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Accounting Policies of U T Ltd. Company

Mar 31, 2013

1.1 Basis of accounting and preparation of Financial Statements

These Financial Statements have been prepared in accordance with the Generally Accepted Accounting Principles In India (Indian GAAP) under the historical cost convention on accrual basis, except for certain tangible assets which are carried at revalued amounts. These Financial Statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C) [Companies (Accounting Standards) Rules 2006, as amended] and other relevant provisions of the Companies Act, 1956.

All assets and liabilities have been classified as current or non current as per the Company''s normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956. Based on the nature of products and time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - noncurrent classification of assets and liabilities.

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 FIXED ASSETS (comprising both tangible and intangible items) are stated at cost except in case of certain items of Land, Buildings and Plant and Machinery which are stated on the basis of revaluation (with corresponding credit to the Revaluation Reserve Account), being inclusive of resultant write ups.

Software is capitalised where it is expected to provide future enduring economic benefit. Capitalisation costs includes license fees and cost of implementation / system integration services. The costs are capitalised in the year in which the relevant software is implemented for use.

IMPAIRMENT LOSS, if any, is recognised wherever the carrying amount of fixed assets of a cash generating unit exceeds its recoverable amount i.e. net selling price or value in use, whichever is higher.

1.4 DEPRECIATION (including amortisation) on fixed assets including those utilised in RESEARCH AND DEVELOPMENT (R&D) activities, is provided on straight-line basis at rates which are in conformity with the requirement of the Companies Act, 1956. Computer Software is amortised on straight line basis over its estimated useful life of five years.

1.5 REVENUE is recognised on completion of sale of goods, rendering of services and / or use of the Company''s resources by third parties. Revenue on Construction Contracts is recognised on Percentage of Completion Method with reference to stage of completion of contract activity. The stage of completion of a contract is determined as the proportion that contract costs incurred for work performed bear to the estimated total contract costs. However, provisions are made for the entire loss on a contract irrespective of the amount of work done.

1.6 REVENUE expenditure on Research and Development is expensed in the period it is incurred.

1.7 BORROWING COST attributable to the acquisition and construction of qualifying assets are added to the cost up to the date when such assets are ready for their intended use. Other borrowing costs are recognised as expense in the period in which these are incurred.

1.8 INVENTORIES are valued at cost and net realisable value whichever is lower. The costs are, in general, ascertained under weighted average system on the basis of rates per unit of measurement determined after recording receipts for individual items of inventories.

1.9 TRANSACTION IN FOREIGN CURRENCY are recorded at exchange rates prevailing on the date of transaction. Monetary items denominated in foreign currency are restated at the exchange rate prevailing on the Balance Sheet date. Foreign currency non monetary items carried in terms of historical cost are reported using the exchange rate on the date of transactions. Exchange differences arising on settlement of transactions and / or restatements are dealt with in the Statement of Profit and Loss.

1.10 EMPLOYEE BENEFITS :

(i) Short - term Employee Benefits :

The undiscounted amount of short - term Employee Benefits expected to be paid in exchange for the services rendered by employees is recognised during the period when the employee renders the service.

(ii) Post Employment Benefit plans :

Contributions under Defined Contribution plans payable in keeping with the related schemes are recognised as expense for the period.

For Defined Benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each Balance Sheet date . Actuarial gains and losses are recognised in full in the Statement of Profit and Loss for the period in which they occur , past service cost is recognised immediately to the extent that the benefits are already vested , and otherwise is amortised on a straight - line basis over the average period until the benefits become vested .The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost , and as reduced by the fair value of plan assets . Any assets resulting from this calculations is limited to past service cost , plus the present value of available refunds and reductions in future contributions to the scheme.

(iii) Other Long - term Employee Benefits ( unfunded ) :

The cost of providing long - term employee benefits (namely compensated absences) is determined using Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses and past service cost are recognised immediately in the Statement of Profit and Loss for the period in which they occur. Other long term employee benefit obligation recognised in the Balance Sheet represents the present value of related obligation.

1.11 LEASES

For assets acquired under Operating Lease, rentals payable are charged to Statement of Profit and Loss. Assets acquired under Finance Lease are capitalised at lower of the Fair value and present value of Minimum Lease Payments.

1.12 CURRENT TAX is determined as the amount of tax payable in respect of taxable income for the period based on applicable tax rates and laws. DEFERRED TAX is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and is measured using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are reviewed at each Balance Sheet date to re-assess realisation.

1.13 PROVISION is recognised when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Disclosure for CONTINGENT LIABILITY is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. No provision is recognised or disclosure for contingent liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote.


Sep 30, 2012

1.1 Basis of accounting and preparation of Financial Statements

These Financial Statements have been prepared in accordance with the Generally Accepted Acccouning Principles In India (Indian GAAP) under the historical cost convention on accrual basis, except for certain tangible assets which are carried at revalued amounts. These Financial Statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C) [Companies (Accounting Standards) Rules 2006, as amended] and other relevant provisions of the Companies Act, 1956.

All assets and liabilities have been classified as current or non current as per the Company''s normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956. Based on the nature of products and time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 FIXED ASSETS ( comprising both tangible and intangible items ) are stated at cost except in case of certain items of Land, Buildings and Plant and Machinery which are stated on the basis of revaluation (with corresponding credit to the Revaluation Reserve Account), being inclusive of resultant write ups.

Software is capitalised where it is expected to provide future enduring economic benefit. Capitalisation costs includes license fees and cost of implementation / system integration services. The costs are capitalised in the year in which the relevant software is implemented for use.

IMPAIRMENT LOSS, if any, is recognised wherever the carrying amount of fixed assets of a cash generating unit exceeds its recoverable amount i.e. net selling price or value in use, whichever is higher.

1.4 DEPRECIATION (including amortisation) on fixed assets including those utilised in RESEARCH AND DEVELOPMENT (R&D) activities, is provided on straight-line basis at rates which are in conformity with the requirement of the Companies Act, 1956. Computer Software is amortised on straight line basis over its estimated useful life of five years.

1.5 REVENUE is recognised on completion of sale of goods, rendering of services and / or use of the Company''s resources by third parties. Revenue on Construction Contracts is recognised on Percentage of Completion Method with reference to stage of completion of contract activity. The stage of completion of a contract is determined as the proportion that contract costs incurred for work performed bear to the estimated total contract costs. However, provisions are made for the entire loss on a contract irrespective of the amount of work done.

1.6 REVENUE expenditure on Research and Development is expensed in the period it is incurred.

1.7 BORROWING COST attributable to the acquisition and construction of qualifying assets are added to the cost up to the date when such assets are ready for their intended use. Other borrowing costs are recognised as expense in the period in which these are incurred.

1.8 INVENTORIES are valued at cost and net realisable value whichever is lower. The costs are, in general, ascertained under weighted average system on the basis of rates per unit of measurement determined after recording receipts for individual items of inventories.

1.9 TRANSACTION IN FOREIGN CURRENCY are recorded at exchange rates prevailing on the date of transaction. Monetary items denominated in foreign currency are restated at the exchange rate prevailing on the Balance Sheet date. Foreign currency non monetary items carried in terms of historical cost are reported using the exchange rate on the date of transactions. Exchange differences arising on settlement of transactions and / or restatements are dealt with in the Statement of Profit and Loss.

1.10 EMPLOYEE BENEFITS :

(i) Short - term Employee Benefits :

The undiscounted amount of short - term Employee Benefits expected to be paid in exchange for the services rendered by employees is recognised during the period when the employee renders the service.

(ii) Post Employment Benefit plans :

Contributions under Defined Contribution plans payable in keeping with the related schemes are recognised as expense for the year.

For Defined Benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each Balance Sheet date . Actuarial gains and losses are recognised in full in the Statement of Profit and Loss for the period in which they occur , past service cost is recognised immediately to the extent that the benefits are already vested , and otherwise is amortised on a straight - line basis over the average period until the benefits become vested .The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost , and as reduced by the fair value of plan assets . Any assets resulting from this calculations is limited to past service cost , plus the present value of available refunds and reductions in future contributions to the scheme.

(iii) Other Long - term Employee Benefits ( unfunded ) :

The cost of providing long - term employee benefits (namely compensated absences) is determined using projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses and past service cost are recognised immediately in the Statement of Profit and Loss for the period in which they occur. Other long term employee benefit obligation recognised in the Balance Sheet represents the present value of related obligation.

1.11 LEASES

For assets acquired under Operating Lease, rentals payable are charged to Statement of Profit and Loss. Assets acquired under Finance Lease are capitalised at lower of the Fair value and present value of Minimum Lease Payments.

1.12 CURRENT TAX is determined as the amount of tax payable in respect of taxable income for the period based on applicable tax rates and laws. DEFERRED TAX is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and is measured using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are reviewed at each Balance Sheet date to re-assess realisation.

