Financial Statements - Hemas Holdings, Ltd

DRIVING PERFORMANCE ● ENRICHING LIVES085 Hemas Holdings PLC Annual Report 2012/132.4 FIRST-TIME ADOPTION OFSLFRSGroup reconciliation of equity as at 1 April2011 ( Date of transition to SLFRS ) and31 March 2012 and Total Comprehensiveincome for the year ended 31 March 2012A. Property, Plant and EquipmentTransfer from PPE to intangible assetsComputer software that are not integral tooperate the hardware were reclassified asa separate intangible asset at the date oftransition to SLFRS. Therefore Rs. 15Mnwas transferred to Intangible assets as at1 April 2011 and depreciation of Rs. 6Mnhas been reclassified as an amortization inthe income statement for the year ended31 March 2012.Fair value as deemed costThe Group has elected to measure certainitems of fully depreciated property, plantand equipment at fair value at the date oftransition to SLFRS.As a result Rs. 4.6Mn was recognised inproperty, plant and equipment s at 1 April2011 through retained earnings.B. Leasehold RightUnder the previous standards, refundabledeposits placed for lease right werecarried at cost and shown as long termreceivables. This is a financial assetand therefore at initial recognition wasmeasured at fair value and difference ofRs. 43.2Mn was recognised as a leaseright. Cumulative amortisation as at 1April 2011 amounting to Rs. 3.6Mn wasrecognised in retained earnings. Forthe year ended 31 March 2012, Rs.0.9Mn was recognised as the lease rightamortisation in the income statement.C. Investment in AssociatesInvestment in Jada Resorts and Spa(Pvt) Ltd, amounting Rs. 320Mn wasde-recognised from other non currentinvestment and recognised Rs. 168Mn asan investment in associate by recognisingGoodwill arising on acquisition, Rs 152Mnas an intangible asset as at 1 April 2011.During the year ended 31 March 2012, Rs.12Mn was recognised as a share profit ofthe associate.D. Other Non Current Financial AssetsAvailable for sale investmentsAs at 1 April 2011, Investment in quotedequity shares classified as available forsale investments amounting to Rs.114Mnwere measured at fair value. The net gainof 29Mn as at 1 April 2011 and Rs. 8.7Mn,net loss for the year ended 31 March2012, were recognised as an available forsale reserve in equity respectively.Refundable depositRefundable deposits amounting to Rs.5Mn shown under Trade and otherreceivables were recognised as a financialasset and Rs. 2Mn was recognised asa net amount of fair value difference inretained earnings.ESOS ValuationESOS receivables is a financial assetand therefore a net amount of fair valuedifference at initial recognition andunwinding finance income of Rs.80Mnwere recognised in retained earnings. Adifference of Rs. 41Mn was recognisedwith respect to the amounts grantedduring the year ended 31 March 2012.Unwinding interest of Rs. 21Mn arisingfrom the receivable as at 1 April 2011, wasrecognised as a finance income for theyear ended 31 March 2012.E. Deferred Tax AssetsGroup entities enjoying tax holiday periodreassessed the deferred tax impact as at1 April 2011 and recognised Rs. 9.5Mnin retained earnings and for the yearended 31 March 2012, Rs. 10.5Mn wasrecognised in the income statement.F. Trade and Other ReceivablesImpairment Trade and Other ReceivablesProvision for bad and doubtful debts madeunder previous standards consisted ofboth a specific amount for incurred lossesand a general amount for expected futurelosses. SLFRS does not permit recognitionof impairment for expected future losses.Hence an amount of Rs. 57Mn adjustedas at 1 April 2011 through retainedearnings.by using the collective impairment model.Accordingly the group recognised aprovision of Rs. 111Mn through retainedearnings as at 1 April 2011 and a provisionof 19Mn has been made for the yearended 31 March 2011.G. Other Current Financial AssetsStaff loans given at concessionary ratesof interestUnder previous standards staff loans wererecorded in Trade & Other receivablesand initially recognised at cost. UnderSLFRS, the Group measured the staffloans granted below the market rate/atzero rate ,at their fair value based on themarket rate of interest for similar loans. Rs.8Mn the difference between the fair valueof and loan granted has been recognisedas pre-paid staff cost and amortised overthe term of the loan as at 01 April 2011.Adjustment for recognition of Interestincome at the rate prevailing at the grantdate of Rs. 2Mn recognised in the retainedearnings as at 1 April 2011 and for theyear ended 31 March 2012,Rs. 2Mnwas recognised as finance income in theincome statement.Short term InvestmentsGovernment securities with a maturityof more than 3 months amounting Rs.49Mn has been reclassified from shortterm investment. Rs.7.5Mn has beenrecognised through retain earnings tomeasure the amortised cost of REPOinvestment as at 1 April 2011. During theyear ended 31 March 2012 Rs. 7.5Mn hasbeen recognised as finance income in theincome statement.Deposits with maturity of more than 3months amounting to Rs. 619Mn werereclassified from short term Investmentsas at 1 April 2011 and Rs. 256Mn wasreclassified as at 31 March 2012.