Atul Annual report 2017-18

Atul Ltd | Annual Report 2017-18

Statement of Profit and Loss based on the amount of contribution required to be made as and when services are rendered

by the employees. The above benefits are classified as Defined Contribution Schemes as the Company has no further

defined obligations beyond the monthly contributions.

Short-term employee benefits:

All employee benefits payable within 12 months of service such as salaries, wages, bonus, ex-gratia, medical benefits etc.

are recognised in the year in which the employees render the related service and are presented as current employee benefit

obligations. Termination benefits are recognised as an expense as and when incurred.

Short-term employee benefits are provided at undiscounted amount during the accounting period based on service

rendered by employees. Compensation payable under Voluntary Retirement Scheme is being charged to the Statement of

Profit and Loss in the year of settlement.

Other long-term employee benefits:

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the

period in which the employees render the related service. They are therefore measured as the present value of expected

future payments to be made in respect of services provided by employees up to the end of the reporting period using the

projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that

have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments

and changes in actuarial assumptions are recognised in profit or loss.

The obligations are presented as current liabilities in the Balance Sheet if the Company does not have an unconditional right

to defer settlement for at least 12 months after the reporting period, regardless of when the actual settlement is expected

to occur.

w) Research and Development expenditure:

Research and Development expenditure is charged to revenue under the natural heads of account in the year in which

it is incurred. Research and Development expenditure on property, plant and equipment is treated in the same way as

expenditure on other property, plant and equipment.

x) Earnings per share:

Earnings per share (EPS) is calculated by dividing the net profit or loss for the period attributable to Equity Shareholders by

the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the EPS

is the net profit for the period and any attributable tax thereto for the period.

y) Contributed equity:

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,

from the proceeds.

Critical estimates and judgements

Preparation of the Financial Statements require use of accounting estimates which, by definition, will seldom equal the actual

results. This Note provides an overview of the areas that involved a higher degree of judgements or complexity, and of items

which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those

originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together

with information about the basis of calculation for each affected line item in the Financial Statements.

The areas involving critical estimates or judgements are:

Estimation of useful life of tangible assets: Note 1(g)

ii) Estimation of defined benefit obligation: Note 27.6

iii) Fair value measurements: Note 27.7

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including

expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under

the circumstances.

Note 1 Significant Accounting Policies

(continued)

Notes

to the Financial Statements