The Financial Statements of The Overseas School of Colombo (Guarantee) Limited have been prepared in accordance with Sri Lanka Accounting Standard for Small and Medium sized Entities (SLFRS for SMEs) issued by the Institute of Chartered Accounts of Sri Lanka.

2.1 Statement of compliance

The Financial Statements have been prepared on a historical cost basis except for freehold land and buildings that are measured at revalued amounts. The Financial Statements are presented in Sri Lankan Rupees. The preparation and presentation of these Financial Statements is in compliance with the Companies Act. No. 07 of 2007.

2.1.1 Going concern

The Directors have assessed the Company’s ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future. Therefore, the Financial Statements continue to be prepared on going concern basis.

2.1.2 Comparative information

The accounting policies have been consistently applied by the Company are consistent with those used in previously.

2.1.3 Presentation and functional currency

The Financial Statements are prepared in Sri Lanka Rupees, the Company’s functional and presentation currency, which is the primary economic environment in which the Company operates.

2.2 Significant accounting judgements, estimates and assumptions

2.2.1 Critical judgments in applying the accounting policies

In the process of applying the Company’s Accounting Policies, Management has made the following judgements, which have the most significant effect on the amounts recognised in the Financial Statements.

(a) Deferred taxation

Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax that can be recognised based upon the likely timing and the levels of future taxable profits together with future tax planning strategies.

(b) Allowance for doubtful debts

The Company reviews at each date of the Statement of Financial Position all receivables to assess whether an allowance should be recorded in the profit or loss. The Management uses judgement in estimating such amounts in the light of the duration of outstanding and any other factors management is aware of that indicate uncertainty in recovery.

2.2.2 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation of uncertainty at the reporting date, that have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next financial year are discussed below.

The Company based its assumptions and estimates on parameters available when the Financial Statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

(a) Defined Benefit Plans

The cost as well as the present value of the defined benefit plan, gratuity is determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases and other important related data. Due to the long-term nature of employee benefits, such estimates are subject to significant uncertainty. Further details of assumptions are given in Note 9.

(b) Useful Lives of property, plant and equipment

The Company reviews the assets’ residual values, useful lives and methods of depreciation or amortisation at each reporting date; judgement by management is exercised in the estimation of these values, rates, and methods.

2.3  Material accounting policy information

2.3.1 Foreign currency translation

The Financial Statements are presented in Sri Lanka Rupees, which is the Company’s functional and presentation currency. Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the date of the Statement of Financial Position. All differences are taken to profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

2.3.2 Taxation

Current taxes

Income tax is measured at the amounts
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amounts are those that are enacted or substantively enacted by the balance sheet date.

The provision for income tax is based on the elements of income and expenditure as reported in the Financial Statements and computed in accordance with the provisions of the Inland Revenue Act.

Deferred taxation

Deferred income tax is provided, using the liability method, on temporary differences at the date of the Statement of Financial Position between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry-forward of unused tax assets and unused tax losses can be utilised.

The carrying amount of deferred income tax assets is reviewed at each date of the Statement of Financial Position and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the date of the Statement of Financial Position.

Sales tax

Revenues, expenses and assets are recognised net of the amount of sales tax except where the sales tax incurred on a purchase of assets or service is not recoverable from the taxation authorities in which case the sales tax is recognised as a part of the cost of the asset or part of the expense items as applicable and receivable and payable that are stated with the amount of sales tax included. The amount of sales tax recoverable and payable in respect of taxation authorities is included as a part of receivables and payables in the Statement of Financial Position.

2.3.3 Borrowing costs

Borrowing costs are recognised as an expense in the period in which they are incurred.

2.3.4 Intangible assets

All computer software cost incurred, licensed for use by the Company which is not integrally related to the associate hardware, can be clearly identified, reliably measured and it is probable that they will lead to future economic benefits are included in the Statement of Financial Position under the category intangible assets and carried at the cost less accumulated amortisation and accumulated impairment losses if any.

Expenditure incurred on intangible assets is capitalised only when it future economic benefits embodied in the specific assets to which it relates. All other expenditure is expensed as incurred.

Intangible assets are amortised on a straight-line basis over a period of 3 years in the Statements of the Comprehensive Income from the date when the asset is available for use, over the best estimate of its useful economic life. The amortisation period and the amortisation method for intangible assets are reviewed at least at each financial year end.

