213 / 236
211
(
`
cr)
Reconciliation to carrying amounts
Rudolf Atul
Chemicals Ltd
Amal Ltd
As at
March 31,
2017
As at
March 31,
2016
As at
March 31,
2017
As at
March 31,
2016
Opening net assets
28.61
21.09
–
–
Profit for the year
9.33
8.93
–
–
Other Comprehensive Income
(0.03)
–
–
–
Dividends paid
(17.92)
(1.41)
–
–
Closing net assets
19.99
28.61
–
–
Share of Group in %
50% 50% 36.74% 36.74%
Share of Group in
`
10.00
14.31
–
–
Carrying amount
10.00
14.31
Summarised Statement of Profit and Loss
(
`
cr)
Reconciliation to carrying amounts
Rudolf Atul
Chemicals Ltd
Amal Ltd
As at
March 31,
2017
As at
March 31,
2016
As at
March 31,
2017
As at
March 31,
2016
Revenue
73.11
67.14
–
25.89
Interest income
0.93
–
*
*
Depreciation and amortisation
0.32
0.26
*
*
Interest expense
0.12
0.10
*
*
Income tax expense
5.11
4.80
*
*
Profit for the year
9.33
8.93
–
1.35
Other Comprehensive Income
(0.03)
–
–
0.01
Total Comprehensive Income
9.30
8.93
–
1.36
Dividends received
8.96
0.71
–
–
* These indicate disclosures not required for investment in associate company
Note 29.17 Business combination
Acquisition of control during the year
Amal Ltd was declared sick by the Board for Industrial and Financial Reconstruction (BIFR) on July 20, 2006 and the BIFR, vide
its order dated July 16, 2009, sanctioned the revival scheme for Amal Ltd.
In accordance with Ind AS 101
'
First-time Adoption of Indian Accounting Standards
'
the Group has elected to apply Ind AS 103
‘Business Combinations’ for accounting prospectively from April 01, 2015. IGAAP balances and accounting for above business
combination entered into before that date, including Goodwill, have been carried forward.
The regulatory powers of BIFR under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) prevented Atul Ltd
to use its unilateral defacto control over Amal Ltd. Further, BIFR extended significant restrictions on power of Atul Ltd by
requiring prior approval over all transfers such as cash dividends, loan or advance repayments to any entity. Under Ind AS
110, substantive rights held by other parties that restrict a discretion of decisionmaker denote absence of unilateral control.
However, Amal Ltd was assessed as an associate company under Ind AS due to continued ability of Atul Ltd to participate in
the financial and operating policy and decision making of Amal Ltd but not in a manner denoting control.
Notes
to the Consolidated Financial Statements