2010-11 - Grasim

UltraTec
ech Cement Limited
SCHEDULE 21 (Contd.)
(vii) Depreciation is charged on Straight Line basis at UltraTech Cement Middle East Investment
Limited and its subsidiaries at following rates.
Tangible
Assets:
No. of Years
Buildings (including improvements) 3-15
Plant and equipment 2-20
Furniture, fixtures and office equipment 1-5
Motor vehicles 3-5
Amortisation of intangible Assets 8.5
(B) Intangible Assets:
Specialised softwares are amortised over a period of 3 years.
10.
Impairment of Assets:
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 ee Benefits:
(i)
Short term employee ee benefits.
Short term employee benefits are recognised as an expense on accrual at the undiscounted
amount in the Profit and Loss Account.
(ii) Defined Contribution Plan
Contributions payable to recognised provident fund and approved superannuation scheme, which
are defined contribution plans, are recognised as expense in the Profit and Loss Account; as they
are incurred.
Contributions as specified by the law are paid to the provident fund set up as irrevocable trust by
the holding company. The Company is generally liable for annual contribution and any shortfall in
the fund assets based on the Government specified minimum rates of return and recognises
such contribution and shortfall, if any, as an expense in the year incurred.
(iii) Defined Benefit Plan
The obligation in respect of defined benefit plans, which cover Gratuity, Pension and Post retirement
medical benefits, are provided for on the basis of an actuarial valuation, using the projected unit
credit method, at the end of each financial year. Gratuity is funded with an approved fund.
Actuarial gains/losses, if any, are recognised immediately in the Profit and Loss Account.
Obligation is measured at the present value of estimated future cash flows using a discount rate
that is based on the prevailing market yields of Government of India securities as at the balance
sheet date for the estimated term of the obligations.
(iv) Other Long
Term Benefits
Long-term compensated absences are provided for on the basis of an actuarial valuation, using
the projected unit credit method, at the end of each financial year. Actuarial gains/losses, if any,
are recognised immediately in the Profit and Loss Account.
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.
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