Ministry of Difence - The Parliament of Sri Lanka | Welcome Annual Report 2010 CHAIRMAN’S REVIEW The Urban Development Authority (UDA) has an exceptional identity in the entire urban

Ministry of Difence

Annual Report 2010

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

1 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.


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

mailto:[email protected]


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.


BOARD OF MANAGEMENT

Mr. Janaka Kumarajith Perera

Kurukulasuriya (Chairman)

BSc. Eng. (Hons)

MA (Econ)

P.G. Dip in Port & Costal

Engineering (Norway)

Chartered Engineer,

F.I.E. (SL)

Involved in number of major port development projects from the

inception and up to completion, mainly Hambantota port project,

Colombo port expansion project, Galle and Oluvil port projects.

In all those projects involved in Technical, Financial & economic

activities

Mr. Jayantha Wickramasinghe

(Board Member)

Higher Education in the fields

of Accountancy & Business Studies

at the Twinckneham Collage of

Technology,

Middlesex, United Kingdom

Chief Executive Officer of Lanka Logistics and Technologies

Limited [LLTL] from its inception in October 2006.

Managing Director of the first Digital wide area paging

network which specialized in the provision of radio

engineering & telecommunication solutions

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. SLIA I, SLIA II, SLIA III, AIA

(SL)

Chartered Architect

01.11.89 to 31.08.2001 At Surath Wicremasinghe Associates

01.11.2001 - 31.08.2001 At Chandra Gunawardena Associates

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

(Board Member)

BSc Eng (Hons)

MBA, PG DP (Com.Tec),

PG Dip (Elecity. Dist.),

C Eng. MIE (SL), MIET,MIEEE

Electric Utility Management

Dr. B.M.S. Batagoda

(Board Member)

PhD in Environmental Sciences (UEA, UK)

MSc in Natural Resources

Management (MSU, USA)

Attorney-at-Law

BA (Hons) SL

Responsible for supervising 233 State Owned Enterprises

including State Banks. This includes providing good governance, performance monitoring and make sure the public enterprises are commercially viable.


Dr. Priyath Bandu Wicrama

Muneege

(Board Member)

BSc Eng (Hons) Mechanical

Engineering University of

Moratuwa,

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

Executive Director of Sri Lanka Ports

Authority

Vice Chairman,

Chairman, Chief Executive of the Ports Authority

Chairman of the Sri Lanka Port

Management & Consultancy Services limited

Chairman of Jaya Container terminal services (Pvt.) Limited

Dr. Nalaka Godahewa

(Board Member) Ph.D, MBA B.Sc. Eng. (Hons) FCIM,

FCMA

CMA (Australia)

Chairman of Sri Lanka Tourism Development Authority

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


KEY PERSONNEL 2010

Chairman

Mr. Sanath Weerakoon

Mr. Janaka Kumarajith Perera

Kurukulasuriya

Working Director Mr. Tissa Yapa

Director General

Mr. H. Prasanna Silva

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

Province ) Mrs. I.S. Weerasooriya

Deputy Director General (Finance) Ms. Wasantha Geeganage

Deputy Director General (HRM) Mr. V.M. Perera

Director (HRM)

Mr. G. Rupasena

Mrs. Mallika Wijewardana - Acting

Director (Legal) Mrs. S. Karunanayake

Director (Progress Control & Public

Relation) Mrs. Shirani Ariyathilake

Director (Development Planning - N&E) Mr. R.M. Ariyadasa


Director (GIS) Mr. L.H. Indrasiri

Director (Land Development &

Management) Mr. G.W.G. Abeygunawardane

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


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

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

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


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.


- 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


- 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.


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.


NORTH WESTERN PROVINCE

Client name

Type of development

Total cost

estimate

(Rs)

Present position Achievement / Benefit

Cost incurred by UDA (Rs)

% of completion

Pannala Pradeshiya Sabha

Construction of Multifunction building at Makandura.

85.25 Mn 85.25 Mn 90% Pannala Pradeshiya Sabha Agreed to the pay 2% of total estimated 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 Pradeshiya Sabha

Construction of market building at Galgamuwa.

47Mn 47Mn 60% Construction by project division Head office.


Construction of bus stand & shops at Galgamuwa.

15.8Mn 15.8Mn 75% Total consultancy fees to the UDA for the architectural consultancy services is Rs.637,500.00 Galgamuwa Pradeshiya Sabha has already paid 100,000.00 to the UDA as a part payment

Maho Pradeshiya Sabha

Construction of bus stand & shops at Maho.

