2011 Annual Report - Cargills (Ceylon)

50 Annual Report 2011Notes to the financial statements contd...13 Intangible assets (Contd.).Amortisation of intangible assets of Rs. 5.1 Mn (2010 - 5.1 Mn) has been charged in cost of goods sold and Rs. 2.6 Mn (2010 - 2.3 Mn)in administrative expenses.14 Investments No. of Holding Market Group CompanyShares % Value 2011 2010 2011 2010Rs. ‘ 000 Rs. ‘ 000 Rs. ‘ 000 Rs. ‘ 000 Rs. ‘ 00014.1 Investments in subsidiariesUnquoted :Cargills Retail (Pvt) Ltd 47,500,002 100% - - 475,000 475,000Cargills Quality Foods Ltd 4,860,291 100% - - 1,193,453 1,193,453Millers Brewery Ltd 1,002 100% - - 100 -Dawson Office Complex (Pvt) Ltd 1 100% - - - -- - 1,668,553 1,668,45314.2 Investment in associatesUnquoted :C T Properties Limited 21,500,000 25% 161,282 216,075 216,075 216,075161,282 216,075 216,075 216,07514.3 Short term investmentsQuoted :Lanka IOC PLC 200,000 3,520 5,400 5,400 5,400 5,400Sierra Cables PLC 49,500 267 150 150 30 30Aitken Spence PLC 267,500 43,415 45,170 - 45,170 -47,202 50,720 5,550 50,600 5,430Provision for falling value (3,635) (1,791) (3,635) (1,758)47,202 47,085 3,759 46,965 3,672Unquoted :REPO Investments 28,502 - - -75,587 3,759 46,965 3,672(a) Cargills Quality Foods Limited, Cargills Retail (Private) Limited, Millers Brewery Limited and Dawson Office Complex (Private)Limited are subsidiaries of Cargills (Ceylon) PLC.(b) During the year, Cargills Quality Foods Limited a wholly owned subsidiary of Cargills (Ceylon) PLC, acquired 100% ownershipof Diana Biscuits Manufactures (Private) Limited with an investment of Rs. 342.89 Mn. The main business activity of the Companyis manufacture and distribution of biscuits.(c) During the year, the Company acquired majority shareholding of Kotmale Holdings PLC at a purchase consideration ofRs. 1,038 Mn. Initially, the shareholding increased to 73.4% and subsequently with the mandatory offer closing on 30 December2010, the shareholding was increased to 81.72%.As at 31 March 2011, Cargills (Ceylon) PLC transferred the ownership of Kotmale Holdings PLC to its wholly owned subsidiaryCargills Quality Foods Limited. This transaction was done outside the trading floor of Colombo Stock Exchange consequent to aspecial approval from the Securities and Exchange Commission of Sri Lanka. The sales consideration amounted to Rs. 1,038 Mnand was accounted as intercompany receivable.(d) During the year, the Company incorporated Millers Brewery Limited to set up a brewery venture, which would commencebusiness in the next financial year. The initial share capital issued amounted to Rs. 100,020/-.(e) Dawson Office Complex (Private) Limited incorporated with an initial share investment of Rs. 100 for the purpose of building anoffice complex to be utilised as head office of Cargills (Ceylon) PLC.