Atul Ltd 2018-19

ii) Associate companies ƙƙūČĿîƥĚ ČūŞƎîŠĿĚƙ îƑĚ îŕŕ ĚŠƥĿƥĿĚƙ ūDŽĚƑ DžĺĿČĺ ƥĺĚ HƑūƭƎ ĺîƙ ƙĿijŠĿǛČîŠƥ ĿŠǜƭĚŠČĚȡ ċƭƥ Šūƥ ČūŠƥƑūŕ ūƑ ŏūĿŠƥ ČūŠƥƑūŕȦ This is generally the case where the Group holds between 20% and 50% of the voting rights. Investments in associate companies are accounted for using the equity method of accounting {see (iv) below}. iii) Joint arrangements ÀŠēĚƑ TŠē ¬ ǧǧǧ ɃcūĿŠƥ ƑƑîŠijĚŞĚŠƥƙɄȡ ĿŠDŽĚƙƥŞĚŠƥƙ ĿŠ ŏūĿŠƥ îƑƑîŠijĚŞĚŠƥƙ îƑĚ ČŕîƙƙĿǛĚē îƙ ĚĿƥĺĚƑ ŏūĿŠƥ ūƎĚƑîƥĿūŠƙ ūƑ ŏūĿŠƥ DŽĚŠƥƭƑĚƙȦ ¹ĺĚ ČŕîƙƙĿǛČîƥĿūŠ ēĚƎĚŠēƙ ūŠ ƥĺĚ ČūŠƥƑîČƥƭîŕ ƑĿijĺƥƙ îŠē ūċŕĿijîƥĿūŠƙ ūlj ĚîČĺ ĿŠDŽĚƙƥūƑȡ ƑîƥĺĚƑ ƥĺîŠ ƥĺĚ ŕĚijîŕ ƙƥƑƭČƥƭƑĚ ūlj ƥĺĚ ŏūĿŠƥ îƑƑîŠijĚŞĚŠƥȦ ¹ĺĚ HƑūƭƎ ĺîƙ ĿŠƥĚƑĚƙƥ ĿŠ î ŏūĿŠƥ DŽĚŠƥƭƑĚ ČūŞƎîŠNj îŠē î ŏūĿŠƥ ūƎĚƑîƥĿūŠȦ Joint venture company TŠƥĚƑĚƙƥ ĿŠ ŏūĿŠƥ DŽĚŠƥƭƑĚ ČūŞƎîŠNj Ŀƙ îČČūƭŠƥĚē ljūƑ ƭƙĿŠij ƥĺĚ ĚƐƭĿƥNj ŞĚƥĺūē ȯƙĚĚ ȳĿDŽȴ ċĚŕūDžȰȦ Joint operation ¹ĺĚ HƑūƭƎ ƑĚČūijŠĿƙĚƙ Ŀƥƙ ēĿƑĚČƥ ƑĿijĺƥ ƥū ƥĺĚ îƙƙĚƥƙȡ ŕĿîċĿŕĿƥĿĚƙȡ ƑĚDŽĚŠƭĚƙ îŠē ĚNJƎĚŠƙĚƙ ūlj ŏūĿŠƥ ūƎĚƑîƥĿūŠ îŠē Ŀƥƙ ƙĺîƑĚ ūlj îŠNj ŏūĿŠƥŕNj ĺĚŕē ūƑ ĿŠČƭƑƑĚē îƙƙĚƥƙȡ ŕĿîċĿŕĿƥĿĚƙȡ ƑĚDŽĚŠƭĚƙ îŠē ĚNJƎĚŠƙĚƙȦ ¹ĺĚƙĚ ĺîDŽĚ ċĚĚŠ ĿŠČūƑƎūƑîƥĚē ĿŠ ƥĺĚ ūŠƙūŕĿēîƥĚē GĿŠîŠČĿîŕ ¬ƥîƥĚŞĚŠƥ ƭŠēĚƑ ƥĺĚ îƎƎƑūƎƑĿîƥĚ ĺĚîēĿŠijƙȦ 'ĚƥîĿŕƙ ūlj ƥĺĚ ŏūĿŠƥ ūƎĚƑîƥĿūŠ îƑĚ ƙĚƥ ūƭƥ ĿŠ sūƥĚ ǨǯȦǧǪ iv) Equity method ÀŠēĚƑ ƥĺĚ ĚƐƭĿƥNj ŞĚƥĺūē ūlj îČČūƭŠƥĿŠijȡ ƥĺĚ ĿŠDŽĚƙƥŞĚŠƥƙ îƑĚ ĿŠĿƥĿîŕŕNj ƑĚČūijŠĿƙĚē îƥ Čūƙƥ îŠē îēŏƭƙƥĚē ƥĺĚƑĚîljƥĚƑ ƥū ƑĚČūijŠĿƙĚ ƙĺîƑĚ ūlj ƥĺĚ HƑūƭƎ ĿŠ ƎūƙƥȹîČƐƭĿƙĿƥĿūŠ ƎƑūǛƥ ʈ ŕūƙƙ îŠē ūƥĺĚƑ ČūŞƎƑĚĺĚŠƙĿDŽĚ ĿŠČūŞĚ ūlj ƥĺĚ ĚŠƥĿƥNjȦ 'ĿDŽĿēĚŠēƙ ƑĚČĚĿDŽĚē ūƑ ƑĚČĚĿDŽîċŕĚ ljƑūŞ îƙƙūČĿîƥĚ ČūŞƎîŠNj îŠē ŏūĿŠƥ DŽĚŠƥƭƑĚ ČūŞƎîŠNj îƑĚ ƑĚČūijŠĿƙĚē îƙ î ƑĚēƭČƥĿūŠ ĿŠ ƥĺĚ carrying amount of the investment. ØĺĚŠ ƥĺĚ HƑūƭƎ ƙĺîƑĚ ūlj ŕūƙƙĚƙ ĿŠ îŠ ĚƐƭĿƥNj îČČūƭŠƥĚē ĿŠDŽĚƙƥŞĚŠƥ ĚƐƭîŕƙ ūƑ ĚNJČĚĚēƙ Ŀƥƙ ĿŠƥĚƑĚƙƥ ĿŠ ƥĺĚ ĚŠƥĿƥNjȡ including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the other entity. ÀŠƑĚîŕĿƙĚē ijîĿŠƙ ūŠ ƥƑîŠƙîČƥĿūŠƙ ċĚƥDžĚĚŠ ƥĺĚ HƑūƭƎ îŠē Ŀƥƙ îƙƙūČĿîƥĚ ČūŞƎîŠNj îŠē ŏūĿŠƥ DŽĚŠƥƭƑĚ ČūŞƎîŠNj îƑĚ ĚŕĿŞĿŠîƥĚē ƥū ƥĺĚ ĚNJƥĚŠƥ ūlj ƥĺĚ HƑūƭƎ ĿŠƥĚƑĚƙƥ ĿŠ ƥĺĚƙĚ ĚŠƥĿƥĿĚƙȦ ÀŠƑĚîŕĿƙĚē ŕūƙƙĚƙ îƑĚ îŕƙū ĚŕĿŞĿŠîƥĚē ƭŠŕĚƙƙ ƥĺĚ transaction provides evidence of an impairment of the asset transferred. The carrying amount of equity accounted investments are tested for impairment in accordance with the policy described in (l) below. v) Changes in ownership interest The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions DžĿƥĺ ĚƐƭĿƥNj ūDžŠĚƑƙ ūlj ƥĺĚ HƑūƭƎȦ ČĺîŠijĚ ĿŠ ūDžŠĚƑƙĺĿƎ ĿŠƥĚƑĚƙƥ ƑĚƙƭŕƥƙ ĿŠ îŠ îēŏƭƙƥŞĚŠƥ ċĚƥDžĚĚŠ ƥĺĚ ČîƑƑNjĿŠij îŞūƭŠƥƙ ūlj ƥĺĚ ČūŠƥƑūŕŕĿŠij îŠē ŠūŠȹČūŠƥƑūŕŕĿŠij ĿŠƥĚƑĚƙƥƙ ƥū ƑĚǜĚČƥ ƥĺĚĿƑ ƑĚŕîƥĿDŽĚ ĿŠƥĚƑĚƙƥ ĿŠ ƥĺĚ ƙƭċƙĿēĿîƑNj