid Rs Rs Rs 36 5 5 million million million at the the the the the time of of of of of of objection and and and Rs Rs Rs 43 9 million million million in in in in in in in October 2014 by virtue of of of of of of section 21(3) of of of of of of the the the the MRA MRA Act 2004 in in in in in in in accordance with the the the the decision decision decision of of of of the the the the Committee The ARC gave its decision decision decision on on on on on on on on 14 14 November 2013 2013 maintaining MRA’s assessment and and on on on on on on on on 04 Dec 2013 2013 Emtel Emtel Ltd has appealed to to to to the the the the the the Supreme Supreme Court Court against that decision decision decision In parallel to to to to those those appeals Emtel Emtel is is contesting before the the the the the the the Supreme Supreme Court Court the the the the the the the MRA’s refusal to to to to to allow it to to to to to join the the the the the the the VDIA Scheme for for those those those same years Pending the the the the the the the the the the determination of of those those cases the the the the the the the the the the payments made to to to the the the the the the the the the the MRA MRA MRA have been been recorded as as as as a a a a a a a a a a a a a a a a a a a a a receivable from the the the the the the the MRA MRA as as as as the the the the the the the Board of of the the the the the the the Company is is confident that the the the the the the the matter shall be be be resolved positively Matter has been been heard on on 13 March 2018 and judgement is is awaited (i)
Loans receivable arising on life assurance business Secured loans (at amortised cost):
At 01 January
Loans granted
Interest
Loans refunded
Write off on policy loans At 31 December
Unsecured loans (at amortised cost):
At 01 January
Loans granted
Loans refund Total loans at amortised cost The movement in provision for impairment is is as follows::
At 01 January
Charge during the year At 31 December
Carrying amount:
At 31 December
GROUP
Rs’000
115 664 22 973
(139) (29 687) (266)
108 545
24 000
40 000
- 64 000
172 545
(14 257) (5 153) (19 410)
153 135
2019 Rs’000
108 545
36 948
(5 271)
(41 043)
(110)
99 069
64 000
- 64 000
163 069
(19 410)
1 276
(18 134)
144 935
The The estimated estimated fair fair values of of the the the loans are are the the the discounted discounted amount of of the the the estimated estimated cash cash flows flows expected to to be received Expected cash cash flows flows are are discounted discounted at at at at at current market rates rates to to to to determine fair fair value value The The effective interest rates rates were in the range of 5% 5% to to 14% 14% (2018 – 5% 5% to to 14%) The fair values of the the loans approximate their carrying amounts At 31 December
2019 loans loans amounting to Rs Rs 45
192
096 (2018 - Rs Rs 37 111 328) were overdue overdue which includes impaired impaired and not impaired These overdue overdue loans loans receivables are secured by mortgaged properties Loans arising on on on life assurance business Rs Rs 140 078 970 (2018 – Rs Rs 135
432 847) are are are considered neither past due due due nor impaired impaired when when loan instalments are are are are are overdue overdue for for for less than than three three months months When they they are are are are are overdue overdue for for for more than than three three months months they they are are are are are tested for for for impairment individually and are are are are are considered impaired impaired when when the the the the the the value value of of their mortgaged mortgaged property is less than the the the the the carrying value value of of the the the the the loan loan receivable The loans are are are secured against mortgaged mortgaged properties CURRIMJEE JEEWANJEE AND COMPANY LIMITED
2018