B) Non-derivate financial liabilities - Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date. 1.14 Impairment of assets (A) Financial assets The Trust assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired. A financial asset is considered impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups that share similar credit risk characteristics. Impairment loss in respect of loans and receivables measured at amortized cost are calculated as the difference between their carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate. Such impairment loss is recognized in the statement of operations. (B) Non-financial assets Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs. If such assets are considered to be impaired, the impairment to be recognized in the statement of operations is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. (C) Reversal of impairment loss An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.
1.15 Cash flow statement The Trust has prepared its cash flow statement under the direct method whereby major classes of gross receipts and gross payments are disclosed. The cash flows from operating, investing and financing activities of the Trust are segregated. Receipts towards corpus, endowment and designated funds are considered as financing activities. Receipts towards mid-day meal fund are considered as operating activities.
2. Notes to financial statements 2.1 Property, plant and equipment The following tables present the carrying value of property, plant and equipment as at March 31, 2011 and March 31, 2010 and the changes to the carrying value of property, plant and equipment during the years ended March 31, 2011 and March 31, 2010 Amount in ` ‘000
Class of asset
Gross carrying amount as at 1 April 2010
Gross carrying amount as at Additions Disposals 31 March 2011
Net Accumulated carrying depreciation Accumulated amount depreciation as at as at as at Depreciation 31 March 31 March 1 April 2010 for the year Disposals 2011 2011
1.16 Regrouping Corresponding figures have been regrouped to conform to the presentation of the current year. 1.17 New standards and interpretations not yet adopted A number of new standards, amendments to standards and interpretations are not yet effective for the year ended 31 March 20101, and have not been applied in preparing these financial statements: The Trust is in the process of evaluating the impact of adoption of the following standard on the Trust's financial statements:
Land
12,050
11,626
-
23,676
-
-
-
23,676
274,435
51,212
758
324,889
51,551
22,564
74,115
250,774
23,935
5,297
4,693
24,539
8,746
3,646
4,693
7,699
16,840
196,275
44,241
3,357
237,159
129,513
45,455
2,992
171,976
65,183
5,954
4,423
92
10,285
3,514
2,520
(72)
6,106
4,179
Computer equipment
11,120
6,689
15
17,794
4,793
4,349
15
9,127
8,667
Furniture and fixtures
14,811
6,132
40
20,903
9,457
4,349
28
13,778
7,125
151,861
47,631
153
199,339
98,821
34,377
134
133,064
66,275
79,543
14,619
-
94,162
62,283
17,106
79,389-
14,773
769,984 191,870
9,108
952,746
368,678
134,366
495,254
457,492
50,758 186,652
* 191,870
45,540
-
-
-
45,540
495,254
503,032
Buildings Lease-hold improvements Kitchen and related equipment Office equipment
Vehicles Distribution vessels
• In November 2009, the IASB issued IFRS 9, “Financial instruments”, to introduce certain new requirements for classifying and measuring financial assets. IFRS 9 divides all financial assets that are currently in the scope of IAS 39 into two classifications those measured at amortized cost and those measured at fair value. The standard along with proposed expansion of IFRS 9 for classifying and measuring financial liabilities, de-recognition of financial instruments, impairment, and hedge accounting will be applicable from the year beginning on or after January 1, 2013, although entities are permitted to adopt earlier. The Trust is evaluating the impact which this new standard will have on the Trust's financial statements.
Capital work-inprogress Total
Class of asset
820,742
378,522
Gross carrying amount as at 1 April 2009
Land Buildings Lease-hold improvements Kitchen and related equipment
200,978
998,286
368,678 134,366
7,790
7,790
Net Accumulated carrying depreciation amount Accumulated as at as at Gross carrying depreciation amount as at as at Depreciation 31 March 31 March Additions Dis posals 31 March 2010 1 April 2009 for the year Disposals 2010 2010
11,815
235
-
12,050
-
-
-
251,716
22,719
-
274,435
32,503
19,042
-
-
12,050
14,691
9,244
-
23,935
4,024
4,707
-
8,731
15,204
157,047
38,852
6
195,893
83,141
46,748
-
129,889
66,004
51,545 222,890
Office equipment
4,639
1,684
2
6,321
1,709
1,701
-
3,410
2,911
Computer equipment
4,844
6,317
40
11,121
2,875
1,924
6
4,793
6,328
Furniture and fixtures
13,149
1,677
1
14,825
5,774
3,683
-
9,457
5,368
110,513
41,848
500
151,861
71,021
28,198
500
98,719
53,142
59,945
19,598
-
79,543
47,973
14,161
-
62,134
17,409
628,359
142,174
549
769,984
249,020
120,164
506
26,239
166,693
* 142,174
50,759
-
-
-
654,598
308,867
142,723
820,742
249,020
120,164
506
Vehicles Distribution vessels Capital work-in-progress
Total
368,678 401,306 -
50,758
368,678 452,064
*: Represents amount capitalized. 74
75