2.3.5 Receivables

Receivables are stated at the amounts they are estimated to realise net of provisions for doubtful receivables.

2.3.6 Cash and cash equivalents

Cash and short-term deposits are cash in hand, demand deposits and short-term highly liquid investments, readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

For the purpose of cash flow statement, cash and cash equivalents consist of cash in hand and deposits in banks net of outstanding bank overdrafts. Investments with short maturities i.e. Three months or less from the date of acquisition are also treated as cash equivalents.

2.3.7 Property, plant, and equipment

Property, plant and equipment except for freehold land and buildings are stated at cost, excluding the costs of day to day servicing, less accumulated depreciation and accumulated impairment in value. Such cost includes the cost of replacing part of the plant and equipment when that cost is incurred if the recognition criteria are met.

Revaluation of land and buildings are carried out with sufficient frequency to ensure that the fair value of the land does not materially differ from its carrying amount and professionally qualified valuer undertakes it.

Depreciation is calculated on a straight-line basis over the useful life of the assets.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognising of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Comprehensive Income in the year the asset is derecognised.

The asset’s residual values, useful lives and methods of depreciation are reviewed, and adjusted if appropriate, at each financial year-end.

2.3.8 Lease hold rights

Lease hold rights represent a contract in which the right of use of a land is conveyed for a period of a time in exchange for consideration. At the date of commencement of a lease, the lessee recognised in the statement of financial position as right-of-use of land and a liability to make lease payments. Lease hold rights are amortised over the remaining leased period.

2.3.9 Short-term investments

Investments with maturities more than three months and less than one year from the date of the acquisition are considered short term investments and initially recognised at fair value and subsequently measured at amortised cost.

2.3.10 Project funds

Project funds wholly consist of funds collected by the pupils and teachers of the school for various social activities and projects which are maintained by the school, for administrative purposes of collection, retention and disbursement as required by the project committees.

2.3.11 Employee benefits

(a) Defined benefit plan – Gratuity

Defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company’s obligation in respect of defined benefit plans is calculated by estimating the amount of future benefits that employees have earned in return for their service in the current and prior periods. The benefit is discounted to determine its present value.

The discounted rate is yield at the reporting date on government bonds that have maturity dates approximating to the terms of the Company’s obligations. The calculation is performed by a qualified actuary using the project Unit Credit Method.

However, under the payment of Gratuity Act No. 12 of 1983, Liability to an employee arises only on completion of five years of continual service.

The liability is not externally funded.

(b) Defined contribution plans – Employees’ Provident Fund and Employees’ Trust Fund

Employees are eligible for Employees’ Fund Contributions and Employees’ Trust Fund Contributions in line with the respective statutes and regulations. The Company contributes 12% and 3% of gross emoluments of employees to Employees’ Provident Fund and Employees’ Trust Fund, respectively.

2.3.12 Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

Impairment losses of continuing operations are recognised in the Statement of Profit or Loss and Other Comprehensive Income in those expense categories consistent with the function of the impaired asset. For assets, an assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Company makes an estimate of recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the statement of profit or loss and other comprehensive income.

2.3.13 Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue and associated costs incurred or to be incurred can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable net of trade discounts and sales taxes. The following specific criteria are used for the purpose of recognition of revenue.

(a) Tuition fee income

The main source of revenue for the Company is tuition fee which is recognised on accrual basis for each semester.

(b) Registration fee income

Registration fee income is recognised on an accrual basis.

(c) Interest

Interest income is recognised on an accrual basis.

(d) Others

Other income is recognised on an accrual basis.

Net gains and losses of a revenue nature on the disposal of property, plant and equipment are accounted for in the income statement, having deducted from proceeds on disposal, the carrying amount of the assets and related selling expenses.

Gains and losses arising from incidental activities to main revenue generating activities and those arising from a group of similar transactions which are not material, are aggregated, reported, and presented on a net basis.