54Mn 54Mn 40% Maho Pradeshiya Sabha has agreed to pay 1.25% +Rs.50,000/= to the UDA for the Architectural Consultancy service.

Anamaduwa Pradeshiya Sabha

Bus stand & shops at Anamaduwa.

42Mn 42Mn 40% Anamaduwa Pradeshiya Sabha has agreed to pay 1.25% +Rs.50,000/= to the UDA for the Architectural Consultancy service.

Nikaweratiya Pradeshiya Sabha

Construction of bus stand & shops at Nikaweratiya.

17.6Mn 17.6Mn 75% Conducted by project division head office.


Children park 2.9Mn 2.4Mn 95% Maho Pradeshiya Sabha has agreed to pay 2% of the total estimated 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.


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

Cost

Estimate

(Rs.)

Present Position Achievement/ Benefit

Cost

incurred

by Client

(Rs.)

% of

completion

Peradeniya Developer New Town Development

project at Iriyagama,

Peradeniya.

1500Mn

(Stage i)

37.1Mn 10% A new town will be

constructed close to

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

Secretary

Bus Stand Development

Naula

35 35 100%

Kandy District

Secretary Kandy

City Centre Development 350 Design

proposal

completed

Town beautification Social

Development


EASTERN PROVINCE

SOUTHERN PROVINCE

Area Client Name Type of

Development

Total Cost

Estimate (Rs.)


Cost

incurred by

UDA/Client

(Rs.)

% of

completion

Kantale

Kantale

p/sabha

Leelatne play

ground

86 million 17 million 20% Works stopped due to

non availability of funds.

Kantale

Kantale

p/sabha

Town centre

development

a. Pola

b. Bus stand

c. Retail shop

d. Retail shop stage II

25 million

69 million

22 million

3 million

129 million

25 million

41 million

13 million

8 million

87 million

100%

60%

60%

60%

Works stopped due to

non availability of funds.

Kantale

Kantale

p/sabha

Retail Shops, Bus

Stand, Leelarathna

Play Ground

22.0

76.0

86.0

90%

55%

10%

Improvement to town

centre

Reduce Traffic

Area Finance by Type of Development Total

Cost

Estimate

(Rs.)


Cost

incurred by

Client (Rs.)

% of

completion

Galle MC UDA Mixed development

project at Karapitiya

500

(Approx)

- Increase revenue

- To provide fully

fledge commercial

and health facilities

in the region

Galle MC

UDA Administrative

Commercial Complex

at Beligaha Junction

1800

(Approx)

Perimeter

survey

completed

and survey

plan

prepared.

To provide better

administrative

facilities for the people

Galle MC

Guide lines for

maintaining the

Historic,

Architectural and

urban design

characteristics of

existing and new

developments within

Galle MC

2mn Completed


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.

Area Finance by Type of Development Total

Cost

Estimate

(Rs.)


Cost

incurred by

Client (Rs.)

% of

completion

Galle MC

Coast

Conservation

Department

Galle MC

Beach Park Galle 14 mn

(Approx)

Plans

Completed

To provide better

recreation facilities to

local & foreign

visitors

Radampola Commercial Complex 8.0mn 8.0mn Completed Improvements to

Small Town


- 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.


Other Town Development in Western Province

Client name Type of

development

Total

Revenue

estimate

(Rs.mn)

Present position Achievement / benefit

Consultancy fee paid by

Client (Rs.mn)

% of completion

Seeduwa UC Library Building 0.219 0.219 80%

WPPRPTA Bus Stand 1.4 82% Town expansion

My. of LG&PC

Extension to the Auditorium of the Ministry

0.3 25%

Dept. of Fisheries

Payagala PIO Office 0.2 0.2 50%

CENTRAL PROVINCE

Client name Type of

development

Total

Revenue

estimate

(Rs)


Consultancy fee paid by Client (Rs)

% of completion

Gangawata Korale Pradeshiya Sabha

Construction of Pradeshiya Sabha office building at Ampitiya,Kandy.

380,000.00 100,000.00 10% An office building with modern facilities.

Central Province Passenger Transport Authority

Construction of bus stand, Commercial & Office facilities at Deltota,kandy.

810,000.00 200,000.00- 10% Providing of a proper bus stand with infrastructure facilities.

Sri Lanka Tourism Development Authority

Preparation of Tourism Plan for Kuchchaveli in Trincomalee District.

100,000.00 100,000.00 100% Development of the coastal belt at Kuchchaveli within the guide line of UDA,CCD,CEA,and RDA ect.

District Secretary –Nuwara Eliya

Project Management Services for Construction of the District Secretariat Building at N’ Eliya.

