Friday, January 4, 2013



We have not increased the members’ contribution since 2007. However our operation cost has been increased drastically throughout the following years.

2009/2010   6M
2010/2011 10M

In 2009/2010 only, the common elements and car park expenditure have increased by over 9 M and this is expected to increase still further in 2010/2011. The availability of sufficient funds will ensure timely maintenance and replacement of aging plant and equipment and this in turn will help to protect and enhance the value of property that members have invested in.

There has been incessant escalation in price of diesel, Electricity Tariff (3.2 M to 4.2 M in March 2011 due to the 25% increase in fuel adjustment charges), Janitorial, Security and the Maintenance and the costs have recorded appreciable increases. Increasing inflation and increases in cost of material of contractors, added further stain to our cash outflow.

Further, the following Expenditures increased drastically during the Year.

Electricity                              Rs 1,584,651
Promotional Expenses          Rs 4,255,218
Advertising                             Rs 1,427,066
Lift Maintenance                   Rs    358,899

As you are aware that we have completed the painting of the external walls from 3rd floor onwards. We have also planned re-tile the building (common areas) and to refurbish the ceiling whilst addressing the electrical concerns.  Furthermore two elevators on the southern side also needs to be re-placed along with the two escalators in the mall, operating the existing escalators is not financially feasible option as the maintenance cost has skyrocketed and also electricity consumption is high compared to the latest escalators which are currently available in the market.

In the light of the above we will be proposing to build a sinking fund of Rs. 25 Million over next five years commencing from January 2011.

Furthermore this would be applicable for the surcharge which is levied on member’s contribution when an Apartment is converted as office/commercial purpose.


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