2.3.14 Expenditure recognition

1. Expenses in carrying out the School and other activities of the Company are recognised in the Statement of Comprehensive Income during the year in which they are incurred. Other expenses incurred in administering and running the School and in restoring and maintaining the property, plant and equipment to perform at expected levels are accounted for on an accrual basis and charged to the Statement of Comprehensive Income.
2. For the purpose of presentation of the Statement of Comprehensive Income, the Management is of the opinion that the function of expenses method, presents fairly the elements of the Company’s performance, and hence such a presentation method is adopted.

3.1 Gross carrying amounts

	Balance as at 01.08.2023 LKR	Additions during the year LKR	Disposal/ transfers/ adjustments during the year LKR	Balance as at 31.07.2024 LKR
At valuation
Freehold land	331,440,000	–	–	331,440,000
Building	2,118,306,710	36,677,619	–	2,154,984,329
	2,449,746,710	36,677,619	–	2,486,424,329
At cost
Plant and machinery	249,237,888	26,230,132	(23,380,796)	252,087,224
Computer equipment	230,281,143	13,025,312	(74,277,067)	169,029,388
Furniture and fittings	138,822,535	295,000	(31,868,171)	107,249,364
Motor vehicles	50,654,019	–	–	50,654,019
	668,995,585	39,550,444	(129,526,034)	579,019,995
Assets under construction
Buildings	24,567,938	5,818,585	(5,127,237)	25,259,286
	24,567,938	5,818,585	(5,127,237)	25,259,286
	3,143,310,233	82,046,648	(134,653,271)	3,090,703,610

3.2 Accumulated depreciation

	Balance as at 01.08.2023 LKR	Charge for the year LKR	Disposal/ transfers during the year LKR	Balance as at 31.07.2024 LKR
At valuation
Building	–	53,102,756	–	53,102,756
	–	53,102,756	–	53,102,756
At cost
Plant and machinery	154,039,380	33,459,654	(23,110,549)	164,388,485
Computer equipment	182,601,548	26,292,386	(74,277,069)	134,616,865
Furniture and fittings	85,262,362	15,748,238	(31,578,459)	69,432,141
Motor vehicles	49,775,995	450,626	–	50,226,621
	471,679,285	75,950,904	(128,966,077)	418,664,112
	471,679,285	129,053,660	(128,966,077)	471,766,868

3.3 Net book value

	2024 LKR ’000	2023 LKR ’000
At valuation
Freehold land	331,440,000	331,440,000
Buildings	2,101,881,573	2,118,306,710
	2,433,321,573	2,449,746,710
At cost
Plant and machinery	87,698,739	95,198,508
Computer equipment	34,412,523	47,679,595
Furniture and fittings	37,817,223	53,560,173
Motor vehicles	427,398	878,024
	160,355,883	197,316,300
	2,593,677,456	2,647,063,010

3.4 Assets under construction

	2024 LKR ’000	2023 LKR ’000
Balance as at the beginning of the year	24,567,938	17,178,567
Additions during the year	5,818,585	7,389,371
Transfers to property, plant and equipment	(5,127,237)	–
Balance as at the end of the year	25,259,286	24,567,938

3.5 During the financial year, the Company acquired property, plant and equipment to the aggregate value of LKR 82,046,649/- (2023 – LKR 265,159,791/-) of which cash payments amounting to LKR 82,046,649/- (2023 – LKR 265,159,791/-) were made during year for purchase of property, plant and equipment.

3.6 The useful lives of the assets of the Company are estimated as follows

		2024 Years	2023 Years
Buildings		40	40
Plant and machinery		4	4
Furniture and fittings		5	5
Computer equipment		3	3
Motor vehicles		6 2/3	6 2/3

3.7 Property, plant and equipment includes fully depreciated assets having a gross carrying amounts of LKR 298,559,480/- (2023 – LKR 422,810,195/-).

3.8 During the year, property, plant and equipment that had an aggregate cost of LKR 129,526,034/- (net book value of LKR 559,958/-) were written off and removed from the general ledger.

3.9 Valuation of land and buildings were independently carried out by Trustus Consultants, Chartered valuation surveyors during the financial year 2022/23, who was experienced in valuing properties of similar location and categories. Fair value of the properties was determine using the Income approach and market comparable method. The land valuations are based on proprietary databases or proceeds of transactions for properties of similar nature, location and condition. The buildings are valued at an income approach. Significant unobservable valuation input used in the revaluation are as follows.

