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

DIRECTOR’S FLEX AMERICA REPORT INC.
NOTES TO FINANCIAL STATEMENTS MARCH 31, 2009 AND 2008
NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
UFLEX LIMITED
Nature of Operations
Flex America, Inc. (the Company) is a wholly owned subsidiary of UFLEX Limited, a company registered in New Delhi, India. The
Company imports into the United States and sells primarily polyester BOPP, metallized and CPP fi lms manufactured by UFLEX
Limited and its subsidiaries.
Use of Estimates
The preparation of fi nancial statements in conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that aff ect the reported amounts of assets and liabilities and
the disclosure of contingent assets and liabilities at the date of the fi nancial statements, as well as the reported amounts of revenues
and expenses during the reporting period. Actual results could diff er from those estimates.
Cash Equivalents
For purposes of the statement of cash fl ows, the Company considers all short-term debt securities purchased with a maturity of
three months or less to be cash equivalents.
Inventories
Inventories consisting of merchandise for resale are valued at the lower of cost or market as determined on a fi rst-in,
fi rst-out basis.
Property and Equipment
Property and equipment are valued at cost, net of depreciation. Offi ce equipment and automobiles are depreciated on a straightline
basis over the estimated useful life of the asset.
Trade Accounts Receivable
Trade accounts receivable is recorded net of an allowance for expected losses. The allowance is estimated from historical performance
and projections of trends. At March 31, 2009 and 2008 no allowance has been provided for.
NOTE B: RELATED PARTY TRANSACTIONS
The Company purchases all of its fi nished goods from its Parent, UFLEX Limited and its subsidiary Flex Middle East, FZE-Dubai and
Flex Americas, S.A. de C.V.-Mexico. The total of goods purchased for the years ended March 31, 2009 and 2008 was $17,145,982
and $17,025,039, respectively. As of March 31, 2009 and 2008 the Company had accounts payable to its Parent and subsidiaries of
$3,616,683 and $6,082,074, respectively.
NOTE C: INVENTORIES
Inventory, is stated at lower of cost or market, and at March 31 were:
2009 2008
$ Rs in Lacs $ Rs in Lacs
Finished goods in transit 722,897 366.73 1,287,947 653.38
Finished goods 714,748 362.59 1,774,492 900.20
Total Inventory 1,437,645 729.32 3,062,439 1553.58
Eff ective April 1, 2008, holographic/metallized gift wraps, laminated pouches, and fl exible laminates business was transferred to its
associated company, Ufl ex Packaging, Inc. All assets and liabilities of that activity were transferred to them at cost.
NOTE D: DESCRIPTION OF LEASING ARRANGEMENTS
The Company leased an offi ce in Cornelius, North Carolina under a non cancelable operating lease which expired on December 31,
2008. The Company relocated to Houston, Texas on January 1, 2009.
The following is a schedule of future minimum lease payments under the lease:
Year ending : $ Rs in Lacs
December 31,2009 22,164 11.24
December 31, 2010 22,608 11.47
December 31, 2011 23,064 11.70
67,836 34.41
TWENTIETH ANNUAL REPORT 2008 - 2009
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