Atul Ltd 2017-18

Atul Ltd | Annual Report 2017-18 ( ` cr) Note 3 Investment properties As at March 31, 2018 As at March 31, 2017 Land – freehold Gross carrying amount 3.22 3.22 Net carrying amount 3.22 3.22 a) Amount recognised in the Consolidated Statement of Profit and Loss for investment properties The Group has classified parcels of freehold land held for a currently undeterminable future use as investment properties. There are no amounts pertaining to these investment properties recognised in the Consolidated Statement of Profit and Loss, since the Group does not receive any rental income, incur any depreciation or other operating expenses. b) The Group does not have any contractual obligations to purchase, construct or develop for maintenance or enhancements of investment property. c) Fair value: ( ` cr) Particulars As at March 31, 2018 As at March 31, 2017 Investment properties 141.00 134.00 141.00 134.00 Estimation of fair value The Group obtains valuations from independent valuer for its investment properties at least annually. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the valuer considers information from a variety of sources including current prices in an active market for investment properties of different nature or recent prices of similar investment properties in less active markets, adjusted to reflect those differences. All fair value estimates for investment properties are included in level 3. ( ` cr) Note 4 (a) Intangible assets Computer software Goodwill Gross carrying amount As at March 31, 2016 0.22 – Acquisition of subsidiary company – 23.75 As at March 31, 2017 0.22 23.75 As at March 31, 2018 0.22 23.75 Amortisation Up to March 31, 2016 0.10 – Amortisation charged for the year 0.10 – Up to March 31, 2017 0.20 – Amortisation charged for the year 0.01 – Up to March 31, 2018 0.21 – Net carrying amount As at March 31, 2017 0.02 23.75 As at March 31, 2018 0.01 23.75 Significant estimate - Impairment of Goodwill For the purpose of impairment testing, Goodwill is allocated to a cash generating unit, representing the lowest level within the Group at which Goodwill is monitored for internal Management purposes and which is not higher than the operating segment of the Group. The Goodwill of ` 23.75 cr pertains to the control acquisition of Amal Ltd. The recoverable amount of the cash generating unit has been determined based on the higher of fair value less costs of disposal and its value in use. The fair value less costs of disposal has been determined based on closing quoted share price of Amal Ltd on an active market as on March 31, 2018. Notes to the Consolidated Financial Statements