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

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Notes to the Financial Statements Year Ended 31 st March 2011 2.3.19 Effect of Sri Lanka Accounting Standards issued but not yet effective: a) The following standards have been issued by the Institute of Chartered Accountants of Sri Lanka. - Sri Lanka Accounting Standard 44 Financial Instruments; Presentation (SLAS 44) - Sri Lanka Accounting Standard 45 Financial Instruments; Recognition and Measurement (SLAS 45) - Sri Lanka Accounting Standard 39 Share Based Payments (SLAS 39) The effective date of SLAS 44, 45 and 39 was changed during the year to be effective for financial periods beginning on or after 01 January 2012. These three standards have been amended and forms a part of the new set of financial reporting standards mentioned under note (b) below. b) Following the convergence of Sri Lanka Accounting Standards with the International Financial Reporting Standards, the Council of the Institute of Chartered Accountants of Sri Lanka has adopted a new set of financial reporting standards that would apply for financial periods beginning on or after 01 January 2012. The application of these financial reporting standards is substantially different to the prevailing standards. 3. LEASEHOLD PROPERTY Although leases of all JEDB/SLSPC estates handed over to the company have not been executed todate, leases have been executed for Fernlands,Harrow, New Peacook, Nayapana, North Meddakumbura, Sheen, Talgaswella, Igallkanda, Gallinda, Elpitiya, Katandola, Lelwela, Diviturai, Gulugahakanda and Habarakada Estates. Leases remains to be executed for Nagoda and Mapalagama estates. All of these leases will be retroactive on 22 June, 1992, the date of formation of the Company. The leasehold right to the land on all of these estates have been taken into the books of the Company on June 22, 1992 immediately after formation of the Company, in terms of the ruling obtained from the Urgent Issue Task Force (UITF) of the Institute of Chartered Accountants of Sri Lanka. For this purpose the Board decided at its meeting on 8 March 1995 that this bare land would be revalued at the value established for this land by valuation specialist, D.R. Wickramasinghe just prior to the formation of the company. The value taken into the 22 June 1992, Balance Sheet and the amortisation of the leasehold rights to 31 March 2011 are as follows. The above mentioned leasehold right to bare land comprising of land use rights obtained on a long term basis is re-classified as leasehold property and stated at the recorded carrying values as at the effective date of Sri Lanka Accounting Standard 19 Leases, in line with revised Ruling of the Urgent Issues Task Force of the Institute of Chartered Accountants of Sri Lanka. Such carrying amounts are amortized over the remaining lease term or useful life of the leased property whichever is shorter. The leasehold right to land is disclosed under non current assets under leasehold property. The revised UITF ruling does not permit further revaluation of Leasehold Property. The values taken into the 22 June 1992 balance sheet and amortization of the leasehold property up to 31 March 2011 are as follows. Accumulated accumulated Revaluation Balance Amortization Amortisation Amortization Written Down Written Down as at as at as at for the as at Value as at Value as at 22.06.92 Disposals 01.04.2010 01.04.2010 year 31.03.2011 31.03.2011 31.03.2010 Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Leasehold property 280,058,758 (938,279) 279,120,479 93,667,531 5,266,424 98,933,955 180,186,524 185,452,948 280,058,758 (938,279) 279,120,479 93,667,531 5,266,424 98,933,955 180,186,524 185,452,948 The leasehold rights to bare land are being amortised by equal amounts over 53 year period. 38 Elpitiya Plantations Plc Annual Report 2010/11
Notes to the Financial Statements Year Ended 31 st March 2011 4. IMMOVABLE ESTATE ASSETS ON FINANCE LEASE (OTHER THAN LEASEHOLD PROPERTY) As morefully explained in Note 3 all JEDB/SLSPC estates leases have been executed as at the Balance Sheet date, in terms of the ruling of the UITF of Institute of Chartered Accountants of Sri Lanka all immovable assets in these estates under finance leases have been taken into the books of the Company retroactive to 22 June 1992. For this purpose the Board decided at its meeting on March 8, 1995 that these assets would be taken at their book values as they appear in the books of the JEDB/SLSPC,on the day immediately preceding the date of formation of the Company. These assets are taken into the 22 June 1992 Balance Sheet and amortised as follows: Immature Improvement Other Vested Unimproved Mature Plant & Plantations to Land Assets lands Plantations Buildings Machinery Total Rs. Rs. Rs. Rs Rs. Rs. Rs. Rs. Revaluation as at 22.06.1992 283,368,199 4,214,618 4,028,217 1,564,267 95,362,391 73,002,143 47,785,047 509,324,882 Transferred to mature (283,368,199) - - - 283,368,199 - - - - 4,214,618 4,028,217 1,564,267 378,730,590 73,002,143 47,785,047 509,324,882 Acquired by Government 2002/2003 - - - - (1,389,400) (3,390,250) - (4,779,650) Balance as at 31.03.2011 - 4,214,618 4,028,217 1,564,267 377,341,190 69,611,893 47,785,047 504,545,232 Accumulated amortisation as at 01.04.2010 - 1,799,019 1,353,644 391,070 185,242,613 49,793,766 47,785,047 286,365,157 Amortisation during the year - 79,521 76,004 29,514 12,578,040 2,784,476 - 15,547,557 Accumulated amortisation as at 31.03.2011 - 1,878,540 1,429,648 420,584 197,820,653 52,578,242 47,785,047 301,912,714 Written down value as at 31.03.2011 - 2,336,078 2,598,569 1,143,683 179,520,537 17,033,651 - 202,632,518 Written down value as at 31.03.2010 - 2,415,599 2,674,573 1,173,197 192,098,577 19,818,127 - 218,180,073 These assets are being amortised in equal annual amounts over the following periods: Mature plantations Buildings Machinery Other vested assets/ Unimproved land 30 years 25 years 15 years 53 Years Investment in plantation assets which were immature at the time of handing over to the company by way of estate leases are shown under immature plantation (revalued as at 22nd June 1992). Further, investment in such immature plantation to bring them to maturity are shown under Note No 6. When these plantations become mature the additional investment to bring them to maturity will be moved from the category immature plantations to mature plantations under Note 6 and a corresponding move from immature plantations to mature plantations will be made in the above note. Elpitiya Plantations Plc Annual Report 2010/11 39
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 and 30: N note 2011 2010 Rs. Rs. CASH FLOWS
Page 31 and 32: Notes to the Financial Statements Y
Page 37 and 38: d) Leasehold Property Notes to the
Page 39: Notes to the Financial Statements Y
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

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