2010-11 - Grasim

ULTRATECH CEMENT LANKA (PVT) LIMITED
27 CAPITAL AL EXPENDITURE COMMITMENTS
There is no material capital expenditure committed by the company as at 31 st March 2011 other than
disclosed in note number 16 to the financial statements.
28 CONTINGENT LIABILITIES
The Sri Lankan Customs commenced an inquiry on the allegation that dividends declared by the Company
and remitted to the Parent Company represents part of settlement in respect of the cement imported by
the Company and the additional duty is payable by the Company. The Sri Lanka Customs have not provided
a basis for any value to be attributed as alleged additional duty payable. The inquiry was last held on
01 st September 2010.
The Company has also filed a written application in the Court of Appeal in seeking inter alia to quash the
aforesaid decision by Sri Lanka Customs to hold the said inquiry and the said application is at the stage of
filing counter objections by the respondents. The next hearing date is scheduled for 30 th May 2011.
The Company contends there are no basis to include dividends paid in the value of goods and consequently
intend to resist the aforesaid contention of the Customs at any inquiry.
Bank Guarantee amounted to USD 50,000 has been placed in favor of Sri Lanka Ports Authority to bid for a
tender.
There were no other contingent liabilities as at the balance sheet date which require adjustments or
disclosure in the accounts, except for the matters stated above.
29 EVENTS OCCURRING AFTER THE BALANCE SHEET DATE
No circumstances have arisen since the balance sheet date which would require adjustments to or disclosure
in the financial statements.
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