Atul Ltd Annual Report 2016-17

Atul Ltd | Annual Report 2016-17

Note 29.18 First time adoption of Ind AS

Transition to Ind AS

These are the first Consolidated Financial Statements of the Group prepared in accordance with Ind AS.

The Accounting Policies set out in Note 1 have been applied in preparing the Consolidated Financial Statements for the year

ended March 31, 2017, the comparative information presented in these Consolidated Financial Statements for the year

ended March 31, 2016 and in the preparation of an opening Ind AS Balance Sheet at April 01, 2015 (the date of transition

of the Group). In preparing its opening Ind AS Balance Sheet, the Group has adjusted the amounts reported previously in

the Consolidated Financial Statements prepared in accordance with the Accounting Standards notified under Companies

(Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (IGAAP). An explanation of how

the transition from IGAAP to Ind AS has affected the financial position, financial performance and cash flows of the Group is

set out in the following tables and notes add:

A) Exemptions and exceptions availed

In preparing these Ind AS Financial Statements, the Group has availed certain exemptions and exceptions in accordance

with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in

the Consolidated Financial Statements as at the transition date under Ind AS and IGAAP have been recognised directly

in equity (retained earnings or another appropriate category of equity). This Note explains the adjustments made by the

Group in restating its IGAAP Consolidated Financial Statements, including the Balance Sheet as at April 01, 2015 and

the Consolidated Financial Statements as at and for the year ended March 31, 2016.

a) Ind AS optional exemptions

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition

from previous IGAAP to Ind AS.

Business combinations

Ind AS 103 ‘Business Combinations’ has not been applied to acquisitions of subsidiary companies or of

interests in associate company and joint venture company that occurred before April 01, 2015.

The carrying amounts of assets and liabilities in accordance with IGAAP is considered as their deemed cost

at the date of acquisition. After the date of the acquisition, measurement is in accordance with Ind AS.

The carrying amount of Goodwill in the opening Ind AS Balance Sheet is its carrying amount in accordance

with the IGAAP.

ii) Cumulative translation differences

Ind AS 101 permits cumulative translation gains and losses to be reset to zero at the transition date.

This provides relief from determining cumulative currency translation differences in accordance with Ind AS 21

from the date a subsidiary or equity method investee was formed or acquired.

The Group elected to reset all cumulative translation gains and losses to zero by transferring it to opening

retained earnings at its transition date.

iii) Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property,

plant and equipment as recognised in the Financial Statements as at the date of transition to Ind AS, measured

under IGAAP and use that as its deemed cost as at the date of transition after making necessary adjustments

for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38

‘Intangible assets’ and Investment properties covered by Ind AS 40 'Investment properties'. Accordingly, the

Group has elected to measure all of its property, plant and equipment, intangible assets and investment

properties under IGAAP carrying value.

iv) Designation of previously recognised financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts

and circumstances at the date of transition to Ind AS.

The Group has elected to apply this exemption for its investment in Equity shares of companies other than

those stated in (v) below.

Notes

to the Consolidated Financial Statements