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to sell and from a change in fair value less costs to sell of biological assets are included in Statement of Profit and Loss for
the period in which it arises.
Transition to Ind AS:
On transition to Ind AS, the Group has elected to continue with the carrying value of biological assets (classified as
property, plant and equipment) recognised as at April 01, 2015 measured as per the IGAAP as the deemed cost of such
biological assets.
x) Provisions and contingent liabilities:
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events,
it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
These are reviewed at each year end and reflect the best current estimate. Provisions are not recognised for future
operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined
by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect
to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of best estimate of the Management of the expenditure required to settle the
present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax
rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase
in the provision due to the passage of time is recognised as interest expense.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the Group or a present obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
y) Employee benefits:
Short-term employee benefits:
All employee benefits payable within 12 months of service such as salaries, wages, bonus, ex-gratia, medical benefits etc.
are recognised in the year in which the employees render the related service and are presented as current employee benefit
obligations within the Balance Sheet. Termination benefits are recognised as an expense as and when incurred.
Short-term leave encashment is provided at undiscounted amount during the accounting period based on service rendered
by employees.
Other long-term employee benefits:
The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service. They are therefore measured as the present value of expected
future payments to be made in respect of services provided by employees up to the end of the reporting period using the
projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that
have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments
and changes in actuarial assumptions are recognised in profit or loss.
The obligations are presented as current liabilities in the Balance Sheet if the entity does not have an unconditional right to
defer settlement for at least 12 months after the reporting period, regardless of when the actual settlement is expected
to occur.
Defined contribution plan:
Contributions to defined contribution schemes such as contribution to Provident Fund, Superannuation Fund, Employees’
State Insurance Corporation, National Pension Scheme and Labours Welfare Fund are charged as an expense to the
Statement of Profit and Loss based on the amount of contribution required to be made as and when services are rendered
by the employees. The above benefits are classified as Defined Contribution Schemes as the Group has no further defined
obligations beyond the monthly contributions.
Provident Fund for certain eligible employees is managed by the Group through the ‘Atul Products Ltd - Ankleshwar Division
Employees Provident Fund Trust’ in line with Provident Fund and Miscellaneous Provisions Act, 1952. The plan guarantees
interest at the rate notified by the Provident Fund authorities. The contributions by the employer and employees together
with the interest accumulated thereon are payable to employees at the time of their retirement or separation from the
Group, whichever is earlier. The benefits vest immediately on rendering of the services by the employee. Any shortfall in the
value of assets over the defined benefit obligation is recognised as a liability, with a corresponding charge to the Statement
of Profit and Loss.
Note 1 Significant Accounting Policies
(continued)
Notes
to the Consolidated Financial Statements