Financial Statements - Hemas Holdings, Ltd

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Hemas Holdings PLC - Annual Report 2007 - 2008Notes to the Financial Statements11. PROPERTY, PLANT AND EQUIPMENT (Contd….)11.1.1 The Land and Buildings of Hemas Manufacturing (Private) Ltd., Stafford Hotels PLC and Miami Beach Hotels Ltd were last revalued duringthe financial year 2004/2005 by Mr. D.S.A. Senaratne (A.I.V.) an independent valuer. The results of such revaluation was incorporated inthese financial statements from its effective date which is 31 March 2005. Such assets were valued on an open market value for existing usebasis. The surplus arising from the revaluation was transferred to a Revaluation Reserve.11.1.2 The Land and Buildings of Peace Haven Resort Ltd., was last revalued at the beginning of the financial year 2006/2007 by Mr. ArthurPerera(A.I.V.) an independent valuer. The results of such revaluation was incorporated in these financial statements from its effective datewhich is 01 April 2006. Such assets were valued on an open market value for existing use basis. The surplus arising from the revaluationwas transferred to a Revaluation Reserve. The next revaluation will be carried out in accordance with the group policy.11.1.3 During the financial year, the Group acquired Property, Plant and Equipment to the aggregate value of Rs. 1,068,607,918/- (2007 -Rs. 377,774,841/-) of which Rs.Nil (2007 - Rs.12,359,037/-) was acquired by means of finance leases. Cash payments amounting to Rs.1,068,607,918/- (2007 - Rs. 365,415,804/-) was paid during the year for purchases of Property, Plant and Equipment.11.1.4 Hemas Manufacturing (Private) Ltd.Pursuant to the agreement with BOI, the Company has obtained the BOI status under 300 Enterprises Programme. Accordingly, the entirefactory has been transferred to Dankotuwa. In addition, the Company has incurred an expense of Rs. 623,546,114/- towards the aboveproject.Balance Additions/ Disposal/ Balance11.2 Company As At Transfers/ Transfers As at01.04.2007 Acquisitions 31.03.2008At Cost Rs. Rs. Rs. Rs.Roadways 6,975,688 - - 6,975,688Furniture and Fittings 8,565,442 3,840,530 (1,127,460) 11,278,512Office Equipment 9,997,544 1,619,159 (189,150) 11,427,553Computer Hardware and Software 67,699,267 1,465,750 (581,565) 68,583,452Motor Vehicles 13,123,015 - - 13,123,015Total Value of Assets 106,360,956 6,925,439 (1,898,175) 111,388,220Depreciation Balance Charge Disposals/ BalanceAs at For the Transfers As atAt Cost 01.04.2007 Year 31.03.2008Rs. Rs. Rs. Rs.Furniture and Fittings 2,161,099 1,137,895 (496,664) 2,802,330Office Equipment 5,823,346 1,101,500 (27,631) 6,897,215Computer Hardware and Software 28,477,102 21,897,598 (481,560) 49,893,140Motor Vehicles 2,045,101 3,280,754 - 5,325,855Total Depreciation 38,506,648 27,417,747 (1,005,855) 64,918,5402008 2007Net Book Values Rs. Rs.At Cost 46,469,680 67,854,30811.2.1 During the financial year, the Company acquired Property, Plant and Equipment to the aggregate value of Rs. 6,925,439/- (2007 -Rs. 26,406,452/-) of which Rs. 6,925,439/- (2007 - Rs. 26,406,452/-) was acquired by means of cash.74
Hemas Holdings PLC - Annual Report 2007 - 2008Notes to the Financial StatementsGroupCompany2008 2007 2008 2007Rs. Rs. Rs. Rs.12. INVESTMENT PROPERTYInvestment Properties at Fair Value at the Beginning of the Year 963,709,950 570,152,108 258,709,950 207,744,975Reclassified from Property, Plant and Equipment - 127,440,868 - -Change in Fair Value of Investment Properties onadoption of SLAS 40 - Investment Property - 102,731,883 - -963,709,950 800,324,859 258,709,950 207,744,975Additions during the Year - - - 385,493Change in Fair Value of Investment Properties during the Year 215,000,000 163,385,091 13,000,000 50,579,482Investment Properties at Fair Value at the End of the Year 1,178,709,950 963,709,950 271,709,950 258,709,950The fair value of the Investment Properties of Hemas Holdings PLC and Hemas Developments (Private) Ltd., as at 31 March 2008 wereassessed by a revaluation carried out by Mr. D.S.A. Senaratne (A.I.V.) an independent valuer on an open market value for existing use basis,the resulting surplus in fair value is included in the Income Statement.Group13. INTANGIBLE ASSETS 2008 2007Rs.Rs.13.1 Non CurrentGoodwill 41,099,987 20,664,878Brands 132,521,739 129,000,000Project Development Expenses - 5,898,074173,621,726 155,562,95213.1.1 GoodwillBalance at the Beginning of the Year 20,664,878 14,327,963Acquired during the Year 20,435,109 10,253,871Impairment/Amortisation during the Year - (3,916,956)Balance at the End of the Year 41,099,987 20,664,87813.1.2 BrandsBalance at the Beginning of the Year 129,000,000 74,000,000Acquired during the Year 3,521,739 55,000,000Balance at the End of the Year 132,521,739 129,000,00013.1.3 Project Development ExpensesBalance at the beginning of the year 5,898,074 18,939,865Acquired during the Year - 5,898,074Impairment/Written Off during the Year (5,898,074) (18,939,865)Balance at the End of the Year - 5,898,074Hemas Group and its Subsidiaries annually carry out an impairment test on all its intangible assets. Impairment tests are carried out asfollows:Goodwill - The business acquisition to which the goodwill is attributable is valued based on the earnings growthmethod. Assumptions applied in such computations are reviewed each year.Brands - Brands are valued based on the earnings growth method, and assumptions applied are reviewed eachyear.Project Development Expenses - These include all expenditure attributable to the intangible asset during its development stage. Thetechnical feasibility of completing the project and the business case for future economic benefits arereassessed each year. During the year the asset is impaired and written off to Income Statement.75
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Financial Statements - Hemas Holdings, Ltd

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