Atul Ltd 2009-10

Corporate Identity Serving Diverse Industries Purpose and Values Overview by the Chairman Operational Highlights Financial Analysis Research and Technology Safety, HealthandEnvironment Serving the Society Directors’ Report Management Discussion andAnalysis Report on Corporate Governance Financial Statements Name of Company Countryof Incorporation Extent of 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% F Atul Rajasthan Date Palms Ltd. India 74% 17 Previous year's figures have been regrouped wherever necessary. 18 Figures less than Rs 50,000 has been shown at actual in bracket as the figures have been rounded off to nearest lacs. (c) Financial Derivatives Hedging Transactions: Pursuant to the announcement issued by The Institute of Chartered Accountants of India dated March 29, 2008 in respect of forward exchange contracts and currency and interest rate swaps, the Company has applied the Hedge Accounting principles set out in the Accounting Standard (AS) 30 'Financial Instruments : Recognition and Measurement'. Accordingly, Range Forward Contracts are marked to market and the loss aggregating Rs 15.03 crores arising consequently on contracts that were designated and effective as hedges of future cash flows has been recognized directly in the Hedging Reserve Account. Actual gain or loss on exercise of these Range Forward contracts or any part thereof is recognised in the profit and loss account. Hedge accounting will be discontinued if the hedging instrument is sold, terminated or no longer qualifies for hedge accounting. 12 Significant accounting policies followed by the Company are as stated in the statement annexed to this Schedule. 13 Included under loan and advances is an amount of Rs 21.29 crores given to an associate company. The said Company is registered under BIFR and is in the process of implementing its revival plan. First charge over all their assets have been assigned exclusively in favour of the Company. Considering present market value of assets, this amount is con- sidered as good and recoverable. 14 The Company has revalued (i) Leasehold land and (ii) commercial land and 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 Rs 107.47 crores has been transferred to Revaluation Reserve. 15 With effect from April 01, 2009 the Company has implemented Oracle as ERP platform and the valuation of inven- tories is done on the basis of Moving Weighted Average Method instead of FIFO/YTD average basis applied in the earlier years. The impact on profits due to this change is not material. 16 Companies Considered in Financial Statements are As per our attached report of even date For and on behalf of the Board of Directors For Dalal and Shah Firm Registration No 102020W G S Patel Sunil S Lalbhai Chartered Accountants B S Mehta Chairman and Managing H S Shah Director S M Datta S Venkatesh R A Shah Partner T R Gopi Kannan V S Rangan Samveg A Lalbhai Membership No 037942 President, Finance and B N Mohanan Managing Director Mumbai Company Secretary Directors Mumbai July 19, 2010 July 19, 2010 Schedule forming part of the Consolidated accounts SCHEDULE 16 NOTES FORMING PART OF THE CONSOLIDATED ACCOUNTS (contd)