Page 82 - UBF AR 2018 - E Version

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2018

31. COMMITMENTS AND CONTINGENCIES

31.1 Lease Arrangements

Operating Lease Commitments - Company as Lessee

The Company has entered in to operating leases for Company premises. There are no restrictions placed upon the

lessee by entering in to these leases.

Future minimum lease payments under non cancellable operating 2018 2017
leases as at 31 March are, as follows;
Rs. Rs.

Within one year 31,473,750 30,328,800
After one year to five years 121,474,855 125,069,369
More than five years
33,680,955 61,912,191

186,629,560 217,310,360

31.2 Litigations against the Company
L itigation is a com mon occu rrence in the Com pany indu stry due to the n ature of the business undertaken. The
31.3 Company has an established legal protocol for dealing with such legal claims. Once professional advice has been
31.4 obtained on the certainty of the outcome and the amount of damages reasonable estimated, the Company makes
adjustments to account for any adverse effect which the claims may have on its financial standing. Set out below are
unresolved legal claims against the Company as at the year end for which adjustments to the Financial Statements
have not been made due to the uncertainty of it's outcome.
Litigation s agains t the UB Finance C ompany Limited

a DLM 164/16, DSP 266/12, DMR 1608/14, DMR 1609/14, DMR 1610/14, DMR 03020/15, HC/Civil/177/10,
4107/11 M, 2121/P/DC, DMR/1615/17
Loan/ Lease based cases (in relation to immovable assets).

b DSP 222/10, DMR 925/14.
Loan/Lease based cases ( In relation to movable assets) .

c DTS 279/08.
FD related cases.

d B 4004/15, B 4005/14, CHC 533/15, CHC 534/15, CHC 535/15, CHC 536/15, CHC 503/15, SC/FRA/207/17,
SC/FR/317/19.
Share - ownership related cases.

e LT/08/641/2012, LT/02/512/2015, LB/76305 MC, LB/76306 MC, LB/76308 MC, 3540 A.
Labour Tribunal cases.

Contingent Liabilities

a. The Company has recognised that there could be a contingent liability in respect of certain real estate
projects entered into by the previous management. This exact nature of the liability and its extent cannot be
determined at this point of time due to the non availability of sufficient information.

b. The Company has received a tax assessment from Inland Revenue Department for an amount of Rs. 27 million
for the year 2014/15. The Board of directors is in the view that this can be defended and has appealed against
the assessment.

c. The Company has received a tax assessment from Inland Revenue Department for an amount of Rs. 94 million
for the year 2015/16, the Board of directors is in the view that this can be defended and has started appealing
process accordingly.

d. The Company has received a judgement against the Company and the Company has filed leave to appeal
applications at the Civil appelate.

Capital Commitments
The Company has no commitments for aquitision of Property Plant & Equipments insidencial to the ordinary
cause of Business.

80 UB Finance