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1 <$ÌÂÚæ <$Ìõ$< Mz;L mwpf;if ANNUAL REPORT 2010 `

2 NATIONAL TRANSPORT COMMISSION (NTC) Address 241, Park Road, Colombo 05. P.O. Box : 1560 Web Site info@ntc.gov.lk i

3 Hon. Minister of Private Transport Services, Ministry of Private Transport Services, No. 34, Narahenpita Road, Nawala. Annual Report In terms of Section 14 (2) of the Finance Act No. 38 of 1971, and chapter 05 and 06 of the Public Enterprises Guidelines for Good Governance, the National Transport Commission has the honor to forward herewith the Annual Report Financial Statement and Auditor General s Report of the National Transport Commission for the year ending 31 st December Sgd. Sashi Welgama Chairman National Transport Commission. ii

4 Contents Members of the Commission 01 Message from the Chairman 02 Overview 03 Performance 05 Annual Accounts 17 Auditor General s Report 24 iii

5 Members of the Commission January, 2010 April, Prof. Amal S. Kumarage -Chairman 2. Mr. A. Sapumana (Ministry of Transport) -Member (Ex- officio) 3. Mrs. S. P. Vithanage (Ministry of Finance & Planning/Treasury) -Member (Ex- officio) 4. Mr. Upasena Senanayake -Member 5. Mr. Y.P.R.M. Laffeer -Member 6. Dr. Anil Jasinghe -Member 7. Mr. M.J.M.S. Jayasundara -Member September, 2010 December, Mr. Shashi Welgama -Chairman 2. Mr. K. Buddhadasa -Member (Working Director) 3. Mrs. D. A. Ranawana (Ministry of Private Transport Services) -Member (Ex- officio) 4. Mr. W. G. Chandrika (Dept. of Public Enterprises/Treasury) -Member (Ex- officio) 5. Ms. U. L. Jayanthi De Silva -Member 6. Mr. K.D.K. Tilakaratne -Member 7. Ms. Sepali Rupasinghe -Member 1

6 Message from the Chairman On behalf of the Board of Directors, I am pleased to present the Annual Report for the year Transport in its general sense, means carrying or conveying passengers or goods from one place to another by land, air, or water. With the emergence of globalization transportation has come to play a very vital role all over the world without exception in Sri Lanka too.there are several bodies through which transportation in Sri Lanka is regulated, namely Ministry of Private Transport Services, Ministry of Transport, National Transport Commission, Sri Lanka Transport Board, Sri Lanka Railways, Provincial Passenger Transport Authorities Private bus operators etc. National Transport Commission was established in 1991, by an act of parliament no.37 of The major function of the Commission is to advice the Government of Sri Lanka on National Policy relating to passenger transport by omnibus and to establish necessary regulatory framework to ensure an efficient and effective bus passenger transport system for Inter-provincial transport. National Transport Commission has taken a giant leap in filling a common issue faced by all decision makers due to lack of transport data for their decision making and planning needs. NTC collected statistical information from government institutions on Sri Lankan transportation, and provided information covering a wide scope. On the other hand the National Transport Commission has launched several projects namely, GPS based vehicle tracking system for Public Transport, ISO 9001: 2008 Quality Management System, Automated seat reservation system, Promotion of bicycles for school transportation in rural areas other than the general functions of the Commission to name a few functions of the NTC. I would like to express my gratitude to the Hon Minister of Private Transport Services, The Secretary of MPTS, Authorities of Sri Lanka Transport Board, Sri Lanka Railways, Provincial Transport Authorities, All Private bus operators, the General Public who provide information and views to provide better transport network to the nation. I also wish to place on record my gratitude to the Board of Directors, Director General and the Directors of the National Transport Commission and the staff for their efforts and the commitment to move forward amongst many challenges to achieve the targets set out by the Commission. Shashi Welgama Chairman National Transport Commission. 2