6,157,024.82 4,465,430.85 90% A fully equipped Secretariat Building for Nuwara Eliya.


NORTH WESTERN PROVINCE

Client name Type of

development

Total

Revenue

estimate

(Rs)


Consultancy fee paid by Client (Rs)

% of completion

Pannala Pradeshiya Sabha

Construction of Multifunction building at Makandura.

1,384,005.00 300,000.00 90% Pannala Pradeshiya Sabha Agreed to the pay 2% of total estimated 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.


Construction of market building at Galgamuwa.

637,500.00 - 60% Construction by project division Head office.


Construction of bus stand & shops at Galgamuwa.

247,500.00 100,000.00 75% Total consultancy fees to the UDA for the architectural consultancy services is Rs.637,500.00 Galgamuwa Pradeshiya Sabha has already paid 100,000.00 to the UDA as a part payment


Construction of bus stand & shops at Maho.

725,000.00 - 40% Maho Pradeshiya Sabha has agreed to pay 1.25% +Rs.50,000/= to the UDA for the Architectural Consultancy service.

Anamaduwa Pradeshiya Sabha

Bus stand & shops at Anamaduwa.

575,000.00 - 40% Anamaduwa Pradeshiya Sabha has agreed to pay 1.25% +Rs.50,000/= to the UDA for the Architectural Consultancy service.

Nikaweratiya Pradeshiya Sabha

Construction of bus stand & shops at Nikaweratiya .

270,000.00 - 75% Conducted by project division head office.

Alawwa Pradeshiya Sabha

Proposed bus stand development at Narammala.

1,200,000.00 10% Alawwa Pradeshiya Sabha has agreed to pay 2% of the total estimated cost to the UDA as the Architectural Consultancy fees (total architectural Consultancy fees -2.35M).

Alawwa Pradeshiya Sabha

Proposed bus stand development at Alawwa.

2,350,000.00 - 10% Alawwa Pradeshiya Sabha has agreed to pay 2% of the total estimated cost to the UDA as the Architectural Consultancy fees (total architectural Consultancy fees -1.2M).


Other Services provided during the year 2010 (Mapping, Design Plans)

Type of Project Funds Provided Present Position/ Service

provided

Development Plan for

Jaffna MC area

Jaffna MC/ NPC/ Task

Force

Completed the

Development Plan

Mankulam Regional Urban

Centre Development

NPC/ Task Force Completed the

Development Plan

Mannar Urban

Development area

Mannar UC/ UDA Draft Plan

Integrated Strategic

Environmental Assessment

CEA/ DMC/ UNDP Provided GIS input to

develop ISEA and

identification opportunities

Green City Development

project

UDA/ 3-K City Project Proposal completed for

water based project at

Mulleriyawa

Digital Mapping for

Gampaha District

My. of Economic/ SL

Army

Developing Digital

Mapping

Haputale UC area

Development Plan

Haputale UC/ UDA Draft Plan

Monaragala Development

area Plan

Monaragala Pradeshiya

Sabha/ UDA

Draft Plan

Mullaitivu Development

Plan

Mullativu Divisional

Secretary/ UDA

Draft Plan

Land use Survey City of

Colombo

UDA Initial data extraction

Pilikottuwa and Varana

Historical area

WPC/ UDA Completed


Leased out properties of Lands and Buildings of the Authority

LAND LEASE OUT FOR COMMERCIAL DEVELOPMENT - 2010

District Lessees Extent in

Perches

Total

Consideration

(Rs.)

Total paid

(Rs.)

Balance

Receivable

(Rs.)

Colombo Homagama multi

purpose

Co-operation society

Ltd

2R 0.94P 21 Million 8 Million 13 Million

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

in

Perches

Total

Consideration

(Rs.)

Total paid

(Rs.)

Balance

Receivable

(Rs.)

Colombo JSS photographic

training school

21.24P 130,000/- per

annum

130,000/- -

Colombo Bamunuarachchige

Don Upali

Senaviratna

0.3399P 1.3 Million 1.3 Million

-

Colombo Mirisavetiya Maha

viharaya

Anuradhapura

30P 119,000/- per

annum

119,500 Annual rental of

Rs.119,500/-

Colombo Buddisht Cultural

centre Dehiwala

62P 1,000,000/- per

annum

1,000,000/- Annual rental of

Rs.119,500/-

Colombo Pamunuwa Grama

Sanwardana

Samithiya

10P 24,000/- per

annum

24,000/-

-

Colombo Udahamulla

Mrs. Deepali

Wijesundara

15P 90,000/-(convert

to transfer deed)

90,000/-

-

Rathnapura

Sri Lanka bureau

of foreign

employee

80.00P 6.9 Million 6.9 Million

-

Anuradhapura Ruwanweli

Maha seya temple

of Anuradhapura

30P 62,500/- per

annum

62,500/- -


ALLOCATED ON OUTRIGHT BASIS

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

Perches

Total estimate

value

(Rs.)

