Atul Ltd 2018-19

Background ƥƭŕ gƥē ȳƥĺĚ ūŞƎîŠǋȴ Ŀƙ î ƎƭċŕĿČ ČūŞƎîŠǋ ŕĿŞĿƥĚē ċǋ ƙĺîƑĚƙȡ ĿŠČūƑƎūƑîƥĚē îŠē ēūŞĿČĿŕĚē ĿŠ TŠēĿîȦ Tƥƙ ƑĚijĿƙƥĚƑĚē ūljǛČĚ Ŀƙ ŕūČîƥĚē îƥ ƥƭŕ OūƭƙĚȡ H T ¡îƥĚŕ qîƑijȡ ĺŞĚēîċîē ǩǮǦ ǦǧǪȡ HƭŏîƑîƥȡ TŠēĿî îŠē ƥĺĚ ƎƑĿŠČĿƎîŕ ƎŕîČĚƙ ūlj ŞîŠƭljîČƥƭƑĿŠij îƑĚ ŕūČîƥĚē îƥ Atul and Ankleshwar, 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 across the world 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, Sport and Leisure, Textile, Tyre and Wind Energy. sūƥĚ ǧ ¬ĿijŠĿǛČîŠƥ îČČūƭŠƥĿŠij ƎūŕĿČĿĚƙ ¹ĺĿƙ sūƥĚ ƎƑūǄĿēĚƙ î ŕĿƙƥ ūlj ƥĺĚ ƙĿijŠĿǛČîŠƥ îČČūƭŠƥĿŠij ƎūŕĿČĿĚƙ îēūƎƥĚē ċǋ ƥĺĚ ūŞƎîŠǋ ĿŠ ƎƑĚƎîƑîƥĿūŠ ūlj ƥĺĚƙĚ GĿŠîŠČĿîŕ Statements. These policies have been consistently applied to all the years presented, unless otherwise stated. a) Basis of preparation: i) Compliance with Ind AS: ¹ĺĚ GĿŠîŠČĿîŕ ¬ƥîƥĚŞĚŠƥƙ ČūŞƎŕǋ ĿŠ îŕŕ ŞîƥĚƑĿîŕ ƑĚƙƎĚČƥƙ ǅĿƥĺ TŠēĿîŠ ČČūƭŠƥĿŠij ¬ƥîŠēîƑēƙ ȳTŠē ¬ȴ ŠūƥĿǛĚē ƭŠēĚƑ Section 133 of the Companies Act, 2013 (the Act ) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act, as amended. ii) Historical cost convention: The Financial Statements have been prepared on a historical cost basis except for the following: îȴ ĚƑƥîĿŠ ǛŠîŠČĿîŕ îƙƙĚƥƙ îŠē ŕĿîċĿŕĿƥĿĚƙ ȳĿŠČŕƭēĿŠij ēĚƑĿǄîƥĿǄĚ ĿŠƙƥƑƭŞĚŠƥƙȴȠ ŞĚîƙƭƑĚē îƥ ljîĿƑ ǄîŕƭĚ ċȴ 'ĚǛŠĚē ċĚŠĚǛƥ ƎŕîŠƙȠ ƎŕîŠ îƙƙĚƥƙ ŞĚîƙƭƑĚē îƥ ljîĿƑ ǄîŕƭĚ c) Biological assets: measured at fair value less cost to sell iii) Recent accounting pronouncements: Standards issued but not yet effective: TŠē ¬ ǧǧǬ gĚîƙĚƙȠ ~Š qîƑČĺ ǩǦȡ ǨǦǧǯȡ qĿŠĿƙƥƑǋ ūlj ūƑƎūƑîƥĚ ljljîĿƑƙ ĺîē ŠūƥĿǛĚē TŠē ¬ ǧǧǬȡ gĚîƙĚƙȦ TŠē ¬ ǧǧǬ ǅĿŕŕ replace the existing Ind AS 17 Leases and related Interpretations. The Standard sets out the principles for recognition, measurement, presentation and disclosure of leases for both parties to a contract that is, the lessee and the lessor. Ind AS 116 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Currently, operating ŕĚîƙĚ ĚǊƎĚŠƙĚƙ îƑĚ ČĺîƑijĚē ƥū ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙȦ ¹ĺĚ ¬ƥîŠēîƑē îŕƙū ČūŠƥîĿŠƙ ĚŠĺîŠČĚē ēĿƙČŕūƙƭƑĚ requirements for lessee. Ind AS 116 substantially carries forward the lessor accounting requirements in Ind AS 17. The effective date for adoption of Ind AS 116 is annual periods beginning on or after April 01, 2019. The Standard permits two possible methods of transition: a) Full retrospective – Retrospectively to each prior period presented applying Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors ċȴ qūēĿǛĚē ƑĚƥƑūƙƎĚČƥĿǄĚ ȶ ¤ĚƥƑūƙƎĚČƥĿǄĚŕǋȡ ǅĿƥĺ ƥĺĚ ČƭŞƭŕîƥĿǄĚ ĚljljĚČƥ ūlj ĿŠĿƥĿîŕŕǋ îƎƎŕǋĿŠij ƥĺĚ ¬ƥîŠēîƑē ƑĚČūijŠĿƙĚē at the date of initial application ÀŠēĚƑ ŞūēĿǛĚē ƑĚƥƑūƙƎĚČƥĿǄĚ îƎƎƑūîČĺȡ ƥĺĚ ŕĚƙƙĚĚ ƑĚČūƑēƙ ƥĺĚ ŕĚîƙĚ ŕĿîċĿŕĿƥǋ îƙ ƥĺĚ ƎƑĚƙĚŠƥ ǄîŕƭĚ ūlj ƥĺĚ ƑĚŞîĿŠĿŠij lease payments, discounted at the incremental borrowing rate and the right-of-use asset either as: Notes to the Financial Statements 121 Standalone | Statement of Cash Flows | Notes to the Financial Statements