7 Overview Our Vision ENSURE A QUALITY, COST EFFECTIVE AND SAFE INTEGRATED TRANSPORT SYSTEM AND SERVICES THAT WILL PROVIDE FOR THE SOCIO-ECONOMIC DEVELOPMENT ACROSS THE COUNTRY AND THE DIFFERENT MOBILITY REQUIREMENTS OF EVERY INDIVIDUAL AND CORPORATE CITIZEN OF SRI LANKA. Our Mission TO ADVISE THE GOVERNMENT OF SRI LANKA ON THE NATIONAL POLICY RELATING TO PASSENGER TRANSPORT AND TO ESTABLISH THE REQUIRED REGULATORY FRAMEWORK IN ORDER TO ENSURE AN EFFICIENT BUS TRANSPORTATION SYSTEM WHICH MEETS THE TRANSPORT NEEDS OF THE PUBLIC. Our Goals / Objectives To continue the development of bus services at a higher level both in quality and quantity. To develop an effective transportation network. To develop a transport system which enables the passengers to choose the bus service which is more suitable to them. To ensure the stability and viability of operators engaged in passenger transport services. To provide financial assistance to less remunerative but socially necessary bus services in rural and developing areas. To plan and develop a methodology which will prevent the environmental damage caused by bus passenger transport services. To increase the productivity of buses by regularizing the turn around times of buses. To ensure the safety and discipline in omnibus transportation. To co-ordinate the omnibus transportation system in both the inter and intra provincial services. To improve the whole labour productivity in the country. 3

8 Constitution of the Commission The Commission consists of three ex-officio members and further five members appointed by the Minister of Transport on the approval of the Cabinet of Ministers. The Organizational structure of the Commission consists of the Chairman, Director General and four other Directors in charge of the Departments of Planning, Operations and Service Monitoring, Quality Assurance and External Relations and Finance and Procurement. By the end of 2010 the approved cadre of the Commission comprised of 190 employees, but the actual number of permanent employees was

9 Performance of the year, 2010 Board Meetings The numbers of Board Meetings held during the year were 07 The numbers of Audit Management Committee Meetings held during the year was Contribution of Socially obligatory Bus Services The bus services based on social requirements were initiated in view of the enhancement of the regional development, as the social economic needs of the rural population will not be met in this bus operation on a commercial basis. The School bus service (Sisu sariya), Rural bus service (Gami sariya) and Late Night service (Nisi sariya) were initiated and financial assistance is provided when they operate 90% of the agreed service. These services are procured from both state and private sector through a transparent bidding process. School Bus Project - Sisusariya The objective of this project was to create an environment in which the children could go to schools well in time without being inconvenienced, mentally or physically and return home safely. This would aim at providing dedicated trips of buses through Sri Lanka Transport Board and Private Operators at pre agreed rates to compensate shortfall in revenue as students are carried at 50% of regular fares. It was expected to provide 850 such services by the end of At the end of the year 2010, 726 school services were operated successfully by involving both SLTB and Private sector. This project is highly appreciated by school authorities, students and parents. There are some requests to be fulfilled another 500 services as well. 5

10 Rural and Uneconomical Services Project - Gamisariya This project focuses an economical and reliable transport services to the community of rural developing areas where are no transport modes to access their daily needs. These would include routes and trips for which a subsidy would be paid, as long as the service actually provided and can be certified by the users. The subsidy will be paid as per the determined surveys and agreed upon. Both Sri Lanka Transport Board and Private Sector buses are involved to provide the services for supervision of these services, village level monitoring committees were established. Up to the month of 2010, SLTB uneconomic service project was handover to SLTB as NTC did not receive uneconomic rural route subsidy funds from the Treasury for Late Night Service (Nisi Sariya) A major drawback in public transport today, is scarcity of buses after night fall and early morning. Therefore National Transport Commission has commenced night services to ease the above problem. Procuring of services from State Sector and Private sector bus operators to ensure bus services at Late Night and Early Morning is the major activity of this project. It was expected to provide 50 services by the end of The progress depicts 47 of such services were in operation at the end of the year. Promotion of Bicycles for school transport in small towns Providing safe, reliable and low cost transport for schooling for children in rural areas is one of the development projects of the NTC. This project has been introduced for the application of non motorized transport mode as an alternative system for the school children. It has been decided to introduce push bicycles to school children in rural areas 6

