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OUR CORPORATE PERFORMANCE GOVERNANCE
Terms and conditions of transactions with related parties:
The sales to and purchases from related parties are made at normal market prices. Outstanding balances at the year end are unsecured, interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables and payables. At each financial year, an assessment of provision for impairment is undertaken through examining the financial position of the related party and the market in which the related party operates. For the year ended June 30, 2022, the Group has no impairment of receivables relating to amounts owed by related parties (2021: Rs Nil). The Company has recorded an impairment of Rs 211.4m during the year ended June 30, 2022 (2021: Rs 52.3m) relating to related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
30. CONTRACTS OF SIGNIFICANCE
Except for transactions as disclosed in note 29 on related party transactions, the Group did not have any contract of significance as defined by the Listing Rules of the Stock Exchange of Mauritius Ltd with any of its Directors and controlling shareholders.
31. CAPITAL COMMITMENTS
Capital expenditure:
Contracted for but not provided in the financial statements Approved by the Directors but not contracted for
2021 Rs’000 21,117 248,215 269,332
THE GROUP
2022
167,896
566,084
733,980
2021
Rs’000
40,788 378,597
419,385
2022
Rs’000
Rs’000
130,980
386,466
517,446
The expenditure for property, plant and equipment will be financed by cash generated by the Group activities and from available borrowing facilities.
The Group’s capital commitments relating to its associates are as follows:
Capital expenditure:
Approved by the Directors but not contracted for
32. CONTINGENT LIABILITIES
2021 Rs’000 21,060
THE GROUP
2022
Rs’000
-
At June 30, 2022, the Group and the Company had contingent liabilities in respect of bank guarantees amounting to Rs 9.7m (2021: Rs 9m) and Rs 5.5m (2021: Rs 1.2m) and contingent liabilities in respect of net current liabilities of one of the Group’s subsidiaries amounting to Rs 92.7m (2021: Rs 106m), both arising in the ordinary course of business from which it is anticipated that no material liabilities would arise.
Legal claim contingencies:
(i) Severance allowance
Legal actions have been initiated by former employees against the Group in respect of unpaid severance allowances. The estimated payout is Rs 39.5m (2021: Rs 41.5m), should the action be successful. Trials are ongoing and therefore it is not practicable to state the timing of payment, if any. The Group has been advised by its legal counsel that it is only possible, but not probable, that the action will succeed. Accordingly, no provision for any liability has been made in the financial statements.
(ii) Voluntary Retirement Scheme
During the year ended June 30, 2022, legal actions have been initiated by beneficiaries of the Voluntary Retirement Scheme against the Group in respect of unpaid benefits. The estimated payout is Rs 28.2m, should the action be successful. Trials are ongoing and therefore it is not practicable to state the timing of payment, if any. The Group has been advised by its legal counsel that it is only possible, but not probable, that the action will succeed. Accordingly, no provision for any liability has been made in the financial statements for the year ended June 30, 2022.
UBP INTEGRATED REPORT 2022 201
THE COMPANY
FINANCIAL STATEMENTS