Page 217 - UBP - IR2020

FINANCIAL STATEMENTS
Notes to the financial statements
For the year ended June 30 2020
Vegetables Rs’000 6 112 Production 32 963 Sales (23 456) Fair value movement 525 At June 30 2019 16 144 Production 29 831 Sales (20 836) Fair value movement (10 799) At June 30 2020
14 340
Standing cane Rs’000 4 997 15 295 (15 874) (197) 4 221 13 622 (16 385) 3 3 3 335 4 793
Plants Rs’000 23 517 27 044 (38 793) 17 531 29 29 299 30 178 (41 440) 8 606 26 643
Total Rs’000 34 626 75 302 (78 123) 17 859 49 664 73 631 (78 661) 1 1 142 45 776
14 CONSUMABLE BIOLOGICAL ASSETS
THE GROUP
At July 01 01 2018
The consumable biological assets are measured at fair fair value value determined in in accordance with the the level 3 of the the fair fair value value hierarchy (a) The main assumptions for estimating the fair values are as as follows:
2020
50
9 96 10 1 1 16 076
8 1 year Vegetables Expected area to harvest (ha) Discount factor (%)
Standing cane Expected area to harvest (ha) Estimated yields (%)
Estimated price of sugar - (Rs per ton) Plants Expected area to harvest (ha) Maximum maturity of plants at at June 30 Description of significant inputs to valuation:
2019 42 9 98
10 4 14 031
8 1 year Sensitivity of the input to value:
1% increase/(decrease) in in in in cane yield per ha would result in in in in in increase/ increase/ (decrease) in in in fair value by Rs Rs 268 882 (2019: Rs 95 289)
5% increase/(decrease) in in in in the price of sugar would result in in in in in increase/ increase/ (decrease) in in in fair value by Rs Rs 497 431 (2019: Rs 476 447)
1% increase/(decrease) in in in in in WACC would result in in in in in (decrease)/increase in in in in in fair value by Rs Rs 3 3 604 (2019: Rs Rs 2 2 366)
(b)
UBP INTEGRATED REPORT 2020
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Valuation technique
Standing Discounted cane cash flows
Significant unobservable inputs Cane yield per hectare: 37 ton/ha ton/ha (2019: 38 ton/ha)
Price of sugar: Rs Rs 16 076/ton: (2019: Rs Rs 14 031/ton)
WACC: 12 48% (2019: 9 9 17%)
FINANCIAL CAPITAL CORPORATE MANAGEMENT STATEMENTS
REPORTS GOVERNANCE APPROACH
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