EAPCC_Annual_Report_.. - Investing In Africa
EAPCC_Annual_Report_.. - Investing In Africa
EAPCC_Annual_Report_.. - Investing In Africa
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2010/2011<br />
EAST AFRICAN PORTLAND CEMENT COMPANY LIMITED<br />
ANNUAL REPORT AND FINANCIAL STATEMENTS<br />
NOTES TO THE FINANCIAL STATEMENTS (continued)<br />
FOR THE YEAR ENDED 30 JUNE 2011<br />
6. INTANGIBLE ASSETS 2011 2010<br />
KShs’000<br />
KShs’000<br />
COST<br />
At the beginning of the year 49,762 49,762<br />
Additions 1,849 -<br />
51,611 49,762<br />
AMORTISATION<br />
At the beginning of the year 48,718 46,940<br />
Charge for the year 1,660 1,778<br />
50,378 48,718<br />
NET BOOK VALUE<br />
At 30 June 1,233 1,044<br />
<strong>In</strong>tangible assets relate to computer software in use by the company.<br />
7. PREPAID OPERATING LEASES<br />
2011 2010<br />
KShs’000<br />
KShs’000<br />
COST<br />
At the beginning year 12,886 12,886<br />
AMORTISATION AND IMPAIRMENT<br />
At the beginning of the year 1,142 3,267<br />
Amortization charge 63 210<br />
Provision for impairment written back - (2,335)<br />
At the end of the year 1,205 1,142<br />
NET BOOK VALUE<br />
At 30 June 11,681 11,744<br />
<strong>In</strong>cluded in prepaid operating leases is a parcel of land acquired at a cost of KShs 408,330 for which the company’s<br />
ownership is the subject of a dispute in court. A provision for impairment for the parcel of land, with a carrying<br />
amount of KShs 373,498, was made in the books of account in 2009, this provision was reversed in 2010 and no<br />
further provisions have been made in the current year.<br />
8. INVESTMENT PROPERTIES<br />
<strong>In</strong>vestment properties relate to two pieces of leasehold land held by the company, under long-term lease arrangements.<br />
The land was valued at KShs 1.495 billion by Crystal Valuers Limited, accredited independent valuers, as<br />
at 30 June 2009. The present value of the ground rent obligations is immaterial and thus, the valuation amount of<br />
KShs 1.495 billion is equivalent to the fair values of these properties.<br />
58<br />
EAST AFRICAN PORTLAND CEMENT COMPANY LIMITED<br />
ANNUAL REPORT AND FINANCIAL STATEMENTS 2010/2011