Ministry of Difence CONTENTS
Our Vision & Our Mission 1
Corporate Information 2
Chairman Review 3
Board of Directors Message 4
Key Personnel 6
Key Activities 8
Declaration of Urban Areas Commercial & Environmental Developments Town Developments Consultancy Services Provided during the year Other Services Provided during the year Leased Out Properties of Lands & Buildings Physical Developments
Human Resources Management 25
Corporate Governance 27
Report of the Auditor General 30
Financial Statements 51
Financial Highlights 71
Annual Report 2010
VISION
“To make Sri Lanka a center of development by creating suitable urban centers where people could live, work, play and make their livelihood pleasant.”
MISSION
To formulate development plans for providing globally recognized fully fledged sustainable urban centers thereby achieving effective promotion, implementation and enforcement.
1 Annual Report 2010
CORPORATE INFORMATION
Legal Form : Urban Development Authority is a body corporate, duly established on 6th September 1978 under the Urban Development Authority Law No.41 of 1978 enacted by the National State Assembly.
Registered Office & Head Office : : Urban Development Authority 6th & 7th Floors, Sethsiripaya Battaramulla
Telephone : 11 2875916-20 Fax : 11 2873637 Website : www.uda.lk E-mail : [email protected]
UDA Sub Offices : Refer page 76
Board of Management : : Mr. Janaka Kurukulasuriya Mr. Jayantha Wickramasinghe Mr. Harshan De Silva Dr. Priyath Bandu Wickrema Mr. Rohan Seneviratne Dr. B M S Batagoda Dr. Nalaka Godahewa
Bankers to the UDA : Bank of Ceylon
Secretary to the Board : Director General –UDA Auditors : The Auditor General of Sri Lanka
2 Annual Report 2010
CHAIRMAN’S REVIEW
The Urban Development Authority (UDA) has an exceptional identity in the entire urban development process of the government under Mahinda Chintanaya idiri Dakma Program. The, UDA has jointly involved in all government programmes linked with the urban development during the year 2010.
The main purpose of the UDA is to promote integrated planning in urban areas and implement their economic, social and physical development. Urban Development Authority is a decentralized organization which functions through the 22 provincial and district offices covering the country. Planning decisions related to urban areas are taken with concurrence of the provincial offices and UDA performs mostly technical & planning consultancy functions.
Relocation of underserved settlements, face lifting of Colombo city, conservation of old buildings, controlling of unauthorized constructions, capacity building and re- organizing the Institute were the key programme initiated in 2010.
Several steps have been taken during the year by UDA under Mahinda Chintana Idiri Dakma programme in order to complete the project in the year under review by various divisions and district / provincial offices of the Urban Development Authority and are also included in the report. Every Employee attach to UDA are in different mindset now and ready to perform to their full professional capacity to create a different city in every corner in Sri Lanka.
Janaka Kurukulasuriya Chairman, Urban Development Autority.
3 Annual Report 2010
BOARD OF MANAGEMENT
Mr. Janaka Kumarajith Perera Involved in number of major port development projects from the
Kurukulasuriya (Chairman) inception and up to completion, mainly Hambantota port project,
Colombo port expansion project, Galle and Oluvil port projects. BSc. Eng. (Hons) MA (Econ) In all those projects involved in Technical, Financial & economic P.G. Dip in Port & Costal Engineering (Norway) activities Chartered Engineer, F.I.E. (SL)
Mr. Jayantha Wickramasinghe (Board Member) Chief Executive Officer of Lanka Logistics and Technologies Limited [LLTL] from its inception in October 2006. Higher Education in the fields Managing Director of the first Digital wide area paging of Accountancy & Business Studies at the Twinckneham Collage of network which specialized in the provision of radio Technology, engineering & telecommunication solutions Middlesex, United Kingdom Secretary of the telecom providers Association, Board member of the Sri Lanka Information & Communication Technology Association Director of the Information & Communication Technology(ICTA of Sri Lanka) Pass president of the Sri Lanka Canada Business Council Mr. L.A.P. Harshana De Silva. 01.11.89 to 31.08.2001 At Surath Wicremasinghe Associates SLIA I, SLIA II, SLIA III, AIA 01.11.2001 - 31.08.2001 At Chandra Gunawardena Associates (SL) Chartered Architect 02.10.2006 to date At Asian Arc 01.09.2006 to date At Pinnacle Consortium (Pvt) Ltd. 27.07.2008 to date At Team 3, Singapore
Mr. Rohan Senevirathne Electric Utility Management (Board Member) BSc Eng (Hons) MBA, PG DP (Com.Tec), PG Dip (Elecity. Dist.), C Eng. MIE (SL), MIET,MIEEE
Dr. B.M.S. Batagoda Responsible for supervising 233 State Owned Enterprises (Board Member) including State Banks. This includes providing good PhD in Environmental Sciences governance, performance monitoring and make sure the public (UEA, UK) enterprises are commercially viable. MSc in Natural Resources Management (MSU, USA) Attorney-at-Law BA (Hons) SL
4 Annual Report 2010
Dr. Priyath Bandu Wicrama Executive Director of Sri Lanka Ports Muneege Authority (Board Member) Vice Chairman, BSc Eng (Hons) Mechanical Chairman, Chief Executive of the Ports Authority Engineering University of Chairman of the Sri Lanka Port Moratuwa, Management & Consultancy Services limited Chairman of Jaya Container terminal services (Pvt.) Limited P.G. (Dip) Energy Technology University of Moratuwa, Chartered Engineeri Institute of Engineers Sri Lanka PhD (Operations Management) International University of America in United Kingdom
Dr. Nalaka Godahewa Chairman of Sri Lanka Tourism Development Authority (Board Member) Ph.D, MBA B.Sc. Eng. (Hons) FCIM, FCMA CMA (Australia)
Mr. K. E. V. N. Fernando (Secretary of the BOM) B.Sc. (Built Environment)-1982 M.Sc. (Architecture) 1985 M.Sc. (Urban Dev. Plan.)1991
5 Annual Report 2010
KEY PERSONNEL 2010
Mr. Sanath Weerakoon Chairman Mr. Janaka Kumarajith Perera
Kurukulasuriya
Working Director Mr. Tissa Yapa
Mr. H. Prasanna Silva Director General Mr. K.E.V.N. Fernando - Acting
Deputy Director General (DPM&C) Mr. K.E.V.N. Fernando
Deputy Director General (Planning Zone 2) Mrs. J.B. Hettiarachchi
Deputy Director General (Southern Mrs. I.S. Weerasooriya Province )
Deputy Director General (Finance) Ms. Wasantha Geeganage
Deputy Director General (HRM) Mr. V.M. Perera
Mr. G. Rupasena Director (HRM) Mrs. Mallika Wijewardana - Acting
Director (Legal) Mrs. S. Karunanayake
Director (Progress Control & Public Mrs. Shirani Ariyathilake Relation)
Director (Development Planning - N&E) Mr. R.M. Ariyadasa
6 Annual Report 2010
Director (GIS) Mr. L.H. Indrasiri
Director (Land Development & Mr. G.W.G. Abeygunawardane Management)
Director (DPM&C) Mrs. Champika De Silva
Director (Project Management) Mrs. Renuka Wickramasinghe
Director (Enforcement) Mr. W.A. Sirirwardena
Director (Environment & Landscape) Mr. D. Hettiarachchi - Acting
Director (PPM & Recoveries) Mr. P.D.K. Pathirana- Acting
Director (Western Province) Mrs. Shirani Ariyathilake - Acting
Provincial Director (Northern) Mr. N. Rajanayagam
Provincial Director (Eastern) Mr. K.A.D. Chandradasa
Chief Internal Auditor vacant
7 Annual Report 2010
KEY ACTIVITIES
Declaration of Urban Areas-2010
As a main activity of the UDA, carrying out integrated planning and physical development of declared urban areas, following areas suitable for development, declared as Urban Development areas by Order published in the Gazette in the year 2010 under the Urban Development Authority Law No.41 of 1978.
Development Plans
District Area Gazette No. & Date
Galle Bentota PS No. 1637/12-20.01.2010 Pitigala PS No. 1641/43-18.02.2010
Matara Morawaka PS No. 1641/41-18.02.2010
Diyandara (Mulatiyana PS) No. 1641/42-18.02.2010
Badulla Maligathenna (Hali-Ela PS) No. 1641/44-18.02.2010 Kandy Pallepola PS No. 1635/26-07.01.2010
The Authority shall develop every development area that declared as urban areas for the better physical and economic utilization of such area. UDA has prepared development plans for the following areas in the year 2010.
District Area Local Authority Stage of Completion Description of the Plan Draft Final Gazetted
Matara Matara Gazette No.1645/22 on 17.03.2010
Badulla Badulla Gazette No.1645/22 on 17.03.2010
Galle Hikkaduwa Gazette No.1645/22 on 17.03.2010
Ampara Ampara Gazette No.1643/27 on 04.03.2010
Kegalle Rambukkana Finalized.
Yatiyantota PS
Colombo Kolonnawa PS
Rathnapura Eheliyagoda PS
Galle Ambalangoda UC
Matara Yatiyana PS
Weligama UC
8 Annual Report 2010
Commercial & Environmental Developments
WESTERN PROVINCE
- Landscape works at Sri Uththarananda Mw., Beira Lake For the purpose of City beautification and achieving social benefits to the public by improving Landscape works at Sri Uththarananda Mw., Beira Lake was carried out by UDA in the year 2010. Total cost of the project was Rs. 2.3mn and works completed during the year 2010.
- Mulleriya Wewa Project Stage II Phase I, children’s Park area
Development of Mulleriya Wewa, Children’s Park area was to provide social benefits to the general public. The total estimated cost is Rs. 900,000 and project was already completed.
- Kesbewa Children’s park near Palathuru Watta, Stage I Development of Kesbewa Children’s park at Palathuru Watta, was to provide social benefits to the general public. The cost is Rs.1.2mn and project was already completed.
9 Annual Report 2010
- Wellawatta Beach Park Stage II Improvement of Wellawatta Beach Park was to provide recreational facilities to the local & foreign tourists. Total estimated cost of the project is Rs.2.5mn and Rs.2.2mn funded by Ministry of Tourism Western Province Council. Project was already completed.
- Kalido Beach Park Development of Kalido Beach Park is providing Parking facilities and Pedestrian Walkway to the public. Total estimated cost is Rs.2mn and Rs.1.6mn funded by My.of Tourism Western Province Council. Project was already completed.
- Kesbewa Wewa Recreation Project The purpose of recreation of Kesbewa Wewa was to providing recreational facilities for cities and the general public protection & consideration of lake by the public. Total cost is Rs.2mn and Rs.1.58mn funded by My.of Tourism Western Province Council. Project was already completed.
- Memorial Beach Park Stage I at Moratuwa The total cost of the Moratuwa Modarawila Memorial Beach Park Stage I is Rs. 3.8mn and Rs.3mn funded by My. of Tourism Western province Council. My.of Tourism Western province approved the fund for stage II and UDA process the construction work.
- Community Park at Thalapathpitiya. Total cost is Rs.40mn and only children’s Park has been completed.
- Navinna Public Sports Complex –Stage II Overall design of the Navinna Public Sports Complex –Stage II was made by UDA and acquisition of Land 60%Completed. Total cost of the project is Rs. 200mn and project is to provide of Sports & Recreational facilities to the urban community.
- Side Park at Thalawathugoda Road Total cost is Rs. 20mn and Rs.1.8mn funded by SLLR & DC. 50% of canal dredging work is completed, (5% of whole project completed)
- Preparation of Public Outdoor Recreation Space (PORS) PORS Plans is for following areas to provide environmental, physical and mental benefits to the public.
- Attanagalla Urban Area - Mulleriya-Kotikawatta PS Area - Biyagama PS Area - Godakawela Urban Area - Embilipitiya Urban Area - Warakapola Urban Area
10 Annual Report 2010
- Streetscape & Liner Park Project at Denzil Kobbekaduwa Mw., Battaramulla For the purpose of City beautification and social benefits to the general public, UDA carried out this project and funded by Ministry of Environment Rs. 52mn and Rs.2.4 Mn received as UDA consultancy fees. The project was successfully completed.
- Kelaniya commercial development Purpose of this development is to Town Expansion. Total cost is Rs. 16.5mn and Rs. 10.1mn funded by Kalaniya Pradeshiya Sabha. 90% of development was completed.
- Play Ground at Avissawella
This project was funded by Dept. of Sport and project was completed.
- Administrative Complex at Horana For the purpose of providing new Administrative building with facilities to the public, UDA carried out this project. Total cost is Rs.275mn and funded by My. of LG&PC. Project designs were completed at the present.
11 Annual Report 2010
CENTRAL PROVINCE
Construction of a Bus Stand with Commercial & Office facilities at Goodshed, kandy funded by the Central Province Passenger Transport Authority to minimized Traffic congestion by utilizing the entire ground area for the busses and passengers and the upper floor for commercial activities by linking pedestrian paths to the upper level from other areas of the town using the existing topography. Estimate cost is Rs. 480mn for stage I and 5% of construction was completed.
Bus stand & shopping Complex at Ethgala, Nawalapitiya funded by Ganga Ihala Korale Pradeshiya Sabha to Provide a proper bus stand for parking on buses through Gampola - Nawalapitiya road with infrastructure facilities for commuters and neighboring community. Estimate cost is Rs. 23Mn and total financial afford by UDA.
Shops at Dalada Veediya, Kandy - improve to the facades of the existing building along lower section of Dalada Veediya. Estimate cost is Rs. 10mn and Rs.3mn of the cost afford by UDA.30% of construction was completed.
SOUTHERN PROVINCE
- Redevelopment of Central bus stand –Galle To provide better transport facilities for passengers and achieve a planned development in the city centre are purposes of this project. Total cost is Rs.281mn approximately and funded by Galle MC. Pilling completed and work is in progress at the present.
- Orroppuwatta office & shopping complex – stage 1 For the purpose of complex is to provide fully fledge commercial facilities for the people, increase income levels in Galle MC and achieve planned development. Total cost is Rs.375mn approximately and funded by Galle MC, UDA and District Secretarial. Plans are already prepared and project under discussion at the present.
- Commercial building at Orroppuwatta For the purpose of relocate of Tsunami affected traders at Orroppuwatta to provide fully fledge commercial facilities for the people, increase income levels in Galle MC and achieve planned development. Total cost is Rs.136mn approximately and funded by Galle MC, UDA and District Secretarial. Plans are already prepared and project under discussion at the present.
- Galle Beach Park Total cost of the Galle Beach Park is Rs. 195mn and it provides sports facilities to Don Pedric School children /students of Technical College & general public. Design & BOQ completed at the present.
