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

DIRECTOR’S U TECH DEVELOPERS REPORT LIMITED
SCHEDULE 18
UFLEX LIMITED
SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS
A. Signifi cant Accounting Policies
1. CLASSIFICATION OF EXPENDITURE / INCOME
Except otherwise indicated:
i) All expenditure and income are accounted for under the natural heads of account.
ii) All expenditure and income are accounted for on accrual basis.
2. ESTIMATES OF COST
The preparation of the fi nancial statements in conformity with GAAP requires the Company to make estimates and assumption
that aff ect the balance of assets and liabilities and disclosures relating to contingent liabilities as at the reporting date of the
fi nancial statements and amounts of income and expenses during the period of account. Examples of such estimates include
accounting for balance cost to complete ongoing projects, income taxes and future obligation under employee retirement
benefi t plans. Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be reasonably
estimated, Actual results could diff er from those estimates.
3. VALUATION
i) FIXED ASSETS
Fixed Assets are normally accounted for on cost basis including the cost of installation, pre-operative expenses, identifi able
trial run expenses where incurred/ eligible adjustment on account of foreign exchange fl uctuations and impairment losses.
Pre-operative expenses and identifi able trial run expenses incurred by the company up to the date eligible assets are put
to use in proportion to their cost. The cost of fi xed assets is adjusted for revaluation, if any, done in any year as decided by
the management so as to show the fi xed assets at their current value.
ii) INVENTORIES
Inventories are valued at lower of cost and net realisable value. In respect of work-in-progress, comprising of developing
long term properties and assets, the qualifying assets are valued at direct cost of construction including borrowing and
other costs incidental thereto incurred up to the state of keeping those qualifying assets ready for sale in compliance with
Accounting Standard-16.
4. FOREIGN CURRENCY TRANSACTIONS
a) Foreign currency monetary items remaining unsettled at the year end are translated at year end rates. Non-monetary
items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the
date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in
foreign currency are reported using the exchange rates that existed when the values were determined.
b) Exchange diff erences on outstanding loans / payables / liabilities are adjusted as income / expense through the Exchange
Fluctuation Account in the year they arise.
c) Diff erence between the forward and exchange rate on the date of transactions are adjusted over the period of the contract
as an income / expense through the Exchange Fluctuation Account.
d) Profi t or loss on cancellation of forward contracts are adjusted as income / expense through Exchange Fluctuation Account
in the year they arise.
5. DEPRECIATION
i) Normal depreciation on all fi xed assets, except land and extra shift depreciation on specifi c plant & machineries for the
period of extra shift worked, are provided from the date of put to use on straight line method at the rates prescribed in
Schedule-XIV to the Companies Act, 1956.
ii) No depreciation is provided on leasehold land.
iii) Depreciation on additions / deletions to fi xed assets is provided on pro-rata basis from / to the date of additions/
deletions.
iv) In case the fi nancial year consists of the period less / more than the normal period of 12 months, depreciation on fi xed
assets existing at the beginning of the fi nancial year as well as those acquired during the said period are provided for the
period covered on pro-rata basis.
TWENTIETH ANNUAL REPORT 2008 - 2009 | 141 |
S U B S I D I A R I E S