Financial Statements - The United Basalt Products Ltd

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Financial Statements Year ended June 30, 2009 (cont’d...) 16. CASH AND CASH EQUIVALENTS (cont’d...) The acquisition of property, plant and equipment was financed as follows: The Group The Company 2009 2008 2009 2008 Non-cash transactions Rs’000 Rs’000 Rs’000 Rs’000 Total acquisition cost (Note 4) 229,193 181,863 114,732 94,503 Financed by cash (201,834) (151,943) (92,985) (67,619) Financed by finance leases 27,359 29,920 21,747 26,884 17. SHARE CAPITAL AND RESERVES The Group and The Company 2009 2008 2009 2008 (a) Share capital Number Number Rs’000 Rs’000 Authorised: Ordinary shares of Rs. 10. each 22,091,702 22,091,702 220,917 220,917 Issued and fully paid: Ordinary shares of Rs. 10. each 22,091,702 22,091,702 220,917 220,917 The Group The Company 2009 2008 2009 2008 (b) Reserves Rs’000 Rs’000 Rs’000 Rs’000 Share premium 7,354 7,354 7,354 7,354 Associate companies (note (i)) 68,090 68,090 - - Revaluation reserve (note (ii)) 568,746 568,746 446,969 446,969 Fair value reserve (note (iii)) 43,099 59,929 38,437 55,267 Translation reserve (note (iv)) 8,032 4,321 - - Retained earnings 803,214 711,224 794,323 686,588 1,498,535 1,419,664 1,287,083 1,196,178 (i) Associate companies represent reserves other than retained earnings arising on consolidation of associates. (ii) The revaluation reserve is used to record increases in the fair value of land and buildings and decreases to the extent that such decrease relates to an increase on the same asset previously recognised in equity. (iii) The fair value reserve records fair value changes on available-for-sale financial assets. (iv) The translation reserve is used to record exchange differences arising from the translation of the financial statements of overseas subsidiaries. Bank loans and overdrafts are secured by fixed and floating charges on the Group’s assets and bear interest between PLR +0.5% and PLR +1.5% per annum. Unsecured loans are repayable at call. The rates of interest at June 30, 2009 was 7.75% (2008:10.5%). Leasing finance carries interest at an annual rate between 8.5% and 13.25%. Leased liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default. 18. BORROWINGS The Group The Company 2009 2008 2009 2008 Non-current Rs’000 Rs’000 Rs’000 Rs’000 Bank loans 348,349 163,289 258,349 162,740 Obligations under finance lease 57,813 58,398 50,697 53,140 406,162 221,687 309,046 215,880 Current Bank overdrafts 210,520 292,798 185,507 279,711 Bank loans 87,000 148,692 77,000 147,000 Unsecured loans 243,684 230,475 243,684 230,475 Obligations under finance lease 24,950 27,302 21,773 24,990 566,154 699,267 527,964 682,176 Total borrowings 972,316 920,954 837,010 898,056 Bank loans are payable as follows: Within one year 87,000 148,692 77,000 147,000 After one year and before two years 81,250 22,549 51,250 22,000 After two years and before five years 227,250 66,000 167,250 66,000 After five years 39,849 74,740 39,849 74,740 435,349 311,981 335,349 309,740 Finance lease liabilities: Minimum lease payments: Within one year 32,683 35,320 28,587 32,300 After one year and before two years 27,705 25,940 24,659 23,213 After two years and before five years 39,459 42,141 34,199 38,633 After five years - 1,586 - 1,586 99,847 104,987 87,445 95,732 Future finance charges on finance leases (17,084) (19,287) (14,975) (17,602) Present value of finance lease liabilities 82,763 85,700 72,470 78,130 The present value of finance lease liabilities may be analysed as follows: Within one year 24,950 27,302 21,773 24,990 After one year and before two years 22,484 20,427 20,056 18,195 After two years and before five years 35,329 36,443 30,641 33,417 After five years - 1,528 - 1,528 82,763 85,700 72,470 78,130 64 THE UNITED BASALT PRODUCTS LTD | ANNUAL REPORT 2009 THE UNITED BASALT PRODUCTS LTD | ANNUAL REPORT 2009 65