12 Annual Report 2010
NORTH WESTERN PROVINCE
Client name Type of development Total cost Present position Achievement / Benefit estimate (Rs) Cost % of incurred by completion UDA (Rs)
Pannala Construction of 85.25 Mn 85.25 Mn 90% Pannala Pradeshiya Sabha Agreed Pradeshiya Multifunction building at to the pay 2% of total estimated Sabha Makandura. cost to the UDA as the total consultancy fees and Pannala Pradeshiya Sabha has released Rs.300,000.00 to the UDA as part of the consultancy fees. Galgamuwa Construction of market 47Mn 47Mn 60% Construction by project division Pradeshiya building at Galgamuwa. Head office. Sabha
Galgamuwa Construction of bus stand 15.8Mn 15.8Mn 75% Total consultancy fees to the UDA Pradeshiya & shops at Galgamuwa. for the architectural consultancy Sabha services is Rs.637,500.00 Galgamuwa Pradeshiya Sabha has already paid 100,000.00 to the UDA as a part payment Maho Construction of bus stand 54Mn 54Mn 40% Maho Pradeshiya Sabha has agreed Pradeshiya & shops at Maho. to pay 1.25% +Rs.50,000/= to the Sabha UDA for the Architectural Consultancy service. Anamaduwa Bus stand & shops at 42Mn 42Mn 40% Anamaduwa Pradeshiya Sabha has Pradeshiya Anamaduwa. agreed to pay 1.25% +Rs.50,000/= Sabha to the UDA for the Architectural Consultancy service.
Nikaweratiy Construction of bus stand 17.6Mn 17.6Mn 75% Conducted by project division a Pradeshiya & shops at Nikaweratiya. head office. Sabha
Maho Children park 2.9Mn 2.4Mn 95% Maho Pradeshiya Sabha has agreed Pradeshiya to pay 2% of the total estimated Sabha cost to the UDA as Consultancy service.
UVA PROVINCE
Bus Stand at Bandarawela Estimate Cost Rs. 700mn Funded by Bandarawela UC and UDA earn Rs. 0.9mn though consultancy fee.
Economic Center at Bandarawela Estimate Cost Rs. 450mn Funded by Bandarawela UC and UDA earn Rs. 0.7mn though consultancy fee.
13 Annual Report 2010
Town Developments
WESTERN PROVINCE
- Kottawa Town Development The purposes of the project were to develop the town, reduce the congestion within the town and minimize the traffic congestion with the connection of Southern Highway. Total Estimated cost is Rs. 150mn and relocation was completed at the present.
- Hanwella Pola Phase I Total estimate cost for Land filling work for proposed Pola Phase I at Hanwella was Rs. 26.2 mn and Rs.12mn was funded by General Treasury. 75% of development was completed at the present.
- Homagama Bus Stand Construction of bus stand & commercial complex stage I at Homagama is completed 85% of project. Estimated cost is Rs. 68mn and funded by WPPRPTA.
CENTRAL PROVINCE
Area Client Name Type of Development Total Present Position Achievement/ Benefit Cost Cost % of Estimate incurred completion (Rs.) by Client (Rs.) Peradeniya Developer New Town Development 1500Mn 37.1Mn 10% A new town will be project at Iriyagama, (Stage i) constructed close to Peradeniya. peradeniya where no land is available for expansion of the existing town to cater to the future demand. The proposed town will be a solution to stop the haphazard development and also minimize the flooding problem of the area.
Dambulla Administrative Complex 52 52 100% Administrative function in one location Dambulla Palagala p/sabha Gammeddha Development 12 12 99%
Dambulla Divisional Bus Stand Development 35 35 100% Secretary Naula Kandy District City Centre Development 350 Design Town beautification Social Secretary Kandy proposal Development completed
14 Annual Report 2010
EASTERN PROVINCE
Area Client Name Type of Total Cost Present Position Achievement/ Benefit Development Estimate (Rs.) Cost % of incurred by completion UDA/Client (Rs.) Kantale Kantale Leelatne play 86 million 17 million 20% Works stopped due to p/sabha ground non availability of funds.
Kantale Kantale Town centre Works stopped due to p/sabha development non availability of funds. a. Pola 25 million 25 million 100% b. Bus stand 69 million 41 million 60% c. Retail shop 22 million 13 million 60% d. Retail shop stage II 3 million 8 million 60% 129 million 87 million
Kantale Kantale Retail Shops, Bus 22.0 90% Improvement to town p/sabha Stand, Leelarathna 76.0 55% centre Play Ground 86.0 10% Reduce Traffic
SOUTHERN PROVINCE
Area Finance by Type of Development Total Present Position Achievement/ Benefit Cost Cost % of Estimate incurred by completion (Rs.) Client (Rs.)
Galle MC UDA Mixed development 500 - Increase revenue project at Karapitiya (Approx) - To provide fully fledge commercial and health facilities in the region
Galle MC UDA Administrative 1800 Perimeter To provide better Commercial Complex (Approx) survey administrative at Beligaha Junction completed facilities for the people and survey plan prepared. Galle MC Guide lines for 2mn Completed maintaining the Historic, Architectural and urban design characteristics of existing and new developments within Galle MC
15 Annual Report 2010
Area Finance by Type of Development Total Present Position Achievement/ Benefit Cost Cost % of Estimate incurred by completion (Rs.) Client (Rs.)
Galle MC Coast Beach Park Galle 14 mn Plans To provide better Conservation (Approx) Completed recreation facilities to Department local & foreign Galle MC visitors
Radampola Commercial Complex 8.0mn 8.0mn Completed Improvements to Small Town
Consultancy Services providing during the year
WESTERN PROVINCE
- Artificial Hockey Turf at Reid Avenue Purpose of construction a new turf which was funded by Dep. Of Sport, meet international Hockey standards. Total estimated cost is Rs. 8.2mn and UDA earn Rs. 1.3mn through consultancy fee. 80 % of construction was completed.
16 Annual Report 2010
- Hostel & Sport Hall at Reid Avenue The project which was funded by Dept. of Sport completed 50% of constructions. Total estimated revenue is Rs. 11mn and already received the same.
- Divisional Secretary Building Maharagama Purpose of construction is to provide new facilities with space to the public. Total estimated revenue is Rs. 4.3mn and project was already completed.
17 Annual Report 2010
Other Town Development in Western Province
Client name Type of Total Present position Achievement / benefit development Revenue estimate Consultancy % of fee paid by completion (Rs.mn) Client (Rs.mn) Seeduwa UC Library Building 0.219 0.219 80%
WPPRPTA Bus Stand 1.4 82% Town expansion
My. of Extension to the 0.3 25% LG&PC Auditorium of the Ministry Dept. of Payagala PIO Office 0.2 0.2 50% Fisheries
CENTRAL PROVINCE
Client name Type of Total Present position Achievement / benefit development Revenue estimate Consultancy % of fee paid by completion (Rs) Client (Rs)
Gangawata Construction of 380,000.00 100,000.00 10% An office building with modern Korale Pradeshiya Sabha facilities. Pradeshiya office building at Sabha Ampitiya,Kandy.
Central Construction of bus 810,000.00 200,000.00- 10% Providing of a proper bus stand with Province stand, Commercial infrastructure facilities. Passenger & Office facilities at Transport Deltota,kandy. Authority Sri Lanka Preparation of 100,000.00 100,000.00 100% Development of the coastal belt at Tourism Tourism Plan for Kuchchaveli within the guide line of Development Kuchchaveli in UDA,CCD,CEA,and RDA ect. Authority Trincomalee District. District Project Management 6,157,024.82 4,465,430.85 90% A fully equipped Secretariat Building Secretary – Services for for Nuwara Eliya. Nuwara Construction of the Eliya District Secretariat Building at N’ Eliya.
18 Annual Report 2010
NORTH WESTERN PROVINCE
Client name Type of Total Present position Achievement / benefit development Revenue estimate Consultancy % of fee paid by completion (Rs) Client (Rs)
Pannala Construction of 1,384,005.00 300,000.00 90% Pannala Pradeshiya Sabha Agreed to Pradeshiya Multifunction the pay 2% of total estimated cost to Sabha building at the UDA as the total consultancy fees Makandura. and Pannala Pradeshiya Sabha has released Rs.300,000.00 to the UDA as part of the consultancy fees.
Galgamuwa Construction of 637,500.00 - 60% Construction by project division Head Pradeshiya market building at office. Sabha Galgamuwa.
Galgamuwa Construction of 247,500.00 100,000.00 75% Total consultancy fees to the UDA for Pradeshiya bus stand & shops the architectural consultancy services Sabha at Galgamuwa. is Rs.637,500.00 Galgamuwa Pradeshiya Sabha has already paid 100,000.00 to the UDA as a part payment
Maho Construction of 725,000.00 - 40% Maho Pradeshiya Sabha has agreed to Pradeshiya bus stand & shops pay 1.25% +Rs.50,000/= to the UDA Sabha at Maho. for the Architectural Consultancy service. Anamaduwa Bus stand & shops 575,000.00 - 40% Anamaduwa Pradeshiya Sabha has Pradeshiya at Anamaduwa. agreed to pay 1.25% +Rs.50,000/= to Sabha the UDA for the Architectural Consultancy service.
Nikaweratiya Construction of 270,000.00 - 75% Conducted by project division head Pradeshiya bus stand & shops office. Sabha at Nikaweratiya . Alawwa Proposed bus stand 1,200,000.00 10% Alawwa Pradeshiya Sabha has agreed Pradeshiya development at to pay 2% of the total estimated cost to Sabha Narammala. the UDA as the Architectural Consultancy fees (total architectural Consultancy fees -2.35M). Alawwa Proposed bus stand 2,350,000.00 - 10% Alawwa Pradeshiya Sabha has agreed Pradeshiya development at to pay 2% of the total estimated cost to Sabha Alawwa. the UDA as the Architectural Consultancy fees (total architectural Consultancy fees -1.2M).
19 Annual Report 2010
Other Services provided during the year 2010 (Mapping, Design Plans)
Type of Project Funds Provided Present Position/ Service provided Development Plan for Jaffna MC/ NPC/ Task Completed the Jaffna MC area Force Development Plan
Mankulam Regional Urban NPC/ Task Force Completed the Centre Development Development Plan
Mannar Urban Mannar UC/ UDA Draft Plan Development area
Integrated Strategic CEA/ DMC/ UNDP Provided GIS input to Environmental Assessment develop ISEA and identification opportunities Green City Development UDA/ 3-K City Project Proposal completed for project water based project at Mulleriyawa Digital Mapping for My. of Economic/ SL Developing Digital Gampaha District Army Mapping
Haputale UC area Haputale UC/ UDA Draft Plan Development Plan
Monaragala Development Monaragala Pradeshiya Draft Plan area Plan Sabha/ UDA
Mullaitivu Development Mullativu Divisional Draft Plan Plan Secretary/ UDA
Land use Survey City of UDA Initial data extraction Colombo
Pilikottuwa and Varana WPC/ UDA Completed Historical area
20 Annual Report 2010
Leased out properties of Lands and Buildings of the Authority
LAND LEASE OUT FOR COMMERCIAL DEVELOPMENT - 2010
District Lessees Extent in Total Total paid Balance Perches Consideration (Rs.) Receivable (Rs.) (Rs.) Colombo Homagama multi 2R 0.94P 21 Million 8 Million 13 Million purpose Co-operation society Ltd Ratnapura Bank of Ceylon 40P 12.9 Million 12.9 Million
Rathnapura Commercial bank 39.89P 9.5 Million 9.5 Million
Puttalama Bank of Ceylon 79.83P 8671/- 8671/-
LAND/BUILT UP PROPERTIES ALLOCATED FOR OTHER PURPOSES - 2010
District Lessees Extent Total Total paid Balance in Consideration (Rs.) Receivable Perches (Rs.) (Rs.) Colombo JSS photographic 21.24P 130,000/- per 130,000/- - training school annum
Colombo Bamunuarachchige 0.3399P 1.3 Million 1.3 Million Don Upali - Senaviratna
Colombo Mirisavetiya Maha 30P 119,000/- per 119,500 Annual rental of viharaya annum Rs.119,500/- Anuradhapura
Colombo Buddisht Cultural 62P 1,000,000/- per 1,000,000/- Annual rental of centre Dehiwala annum Rs.119,500/-
Colombo Pamunuwa Grama 10P 24,000/- per 24,000/- Sanwardana annum - Samithiya
Colombo Udahamulla 15P 90,000/-(convert 90,000/- Mrs. Deepali to transfer deed) - Wijesundara
Rathnapura Sri Lanka bureau 80.00P 6.9 Million 6.9 Million of foreign - employee
Anuradhapura Ruwanweli 30P 62,500/- per 62,500/- - Maha seya temple annum of Anuradhapura
21 Annual Report 2010
ALLOCATED ON OUTRIGHT BASIS
District Number Extent in Total Total paid Balance Of leases Perches Consideration (Rs.) receivable (Rs.) (Rs.) Colombo Outright sale Shop (Peoples 1,070,000/- 1,070,000/- park) Colombo Outright sale Shop (Peoples 3,770,005/- 3,770,005/- park) Colombo Outright sale Shop (Peoples 1,300,232/- 1,300,232/- park) Colombo Sri Lanka 88P 3,234,330/- 2,395,800/- 838,530/- Telecom
RELOCATION OF HOUSES/ BUSINESS PREMISES
Urban Development Authority has relocated Houses / Business premises in the following area with 21 nos of units and Rs. 2,550,364.00 earn during the year 2010.
1. Colombo -Wickramasinghepura Battaramulla Housing scheme (4 nos of units) -Modarawila housing scheme (1 nos of units) -St. James street housing scheme (2 nos of units – Rs. 504,040.00) -Peliyagoda housing scheme (4 nos of units – Rs. 37,631.00) -Wadullawatta housing scheme Kolonnawa (1 nos of units – Rs. 10,000.00) -Welsiripura housing scheme Madiwela (2 nos of units – Rs. 260,568.00)
2. Kandy -Deiyannewela housing scheme (4 nos of units – Rs. 439,075.00) -Gatambe housing scheme (1 nos of units – Rs. 513, 800.00) -Dangolla housing scheme (2 nos of units – Rs. 785,250.00)
ACQUISITION/VESTING OF LANDS DURING THE YEAR
District Project Extent in Total estimate Total compensation Perches value paid (Rs.) (Rs.) Colombo Acquisition of land for housing 127.64 - 1,030,501.08 (Interest) along Kirullopone D.M. Colombage Mw (10/2/80)
Colombo Acquisition of land for 108.73 - 17,500,000 development at Kirullopone off station Rd.
Colombo Acquisition of land for 49.1 - 7,600,000 development at Kirullopone off station Rd.
Colombo Acq. of land for the Moratuwa 85P 51M town development 51M (+ Interest)
22 Annual Report 2010
District Project Extent in Total estimate Total compensation Perches value paid (Rs.) (Rs.) Colombo Vesting of state land in mental 8000P 1600M Nominal land value hospital at Angoda
Colombo Vesting of state land in fever 2720P 544M Nominal land value hospital at Angoda
Kegalle Acq. of land for Rambukkana 813.51P 1.8M 1.8M (+ Interest) town development
Anuradhapura Vesting of state land for office 50P 2.5M 2.5 Nominal land value building at North Central Pro.
Hambantota Acq.of additional land for beach 993P 23.0M 20.0M (+ Interest) park at Hambantota
Hambantota Vesting of land for commercial 4323.5P 130M Nominal land value Deve. At Hambantota
Hambantota Vesting of land for relocation of 4527P 45M Nominal land value effected families at Hambantota
Hambantota Vesting of land for Hambantota 993P 50M Nominal land value beach park at Hambantota
LEASE OF LANDS
Rs. 56,556,657.71 has been earned from lease of following lands.
1 Mahenawatta - Homagama 32,877,000.00
2 Rathnapura 112,369.31
3 Homagama town 1,674,181.60
4 Balangoda 14,362,498.80
5 Kadawatha 7,500,000.00
6 Padukka 30,608.00
Rs. 56,556,657.71
23 Annual Report 2010
Physical Developments
Following major physical developments are made by UDA during the year 2010.
Area Type of Total Cost Present Position Achievement/ Development (Rs.mn) Benefits Cost incurred % of by UDA completion (Rs.mn) Fort Mixed 22 Billion 0.8 Hotel room offices, Transworks Parking to the city House Land Pettah Mixed 25.0 1.0 25% Office and Parking Charmers space to the city Grannary site Slave Island Redevelopment 20.0 - 2% City beautification and upgrade living standards
Dadalla Recreational 400.0 25 Stage I complete
Tangalle Commercial 80 12 30% Organize the town centre &
Other physical development
- Regeneration of glory at fort for promotes the tourism. Total cost of the project is Rs.30mn and 20% of project was completed.
- Badulla area Development for commercial & social development. Total cost is 59.9mn and 90% was completed. Funds from bus stand development project at Uva.
- Bibile pola & Ampara development. Total cost is Rs.1mn and Rs.10mn respectively and projects was already completed during the year 2010.
- Arippu & Pandaraweli area development for commercial purpose in a two service town. Total cost for development is Rs.20mn and 75% already completed.
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HUMAN RESOURCES MANAGEMENT
Employees of Urban Development Authority as at end of the year 2010
Category of Staff No. of Employee
Senior Manager 16 Manager 169 Junior Manager 52 Enf. / Oper./ Ext./ 311 Management Assistant Tec 59 Management Assistant Non Tec 640 PL Skilled 96 PL Semiskilled 14 PL Unskilled 414 1771
Employees of UDA
1%
10% 23% 3% Senior Manager Manager Junior Manager
18% Enf. / Oper./ Ext./ 1% Management Assistant Tec 5% Management Assistant Non Tec
PL Skilled 3% PL Semiskilled PL Unskilled
36%
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Summary of the Staff Growth of Urban Development Authority as at end of the year 2010
Year Category Executives Non Executive Others 2006 92 714 848 2007 88 789 749 2008 77 775 868 2009 69 911 901 2010 57 870 844
Staff Growth
1000 900
N 800 o 700 o 600 f Others 500 Non Executive S t 400 Executives a 300 f f 200 100 0 2006 2007 2008 2009 2010
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CORPORATE GOVERNANCE
Board of Management and corporate management of Urban Development Authority (UDA) believe and are committed to good governance system and it also ensure that Authority is controlled and managed for purposes of transparency and accountability with a view to be responsive to people’s needs. As a government owned nonprofit oriented enterprise the Urban Development Authority should ensure economic development and better standards and quality of life of the public. Regulations, rules, circulars and directives are aimed at on financial discipline and controls; it has been the practice that many of these are observed. These guidelines are helpful to avoid recurrence of non-compliance with regulations, rules, circulars and directives in the future and to improve the performance of the Authority through Best Practices in Corporate Governance. The main objective of following these guidelines is to make the regulatory framework a simplified working document, summarizing existing procedures and removing those that are obsolete and creating new or modified procedures, to meet the current developments and trends for an effective financial management system for good governance in the Authority. This statement below describes some of the structures, process and procedures of governance at the UDA.
Board of Management Under the Urban Development Authority law the Chairman of the Authority who is appointed by the relevant Minister in Charge, also Chairman of the Board of management. The Board of Management also appoints by the same Minister. Among the others of the Board of Management is responsible for the followings:
Formulation of policies and strategies and monitoring successful implementation thereof Approval of the Budget, Action Plan and Corporate Plan Approval of Annual and Interim Financial Statements and Annual Report Ensuring compliance with applicable laws, regulations and principles of Corporate Governance
Overseeing the activities and affairs of the Authority Decisions on major capital investment and expansions Appointing of members to the Board of Subsidiaries
The Secretary of the Board of Management is the Director General of the Authority and his role in the Board as follows,
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Circulating notice, minutes of Board meeting and board papers together with the other documents.
Follow up decision taken on the board. Providing information to the Board.
18nos of meeting were held during the year 2010, while special Board meetings were convened as and when required. (to approve Annual Report, Financial Statements, Budget, Audit Report etc.) Following statements and reports were submitted to the Board every month to monitor and find defect of senior management and staff of the Authority responsible for their assigned functions and also ensure that transparency is achieved.
Performance Statement in financial and physical items. Operating Statement for the month Cash Flow Statement for the month Liquidity position and borrowings
And also following major decision made by the Board of Management during the year 2010. 1. Obtaining the service of the UDA staff on contract basis after retiring at 57 years considering the particular requirement of that officer’s service at UDA. 2. Proposed UDA Debenture Issue – Rs. 5 Billion to 10 Billion 3. Construction of 2000 Low-cost housing units at Dematagoda, Palangasthuduwa, 66 Watta, 54 Watta and Colombo Suburbs 4. Policy on Mortgages and policy on assignments and Subleases. 5. Terms of Reference- Board Land Development & Management Committee 6. Re-development of CCC land at Colombo 02. 7. Appointment of new Board of Directors to the Water’s Edge Ltd.
Every quarter and half year submits Financial Statements to the Board to monitor the financial position of the Authority.
Audit &Management Committee The Audit & management Committee ensures and overseeing financial reporting, risk management, internal controls, compliances, ethics, management and internal audit. It is also ensures for maintaining and appropriate relationship with the Auditor General. The committee was held three times during the year 2010. The committee Secretary and members are as follows: 1. Dr. B. M. S. Batagoda – Chairman of the Committee & Board Member 2. Mr. L.A.P. Harshana De Silva - Board Member 3. Mr. K.E.V.N. Fernando – Secretary of the Committee & Director General (Actg.) UDA
28 Annual Report 2010
Tender Board The Authority has Tender Boards call Major and Minor to deal with all procurements of goods and services in terms of the Guidelines on Government Procurement Procedures.
Training and Scholarship Committee Because of training is an important component of personnel development, to improve the efficiency and productivity of the employee, Authority evaluates and formulates the training needs of the organization locally and abroad. Human Resources Management ensures the organizing of seminars and other programs with the instruction of such Committee. Training & Scholarship Committee comprise of Senior Management of the Authority. The Committee members are as follows: 1. Mr. K.E.V.N. Fenando - Director General (Acting) 2. Ms. Wasantha Geeganage - Dy. Director General (Finance) 3. Ms. I.S. Weerasooriya - Dy. Director General (Southern Province) 4. Ms. T.K. Dayananda - Perf. Director (HRM)
Board of survey Annual Board of Survey and special Board of Survey have been done to carry out verification of fixed Assets and inventory at Stores. It was helpful to assets management like replacing & disposing items, deemed to be redundant/ obsolete etc.
Financial Disclosures The Board of Management is responsible for presenting Financial Statements that provide a true and fair view. The Financial Statements are prepared in accordance with the requirements of the Sri Lanka Accounting Standards.
Internal controls The Board is responsible for t he operation of an adequate system of internal control and the Audit committee verses the review and assessment of internal controls implemented at the Urban Development Authority.
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AUDITOR GENERAL’S REPORT
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FINANCIAL STATEMENTS
URBAN DEVELOPMENT AUTHORITY CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31ST DECEMBER, 2010
Group Authority
31st December 31st December 31st December 31st December 2010 2009 2010 2009 Note Rs. Rs. Rs. Rs.
Revenue 2 1,154,274,061 788,787,377 845,425,793 740,495,445
Other Income 3 279,385,149 210,491,100 227,927,954 218,972,866 1,433,659,210 999,278,477 1,073,353,747 959,468,311
Sales & Marketing Expences (19,373,351) - - - Administration Expenditure 4 (1,482,985,180) (1,228,405,374) (1,188,818,241) (1,163,444,822) Financial Cost 5 (11,253,869) (11,285,369) (5,308,373) (11,442,621) Other Expenses 6 (24,994,858) (20,423,560) (22,572,270) (18,240,811)
Profit From Operations (104,948,048) (260,835,826) (143,345,136) (233,659,943)
Government Grants 14,422,001 14,422,001 14,422,001 14,422,001 Levy paid to Consilidated Fund (8,360,512) - (8,360,512) -
Profit / (Loss) Before Taxation (98,886,559) (246,413,825) (137,283,647) (219,237,942)
Income Tax Expenses 7 (23,558,002) (13,430,692) (6,376,074) (12,722,155)
Profit/ (Loss) for the Year (122,444,561) (259,844,517) (143,659,721) (231,960,097)
-
Figures in brackets indicate deductions. The Accounting Policies and Notes on pages 6 to 20 form an integral part of these financial statements.
51 Annual Report 2010
URBAN DEVELOPMENT AUTHORITY CONSOLIDATED BALANCE SHEET As at 31st December 2010 Group Authority ASSETS Note 2010 2009 2010 2009 Rs Rs Rs Rs NON CURRENT ASSETS Net value of property, plant and equipment 8 3,203,515,050 2,746,719,527 3,069,122,084 2,617,284,474 Investments 9 206,762,341 206,762,341 551,759,911 551,759,911 Receivable from Subsidiaries 11 - - 1,685,798,258 723,921,245 Loan given to local authorities 131,213,739 148,671,960 131,213,739 148,671,960 Capital work in progress 2,501,402,370 1,142,988,201 1,192,422,659 923,078,093 Stock in trade 1,054,269,199 1,074,701,124 1,054,269,199 1,074,701,124 Investment in Rest Houses 12 14,070,425 14,070,425 14,070,425 14,070,425 #REF! 7,111,233,124 5,333,913,578 7,698,656,275 6,053,487,232
CURRENT ASSETS Inventories 22,766,389 8,377,387 8,081,737 8,189,758 Debtors 13 1,494,650,689 1,106,691,759 1,382,599,460 1,154,717,747 Deposits, prepayments & advances 14 821,770,296 950,624,546 709,117,278 716,741,712 Cash & cash equivalents 15 10,458,389,043 339,894,538 10,248,598,688 189,428,152 12,797,576,416 2,405,588,229 12,348,397,163 2,069,077,369 TOTAL ASSETS 19,908,809,540 7,739,501,807 20,047,053,438 8,122,564,601
EQUITY & LIABILITIES
CAPITAL & RESERVES
Stated Capital 16 100,000,000 100,000,000 100,000,000 100,000,000 Net government contribution 17 1,058,922,898 1,008,594,899 1,058,922,898 1,008,594,899 Externally provided equity 1,158,922,898 1,108,594,899 1,158,922,898 1,108,594,899 Capital reserves 18 8,462,785 8,462,785 8,462,785 8,462,785 Revenue reserves 19 55,000,000 55,000,000 55,000,000 55,000,000 Accumulated surplus / (dificit) 20 (1,362,053,774) (1,262,886,880) (1,253,873,241) (1,110,213,520) (139,668,091) (90,829,197) (31,487,558) 61,844,163 NON CURRENT LIABILITIES NSB Loan 22 1,388,699,092 444,402,322 1,388,699,092 444,402,322 Debenture 23 10,000,000,000 - 10,000,000,000 - UDSP Loan 24 217,024,178 234,482,400 217,024,178 234,482,400 Deferred Lease Rent 25 3,864,422,923 3,750,592,014 4,187,572,923 4,080,642,013 Accrued compensation on lands 781,848,606 778,955,091 781,848,606 778,955,091 Key Money Received On Project Developments 24,618,991 107,718,536 24,618,991 107,718,536 Provision for Gratuity 216,183,834 210,785,398 213,479,945 208,218,367 Payable to Asia Pasific Galf Course Ltd 419,163,210 406,483,000 16,911,960,835 5,526,935,760 17,219,726,735 5,854,418,728 CURRENT LIABILITIES Expense & other creditors 26 1,433,551,956 733,375,553 1,169,809,794 718,314,802 Current portion of debenture loan - 25,000,202 - 25,000,202 Service charge for Development permit fund - 13,837,430 - 13,837,430 Deposits & advances 27 1,643,513,421 1,342,016,054 1,638,725,421 1,337,228,053 Bank overdraft 28 59,451,418 189,166,005 50,279,045 111,921,223 3,136,516,796 2,303,395,243 2,858,814,261 2,206,301,710 TOTAL EQUITY & LIABILITIES 19,908,809,540 7,739,501,807 20,047,053,438 8,122,564,601
(0) (0) (0.38) (0) Significant Accounting Policies and Notes to the Financial Statements Disclosed on Pages 06 to 20 are integral part of these Financial Statements. 0 (0) Signed by :Mrs. Vasani Manodara Actg. Director (Finance) Date 12/9/2011
Signed by: Mr. Janaka Kurukulasooriya Chairman Date 12/9/2011
52 Annual Report 2010
URBAN DEVELOPMENT AUTHORITY STATEMENT OF CHANGES IN EQUITY For the year ended 31st December 2010
Statement Of Changes In Equity for the Authoriry
Stated Net Govt Capital Revenue Retained Total
Capital Contribution Reserve Reserve Surplus
Rs. Rs. Rs. Rs. Rs. Rs.
Balance at 1st January 2008 100,000,000 1,023,016,900 8,462,785 55,000,000 (878,253,423) 308,226,262
Grants written Back to Income - (14,422,001) - - - (14,422,001)
Adjustments
Expenditure Over Income For The year - - - - (231,960,097) (231,960,097)
Balance at 31st December 2009 100,000,000 1,008,594,899 8,462,785 55,000,000 (1,110,213,520) 61,844,164
Balance at 1st January 2009 100,000,000 1,008,594,899 8,462,785 55,000,000 (1,110,213,520) 61,844,164
Grants written Back to Income - (14,422,001) - - (14,422,001)
Accounting Adjustments 64,750,000 64,750,000
Expenditure Over Income For The year - - - - (143,659,721) (143,659,721)
Balance at 31st December 2010 100,000,000 1,058,922,898 8,462,785 55,000,000 (1,253,873,241) (31,487,558)
Statement Of Changes In Equity for the Group
Stated Net Govt Capital Revenue Retained Total Capital Contribution Reserve Reserve Surplus Rs. Rs. Rs. Rs. Rs. Rs.
