Atul Ltd 2008-09

Schedules forming part of the Consolidated Account s 18 Companies considered in financial statements are: Name of company Country of Extent of incorporation holding A Ameer Trading Corporation Ltd India 100% B Atul Americas Inc America 100% C Atul Europe Ltd England 100% D Atul Deutschland GmbH Germany 100% E Atul International Trading (Shanghai) Co Ltd China 100% 19 Previous year's figures have been regrouped wherever necessary. 20 Figures less than Rs500 has been shown at actual in bracket as the figures have been rounded off to nearest thousand. As per our attached report of even date For and on behalf of the Board of Directors For & on behalf of Dalal & Shah G S Patel Sunil S Lalbhai Chartered Accountants B S Mehta Chairman and Managing Director H S Shah Ashish S Dalal T R Gopi Kannan S M Datta Partner President, Finance and B N Mohanan Samveg A Lalbhai Membership No 033596 Company Secretary Directors Managing Director Mumbai Mumbai June 05, 2009 May 29, 2009 SCHEDULE 16 NOTES FORMING PART OF THE ACCOUNTS (Contd.) The unrealised loss consequent to foreign currency fluctuations in respect of these effective hedging instruments though not recognised now will be ultimately set off in the Profit and Loss Account when the underlying transaction arises when it will be possible to precisely know the impact. Considering the above facts and due to material uncertainty arising from future events mentioned in the range forward contracts and rate over the period of three years, the management is of the view that it is not "known loss" and it is not a prudent practice to deliberately overstate liabilities or expenses because, if such notional losses are provided for, the reliability and quality of the financial statement will be vitiated and therefore no provision for the liability and MTM loss of Rs5,484.09 lacs on account of such range forward contracts has been made in the books as at March 31, 2009. In the view of the management this will give more reliable financial statements without unrepresentative volatility in the Profit and Loss Account (b) Rs0.97 lacs (realised loss), Rs18.05 lacs (realised gain) and Rs13.47 lacs (unrealised loss) on interest SWAP is included in interest paid on loan. Rs63.81 lacs (realised loss), Rs1.70 lacs (realised gain) and Rs461.32 lacs (unrealised loss) on currency SWAP (principal) are included in exchange rate difference. Provision on forward contract transactions has been recorded as per Accounting Standard - 11 on "The Effects of Changes in Foreign Exchange Rates (Revised 2003)". 15 The Company has revalued (i) Leasehold land and (ii) commercial land & building at Ahmedabad, Mumbai and Delhi as at March 31, 2008 at fair market value as determined by an independent valuer appointed for the purpose. Resultant increase in book value amounting to Rs10,747.32 lacs has been transferred to revaluation reserve. 16 Significant accounting policies followed by the Company are as stated in the statement annexed to this Schedule. 17 Included under loan & advances is an amount of Rs2,128.89 lacs given to an associate company. The said company is registered under BIFR in the process of implementing its revival plan. All their assets have been assigned exclusively in favour of the Company as a security for this loan. 108