11 accordingly. To implement a first step of this project, arrangements have been made to distribute 500 push bicycles for school children in Eastern Province within the first quarter of Private Bus Industry Reform Formation of Bus Companies In view of the present deteriorating stage of the passenger transport industry, it has been decided by the Government to restructure the industry, by converting individual operators into shareholders of a limited liability companies. And get companies to operate buses on a systematic scientific and productive way. The Act No. 37 of 1991 and Act No. 30 of 1996 are being amended to suit this restructuring and formation of companies process. With these objectives, 35 companies were targeted to be formed on voluntary basis and 06 companies commenced as a pilot project at the end of the year. 04 companies were registered and pending to commence. It has been scheduled to establish 05 bus companies in the next year. Bastian Mawatha Inter-Provincial Passenger Terminal This project mainly focuses to improve the Bastian Mawatha Bus terminal as an Inter provincial bus terminal with modern technology to provide better transport system. This is a Public-Private partnership project with transit oriented commercial development. It is necessary to systematize the operations of both local and inter-provincial services which can be achieved only by separating the passenger terminals for these services. The management of the bus terminal has been taken over by the National Transport Commission from the Western Province Passenger Transport Authority. Extra works related to the terminal management is on going by the end of the year. Having developed the Bastian Mawatha bus terminal to a reasonable quality, NTC completed the transfer of all long distance bus services to this terminal at the beginning of About 1700 long distance buses leave from this terminal a day, making this the busiest bus terminal in the country. Additional facilities such as extra seating, CCTV monitoring, Public Addressing Systems were implemented at the terminal. Passenger information facilities were also improved. Additional services such as lost baggage were 7

12 also introduced for the benefits of the passengers. Improvements to public toilettes and CCTV systems are planned as short term improvements in A long term development plan is being designed to improve this terminal as a fully integrated transport hub on PPP basis. Vavuniya Terminal It was proposed to construct a Bus Terminal in Vavuniya and a portion of land has been allocated from the Department of Agriculture (Research). The Objective of the project is to provide better infrastructure facilities for the Public Transport system. Legal clearance of the land from GA Vavuniya is requested for establishment of the Terminal. Proposed Bus Terminal site Vavuniya 03 Improving Technology Levels, Developing Infrastructure & Improving of Quality of the Bus service Staff Training and Development During the year under review the Commission made arrangements to train the staff in the fields of Transport Planning, English Language, Management, Procurement, Communication Skills Development, Customer Care, Training on GIS, Traffic Management Strategies and Training of Trainers Programmes. The training programmes were obtained locally through the University of Moratuwa, University of Colombo, University of Kelaniya, University of Sri Jayewardenepura, University of Peradeniiya, Institute of Personnel Management, Ministry of Labour Relations, INGAF Sri Lanka, Skills Development Fund Ltd., and few selected private firms. The staff of NTC also sent abroad for training through various scholarships on Transportation. The 110 numbers of the staff were trained during the year under review. Bus Crew Training, Registration and Monitoring Special training programmes have been launched for drivers and conductors who involved in the passenger transport service. The project objective is to enhance the quality and disciplinary level of Inter Provincial bus crew through driver/conductor training programme and issue identity cards for them. In the year 2010, the target of 8

13 this project was to train 1500 drivers/conductors and issue ID cards for them. In the year 2011, it is expected to formalize a Tamil Medium driver conductor Training Programme in Northern Province by recruiting Tamil Medium Instructors and Coordinate with Provincial Authorities on preparing Training Manual. And also enter a Bar Code on ID to avoid deceits. Progress of Crew Training Training Center Number of trained Number of Training Programmers per Year Drivers Conductors Drivers Conductors Kurugegala Anuradhapura Moratuwa Galle Hambantota Vauvniya Total for Cumulative from Source Department of Quality Assurance & External Relations - NTC Bus Fare Rectification This project was implemented as a result of the recommendation of the Bus Fare Policy which was approved by the Cabinet in According to the Policy, it is recommended to eliminate existing fare anomalies in the fare table. Measuring Routes and rectify bus fares in all island Passenger Transport Bus operating routes are main activities of this project. The Action plan for the year 2010 indicated the rectification of fare anomalies existed in Inter and Intra provincial bus services in Western, Central, Southern and North Western Provinces. The progress of the project during the year 2010 as follows, No. of Routes Rectified Bus Fares Province No. of Routes Rectified Central 580 North Western 365 Southern 390 Western 780 NTC 400 Source Department of Operations and Service Monitoring - NTC 9

14 Preparation of Time tables & Amendments In order to provide equal opportunities to all operators and to reduce competitive driving practices, arrangements have been made to introduce Rotational Timetables by the Commission. The prime objective of this project is to provide quality bus transport service while maximizing vehicle utilization of buses. The progress of the project during the year 2010 as follows, Prepared and Introduced Time tables Route No. Route No.of buses Service Type 98-2 Monaragala - Colombo 32 Normal 401 Elpitiya - Colombo 12 Luxury 4-11 Chilow - Colombo 44 Luxury 94 Kuliyapitiya - Colombo 22 Luxury 99 Badulla - Colombo 18 Luxury 4-7 Puttlam- Colombo 25 Luxury 4-9 Anamaduwa - Colombo 11 Luxury 8 Matale - Colombo 25 Luxury 450 Panadura - Rathnapura 30 Normal 57 Kurunegala - Vaunia 15 Normal 556 Kurunegala - Matale 19 Normal Source Department of Operations and Service Monitoring - NTC Mobile Inspections The Commission has expanded the scope of the flying squad with the newly introduced permit conditions for the purpose of improving quality of the Inter provincial Passenger Transport Service. The numbers of buses were inspected up to the end of the year under review and by spending 6255 number of team duty hours. Public Complaints The Public Complaints Investigation unit was established in view of providing an efficient, safe and courteous service to the public. Receiving and recording of public complaints and conducting inquiries and investigations with regard to permit conditions violations reported by the Monitoring unit and other operational cases as directed by the Chairman and Director General, are main tasks of this unit. The Commission has made arrangements to resolve the complaints related to inter provincial services, at the NTC office and have made arrangements to forward complaints related to intra provincial services, for relevant Provincial Authorities. The complaints relating to SLTB 10

15 services are directed to the Chairman, SLTB. The total detections received as at were 4346 numbers and 3888 numbers of them were resolved and 461 numbers were being pending to resolve at the end of the year Physical Checking of Buses and Issuing of Permits It has been introduced criteria in order to study, monitor and enforce noise reduction of buses and other conditions that have been involved in passenger transport service. The objective of the programme is to enhance quality of bus services that provided to the public. The Commission continued its regular activities in the past year too. The status of Bus Permits at the end of the year is as follows. Status of Inter Provincial Bus Permits as at Type of Services No. of Routes No. of Buses (Services) Normal Semi Luxury Luxury Super Luxury 2 6 Total 2966 Source Department of Operations and Service Monitoring NTC Automated Seat Reservation System The National Transport Commission is planning to launch a mobile based bus tracking and seat reservation (MBBTSR) system for public transport buses. Initially the NTC intends to implement the mobile MBBTSR system for the convenience of long distance passengers. This system will be useful for passengers to reserve seats in a desired bus of a particular day. Since this is a mobile based system, passengers should also be able to locate and track the approach of a bus by simply using short message service(sms) or any other mobile communication method. GPS Based Vehicle Tracking System for Public Transport This system has been introduced in view of providing quality, safety and reliable public passenger transport to the country. The following objectives are expected to achieve through out this project. - Improve the safety of public bus transportation. - To reduce cost and time incurred to execute manual process of Bus operation, monitoring and schedule updates. - To provide a reliable system to track buses with GPS coordinates and speed and other parameters as required. - To improve efficiency and accuracy of transportation service. 11

16 - To provide accurate information on schedule updates to public while generating a very accurate database for NTC to monitor issues of the bus operation. - To provide a seamless communication channel and a collaborative platform between buses, main control rooms and main bus depots. - To utilize as a high speed Warning System to eliminate or minimize accidents. - To promote overall discipline in the private bus industry and help investigate public and operator complaints. In the year under review, GPS (Global Positioning System) introduced for inter provincial services which is operating beyond Tangalle in Galle corridor as a pilot project. It is expected to complete the pilot by selecting suitable vendors, completing policies and procedures and establishing control room and to deploy GPS to Galle corridor and new tendering routes too. ISO 9001:2008 Quality Management System National Transport Commission has decided to select a suitable consultant to prepare ISO:9001:2008 Quality Management accreditation. Phase I - System Study and Training Phase II - Implementation Preparation Phase III Implementation ISO 9001:2008 Quality Management System - Completed 80% of Phase I of the project. 04 Initiation of new services specially to reduce fuel consumption & Traffic Congestion Car Pooling The main objectives of this project were, to increase in the occupancy of cars and there by reduce the number of cars entering into the city of Colombo daily. Ultimately it is expected to reduce fuel consumption, Introduction of new form of travelling, reduce traffic congestion, pollution and parking problems. During the year under review, arrangements were made to develop a Website and its modifications. This programme was introduced the Government and private organizations. But the initial trials with private organizations did not meet the expected objectives. 12

