2010-11 - Grasim

ULTRATECH CEMENT
MIDDLE EAST INVESTMENTS LIMITED
Non-financial assets:
The carrying amounts of the Company’s non-financial assets, other than inventories, are reviewed at each
reporting date to determine whether there is any indication of impairment. If any such indication exists then
the asset’s recoverable amount is estimated. For goodwill, the recoverable amount is estimated annually.
The carrying amounts of assets are reviewed at each balance sheet date if there is an indication of
impairment based on the internal and external factors.
An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An
impairment loss, if any, is charged to the Profit and Loss Account in the year in which the asset is identified
as impaired. Reversal of impairment loss recognised in prior years is recorded when there is an indication
that impairment loss recognised for the asset no longer exists or has been decreased.
11. Employee Benefits
a. U.A.E. nationals – Pension and Social Security:
In accordance with Federal Labour Law No.7 of 1999 for pension and social security, employers are
required to contribute 12.5 % of the ‘contribution calculated on salary’ of those employees who are
UAE nationals. These employees are also required to contribute 5% of the ‘contribution calculated on
salary’ to the scheme. The Company’s contribution is recognized as an expense in the profit or loss as
incurred. The employees and employers’ contribution, to the extent remaining unpaid at the reporting
date, has been shown under other liabilities.
b. Bahraini nationals – Pension and Social Security:
Pension and other social benefits for Bahraini nationals are covered by the General Organisation for
Social Insurance scheme to which employees and employers contribute monthly on a fixed percentage
of salaries basis. The company’s contribution to this scheme which represents a defined contribution
scheme is expensed as incurred.
In accordance with the General Organisation for Social Insurance scheme, employers are required to
contribute 12.5% of the ‘contribution calculated on salary’ of those employees who are Bahrain
nationals. These employees are also required to contribute 7% of the ‘contribution calculated on salary’
to the scheme. The company’s contribution is recognized as an expense in the profit and loss as
incurred. The employees and employers’ contribution, to the extent remaining unpaid at the reporting
date, has been shown under other liabilities.
c. At Bangladesh – Pension and Social Security:
There is no defined contribution plan (Provident Fund) but the subsidiaries have started defined benefit
plan (Gratuity Fund) for the employees of the subsidiaries in 2010 as per Workmen Compensation Act.
Each employee, on completion of the probation period will be eligible for the scheme and the subsidiaries
contribute one month’s basic pay on completion of 12 months or part thereof.
d. Expatriates at U.A.E. – Gratuit
uity:
The provision for staff terminal benefits is calculated in accordance with the UAE Federal Labour Law
and the relevant local laws applicable to overseas subsidiaries and is based on the liability that would
arise if the employment of the entire Company’s staff were terminated at the reporting date.
e. Expatriates at Bahrain – Gratuit
uity:
y:
The provision for employees terminal benefits is calculated in accordance with the Bahrain labour law
and the relevant local laws applicable to overseas subsidiaries and is based on the liability that would
arise if the employment of the entire Company’s employees were terminated at the reporting date.
12. Bor
orro
rowing Costs
Borrowing costs that are attributable to the acquisition or construction of a qualifying asset are capitalised
as part of the cost of such asset till such time the asset is ready for its intended use. A qualifying asset is
an asset that necessarily takes a substantial period of time to get ready for its intended use. All other
borrowing costs are recognised as an expense in the period in which they are incurred
13. Revenue enue Recognition
(i) Sales Revenue is recognised on transfer of significant risks and rewards of ownership of the goods to
the buyer. Sales are net of Sales Tax, VAT, trade discounts, rebates and returns but includes excise duty.
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