ANNOUNCEMENT
Preface
The Board of Directors of Majan Glass Company SAOG had invited a Technical Consultant for evaluating the estimated balance lives of all the Plant and Machinery equipments with a view to determining a common policy for depreciation in line with the depreciation rates followed in the Glass Industry. The currently existing depreciation policy was prevalent from the time of inception of the plant and even prior to the restructuring.
Board Decision
The Board of directors have approved the following decision after due review in the Board Meeting held in the evening of 01 June 2015.
Based on the assessment of the technical consultant the impact of Accelerated Depreciation (in addition to the normal depreciation) amounts to approximately RO 1.60 million during the current financial year 2015. The estimated Accelerated depreciation would have a major impact for the next three years (RO 0.700 million for year 2016, RO 0.500 million for year 2017, RO 0.200 million for year 2018)
However it may be emphasized that this will not have any impact on the company’s cash flow position as it is merely a book entry
The above shall be incorporated in the financial results starting from the Second quarter onwards,
Sd-
Chairman
01 June 2015
