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Schedules
forming part of the Consolidated accounts
ANNEXURE REFERRED TO IN NOTE 13 IN SCHEDULE 16 OF THE ACCOUNTS
FOR THE YEAR ENDED MARCH 31, 2011.
Statement of significant accounting policies:
1. System of Accounting:
1.1 The Company, generally, follows the mercantile system of accounting and recognises income and
expenditure on an accrual basis except those with significant uncertainties.
1.2 The consolidated financial statements are based on historical cost. These costs are not adjusted to reflect
the impact of the changing value in the purchasing power of money except in case of freehold land,
certain leasehold land, building premises and plant and machinery which have been revalued and resultant
surplus is kept credited under revaluation reserves.
2. Principles of Consolidation:
2.1 The consolidated financial statements relate to 'Atul Ltd' (Parent Company) and 'Ameer Trading
Corporation Ltd India,' 'Atul Americas Inc' USA 'Atul Europe Ltd' UK 'Atul Deutschland GmbH Germany',
'Atul International Trading (Shanghai) Co Ltd' China (wholly owned Subsidiary Companies) and
Atul Rajasthan Date Palms Ltd India, where the group holds 74% shareholding.
2.2 The consolidated financial statements have been prepared in accordance with Accounting Standard 21
(AS - 21) "Consolidated Financial Statements" issued by the Institute of Chartered Accountants of India.
2.3 The investments in associates are accounted in these consolidated financial statements in accordance
with the requirements of Accounting Standard 23 (AS - 23) - 'Accounting for Investments in Associates in
Consolidated Financial Statements', issued by the Institute of Chartered Accountants of India. (for details
refer note no 9(b) in Schedule 16 to the Accounts)
2.4 The financial statements of the parent company and its subsidiary companies have been combined on a line
by line basis by adding together book values of the items of assets, liabilities, income and expenses, after fully
eliminating intra-group balances and intra-group transaction resulting in unrealised profits or losses.
2.5 The consolidated financial statements are prepared by adopting uniform accounting policies for like
transactions and other events in similar circumstances and are presented to the extent possible, in the
same manner as the Parent Company' s separate financial statements.
2.6 Financial statement of integral foreign subsidiaries translated into Indian rupees pursuant to Accounting
Standards 11 (AS - 11) (revised 2003) 'The effects of changes in foreign currency rate' are as follows:
2.6.1 Revenues and expenses are translated into rupees at the average exchange rate, which is not as
per requirements of AS - 11, but having no material effect on the results of consolidated accounts.
2.6.2 Monetary items are translated into Indian rupees using the year end rate.
2.6.3 Non-monetary items are translated using exchange rate at the date of transaction.
2.6.4 The net exchange difference resulting from the translation of items in financial statement of the
subsidiaries is recognised as income or expense under the head "Exchange difference on translation
of foreign subsidiaries."
3. Other Significant Accounting Policies:
3.1 These are set out in the notes to accounts under "Statement of Accounting Policies" of the financial
statements of the parent company and its subsidiaries.
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