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Atul Ltd | Annual Report 2012-13
iii) Service income is recognised, net of service tax, when the related services are rendered.
b) Other Revenues:
i) Eligible export incentives are recognised in the year in which the conditions precedent is met and
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ii) Lease rental income is recognised on accrual basis.
iii) Dividend income is accounted for in the year in which the right to receive the same is established.
iv) Interest income is recognised on a time proportion basis taking into account the amount
outstanding and the rate applicable.
4.11 Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving a substantial degree of estimation in measurement are recognised when there is a
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Provision is not discounted to its present value and is determined based on the best estimate required to
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4.12 Research and Development Expenditure:
Research and Development expenditure is charged to revenue under the natural heads of account in the
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4.13 Employee Benefits:
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Contribution paid | payable by the Company during the period to Provident Fund, Super Annuation
Fund, Employees’ State Insurance Corporation, and Labour Welfare Fund are recognised in the
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Gratuity:
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valuation by an actuary appointed for the purpose as per projected unit credit method, at the end
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in turn invest in eligible securities to meet the liability as and when it accrues for payment in future.
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Long-term leave encashment:
Long-term leave encashment is provided for on the basis of an actuarial valuation carried out at the
end of the year on the projected unit credit method. Actuarial gains | losses are immediately taken to
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Provident Fund:
Provident Fund for certain eligible employees is managed by the Company through the ‘Atul
Products Ltd - Ankleshwar Division Employees Provident Fund Trust’ in line with Provident Fund and
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Fund Authorities. The contribution by the employer and employee together with the interest
accumulated thereon are payable to employees at the time of their separation from the Company
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES
(contd)
Notes
to Consolidated financial statements