Balance as at 1st January 2009 100,000,000 1,023,016,900 8,462,785 55,000,000 (1,003,024,449) 183,455,235
Grants written Back to Income - (14,422,001) - - - (14,422,001)
Expenditure Over Income For The year - - - (259,862,431) (259,862,431)
Balance as at 31st December 2009 100,000,000 1,008,594,899 8,462,785 55,000,000 (1,262,886,880) (90,829,197)
Balance as at 1st January 2010 100,000,000 1,008,594,899 8,462,785 55,000,000 (1,262,886,880) (90,829,197)
Adjustment to Waters Edge Profit 23,277,667 23,277,667
Accounting Adjustment 64,750,000 64,750,000
Grants written Back to Income - (14,422,001) - - - (14,422,001)
Expenditure Over Income For The year - - - (122,444,561) (122,444,561)
Balance as at 31st December 2010 100,000,000 1,058,922,898 8,462,785 55,000,000 (1,362,053,774) (139,668,092)
53 Annual Report 2010
URBAN DEVELOPMENT AUTHORITY STATEMENT OF CASH FLOW For the Year Ended 31st December 2010
2010 2009 Rs. Rs. CASH FLOWS FROM OPERATING ACTIVITIES
Net loss before Income Tax (137,283,647) (219,237,942)
Add: Provision for bad debts 68,150,640 62,030,671 Depreciation 83,353,185 69,046,105 Provision for gratuity 19,444,575 23,475,274 Reduction of risk of Recovery of PWCC loan 13,522,611 184,471,011 24,653,423 179,205,473 47,187,363 (40,032,469) Less : Rent 477,590,793 372,529,178 Profit on sale of Land & Buildings 5,355,764 81,281,328 Written Back portion of Govt Grants 14,422,001 14,422,001 Dividend 18,226,947 32,764,062 Interest 44,666,887 560,262,393 61,001,713 561,998,282
OPERATING SURPLUS/(DEFICIT) BEFOR WORKING CAPITAL CHANGES (513,075,030) (602,030,750) WORKING CAPITAL CHANGES Increse/(decrese)in trade & other creditors 450,771,614 126,430,045 (Increse)/decrese in debtors (212,050,905) 99,167,402 (Increse)/decresein inventories,deposites 4,946,945 (205,228,414) Increse/(decrese)in Advances & Deposites 199,989,706 236,258,598 443,657,360 256,627,631 CASH GENERATED/(USED) FROM/TO OPERATIONS Rent Received in Cash 426,334,243 303,725,512 Income Tax paid (106,563) (191,991) Premia on Land leased out 174,249,030 266,558,241 Gratuity paid (14,182,998) (13,378,879) Key money rceived (83,099,545) - NET CASH PROVIDED BY OPERATING ACTIVITIES 503,194,167 556,712,883 CASH FLOWS FROM INVESTING ACTIVITIES Dividend Received 18,226,947 37,706,441 Debenture Isseus 10,000,000,000 Interest Received 19,515,450 39,282,169 Purchase of Fixed Assets (9,324,364) (33,362,569) Increase / Decrease Lands & Buildings (250,878,625) (195,037,375) Compansation paid on land Acquisition (29,157,559) (70,141,378) Investment in subsidiary Company (975,399,624) (603,950,061) Short term Investments (495,166,437) 49,103,558 Sale proceeds from sale of Land & Buildings 8,594,851 112,957,137 Net cash provided /(used) by investing activities 8,286,410,640 (663,442,080) CASH FLOWS FROM FINANCING ACTIVITIES NSB loan Received 944,296,770 444,402,322 Debenture redeemed (25,000,202) (50,000,000) Service charge for Development permit fund (13,837,430) (28,406,506) Net cash provided/(used)by financing activities 905,459,138 365,995,815
NET INCRESE IN CASH & CASH EQUIVALENTS 9,625,646,275 (86,136,501)
CASH & BANK BALANCE AT BEGINNING OF THE YEAR B 8,236,754 B 94,373,255
CASH & BANK BALANCE AT END OF THE YEAR A 9,633,883,029 A 8,236,754
(0) CASH & BANK BALANCE AT END OF THE YEAR A B Bank Over Draft (50,279,045) (111,921,223) Bank balance (Favourable) 66,747,588 18,052,425 Petty cash & Cash in Hand 497,925 355,550 Investment In REPO 9,616,916,561 101,750,001 9,633,883,029 8,236,754
54 Annual Report 2010
URBAN DEVELOPMENT AUTHORITY CONSOLIDATED CASH FLOW STATEMENT - For the Year ended 31st December 2010
2010 2009 Rs. Rs. CASH FLOWS FROM OPERATING ACTIVITIES
Net loss before Income Tax (98,886,559) (246,413,825)
Add: Provision for bad debts 69,086,589 62,030,671 Depreciation 107,906,325 90,288,645 Disposal loss 150,759 Provision for gratuity 20,081,098 24,273,324 Amortization of Leased Assets 288,333 197,513,104 288,333 176,880,974 98,626,545 (69,532,851) Less : Rent 528,750,822 415,493,958 Profit on sale of Land & Buildings 5,355,764 81,281,328 Written Back portion of Govt Grants 14,422,001 14,422,001 Dividend 18,226,947 32,764,062 Interest 36,239,870 602,995,405 52,519,948 596,481,296 Operating surplus/(deficit) befor working capital Changes (504,368,860) (666,014,147) working capital changes Increse/(decrese)in trade & other creditors 694,190,257 124,973,329 Increse/(decrese)in payable to APGCL 12,680,210 (Increse)/decrese in debtors (383,103,482) (147,655,425) (Increse)/decresein inventories,deposites 111,679,739 (430,821,782) Increse/(decrese)in Advances & Deposites 199,989,705 250,216,309 635,436,428 (203,287,569) Cash generated/(used) from/to operations Rent Received in Cash 483,788,731 352,985,860 Income Tax paid (7,351,988) (840,376) Premia on Land leased out 174,249,030 266,558,241 Gratuity paid (14,682,663) (13,432,804) Key money rceived (83,099,545) - Net cash provided by operating activities 552,903,565 605,270,921 CASH FLOWS FROM INVESTING ACTIVITIES
Dividend Received 18,226,947 37,706,441 Debenture Isseus 10,000,000,000 - Interest Received 15,668,577 30,722,432 Purchase of Fixed Assets (24,461,123) (33,739,109) Increase / Decrease Lands & Buildings (1,375,782,161) (275,535,684) Compansation paid on land Acquisition (29,157,559) (70,141,378) Short term Investments (576,862,751) 49,103,558 Sale proceeds from sale of Land & Buildings 8,594,851 112,957,137 Net cash provided /(used) by investing activities 8,036,226,782 (148,926,603) CASH FLOWS FROM FINANCING ACTIVITIES NSB loan Received 944,296,770 444,402,322 Debenture redeemed (25,000,202) (50,000,000) Service charge for Development permit fund (13,837,430) (28,406,506) Net cash provided/(used)by financing activities 905,459,138 365,995,816
NET INCRESE IN CASH & CASH EQUIVALENTS 9,625,657,054 (46,961,583)
CASH & BANK BALANCE AT BEGINNING OF THE YEAR B 127,147,643 128,419,941
CASH & BANK BALANCE AT END OF THE YEAR A 9,752,804,697 81,458,357
CASH & BANK BALANCE AT END OF THE YEAR A B Bank Over Draft (59,451,418) (189,166,005) Bank balance (Favourable) 82,143,398 70,693,208 Petty cash & Cash in Hand 8,651,978 400,500 Investment In REPO 9,721,460,739 245,219,940 9,752,804,697 127,147,643
55 Annual Report 2010
URBAN DEVELOPMENT AUTHORITY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year ended 31st December, 2010
1. CORPORATE INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1.1 CORPORATE INFORMATION 1.1.1 General Urban Development Authority is a body corporate, duly established on 6th September 1978 under the Urban Development Authority Law No.41 of 1978 enacted by the National State Assembly. The Head Office of the Authority is located at 06th Floor, Sethsiripaya, Battaramulla. 1.1.2 PRINCIPALE ACTIVITIES AND NATURE OF OPERATION The Urban Development Authority (UDA) is a multi-disciplinary organization engaged in urban planning and sustainable urban development in Sri Lanka.
1.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1.2.1 Statement of Compliance The financial statements have been prepared in accordance with Sri Lanka Accounting Standards (SLAS) adopted by the Institute of Chartered Accountants of Sri Lanka. 1.2.2 General Accounting Policies 1.2.2.1 Accounting Conventions The Financial Statements of the Authority comprising the Balance Sheet, Income and Expenditure Statement, Cash Flow Statement, Statement of Changes in Equity, Accounting Policies and Notes to the Accounts are prepared on the basis of the historical cost convention, and in conformity with generally accepted accounting principles and Accounting Standards issued by the Institute of Chartered Accountants of Sri Lanka. These principles and standards have been applied consistently with that of the previous year. No adjustments are made for inflationary factors affecting these Financial Statements. 1.2.2.2 Comparative Information The Accounting Policies have been consistently applied and are consistent with those used in the previous year. Previous Year's figures and phrases have been rearranged wherever necessary to conform to the current presentation. 1.2.2.3 Consolidation A. Basis of Consolidation The consolidated Financial Statements comprise those of the Urban Development Authority and its wholly owned subsidiaries of, Peliyagoda Warehouse Complex Co. Ltd., Urban Investment & Development Company (pvt) Ltd., Waters Edge Ltd and UDA Rest Houses Company Ltd and include the operational results, assets and liabilities of the Urban Development Authority and its fully owned subsidiaries. B. Financial Year The Authority and its subsidiaries have a common financial year, which ended 31st December except for Waters Edge Ltd in which the financial year ended 31st March. C. Intra Group Transactions All Intra - group balances, transactions and unrealized profits are eliminated on consolidation.
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URBAN DEVELOPMENT AUTHORITY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year ended 31st December, 2010
1.2.2.4 Investments in Subsidiaries Investments in subsidiaries are shown at cost in parent authority's financial statements. 1.2.2.5 Borrowing Costs As per the allowed alternative accounting treatment, under Sri Lanka Accounting standard No. 20 the borrowing costs that are directly attributable to the acquisition or construction of an asset are included in the cost of that asset. Such borrowing costs are capitalised as part of the cost of the asset when it is probable that they will result in future economic benefits to the enterprise and the costs can be measured reliably. Other borrowing costs are recognised as an expense in the period in which they are incurred.
1.2.3 ASSETS AND BASES OF THEIR VALUATION 1.2.3.1 Property, Plant and Equipment Cost The cost of Property, Plant and Equipment is the cost of purchases or constructions/installations together with any incidental expenses thereon. These are accounted for at cost less accumulated depreciation, which is provided for on the bases specified below: Depreciation The provision for depreciation is calculated on the cost of Property, Plant and Equipment so as to write off such costs over the estimated useful lives of the assets by equal installments as follows:
Buildings New Over a period of 50 years Buildings Old Over a period of 20 years Motor Vehicles Over a period of 5 years Furniture & Fittings Over a period of 10 years Office Equipment Over a period of 5 years Books and manuals Over a period of 4 years Plant and Equipment Over a period of 5 years
1.2.3.2 Investment in Companies Since the Cabinet decision was obtained to dispose the investment made in listed companies for the purpose of generating funds to Sethsiripaya stage ii , Investments made in Onally Holdings Ltd. and Colombo land Development Co. have been shown under Current Assets. Also The Cabinet has decided to establish a listed company for Ocean View Development Company to enable to dispose the U.D.A. shares.
1.2.3.3 Capital Work-In-Progress
A complete examination of all projects appearing as Work-In-Progress as at 31.12.2010 was carried out, and projects, which no longer could be categorized as Work-In-Progress, were transferred to the relevant accounts. However abandoned projects which have to be adjusted in account also have been shown under working progress.
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URBAN DEVELOPMENT AUTHORITY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year ended 31st December, 2010
1.2.3 ASSETS AND BASES OF THEIR VALUATION (contd.) 1.2.3.4 Other Assets
Inventories have been valued at cost
Debtors are shown at the net amount after making provisions for bad & doubtful debts amounting to Rs 734.3 Mn as follows.
Debtors against whom legal action has been taken 50% Terminated Tenants 100% Other Rent and Service Charge Debtors 5% Penalty on Rent, Fee for Use and Premia 90% Rest House Penalty 100%
1.2.3.5 Cash & Cash Equivalents Cash & cash equivalents includes cash in hand, petty cash imprests, deposits held at call with banks & other short term highly liquid investments like REPO. For the purpose of the cash flow statement cash and cash equivalents consists of cash in hand and deposits in banks, net of outstanding of bank overdrafts. Investments with short maturities (REPO) are also treated as cash equivalents. Cash flow statement is reported based on indirect method.
1.2.4 LIABILITIES (a) Net Government Capital Contribution Up to the year 1993, U.D.A. has received Rs. Mn.166 from General Treasury for the construction and maintenance of the Sethsiripaya complex and Rs. Mn.367 for the construction of Colombo Central Super Market. Complying with the Deferred Income Method of Sri Lanka Accounting Standard No 24, an action has been taken to write back the Grants to the Profit and Loss Account from the year 1993.The amount of Rs 14.4Mn shown in the Income and Expenditure statement is the written back portion of such grants for the year 2010. (b) Contingency Fund A contingency fund of Rs. 55 million has been created in the year 1997 to provide funds for unforeseen liabilities on lands acquired by UDA. No further provision has been credited to this
account nor has any payments been made from this account. (c) Compensation Payable Compensation payable on acquired lands has been calculated on the basis of estimated cost of land together with accrued interest. Since it is not possible to ascertain the year of payment (due date) accurately, 20% of the total estimated liability is shown under the Current Liabilities whilst the balance 80% is provided under Long Term Liabilities as at 31.12.2010.
(d) Defined Benefit plans - Provision for Gratuity Full Provision has been made on account of retiring gratuity from the first year of service of an employee in conformity with the SLAS No.16. Retirement Benefit Cost at half month’s salary for each year of service from the date of commencement of service. However, according to the payment of Gratuity Act.No.12 of 1983, the liability for gratuity to an employee arises only on completion of five years continued service with the Authority. Funds have been identified and invested in State Institution Temporary Surplus Fund for this purpose.
58 Annual Report 2010
URBAN DEVELOPMENT AUTHORITY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year ended 31st December, 2010
1.2. 4 LIABILITIES (contd.) (e) Defined contribution plans - Employees Provident Fund and Employee’s Trust Fund Employees are eligible for Employees’ Provident Fund Contributions and Employees’ Trust Fund Contributions in line with the respective status and regulation. The Authority contributes 15% and 3% of gross salaries of employees to Employees’ Provident Fund and Employees’ Trust Fund respectively which are externally funded.
(f) Contingent Liabilities No provision has been made in these accounts in respect of contingent liabilities arising in the normal course of business of the authority, in respect of legal action or other claims being made against the Authority. (g) Contingent Liabilities No provision has been made in these accounts in respect of contingent liabilities arising in the normal course of business of the authority, in respect of legal action or other claims being made against the
Authority. (h) Key Money received on Development Projects Key Money Received on Development of Client's and Treasury funded projects have been shown under Non Current Liabilities since this key money has to be setoff against the project development cost. (i) Deferred Lease Rent Rentals received in advance in respect of future lease periods are accounted under deferred lease Rent and shown under long term creditors. (j) Service Charge Development permit Fund (SCDP Fund) Funds collected in accordance with the gazette notification No.1459/20 of 23rd August 2006 has been accounted under capital reserve and this fund has to be utilized to extend the benefits of urban development to the urban poor livings in under served settlement to improve their living standard. From the year 2007 onwards SCDP Fund is shown under current liabilities.
1.2.5 Income & Expenditure Statement
1.2.5.1 Rent All monthly and annual rentals are accounted on an accrual basis while lease premia is accounted for the proportion that is applicable for the accounting year.
1.2.5.2 Fees for Service rendered All fees for services rendered except for fee for electricity, water charges, and Management of Rest House & Client projects are accounted on cash basis.
