president & cfo - UB Group

Consolidated Financial StatementSchedules forming part of account for the year ended March 31, 2009 (Contd.)13. (a) The Company’s significant leasing arrangements in respect of operating leases for premises (residential, office,stores, godown, manufacturing facilities etc), which are not non-cancellable, range between 11 months and3 years generally (or longer in certain cases) and are usually renewable by mutual consent on mutuallyagreeable terms.Leasing arrangements entered into prior to April 1, 2001 have not been considered for treatment under AS19 ‘Accounting for Leases’.The Whyte and Mackay Group entered into an operating lease agreement in September 2006 to rent aproperty over a 30 year period at an annual cost of Rs.69.31 Million. The annual rent payable is subject toreview every 5 years. There are no contingent rent payments.The aggregate lease rentals payable are charged as Rent under Schedule 16 to the accounts.Sub-lease payments received Rs. 322.776 Million (2008: Rs. 261.801 Million) have been recognised in thestatement of Profit and Loss for the year and are included under Schedule 14.Total of future minimum lease payments under non-cancellable operating leases for each of the followingperiods:Rs. Million2009 2008(i) Not later than one year; 30.228 8.611(ii) later than one year and not later than five years; 9.337 38.514(iii) later than five years; the total of future minimum sublease payments68.764 69.294expected to be received under non-cancellable subleases at thebalance sheet date;108.329 116.419(b) The Company has acquired computer equipment and cars on finance leases. The lease agreements are for aprimary period of 48 months for computer equipments and for 36 months to 60 months for cars. The Companyhas an option to renew these leases for a secondary period. There are no exceptional/restrictive covenants inthe lease agreements.The minimum lease payments and their present value, for each of the following periods are as follows:2009 2008Rs. MillionParticularsPresentValue ofpaymentsMinimumleasepaymentsPresentValue ofpaymentsMinimumleasepaymentsLater than one year and not later than five years 15.618 17.137 24.074 26.683Later than five years - - - -15.618 17.137 24.074 26.683Not later than one year 11.106 12.930 17.477 20.30426.724 30.067 41.551 46.987Less: Finance Charges 3.343 5.436Present value of net minimum lease payments 26.724 41.551112