Atul Ltd 2012-13

Atul Ltd | Annual Report 2012-13 iii) Service income is recognised, net of service tax, when the related services are rendered. b) Other Revenues: i) Eligible export incentives are recognised in the year in which the conditions precedent is met and WKHUH LV QR VLJQLÀFDQW XQFHUWDLQW\ DERXW WKH FROOHFWDELOLW\ ii) Lease rental income is recognised on accrual basis. iii) Dividend income is accounted for in the year in which the right to receive the same is established. iv) Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. 4.11 Provisions, Contingent Liabilities and Contingent Assets: Provisions involving a substantial degree of estimation in measurement are recognised when there is a SUHVHQW REOLJDWLRQ DV D UHVXOW RI SDVW HYHQWV DQG LW LV SUREDEOH WKDW WKHUH ZLOO EH DQ RXWÁRZ RI UHVRXUFHV Provision is not discounted to its present value and is determined based on the best estimate required to VHWWOH DQ REOLJDWLRQ DW WKH \HDU HQG 7KHVH DUH UHYLHZHG HYHU\ \HDU HQG DQG DGMXVWHG WR UHÁHFW WKH EHVW FXUUHQW HVWLPDWH &RQWLQJHQW OLDELOLWLHV DUH QRW UHFRJQLVHG EXW DUH GLVFORVHG LQ WKH ÀQDQFLDO VWDWHPHQWV &RQWLQJHQW DVVHWV DUH QHLWKHU UHFRJQLVHG QRU GLVFORVHG LQ WKH ÀQDQFLDO VWDWHPHQWV 4.12 Research and Development Expenditure: Research and Development expenditure is charged to revenue under the natural heads of account in the \HDU LQ ZKLFK LW LV LQFXUUHG 5HVHDUFK DQG 'HYHORSPHQW H[SHQGLWXUH RQ À[HG DVVHWV LV WUHDWHG LQ WKH VDPH ZD\ DV H[SHQGLWXUH RQ RWKHU À[HG DVVHWV 4.13 Employee Benefits: D 'HÀQHG FRQWULEXWLRQ SODQ Contribution paid | payable by the Company during the period to Provident Fund, Super Annuation Fund, Employees’ State Insurance Corporation, and Labour Welfare Fund are recognised in the 6WDWHPHQW RI 3URÀW DQG /RVV E 'HÀQHG EHQHÀW SODQ Gratuity: *UDWXLW\ OLDELOLW\ LV D 'HÀQHG %HQHÀW 2EOLJDWLRQ '%2 DQG LV FRPSXWHG RQ WKH EDVLV RI DQ DFWXDULDO valuation by an actuary appointed for the purpose as per projected unit credit method, at the end RI HDFK ÀQDQFLDO \HDU 7KH OLDELOLW\ VR SURYLGHG LV SDLG WR D WUXVW DGPLQLVWHUHG E\ WKH &RPSDQ\ ZKLFK in turn invest in eligible securities to meet the liability as and when it accrues for payment in future. $FWXDULDO JDLQV _ ORVVHV DUH LPPHGLDWHO\ WDNHQ WR 6WDWHPHQW RI 3URÀW DQG /RVV $Q\ VKRUWIDOO LQ WKH YDOXH RI DVVHWV RYHU WKH 'HÀQHG %HQHÀW 2EOLJDWLRQ LV UHFRJQLVHG DV D OLDELOLW\ ZLWK D FRUUHVSRQGLQJ FKDUJH WR 6WDWHPHQW RI 3URÀW DQG /RVV Long-term leave encashment: Long-term leave encashment is provided for on the basis of an actuarial valuation carried out at the end of the year on the projected unit credit method. Actuarial gains | losses are immediately taken to 6WDWHPHQW RI 3URÀW DQG /RVV Provident Fund: Provident Fund for certain eligible employees is managed by the Company through the ‘Atul Products Ltd - Ankleshwar Division Employees Provident Fund Trust’ in line with Provident Fund and 0LVFHOODQHRXV 3URYLVLRQV $FW 7KH SODQ JXDUDQWHHV LQWHUHVW DW WKH UDWH QRWLÀHG E\ WKH 3URYLGHQW Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the Company NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (contd) Notes to Consolidated financial statements