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Background
Atul Ltd (the Company) is a public company limited by shares, incorporated and domiciled in India. Its registered office is
located at Atul House, G I Patel Marg, Ahmedabad 380 014, Gujarat, India and its principal place of business is located at Atul,
Gujarat, India.
The Company is in the business of Life Science Chemicals and Performance and Other Chemicals and caters to the needs of varied
industries such as Adhesives, Agriculture, Animal Feed, Automobile, Composite, Construction, Cosmetic, Defence, Dyestuff,
Electrical and Electronics, Flavour, Food, Footwear, Fragrance, Glass, Home Care, Horticulture, Hospitality, Paint and Coatings,
Paper, Personal Care, Pharmaceutical, Plastic, Rubber, Soap and Detergent, Sport and Leisure, Textile, Tyre and Wind Energy
across the world.
Note 1 Significant Accounting Policies
This Note provides a list of the significant Accounting Policies adopted by the Company in preparation of these Financial
Statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
a) Basis of preparation:
i)
Compliance with Ind AS:
The Financial Statements comply in all material respects with Indian Accounting Standards (Ind AS) notified under
Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other
relevant provisions of the Act as amended.
ii) Historical cost convention:
The Financial Statements have been prepared on a historical cost basis except for the following:
a) Certain financial assets and liabilities (including derivative instruments): measured at fair value
b) Defined benefit plans: plan assets measured at fair value
c) Biological assets: measured at fair value less cost to sell
iii) Recent accounting pronouncements:
Standards issued, but not yet effective:
Appendix B to Ind AS 21, ‘Foreign currency transactions and advance consideration’: On March 28, 2018, the Ministry
of Corporate Affairs (the MCA) notified the Companies (Indian Accounting Standards) Amendment Rules, 2018
containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date
of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset,
expense or income, when an entity has received or paid advance consideration in a foreign currency.
The amendment will be effective from April 01, 2018. The Company has evaluated the effect of this on the Financial
Statements and the impact is not material.
Ind AS 115, ‘Revenue from Contracts with Customers’: On March 28, 2018, the MCA notified the Ind AS 115.
The core principle of the new standard is that an entity will recognise revenue to depict the transfer of
promised goods or services to customers in an amount that reflects the consideration to which the entity expects
to be entitled in exchange for those goods or services. Further, the new standard requires enhanced disclosures
about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers
of the Company.
The standard permits two possible methods of transaction:
a) Retrospective approach – Under this approach the standard will be applied retrospectively to each prior reporting
period presented in accordance with Ind AS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’.
b) Retrospectively with cumulative effect of initially applying the standard recognised at the date of initial application
(Cumulative catch–up approach)
The effective date of adoption of Ind AS 115 is financial period beginning on or after April 01, 2018.
The Company will adopt the standard on April 01, 2018 by using the cumulative catch-up transition method and
accordingly, comparatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. No
material impact of Ind AS 115 is expected.
Notes
to the Financial Statements