Atul-2012-13

Atul Ltd | Annual Report 2012-13

Notes

to Consolidated financial statements

NOTE 1 SIGNIFICANT ACCOUNTING POLICIES

1 System of Accounting:

1.1 The Company, generally, follows the mercantile system of accounting and recognises income and

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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:

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and all of its subsidiary companies (collectively referred to as ‘the Group’), in which the Company has more

than one-half of the voting power of an enterprise or where the Company controls the composition of the

Board of Directors.

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‘Consolidated Financial Statements’, issued by the Institute of Chartered Accountants of India.

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accordance with the requirements of Accounting Standard-23 ‘Accounting for Investments in associate

companies in Consolidated Financial Statements’, issued by the Institute of Chartered Accountants of

India. (for details see Note No 27.9)

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accordance with the requirements of Accounting Standard-27 ‘Financial Reporting of Interest in Joint

Venture Company’ issued under the Companies (Accounting Standards) Rules 2006 on proportionate

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Venture on a line-by-line basis.

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line by line basis by adding together book values of the items of assets, liabilities, income and expenses,

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losses.

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transactions and other events in similar circumstances and are presented to the extent possible, in the

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2.7 Financial statement of integral foreign subsidiary companies translated into Indian rupees pursuant to

Accounting Standards-11 (revised 2003) ‘The effects of changes in foreign exchange rate’ are as follows:

2.7.1Revenues and expenses are translated into Indian rupees at average exchange rate, which is not as per

requirements of Accounting Standards-11, but having no material effect on the results of consolidated

accounts.

2.7.2Monetary items are translated into Indian rupees using the year end rate.

2.7.3Non-monetary items are translated using exchange rate at the date of transaction.

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companies is recognised as income or expense under the head ‘Exchange difference on translation of

foreign subsidiary companies.’

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means of informative disclosure and a guide to better understand the consolidated position of the Companies.

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statements,which fairly present the required disclosures.