Significant unobservable valuation inputs – FY 2022/23		Amount
Price per perch – Land (LKR)		4,000,000
Estimated net income per year (LKR)		584,550,000
Capitalisation rate (%)		9.5

3.10 The carrying amounts for revalued land and buildings that would have been included in the Financial Statements had the asset been carried at cost is as follows.

Asset		Cost LKR	Accumulated depreciation LKR	Net book value LKR
Land		4,381,439	–	4,381,439
Building on freehold land		55,926,817	27,571,002	28,355,815
Building on leasehold land		489,898,540	122,429,822	367,468,718

		2024 LKR	2023 LKR
Balance as at the beginning of the year		53,970,000	53,970,000
Additions during the year		–	–
Balance as at the end of the year		53,970,000	53,970,000
Accumulated depreciation
Balance as at the beginning of the year		16,508,465	15,873,524
Charge for the year		634,941	634,941
Balance as at the end of the year		17,143,406	16,508,465
Carrying amount as at end of the year		36,826,594	37,461,535

The Overseas School of Colombo entered into a 99 Year Land Lease agreement with the Urban Development Authority in 1983 for the purpose of erecting buildings for school use. A ground rent of LKR 1,103,700/- was paid as ground lease rent in advance for 99 Years. Leasehold land was revalued in 1996/97 by P.B Kalugalagedera, an independent professional valuer on current market value basis. The valuation amount of to LKR 52,866,300/- was recognised in the financial statement and amortised over the lease period.

		2024 LKR	2023 LKR
Cost
Balance as at the beginning of the year		12,013,991	12,013,991
Additions during the year		2,176,348	–
Balance as at the end of the year		14,190,339	12,013,991
Accumulated amortisation
Balance as at the beginning of the year		12,013,991	12,013,991
Amortisation for the year		361,695	–
Balance as at the end of the year		12,375,686	12,013,991
Carrying amount as at end of the year		1,814,653	–

5.1 Useful life of Intangible assets

		2024 Years	2023 Years
Computer software		3	3

		2024 LKR	2023 LKR
Trade receivables		24,036,651	21,582,959
Provision for bad and doubtful debts		–	–
		24,036,651	21,582,959
Prepayments		77,446,020	113,425,838
Advances to suppliers		84,886,370	36,547,372
Deposits		58,343,884	50,105,191
Loans and advances to school staff		6,745,019	7,096,924
Other receivables		–	116,000
		251,457,944	228,874,284

	2024 LKR ’000	2023 LKR ’000
Fixed deposits	1,388,176,060	1,396,729,157
	1,388,176,060	1,396,729,157

	2024 LKR ’000	2023 LKR ’000
Favorable cash and cash equivalent balance
Cash in hand	1,247,000	1,803,000
Cash at bank	227,624,097	298,155,171
	228,871,097	299,958,171
Unfavorable cash and cash equivalent balance
Bank overdraft	(74,918,558)	(90,683,359)
Total cash and cash equivalents for the purpose of statement of cashflows	153,952,539	209,274,812

	Note	2024 LKR ’000	2023 LKR ’000
Defined benefit plan – Gratuity	9.1	231,777,894	215,507,291
Defined contribution plan – expatriate pension payable	11.1	–	13,837,442
		231,777,894	229,344,733

9.1 Defined benefit plan – Gratuity

	2024 LKR ’000	2023 LKR ’000
Defined benefit plan as at the beginning of the year	215,507,291	150,527,333
Actuarial (gains)/losses	(22,925,067)	31,589,338
Benefits paid during the year	(21,909,012)	(22,896,276)
Current service costs and interest	61,104,682	56,286,896
Defined benefit plan as at the end of the year	231,777,894	215,507,291
Expense on defined benefit plan
Current service cost	31,472,430	21,138,764
Interest cost	29,632,252	35,148,132
	61,104,682	56,286,896

Principle assumptions

An actuarial valuation of the gratuity liability was carried out as at 31 July 2023 by Mr Piyal S Goonetilleke FSA, of Piyal S Goonetilleke and Associates.

The following are the principal actuarial assumptions at the reporting date.

		2024	2023
Normal retirement age (years)		60	60
Rate of discount (%)		11.6	13.75
Salary increment rate	Sri Lankan staff (%)	9.0	12.0
	Expatriate staff (%)	9.0	12.0

Sensitivity analysis

In order to illustrate the significance of the discount rate and salary increment rate in this valuation as at 31 July 2024, a sensitivity analysis was carried out assuming the following discount rate and salary increment rate.

