URANIUM CORPORATION OF INDIA LIMITED - (UCIL).....

deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty
that the assets will be realized in future.
13. CASH FLOW STATEMENT :
Cash flow is reported using the indirect method, whereby profit before tax is adjusted for the effects of
transactions of a non cash nature and any deferrals or accruals of past or future cash receipts or payments.
The cash flow from regular revenue generating, financing, and investing activities of the company are
segregated.
14. RESEARCH & DEVELOPMENT EXPENSES :
Expenditure relating to capital items is debited to fixed assets and depreciated at applicable rates. Revenue
expenditure is charged to Profit & Loss Account of the year in which it is incurred.
15. PRIOR PERIOD ADJUSTMENTS :
Items of income/expenses above Rs. 50,000/- in each case relating to previous years, are accounted as
Prior Period Adjustments.
16. PREPAID EXPENSES :
Prepaid expenses are accounted for only where the amounts relating to unexpired period, exceeds
Rs. 50,000/- in each case.
17. EXCEPTION TO ACCRUAL SYSTEM OF ACCOUNTINGS :
The company follows accrual system of accounting except for the following items which are accounted
on cash basis :
a) Expenses, value of which cannot be estimated with a reasonable accuracy for the purpose of making
provision.
b) Medical Stores, Sports Materials, Printing & Stationery and Provisions for Canteen and Guest House
are charged to expenses at the time of purchase.
18. IMPAIRMENT OF ASSETS
a) The carrying amount of assets are reviewed at each balance sheet date to determine whether there is any
indication of impairment. If any indication exists, the assets recoverable amount is estimated. An
impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.
The recoverable amount is the greater of the assets selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value based on the return on capital
employed, fixed by the Government of India for fixation of compensation rate of Uranium Concentrate.
b) After impairment, depreciation is provided on the assets revised carrying amount over its remaining
useful life.
c) A previously recognized impairment loss is increased or decreased depending on changes in
circumstances. However, an impairment loss is not decreased to an amount higher than the carrying
amount that would have been determined (net of amortization or depreciation) had no impairment
loss been recognized in the prior year.
19. CONTINGENT LIABILITIES :
These are disclosed by way of notes on the Balance Sheet. Provision is made in the accounts in respect of
those contingencies which are likely to materialize into liabilities after the year end till the finalisation of
accounts and have material effect on the position stated in the Balance Sheet.
20. PROVISIONS :
A provision is recognized when there is a present obligation as a result of past event and it is probable
that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate
can be made. Provisions are not discounted to its present value and are determined based on management
estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance
sheet date and adjusted to reflect the current management estimates.
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