Total compensation

paid

(Rs.) Colombo Acquisition of land for housing

along Kirullopone D.M.

Colombage Mw (10/2/80)

127.64 - 1,030,501.08 (Interest)

Colombo Acquisition of land for

development at Kirullopone off

station Rd.

108.73 - 17,500,000

Colombo Acquisition of land for

development at Kirullopone off

station Rd.

49.1 - 7,600,000

Colombo Acq. of land for the Moratuwa

town development

85P 51M

51M (+ Interest)

District Number

Of leases

Extent in

Perches

Total

Consideration

(Rs.)

Total paid

(Rs.)

Balance

receivable

(Rs.)

Colombo Outright sale Shop (Peoples

park)

1,070,000/- 1,070,000/-


park)

3,770,005/- 3,770,005/-


park)

1,300,232/- 1,300,232/-

Colombo Sri Lanka

Telecom

88P 3,234,330/- 2,395,800/- 838,530/-


District Project Extent in

Perches

Total estimate

value

(Rs.)

Total compensation

paid

(Rs.) Colombo Vesting of state land in mental

hospital at Angoda

8000P 1600M Nominal land value

Colombo Vesting of state land in fever

hospital at Angoda


Kegalle Acq. of land for Rambukkana

town development

813.51P 1.8M 1.8M (+ Interest)

Anuradhapura Vesting of state land for office

building at North Central Pro.

50P 2.5M 2.5 Nominal land value

Hambantota Acq.of additional land for beach

park at Hambantota

993P 23.0M 20.0M (+ Interest)

Hambantota Vesting of land for commercial

Deve. At Hambantota

4323.5P 130M Nominal land value

Hambantota Vesting of land for relocation of

effected families at Hambantota


Hambantota Vesting of land for Hambantota

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


Physical Developments

Following major physical developments are made by UDA during the year 2010.

Area Type of

Development

Total Cost

(Rs.mn)

Present Position Achievement/

Benefits Cost incurred

by UDA

(Rs.mn)

% of

completion

Fort

Transworks

House Land

Mixed 22 Billion 0.8 Hotel room offices,

Parking to the city

Pettah

Charmers

Grannary site

Mixed 25.0 1.0 25% Office and Parking

space to the city

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.


1%

10%

3%

18%

3%

36%

5%

1%

23%

Employees of UDA

Senior Manager

Manager

Junior Manager

Enf. / Oper./ Ext./

Management Assistant Tec

Management Assistant Non Tec

PL Skilled

PL Semiskilled

PL Unskilled

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


0

100

200

300

400

500

600

700

800

900

1000

2006 2007 2008 2009 2010

N

o

o

f

S

t

a

f

f

Staff Growth

Others

Non Executive

Executives

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


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,


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


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.


AUDITOR GENERAL’S REPORT






















URBAN DEVELOPMENT AUTHORITY

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 31ST DECEMBER, 2010

31st December 31st December 31st December 31st December

2010 2009 2010 2009

Note Rs. Rs. Rs. Rs.

2 1,154,274,061 788,787,377 845,425,793 740,495,445

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) - - -

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)

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.

Authority

Other Expenses

Revenue

Other Income

Administration Expenditure

Group

FINANCIAL STATEMENTS



As at 31st December 2010

ASSETS Note 2010 2009 2010 2009

Rs Rs Rs Rs

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

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

19,908,809,540 7,739,501,807 20,047,053,438 8,122,564,601

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

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

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

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

CONSOLIDATED BALANCE SHEET

TOTAL ASSETS

CURRENT ASSETS

NON CURRENT ASSETS

Group

TOTAL EQUITY & LIABILITIES

EQUITY & LIABILITIES

CAPITAL & RESERVES

NON CURRENT LIABILITIES

CURRENT LIABILITIES

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


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


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)



STATEMENT OF CASH FLOW

For the Year Ended 31st December 2010

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

2009

Rs. Rs.

2010



CONSOLIDATED CASH FLOW STATEMENT -

For the Year ended 31st December 2010


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

2009

Rs. Rs.

2010



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.





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.





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.





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.





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.