17 Hence it is needed to be re designed and launched. Until the end of the year 2011, the project has been put on hold. City Liner Coach Service and Park and Ride Facility The National Transport Commission has implemented a project to introduce the City Liner Coach service together with Park and Ride facility in Colombo and Suburb. The objective of this project is to reduce the number of private vehicles entering the city in order to alleviate traffic congestion and thereby reduce excess fuel consumption and environmental pollution by vehicle emissions. Six Park & Ride facilities have been planned at convenient locations. City Liner Coach service Park and Ride Facility - Park and Ride facility is in operation at Katubedda. 06 City liner buses are now in operation. This service provides a facility that allows commuters and other people wishing to travel into the city centre, to leave personal vehicles in a secured car park and transfer to luxury coach which will take them as close as possible to their destinations. Park and ride schemes are often marketed as a way to avoid the difficulties of driving in congested traffic and to avoid the cost of parking within the city centre. More importantly the burden on congested roads approaching cities and scarce and expensive city centre parking is expected to be reduced. It was successfully operated with 180 commuters and the service extended up to Wadduwa. 13

18 05 National Transport Data Collection Statistical information on transport activities served as an important basis for transport related decision making. Responsible bodies for collection of transport data, storage, and analysis have not been established in Sri Lanka and this is a common issue for all transport authorities and other transport related institutions/organizations for planning transport related projects & decision making. Similarly there is no any coordination among transport sector authorities in collecting transport data and have to face more difficulties in making decisions for further developments. Scope of this project is to formulate Statistical Annual Report on National Transport Data collected from the relevant institutions under the Ministry of Private Transport Services and produce formal analysis by means of the collected data. Data collection was completed in the year 2010 and printing of the report in Sinhala, Tamil and English Languages will be done during the year Bus & Coach Exhibition The NTC has begun number of challenging projects in restoring quality in bus transportation using ICT Technology. One such project is Bus & Coach Exhibition 2010 which was held on 9 th and 10 th of July at Shalika Ground, Narahenpita. This kind of event was held for the first time in Sri Lanka. Objective of this exhibition were showcase the future of Public Bus Transportation and offer a one-stop-shop platform for all bus related needs for current and prospective. This event consisted of about 60 stalls which included Bus importers, Finance / Leasing Companies, Banks, Insurance Companies and other related service providers related to public transportation. Bus & Coach Exhibition 2010 was completed in July

19 07 Feasibility Study on BRT At present more than 60% of passenger trips within CMC are carrying out by public transport modes even though public transport modes are limited to 5% of vehicle composition in city limits. Inadequacy of supply to cater the demand exists, especially during the peak hours, induces higher degree of travel discomfort for the passengers. And also the on-road revenue conflict among operators spoils the manners of utilizing road space while producing traffic congestion, noise pollution and accidents. BRT system is proposed for filling the gap between supply and demand while mitigating certain road traffic problems engaged with public transport operations. Pre feasibility study has been completed and handed over to the Ministry of Transport. 08 Erect and maintenance of Stop Signs for Long distance Services The action plan of the Commission highlighted to erect long distance limited stop sign boards for easy identification of bus stops from Colombo to Kandy and Ambepussa to Habarana, during the year Although the locations were identified, the project had to be postponed due to unavailability of funds during the year However, 75 long distance bus stop sign posts were erected in 04 main corridors within the Western Province by the end of the year Reform of the Private Bus Industry Amendments to National Transport Commission Act The Amendments to the National Transport Commission Act No. 37 of 1991 is now in progress in order to include the following provisions for the reform of the bus sector. i. Expansion of the functions of the Commission by making policies and overall planning of transport to include all modes of road transport. ii. Appointment of the Director General and the delegation of powers of the commission. 15

