Atul Ltd 2018-19

a) its carrying amount as if the Standard had been applied since the commencement date, but discounted at incremental borrowing rate of the lessee at the date of initial application or b) an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments related to that lease recognised under Ind AS 17 immediately before the date of initial application. ¹ĺĚ ūŞƎîŠǋ ƎƑūƎūƙĚƙ ƥū îēūƎƥ ƥĺĚ ¬ƥîŠēîƑē ūŠ ƎƑĿŕ Ǧǧȡ ǨǦǧǯ ċǋ ƭƙĿŠij ƥĺĚ ɃqūēĿǛĚē ¤ĚƥƑūƙƎĚČƥĿǄĚ ƎƎƑūîČĺɄ ljūƑ transitioning to Ind AS 116, and take the cumulative adjustment to retained earnings, on the date of initial application (April 01, 2019). Accordingly, comparatives for the year ended March 31, 2019 will not be retrospectively adjusted. The Company has elected certain available practical expedients on transition. No material impact on Ind AS 116 is expected. TŠē ¬ ǧǨ ƎƎĚŠēĿǊ ȡ ÀŠČĚƑƥîĿŠƥǋ ūǄĚƑ TŠČūŞĚ ¹îǊ ¹ƑĚîƥŞĚŠƥƙȠ ~Š qîƑČĺ ǩǦȡ ǨǦǧǯȡ qĿŠĿƙƥƑǋ ūlj ūƑƎūƑîƥĚ ljljîĿƑƙ ĺîē ŠūƥĿǛĚē TŠē ¬ ǧǨ ƎƎĚŠēĿǊ ȡ ÀŠČĚƑƥîĿŠƥǋ ūǄĚƑ TŠČūŞĚ ¹îǊ ¹ƑĚîƥŞĚŠƥƙ ǅĺĿČĺ Ŀƙ ƥū ċĚ îƎƎŕĿĚē ǅĺĿŕĚ ƎĚƑljūƑŞĿŠij ƥĺĚ ēĚƥĚƑŞĿŠîƥĿūŠ ūlj ƥîǊîċŕĚ ƎƑūǛƥ ȳūƑ ŕūƙƙȴȡ ƥîǊ ċîƙĚƙȡ ƭŠƭƙĚē ƥîǊ ŕūƙƙĚƙȡ ƭŠƭƙĚē ƥîǊ ČƑĚēĿƥƙ îŠē ƥîǊ ƑîƥĚƙȡ ǅĺĚŠ there is uncertainty over income tax treatments under Ind AS 12. According to the appendix, companies need to determine the probability of the relevant tax authority accepting each tax treatment, or group of tax treatments, that ƥĺĚ ČūŞƎîŠĿĚƙ ĺîǄĚ ƭƙĚē ūƑ ƎŕîŠ ƥū ƭƙĚ ĿŠ ƥĺĚĿƑ ĿŠČūŞĚ ƥîǊ ǛŕĿŠij ǅĺĿČĺ ĺîƙ ƥū ċĚ ČūŠƙĿēĚƑĚē ƥū ČūŞƎƭƥĚ ƥĺĚ Şūƙƥ ŕĿŒĚŕǋ îŞūƭŠƥ ūƑ ƥĺĚ ĚǊƎĚČƥĚē ǄîŕƭĚ ūlj ƥĺĚ ƥîǊ ƥƑĚîƥŞĚŠƥ ǅĺĚŠ ēĚƥĚƑŞĿŠĿŠij ƥîǊîċŕĚ ƎƑūǛƥ ȳƥîǊ ŕūƙƙȴȡ ƥîǊ ċîƙĚƙȡ ƭŠƭƙĚē tax losses, unused tax credits and tax rates. The effect on adoption of Ind AS 12 Appendix C is not expected to be material in the Financial Statements. Amendment to Ind AS 12, Income Taxes: on March 30, 2019, Ministry of Corporate Affairs had issued amendments to the guidance in Ind AS 12, ‘Income Taxes’, in connection with accounting for dividend distribution taxes. The îŞĚŠēŞĚŠƥ ČŕîƑĿǛĚƙ ƥĺîƥ îŠ ĚŠƥĿƥǋ ǅĿŕŕ ƑĚČūijŠĿƙĚ ƥĺĚ ĿŠČūŞĚ ƥîǊ ČūŠƙĚƐƭĚŠČĚƙ ūlj ēĿǄĿēĚŠēƙ ĿŠ ƎƑūǛƥ ūƑ ŕūƙƙȡ ūƥĺĚƑ comprehensive income or equity according to where the entity originally recognised those past transactions or events. The amendment will be effective April 01, 2019. The effect on adoption of Amendment to Ind AS 12 is not expected to be material in the Financial Statements. Amendment to Ind AS 19, plan amendment, curtailment or settlement - On March 30, 2019, Ministry of Corporate ljljîĿƑƙ ĿƙƙƭĚē îŞĚŠēŞĚŠƥƙ ƥū TŠē ¬ ǧǯȡ Ƀ/ŞƎŕūǋĚĚ ĚŠĚǛƥƙɄȡ ĿŠ ČūŠŠĚČƥĿūŠ ǅĿƥĺ îČČūƭŠƥĿŠij ljūƑ ƎŕîŠ îŞĚŠēŞĚŠƥƙȡ curtailments and settlements. The amendments require an entity: a) to use updated assumptions to determine current service cost and net interest for the remainder of the period after a plan amendment, curtailment or settlement; and ċȴ ƥū ƑĚČūijŠĿƙĚ ĿŠ ƎƑūǛƥ ūƑ ŕūƙƙ îƙ ƎîƑƥ ūlj Ǝîƙƥ ƙĚƑǄĿČĚ Čūƙƥȡ ūƑ î ijîĿŠ ūƑ ŕūƙƙ ūŠ ƙĚƥƥŕĚŞĚŠƥȡ îŠǋ ƑĚēƭČƥĿūŠ ĿŠ î surplus, even if that surplus was not previously recognised because of the impact of the asset ceiling. The Company does not have any impact on account of this amendment. 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. ii) Transactions and balances: Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gain | (loss) resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are Corporate Overview 01-22 Statutory Reports 23-105 Financial Statements 107-250 122 Atul Ltd | Annual Report 2018-19