Financial Statements - Hemas Holdings, Ltd

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