1.2.5.3 Interest Interest income other than interest on staff loans is recognized as revenue on accrual basis.
1.2.5.4 Dividends All dividends except the dividend receivable from State Institutions Temporary surplus Trust Fund are accounted on cash basis. No dividend has been received from investment made in Peliyagoda Warehouse Complex Company Ltd, Urban Investment & Development Company (pvt) Ltd, UDA Rest House Ltd, Ocean View Development Company (pvt) Ltd, Housing Development & Financial Corporation and Real Estate Exchange (Pvt) Ltd during the year.
59 Annual Report 2010
URBAN DEVELOPMENT AUTHORITY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Year ended 31st December, 2010
1.2.5.5 Gains or Losses on Disposal of assets Gains or losses of a revenue nature on the disposal of property have been accounted for in the income and expenditure account. Such Gains & Losses are determined by comparing the sale proceeds with caring Amounts of the Asset.
1.2.5.6 Service Charge Fund If a developer wants to construct buildings in excess of the Approved Floor Area ratio for that area, the developer is required to pay the UDA, a service charge to enable the UDA to enhance the infrastructure facilities in the area. Monies collected on account of this are credited to a Service Charge Fund.
1.2.5.7 Income tax Income tax amount shown in the Income & Expenditure Statement is the expected tax payable on the taxable income for the year, using tax rates enacted at the reporting date and any adjustment to the tax payable in respect of previous year.
60 Annual Report 2010
URBAN DEVELOPMENT AUTHORITY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2010 Group Authority 31st December 31st December 31st December 31st December Sub 2010 2009 2010 2009 Note Rs. Rs. Rs. Rs. 2. REVENUE Rent 2.1 528,750,822 415,493,958 477,590,793 372,529,178 Profit from sale of land & buildings 2.2 5,355,764 81,281,328 5,355,764 81,281,328 Feefor services rendered 2.3 223,353,431 261,113,274 223,353,431 261,113,274 Service Charge on highrise building 2,874,980 25,571,666 2,874,980 25,571,666 Service Charge on Development Permit 136,250,824 - 136,250,824 - Waters Edge Gross Profit 2.4 248,333,509 - - - Lanka Rest House Gross Profit 2.5 9,354,731 5,327,151 - - 1,154,274,061 788,787,377 845,425,793 740,495,445
3. OTHER INCOME
Interest Income 3.1 36,239,870 52,519,948 44,666,887 61,001,714 Dividend Received 3.2 18,226,947 32,764,062 18,226,947 32,764,062 Miscellaneous Income 3.3 224,918,332 121,035,141 165,034,120 121,035,141 Profit on Sale of Property, Plant & Equipment - 4,171,950 - 4,171,950 279,385,149 210,491,100 227,927,954 218,972,867 4. ADMINISTRATION EXPENDITURE Salaries & Wages 733,451,053 616,431,299 620,742,794 589,215,462 Contribution to EPF/ETF , Gratuity etc 101,648,647 93,188,753 88,079,727 89,239,069 Bonus 18,449,532 11,208,626 10,960,563 10,925,688 Unutilized leave 19,617,651 22,345,757 19,605,721 22,345,757 Welfare payment 21,332,744 6,647,038 7,121,423 6,322,870 Travelling 13,978,228 15,250,524 13,558,278 15,232,422 Office Supplies Requisites 49,935,059 56,268,072 41,775,816 48,097,501 Repaires and Maintenance 69,136,872 50,314,228 47,285,097 50,314,228 Electricity Charges 112,302,728 81,697,787 81,031,798 81,697,787 Telephone Charges 10,792,837 6,387,460 7,487,904 6,387,460 Charges for Water 12,110,382 7,052,961 7,030,555 7,052,961 Health & Sanitation Services 24,952,350 16,048,641 18,951,859 16,048,641 Rental & Hire Charges 22,063,683 24,841,947 21,213,183 24,841,947 Transport , Advertising , Security & Others 46,634,994 38,174,713 34,176,692 34,758,591 Depreciation 108,194,658 90,288,645 83,353,185 69,046,105 Audit Fees 1,076,564 707,050 206,360 500,000 Rates & Taxes 2,180,514 1,381,623 1,048,540 1,381,623 Insurance Premium 5,128,150 2,409,325 2,243,611 2,409,325 Subscription & Membership Fees 536,820 349,513 284,295 349,513 Losses & Write Off 69,086,589 62,030,671 81,673,251 86,684,094 Others 26,563,449 24,293,240 987,591 593,777 Directors Emoluments 785,000 1,087,500 - - Laundry Charges 13,026,675 - - - 1,482,985,180 1,228,405,374 1,188,818,241 1,163,444,822
5. FINANCIAL COST Interest Cost on Borrowings - Debenture Loan 1,125,000 9,531,250 1,125,000 9,531,250 Interest on Bank over Draft 247,693 21,959 245,837 21,959 Bank Charges 4,007,515 - 1,663,456 579,912 Debit Tax 3,809,884 1,732,160 2,274,079 1,309,500 Credit Card Discount & Other 2,063,777 - - - 11,253,869 11,285,369 5,308,373 11,442,621
6. OTHER EXPENSE
Grants, Contributions/Others 1,759,134 8,177,761 1,266,537 7,148,415 Nation Building Tax 23,235,724 11,546,773 21,305,733 11,092,396 24,994,858 20,423,560 22,572,270 18,240,811 7. TAXATION
Taxation on Profit for the year 23,558,002 13,430,692 6,376,074 12,722,155 23,558,002 13,430,692 6,376,074 12,722,155
61 Annual Report 2010
URBAN DEVELOPMENT AUTHORITY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST DECEMBER 2010 Group Authority 31st December 31st December 31st December 31st December 2010 2009 2010 2009 Rs. Rs. Rs. Rs.
2.1 Rent 2.1.1 Monthly Rent 388,235,475 303,861,084 330,175,446 253,996,304 2.1.2 Lease Rents 129,706,764 81,279,219 136,606,764 88,179,219 2.1.3 Ground Rent 653,730 585,517 653,730 585,517 2.1.4 Fee for Use & Occupation of Premises 8,682,817 8,090,618 8,682,817 8,090,618 2.1.5 Key money Received 1,472,036 21,677,520 1,472,036 21,677,520 528,750,822 415,493,958 477,590,793 372,529,178
2.2 2.2.1 Profit from sale of land & buildings Sale proceeds on Lands 3,644,851 7,282,137 3,644,851 7,282,137 Sale proceeds on building 4,950,000 105,675,000 4,950,000 105,675,000
Total 8,594,851 112,957,137 8,594,851 112,957,137 Less : Cost of Lands sold 2,871,342 764,204 2,871,342 764,204 Cost of building Sold 1,050,701 36,314,966 1,050,701 36,314,966 Total 4,672,808 75,877,967 4,672,808 75,877,967 Add : Accumulated Depreciation on Buildings sold 682,956 5,403,361 682,956 5,403,361 Profit on sale of Lands & building 5,355,764 81,281,328 5,355,764 81,281,328
2.3 Fee for services rendered
2.3.1 Planning Approval 17,766,175 19,342,545 17,766,175 19,342,545 2.3.2 Legal Services 3,130,099 3,970,520 3,130,099 3,970,520 2.3.3 Rest House Management Fees 10,422,412 9,174,176 10,422,412 9,174,176 2.3.4 Maintenance Services 76,147 995,474 76,147 995,474 2.3.5 Financial Management Services 741,600 529,600 741,600 529,600 2.3.6 Mgt Fees on client's projects 22,795,323 16,414,194 22,795,323 16,414,194 2.3.7 Change of Use of Buildings 29,872,248 35,223,075 29,872,248 35,223,075 2.3.8 Fee for Electricity 126,082,878 102,960,144 126,082,878 102,960,144 2.3.9 Servise Charge on leases 4,159,050 4,032,048 4,159,050 4,032,048 2.3.10Fee for Achitectural Services 8,238,384 7,112,955 8,238,384 7,112,955 2.3.11 Consultacy Charges 500 61,356,543 500 61,356,543 2.3.12 Fee for computer services 68,614 2,000 68,614 2,000 223,353,431 261,113,274 223,353,431 261,113,274
2.4 Waters Edge Ltd Gross Profit
Food & Beverages Revenue 394,208,380 - - -
Cost of Sale (145,874,871) - - - Gross Profit 248,333,509 - - - 2.5 Lanka Rest House Ltd Gross Profit Food & Beverages Revenue 15,540,415 12,800,281 - -
Cost of Sale (6,185,684) (7,473,130) - -
Gross Profit 9,354,731 5,327,151 - -
62 Annual Report 2010
URBAN DEVELOPMENT AUTHORITY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST DECEMBER 2010 Group Authority 31st December 31st December 31st December 31st December 2010 2009 2010 2009 Rs. Rs. Rs. Rs. 3.1 Interest Income 3.1.1 on Term Deposits 7,442,641 14,968,992 4,052,884 8,547,436 3.1.2 on Re-Purchase Order 5,308,770 16,151,419 2,202,594 16,151,419 3.1.3 on Savings Accounts 422,159 - 422,159 - 3.1.4 on Staff Loans 6,434,372 6,197,411 6,337,707 6,081,118 3.1.5 on Lease Rent 13,067,169 11,343,088 13,067,169 11,343,088 3.1.6 on PWHC Loan - - 15,019,615 15,019,615 3.1.7 on UDSP Loan 3,564,759 3,859,038 3,564,759 3,859,038 36,239,870 52,519,948 44,666,887 61,001,714
3.2 Dividend Received 3.2.1 Onally Holdings Ltd. 14,699,999 13,499,999 14,699,999 13,499,999 3.2.2 State Institution Temporery Surplus Trust 3,526,949 19,264,063 3,526,949 19,264,063 18,226,947 32,764,062 18,226,947 32,764,062
3.3 Miscellaneous Income 3.3.1 Non-Refundable Tender Deposits 2,261,599 649,940 2,261,599 649,940 3.3.2 Processing Fees for Issuing C.O. C 10,551,704 3,861,983 10,551,704 3,861,983 3.3.3 Penalty-Delayed Payments 81,379,557 89,300,102 81,379,557 89,300,102 3.3.4 Unauthorised Constuction Fees 6,300,000 1,181,429 6,300,000 1,181,429 3.3.5 Demolition Fee 31,074,290 - 31,074,290 - 3.3.6 Sundries 6,426,666 2,985,202 6,321,516 2,985,202 3.3.7 Unclaimed Deposits 6,104,695 - 6,104,695 - 3.3.8 Temparary Rentals 14,529,902 8,422,053 14,529,902 8,422,053 3.3.9 Registration of Suppliers 3,000 235,700 3,000 235,700 3.3.10Car Parking Fees 2,390,326 8,348,272 2,390,326 8,348,272 3.3.11Other Miscl revenue 3,682,557 1,966,060 1,248,297 1,966,060 3.3.12Sale of Publication 1,960,322 1,555,873 1,960,322 1,555,873 3.3.13Transfer Fee For Legal Matters 162,472 2,279,098 162,472 2,279,098 3.3.14Sundry Income from staff 746,440 249,429 746,440 249,429 3.3.15Membership Fee Income 41,760,071 - - 3.3.16 Hall hire Charges & Other Charges 15,584,731 - - 224,918,332 121,035,141 165,034,120 121,035,141
63 Annual Report 2010
URBAN DEVELOPMENT AUTHORITY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at 31st December 2010 2,274,237,335 3,750,639,423 8 a Property, Plant & Equipment for the Authority 1,476,402,088 3,750,639,423 0 Cost
Balance as at Additions Disposals Adjustments Balance as at 1/1/2010 During the year During the year During the year 31/12/2010
Land 1,102,195,067 10,742,204 1,213,494 (1,321,000) 1,110,402,777 Building 2,123,260,882 430,144,384 1,050,701 87,882,081 2,640,236,646 Plant & mechinery 144,698,135 144,698,135 Furniture & fittings 63,150,358 2,184,651 65,335,009 Motor vehicles 101,196,080 101,196,080 Office equipments 212,377,008 7,136,861 219,513,868 Library books 1,526,112 2,852 1,528,964
Total 3,748,403,641 450,210,953 2,264,195 86,561,080 4,282,911,479 84,296,885 (1,657,848)
Depreciation Balance as at Charges Writen back on Adjustments Balance as at 01/01/2010 for the year Disposals During the year 31/12/2010
Land 0 - Building 675,779,982 62,907,603 682,956 738,004,629 Plant & mechinery 140,985,608 1,105,420 142,091,028 Furniture & fittings 45,707,071 2,418,105 48,125,176 Motor vehicles 84,943,443 7,044,857 91,988,300 Office equipments 182,212,362 9,864,129 192,076,491 Library books 1,490,701 13,070 1,503,771
Total 1,131,119,167 83,353,184 682,956 - 1,213,789,395 83,353,185 Net value of Assets 2,617,284,474 3,069,122,084 (1) (1) 3,178,199,845
8 b Property, Plant & Equipment for the Group -
Cost
Balance as at Additions Disposals Adjustments Balance as at 1/1/2010 During the year During the year During the year 31/12/2010
Land 1,108,826,734 11,533,204 1,501,827 (1,321,000) 1,117,537,111 Building 2,524,180,387 432,412,864 1,050,701 87,882,081 3,043,424,631 Plant & mechinery 146,575,095 473,828 - - 147,048,923 Furniture & fittings 66,932,303 10,134,639 - - 77,066,942 Motor vehicles 120,637,894 - - - 120,637,894 Office equipments 217,171,315 13,849,804 165,900 - 230,855,219 Library books 1,526,112 2,852 - - 1,528,964
Total 4,185,849,839 468,407,191 2,718,428 86,561,080 4,738,099,683
Depreciation
Balance as at Charges Writen back on Adjustments Balance as at 1/1/2010 for the year Disposals During the year 31/12/2010
Land - - Building 955,827,058 82,967,478 682,956 - 1,038,111,580 Plant & mechinery 141,191,711 1,330,457 - - 142,522,168 Furniture & fittings 47,288,930 3,090,184 - - 50,379,115 Motor vehicles 97,394,816 9,254,822 - - 106,649,638 Office equipments 184,183,189 11,250,313 15,141 - 195,418,361 Library books 1,490,701 13,070 - - 1,503,771
Total 1,427,376,405 107,906,324 698,097 - 1,534,584,632
Net value of Assets 2,758,473,434 3,203,515,050
64 Annual Report 2010