As at 31 July 2024
Discount rate	Salary increment rate	LKR
Increase by 1%	As given above	(9,254,641)
Decrease by 1%	As given above	10,088,626
As given above	Increase by 1%	10,379,888
As given above	Decrease by 1%	(9,651,587)

As at 31 July 2023
Discount rate	Salary increment rate	LKR
Increase by 1%	As given above	(11,045,767)
Decrease by 1%	As given above	12,229,871
As given above	Increase by 1%	11,884,765
As given above	Decrease by 1%	(10,924,371)

	2024 LKR	2023 LKR
Balance as at 25 SDG the beginning of the year	18,285,693	20,776,230
Fund receipts/collection	23,808,985	73,702,873
Fund disbursements	(16,263,857)	(76,193,410)
Balance as at the end of the year	25,830,821	18,285,693

	Note	2024 LKR	2023 LKR
Fees received in advance		259,728,129	219,790,487
Refundable deposits		22,596,006	19,796,006
Other creditors		46,332,388	69,224,980
Accrued expenses		14,661,300	4,484,541
Sundry creditors		19,161,683	18,972,822
Contractor retention		7,239,284	6,049,900
Other payables	11.1	22,462,308	7,733,013
		392,181,098	346,051,749

11.1 Other payables includes defined contribution plan maintained for expatriate emplyees as mentioned below.

	2024 LKR	2023 LKR
Defined contribution plan – expatriate pension payable
Defined contribution plan as at beginning of the year	13,837,442	11,544,818
Provision made during the year	59,425,332	70,736,153
Recovery made from salary	71,137,770	76,150,583
Payment made during the year	(131,713,265)	(144,594,112)
Defined contribution plan as at end of the year	12,687,279	13,837,442

	2024 LKR	2023 LKR
Registration fees – gross	393,344,984	294,042,835
Tuition fees – gross	2,328,572,069	2,130,083,253
Income before indirect taxes	2,721,917,053	2,424,126,088
Social security contribution levy	(73,285,051)	(43,722,061)
	2,648,632,002	2,380,404,027

	2024 LKR	2023 LKR
Wages and salaries – expatriate	1,327,395,533	1,448,196,230
Wages and salaries – local	303,577,061	308,114,163
In – service training	46,523,075	31,596,542
	1,677,495,669	1,787,906,935

	2024 LKR	2023 LKR
Staff expenses	299,974,648	333,278,645
Depreciation on property, plant and equipment	129,053,660	92,880,582
Senior, primary and pre-school activities	91,064,742	98,287,400
Maintenance charges	115,047,475	85,120,533
Utilities, rent and rates, insurance	87,061,881	72,241,907
Stationery, computer, year book/publications and library books	83,121,097	91,550,093
Defined contribution plan	66,238,414	70,958,392
Expatriate pension	59,425,332	70,736,153
Defined benefit obligations	61,104,682	56,286,896
Local travelling expenses	64,443,934	64,820,715
Security charges	24,784,090	31,856,055
Physical education	13,687,495	34,398,664
Accreditation	1,547,833	5,501,107
Recruitment	19,311,211	2,086,196
Marketing expenses	10,383,394	11,444,589
Entertainment expenses	5,900,733	6,830,584
Board expenses	3,463,333	4,039,133
Bank charges	10,681,848	13,614,060
Amortisation of computer software	361,695	–
Medical and other activities	1,747,923	1,298,561
Professional and consultancy fees	16,544,673	5,372,513
Office supplies and sundry expenses	456,478	441,047
Amortisation of lease hold land	634,941	634,941
Postage, courier and stamp duty	1,244,195	285,833
Professional fees – audit fee and other	750,000	1,148,507
Campus renovations	1,078,805	4,862,814
Expenses for COVID-19	–	95,880
WHT Tax on foreign remittance	18,429,406	9,589,110
	1,187,543,918	1,169,660,910

	2024 LKR	2023 LKR
Foreign exchange gain/(loss)	(230,719,506)	(308,692,801)
Interest income on fixed deposits	74,515,856	90,431,473
Interest income on saving accounts	6,493,397	9,812,846
	(149,710,253)	(208,448,482)

