Atul AR 2018-19 Cover to Cover high res

ii) Associate companies

ƙƙūČĿîƥĚ ČūŞƎîŠĿĚƙ îƑĚ îŕŕ ĚŠƥĿƥĿĚƙ ūǄĚƑ ǅĺĿČĺ ƥĺĚ HƑūƭƎ ĺîƙ ƙĿijŠĿǛČîŠƥ ĿŠǜƭĚŠČĚȡ ċƭƥ Šūƥ ČūŠƥƑūŕ ūƑ ŏūĿŠƥ ČūŠƥƑūŕȦ

This is generally the case where the Group holds between 20% and 50% of the voting rights. Investments in associate

companies are accounted for using the equity method of accounting {see (iv) below}.

iii) Joint arrangements

ÀŠēĚƑ TŠē ¬ ǧǧǧ ɃcūĿŠƥ ƑƑîŠijĚŞĚŠƥƙɄȡ ĿŠǄĚƙƥŞĚŠƥƙ ĿŠ ŏūĿŠƥ îƑƑîŠijĚŞĚŠƥƙ îƑĚ ČŕîƙƙĿǛĚē îƙ ĚĿƥĺĚƑ ŏūĿŠƥ ūƎĚƑîƥĿūŠƙ ūƑ

ŏūĿŠƥ ǄĚŠƥƭƑĚƙȦ ¹ĺĚ ČŕîƙƙĿǛČîƥĿūŠ ēĚƎĚŠēƙ ūŠ ƥĺĚ ČūŠƥƑîČƥƭîŕ ƑĿijĺƥƙ îŠē ūċŕĿijîƥĿūŠƙ ūlj ĚîČĺ ĿŠǄĚƙƥūƑȡ ƑîƥĺĚƑ ƥĺîŠ ƥĺĚ

ŕĚijîŕ ƙƥƑƭČƥƭƑĚ ūlj ƥĺĚ ŏūĿŠƥ îƑƑîŠijĚŞĚŠƥȦ ¹ĺĚ HƑūƭƎ ĺîƙ ĿŠƥĚƑĚƙƥ ĿŠ î ŏūĿŠƥ ǄĚŠƥƭƑĚ ČūŞƎîŠǋ îŠē î ŏūĿŠƥ ūƎĚƑîƥĿūŠȦ

Joint venture company

TŠƥĚƑĚƙƥ ĿŠ ŏūĿŠƥ ǄĚŠƥƭƑĚ ČūŞƎîŠǋ Ŀƙ îČČūƭŠƥĚē ljūƑ ƭƙĿŠij ƥĺĚ ĚƐƭĿƥǋ ŞĚƥĺūē ȯƙĚĚ ȳĿǄȴ ċĚŕūǅȰȦ

Joint operation

¹ĺĚ HƑūƭƎ ƑĚČūijŠĿƙĚƙ Ŀƥƙ ēĿƑĚČƥ ƑĿijĺƥ ƥū ƥĺĚ îƙƙĚƥƙȡ ŕĿîċĿŕĿƥĿĚƙȡ ƑĚǄĚŠƭĚƙ îŠē ĚǊƎĚŠƙĚƙ ūlj ŏūĿŠƥ ūƎĚƑîƥĿūŠ îŠē Ŀƥƙ

ƙĺîƑĚ ūlj îŠǋ ŏūĿŠƥŕǋ ĺĚŕē ūƑ ĿŠČƭƑƑĚē îƙƙĚƥƙȡ ŕĿîċĿŕĿƥĿĚƙȡ ƑĚǄĚŠƭĚƙ îŠē ĚǊƎĚŠƙĚƙȦ ¹ĺĚƙĚ ĺîǄĚ ċĚĚŠ ĿŠČūƑƎūƑîƥĚē ĿŠ