FOR THE YEAR ENDED 31ST DECEMBER, 2010


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

AuthorityGroup




AS AT 31ST DECEMBER 2010


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

2.3.10 Fee 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 - -

AuthorityGroup




AS AT 31ST DECEMBER 2010


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

3.3.10 Car Parking Fees 2,390,326 8,348,272 2,390,326 8,348,272

3.3.11 Other Miscl revenue 3,682,557 1,966,060 1,248,297 1,966,060

3.3.12 Sale of Publication 1,960,322 1,555,873 1,960,322 1,555,873

3.3.13 Transfer Fee For Legal Matters 162,472 2,279,098 162,472 2,279,098

3.3.14 Sundry Income from staff 746,440 249,429 746,440 249,429

3.3.15 Membership 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

AuthorityGroup





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





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

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

Group Authority

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.





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 126,301 189,3012,116,899,643 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

Group Authority



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT


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

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

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

14.1

14.2

Group Authority





Group Authority

2010 2009 2010 2009

RS RS RS RS

15 Capital:

15.1 1979 Rs. 20,000,00015.2 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 14,362,6437,434,482 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

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

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

The authority(UDA) has issued 5 years redeemable debentures to the value of Rs. 10 billion as at 31st December 2010 to facilitate the

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.

Loan balance as at Balance Sheet date represent the loan installments released from the year 2009 from NSB out of the total credit





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 12,862,14025 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

Group Authority


URBAN DEVELOPMENT AUTHORITYNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTAs at 31st December 2010

27 EVENTS OCCURRING AFTER THE BALANCE SHEET DATENo 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 DirectorMr. 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 DirectorMrs. Renuka Wikramasinghe - Director (PM) UDA DirectorMrs, S.Karunanayka- Director (Legal) UDA Director

(3). UDA Rest Houses Company Ltd Mr.Janaka Kurukulasuriya -Chairman UDA ChairmanMiss 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

Name of the Company Nature of Transaction 2010 2009Rs. 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.

Value


FINANCIAL REVIEW

SUMMARISED BALANCE SHEET As At 31st December

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


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

(Rupees in Millions)


0

5,000

10,000

15,000

20,000

25,000

2006 2007 2008 2009 2010

(Rs.)

Year

ASSETS

Current Assets Non Current Assets TOTAL ASSETS

-5,000

0

5,000

10,000

15,000

20,000

25,000

2006 2007 2008 2009 2010

(Rs.)

Year


Capital & Reserves Current Liabilities

Non Current Liabilities TOTAL EQUITY & LIABILITIES


FINANCIAL REVIEW

SUMMARISED INCOME & EXPENDITURE STATEMENT

For the Year Ended 31st December

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)

(Rupees in Million)


-

200

400

600

800

1,000

1,200

1,400

2006 2007 2008 2009 2010

(Rs.)

Year

Income & Expenditure

Income

Expenditure

(600)

(500)

(400)

(300)

(200)

(100)

-

2006 2007 2008 2009 2010

Net Profit /(Loss)

Net Profit /(Loss)


2006 2007 2008 2009 2010

Rs. Rs. Rs. Rs. Rs.


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

(Rupees in Million)

FINANCIAL REVIEW

SUMMARISED CASH FLOW STATEMENTS As At 31st December


PROVINCIAL OFFICES, DISTRICT OFFICES AND SUB OFFICES

S/N Provincial Office Address Telephone No.

01 North Western Provincial Office

No. 03/A, Mihindu Mawatha, Kurunegala.

037-2223815 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, H.R. Gunawardena Mw,Badulla

055- 2229959 055- 2223721

04 Sabaragamuwa Provincial Office No. 427, Colombo Road, New Town, Ratnapura

045- 2222086 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, Anuradhapura

025- 2223391 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, Old Market Road, Kotuwegoda,Matara

041- 2230413 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, Ampara.

063-2222411

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, Kataragama.

047- 2235343

10 Gampaha District Office 03rd Floor, Pradeshiya Sabha Building, Gampaha.

033- 2221934 033- 2234757

11 Puttalam District Office No. 97/24, Seda Uyana Place, Kurunegala Road,Chilaw

032- 2221742 032- 2223092

12 Vauniya District Office Urban Council Building,Park Road, Vauniya

024- 2220518

13 Kegalle District Office No. 21, Palladeniya Road,Kegalle. 035-2231935


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.


(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.


(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.


(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.


(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.


(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.


(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.


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.


(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.


(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.

Documents

Ministry of Difence - The Parliament of Sri Lanka | Welcome Annual Report 2010 CHAIRMAN’S REVIEW The Urban Development Authority (UDA) has an exceptional identity in the entire urban