ČūŞƎîŠĿĚƙȦ ŠNj ēĿljljĚƑĚŠČĚ ċĚƥDžĚĚŠ ƥĺĚ îŞūƭŠƥ ūlj ƥĺĚ îēŏƭƙƥŞĚŠƥ ƥū ŠūŠȹČūŠƥƑūŕŕĿŠij ĿŠƥĚƑĚƙƥƙ îŠē îŠNj ČūŠƙĿēĚƑîƥĿūŠ ƎîĿē ūƑ received is recognised within equity. ØĺĚŠ ƥĺĚ HƑūƭƎ ČĚîƙĚƙ ƥū ČūŠƙūŕĿēîƥĚ ūƑ ĚƐƭĿƥNj îČČūƭŠƥ ljūƑ îŠ ĿŠDŽĚƙƥŞĚŠƥ ċĚČîƭƙĚ ūlj î ŕūƙƙ ūlj ČūŠƥƑūŕȡ ŏūĿŠƥ ČūŠƥƑūŕ ūƑ ƙĿijŠĿǛČîŠƥ ĿŠǜƭĚŠČĚȡ îŠNj ƑĚƥîĿŠĚē ĿŠƥĚƑĚƙƥ ĿŠ ƥĺĚ ĚŠƥĿƥNj Ŀƙ ƑĚŞĚîƙƭƑĚē ƥū Ŀƥƙ ljîĿƑ DŽîŕƭĚ DžĿƥĺ ƥĺĚ ČĺîŠijĚ ĿŠ ČîƑƑNjĿŠij îŞūƭŠƥ ƑĚČūijŠĿƙĚē ĿŠ ƎƑūǛƥ ūƑ ŕūƙƙȦ ¹ĺĿƙ ljîĿƑ DŽîŕƭĚ ċĚČūŞĚƙ ƥĺĚ ĿŠĿƥĿîŕ ČîƑƑNjĿŠij îŞūƭŠƥ ljūƑ ƥĺĚ ƎƭƑƎūƙĚ ūlj ƙƭċƙĚƐƭĚŠƥŕNj îČČūƭŠƥĿŠij ljūƑ ƥĺĚ ƑĚƥîĿŠĚē ĿŠƥĚƑĚƙƥ îƙ îŠ îƙƙūČĿîƥĚ ČūŞƎîŠNjȡ ŏūĿŠƥ DŽĚŠƥƭƑĚ ČūŞƎîŠNj ūƑ ǛŠîŠČĿîŕ îƙƙĚƥȦ TŠ îēēĿƥĿūŠȡ any amount previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in ūƥĺĚƑ ČūŞƎƑĚĺĚŠƙĿDŽĚ ĿŠČūŞĚ îƑĚ ƑĚČŕîƙƙĿǛĚē ƥū ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙȦ Tlj ƥĺĚ ūDžŠĚƑƙĺĿƎ ĿŠƥĚƑĚƙƥ ĿŠ î ŏūĿŠƥ DŽĚŠƥƭƑĚ ČūŞƎîŠNj ūƑ îŠ îƙƙūČĿîƥĚ ČūŞƎîŠNj Ŀƙ ƑĚēƭČĚē ċƭƥ ŏūĿŠƥ ČūŠƥƑūŕ ūƑ ƙĿijŠĿǛČîŠƥ ĿŠǜƭĚŠČĚ Ŀƙ ƑĚƥîĿŠĚēȡ ūŠŕNj î ƎƑūƎūƑƥĿūŠîƥĚ ƙĺîƑĚ ūlj ƥĺĚ îŞūƭŠƥƙ ƎƑĚDŽĿūƭƙŕNj ƑĚČūijŠĿƙĚē ĿŠ ūƥĺĚƑ ČūŞƎƑĚĺĚŠƙĿDŽĚ ĿŠČūŞĚ îƑĚ ƑĚČŕîƙƙĿǛĚē ƥū ƥĺĚ ūŠƙūŕĿēîƥĚē ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙ DžĺĚƑĚ îƎƎƑūƎƑĿîƥĚȦ 188 Atul Ltd | Annual Report 2018-19 Corporate Overview 01-22 Statutory Reports 23-105 Financial Statements 107-250