URBAN DEVELOPMENT AUTHORITY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at 31st December 2010 Group Authority 2010 2009 2010 2009 Rs Rs RS RS 9 INVESTMENT (a) LONG TERM INVESTMENT
9.1 Lanka Electricity Company (pvt) Ltd 9,000,000 9,000,000 9,000,000 9,000,000 - 9.2 Housing Development Finance Corp. - 500,000 500,000 500,000 500,000
9.3 Urban Investment & Development Co.(Pvt) Ltd - - 345,000,000 345,000,000
9.4 UDA Rest House Company Ltd - - 70 70
9.5 Investment in Quoted Company 2,500 2,500 - - 9.6 Ocean View Development Co.(Pvt) Ltd 92,000,000 92,000,000 92,000,000 92,000,000
9.7 Peliyagoda Ware House Complex Co. Ltd. - - 299,999,930 299,999,930 (-) Falling value of Investment (299,999,930) (299,999,930) - - 9.8 R.E.E.L. Company 28,950,000 28,950,000 28,950,000 28,950,000
10.1 Onally Holdings Plc. * 40,000,000 40,000,000 40,000,000 40,000,000
10.2 Colombo Lands & Development Co. Ltd. + 36,309,841 36,309,841 36,309,841 36,309,841 Total Investment 206,762,341 206,762,341 551,759,911 551,759,911
+ Market value of 34,872,675 No of Rs 1/= shares -Rs 19.40 each *Market value of 6,666,666 No of Rs 10/= shares- Rs 60.00 each -Market value of 30,000 No of Rs 100/=shares- Rs 550.00 each
For the purpose of consolidated financial statements, investments in wholly owned subsidiaries namely, Peliyagoda Warehouse
Complex Co. Ltd., Urban Investment & Development Company (pvt) Ltd., Waters Edge Ltd, UDA Rest Houses Company Ltd have
been presented on equity method incompliance with SLAS 26. other investments have been presented at cost. 10 RECEIVABLES FROM SUBSIDIARIES
10.1 Peliyagoda Warehouse Complex Company Ltd (Note 10.1) 106,448,573 119,971,183 10.2 Urban Investment & Development Company (Pvt) Ltd - 1,579,349,685 603,950,061 - - 1,685,798,258 723,921,245
Amounts Amounts Amounts Amounts 10.10.1PELIYAGODA WAREHOUSE COMPLEX COMPANY LTD Rs Rs Rs Rs Amount spent by UDA on behalf of PWCC Ltd Loan term Loan (NDB Laon Capital) 322,399,979 322,399,979 Warehouse Land 85,860,000 85,860,000 EFIC Loan - - 937,297,247 937,297,247 - - 1,345,557,226 1,345,557,226
Less Amount : repaid by the company - - (495,230,372) (495,230,372) - - 850,326,854 850,326,854 Less Amount : transfered to share capital A/C ** (599,999,940) (599,999,940) Reduction for the risk of recovery of loan (143,878,341) (130,355,731) Balance as at 31/12/2010 - - 106,448,573 119,971,183
11 INVESTMENT IN REST HOUSES Amounts (Rs) Amounts (Rs) Amounts (Rs) Amounts (Rs) Matara Rest House 6,993,278 6,993,278 6,993,278 6,993,278 Hambantota Rest House 7,077,147 7,077,147 7,077,147 7,077,147 14,070,425 14,070,425 14,070,425 14,070,425
65 Annual Report 2010
URBAN DEVELOPMENT AUTHORITY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As at 31st December 2010 Group Authority 2010 2009 2010 2009 12 Debtors Rs. Rs. Rs. Rs. Rent Debtors 753,425,650 733,230,427 747,812,968 731,764,527 Lease Debtors 356,661,958 328,442,749 356,661,958 328,442,749 Rest House Debtors 256,199,908 230,592,424 256,199,908 230,592,424 Development Expenditure 168,627,741 163,214,684 168,627,741 163,214,684 Interest Receivable 88,915,564 9,943,652 137,759,707 54,399,386 Consultancy Fees 28,569,199 72,067,061 28,569,199 72,067,061 VAT Receivable 109,703,948 34,680,600 - - Other Debtors 300,899,618 38,153,063 255,056,268 77,814,205 Staff Debtors 166,211,894 163,489,384 166,211,894 163,489,384 2,229,215,481 1,773,814,044 2,116,899,643 1,821,784,420 Less: Provision for bad debt 734,564,792 667,122,285 734,300,182 667,066,673 Total Debtors 1,494,650,689 1,106,691,759 1,382,599,460 1,154,717,747 12 DEBTORS 12.1 Debtors RENT DEBTORS 12.1.1 Monthly Rental 188,525,931 207,263,332 - 12.1.2 V.A.T. Receivable From Monthly Rentals 24,942,563 27,064,455 12.1.3 V.A.T. Receivable From Key Money 1,219,161 1,200,144 12.1.4 20% Of Frozen Arrears 38,596,747 68,204,101 12.1.5 Rent Arrears Frozen 59,041,570 25,114,453 12.1.6 Fee For Electricity 17,239,627 21,107,520 12.1.7 Fee For Use & Occupation 52,307,618 49,736,212 12.1.8 Penalty On Delayed Monthly Rent & Fee For Use 337,425,608 302,261,315 12.1.9 Key Money receivable 7,189,817 7,324,031 12.1.10 Penalty 0n Key Money 301,311 1,427,687 - 12.1.11 Arreas Of Government Tax (Rent) 21,023,015 21,061,280 LEASE DEBTORS - 12.1.12 V.A.T. Receivable From Premia And Lease Rent 45,634,714 39,730,020 12.1.13 Annual lease rent 63,123,325 57,103,651 - 12.1.14 Ground Rent 247,636 207,504 12.1.15 Interest on Lease Premia (368,714) (2,095,415) 12.1.16 Penalty on Delayed Lease Rent & Premia 151,478,034 131,313,556 12.1.17 Premia on Land Leased out 73,390,445 78,872,364 - 12.1.18 Arreas of Govt. Tax -Lease Rent 20,443,291 20,391,903 12.1.19 Service charges on lease properties 2,713,226 2,919,167 REST HOUSE DEBTORS 12.1.20 Rest House Penalty 173,390,219 149,200,307 12.1.21 VAT Receivable from Rest Houses 11,077,213 10,642,404 - 12.1.22 VAT Recevable from Circuit Bungalows 162,264 162,264 12.1.23 Rest House Rent Receivable 55,072,282 53,442,981 - 12.1.24 Room Charges from Circuit Banglows 375,670 403,460 - 12.1.25 Frozen Rest House Penalty 14,061,255 14,061,255 12.1.26 Rest House Other Debtors 1,653,280 2,275,828 - 12.1.27 Food & Bev. Receivable from Circuit Banglows 129,349 125,549 - 12.1.28 Hire of Furniture 125,000 125,000 - 12.1.29 Room Charges from Rest Houses 153,376 153,376 DEVELOPMENT EXPENDITURE 12.2.1 My. of Sports & Youth Affairs 84,683,449 84,683,449 - 12.2.2 Bills Receivable NHDA 39,944,640 33,944,640 12.2.3 My. Of Urban Development Cons. & Pub Utilities 25,007,130 25,007,130 - 12.2.4 Receivables from Treasury 4,393,732 4,393,732 - 12.2.5 Colombo Munciple Council 4,447,302 4,447,302 - 12.2.6 Other MISCL Debtors 10,151,488 10,738,430 INTEREST RECEIVABLE - 12.2.8 Current A/C PWCC 48,975,349 44,455,734 - 12.2.9 Interest Receivable on FD 13,229,259 2,549,403 - 12.2.10 Interest on Treasury Bills 75,360,180 7,199,331 - 12.2.11 Interest Receivable from other Sources 194,919 194,919 CONSULTANCY FEES - 12.2.12 Consultancy Fees SRCC & Treasury Fund 472,000 472,000 - 12.2.13 Management Fee Receivable On Client's Project 28,097,199 26,106,777 12.2.14 Consultancy Fee Receivable On Client's Project - 45,488,284 OTHER DEBTORS - 12.2.15 Current A/C Ocean View 10,085,613 10,085,613 12.2.17 Rest House Company LTD A/C 60,456,294 49,009,035 12.2.18 Waters Edge Limited Current A/C 4,780,595 6,233,595 12.2.18 Hamabantota Priority Project Current A/C 166,778,600 - - 12.2.19 Dividend Receivable 310,084 310,084 - 12.2.20 Ministry of Education 5,406 5,406 - 12.2.21 UDSP Receivables Personnel Emoluments 16,479 16,479 - 12.2.22 Transport Charges Receivable (1,657,835) (1,675,595) - 12.2.23 Cheque Rtn/Dishnrd Control A/C 1,421,329 1,186,996 - 12.2.24 Cheques Return Charges Receivable 269,678 260,529 - 12.2.25 Income Tax Receivable 12,416,164 10,184,427 - 12.2.26 vat retained on UDA income 133,808 2,074,877 - 12.2.27 Stamp Duty from Employees 40,054 122,761 STAFF DEBTORS - 12.2.29 Staff Loans 166,085,593 163,300,083 - 12.2.30 Staff Receivable 126,301 189,301 2,116,899,643 1,821,784,421 12.2.31 Provision for Bad Debts (734,300,182) (667,066,673) 1,382,599,460 1,154,717,748
66 Annual Report 2010
URBAN DEVELOPMENT AUTHORITY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT As at 31st December 2010 Group Authority 2010 2009 2010 2009 RS RS RS RS 13 DEPOSITS, PRE-PAYMENTS & ADVANCES
13.(b).1 Advances to Contractors 730,402,884 854,227,572 619,219,323 620,681,240 13.(b).2 Deposits with Suppliers 8,280,855 8,273,355 8,280,855 8,273,355 13.(b).3 Deposits for Services 1,742,127 1,741,667 1,742,127 1,741,667 13.(b).4 Sundry Advances 23,304,459 24,599,604 23,288,959 24,584,104 13.(b).5 Deposit for Electricity 6,608,444 5,864,199 6,608,444 5,864,199 13.(b).6 Securiy Deposits - Electricity 115,548 115,548 115,548 115,548 13.(b).7 Receivable form Contractors(UDSP) 3,485,138 3,485,138 3,485,138 3,485,138 13.(b).8 Pre Payements 2,957,413 2,335,467 2,385,208 2,334,467 13.(b).9 Compensation Deposits 40,350,891 40,337,500 40,350,891 40,337,500 13.(b).10 Advance Given to Staff 3,640,787 9,324,496 3,640,787 9,324,496 13.(b).11 Other Deposits 881,750 320,000 - - 821,770,296 950,624,546 709,117,278 716,741,712
14 CASH & CASH EQUIVALENTS 14.1 Short Term Investments:
14.1.1 Fixed Deposits 631,696,314 50,000,000 550,000,000 50,000,000 14.1.2 Treasury Bills - REPO 9,721,460,739 245,219,940 9,616,916,561 101,750,001 - S.I.T.S.T.Fund 14,436,613 19,270,176 14,436,613 19,270,176 10,367,593,667 314,490,116 10,181,353,174 171,020,177
14.2 CASH & BANK BALANCES COLLECTION ACCOUNTS
14.2.1 BOC - Mahiyangana Branch 325,560 492,769 325,560 492,769 14.2.2 BOC - Battaramulla Branch 3,162,359 221,200 3,162,359 221,220 14.2.3 BOC - Kandy Branch 255,585 390,026 255,585 390,026 14.2.4 BOC - Kataragama Branch 8,568 - 8,568 - 14.2.5 BOC - Central Super Market Branch 729,572 171,082 729,572 171,082 14.2.6 BOC - Matara Branch - 18,569 - 18,569 14.2.7 BOC - Ambilipitiya Branch - 60,778 - 60,778 14.2.8 BOC - Anuradhapura Branch 322,204 428,015 322,204 428,015 14.2.9 BOC- Nuwraeliya Branch 120,985 120,985 - CURRENT ACCOUNTS - 14.2.10 BOC - Dalada veediya Kandy 969,498 456,267 969,498 456,267 14.2.11 BOC - Hambntota priority Projects C/ Accounts 88,951 88,951 88,951 88,951 14.2.12 BOC -Galle Bazzar Branch 448,954 500,150 448,954 500,150 14.2.13 BOC -Badulla Branch 300,000 - 300,000 - 14.2.13 Bank Account - PWCC Ltd 4,015,667 6,455,197 - - Bank Account - UNIDEP 914,487 - Bank Account - Waters Edge 9,731,442
14.2.14 Bank Account - UDA Rest House Ltd 496,250 496,250 - 14.2.14 Bank of Ceylon C/B Debit Tax Exempt 357,106 - 119,142 - 14.2.15 Debentur Interest Account (1,886,831) - (1,886,831) - SAVINGS ACCOUNTS -
14.2.16 BOC- Foreign Currency Saving Account 61,783,041 15,224,599 61,783,041 15,224,599 82,143,398 25,003,853 66,747,588 18,052,425
14.3 Petty Cash Imprests 8,713,243 461,815 559,190 416,815 14.4 Cash in hand in Badulla Rest House (61,265) (61,265) (61,265) (61,265) 10,458,389,043 339,894,519 10,248,598,688 189,428,152
67 Annual Report 2010
URBAN DEVELOPMENT AUTHORITY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT As at 31st December 2010 Group Authority 2010 2009 2010 2009 RS RS RS RS 15 Capital: 15.1 1979 Rs. 20,000,000 15.2 1980 Rs. 80,000,000 100,000,000 100,000,000 100,000,000 100,000,000
16 Net Government Capital Contribution: 16.1 For Sethsiripaya Administrative Complex 751,436,901 758,647,901 751,436,901 758,647,901 16.2 For Colombo Central Super Market 242,735,997 249,946,998 242,735,997 249,946,998 16.3 For Sellakataragama Shops 64,750,000 - 64,750,000 - 1,058,922,898 1,008,594,899 1,058,922,898 1,008,594,899 17 Capital Reserves: 17.1 Demolition of Structures 1,028,303 1,028,303 1,028,303 1,028,303 17.2 Equity & Central Bank rev.-UDSP 7,434,482 7,434,482 7,434,482 7,434,482 8,462,785 8,462,785 8,462,785 8,462,785 17.2 Central Bank rev. - UDSP: Surplus/Deficit on Closing of UDSP Accounts (6,928,161) (6,928,161) (6,928,161) (6,928,161) Exchange Revaluation 14,362,643 14,362,643 14,362,643 14,362,643 7,434,482 7,434,482 7,434,482 7,434,482 18 Revenue Reserves: (a)Contingency Fund 55,000,000 55,000,000 55,000,000 55,000,000 19 Accumulated Deficit Excess of Income over Expenditure For the Year (122,444,561) (259,862,431) (143,659,721) (231,960,097)
Balance B/F from Previous Year (1,239,609,213) (1,003,024,449) (1,110,213,520) (878,253,423) Accumulated Deficit (1,362,053,774) (1,262,886,880) (1,253,873,241) (1,110,213,520)
20 NSB Loan Loan balance as at Balance Sheet date represent the loan installments released from the year 2009 from NSB out of the total credit facility of Rs. 2,770 Million obtained for construction of Sethsiripaya Stage ii Building; the project implemented through Urban Investment and Development Company (Pvt) Ltd, a fully owned subsidiary of UDA . Loan repayment will become due after the grace period of 3 years from November 2009. Repayment of the loan and the due interest is guaranteed by General Treasury.
