Atul Ltd 2018-19

iv) Derecognition: ǛŠîŠČĿîŕ ŕĿîċĿŕĿƥǋ Ŀƙ ēĚƑĚČūijŠĿƙĚē ǅĺĚŠ ƥĺĚ ūċŕĿijîƥĿūŠ ƙƎĚČĿǛĚē ĿŠ ƥĺĚ ČūŠƥƑîČƥ Ŀƙ ēĿƙČĺîƑijĚēȡ ČîŠČĚŕŕĚē ūƑ ĚǊƎĿƑĚƙȦ Ǝȴ ~ljljƙĚƥƥĿŠij ǛŠîŠČĿîŕ ĿŠƙƥƑƭŞĚŠƥƙȠ Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the assets and settle the liabilities simultaneously. q) Derivatives and hedging activities: ¹ĺĚ ūŞƎîŠǋ ĺūŕēƙ ēĚƑĿǄîƥĿǄĚ ǛŠîŠČĿîŕ ĿŠƙƥƑƭŞĚŠƥƙ ƙƭČĺ îƙ ljūƑĚĿijŠ ĚǊČĺîŠijĚ ljūƑǅîƑēȡ ĿŠƥĚƑĚƙƥ ƑîƥĚ ƙǅîƎƙȡ ČƭƑƑĚŠČǋ swaps and currency options to mitigate the risk of changes in exchange rates or interest rate. The counterparty for these contracts is generally a bank. Ŀȴ GĿŠîŠČĿîŕ îƙƙĚƥƙ ūƑ ǛŠîŠČĿîŕ ŕĿîċĿŕĿƥĿĚƙȡ îƥ ljîĿƑ ǄîŕƭĚ ƥĺƑūƭijĺ ƎƑūǛƥ ūƑ ŕūƙƙȠ ¹ĺĿƙ ČîƥĚijūƑǋ ĺîƙ ēĚƑĿǄîƥĿǄĚ ǛŠîŠČĿîŕ îƙƙĚƥƙ ūƑ ŕĿîċĿŕĿƥĿĚƙ ǅĺĿČĺ îƑĚ Šūƥ ēĚƙĿijŠîƥĚē îƙ ĺĚēijĚƙȦ Although the Company believes that these derivatives constitute hedges from an economic perspective, they may not qualify for hedge accounting under Ind AS 109, Financial Instruments. Any derivative that is either not designated î ĺĚēijĚȡ ūƑ Ŀƙ ƙū ēĚƙĿijŠîƥĚē ċƭƥ Ŀƙ ĿŠĚljljĚČƥĿǄĚ îƙ ƎĚƑ TŠē ¬ ǧǦǯȡ Ŀƙ ČîƥĚijūƑĿƙĚē îƙ î ǛŠîŠČĿîŕ îƙƙĚƥ ūƑ ǛŠîŠČĿîŕ ŕĿîċĿŕĿƥǋȡ îƥ ljîĿƑ ǄîŕƭĚ ƥĺƑūƭijĺ ƎƑūǛƥ ūƑ ŕūƙƙȦ Derivatives not designated as hedges are recognised initially at fair value and attributable transaction costs are ƑĚČūijŠĿƙĚē ĿŠ ŠĚƥ ƎƑūǛƥ ĿŠ ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙȡ ǅĺĚŠ ĿŠČƭƑƑĚēȦ ¬ƭċƙĚƐƭĚŠƥ ƥū ĿŠĿƥĿîŕ ƑĚČūijŠĿƥĿūŠȡ ƥĺĚƙĚ ēĚƑĿǄîƥĿǄĚƙ îƑĚ ŞĚîƙƭƑĚē îƥ ljîĿƑ ǄîŕƭĚ ƥĺƑūƭijĺ ƎƑūǛƥ ūƑ ŕūƙƙ îŠē ƥĺĚ ƑĚƙƭŕƥĿŠij ijîĿŠƙ ūƑ ŕūƙƙĚƙ îƑĚ ĿŠČŕƭēĚē ĿŠ ūƥĺĚƑ income or other expenses. Assets | liabilities in this category are presented as current assets | current liabilities if they are either held for trading or are expected to be realised within 12 months after the Balance Sheet date. ĿĿȴ îƙĺ ǜūǅ ĺĚēijĚȠ ¹ĺĚ ūŞƎîŠǋ ēĚƙĿijŠîƥĚƙ ČĚƑƥîĿŠ ljūƑĚĿijŠ ĚǊČĺîŠijĚ ljūƑǅîƑē îŠē ūƎƥĿūŠƙ ČūŠƥƑîČƥƙ îƙ Čîƙĺ ǜūǅ ĺĚēijĚƙ ƥū ŞĿƥĿijîƥĚ ƥĺĚ ƑĿƙŒ ūlj ljūƑĚĿijŠ ĚǊČĺîŠijĚ ĚǊƎūƙƭƑĚ ūŠ ǛƑŞ ČūŞŞĿƥŞĚŠƥ îŠē ĺĿijĺŕǋ ƎƑūċîċŕĚ ljūƑĚČîƙƥ ƥƑîŠƙîČƥĿūŠƙȦ ØĺĚŠ î ēĚƑĿǄîƥĿǄĚ Ŀƙ ēĚƙĿijŠîƥĚē îƙ î Čîƙĺ ǜūǅ ĺĚēijĿŠij ĿŠƙƥƑƭŞĚŠƥȡ ƥĺĚ ĚljljĚČƥĿǄĚ ƎūƑƥĿūŠ ūlj ČĺîŠijĚƙ ĿŠ ƥĺĚ ljîĿƑ ǄîŕƭĚ ūlj ƥĺĚ ēĚƑĿǄîƥĿǄĚ Ŀƙ ƑĚČūijŠĿƙĚē ĿŠ ūƥĺĚƑ ČūŞƎƑĚĺĚŠƙĿǄĚ ĿŠČūŞĚ îŠē îČČƭŞƭŕîƥĚē ĿŠ ƥĺĚ Čîƙĺ ǜūǅ ĺĚēijĿŠij ƑĚƙĚƑǄĚȦ Šǋ ĿŠĚljljĚČƥĿǄĚ ƎūƑƥĿūŠ ūlj ČĺîŠijĚƙ ĿŠ ƥĺĚ ljîĿƑ ǄîŕƭĚ ūlj ƥĺĚ ēĚƑĿǄîƥĿǄĚ Ŀƙ ƑĚČūijŠĿƙĚē ĿŞŞĚēĿîƥĚŕǋ ĿŠ ƥĺĚ ŠĚƥ ƎƑūǛƥ ĿŠ ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙȦ Tlj ƥĺĚ ĺĚēijĿŠij ĿŠƙƥƑƭŞĚŠƥ Šū ŕūŠijĚƑ ŞĚĚƥƙ ƥĺĚ ČƑĿƥĚƑĿî ljūƑ ĺĚēijĚ îČČūƭŠƥĿŠijȡ ƥĺĚŠ ĺĚēijĚ accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the ČƭŞƭŕîƥĿǄĚ ijîĿŠ ʈ ȳŕūƙƙȴ ūŠ ƥĺĚ ĺĚēijĿŠij ĿŠƙƥƑƭŞĚŠƥ ƑĚČūijŠĿƙĚē ĿŠ Čîƙĺ ǜūǅ ĺĚēijĿŠij ƑĚƙĚƑǄĚ ƥĿŕŕ ƥĺĚ ƎĚƑĿūē ƥĺĚ ĺĚēijĚ ǅîƙ ĚljljĚČƥĿǄĚ ƑĚŞîĿŠƙ ĿŠ Čîƙĺ ǜūǅ ĺĚēijĿŠij ƑĚƙĚƑǄĚ ƭŠƥĿŕ ƥĺĚ ljūƑĚČîƙƥĚē ƥƑîŠƙîČƥĿūŠ ūČČƭƑƙȦ ¹ĺĚ ČƭŞƭŕîƥĿǄĚ ijîĿŠ ʈ ȳŕūƙƙȴ ƎƑĚǄĿūƭƙŕǋ ƑĚČūijŠĿƙĚē ĿŠ ƥĺĚ Čîƙĺ ǜūǅ ĺĚēijĿŠij ƑĚƙĚƑǄĚ Ŀƙ ƥƑîŠƙljĚƑƑĚē ƥū ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙ ƭƎūŠ the occurrence of the related forecasted transaction. Tlj ƥĺĚ ljūƑĚČîƙƥĚē ƥƑîŠƙîČƥĿūŠ Ŀƙ Šū ŕūŠijĚƑ ĚǊƎĚČƥĚē ƥū ūČČƭƑȡ ƥĺĚŠ ƥĺĚ îŞūƭŠƥ îČČƭŞƭŕîƥĚē ĿŠ Čîƙĺ ǜūǅ ĺĚēijĿŠij ƑĚƙĚƑǄĚ Ŀƙ ƑĚČŕîƙƙĿǛĚē ƥū ŠĚƥ ƎƑūǛƥ ĿŠ ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙȦ r) Borrowings: Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised ĿŠ ƎƑūǛƥ ūƑ ŕūƙƙ ūǄĚƑ ƥĺĚ ƎĚƑĿūē ūlj ƥĺĚ ċūƑƑūǅĿŠijƙ ƭƙĿŠij ƥĺĚ ĚljljĚČƥĿǄĚ ĿŠƥĚƑĚƙƥ ŞĚƥĺūēȦ GĚĚƙ ƎîĿē ūŠ ƥĺĚ ĚƙƥîċŕĿƙĺŞĚŠƥ ūlj loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. ūƑƑūǅĿŠijƙ îƑĚ ƑĚŞūǄĚē ljƑūŞ ƥĺĚ îŕîŠČĚ ¬ĺĚĚƥ ǅĺĚŠ ƥĺĚ ūċŕĿijîƥĿūŠ ƙƎĚČĿǛĚē ĿŠ ƥĺĚ ČūŠƥƑîČƥ Ŀƙ ēĿƙČĺîƑijĚēȡ ČîŠČĚŕŕĚē ūƑ ĚǊƎĿƑĚēȦ ¹ĺĚ ēĿljljĚƑĚŠČĚ ċĚƥǅĚĚŠ ƥĺĚ ČîƑƑǋĿŠij îŞūƭŠƥ ūlj î ǛŠîŠČĿîŕ ŕĿîċĿŕĿƥǋ ƥĺîƥ ĺîƙ ċĚĚŠ ĚǊƥĿŠijƭĿƙĺĚē ūƑ ƥƑîŠƙljĚƑƑĚē ƥū another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised ĿŠ ƎƑūǛƥ ūƑ ŕūƙƙ îƙ ūƥĺĚƑ ĿŠČūŞĚ ʈ ȳĚǊƎĚŠƙĚȴȦ ūƑƑūǅĿŠijƙ îƑĚ ČŕîƙƙĿǛĚē îƙ ČƭƑƑĚŠƥ ŕĿîċĿŕĿƥĿĚƙ ƭŠŕĚƙƙ ƥĺĚ ūŞƎîŠǋ ĺîƙ îŠ ƭŠČūŠēĿƥĿūŠîŕ ƑĿijĺƥ ƥū ēĚljĚƑ ƙĚƥƥŕĚŞĚŠƥ ūlj ƥĺĚ liability for at least 12 months after the reporting period. 129 Standalone | Notes to the Financial Statements