1.13 PROVISION is recognised when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Disclosure for CONTINGENT LIABILITY is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. No provision is recognised or disclosure for contingent liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote.


Mar 31, 2010

The financial statements are prepared to comply in all material aspects within all the applicable accounting principles in India, the applicable Accounting Standards notified under section 211(3C) of the Companies Act, 1956 and relevant provision of the Company Act, 1956.

(a) FIXED ASSETS (comprising both tangible and intangible items) are stated at cost of acquisition and subsequent improvement thereto including taxes, duties, freight and other incidental expenses related to acquisition and installation. The cost of machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are allocated over the useful life of the related asset. Pre-operating expenses for major projects are also capitalised, where appropriate.

(b) DEPRECIATION (including amortisation) on fixed assets including those utilised in RESEARCH AND DEVELOPMENT (R&D) activities, is provided on straight-line basis at rates which are in conformity with the requirement of the Companies Act, 1956. Computer Software which is amortised on straight line basis over its estimated useful life of five years.

(c) IMPAIRMENT LOSS is recognised wherever the carrying amount of the fixed assets exceeds the recoverable amount i.e. the higher of the assets net selling price and value in use.

(d) REVENUE is recognised on completion of sale of goods, rendering of services and / or use of the Companys resources by third parties. Revenue on Construction Contracts is recognised on Percentage of Completion Method with reference to stage of completion of contract activity. The stage of completion of a contract is determined as the proportion that contract costs incurred for work performed bear to the estimated total contract costs. However, provisions are made for the entire loss on a contract irrespective of the amount of work done.

(e) REVENUE expenditure on Research and Development is expensed in the period it is incurred.

(f) BORROWING COST attributable to the acquisition and construction of qualifying assets are added to the cost up to the date when such assets are ready for their intended use. Other borrowing costs are recognised as expense in the period in which these are incurred.

(g) INVENTORIES are valued at cost or net realisable value whichever is lower. The costs are, in general, ascertained under weighted average system on the basis of rates per unit of measurement determined after recording receipts for individual items of inventories.

(h) INVESTMENTS

Long term Investment are stated at cost less provision, if any for diminution which is other than temporary.

(i) TRANSACTION IN FOREIGN CURRENCY are recorded at exchange rates prevailing on the date of

transaction. Monetary items denominated in foreign currency are restated at the exchange rate prevailing on the Balance Sheet date. Foreign currency non monetary items carried in terms of historical cost are reported using the exchange rate on the date of transactions. Exchange differences arising on settlement of transactions and / or restatements are dealt with in the Profit and Loss Account.

(j) EMPLOYEE BENEFITS :

(i) Short - term Employee Benefits :

The undiscounted amount of short - term Employee Benefits expected to be paid in exchange for the services rendered by employees is recognised during the period when the employee renders the service.

(ii) Post Employment Benefit plans :

Contributions under Defined Contribution plans payable in keeping with the related schemes are recognised as expense for the year.

For Defined Benefit plans, the cost of providing benefits is determined using the projected Unit Credit Method, with actuarial valuations being carried out at each Balance Sheet date . Actuarial gains and losses are recognised in full in the profit and loss Account for the period in which they occur, past service cost is recognised immediately to the extent that the benefits are already vested , and otherwise is amortised on a straight - line basis over the average period until the benefits become vested .The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost , and as reduced by the fair value of plan assets . Any assets resulting from this calculations is limited to past service cost , plus the present value of available refunds and reductions in future contributions to the scheme.

(iii) Other Long - term Employee Benefits ( unfunded ) :

The cost of providing long - term employee benefits is determined using projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses and past service cost are recognised immediately in the Profit and Loss Account for the period in which they occur . Other long term employee benefit obligation recognised in the Balance Sheet represents the present value of related obligation.

18. NOTES ON ACCOUNTS (Contd.) (Rupees in Thousands)

(k) LEASES

For assets acquired under Operating Lease, rentals payable are charged to profit and loss account. Assets acquired under Finance Lease are capitalised at lower of the Fair value and present value of Minimum Lease Payments.

(l) CURRENT TAX is determined as the amount of tax payable in respect of taxable income for the period based on

applicable tax rates and laws. DEFERRED TAX is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and is measured using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are reviewed at each Balance Sheet date to re-assess realisation. FRINGE BENEFIT TAX is accounted for based on the estimated value of fringe benefits for the period as per the related provisions of the Income-tax Act.

(m) PROVISION is recognised when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Disclosure for CONTINGENT LIABILITY is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. No provision is recognised or disclosure for contingent liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote.

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