	2024 LKR	2023 LKR
Transport income	65,377,982	79,356,823
US grant income	133,406,547	40,350,000
Other income	–	16,850
Gain/(loss) on disposal of property, plant and equipment	(559,956)	128,240
	198,224,573	119,851,913

	Note	2024 LKR	2023 LKR
Current income tax
Current tax expense on ordinary activities for the year	17.1	–	–
Under provision of current taxes in respect of prior years		2,223,950	–
Deferred tax charge/(reversal)	17.3	36,130,374	(151,265,839)
		38,354,324	(151,265,839)

17.1 Reconciliation between current tax expense and the product of accounting profit multiplied by the statutory tax rate is as follows:

	2024 LKR	2023 LKR
Accounting profit/(loss)	(167,893,265)	(665,760,387)
Aggregate disallowed items	493,249,502	318,099,904
Aggregate allowable expenses	(448,782,347)	(342,997,036)
Assessable income from business	(123,426,110)	(690,657,519)
Investment income	1,420,129	11,665,377
Total taxable income	(122,005,981)	(678,992,142)
Investment income	1,420,129	11,665,377
Unrelieved losses	(1,420,129)	(11,665,377)
Current income tax expense on taxable income @ 30% (2022 – 24%)	–	–

17.2 Deferred tax assets/liabilities

Deferred tax assets, liabilities and income tax relates to the followings.

	Statement of Financial Position		Statement of Comprehensive Income
	2024 LKR	2023 LKR	2024 LKR	2023 LKR
Deferred tax liabilities
Property plant and equipment at cost	(2,044,444)	123,501,986	(125,546,430)	117,861,696
Building – revaluation	(617,212,014)	(620,025,409)	2,813,395	(371,712,766)
Free hold land – revaluation	(28,586,700)	(97,623,000)	69,036,300	(23,064,600)
Unrealised exchange gain	–	–	–	143,661,457
Right-of-use asset	(11,047,978)	–	(11,047,978)	–
	(658,891,136)	(594,146,423)	(64,744,713)	(133,254,213)
Deferred tax assets
Defined benefit plans	69,533,368	64,652,188	4,881,180	43,578,360
Unutilised income tax losses	226,213,877	253,026,995	(26,813,118)	226,497,717
Provision for doubtful debts	–	–	–	(1,861,112)
Unrealised exchange loss	43,668,757	–	43,668,757	–
	339,416,002	317,679,183	21,736,819	268,214,965
Deferred income tax income/(expense)			(43,007,894)	134,960,752
Net deferred liabilities	(319,475,134)	(276,467,240)

17.3 Deferred tax liabilities

	2024 LKR	2023 LKR
Balance as at the beginning of the year	(276,467,240)	(411,427,992)
(Charge)/reversal made from income statement during the year	(36,130,374)	151,265,839
(Charge)/reversal made from OCI during the year – Actuarial gains losses	(6,877,520)	9,476,801
Charge made from OCI during the year – Property, plant and equipment revaluation	–	(25,781,888)
Balance as at the end of the year	(319,475,134)	(276,467,240)

17.4 Income tax payable

	2024 LKR	2023 LKR
Balance as at the beginning of the year	(2,414,192)	2,914,461
(Over) provision	(1,721,694)	–
Income tax expenses	–	–
Payments made during the year	–	(5,328,653)
Balance as at the end of the year	(4,135,886)	(2,414,192)

The Company does not have significant commitment and contingencies as at 31 July 2024.

The Company has settled a Corporate Income Tax Assessment raised by The Inland Revenue Department of Sri Lanka for the year of assessment 2018/19 that resulted in no additional tax payments. Two more assessments related to year of assessment 2019/20 and 2020/21 are in progress, and are planned to be settled accordingly.

There have been no material events occurring after the end of the reporting date that require adjustments to or disclosure in the Financial Statements.

Transactions with key management personnel of the Company

The key management personnel of the Company are the members of its Board of Directors and Head of School.

Key management personnel compensation	2024 LKR	2023 LKR
Short–term employee benefits
Termination benefits	69,376,575	97,992,300
Post employment benefits	9,846,680	9,501,540
	79,223,255	107,493,840