Atul AR 2018-19 Cover to Cover high res

The useful lives have been determined based on technical evaluation done by the Management experts which are

ēĿljljĚƑĚŠƥ ljƑūŞ ƥĺĚ ƭƙĚljƭŕ ŕĿljĚ ƎƑĚƙČƑĿċĚē ĿŠ ¡îƑƥ ūlj ¬ČĺĚēƭŕĚ TT ƥū ƥĺĚ Čƥȡ ĿŠ ūƑēĚƑ ƥū ƑĚǜĚČƥ ƥĺĚ îČƥƭîŕ ƭƙîijĚ ūlj ƥĺĚ îƙƙĚƥƙȦ

The residual values are not more than 5% of the original cost of the asset. The residual values, useful lives and method of

depreciation of property, plant and equipment are reviewed annually and adjusted prospectively, if appropriate.

gîŠē îČČūƭŠƥĚē ƭŠēĚƑ ǛŠîŠČĚ ŕĚîƙĚ Ŀƙ îŞūƑƥĿƙĚē ūŠ î ƙƥƑîĿijĺƥȹŕĿŠĚ ċîƙĿƙ ūǄĚƑ ƥĺĚ ƎƑĿŞîƑǋ ƎĚƑĿūē ūlj ŕĚîƙĚȦ

The carrying amount of an asset is written down immediately to its recoverable amount if the carrying amount of the asset

is greater than its estimated recoverable amount.

ƙƙĚƥƙ ĺĚŕē ƭŠēĚƑ ǛŠîŠČĚ ŕĚîƙĚƙ îƑĚ ēĚƎƑĚČĿîƥĚē ūǄĚƑ ƥĺĚĿƑ ĚǊƎĚČƥĚē ƭƙĚljƭŕ ŕĿǄĚƙ ūŠ ƥĺĚ ƙîŞĚ ċîƙĿƙ îƙ ūǅŠĚē îƙƙĚƥƙȦ

However, when there is no reasonable certainty that ownership will be obtained by the end of the lease term, assets are

depreciated over the shorter of the lease term and their useful lives.

h) Intangible assets:

Computer software includes enterprise resource planning project and other cost relating to such software which provides

ƙĿijŠĿǛČîŠƥ ljƭƥƭƑĚ ĚČūŠūŞĿČ ċĚŠĚǛƥƙȦ ¹ĺĚƙĚ Čūƙƥƙ ČūŞƎƑĿƙĚ ŕĿČĚŠƙĚ ljĚĚƙ îŠē Čūƙƥ ūlj ƙǋƙƥĚŞ ĿŠƥĚijƑîƥĿūŠ ƙĚƑǄĿČĚƙȦ

Development expenditure qualifying as an intangible asset, if any, is capitalised, to be amortised over the economic life

of the product | patent.

Computer software cost is amortised over a period of three years using the straight-line method.

i) Investment properties:

Property that is held for long-term rental yields or for capital appreciation or both, and that is not in use by the Company,

Ŀƙ ČŕîƙƙĿǛĚē îƙ ĿŠǄĚƙƥŞĚŠƥ ƎƑūƎĚƑƥǋȦ gîŠē ĺĚŕē ljūƑ î ČƭƑƑĚŠƥŕǋ ƭŠēĚƥĚƑŞĿŠĚē ljƭƥƭƑĚ ƭƙĚ Ŀƙ îŕƙū ČŕîƙƙĿǛĚē îƙ îŠ ĿŠǄĚƙƥŞĚŠƥ

property. Investment property is measured at its acquisition cost, including related transaction costs and where applicable,

borrowing costs.

j) Impairment of assets:

The carrying amount of assets are reviewed at each Balance Sheet date to assess if there is any indication of impairment

based on internal | external factors. An impairment loss on such assessment is recognised wherever the carrying amount

of an asset exceeds its recoverable amount. The recoverable amount of the assets is net selling price or value in use,

ǅĺĿČĺĚǄĚƑ Ŀƙ ĺĿijĺĚƑȦ ØĺĿŕĚ îƙƙĚƙƙĿŠij ǄîŕƭĚ ĿŠ ƭƙĚȡ ƥĺĚ ĚƙƥĿŞîƥĚē ljƭƥƭƑĚ Čîƙĺ ǜūǅƙ îƑĚ ēĿƙČūƭŠƥĚē ƥū ƥĺĚ ƎƑĚƙĚŠƥ ǄîŕƭĚ ċǋ

using weighted average cost of capital. A previously recognised impairment loss is further provided or reversed depending

on changes in the circumstances and to the extent that carrying amount of the assets does not exceed the carrying

amount that will be determined if no impairment loss had previously been recognised.

k) Cash and cash equivalents:

Cash and cash equivalents include cash in hand, demand deposits with bank and other short-term (three months or less

from the date of acquisition), highly liquid investments that are readily convertible into cash and which are subject to an

ĿŠƙĿijŠĿǛČîŠƥ ƑĿƙŒ ūlj ČĺîŠijĚƙ ĿŠ ǄîŕƭĚȦ

l) Trade receivables:

Trade receivables are recognised when the right to consideration becomes unconditional. These assets are held at

amortised cost, using the effective interest rate (EIR) method where applicable, less provision for impairment based on

expected credit loss.

m) Trade and other payables:

¹ĺĚƙĚ îŞūƭŠƥƙ ƑĚƎƑĚƙĚŠƥ ŕĿîċĿŕĿƥĿĚƙ ljūƑ ijūūēƙ îŠē ƙĚƑǄĿČĚƙ ƎƑūǄĿēĚē ƥū ƥĺĚ ūŞƎîŠǋ ƎƑĿūƑ ƥū ƥĺĚ ĚŠē ūlj ǛŠîŠČĿîŕ ǋĚîƑ

which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12

months from the reporting date. They are recognised initially at their fair value and subsequently measured at amortised

cost using the EIR method.

n) Inventories:

Inventories (other than harvested product of biological assets) are stated at cost or net realisable value whichever is lower.

Cost is determined on moving weighted average basis.

Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs

necessary to make the sale.

Corporate Overview 01-22

Statutory Reports 23-105

Financial Statements 107-250

126

Atul Ltd | Annual Report 2018-19