Group Authority 2010 2009 2010 2009 RS RS Balance as at 01st January 444,402,322 - 444,402,322 -
Add: Loan Drawdown during the year 944,296,770 444,402,322 944,296,770 444,402,322 Less: Loan repayment during the year - - - - Balance as at 31st December 1,388,699,092 444,402,322 1,388,699,092 444,402,322 Payable within one year - - - - Payable after one year 1,388,699,092 444,402,322 1,388,699,092 444,402,322 1,388,699,092 444,402,322 1,388,699,092 444,402,322 21 Debenture
The authority(UDA) has issued 5 years redeemable debentures to the value of Rs. 10 billion as at 31st December 2010 to facilitate the implementation of Colombo city development programme. The repayment of the Principal and Interest on these Debentures are being secured by the Government of Sri Lanka
The details of debeture issue are as follows, Value (Rs) Interest Rate Due date of Maturity date Interest
Type - A 9,721,160,000 11% annually 04.10.2015 Type - B 730,000 Tresury Bill Rate +0.75%bi-annually 04.10.2015 Type - C 278,110,000 10% monthly 04.10.2015 10,000,000,000
Movement in Debentures 2010 2009 2010 2009 Balance as at 01st January 2010 - - - - Issued during the year Redeemed during the year 10,000,000,000 10,000,000,000 - Balance as at 31st December 2010 10,000,000,000 - 10,000,000,000 - 22 Other Loans: Government of Sri Lanka (UDSP) Balance B/F GOSL Loan - Non current liabilities 234,482,400 250,249,153 234,482,400 250,249,153 Less: Short term liability - Current Portion 17,458,222 15,766,753 17,458,222 15,766,753 Balance C/F GOSL Loan - Non current liabilities 217,024,178 234,482,400 217,024,178 234,482,400
23 Deferred Lease Rent Balance B/F 3,750,592,014 3,542,568,173 4,080,642,014 3,879,518,173 Add : Premia due in 2010 179,656,424 292,450,388 179,656,424 292,450,388 Less: Revenue written back to the P&L (65,825,515) (84,426,547) (72,725,515) (91,326,547) withdrawn from the fund - - - - 3,864,422,923 3,750,592,014 4,187,572,923 4,080,642,014
68 Annual Report 2010
URBAN DEVELOPMENT AUTHORITY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT As at 31st December 2010 Group Authority 2010 2009 2010 2009 24 creditors Rs Rs Rs Rs Expense creditors 106,775,800 88,506,112 106,569,607 88,345,690 Rent Deposits 8,052,443 7,673,353 - - Development Expenditure 742,056,369 535,671,869 617,265,991 530,235,617 Taxes Payable 91,853,990 79,244,297 91,350,394 79,183,371 UDSP 17,301,499 14,393,542 17,301,499 14,393,542 Other Creditors 467,511,855 7,886,381 337,322,303 6,156,582 1,433,551,956 733,375,554 1,169,809,794 718,314,802 creditors schedules for the Authority 24 Expense & Other Creditors 24.1 Expense creditors 24.1.1 Audit Fees 2,927,850 2,631,575 24.1.2 Electricity 791,947 931,444 24.1.3 Maintenance 24,908 24,908 24.1.4 Other Expenses 51,312,541 39,331,626 24.1.5 Supplies 4,203,733 4,221,281 24.1.6 Telephone 978,661 1,247,320 24.1.7 Gratuity 15% Retention 305,882 180,292 24.1.8 Accrued Salaries, Medical Etc 34,981,900 29,117,000 24.1.9 Unpaid Salaries 539,151 432,262 24.1.10 Rest House Service Charge payable 1,486,899 1,219,155 24.1.11 E.P.F. Payable 8,072,560 8,052,403 24.1.12 E.T.F. Payable 943,576 956,424 24.2 Other Creditors Development Expenditure 24.2.1 Accrued Compensation on Lands with Interest 195,462,152 194,738,773 24.2.2 Bills Payable to Contractors 227,028,068 136,606,126 24.2.3 Retention Money 169,639,590 173,754,536 24.2.4 SEC Current Account 25,136,182 25,136,182 UDSP 24.2.7 Bills Payable-UDSP & Others 1,531,402 1,531,402 24.2.8 ULG's (UDSP) Loan Inst. & Int Payable - ( Note 24.2.8.1) 15,770,097 12,862,140 Taxes Payable 24.2.9 GST Control Account 18,264,664 18,207,535 24.2.10 VAT Control Account 14,920,198 5,237,941 24.2.11 With Holding Tax Payable 261,804 834,691 24.2.12 NSL payable 51,234,738 51,234,738 24.2.13 PAYE Tax payable 1,931,103 1,127,117 24.2.14 SNF Payable 2,441 2,441 24.2.15 VAT Payable in Advance 4,130,324 2,461,433 24.2.16 Construction Industry Gurantee Levy 559,463 77,475 24.2.17 With Holding Business Turn over Tax 45,661 - Other Creditors 24.2.18 Stamp Duty on Deeds 40,750 1,035,088 24.2.19 Fee water Services 103,725 103,725 24.2.20 Unpaid Cheque 183,743 - 24.2.21 Over accounted rent payable 4,010,307 4,864,067 24.2.22 Others 126,751 122,072 24.2.23 Rest House 80% Food & Beverages payable 31,630 31,630 24.2.24 Interest Payables on Debenture 257,825,398 - 24.2.25 Succes Fee on Debenture Issue 75,000,000 - 1,169,809,794 718,314,802 24.2.8.1 ULG's (UDSP) Loan Installment & Interest Payable Int. Payable- ULG Loan- UDSP (Treasury) 293,581,326 275,757,531 Payable to GOSL - Year 2002 217,135,253 199,677,032 510,716,580 475,434,563 ULG's (UDSP) Loan Installment Receivable (190,411,655) (176,477,592) ULG's (UDSP) Loan Interest Receivable (304,534,828) (286,094,831) 15,770,097 12,862,140 25 Deposits & Advances 25.1 Tender Deposits 7,509,312 8,563,751 7,509,312 8,563,751 25.2 Security Deposits 21,016,504 21,107,314 21,016,504 21,107,314 25.3 Rest House Rent Refundable 39,078,645 39,238,121 39,078,645 39,238,121 25.4 Clients Deposits ( Note26.4.1) 643,086,741 470,102,050 643,086,741 470,102,050 25.5 Sundry Deposits 10,563,878 20,056,191 10,563,878 20,056,191 25.6 Rent Deposits 16,236,406 19,499,828 16,236,406 19,499,828 25.7 Refundable Processing Fee 482,913 482,913 482,913 482,913 25.8 Deposits - Visumpaya 4,358,112 4,358,112 4,358,112 4,358,112 25.9 Deposits for Proposed Projects 379,492 379,492 379,492 379,492 25.10 EIA Deposits Received 172,999 2,390,855 172,999 2,390,855 25.11 Land Sale Proceeds Received in Advance 892,175,594 748,415,426 887,387,594 743,627,426 25.12 Maintenace Deposite 7,758,500 7,422,000 7,758,500 7,422,000 25.13 Service Charge Deposit 694,324 0 694,324 - 1,643,513,421 1,342,016,053 1,638,725,421 1,337,228,053
25.4.1 Clients Deposits Clients Deposits Received 1,944,767,677 2,413,561,437 Clients' project Expenditure incurred 1,301,680,936 1,943,459,387 Balance as at 31st December 2010 643,086,741 470,102,050 26 Bank Overdraft CURRENT ACCOUNT 26.1 BOC Corporate Branch 49,299,207 168,109,599 49,299,207 102,189,332 26.2 Bank of Ceylon C/B Debit Tax Exempt - 19,889,499 - 8,564,984 26.3 BOC- Nuwraeliya Branch - 285,614 - 285,614 26.4 BOC- Hambantota Branch 971,986 867,686 971,986 867,686 26.5 WatersEdge Bank Accounts 9,172,373 - - - COLLECTION ACCONTS 26.6 BOC - Kataragama Branch 13,608 - 13,608 26.7 BOC - Matara Branch 7,852 7,852 - 59,451,418 189,166,006 50,279,045 111,921,223
69 Annual Report 2010
URBAN DEVELOPMENT AUTHORITY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT As at 31st December 2010 27 EVENTS OCCURRING AFTER THE BALANCE SHEET DATE No circumtances have arrisen, since the balance sheet, which would require adjustment to, or disclosure, in the financial statments.
28. DIRECTORS' INTEREST
Following Board Members and Directors of the Authority are also Directors of the following companies
Name of the Company Name of the Board Members/Directors Relationship
(1). Peliyagoda Ware House Complex Mr. Priyath B Wikcram - UDA Board Member Chairman & CEO Co.(Pvt)Ltd Mr. Janaka Kurukulasuriya -Chairman UDA Director Mr. K.E.V.N.Frenando - Director General UDA Director
(2). Urban Investment & Development Mr.Janaka Kurukulasuriya -Chairman UDA Chairman Company ( Pvt) Ltd Miss Wasantha Geeganage- DDG (Finance) UDA Director Mrs. Renuka Wikramasinghe - Director (PM) UDA Director Mrs, S.Karunanayka- Director (Legal) UDA Director
(3). UDA Rest Houses Company Ltd Mr.Janaka Kurukulasuriya -Chairman UDA Chairman Miss Wasantha Geeganage- DDG (Finance) UDA Director
(4). Real Estate Exchange Plc Mr. K.E.V.N.Frenando - Director General UDA Director
The Directors have no direct or Indirect interest in any other contract or proposed contract with Authority other than the details given in to note 30. 29 RELATED PARTY TRANSACTIONS The Authority has entered in to contrtacts in the normal course of business with the following companies
Value Name of the Company Nature of Transaction 2010 2009 Rs. Rs.
(1). Peliyagoda Ware House Complex - Interest Receivable to UDA on loan granted 15,019,615 15,019,615 Co.(Pvt)Ltd
(2). Urban Investment & Development -Sethsiripaya Stage 11 project Implimentation 975,399,624 361,623,209 Company ( Pvt) Ltd expenditure
(3). UDA Rest Houses Ltd - All capital and recurent expenditure(Net) 9,831,863 18,707,823
(4). Onally Holdings PLC - Financial Management fee received 741,600 529,600 - Dividend received 14,699,999 13,499,999
There were no related party transactions other than disclosed in Note 30to these financial statements.
70 Annual Report 2010
FINANCIAL REVIEW
SUMMARISED BALANCE SHEET As At 31st December (Rupees in Millions)
2006 2007 2008 2009 2010 Rs. Rs. Rs. Rs. Rs. ASSETS Non Current Assets 4,841 5,222 5,204 5,373 7,699
Current Assets 2,972 3,290 3,561 2,749 12,348
TOTAL ASSETS 7,813 8,512 8,765 8,123 20,047
EQUITY & LIABILITIES Capital & Reserves
Stated capital 100 100 100 100 100 Net government contribution 1,052 1,037 1,023 1,009 1,059 Externally provided equity 1,152 1,137 1,123 1,109 1,159
Reserves (153) (549) (815) (1,047) (1,190)
999 588 308 62 (32)
Non Current Liabilities 4,430 5,110 5,241 5,855 17,220
Current Liabilities 2,384 2,814 3,216 2,206 2,859
TOTAL EQUITY & LIABILITIES 7,813 8,512 8,765 8,123 20,047
71 Annual Report 2010
ASSETS
(Rs.)25,000
20,000
15,000
10,000
5,000
0 2006 2007 2008 2009 2010
Year
Current Assets Non Current Assets TOTAL ASSETS
EQUITY & LIABILITIES
25,000 (Rs.)
20,000
15,000
10,000
5,000
0 2006 2007 2008Year 2009 2010 -5,000
Capital & Reserves Current Liabilities Non Current Liabilities TOTAL EQUITY & LIABILITIES
72 Annual Report 2010
FINANCIAL REVIEW
SUMMARISED INCOME & EXPENDITURE STATEMENT For the Year Ended 31st December
(Rupees in Million)
2006 2007 2008 2009 2010 Rs. Rs. Rs. Rs. Rs.
Income 611 646 713 745 845
Other Operational Income 210 242 189 215 228 821 888 902 959 1,073
Administration & General Expenditure (675) (878) (863) (914) (1,189)
Other Operational Expenditure (623) (372) (300) (268) (23)
(1,298) (1,250) (1,163) (1,182) (1,211)
Operational Loss Before Financial Cost (477) (361) (260) (223) (138)
Financial Cost (28) (27) (22) (11) (5)
Operational Loss After Financial Cost (505) (388) (282) (234) (143)
Non Operational Income 14 14 14 14 14 Levy paid to consolidated funds - - - - (8) Net Loss Before Tax (491) (374) (268) (219) (137)
Income Tax Expenses (5) (20) (12) (13) (6)
Net Profit /( Loss) After Provision of Tax (497) (393) (279) (232) (144)
73 Annual Report 2010
Income & Expenditure
(Rs.) 1,400 1,200
1,000 800 600 Income
400 Expenditure 200 - Year 2006 2007 2008 2009 2010
Net Profit /(Loss) - 2006 2007 2008 2009 2010 (100)
(200)
(300) Net Profit /(Loss)
(400)
(500)
(600)
74 Annual Report 2010
FINANCIAL REVIEW
SUMMARISED CASH FLOW STATEMENTS As At 31st December
(Rupees in Million)
2006 2007 2008 2009 2010
Rs. Rs. Rs. Rs. Rs.
CASH FLOWS FROM OPERATING ACTIVITIES NET PROFIT / (LOSS) BEFORE INCOME TAX (491) (374) (268) (219) (137)
ACCOUNTING ADJUSTMENT 99 (421) (334) (383) (376) OPERATING DEFICIT BEFOR WORKING (392) (795) (602) (602) (513)
CAPITAL CHANGES
WORKING CAPITAL CHANGES (157) (49) 23 (333) 444
CASH GENERATED FROM OPERATIONS 910 645 644 570 503
CASH FLOWS FROM INVESTING ACTIVITIES (477) 113 143 371 8,286
CASH FLOWS FROM FINANCING ACTIVITIES (1) 44 (139) (92) 905 NET INCRESE IN CASH & CASH EQUIVALENTS (117) (42) 69 (86) 9,625
CASH & BANK BALANCE AT THE BEGINNING OF THE YEAR 24 66 25 94 8.2
CASH & BANK BALANCE AT THE END OF THE YEAR (93) 24 94 8 9,633
75 Annual Report 2010
PROVINCIAL OFFICES, DISTRICT OFFICES AND SUB OFFICES
S/N Provincial Office Address Telephone No. 01 North Western Provincial Office No. 03/A, Mihindu Mawatha, 037-2223815 Kurunegala. 037-2230133 037- 2230134 037- 2220908
02 Central Provincial Office No. 18,Keppetipola Mw.,Kandy 081- 2223851 081- 2201077
03 Uva Provincial Office Syman Pieris Hall, 055- 2229959 H.R. Gunawardena Mw,Badulla 055- 2223721
04 Sabaragamuwa Provincial Office No. 427, Colombo Road, 045- 2222086 New Town, Ratnapura 045- 2225690
05 Eastern Provincial Office No. 56, Station Road, Trincomalee 026- 2222656 026- 2223097
06 Northern Provincial Office No.211, Kachcheri, Nallor Road, Jaffna 021- 2223269
07 North Central Provincial Office No. 3125, Dahaiyagama Junction, 025- 2223391 Anuradhapura 025- 2223537
01 Galle District Office No. 48/3, Havlok Road, Galle 091- 2234830 091- 2245435
02 Matara District Office No. 71/1, H.G.P. Building, 041- 2230413 Old Market Road, Kotuwegoda,Matara 041- 2232594
03 Hambantota District Office No. 21, Terrace Street, Hambantota 047- 2222069
04 Nuwara eliya District Office Race Curse Road, Nuwara eliya 052-2223664
05 Polonnaruwa District Office Co - operate Road,Kaduruwela 027- 2226126
06 Ampara District Office No.110, Sri Dharmarathne Mawatha, 063-2222411 Ampara.
07 Batticaloa District Office No.40, 02nd Cross Street, Batticaloa 065- 2222953
08 Kalutara District Office No.443, Galle Road, Kalutara 034- 2222647
09 Monaragala District Office Kandasurindugama, 047- 2235343 Kataragama. 10 Gampaha District Office 03rd Floor, 033- 2221934 Pradeshiya Sabha Building, Gampaha. 033- 2234757
11 Puttalam District Office No. 97/24, Seda Uyana Place, 032- 2221742 Kurunegala Road,Chilaw 032- 2223092
12 Vauniya District Office Urban Council Building,Park Road, 024- 2220518 Vauniya
13 Kegalle District Office No. 21, Palladeniya Road,Kegalle. 035-2231935
76 Annual Report 2010
Chairmen’s comments to the Audit Report for the Year Ended 31st December 2010 2 2.1.1 The Consolidated Financial Statements Presented (a) The Audited Financial Statements of Peliyagoda Warehouse Complex has been forwarded to the Auditor General along with the Audit Report. Further Audited Financial Statement of the Urban Investment & Development Company (Pvt.) Ltd., has also been sent to the Government Audit Branch on 05th October 2011.