20 iii. Convert present single bus operators in to professionally managed bus companies and granting of franchise and licenses to such companies for and efficient and effective system of bus operation. iv. Set standards and specifications in respect of any road vehicle/service for the transport of people and goods within Sri Lanka. v. Prepare timetables to minimize unhealthy competitive practice of operation of buses and to provide equal and equitable operating opportunities for all operators and to ensure provision of reliable and regular service during all times of the day. vi. Include new provisions regarding suspension, surcharges, cancellation of franchises and licenses and the Appeal Procedure with regard to the above and to include new provisions. vii. Include provisions regarding unauthorized persons influencing bus operations. viii. Formulation of Annual Fare Revisions by means of a Fare Index. ix. To amend the interpretation clause. Final draft of the amendments to the NTC Act was received from the Legal Draftsmen s Department. However that was not presented to the Parliament, since the NTC came under a new Ministry of Private Transport Services. 16

21 Annual Accounts 17

22 NATIONAL TRANSPORT COMMISSION STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2010 Rs Assets Non-Current Assets Property Plant & Equipment 268,408, ,924, Work in Progress (Office Complex) 126,970, ,916, ,378, ,841, Investments Gratuity Fund Deposit 15,754, ,754, ,987, ,987, ,133, ,828, Current Assets Inventories/Stocks 4,715, ,710, Income & Other Receivables 19,334, ,386, Payment in Advance 489, , Bank Deposits 147,696, ,696, Cash & Cash Equivalents 159, , Bank Accounts 1,576, ,971, , ,376, Total Assets 585,105, ,204, Liabilities Current Liabilities Payables 27,154, ,822, Accrued Expenditure 35,712, ,299, Provision for Differed Income 153,559, ,506, Concessionary Credit Scheme 17,632, ,728, Govt. Funds for Un- Economic Bus Route Subsidy - 234,059, ,062, ,420, Non Current Liabilities Provisions 17,317, ,317, ,208, ,208, Total Net Assets 333,728, ,575, Net Assets/Equity Accumulated Fund 250,869, ,901, Government Contribution for Projects- Capital 14,855, ,725, ,863, ,764, Surplus/(Deficit) for the Period 68,002, ,188, Total Net Assets 333,728, ,575, Accountant National Transport Commission Act. Director (Finance & Procurement) National Transport Commission Chairman National Transport Commission 5 18

23 NATIONAL TRANSPORT COMMISSION FINANCIAL PERFORMANCE FOR THE PERIOD ENDED 31ST DECEMBER 2010 Rs Revenue Government Funds for Recurrent Expenditure 34,200, ,465, Government Contribution for Projects 381,144, ,636, Ministry Contribution for Project 9,900, ,268, Income 137,780, ,458, Total Revenue 563,024, ,828, Operating Expenses Personnel Emoluments 63,711, ,879, Transportation 5,286, ,258, Special Project Expenses 391,044, ,905, Transport Development Activities 171, , Travelling & Subsistence 2,837, ,946, Establishment Expenses 8,530, ,420, Repairs & Maintenance of Fixed Assets 1,265, ,332, Staff Welfare 2,956, ,712, Staff Development 680, , Legal & Other Fees 949, , Information 705, ,225, Depreciation 15,695, ,141, Other Expenses 943, , Total Operating Expenses 494,777, ,736, Surplus/(Deficit) from Operating Activities 68,247, ,908, Financial Charges 244, , Non Operating Revenue Disposal of Assets - 1,086, Net Surplus/(Deficit) 68,002, ,188,

24 NATIONAL TRANSPORT COMMISSION CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2010 Rs Cash Flows from Operating Activities Rs.'000 Rs.'000 Surplus/(deficit) From Ordinary Activities 68,003-8,188 Non - Cash Movements Depreciation 15,695 15,142 Revenue for Differed Income ,825 Increase in Payables 6,695 33,961 Interest Received -4,566-4,364 Increase in Other Current Assets -1,044-3,285 Increase in Receivables 45,052-45,516 Income Tax Paid - - Previous Year Adjustment Government Grant for Recurrent Expenditure -34,200-31,465 Project Expenses -391, ,905 Working Progress -13,053-44,681 Net Cash Flow Operating Activities -309, ,007 Cash Flows from Investing Activities Purchase of Plant & Equipment -3,179-4,818 Interest Received 4,566 4,364 Net Cash Flows from Investing Activities 1, Cash Flows from Financing Activities Capital Grant 405, ,768 Recurrent Grant 34,200 31,465 Withdrawal from Cash - - Net Cash Flows from Financial Activities 440, ,233 Net Increase/(Decrease in Cash & Cash equivalents) 132,370-14,228 Cash & Cash equivalents at Beginning of the Period 32,815 47,043 Cash & Cash equivalents at End of the Period 165,185 32,815 20