ƥĺĚ ūŠƙūŕĿēîƥĚē GĿŠîŠČĿîŕ ¬ƥîƥĚŞĚŠƥ ƭŠēĚƑ ƥĺĚ îƎƎƑūƎƑĿîƥĚ ĺĚîēĿŠijƙȦ 'ĚƥîĿŕƙ ūlj ƥĺĚ ŏūĿŠƥ ūƎĚƑîƥĿūŠ îƑĚ ƙĚƥ ūƭƥ ĿŠ

sūƥĚ ǨǯȦǧǪ

iv) Equity method

ÀŠēĚƑ ƥĺĚ ĚƐƭĿƥǋ ŞĚƥĺūē ūlj îČČūƭŠƥĿŠijȡ ƥĺĚ ĿŠǄĚƙƥŞĚŠƥƙ îƑĚ ĿŠĿƥĿîŕŕǋ ƑĚČūijŠĿƙĚē îƥ Čūƙƥ îŠē îēŏƭƙƥĚē ƥĺĚƑĚîljƥĚƑ ƥū

ƑĚČūijŠĿƙĚ ƙĺîƑĚ ūlj ƥĺĚ HƑūƭƎ ĿŠ ƎūƙƥȹîČƐƭĿƙĿƥĿūŠ ƎƑūǛƥ ʈ ŕūƙƙ îŠē ūƥĺĚƑ ČūŞƎƑĚĺĚŠƙĿǄĚ ĿŠČūŞĚ ūlj ƥĺĚ ĚŠƥĿƥǋȦ 'ĿǄĿēĚŠēƙ

ƑĚČĚĿǄĚē ūƑ ƑĚČĚĿǄîċŕĚ ljƑūŞ îƙƙūČĿîƥĚ ČūŞƎîŠǋ îŠē ŏūĿŠƥ ǄĚŠƥƭƑĚ ČūŞƎîŠǋ îƑĚ ƑĚČūijŠĿƙĚē îƙ î ƑĚēƭČƥĿūŠ ĿŠ ƥĺĚ

carrying amount of the investment.

ØĺĚŠ ƥĺĚ HƑūƭƎ ƙĺîƑĚ ūlj ŕūƙƙĚƙ ĿŠ îŠ ĚƐƭĿƥǋ îČČūƭŠƥĚē ĿŠǄĚƙƥŞĚŠƥ ĚƐƭîŕƙ ūƑ ĚǊČĚĚēƙ Ŀƥƙ ĿŠƥĚƑĚƙƥ ĿŠ ƥĺĚ ĚŠƥĿƥǋȡ

including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has

incurred legal or constructive obligations or made payments on behalf of the other entity.

ÀŠƑĚîŕĿƙĚē ijîĿŠƙ ūŠ ƥƑîŠƙîČƥĿūŠƙ ċĚƥǅĚĚŠ ƥĺĚ HƑūƭƎ îŠē Ŀƥƙ îƙƙūČĿîƥĚ ČūŞƎîŠǋ îŠē ŏūĿŠƥ ǄĚŠƥƭƑĚ ČūŞƎîŠǋ îƑĚ

ĚŕĿŞĿŠîƥĚē ƥū ƥĺĚ ĚǊƥĚŠƥ ūlj ƥĺĚ HƑūƭƎ ĿŠƥĚƑĚƙƥ ĿŠ ƥĺĚƙĚ ĚŠƥĿƥĿĚƙȦ ÀŠƑĚîŕĿƙĚē ŕūƙƙĚƙ îƑĚ îŕƙū ĚŕĿŞĿŠîƥĚē ƭŠŕĚƙƙ ƥĺĚ

transaction provides evidence of an impairment of the asset transferred.

The carrying amount of equity accounted investments are tested for impairment in accordance with the policy

described in (l) below.

v) Changes in ownership interest

The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions

ǅĿƥĺ ĚƐƭĿƥǋ ūǅŠĚƑƙ ūlj ƥĺĚ HƑūƭƎȦ

ČĺîŠijĚ ĿŠ ūǅŠĚƑƙĺĿƎ ĿŠƥĚƑĚƙƥ ƑĚƙƭŕƥƙ ĿŠ îŠ îēŏƭƙƥŞĚŠƥ ċĚƥǅĚĚŠ ƥĺĚ ČîƑƑǋĿŠij

îŞūƭŠƥƙ ūlj ƥĺĚ ČūŠƥƑūŕŕĿŠij îŠē ŠūŠȹČūŠƥƑūŕŕĿŠij ĿŠƥĚƑĚƙƥƙ ƥū ƑĚǜĚČƥ ƥĺĚĿƑ ƑĚŕîƥĿǄĚ ĿŠƥĚƑĚƙƥ ĿŠ ƥĺĚ ƙƭċƙĿēĿîƑǋ ČūŞƎîŠĿĚƙȦ

Šǋ ēĿljljĚƑĚŠČĚ ċĚƥǅĚĚŠ ƥĺĚ îŞūƭŠƥ ūlj ƥĺĚ îēŏƭƙƥŞĚŠƥ ƥū ŠūŠȹČūŠƥƑūŕŕĿŠij ĿŠƥĚƑĚƙƥƙ îŠē îŠǋ ČūŠƙĿēĚƑîƥĿūŠ ƎîĿē ūƑ

received is recognised within equity.