(b) UDA has incurred Trading loss since year 2006. However, amount of annual loss has been reduced by Rs.353mn in the year 2010. UDA is implementing Systems & Controls to reduce Administrative & Operational expenses and take action to increase revenue of the Authority.
2.2 Comments on the Financial Statements 2.2.1 Debenture Issue (a)- (d) Out of the funds received from Debenture Issue, Rs. 500Mn has been invested in the Fixed Deposit at 10% interest rate and the balance amount has been invested in the Treasury Bills at 7.21% interest rate. Subsequently due to the increase in rates for lending and deposits, we have renegotiated with banks and deposited the balance fund at the rate of 10.4%.
Presently Rs.1,966Mn have been spent for the construction of 9,951numbers of low housing units and another 10,000 such units are being planned to construct during the year 2012. Further, Rs.3, 400Mn have been pledged for the issue of bank guarantees. Therefore, entire funds drawn from debenture issue would be utilized for this project within short period of time.
2.2.2 Accounting Deficiencies (a) Amount of Rs. 55,712,576 and Rs. 1,464,029 shown as sundries and unidentified balances in the Control accounts respectively. Out of these amounts Rs. 48,012,893 as sundries and Rs. 1,135,687 as unidentified has been reconciled & corrected in the year 2011.
(b) Income from Development permits on ad hock basis which items for income are recorded on cash basis.
77 Annual Report 2010
(c) The amount payable to the National Building Research Organization for the consultancy services amounting to Rs. 1,230,562 (without tax) have now being accounted for the year concerned.
2.2.3 Un reconciled Control Accounts (a) As per the Books of Accounts, VAT on monthly rental and Fee for Use was Rs. 24,942,563. The Schedule submitted to the Audit was only for VAT on monthly rental amounting Rs. 20,037,196. Therefore the difference of Rs.4,905,367 was VAT receivable on Fee for Use.
(b) Action will be taken to reconcile these anomalies
(c) The development expenditure incurred by UDA also is generally categorized under these categories in the Balance Sheet and are valued on historical cost basis. Action has been taken to revalue these assets, and accounts will be adjusted accordingly.
(d) Action has been taken to identify and rectify these differences.
(e) The discussion between officers of both Authorities regarding the un- reconciled balances is in progress.
2.2.4 Unexplained Differences Amount of Rs. 69,005,800 shown as negative balances in the Control Accounts. Out of this amount Rs. 22,503,340 has been reconciled & corrected in the year 2011.
2.2.5 Accounts Receivable and Payable (a) Action has been taken to reconcile Sundry Advance Account and amount of Rs. 1.15mn has been rectified in the year 2011.
(b) As per the draft Financial Statements this amount was represented the expenditure incurred on client projects before setting off the funds received for such projects. Funds received from clients were disclosed as a liability under the No 26.4.1 of notes to the Financial Statements. Generally, expenditure and funds received on a client’s project would be set off after the completion of such project.
78 Annual Report 2010
(c) Above balance represent the funds received for projects undertaken on behalf of clients (Client Deposits). Out of this credit balance Rs. 5,240,273 has been rectified and corrected.
(e) During the year 2011 sum of Rs. 34.2mn has been recovered against the arrears which amounted to Rs. 82.4mn as at 31st December 2010. Action has been taken to eject the defaulted tenants and takeover the possession of 25Nos of shops. In first three month of the year 2011 sum of Rs. 60.5mn has been recovered from arrears including Colombo Central Super Market Complex.
(f) Action will be taken to identify reasons for accumulation of these balances and seeking ability to recover these balances from Gratuity payable or guarantors.
(g) Following actions have been taken to collect the long outstanding dues Selected housing projects to sell the houses on outright to the tenants under the cabinet decision obtained on 2007.04.05 (No 05/04/76/023/015-1) Offering various concessionary schemes to promote tenants to pay the areas
(h) Following action has been taken to recover arrears on fee for use & occupation and action also has been taken to recover the arrears at Dambulla Town Development project. Demand notices were sent to occupants to pay the arrears of fee for use on various occasions and due to lack of response to the demand notices action also has been taken to get the Minister’s approval under the state recovery act. Complaints were filed against the defaulted tenants at the Dambulla police station to recover the above arrears.
(i) Action has been taken to recover the dues from all possible parties. However unrecoverable potion of the amount will be written off after obtaining relevant approval.
(J) This balance was derived due to the transactions were taken placed on redevelopment of Sugathadasa Stadium & Kettarama Stadium in 1997. Communication with the Sport Ministry has been already commenced to establish the balance shown in the books of accounts.
79 Annual Report 2010
(k) It appears that non operational in the Building Material Corporation.
(l) Stores No. 37 had been allocated on temporary basis to M/s. Shine Tex on 16.11.2001. Monthly rental were accumulated on monthly account up to 28.02.2009. Demand notice was sent on 30.07.2006 to recover the arrears.
(m) UDA has allocated a shop to “All Island Handicraft Corporative Society” to operate a shop unit at Chittampalam A. Gardinear Mawatha. Due to nonpayment of rent arrears by the above society, the shop was taken back to UDA. After obtaining the legal opinion, action would be taken to recover the arrears.
(n) Arrears for the period of 01.05.1990 to 13.06.2003 for the use of stores at charmers granaries by National Paper Corporation was Rs. 10,680,648/-. National Paper Corporation is under liquidation process. Action will be taken to recover these arrears.
2.2.6 Non compliance with laws, Rules, Regulation (a) Even though the Authority reported a loss in the year 2009, the Authority had sufficient funds to pay bonus. Since the authority is held responsible for implementation of massive town improvement projects. All those projects are not financially viable, but add lot of environment & economic value to the country. Board of management of the authority has decided to pay bonus in order to motivate the employees. Since this is the practice from the inception.
(b) Rakna Lanka (Pvt) Ltd is a company formed under Ministry of Defence, and considering the security condition at that time it was decided to obtained the service from this company to provide the security for Ministries & Department Ministers approval of Board of Management has been obtained by the (Board Paper No. 113/2008) UDA has stop their service in Oct. 2011.
(c) Follow up action has been taken and most of the Local Authorities have opened the bank accounts.
(d) Action has been taken to recover the salaries paid to officers released to other authorities. Salaries paid to officers released to Ministry of Urban Development and Sacred Are cannot be recovered as the Ministry is no more in operation.
80 Annual Report 2010
(e) Approval has obtained to construct 13 housing units (ground + 7 floors) for residential purpose. Rs 452,941.77 have paid to UDA as 1% service charges. Extra two floors has not approved by the Municipal Council.
(f) Action will be taken to rectify the error. (g) (i) Those officers were on contract basis and Authority has terminated their service at the end of the contract period. Currently all recruitments are done based on the Scheme of Recruitment.
(ii) All such appointments have been terminated as at today.
(iii) Carder committee has already appointed to review the carder & forward for Management Service Department approval
(iv) These shortcomings have been rectified now and suitable employees have recruited to fill the vacancy.
(v) Annual reports up to 2006 have been tabled at the Parliament. Annual report from 2007 -2009 has been forwarded to cabinet approval.
(h) These promotions have been given to Directors and Dy. Directors who have been stagnated in same grade in long period. Promotions given to the positions of senior Directors and Senior Dy. Directors have been withdrawn and other promotions have been forwarded to Management Service Department for approval.
(i) & (j) Stage I of the Secretariat building at Trincomalee was started during the war period & there was no possibility of having progress monitoring meeting at the sight. Progress of the project was ascertained by viewing photographs. Fee was charged for consultancy service provided by the UDA and Central Engineering Consultancy Bureau has agreed to pay the fee on the completion of the project.
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(k) Seven new Board Directors have been appointed representing those sectors from 24th October 2011. (l) Collecting service charge from property developers has terminated from year 2011. 2.2.7 (a) (iv) All activities relating to that development have carried out under the supervision of Presidential Secretariat and expenses incurred are being reimbursed. (b) Replies have been sent to Government Auditors in 2011
3. Financial & Operating Review 3.1 3.2 Operating 3.2.1 Financial Control The reported amount has been corrected in the year 2011 by the Journal No.20121. 3.2.2 (a) (i) Steps have been taken to assign adequate duties to these officers (ii) Considerable number of excess staff has been terminated and action has been taken to fill the vacancies in permanent carder by calling application internally and externally. (b) (i) Procedure in place to authenticate the qualification of the staff after recruiting them to UDA (ii) Steppes have been taken to keep the documents in safe custody
3.2.3 (a) The construction of Horana Bus Stand has been completed and the possession of the trade stalls have been taken over by the Authority. But the delay of transferring the land on lease agreement is due to legal obstacle arose in transferring the possession of this land from Divisional Secretarial to UDA. Action has been taken to lease out properties.
(b) Action has been taken to refurbish the shop according to the requirement of shop owners union. Once the above has been fulfilled, action will be taken to rent out the trade stalls.
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(c) The construction of 2 motor vehicle Park in Ratnapura Town has been completed. As there was a Presidential & Parliamentary General Election in the first half of the year 2010, the renting out leasing out selling & other disposals of government properties had with held. Due to the above transferring of motor vehicle Park for use has been delayed. However the motor vehicle Parks have been handed over to third party w.e.f. 01.05.2011.
(d) The amount paid should be corrected as Rs. 16.8Mn. These funds have been received from General Treasury in order to pay compensation to land owners. However, Real Estate Exchange (Pvt) Ltd Company has faced a Financial Crisis and therefore the project had been delayed. However, the Authority has acquired the said land and work is carried out to implement a low income housing project.
3.2.4 A request has been made to reimburse salaries paid to drivers from the Ministry of Transport. However no expenses have been incurred in connection with the vehicle released to the Urban Settlement Development Authority. As per the decision of UDA Board of Management, a tractor has been released to Kataragama Pradeshiya Sabha in the year 2001.
3.2.5 Fruitless Investment (a) (i) Ocean View Development Company - Rs. 92,000,000 Action has been taken to appoint a representative to protect the Assets of the Company and secure a reasonable return on the investment. Amount of Rs.2,332,044 has been declared as dividend in the year 2011 and the shares of UDA is Rs.1,012,000.
(ii) REAL - Rs. 28,950,000 Action has been taken to cancel the agreements entered with the company and obtain the possession of the land.
(iii) Peliyagoda Warehouse Complex - Rs.299,999,930 Peliyagoda Warehouse Complex is a fully own subsidiary of the Authority. Due to the heavy losses incurred by Company, an action has been taken to forward a cabinet paper for approval to wind up the company.
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3.2.6 (a) Amount of Rs. 16,640,402.96 has been collected and necessary arrangements have been made to recover the remaining installments in the year of 2011.
(b) Arrears collection is in progress. The payments by installments are approved subject to 18% interest p.a. Number of installments are based on the request of each developer. However issuing the certificate of conformity, developers have to pay the full amount of service chargers.
(c ) Recovery procedure is in place.
(d) Due to the two elections (presidential and general) held in year 2010 leasing and sale of govt. properties were temporary suspended. 3.2.7 (a) (i) – (iv) The Colombo Municipal Council has cancelled the COC issued to this property since the Urban Council has some additional areas to the plan, in spite Construction has been completed and in order to issue deeds the Authority has to seek the approval from Condominium Mgt. Authority. However COC is required in order to get that approval from COC Authority. Therefore UDA has issued COC on 10th March 2010. Penalty has been recovered by the Authority at the time of issuing deeds.
(v) According to the Colombo M.C development plan, there is a possibility of approving this construction subject to a penalty. This was approved after charging penalty.
(b) Agreement was signed with District Secretary –Tricomalee and CECB to provide design & build service to this contract. Payments were not recommended on measure & pay basis but on percentage of contract value. Payments have recommended according to the agreement and no extra payments have been made.
(c) Development permits are issued by Local Authority without forwarding the applications to the planning committee where UDA officer represent. Suitable action will be taken to avoid this situation, in future.
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(d) It appears that Developer has produced fake development permit and COC. The case has been handed over to Criminal Investigation Department for future investigation.
(e) (i) –(iii) Development permit has been issued after considering the appeal made by the developer to the Minister of Urban Development and Scared Area. Under the special powers given to the Minister on section 20 of Urban Development Act approval has been granted to issue the development permit
We are considering the possibility of charging 1% service charges to this development as follows,
1. Old developments – according to the regulation issued in year 1986 2. New developments – according to the regulations issued in year 2009
(f) Income of this car park was affected by another welfare car park started by Transport Ministry close to this facility. Therefore the monthly rent was revised considering above competition situation. Due to the high cost of maintaining car park, it was decided to lease out above car park.
3.2.8 Performance (a) Most of the projects has suspended due to lack of funds. However Projects will be reconsidered upon the funds receipt from General Treasury.
(b) Lands proposed for Kottawa Town development project are temporary suspended used for bus stand currently. Therefore project has been temporary stopped. Planning to move the bus stand to Makubura area after getting clearance from SLRDC. Once above has been completed development work would be restarted.
(c) Issuing relating to Dadalla Play Grounds, Shopping Complex –Kanthale, Jayasinghe watta-Thangalla have been resolved and commenced the project in 2011.
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(d) New town –Dodamgolla Commercial complex –Matale These projects have abandoned due to lack of funds.
Beach Park Galle- Stage 1 - This has been taken over by Costal Conservation Department
Kosgama, Moragahahena town development/ Horana fair/ Administrative Complex –Galle Belligaha handiya Action will be taken to identify the issues and start the projects.
(e) Projects have been identified on priority based on available funds have been utilized accordingly. Therefore most of the projects have been abandoned due to lack of funds
4 Expenditure Contrary to Objectives
Circuit Bungalow situated in Mahiyangana is belongs of UDA. Refurbishing that will not be contrary to the objectives of the UDA Act.
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