Financial Statements Year ended June 30, 2009 (cont’d...) 19. RETIREMENT BENEFIT OBLIGATIONS The Group The Company (a) The amounts recognised in 2009 2008 2009 2008 the balance sheets are as follows : Rs’000 Rs’000 Rs’000 Rs’000 Present value of funded obligations 140,997 124,475 129,605 114,632 Fair value of plan assets (118,298) (108,543) (107,811) (99,429) 22,699 15,932 21,794 15,203 Present value of unfunded obligations 77,552 67,257 59,704 51,270 Unrecognised actuarial losses (16,566) (4,506) (15,669) (4,257) Liability in the balance sheets 83,685 78,683 65,829 62,216 (b) The amounts recognised in the income statements are as follows : Current service cost 8,425 6,653 6,278 5,311 Interest cost 19,714 17,306 17,113 14,948 Scheme expenses 312 286 248 252 Cost of incurring risk benefits 1,920 1,060 1,720 895 Expected return on plan assets (11,104) (9,917) (10,138) (9,119) Past service cost - - (171) - Actuarial losses/(gains) recognised 765 (135) 378 (59) Total included in staff costs 20,032 15,253 15,428 12,228 Actual return on plan assets 6,123 8,364 6,002 7,892 (c ) Movement in the liability recognised in the balance sheets : At July 1, 78,683 75,631 62,216 59,854 Total expenses as above 20,032 15,253 15,428 12,228 Contributions paid (15,030) (12,201) (11,815) (9,866) At June 30, 83,685 78,683 65,829 62,216 (d) Changes in present value of the defined benefit obligations: Opening defined benefit obligations 191,732 164,430 165,902 142,556 Current service cost 8,425 6,653 6,278 5,311 Interest cost 19,714 17,306 17,113 14,948 Employees’ contribution 25 25 - - Past service cost - - (171) - Actuarial losses 7,845 11,573 7,653 10,477 Benefits paid (9,192) (8,255) (7,466) (7,390) Closing defined benefit obligations 218,549 191,732 189,309 165,902 The Group The Company 2009 2008 2009 2008 (e) Changes in fair value of plan assets are as follows: Rs’000 Rs’000 Rs’000 Rs’000 Opening fair value of plan assets 108,543 97,846 99,429 90,278 Expected return 11,104 9,917 10,138 9,119 Contributions by employer 14,003 10,849 11,815 7,585 Scheme expenses (312) (286) (248) (252) Cost of insuring risk benefits (1,920) (1,060) (1,721) (894) Employees’ contribution 25 25 - - Actuarial gains (4,981) (1,555) (4,136) (1,298) Benefits paid (8,164) (7,193) (7,466) (5,109) Closing fair value of plan assets 118,298 108,543 107,811 99,429 (f) The Group expects to contribute Rs 10.1m to its defined benefit plans in the year ending June 30, 2010. The Company expects to contribute Rs 8.4m to its defined benefit plans in the year ending June 30, 2010. 2009 2008 2007 2006 (g) Obligations, assets and experience adjustments The Group Rs’000 Rs’000 Rs’000 Rs’000 Defined benefit obligations (218,549) (191,732) (164,720) (153,981) Fair value of plan assets 118,298 108,543 97,846 84,417 Deficit (99,794) (83,189) (66,874) (69,564) Experience adjustment on plan assets (4,981) (1,555) 720 (27) Experience adjustment on plan liabilities (7,845) (11,573) 5,359 2,287 The Company Defined benefit obligations (189,309) (165,902) (142,556) (133,455) Fair value of plan assets 107,811 99,429 90,278 78,232 Deficit (81,498) (66,473) (52,278) (55,223) Experience adjustment on plan assets (4,136) (1,298) 415 (126) Experience adjustment on plan liabilities (7,653) (10,477) 4,554 1,999 The Group The Company (h) The major categories of plan assets as a percentage 2009 2008 2009 2008 of the fair value of total plan assets are as follows: % % % % Local equities 38 38 38 38 Overseas equities 22 22 22 22 Fixed interest 35 35 35 35 Properties 5 5 5 5 Others - - - - 100 100 100 100 The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. The Group and The principal assumptions used were as follows : The Company 2009 2008 % % Discount rate 10.00 10.50 Rate of return on plan assets 10.50 10.50 Future salary increase 8.00 8.00 66 THE UNITED BASALT PRODUCTS LTD | ANNUAL REPORT 2009 THE UNITED BASALT PRODUCTS LTD | ANNUAL REPORT 2009 67
Page 1 and 2: Head Office: Trianon, Quatre-Bornes
Page 3 and 4: A shareholder of the Company entitl
Page 5 and 6: Thierry Lagesse - Chairman Mr Thier
Page 7 and 8: June 30, 2009 Employees 42% Provide
Page 9 and 10: Corporate Governance The United Bas
Page 11 and 12: Corporate Governance (cont’d...)
Page 13 and 14: Corporate Governance (cont’d...)
Page 15 and 16: Disclosures (Pursuant to Section 22
Page 17 and 18: June 30, 2009 I certify that, to th
Page 19 and 20: The Notes on pages 38 to 73 form an
Page 21 and 22: Financial Statements Year ended Jun
Page 31 and 32: 58 The Directors’ valuation of th
Page 33: Consumable biological assets are st
Page 39: 1. A member of the Company entitled

Financial Statements - The United Basalt Products Ltd

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