2010-11 - Grasim

ULTRATECH CEMENT LANKA (PVT) LIMITED
ACCO
CCOUNTING POLICIES
1. REPORTING ENTITY
TY
Larsen and Toubro Ceylinco (Pvt) Ltd was incorporated on 29 th August, 1997 as a Private Limited Liability
Company and domiciled in Sri Lanka. Consequence to the change in the major share holder of the Company,
the Company was renamed as Ultratech Ceylinco (Pvt) Ltd on 11 th March, 2006. Subsequently, the Company
changed its name to Ultratech Cement Lanka (Pvt) Limited on 02 nd October, 2009.The company’s registered
office is No.81/11/1 New Nuge Road, Peliyagoda, Kelaniya.
1.1
Principal
Activities and Nature of Operations
During the year, the principal activities of the Company was importing naked cement and marketing
same in 50kg bags and in bulk form.
1.2
Parent Enterprise and Ultimate Parent Enterprise
The Company’s ultimate parent undertaking and controlling party is Ultratech Cement Ltd, which is
incorporated in India.
The shareholding structure of the Company as at the Balance Sheet date is as follows;
• Ultratech Cement Limited 80%
• Ceylinco Insurance Company Limited 18%
• Ceylinco International Trading Limited 2%
1.3
Date of authorisation for issue
The financial statements for the year ended 31st March 2011 were authorised for issue in accordance
with a resolution of the Board of Directors on 08 th April 2011.
2. BASIS OF PREPARA
ARATION
2.1. Statement of compliance
The financial statements of the Company have been prepared in accordance with the Sri Lanka
Accounting Standards (SLAS) issued by the Institute of Chartered Accountants of Sri Lanka (ICASL) and
the requirements of the Companies Act No. 07 of 2007 and Sri Lanka Accounting and Auditing
Standards Act No.25 of 1995.
2.2. Basis of measurement
The financial statements have been prepared on the historical cost basis except that Retirement
Benefit Obligations are measured at the present value of the Defined Benefit Plan as explained in Note
22 to the financial statements..
2.3. Functional and presentation currency
rency
The financial statements are presented in Sri Lankan Rupees, which is the functional currency of the
Company.
2.4. Use of Estimates and Judgments
The preparation of financial statements in conformity with SLAS requires management to make
judgments, estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income and expenses. Actual results may differ from those
estimates and judgmental decisions.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that
period or in the period of the revision and future periods if the revision affects current and future
periods.
Information about significant areas of estimation uncertainty and critical judgments in applying accounting
policies that have the most significant effect on the amounts recognised in the financial statements is
included in the following notes:
• Note 22 – measurement of retirement benefit obligations
• Note 23 - Deferred tax assets/( liabilities)
• Note 28 – contingencies
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