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Schedules forming part of the Consolidated Account
s
18 Companies considered in financial statements are:
Name of company
Country of
Extent of
incorporation
holding
A Ameer Trading Corporation Ltd
India
100%
B Atul Americas Inc
America
100%
C Atul Europe Ltd
England
100%
D Atul Deutschland GmbH
Germany
100%
E Atul International Trading (Shanghai) Co Ltd
China
100%
19
Previous year's figures have been regrouped wherever necessary.
20
Figures less than Rs500 has been shown at actual in bracket as the figures have been rounded off to nearest thousand.
As per our attached report of even date
For and on behalf of the Board of Directors
For & on behalf of
Dalal & Shah
G S Patel
Sunil S Lalbhai
Chartered Accountants
B S Mehta
Chairman and Managing Director
H S Shah
Ashish S Dalal
T R Gopi Kannan
S M Datta
Partner
President, Finance and
B N Mohanan
Samveg A Lalbhai
Membership No 033596
Company Secretary
Directors
Managing Director
Mumbai
Mumbai
June 05, 2009
May 29, 2009
SCHEDULE 16 NOTES FORMING PART OF THE ACCOUNTS
(Contd.)
The unrealised loss consequent to foreign currency fluctuations in respect of these effective hedging instruments though
not recognised now will be ultimately set off in the Profit and Loss Account when the underlying transaction arises when
it will be possible to precisely know the impact.
Considering the above facts and due to material uncertainty arising from future events mentioned in the range forward
contracts and rate over the period of three years, the management is of the view that it is not "known loss" and it is not
a prudent practice to deliberately overstate liabilities or expenses because, if such notional losses are provided for, the
reliability and quality of the financial statement will be vitiated and therefore no provision for the liability and MTM loss
of Rs5,484.09 lacs on account of such range forward contracts has been made in the books as at March 31, 2009.
In the view of the management this will give more reliable financial statements without unrepresentative volatility in the
Profit and Loss Account
(b) Rs0.97 lacs (realised loss), Rs18.05 lacs (realised gain) and Rs13.47 lacs (unrealised loss) on interest SWAP is included in
interest paid on loan. Rs63.81 lacs (realised loss), Rs1.70 lacs (realised gain) and Rs461.32 lacs (unrealised loss) on currency
SWAP (principal) are included in exchange rate difference. Provision on forward contract transactions has been recorded
as per Accounting Standard - 11 on "The Effects of Changes in Foreign Exchange Rates (Revised 2003)".
15
The Company has revalued (i) Leasehold land and (ii) commercial land & building at Ahmedabad, Mumbai and Delhi as at March
31, 2008 at fair market value as determined by an independent valuer appointed for the purpose. Resultant increase in book value
amounting to Rs10,747.32 lacs has been transferred to revaluation reserve.
16
Significant accounting policies followed by the Company are as stated in the statement annexed to this Schedule.
17
Included under loan & advances is an amount of Rs2,128.89 lacs given to an associate company. The said company is registered
under BIFR in the process of implementing its revival plan. All their assets have been assigned exclusively in favour of the Company
as a security for this loan.
108