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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 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, Composites, Construction, Cosmetic, Defence, Dyestuff,
Electrical and Electronics, Flavour, Food, Footwear, Fragrance, Glass, Home Care, Horticulture, Hospitality, Paint and Coatings,
Paper, Personal Care, Pharmaceutical, Plastic, Polymer, Rubber, Soap and Detergent, Sports 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 the 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.
The Financial Statements up to the year ended March 31, 2016 were prepared in accordance with the Accounting
Standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions
of the Companies Act, 2013.
These Financial Statements are the first Financial Statements of the Company under Ind AS. Refer Note 27.23 for
an explanation of how the transition from previously applicable Indian GAAP (hereinafter referred to as ‘IGAAP’) to
Ind AS has affected the financial position, financial performance and cash flows of the Company.
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) that are 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:
In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments)
Rules, 2017, notifying amendments to Ind AS 7, ‘Statement of Cash Flows’ and Ind AS 102, ‘Share-based Payment.’
These amendments are in accordance with the recent amendments made by International Accounting Standards
Board (IASB) to IAS 7, ‘Statement of Cash Flows’ and IFRS 2, ‘Share-based Payment,’ respectively. The amendments
are applicable to the Company from April 01, 2017.
Amendment to Ind AS 7:
The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of Financial Statements to
evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and
non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the Balance
Sheet for liabilities arising from financing activities, to meet the disclosure requirement.
The Company is evaluating the requirements of the amendment and the effect on the Financial Statements is being
evaluated.
Amendment to Ind AS 102:
The Company does not have any impact on the Financial Statements on account of this pronouncement.
b) Foreign currency transactions:
i)
Functional and presentation currency:
Items included in the Financial Statements of the Company are measured using the currency of the primary economic
environment in which the Company operates (‘functional currency’). The Financial Statements of the Company are
presented in Indian currency (
`
), which is also the functional and presentation currency of the Company.
Notes
to the Financial Statements