2010-11 - Grasim

ULTRATECH CEMENT LANKA (PVT) LIMITED
However, according to the Payment of Gratuity Act No.12 of 1983, the liability for
payment to an employee arises only after the completion of 5 years continued service.
The liability is not externally funded.
3.3.1.2.
.2. Defined contribution plan
A defined contribution plan is a post-employment benefit plan under which the Company
pays fixed contributions into a separate entity and will have no legal or constructive
obligation to pay further amounts. Obligations for contributions to Provident and Trust
Funds covering all employees are recognised as an expense in profit and loss in the
periods during which services are rendered by employees.
3.3.2. Trade and other payables
ables
Trade and other payables are stated at their cost.
3.3.3. Pro
rovisions
A provision is recognised if as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation.
3.4. Income Statement
For the purpose of presentation of the Income Statement, the “function of expenses
method” is adopted, as it represents fairly the elements of Company performance.
3.4.1. Revenue
enue
Revenue from sale of goods is measured at the fair value of the consideration
received or receivable, net of returns and allowances, trade discounts and volume
rebates. Revenue is recognised when the significant risks and rewards of
ownership have been transferred to the buyer, recovery of the consideration is
probable, the associated costs and possible return of goods can be estimated
reliably, and there is no continuing management involvement with the goods.
Gains or losses on the disposal of property, plant and equipment are determined
by comparing the net sales proceeds with carrying amount. These are included in
profit and loss.
Interest income is recognised in the income statement as it accrues.
3.4.2 Expenses
All expenditure incurred in the running of the business has been charged to
income in arriving at the profit for the year.
3.4.2.1 Operating Leases
Leases where the lessor effectively retains substantially all the risks and rewards
of ownership over the lease term are classified as operating leases. Payments
made under operating leases are recognised in profit and loss on a straight-line
basis over the term of the lease.
3.4.2.2 Bor
orro
rowing Costs
Borrowing costs are recogniszed as an expense in the period in which they are
incurred.
3.4.2.3 Finance income and expenses
Finance income / cost comprise interest expense on borrowings, interest income
on funds invested and gains and losses on translation of foreign currency.
3.4.2.4 Income Tax
ax
Income tax expense comprises current tax and deferred tax. Income tax is
recognised in profit or loss except to the extent that it relates to items recognised
directly in equity, when it is recognised in equity.
Current
rent Tax
Current tax is the expected tax payable on the taxable income for the year, using
tax rates enacted at the balance sheet date, and any adjustment to tax payable
in respect of previous years.
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