Page 55 - UBF AR 2018 - E Version
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NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2018
1. REPORTING ENTITY 2. BASIS OF PREPARATION
1.1 General 2.1 Statement of Compliance
UB Finance Company Limited is a Limited Liability The Income Statement, Statement of Comprehensive
Company, incorporated and domiciled in Sri Lanka. The Income, Statement of Financial Position, Statement of
Company was originally incorporated as The Finance & Changes in Equity and Statement of Cash Flows together
Guarantee Company Limited on 12 July 1961 under the with Accounting Policies and notes (Financial Statements),
Companies Ordinance No. 51 of 1938 and was re-registered as at 31 March 2018 and for the year then ended, have been
as required under the provision of the Companies Act No.7 prepared in accordance with Sri Lanka Accounting Standards
of 2007 on 26th December 2007. The Company being a (hereinafter referred as LKASs and SLFRSs) laid down by
Finance Company is also registered with the Central Bank The Institute of Chartered Accountants of Sri Lanka and in
of Sri Lanka under the Finance Business Companies’ Act compliance with the requirements of the Companies Act No. 7
No. 42 of 2011 and Finance Leasing Act No.56 of 2000 of of 2007 and the presentation of the financial statements
Sri Lanka. is also in compliance with the requirements of the Finance
Union Bank of Colombo PLC (Parent company) together Business Act No. 42 of 2011.
with its US based strategic investment partner ShoreCap 2.2 Basis of Measurement
II acquired The Finance & Guarantee Co. Ltd. on 1st The financial statements of the company have been
November 2011. The Company was restructured, re prepared on a historical cost basis, except for land and
branded & launched as UB Finance Co. Ltd. on 25 April building, available-for-sale financial investments that
2012. The Company’s Registered Office / Head Office are have been measured at fair value and liabilities for
currently located at No.10, Daisy Villa Avenue, Colombo defined benefit obligations is recognized as the present
04. value of the defined benefit obligation.
1.2 Parent Entity and the Ultimate Controlling 2.3 Functional and presentation currency
Parties The financial statements presented in Sri Lankan rupees
The Company’s immediate parent is Union Bank of have been prepared on a historical cost basis except
Colombo PLC and ultimate controlling party is TPG Asia otherwise stated.
GenPar VI,L.P, registered in the Cayman Island. 2.4 Presentation of Financial Statements
1.3 Principal Activities and Nature of Operations The company presents its statement of financial position
As a Finance Company registered with the Monetary broadly in order of liquidity. An analysis regarding
Board of the Central Bank of Sri Lanka, the principle recovery or settlement within 12 months after the
business activities of the Company include investment reporting date (current) and more than 12 months after
activities such as accepting fixed deposits and savings the reporting date (non–current) is presented in note
accounts, finance activities such as providing lease, hire 33.14.3.
purchase and loan facilities and working capital activities 2.5 Materiality and Aggregation
such as factoring. The Company also deals in real estate In compliance with LKAS 01 (Presentation of Financial
and other investment and credit activities. Being the first Statements),each material class of similar items is
finance company to be backed by a commercial bank presented separately in the Financial Statements. Items
in the private sector, UB Finance Company Limited is of dissimilar nature or functions too are presented
uniquely positioned to offer its customers “The versatility separately, if they are material.
of a finance company backed by the strength of a bank”. Financial Assets and Financial Liabilities are offset and
1.4 Date of Authorization for Issue the net amount reported in the statement of financial
The Financial Statements of UB Finance Company Limited position, only when there is a legally enforceable right to
for the year ended 31 March 2018 was authorized for offset the recognized amounts and there is an intention
issue in accordance with a resolution of the Board of to settle on a net basis, or to realize the assets and settle
Directors on 28 June 2018. the liability simultaneously. Income and expenses are
not offset in the income statement unless required or
1.5 Director’s Responsibility Statement permitted by any accounting standard and as specifically
The Board of Directors is responsible for the preparation disclosed in the accounting policies.
and presentation of the Financial Statements of UB 2.6 Comparative Information
Finance Company Limited as per the provisions of the The Financial Statements of the Company provide
Companies Act No. 07 of 2007 and the Sri Lanka Accounting comparative information in respect of the previous
Standards (LKAS/SLFRS). period. In addition, the company presents an additional
Statement of Financial Position at the beginning of the
Annual Report 2018 earliest period presented when there is a retrospective
application of an accounting policy and previous year’s
figures and phrases have been re-arranged whenever
necessary to confirm to the current year’s presentation.
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