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

DIRECTOR’S AKC DEVELOPERS REPORT LIMITED
21) SIGNIFICANT ACCOUNTING POLICIES
1. BASIS OF ACCOUNTING
UFLEX LIMITED
The Financial Statements are prepared under historical cost convention, on accrual basis, in accordance with the generally
accepted accounting principles in India and in compliance with the Accounting Standards prescribed in the Companies
(Accounting Standards) Rules, 2006 issued by the Central Government in exercise of the power conferred under Sub-Section (I)
(a) of Section 642 and the relevant provisions of the Companies Act, 1956 (“the Act”)
2. USE OF ESTIMATES
The preparation of fi nancial statements in conformity with generally accepted accounting principles requires management
to make estimates and assumptions that aff ect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities on the date of the fi nancial statements and the reported accounts of revenues and expenses for the years
presented. Actual results could diff er from these estimates.
3. VALUATION
i) Fixed Assets
Fixed Assets are normally accounted for on cost basis (net of CENVAT credits, if applicable) 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 for commercial production are allocated to them 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) Finished Goods
Finished goods are valued at lower of cost, based on weighted average method, arrived after including depreciation
on plant & machinery, electrical installation and factory building, repair & maintenance on factory building, specifi c
manufacturing expenses including excise duty and specifi c payments & benefi ts to employees or net realisable value.
iii) Work-in-Progress
Work-in-Progress are valued at lower of cost, based on weighted average method, arrived after including depreciation
on plant & machinery, electrical installation and factory building, repair & maintenance on factory building, specifi c
manufacturing expenses and specifi c payments & benefi ts to employees or net realisable value.
iv) Raw Materials
Raw Materials are valued at lower of cost, based on fi rst-in-fi rst-out method arrived at after including freight inward and
other expenditure directly attributable to acquisition or net realisable value.
v) Stores, fuel and packing materials are valued at lower of cost, based on fi rst-in-fi rst-out method or net realisable value.
4. Cost of spares, tools, jigs & dies are charged to revenue.
5. LEASES
Lease rentals paid on operating leases are charged to revenue.
6. 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 for commercial production 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.
v) Depreciation on additions / deletions to the fi xed assets due to eligible foreign exchange fl uctuations is provided on
pro-rata basis from the date of additions / deletions.
TWENTIETH ANNUAL REPORT 2008 - 2009 | 167 |
S U B S I D I A R I E S