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INTRODUCTION ABOUT US MANAGEMENT APPROACH
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2022
7.
INVESTMENT PROPERTIES
COST
At July 01,
Reclassification from property, plant and equipment (note 5) Transfer to inventories (note 14)
Additions
At June 30,
ACCUMULATED DEPRECIATION
At July 01,
Reclassification from property, plant and equipment (note 5) Charge for the year
At June 30,
CARRYING AMOUNT
At June 30,
THE GROUP
2022
128,673
(13,000)
115,673
52,292
3,735
-
-
-
2021
Rs’000
122,050 6,143 - 480
128,673
44,981 4,300 3,011
THE COMPANY
2022
Rs’000
Rs’000
482,971
18,467
501,438
-
-
269,355
19,075
-
56,027
59,646
52,292
76,381
288,430
213,008
2021 Rs’000
464,979 - - 17,992 482,971
249,940 - 19,415 269,355
213,616
172
UBP INTEGRATED REPORT 2022
The investment properties were revalued on June 30, 2020 by an external independent valuer. The valuation was carried out at that date by Chasteau Doger De Spéville Ltd. Fair value is determined by reference to market based evidence; that is, the valuations are based on active market prices, adjusted for any differences in the nature, location or condition of a specific property. The fair value at June 30, 2022 was Rs 200m (2021: Rs 200m) for the Group and Rs 633m (2021: Rs 633m) for the Company. The rental income arising during the year amounted to Rs 12.3m (2021: Rs 12.9m) for the Group and for the Company Rs 45.3m (2021: Rs 44.9m). Direct operating expenses incurred on the investment properties for the Company during the year was Rs 0.1m (2021: Rs 0.1m) and nil (2020: Nil) for the Group. Investment properties valued using the sales comparison approach have been classified as level 2 amounting to Rs 60m (2021: Rs 60m) and those valued using the depreciated replacement cost have been classified as level 3 amounting to Rs 140m (2021: Rs 140m). The significant input for level 2 is the price per square metre and for level 3, it is the depreciation rate.
There has been no change in the valuation technique during the year. The Group and the Company have no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties.
The Directors have reviewed the carrying value of the investment properties and are of the opinion that as at June 30, 2022, the carrying value has not suffered any impairment. There were no material change in the fair value of the properties since 2020.