Annual Report 2012 - Dialog

Annual Report 2012 l Dialog Axiata PLC l 91
(c) The market value and the historical cost of land and buildings as at 31 December 2012 of the Company and the
Group was as follows:
Group Company
2012 2011 2012 2011
Market value 917,482 877,157 650,274 674,590
Cost 826,372 803,059 621,403 620,797
The market value was determined by means of a valuation by Mr P.M.B Edmund, an independent valuer, in reference to
market based evidence.
(d) Assets in the course of construction as at 31 December 2012 and 2011 mainly comprise network related assets.
(e) Property, plant and equipment include motor vehicles acquired under finance leases, the net book value of which is
made up as follows:
Group Company
2012 2011 1 Jan 2011 2012 2011 1 Jan 2011
Cost - capitalised finance leases 36,529 128,920 190,567 Nil 108,334 109,491
Accumulated depreciation (36,529) (128,920) (171,426) Nil (108,334) (106,254)
Net book value Nil Nil 19,141 Nil Nil 3,237
The Group leases vehicles under non cancellable finance lease agreements with repayment terms of four to five years.
(f) Depreciation expense has been charged under following expense categories:
Group Company
2012 2011 2012 2011
Expenses categories:
Direct costs 8,846,012 8,004,890 7,431,682 7,159,962
Administrative costs 1,252,005 1,618,226 327,092 447,335
10,098,017 9,623,116 7,758,774 7,607,297
(g) Impairment provisions/(reversals) have been charged under following expenses categories:
Group Company
2012 2011 2012 2011
Direct costs 29,402 6,393 Nil Nil
Administrative costs 755,977 73,507 712,334 (5,035)
785,379 79,900 712,334 (5,035)
(h) At 31 December 2012, property, plant and equipment includes fully depreciated assets which are still in use, the
cost of which amounted to Rs. 9,915,002,899 (2011 - Rs. 8,504,570,460) and Rs. 26,207,302,887
(2011 - Rs. 11,664,971,726), for the Company and the Group respectively.
(i) No borrowing costs were capitalised during the years 2012 and 2011.
(j) None of the land and buildings are secured against bank borrowings.