Notes to the Financial Statements Contd.... - Colombo Stock Exchange

Year Ended 31st March 2009
3. LEASEHOLD PROPERTY
Of the 21 JEDB estates handed over to the Company, leases in respect of Ambanpitiya estate have not been executed as at the Balance Sheet date. All of these leases
will be retroactive to June 22, 1992 the date of formation of the Company. The leasehold right to bare land on all of these estates has been taken into the books of the
Company to June 22, 1992 immediately after the formation of the Company in terms of the ruling obtained from the Urgent Issue Task Force (UITF) of the Institute of
Chartered Accountants of Sri Lanka. For this purpose the Board decided at the meeting on March 8, 1995 that this bare land would be revalued at the value established
for the land by Valuation Specialist, Mr. D.R. Wickremasinghe, just prior to the formation of the Company. The value taken into the June 22, 1992 Balance Sheet and
the amorisation of the leasehold rights to 31st March 2009 are as follows.
The above mentioned leasehold right to bare land comprising of land use rights obtained on a long term basis is re-classified as leasehold property and stated at the
recorded carrying values as at the effective date of Sri Lanka Accounting Standard 19 Leases, in line with revised Ruling of the Urgent Issues Task Force of the Institute
of Chartered Accountants of Sri Lanka. Such carrying amounts are amortized over the remaining lease term or useful life of the leased property whichever is shorter.
The leasehold right to land is disclosed under non current assets under leasehold property. The revised UITF ruling does not permit further revaluation of Leasehold
Property. The values taken into the 22nd June 1992 balance sheet and amortization of the leasehold property up to 31st March 2009 are as follows.
Accumulated Accumulated
Revaluation Balance Amortization Amortization Amortization W.D.V W.D.V
as at as at as at during the as at As At As At
22.06.92 01.04.08 01.04.08 year 31.03.09 31.03.09 31.03.08
Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Notes to the Financial Statements Contd....
K E G A L L E P L A N T A T I O N S P L C 2 0 0 9
Leasehold Property 260,142,080 260,142,080 77,381,287 4,908,231 82,289,518 177,852,562 182,760,793
260,142,080 260,142,080 77,381,287 4,908,231 82,289,518 177,852,562 182,760,793
47
The unexpired period of the lease as at the Balance Sheet date is 36 years.
4. IMMOVABLE JEDB ESTATE ASSETS ON FINANCE LEASE (OTHER THAN LEASEHOLD PROPERTY )
As explained in Note 3, although all JEDB estate leases have not been executed as at the Balance Sheet date, in terms of the ruling of the UITF of the Institute of
Chartered Accountants of Sri Lanka, all immovable assets in these estates under finance leases have been taken into books of the Company retroactive to June 22, 1992.
For this purpose the Board decided at its meeting on March 8, 1995 that these assets would be revalued at their book values as they appear in the books of the JEDB as
the case may be on the day immediately preceding the date of formation of the Company. These assets are taken into the 22nd June 1992 Balance Sheet and amortised
as follows :
Accumulated Accumulated Accumulated
Revaluation Transfers Disposal Value Amortisation Amortisation Amortization W.D.V W.D.V
As At as at during the as at as at during the as at As At As At
22.06.92 01.04.03 year 99/00 01.04.08 01.04.08 year 31.03.09 31.03.09 31.03.08
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs
Improvements to Land 191,597 - - 191,597 100,752 6,381 107,133 84,464 90,845
Mature Plantations 75,164,810 188,149,522 (633,915) 262,680,417 114,565,571 8,791,850 123,357,421 139,322,996 148,114,846
Immature Plantations 188,149,522 (188,149,522) - - - - - - -
Buildings 53,935,172 - - 53,935,172 34,031,123 2,167,333 36,198,456 17,736,716 19,904,049
Machinery 24,288,713 - - 24,288,713 24,288,709 2 24,288,711 2 4
341,729,814 - (633,915) 341,095,899 172,986,155 10,965,566 183,951,721 157,144,178 168,109,744
Note : Investment in plantation assets which were immature at the time of handing over to the Company by way of estate leases are shown under immature plantation (revalued as at 22nd
June 1992) all of which have been transferred to mature plantations as at the Balance Sheet date.