CLOSE FILE X 2014  $’000 2013  $’000 20 RESERVES AND RETAINED EARNINGS  (continued) General reserve: The general reserve is used for amounts that do not relate to other specified reserves. Balance at beginning of year 344 344 Balance at end of year 344 344 Total reserves 96,750 95,953 Retained earnings: Balance at the beginning of year 230,862 215,986 Net profit attributable to members of VRL 45,769 50,931 Total available for appropriation 276,631 266,917 Dividends and distributions provided or paid (86,127) (36,055) Balance at end of year 190,504 230,862 21 NON-CONTROLLING INTEREST Non-controlling interest in subsidiaries: Contributed equity 14,022 10,765 Retained earnings 843 153 14,865 10,918 22 CONTINGENCIES (a) Contingent liabilities Best estimate of amounts relating to: (i) Bank guarantees for commitments of subsidiaries 312 5,712 (ii) Joint and several obligations for operating lease commitments of partners in joint operations 1 39,708 64,237 (iii) Corporate guarantees for commitments of subsidiaries – 317 40,020 70,266 $^{1}$  Refer Note 22(b)(i) for corresponding amount reflecting the related contingent assets. As disclosed in Note 22(a)(vi) in the 30 June 2013 financial report, the VRL group anticipates that tax audits may occur from time to time in Australia, and  the VRL group is subject to routine tax audits in certain overseas jurisdictions. As disclosed in Note 22(a)(vii) in the 30 June 2013 financial report, Village Theatres 3 Limited (“VT3”), a wholly-owned subsidiary in the VRL group, is  continuing to take action against its landlord seeking damages. The landlord is also seeking payment of unpaid rent, which has been fully accrued in VT3’s  accounts as at 30 June 2014. As disclosed in Note 22(a)(viii) in the 30 June 2013 financial report, a former subsidiary of VRL, within the Sydney Attractions Group (“SAG”), had taken legal  proceedings to claim amounts owed by the vendor of a business sold to SAG. The vendor had lodged a counter-claim in those proceedings. Settlement was  reached in December 2013, resulting in a payment by VRL of approximately $4.6 million. This settlement amount, together with related legal expenses  incurred, has been expensed in the accounts to 30 June 2014 (refer Material Items of Income and Expense in the Reconciliation of Results, which forms  part of the Directors’ Report). In the year ended 30 June 2014, VRL has procured a bank guarantee to support the financing of an associated entity, VR iPic Finance LLC (“VRIF”), in which  the VRL group has a 42.86% (3/7th) interest. VRIF has obtained debt financing to contribute funds to iPic-Gold Class Entertainment LLC (“IGCE”), which is  also an associated entity of VRL. Another shareholder of IGCE is also providing guarantee support to VRIF. VRL’s guarantee exposure is expected to  increase to approximately USD 11.7 million by around June 2015. In the year ended 30 June 2014, VC Eye Pty. Ltd., a dormant wholly-owned subsidiary, was placed into creditors’ voluntary liquidation. As VC Eye Pty. Ltd.  has only nominal assets, no material impact on the VRL group is expected from this liquidation. In the year ended 30 June 2014, following the termination of a contract for construction of a new ride at Sea World by SX Projects Pty. Ltd. (“SX Projects”),  a writ has been filed by SX Projects seeking approximately $3 million from the VRL group. A Defence and Counter-Claim has been filed to the effect that  the VRL group’s termination was lawful. The matter is making its way through the court process. The VRL group has not provided any amount in relation  to this claim. In the year ended 30 June 2014, following the cancellation of a New Year’s Eve event at Wet’n’Wild Sydney, which was being organised and promoted by an  external party, One Cube Entertainment Pty. Ltd. (“OC”), legal proceedings have been commenced by OC, claiming approximately $1 million. The VRL group  has filed a defence and the matter is currently progressing through the court process. No trial date has been set and the VRL group has not provided any  amount in relation to this claim. 59 ANNUAL REPORT 2014 (iv) Other contingent liabilities – Income Tax: (v) Belfast Rent Dispute: (vi) Other contingent liabilities – Legal action relating to former subsidiary in Sydney Attractions Group: (vii) Guarantee issued in relation to Associate: (viii) Dormant subsidiary placed into liquidation: (ix) Legal action relating to ride constructed at Sea World, Gold Coast: (x) Legal action relating to cancelled New Year’s Eve event at Wet’n’Wild Sydney: