Atul Ltd 2018-19

Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventory to the present ŕūČîƥĿūŠ îŠē ČūŠēĿƥĿūŠȦ ūƙƥ ĿŠČŕƭēĚƙ ƥĺĚ ƑĚČŕîƙƙĿǛČîƥĿūŠ ljƑūŞ ĚƐƭĿƥǋ ūlj îŠǋ ijîĿŠƙ ūƑ ŕūƙƙĚƙ ūŠ ƐƭîŕĿljǋĿŠij Čîƙĺ ǜūǅ ĺĚēijĚƙ relating to purchases of raw material but excludes borrowing costs. Due allowances are made for slow moving and obsolete inventories based on estimates made by the Company. TƥĚŞƙ ƙƭČĺ îƙ ƙƎîƑĚ ƎîƑƥƙȡ ƙƥîŠēȹċǋ ĚƐƭĿƎŞĚŠƥ îŠē ƙĚƑǄĿČĿŠij ĚƐƭĿƎŞĚŠƥ ǅĺĿČĺ îƑĚ Šūƥ ƎŕîŠƥ îŠē ŞîČĺĿŠĚƑǋ ijĚƥ ČŕîƙƙĿǛĚē as inventory. The harvested product of biological assets of the Company that is oil palm Fresh Fruit Bunch (FFB) is initially measured at fair value less costs to sell on the point of harvest and subsequently measured at the lower of such value or net realisable value. ūȴ TŠǄĚƙƥŞĚŠƥƙ îŠē ūƥĺĚƑ ǛŠîŠČĿîŕ îƙƙĚƥƙȠ ŕîƙƙĿǛČîƥĿūŠȠ ¹ĺĚ ūŞƎîŠǋ ČŕîƙƙĿǛĚƙ Ŀƥƙ ǛŠîŠČĿîŕ îƙƙĚƥƙ ĿŠ ƥĺĚ ljūŕŕūǅĿŠij ŞĚîƙƭƑĚŞĚŠƥ ČîƥĚijūƑĿĚƙȠ Ŀȴ ¹ĺūƙĚ ƥū ċĚ ŞĚîƙƭƑĚē ƙƭċƙĚƐƭĚŠƥŕǋ îƥ ljîĿƑ ǄîŕƭĚ ȳĚĿƥĺĚƑ ƥĺƑūƭijĺ ūƥĺĚƑ ČūŞƎƑĚĺĚŠƙĿǄĚ ĿŠČūŞĚȡ ūƑ ƥĺƑūƭijĺ ƎƑūǛƥ ūƑ loss) ii) Those measured at amortised cost ¹ĺĚ ČŕîƙƙĿǛČîƥĿūŠ ēĚƎĚŠēƙ ūŠ ċƭƙĿŠĚƙƙ ŞūēĚŕ ūlj ƥĺĚ ūŞƎîŠǋ ljūƑ ŞîŠîijĿŠij ǛŠîŠČĿîŕ îƙƙĚƥƙ îŠē ƥĺĚ ČūŠƥƑîČƥƭîŕ ƥĚƑŞƙ ūlj ƥĺĚ Čîƙĺ ǜūǅƙȦ GūƑ îƙƙĚƥƙ ŞĚîƙƭƑĚē îƥ ljîĿƑ ǄîŕƭĚȡ ijîĿŠƙ îŠē ŕūƙƙĚƙ ǅĿŕŕ ĚĿƥĺĚƑ ċĚ ƑĚČūƑēĚē ĿŠ ƎƑūǛƥ ūƑ ŕūƙƙ ūƑ ūƥĺĚƑ ČūŞƎƑĚĺĚŠƙĿǄĚ income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. Debt instruments: Initial recognition and measurement: Financial asset is recognised when the Company becomes a party to the contractual provisions of the instrument. Financial îƙƙĚƥ Ŀƙ ƑĚČūijŠĿƙĚē ĿŠĿƥĿîŕŕǋ îƥ ljîĿƑ ǄîŕƭĚ Ǝŕƭƙȡ ĿŠ ƥĺĚ ČîƙĚ ūlj ǛŠîŠČĿîŕ îƙƙĚƥ Šūƥ ƑĚČūƑēĚē îƥ ljîĿƑ ǄîŕƭĚ ƥĺƑūƭijĺ ƎƑūǛƥ ūƑ ŕūƙƙȡ ƥƑîŠƙîČƥĿūŠ Čūƙƥƙ ƥĺîƥ îƑĚ îƥƥƑĿċƭƥîċŕĚ ƥū ƥĺĚ îČƐƭĿƙĿƥĿūŠ ūlj ƥĺĚ ǛŠîŠČĿîŕ îƙƙĚƥȦ ¹ƑîŠƙîČƥĿūŠ Čūƙƥƙ ūlj ǛŠîŠČĿîŕ îƙƙĚƥ ČîƑƑĿĚē îƥ ljîĿƑ ǄîŕƭĚ ƥĺƑūƭijĺ ƎƑūǛƥ ūƑ ŕūƙƙ îƑĚ ĚǊƎĚŠƙĚē ĿŠ ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙȦ Subsequent measurement: Subsequent measurement of debt instruments depends on the business model of the Company for managing the asset îŠē ƥĺĚ Čîƙĺ ǜūǅ ČĺîƑîČƥĚƑĿƙƥĿČƙ ūlj ƥĺĚ îƙƙĚƥȦ ¹ĺĚƑĚ îƑĚ ƥĺƑĚĚ ŞĚîƙƭƑĚŞĚŠƥ ČîƥĚijūƑĿĚƙ ĿŠƥū ǅĺĿČĺ ƥĺĚ ūŞƎîŠǋ ČŕîƙƙĿǛĚƙ its debt instruments: Measured at amortised cost: GĿŠîŠČĿîŕ îƙƙĚƥƙ ƥĺîƥ îƑĚ ĺĚŕē ǅĿƥĺĿŠ î ċƭƙĿŠĚƙƙ ŞūēĚŕ ǅĺūƙĚ ūċŏĚČƥĿǄĚ Ŀƙ ƥū ĺūŕē ǛŠîŠČĿîŕ îƙƙĚƥƙ ĿŠ ūƑēĚƑ ƥū ČūŕŕĚČƥ ČūŠƥƑîČƥƭîŕ Čîƙĺ ǜūǅƙ ƥĺîƥ îƑĚ ƙūŕĚŕǋ ƎîǋŞĚŠƥƙ ūlj ƎƑĿŠČĿƎîŕ îŠē ĿŠƥĚƑĚƙƥȡ îƑĚ ƙƭċƙĚƐƭĚŠƥŕǋ ŞĚîƙƭƑĚē îƥ îŞūƑƥĿƙĚē Čūƙƥ using the EIR method less impairment, if any, the amortisation of EIR and loss arising from impairment, if any is recognised ĿŠ ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙȦ Measured at fair value through other comprehensive income (FVOCI): GĿŠîŠČĿîŕ îƙƙĚƥƙ ƥĺîƥ îƑĚ ĺĚŕē ǅĿƥĺĿŠ î ċƭƙĿŠĚƙƙ ŞūēĚŕ ǅĺūƙĚ ūċŏĚČƥĿǄĚ Ŀƙ îČĺĿĚǄĚē ċǋ ċūƥĺȡ ƙĚŕŕĿŠij ǛŠîŠČĿîŕ îƙƙĚƥƙ îŠē ČūŕŕĚČƥĿŠij ČūŠƥƑîČƥƭîŕ Čîƙĺ ǜūǅƙ ƥĺîƥ îƑĚ ƙūŕĚŕǋ ƎîǋŞĚŠƥƙ ūlj ƎƑĿŠČĿƎîŕ îŠē ĿŠƥĚƑĚƙƥȡ îƑĚ ƙƭċƙĚƐƭĚŠƥŕǋ ŞĚîƙƭƑĚē îƥ ljîĿƑ value through other comprehensive income. Fair value movements are recognised in the OCI. Interest income measured ƭƙĿŠij ƥĺĚ /T¤ ŞĚƥĺūē îŠē ĿŞƎîĿƑŞĚŠƥ ŕūƙƙĚƙȡ Ŀlj îŠǋ îƑĚ ƑĚČūijŠĿƙĚē ĿŠ ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙȦ ~Š ēĚƑĚČūijŠĿƥĿūŠȡ ČƭŞƭŕîƥĿǄĚ ijîĿŠ ʈ ȳŕūƙƙȴ ƎƑĚǄĿūƭƙŕǋ ƑĚČūijŠĿƙĚē ĿŠ ~ T Ŀƙ ƑĚČŕîƙƙĿǛĚē ljƑūŞ ƥĺĚ ĚƐƭĿƥǋ ƥū ūƥĺĚƑ ĿŠČūŞĚ ĿŠ ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙȦ 127 Standalone | Notes to the Financial Statements