25 1. Significant Accounting Policies 1.1 General Policies Basis of Preparation NATIONAL TRANSPORT COMMISSION ANNUAL ACCOUNTS FOR THE YEAR ENDED 31 ST DECEMBER 2010 ACCOUNTING POLICIES The Statement of Financial Position, Statement of Financial performance, Cash Flow Statement, Accounting Policies and Notes (Financial Statements) of National Transport Commission has been prepared in accordance with the standard issued by the Institute of Chartered Accountants of Sri Lanka. The said Financial Statements are presented in Sri Lanka Rupees (Rs.) Comparative Information The accounting policies have been consistently applied by the Institution and are consistent with those used in the previous year. Previous year s figures and phrases have been re-arranged where ever necessary to conform to the current year s presentation Events Occurring after the Balance Sheet Date. All material events occurring after the Balance Sheet date are considered and where necessary, adjustments or disclosures have been made in the respective notes to the Financial Statements. 1.2 Valuation of Assets Inventories Inventories are valued at cost Trade and Other Receivables Trade receivables are stated at the amounts they are estimated to realize Cash and Cash Equivalents Cash and cash equivalents are defined as cash in hand, demand deposits in banks called/fixed deposits at banks & gratuity fund Property, Plant and Equipment a) Cost and Valuation The Property, Plant & Equipment are recorded at cost less accumulated depreciation. 21

26 The cost of Property, Plant & Equipments is the cost of purchase or construction together with any expenses incurred in bringing the assets to its working condition for its intended use. Expenditure incurred for the purpose of acquiring, extending or improving assets of permanent nature by means of which to carry on the activities or to increase the earning capacity of the activities have been treated as capital expenditure. b) Depreciation The provision for depreciation is calculated by using Straight Line Basis on the cost or valuation of all Property, Plant and Equipment other than Freehold Land, in order to write off such amounts over their estimated useful lives by equal annual installments as follows. Motor Vehicle Furniture & Fittings Office Equipment Miscellaneous Equipment Computer & Printers Machinery Building Over 05 Years Over 10 Years Over 05 Years Over 05 Years Over 04 Years Over 05 Years Over 20 Years Investments Bus Shelters & Sign Boards Over 05 Years Depreciation has not been provided on Library Books. The cost of investment is the cost of acquisition. 1.3 Liabilities and Provisions Trade and Other Payables Route Permits & Penalties are stated at their values Retirement Benefit Costs a) Defined Benefit Plan Gratuity Full provision has been made on accounts of retiring gratuity from the first year of service of the employee in conformity with Sri Lanka Accounting Standard No.16 Retirement Benefit Costs at half (1/2) month s salary for each year of service. 22

27 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. The liability is externally funded at the Treasury Bills in National Savings Bank. This item is grouped under Non Current Liabilities in the Balance Sheet. b) Defined Contribution Plans Employees Provident Fund & Employees Trust Fund 1.4 Income Statement Turnover All employees who are eligible for Employees Provident Fund Contributions and Employees Trust Fund Contribution are covered by relevant contribution funds in line with respective Statutes and Regulations. Turnover represents the amounts derived from the provision of and services which fall within the National Transport Commission s ordinary activities Revenue & Expenses Revenue Recognition Revenue is recognized to the extent that it is probable that the economic will flow to the Institution Expenditure Recognition All expenditure incurred in the running of the Institute and in maintaining the Property, Plant & Equipment in a state of efficiency has been charged to revenue in arriving at the profit for the year. 2 CORPORATE INFORMATION 2.1 Domicile and Legal Form National Transport Commission is established under the Parliament Act No 37 of Principal Activities and Nature of Operations The functions of the Commission shall be advice to the Government on the National Policy relating to passenger transport services by omnibuses and grant passenger services permits for omnibus services in the specified area. 2.3 Employees Position. The employees position at the end of the year was, 1. Permanent cadre Contract basis 6 3. Consultants

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