Due to plantation issues and negative market trend FLCH is stagnant. But NAV is still over 4.5.
NAV is heavily backed by it's 7.5 billion worth timber stocks in the balance sheet, which is debatable like TWOD.
Maybe an accountant in the forum, clarifying this will be useful.
1) How much of an impact does the Timber stock involve in the " Total Equity attributable to Equity Holders"
from annual report
The group has engaged an Independent Chartered Valuation Surveyor Mr.K.T.D.Tissera in determining the fair
value of Timber Stocks. The Valuer has valued the Timber Stocks as at 31st December 2010 on a per tree valuation
basis. The group has valued the Timber Stocks at fair value less estimated point-of-sale-costs.
Timber Trees namely Eucalyptus Torariyana, Albezzia, Graveelia, Eucalyptus Grandis, Astonia, Pinus, Toona,
Mahogany, Teak, Jack, Rubber, Nadun, Mango, Pellen, Hora, Domba, Lunumidella, Wal Del and Mara on the
plantations have been taken into consideration in this valuation of Timber Trees.
In valuing the timber plantations, under-mentioned factors have been taken into consideration.
i Age of the tree
ii Maturity age of the tree.
ii Annual marginal increase in growth in timber content.
iv Number of years to harvest in case of trees are matured for harvest.
v Timber content of harvestable trees.
vi The timber content of immature trees at an estimated future harvestable date.
vii The current price of species of timber per cubic foot at the relevant year.
viii Timber plants having below three years of age have not been taken into the valuation.