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

DIRECTOR’S FLEX MIDDLE REPORT EAST FZE
Notes to the Financial Statements For the year ended 31 March 2009
UFLEX LIMITED
1 Legal status and business activity
a) FLEX MIDDLE EAST FZE is a limited liability free zone establishment incorporated in the Jebel Ali Free Zone, Dubai, U. A. E.
pursuant to law No.9 of 1992 issued by the Ruler of Dubai.
b) The parent company is considered to be UFLEX LIMITED, India which a public limited liability company.
c) The establishment is engaged in manufacturing of high quality polyester, polyethylene terephthalate, plastic and
metalized fi lms and trading in these as well as printing equipment and instruments.
2. Basis of preparation
The fi nancial statements have been prepared in accordance with the International Accounting Standards, and applicable
requirements of U. A. E. laws. These fi nancial statements have been prepared under the historical cost convention and have
been presented in United States Dollar.
The preparation of fi nancial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also
requires management to exercise its judgment in the process of applying the establishment's accounting policies. There are
no areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are signifi cant to the
fi nancial statements.
These fi nancial statements contains information about the establishment as an individual establishment and do not contain
consolidated fi nancial information of its subsidiary company. The establishment has availed itself of the exemption under
lAS 27 "Consolidated Financial Statements and Accounting for Investments in Subsidiaries" from the requirement to prepare
consolidated fi nancial statements as it and its subsidiary are included by consolidation in the consolidated fi nancial statements
of the parent company.
3. Signifi cant accounting policies
The accounting policies in dealing with items that are considered material in relation to the establishment's fi nancial statements
are as follows:
a) Property, plant & equipment:
Properties in the course of construction for production, administrative purposes, or for purposes not yet determined,
are carried at cost, less any recognised impairment loss. Cost includes related expenses of acquisition/construction,
professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the establishment's accounting
policy. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for
their intended use.
Fixtures and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is charged so as to write off the cost or valuation of assets, other than land and properties under construction,
over their estimated useful lives, using the straight line method. The estimated useful lives, residual values and depreciation
method are reviewed at each year end, with the eff ect of any changes in estimate accounted for on a prospective basis.
Expenditure incurred to replace a component of an item which increases future economic benefi ts of the related item
of property, plant and equipment is capitalized and written off over its estimated useful life. All other expenditure is
recognised in the income statement as the expense is incurred.
The carrying amounts are reviewed at each balance sheet date to assess whether they are recorded in excess of recoverable
amount. Where carrying amount exceeds the recoverable amount, property, plant & equipment are written down to their
recoverable amount.
b) Other fi nancial assets:
Other fi nancial assets, representing operating lease for leased plots of land, are amortized over the lease period.
c) Borrowing cost:
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets
that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognized in profi t or loss in the period in which they are incurred.
d) Inventories:
Inventories are stated at the lower of cost and net realisable value. Costs are those expenses incurred in bringing each
product to its present location and condition, as follows:
TWENTIETH ANNUAL REPORT 2008 - 2009
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