Annual Report 2012-2013 - UB Group

Notes to the Financial Statements (contd.)
d) Short term employee benefits:
Undiscounted amount of short term employees benefits expected to be paid in exchange for the services
rendered by the employees is recognized during the period when the employee renders the services. These
benefits include compensated absences such as paid annual leave and performance incentives.
xii. Segment reporting:
The operations of the Company are divided into alcoholic beverages, leather products, readymade garments,
investments, guarantee services, property development and other activities. Accordingly, the primary segment
reporting comprises the performance under these segments and the secondary segment reporting is based on
geographical locations of customers.
xiii. Related Party disclosures:
Transactions between related parties are disclosed as per Accounting Standard 18- “Related Party Disclosures”.
Accordingly, disclosures regarding the name of the transacting related party, description of the relationship
between the parties, nature of transactions and the amount outstanding as at the end of the accounting year,
are made.
xiv. Taxes on Income:
Provision for income tax comprises of current taxes and deferred taxes. Current tax is determined as the amount
of tax payable in respect of taxable income for the period.
Deferred tax is recognized on timing differences between the accounting income and the taxable income for
the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet
date.
Deferred tax assets are recognized and carried forward to the extent that there is reasonable / virtual certainty
that sufficient future taxable income will be available against which such deferred tax asset can be realized.
xv. Impairment of assets:
The Company evaluates all its assets for assessing any impairment and accordingly recognises the impairment,
wherever applicable, as provided in Accounting Standard 28- “Impairment of Assets”.
xvi. Provisions and Contingencies:
A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable
that an out flow of resources will be required to settle the obligation in respect of which a reliable estimate
can be made. Provisions are not discounted to its present value and are determined based on Management
estimates required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet
date and adjusted to reflect the current Management estimates.
xvii. Earnings per share:
Earnings per equity share (basic / diluted) is arrived at by dividing the Net Profit or Loss for the year attributable
to the equity shareholders by the weighted average number of equity shares outstanding during the year.
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