Our endeavour is to enhance Stakeholders' Value - Uflex Ltd.

DIRECTOR’S UPET HOLDINGS REPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2009
1 LEGAL STATUS AND PRINCIPAL ACTIVITY
UFLEX LIMITED
The Company was incorporated in Mauritius under the Companies Act 2001 on 10 April 2008 as a private company limited
by shares and holds a Category 1 Global Business Licence issued by the Financial Services Commission. The address of the
Company’s registered offi ce is Les Cascades Building, Edith Cavell Street, Port Louis, Mauritius.
The principal activity of the Company is investment holding.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Statement of compliance
The fi nancial statements are prepared in accordance with and comply with International Financial Reporting Standards
(IFRS). The preparation of the fi nancial statements in conformity with International Financial Reporting Standards requires
management to make estimates and assumptions that aff ect the reported amounts of assets and liabilities at the date of the
fi nancial statements and the reported amounts of revenues and expenses during the reporting year. Actual results could diff er
from those estimates.
(b) Basis of accounting
The fi nancial statements are prepared under the historical cost convention as modifi ed by the fair valuation of available for sale
investments.
(c) Basis of preparation
The fi nancial statements have been prepared on the going concern basis which assumes that the Company will continue
in operational existence for the foreseeable future. The validity of this assumption depends on the continued support of its
shareholder. The directors are of the opinion that this support will be forthcoming over the next twelve months. They therefore
believe that it is appropriate for the fi nancial statements to be prepared on the going concern basis.
(d) Loans and receivables
Loan receivable are non-derivative fi nancial assets with fi xed or determinable payments that are not quoted in an active
market. Such assets are carried at amortised cost using the eff ective interest method. Gains and losses are recognised in
the income statement when the loans and receivables are derecognised or impaired as well as through the amortisation
process.
(e) Impairment of non-fi nancial assets
The carrying amount of assets are assessed at each balance sheet date to determine whether there are any indications of
impairment. If any such indication exists, the Company estimates the recoverable amount of the asset being the higher of the
asset’s net selling price and its value in use, in order to determine the extent of the impairment loss (if any). An impairment
loss is recognised for any excess of the asset’s carrying amount over its recoverable amount and is taken directly to the income
statement.
The Company assesses at each balance sheet date whether a fi nancial asset or group of fi nancial assets is impaired
(f) Assets carried at amortised cost
If there is objective evidence that an impairment loss on assets carried at amortised cost has been incurred, the amount of
the loss is measured as the diff erence between the asset’s carrying amount and the present value of estimated future cash
fl ows (excluding future expected credit losses that have not been incurred) discounted at the fi nancial asset’s original eff ective
interest rate (i.e., the eff ective interest rate computed at initial recognition). The carrying amount of the asset is reduced through
use of an allowance account. The amount of the loss shall be recognised in profi t or loss.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event
occurring after the impairment was recognised, the previously recognised impairment loss is reversed, to the extent that the
carrying value of the asset does not exceed its amortised cost at the reversal date. Any subsequent reversal of an impairment
loss is recognised in profi t or loss.
In relation to trade receivables, a provision for impairment is made when there is objective evidence (such as the probability of
insolvency or signifi cant fi nancial diffi culties of the debtor) that the Company will not be able to collect all of the amounts due
under the original terms of the invoice. The carrying amount of the receivable is reduced through use of an allowance account.
Impaired debts are derecognised when they are assessed as uncollectible.
TWENTIETH ANNUAL REPORT 2008 - 2009 | 105 |
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