Page 187 - flipbook-ubp-IR

OUR CORPORATE PERFORMANCE GOVERNANCE
13. CONSUMABLE BIOLOGICAL ASSETS
At July 01, 2020
Production 36,830 Sales (31,133) Fair value movement (3,224)
At June 30, 2021 16,813 Production 44,645 Sales (32,008) Fair value movement (6,318)
At June 30, 2022 23,132
THE GROUP
Vegetables
Rs’000
Standing cane
Plants
Rs’000
26,643
41,984 (40,357) 5,905
34,175
64,331 (42,403) (9,176)
46,927
Total
Rs’000
45,776
82,753 (78,134) 4,032
54,427 125,955 (83,005) (20,291)
77,086
14,340
Rs’000
4,793
3,939 (6,644) 1,351
3,439 16,979 (8,594) (4,797)
7,027
The consumable biological assets are measured at fair value determined in accordance with the level 3 of the fair value hierarchy.
(a) The main assumptions for estimating the fair values are as follows:
2022
59
9
Vegetables
Expected area to harvest (ha) Discount factor (%)
Standing cane
Expected area to harvest (ha) Estimated yields (%)
Estimated price of sugar - Rs ton)
Plants
Expected area to harvest (ha)
(per
2021 56 9
2021 65 10.15
19,162
8 1 year
Sensitivity of the input to value:
1% increase/(decrease) in cane yield per ha would result in increase/(decrease) in fair value by Rs 11,152 (2021: Rs 72,833)
5% increase/(decrease) in the price of sugar would result in increase/(decrease) in fair value by Rs 557,589 (2021: Rs 364,164)
1% increase/(decrease) in WACC would result in (decrease)/increase in fair value by Rs 734 (2021: Rs 18,342)
2022
80
10.30
22,350
8
1 year
Maximum maturity of plants at June, 30
(b) Description of significant inputs to valuation:
Standing cane
Valuation technique
Discounted cash flows
Significant unobservable inputs
Cane yield per hectare:
34.7 ton/ha (2021:34 ton/ha)
Price of sugar: Rs 22,350/ton: (2021: Rs 19,162/ton)
WACC: 8.51% (2021: 10.15%)
UBP INTEGRATED REPORT 2022 185
FINANCIAL STATEMENTS