Annual report for 2004/05 - Hemas Holdings, Ltd

Notes to the Financial StatementsYear ended 31 March 200510.1.1 The Land and Buildings of Hemas Holdings Ltd, Hemas Manufacturing (Pte) Ltd., and Hemas Development (Pte) Ltd., were revaluedduring the financial years 1999/2000 & 2004/2005 by Mr. D.S.A. Senaratne (A.I.V.) an independent valuer. The results of suchrevaluation was incorporated in these financial statements from its effective date which is 31 March 2000 & 31 March 2005. Such assetswere valued on an open market value for existing use basis. The surplus arising from the revaluation was transferred to a RevaluationReserve.10.1.2 Leasehold Property and Furniture and Equipment of Hotel Sigiriya Ltd., were revalued during the financial years in 1991, 1994 and2004/2005 respectively, by Mr. D.S.A.Senaratne, an Associate of the Institute of Valuers of Sri Lanka. The surplus arising on revaluationwas credited to the Revaluation Reserve.10.1.3 The Land and Buildings of Serendib Hotels Ltd., Stafford Hotels Ltd. & Miami Beach Hotels Ltd., were last revalued during the financialyears 1995/96 and 2004/2005 by Mr. D.S.A. Senaratne, an Associate of the Institute of Valuers of Sri Lanka. The properties were valuedon an open market value for existing use basis. The surplus arising from the revaluation was transferred to a Revaluation Reserve.CumulativeDepreciation Net Carrying Net CarryingIf assets were Amount AmountClass of Asset Cost Carried at cost 2005 2004Rs. Rs. Rs. Rs.Buildings on Freehold Land 325,719,367 25,749,588 299,969,779 122,220,823Buildings on Leasehold Land 76,835,407 5,593,575 71,241,832 14,009,941Leasehold Property 31,962,385 13,667,912 18,294,473 18,773,90910.1.4 During the financial year, the Group acquired Property, Plant & Equipment to the aggregate value of Rs.3,900,877,825/-(2004 - Rs.569,674,674/-) of which Rs. 1,053,800/- (2004: Rs. 5,001,561 /-) was acquired by means of finance leases. Cash payments amountingto Rs. 1,138,619,201/- (2004: Rs. 2,691,942,246/-) was paid during the year for purchases of Property, Plant & Equipment.10.1.5 During the year Heladhanavi Ltd., a Jointly Controlled Entity has capitalised Rs. 75,708,265/- (2004 - Rs. 72,050,692/-) of borrowingcost under Plant and Machinery.A N N U A L R E P O R T 2 0 0 4 - 2 0 0 5 51