2010-11 - Grasim

ULTRATECH CEMENT
MIDDLE EAST INVESTMENTS LIMITED
(ii) Income from services is recognised as they are rendered, based on agreement/arrangement with the
concerned parties.
(iii) Interest and other income are recognized on accrual basis.
14.
Taxation
In UAE and Bahrain there is no corporate taxation. Deferred tax relates to Bangladesh as under:
Deferred tax is recognized in respect of temporary differences between the carrying amount of assets and
liabilities for financial reporting purposes and the amount used for taxation purposes. Deferred tax is
measured at the rates that are expected to be applied to the temporary difference when they reverse,
based on the laws which have been enacted or substantively enacted by the reporting date.
As deferred tax is recognized for the unused tax losses, tax credits and deductible temporary differences,
to the extent that it is probable that future tax profit will be available against which temporary differences
can be utilized. 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 benefits will be realized.
15. Pro
rovisions, Contingent Liabilities and Contingent Assets
A provision is recognized when the Company has a present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate of the amount of the obligation can be made. Provisions, if
material, are determined by discounting the expected future cash flows at a rate that reflects current
market assessments of the time value of money and the risk specific to the liability.
Contingent liabilities are not recognised but are disclosed and contingent assets are neither recognised nor
disclosed, in the financial statements
16. Earnings per Share
The basic Earnings Per Share (“EPS”) is computed by dividing the profit for the year attributable to the
equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, profit for the year attributable to the equity
shareholders and the weighted average number of equity shares outstanding during the year are adjusted
for the effects of all dilutive potential equity shares.
17. Segment Reporting Policies
Primary Segment is identified based on the nature of products and services, the different risks and returns
and the internal business reporting system. Secondary segment is identified based on geography in which
major operating divisions of the Company operate.
B. NOTES
TO CONSOLIDATED FINANCIAL STATEMENT
TEMENT
1. Principles of Consolidation
The Consolidated Financial Statements (CFS) are prepared on the following basis in accordance with
Accounting Standard on “Consolidated Financial Statements” (AS – 21), notified under the Companies
(Accounting Standard) Rules, 2006:
(i) The financial statements of the Company and its subsidiary companies are combined on a line-byline
basis by adding together the book values of like items of assets, liabilities, income and
expenses, after eliminating material intra-group balances and intra-group transactions resulting in
unrealised profits or losses.
(ii) The difference between the costs of investment in the subsidiaries, over the net assets as at the
end of the financial year immediately preceding the year of acquisition of shares in the subsidiaries
is recognized in the financial statements as Goodwill or Capital Reserve as the case may be.
(iii) As far as possible, the consolidated financial statements are prepared using uniform accounting
policies for like transactions and other events in similar circumstances and appropriate adjustments
are made to the financial statements of subsidiaries when they are used in preparing the
consolidated financial statements that are presented in the same manner as the Company’s
separate financial statements.
(iv) The financial statements of the Company and its Subsidiaries used in the consolidation are drawn
upto the same reporting date i.e. March 31, 2011.
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