Corporate Overview Statutory Reports Financial Statements 121 Notes to the Standalone Financial Statements Background Atul Ltd (the Company) is a public company limited by shares, incorporated and domiciled in India. Its shares are listed on two stock exchanges in India; the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The registered office is located at Atul House, G I Patel Marg, Ahmedabad 380 014, Gujarat, India, and the principal places of manufacturing are located at Atul, Kharod, Ankleshwar, Gujarat, and Tarapur, Maharashtra, India. The Company is mainly in the business of Life Science Chemicals and Performance and Other Chemicals and caters to the needs of varied industries across the world such as Adhesives, Agriculture, Animal Feed, Automobile, Composites, Construction, Cosmetic, Defence, Dyestuff, Electrical and Electronics, Flavour, Food, Footwear, Fragrance, Glass, Home Care, Horticulture, Hospitality, Paint and Coatings, Paper, Personal Care, Pharmaceutical, Plastic, Polymer, Rubber, Soap and Detergent, Sport and Leisure, Textile, Tyre and Wind Energy. Note 1 Material accounting policies This Note provides a list of the material accounting policies adopted by the Company in preparation of these Standalone Financial Statements. These policies have been consistently applied to all the years presented, unless otherwise stated. a) Statement of compliance The Standalone Financial Statements comply in all material respects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act ), read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, and other relevant provisions of the Act, as amended. b) Basis of preparation i) Historical cost convention The Standalone Financial Statements have been prepared on a historical cost basis except for the following: • Certain financial assets and liabilities including derivative instruments): measured at fair value • Defined benefit plans: plan assets measured at fair value • Biological assets: measured at fair value less cost to sell ii) The Standalone Financial Statements have been prepared on an accrual and going concern basis. iii) The accounting policies are applied consistently to all the periods presented in the Standalone Financial Statements. All assets and liabilities have been classified as current or non-current as per the normal operating cycle of the Company and other criteria as set out in Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the 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 or noncurrent classification of assets and liabilities. iv) Recent accounting pronouncements: T he Ministry of Corporate Affairs (MCA) notifies new standards or amendments to the existing standards. There is no such notification which will be applicable from April 01, 2024. c) Foreign currency transactions i) Functional and presentation currency I tems included in the Standalone Financial Statements of the Company are measured using the currency of the primary economic environment in which the Company operates (‘functional currency’). The Standalone Financial Statements of the Company are presented in Indian currency (`), which is also the functional currency of the Company. ii) Transactions and balances F oreign currency transactions are translated into functional currency using the exchange rates at the dates of the transactions. Foreign exchange gain | (loss) resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year-end exchange rates are generally recognised in the Standalone Statement of Profit and Loss, except that they are deferred in other equity if they relate to qualifying cash flow hedges. Foreign exchange differences regarded as an adjustment to borrowing
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