2010-11 - Grasim

ULTRATECH CEMENT LANKA (PVT) LIMITED
2.5 Going concern
The Directors have made an assessment of the Company’s ability to continue as a going concern
in the foreseeable future, and they do not intend either to liquidate or to cease trading.
3. SIGNIFICANT ACCO
CCOUNTING POLICIES
The accounting policies set out below are consistent with those used in the previous year. Certain comparative
amounts have been reclassified to conform to current year’s presentation.
3.1. Foreign currency rency translation
Transactions in foreign currencies are translated to Sri Lankan Rupees at the exchange rate applicable
on the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at
the reporting date are retranslated to the Sri Lankan Rupees at the exchange rate ruling at that date.
Foreign currency exchange differences arising on translation are recognised in profit and loss.
3.2. Assets and bases of their valuation
Assets classified as current assets on the Balance Sheet are cash and bank balances and those which
are expected to be realised in cash during the normal operating cycle or within one year from the
reporting date, whichever is shorter.
3.2.1. Propert
roperty, , plant and equipment
3.2.1.1
.1. Owned
Assets
Items of property, plant and equipment are measured at cost less accumulated
depreciation and accumulated impairment losses.
The cost of property, plant and equipment includes expenditure that is directly attributable
to the acquisition of the asset. The cost of self-constructed assets includes the cost of
materials and direct labour and any other costs directly attributable to bringing the asset
to a working condition for its intended use.
3.2.1.2.
Subsequent expendit
xpenditure
The cost of replacing a part of an item of property, plant & equipment is recogniszed in
the carrying amount of the item if it is probable that the future economic benefits
embodied within the part will flow to the Company and its cost can be measured
reliably. The carrying amount of the replaced part is derecognised.
The cost of the day-to-day servicing of property, plant & equipment are recognised in
profit and loss as incurred.
3.2.1.3.
.3. Depreciation
Depreciation is recogniszed in profit and loss on a straight-line basis over the estimated
useful lives of items of each part of an item of property, plant and equipment.
The estimated useful lives for the current period are as follows;
Building
25 Years
Plant and Machinery
18 Years
Lab Equipment
06 Years
Electronic Installation
18 Years
Office Equipment
04 Years
Motor Cars
05 Years
Motor Cycles
05 Years
HT Power line
18 Years
Computers
04 Years
Software
03 Years
Furniture & Fittings
06 Years
Depreciation of an asset begins when it is available for use and ceases at the earlier of
the date that the asset is classified as held for sale or is derecognized.
Depreciation methods, useful lives and residual values are reassessed at the reporting
date.
3.2.2. Trade and other receivables
Trade and other receivables are stated at their amounts estimated to realise.
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