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

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UFLEX LIMITED
DIRECTOR’S CONSOLIDATED REPORT SCHEDULE
26. SIGNIFICANT ACCOUNTING POLICIES OF CONSOLIDATED ACCOUNTS
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The fi nancial statements have been prepared under the historical cost convention, on the accrual basis of accounting and in
accordance with the Companies Act, 1956 and comply with the Accounting Standards issued by the Institute of Chartered
Accountants of India, to the extent applicable.
2. PRINCIPLES OF CONSOLIDATION
The consolidated fi nancial statements are prepared in accordance with the principles and procedures required for the
preparation and presentation of the consolidated fi nancial statements as laid down under the Accounting Standard (AS)-21 on
“Consolidation of Financial Statements” issued by the Institute of Chartered Accountants of India on the following main lines:
I. The fi nancial statements of the holding company and its subsidiaries, for the fi nancial year ending 31st March, 2009 have
been combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and
expenses, subject to regrouping & netting of certain items, which present the consolidation in a fair manner without
aff ecting the materiality, after eliminating the intra-group transactions and also unrealized profi t or losses resulting from
intra-group transactions included in the carrying amount of assets.
II. The fi nancial statements of Joint Venture have been combined by applying proportionate consolidation method on a lineby-line
basis on items of assets, liabilities, income and expenses after eliminating proportionate share of unrealized profi ts
or losses in accordance with Accounting Standard -27 on “Financial Reporting of Interests in Joint Ventures” issued by the
Institute of Chartered Accountants of India.
III. The consolidated fi nancial statements are prepared by adopting uniform accounting policies for like transactions and
other events in similar circumstances and are presented to the extent possible, in the same manner as that of holding
company’s fi nancial statements.
IV. The excess / shortfall of cost to the holding company of its investment over its share of equity in the respective subsidiary
companies and joint venture companies is recognized in the fi nancial statements as goodwill / capital reserve respectively
as per the equity method of valuation.
V. All the fi gures of assets, liabilities, revenue & expenses of subsidiaries, which are stated in foreign currency in its separate
fi nancial statements, are converted into Indian Rupees as follows:
a. Monetary assets and all liabilities are translated at the year-end rate.
b. Non-monetary assets, acquired during the year, are translated at the average rate of the year. The carrying amount of
non-monetary assets and any adjustment thereto is made on historical rate.
c. Share capital is translated at the rate prevailing at the time when the investment was made by the holding
company.
d. All revenues and expenses are translated at the average rate of the year.
VI. Diff erences arising in consolidation on account of translations are refl ected in “Foreign Currency Translation Reserve
(arising on Consolidation)”, under “Reserve & Surplus”.
3.
VII. Investment in the sole associate company, viz M/s Flex Foods Limited, has been accounted under the Equity Method as
per Accounting Standard 23- “Accounting for Investments in Associates in Consolidated Financial Statements”, issued by
the Institute of Chartered Accountants of India.
VIII. The principles of consolidation are consistently followed except for the changes required by statute and / or Accounting
Standards.
THE CONSOLIDATED FINANCIAL STATEMENTS INCLUDE THE RESULTS OF THE FOLLOWING ENTITIES :
Sr. No. Name of the Company Country of Incorporation Relation Ownership Interest
1 Flex America Inc. USA Subsidiary 100%
2 Flex Europe Private Limited London-UK Subsidiary 100%
3 Ufl ex Packaging Inc. USA Subsidiary 100%
4 Flex Middle East FZE Dubai-UAE Subsidiary 100%
5 Flex P. Films (Egypt) S.A.E. Egypt Subsidiary 100%
6 UPET Holding Limited Mauritius Subsidiary 100%
7 UPET (Singapore) Pte. Ltd. Singapore Subsidiary 100%
8 Flex Americas S.A.de C.V. Mexico Subsidiary 100%
9 UTech Developers Limited India Subsidiary 100%
10 UTech Retailers Limited India Subsidiary 100%
11 AKC Developers Limited India Subsidiary 70%
12 QCELL Limited Gambia Joint Venture 40%
13 Flex Foods Limited India Associate 47.15%
4. OTHER SIGNIFICANT ACCOUNTING POLICIES
These are set out in the separate fi nancial statements of UFLEX Limited and its subsidiaries.
TWENTIETH ANNUAL REPORT 2008 - 2009