Page 64 URBAN DEVELOPMENT CORPORATION AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED MARCH 31, 2009
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OTHER DISCLOSURES - EMPLOYEES The Group 2009 2008 $’000 $’000
The Corporation 2009 2008 $’000 $’000
Staff costs incurred during the year in respect of employees were: Senior executives emoluments Salaries and wages Pension contributions Statutory contributions Other
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51,821 585,411 289,219 76,148 32,595
63,556 664,159 19,428 64,739 9,517
51,821 490,867 268,876 70,914 -
61,848 533,728 ( 35,150) 57,081 -
1,035,194
821,399
882,478
617,507
COMMITMENTS AND CONTINGENCIES (a)
Commitments The Group and the Corporation have estimated cost of $645.092 million (2008: $900.845 million) to complete operational projects.
(b)
Contingencies - litigation Gorstew Limited and Sandals Whitehouse Management Limited claimed against UDC and NIBJ, US$41.5M for project overruns re Ackendown Development. In addition the claimants also claimed against UDC and Ackendown special damages in the sum of US$28.9M with respect of negligent misstatement, breach of warranty, breach of lease agreement and breach of technical service agreement. The entity’s lawyer, Livingston, Alexander, Levy considers that the Group has a good defence to the claim and a defence has accordingly th been filed on 19 January 2006. Accordingly no provisions have been made regarding the above matters. Under the terms of Reference Agreement dated June 2008, it was agreed that the matter goes to arbitration. Mr. Justice Hugh Small, Q.C. was appointed Arbitrator. A proposed date for the arbitration was set for March or April 2009.
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OPERATING LEASE ARRANGEMENTS Property rental income earned during the year for the Group was $246.628 million (2008: $222.404 million) and the Corporation, $206.052 million (2008: $145.573 million). At balance sheet date the Group had contracted with tenants for the following future minimum lease payments:
The Group and the Corporation 2009 2008 $’000 $’000 Within one year In the second and third years
273,646 362,514
120,817 304,235
636,160
425,052