NAVANA REAL ESTATE LIMITED - Dhaka Stock Exchange

Issuer: Navana Real Estate LimitedIssue Manager: ICB Capital Management Limitedthe assets to its working condition for its intended use. Expenditure incurred after theassets have been put into operation, such as repairs and maintenance is normallycharged off as revenue expenditure in the period in which it is incurred. In situationwhere it can be clearly demonstrated that the expenditure has resulted in an increase inthe future economic benefit expected to be obtained from the use of the fixed assets,the expenditure is capitalized as an additional cost of the assets.There is no intangible asset and the fixed assets do not include any assets held underlease.On retirement or otherwise disposal of fixed assets, the cost and accumulateddepreciation are eliminated and any gain or loss on such disposal is reflected in theincome statement which is determined with reference to the net book value of assetsand the net sales proceeds.2.10 Depreciation of property, plant & equipmentNo depreciation has been charged on the office space considering value appreciationtaken place in every year.Depreciation on all other fixed assets is computed using the reducing balance methodso as to write off the assets over their expected useful life.Full year’s depreciation has been charged on additions irrespective of the date when therelated assets are put into use and no depreciation is charged on retirement,irrespective of date of retirement.After considering the useful life of assets as per BAS-16, the annual depreciation rateshave been applied as under which is considered reasonable by the management.2.11 Investment propertyInvestment property, which is property held to earn rentals and/or for capitalappreciation (including property under construction for such purposes), is measuredinitially at its cost, including transaction costs. Subsequent to initial recognition,investment property is measured at fair value. Gains and losses arising from changes inthe fair value of investment property are included in profit or loss in the period in whichthey arise.2.12 InventoriesInventories represents stock of land, construction materials and construction work inprogress in the ordinary course of business within the company’s normal operatingcycles.a) Stock of land has been valued at cost. Cost includes the purchase consideration,government duties related to purchase, land filling, wages and other directexpenses related to development;b) Stocks of construction materials and construction works in progress have beenvalued at cost.2.13 Impairment of assetsAn asset is impaired if its recoverable amount is below the value currently shown on thestatement of financial position. Recoverable amount is taken as the higher of:a) fair value less cost to sell (net selling price), andb) value in useAt each statement of financial position, the company reviews all assets to look for anyindication that an asset may be impaired as per BAS 36. Based on such reviewmanagement considers that no indication of impairment for any assets existed on thestatement of financial position date.2.14 ProvisionsIn accordance with the guidelines as prescribed by BAS-37: Provisions, contingentliabilities and contingent assets, provisions are recognized in the following situations:Page- 34