Heritage Foods Limited | 30th Annual Report 2021-22

Financial Statements Company Overview Statutory Reports 207 8. Investment property Land Building Total Gross Block Balance as at 1 April 2020 23.30 41.05 64.35 Transfers during the year - (14.38) (14.38) Balance as at 31 March 2021 23.30 26.67 49.97 Transfers during the year - - - Balance as at 31 March 2022 23.30 26.67 49.97 Accumulated depreciation Up to 31 March 2020 - 5.84 5.84 Depreciation charge for the year - 1.37 1.37 Transfers during the year - (2.52) (2.52) Up to 31 March 2021 - 4.69 4.69 Depreciation charge for the year - 1.08 1.08 Up to 31 March 2022 - 5.77 5.77 Net carrying amount As at 31 March 2021 23.30 21.98 45.28 As at 31 March 2022 23.30 20.90 44.20 (a) Information of net income derived from Investment property Particulars For the year ended 31 March 2022 31 March 2021 Lease rental income 18.08 11.85 Less: Depreciation (1.08) (1.37) Net income from Investment property 17.00 10.48 (b) Description of valuation technique and key assumptions used As at 31 March 2022 31 March 2021 Valuation technique: Discounted Cash Flow (“DCF”) method Estimated rental value per square feet per month (in absolute ` terms) 18 18 Rental growth per annum 5% 5% Discount rate 9.50% 9.50% (c) Changes in fair value of Investment property is shown below: Amount Fair value as on 31 March 2020 345.48 Transferred to Property, plant and equipment during the year (34.50) Increase in fair value of an existing Investment property 36.70 Fair value as on 31 March 2021 347.68 Transferred to Property, plant and equipment during the year - Increase in fair value of an existing Investment property - Fair value as on 31 March 2022 347.68 Notes: The disclosed fair value of investment property is derived based on the management’s internal workings using DCF method. Summary of the significant accounting policies and other explanatory information (All amounts in ` millions, except share data and where otherwise stated) Consolidated