Elpitiya Plantations Plc Annual Report 2010/11 - Colombo Stock ...

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1. CORPORATE INFORMATION Notes to the Financial Statements Year Ended 31 st March 2011 Domicile and Legal Form Elpitiya plantations PLC is a limited liability Company incorporated and domiciled in Sri Lanka, under the Companies Act No. 17 of 1982 (The Company re-registered under the Companies Act No. 07 of 2007) in terms of the provisions of the conversion of public Corporations or Government Owned Business undertakings into public Companies Act No. 23 of 1987. The registered office of the Company is located at No. 315, Vauxhall Street, Colombo – 02, and Plantations are situated in the planting districts of Nuwera Eliya and Galle. 1.2 Principal Activities and Nature of Operations During the year, the principal activities of the Company were cultivation, manufacture and sale of black Tea, Rubber, Oil Palm and other crops. 1.3 Parent Enterprise The Company’s parent undertaking is Aitken Spence Plantation Managements Limited. 1.4 Date of Authorisation for Issue The Financial Statements of Elpitiya Plantations PLC for the year ended 31 March 2011 were authorised for issue in accordance with a resolution of the Board of Directors on 24 May 2011. 2.1 BASIS OF PREPARATION These financial statements presented in Sri Lanka Rupees have been prepared on a historical cost basis except for certain Property, Plant and Equipment which are stated at revalued amounts. The Financial Statements are prepared in Sri Lankan rupees and all values are rounded to the nearest rupee. 2.1.1 Statement of compliance The Financial Statements of Elpitiya Plantations PLC have been prepared in accordance with the Sri Lanka Accounting Standards (SLAS) adopted by the Institute of Chartered Accountants of Sri Lanka (ICASL) and also in compliance with the requirements of the Companies Act No 07 of 2007. 2.1.2 Going Concern The Directors have made an assessment of the Company’s ability to continue as a going concern and they do not intend either to liquidate or to cease trading. 2.1.3 Comparative Information The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year unless otherwise stated. 2.2 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS Judgments In the purpose of applying the company’s accounting policies , management has made the following judgments , apart from those involving estimations , which has the most significant effect on the amounts recognized in the financial statements. 28 Elpitiya Plantations Plc Annual Report 2010/11
Notes to the Financial Statements Year Ended 31 st March 2011 Inventory valuation – Produce stock Company has valued part of unsold produce stock at since realized prices. The balance unsold stock remained as at the balance sheet date valued at an estimated selling prices based on most recent selling prices available subsequent to the year end. Estimates and Assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustments to the carrying amounts of assets and liabilities within the next financial year are discussed below. Impairment of Goodwill The company determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the “value in use” of the cash generating units to which the goodwill is allocated .Estimating a value in use amount requires management to make an estimate of the expected future cash flows from the cash generating unit and also to choose a suitable discount rate in order to calculate present value of those cash flows. However, at present company does not have any recorded Goodwill balance as at the balance sheet date. Deferred Tax Assets Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning strategies. The carrying value of the unrecognised deferred tax assets at 31 March 2011 was Rs.188,650,437/- (2010. Rs. 471,116,273/-). Defined Benefit Plans The cost of defined benefit pension plan is determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, expected rates of return on assets, future salary increases, mortality rates and future pension increases. Due to the long term nature of these plans, such estimates are subject to significant uncertainty. The net employee liability at 31 March 2011 is Rs. 464,154,667/- (2010 Rs. 448,410,122/-). Further details are given in Note 13. 2.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2.3.1 Foreign Currency Translation The financial statements are presented in Sri Lankan rupees, which is the Company’s functional and presentation currency. Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the balance sheet date. All differences are taken to profit or loss with the exception of differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity. These are taken directly to equity until the disposal of the net investment, at which time they are recognised in profit or loss. Tax charges and credits attributable to exchange differences on those borrowings are also dealt with in equity. Non monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign operation and translated at the closing rate. Elpitiya Plantations Plc Annual Report 2010/11 29
Page 1 and 2: Elpitiya Plantations Plc Annual Rep
Page 3 and 4: Contents Financial Highlights 02 Ch
Page 5 and 6: Chairman’s Statement It gives me
Page 7 and 8: Managing Director’s Review The fi
Page 9 and 10: Board of Directors Mr. J M S Brito
Page 11 and 12: Annual Report of the Board of Direc
Page 13 and 14: Audit Committee Report Composition
Page 15 and 16: Corporate Governance (contd.) • E
Page 17 and 18: Corporate Governance (contd.) 2. Au
Page 19 and 20: CORPORATE SUSTAINABILITY REPORT (co
Page 21 and 22: CORPORATE SUSTAINABILITY REPORT (co
Page 23 and 24: Management Team Head Office Left to
Page 25 and 26: Auditors’ Report Chartered Accoun
Page 27 and 28: Income Statement Year Ended 31 st M
Page 29: N note 2011 2010 Rs. Rs. CASH FLOWS
Page 33 and 34: Notes to the Financial Statements Y
Page 37 and 38: d) Leasehold Property Notes to the
Page 45 and 46: 12. INTEREST BEARING LOANS AND BORR
Page 47 and 48: 13. RETIRING BENEFIT OBLIGATIONS 20
Page 53 and 54: 25. CAPITAL COMMITMENTS 2011 2010 F
Page 55 and 56: Value Added Statement Figures in Rs
Page 57 and 58: Ten Year Summary Year ended 31 st M
Page 59 and 60: Shareholder & Investor Information
Page 61 and 62: Financial Calendar 2010/2011 August
Page 63 and 64: Notice of Meeting NOTICE is hereby
Page 65 and 66: Form of Proxy I/We ……………
Page 67 and 68: Elpitiya Plantations Plc Annual Rep

Elpitiya Plantations Plc Annual Report 2010/11 - Colombo Stock ...

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