ØĺĚŠ ƥĺĚ HƑūƭƎ ČĚîƙĚƙ ƥū ČūŠƙūŕĿēîƥĚ ūƑ ĚƐƭĿƥǋ îČČūƭŠƥ ljūƑ îŠ ĿŠǄĚƙƥŞĚŠƥ ċĚČîƭƙĚ ūlj î ŕūƙƙ ūlj ČūŠƥƑūŕȡ ŏūĿŠƥ ČūŠƥƑūŕ

ūƑ ƙĿijŠĿǛČîŠƥ ĿŠǜƭĚŠČĚȡ îŠǋ ƑĚƥîĿŠĚē ĿŠƥĚƑĚƙƥ ĿŠ ƥĺĚ ĚŠƥĿƥǋ Ŀƙ ƑĚŞĚîƙƭƑĚē ƥū Ŀƥƙ ljîĿƑ ǄîŕƭĚ ǅĿƥĺ ƥĺĚ ČĺîŠijĚ ĿŠ ČîƑƑǋĿŠij

îŞūƭŠƥ ƑĚČūijŠĿƙĚē ĿŠ ƎƑūǛƥ ūƑ ŕūƙƙȦ ¹ĺĿƙ ljîĿƑ ǄîŕƭĚ ċĚČūŞĚƙ ƥĺĚ ĿŠĿƥĿîŕ ČîƑƑǋĿŠij îŞūƭŠƥ ljūƑ ƥĺĚ ƎƭƑƎūƙĚ ūlj ƙƭċƙĚƐƭĚŠƥŕǋ

îČČūƭŠƥĿŠij ljūƑ ƥĺĚ ƑĚƥîĿŠĚē ĿŠƥĚƑĚƙƥ îƙ îŠ îƙƙūČĿîƥĚ ČūŞƎîŠǋȡ ŏūĿŠƥ ǄĚŠƥƭƑĚ ČūŞƎîŠǋ ūƑ ǛŠîŠČĿîŕ îƙƙĚƥȦ TŠ îēēĿƥĿūŠȡ

any amount previously recognised in other comprehensive income in respect of that entity are accounted for as if the

Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in

ūƥĺĚƑ ČūŞƎƑĚĺĚŠƙĿǄĚ ĿŠČūŞĚ îƑĚ ƑĚČŕîƙƙĿǛĚē ƥū ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙȦ

Tlj ƥĺĚ ūǅŠĚƑƙĺĿƎ ĿŠƥĚƑĚƙƥ ĿŠ î ŏūĿŠƥ ǄĚŠƥƭƑĚ ČūŞƎîŠǋ ūƑ îŠ îƙƙūČĿîƥĚ ČūŞƎîŠǋ Ŀƙ ƑĚēƭČĚē ċƭƥ ŏūĿŠƥ ČūŠƥƑūŕ ūƑ ƙĿijŠĿǛČîŠƥ

ĿŠǜƭĚŠČĚ Ŀƙ ƑĚƥîĿŠĚēȡ ūŠŕǋ î ƎƑūƎūƑƥĿūŠîƥĚ ƙĺîƑĚ ūlj ƥĺĚ îŞūƭŠƥƙ ƎƑĚǄĿūƭƙŕǋ ƑĚČūijŠĿƙĚē ĿŠ ūƥĺĚƑ ČūŞƎƑĚĺĚŠƙĿǄĚ ĿŠČūŞĚ

îƑĚ ƑĚČŕîƙƙĿǛĚē ƥū ƥĺĚ ūŠƙūŕĿēîƥĚē ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙ ǅĺĚƑĚ îƎƎƑūƎƑĿîƥĚȦ