2010-11 - Grasim

ULTRATECH CEMENT LANKA (PVT) LIMITED
Defer
erred
red Tax
Deferred tax is recognised in respect of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts
used for taxation purposes.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to
offset current tax liabilities and assets, and they relate to income taxes levied by the
same authority on the same taxable entity.
A deferred tax asset is recognised only to the extent that it is probable that future
taxable profits will be available against which the temporary differences will be
utilised. Deferred tax assets are reviewed at each reporting date and are reduced to
the extent that it is no longer probable that the related tax benefit will be realised.
Deferred tax liabilities are measured at the tax rates that are expected to apply to
the year when the liability is settled, based on tax rates (and tax laws) that have
been enacted or substantially enacted at the reporting date.
4. CASH FLOW STATEMENT
TEMENT
4.1 Cash and cash equivalents
The cash flow statement has been prepared using the “indirect method”.
Cash and cash equivalents are defined as cash in hand and demand deposits, readily converted to
known amounts of cash and subject to insignificant risk of changes in value.
Interest paid are classified as operating cash flows for the purpose of presentation of Cash Flow
Statement and reported based on the indirect method.
4.2 Capital al commitments and contingencies
Capital commitments and contingent liabilities of the Company are disclosed in the respective Notes to
the financial statements.
5. EARNINGS PER SHARE
The Company Group presents basic earnings per share (EPS) for its ordinary shares. Basic EPS is calculated
by dividing the profit or loss attributable to ordinary shareholders of the company by the weighted average
number of ordinary shares outstanding during the period.
6. EVENTS OCCURRING AFTER BALANCE SHEET DATE
All material post balance sheet events have been considered and where appropriate adjustment to or
disclosures have been made in the financial statements.
7. SEGMENT REPORTING
A segment is a distinguishable component of the Group that is engaged either in providing products or
services (business segment), or in providing products or services within a particular economic environment
(geographical segment), which is subject to risks and rewards that are
different from those of other segments. Segmental information is not presented as the Company’s
management and internal reporting structure does not facilitate the extraction of the requested information.
8. NEW STAND
ANDARDS
ARDS AND INTERPRETATIONS TIONS NOT YET ADOPTED
The Institute of Chartered Accountants of Sri Lanka issued a new volume of Sri Lanka Accounting Standards
which will become applicable for annual periods beginning on or after 1 st January, 2012. Accordingly these
Standards have not been applied in preparing these financial statements as they were not effective for the
period ended 31 st March, 2011.
The Company is currently in the process of evaluation the potential effect of these Standards on its financial
statements and the impact on the adoption of these Standards have not been quantified as at the reporting
date.
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