Atul Ltd 2018-19

Spare parts, stand-by equipment and servicing equipment are recognised as property, plant and equipment if they are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes and are ĚǊƎĚČƥĚē ƥū ċĚ ƭƙĚē ēƭƑĿŠij ŞūƑĚ ƥĺîŠ ūŠĚ ƎĚƑĿūēȦ Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as ‘Capital work-in-progress’. 'ĚƎƑĚČĿîƥĿūŠ ŞĚƥĺūēƙȡ ĚƙƥĿŞîƥĚē ƭƙĚljƭŕ ŕĿǄĚƙ îŠē ƑĚƙĿēƭîŕ ǄîŕƭĚȠ Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their ĚƙƥĿŞîƥĚē ƭƙĚljƭŕ ŕĿǄĚƙ ūƑȡ ĿŠ ƥĺĚ ČîƙĚ ūlj ČĚƑƥîĿŠ ŕĚîƙĚē ljƭƑŠĿƥƭƑĚȡ ǛƥƥĿŠijƙ îŠē ĚƐƭĿƎŞĚŠƥȡ ƥĺĚ ƙĺūƑƥĚƑ ŕĚîƙĚ ƥĚƑŞ ūlj ƭƙĚljƭŕ lives are as follows: Asset category Estimated useful life Buildings 30 to 60 years Roads 5 years Plant and equipment 1 6 to 20 years ~ljǛČĚ ĚƐƭĿƎŞĚŠƥ îŠē ljƭƑŠĿƥƭƑĚ 5 to 10 years Vehicles 1 6 to 10 years Bearer plant 1 ǪǦ ǋĚîƑƙ 1 ¹ĺĚ ƭƙĚljƭŕ ŕĿǄĚƙ ĺîǄĚ ċĚĚŠ ēĚƥĚƑŞĿŠĚē ċîƙĚē ūŠ ƥĚČĺŠĿČîŕ ĚǄîŕƭîƥĿūŠ ēūŠĚ ċǋ ƥĺĚ qîŠîijĚŞĚŠƥ ĚǊƎĚƑƥƙ ǅĺĿČĺ îƑĚ ēĿljljĚƑĚŠƥ ljƑūŞ ƥĺĚ ƭƙĚljƭŕ ŕĿljĚ ƎƑĚƙČƑĿċĚē ĿŠ ¡îƑƥ ūlj ¬ČĺĚēƭŕĚ TT ƥū ƥĺĚ Čƥȡ ĿŠ ūƑēĚƑ ƥū ƑĚǜĚČƥ ƥĺĚ îČƥƭîŕ ƭƙîijĚ ūlj ƥĺĚ îƙƙĚƥƙȦ The residual values are not more than 5% of the original cost of the asset. The residual value, useful live and method of ēĚƎƑĚČĿîƥĿūŠ ūlj ƎƑūƎĚƑƥǋȡ ƎŕîŠƥ îŠē ĚƐƭĿƎŞĚŠƥ îƑĚ ƑĚǄĿĚǅĚē îŠŠƭîŕŕǋ îŠē îēŏƭƙƥĚē ƎƑūƙƎĚČƥĿǄĚŕǋȡ Ŀlj îƎƎƑūƎƑĿîƥĚȦ ¹ĺĚ ƎƑūƎĚƑƥǋȡ ƎŕîŠƥ îŠē ĚƐƭĿƎŞĚŠƥ ĿŠČŕƭēĿŠij ŕîŠē îČƐƭĿƑĚē ƭŠēĚƑ ǛŠîŠČĚ ŕĚîƙĚƙ îƑĚ ēĚƎƑĚČĿîƥĚē ūǄĚƑ ƥĺĚ ƭƙĚljƭŕ ŕĿljĚ ūlj ƥĺĚ asset or over the shorter of the useful life of the asset and the lease term if there is no reasonable certainty that the Group will obtain ownership at the end of the lease term. The carrying amount of an asset is written down immediately to its recoverable amount if the carrying amount of the asset is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the ūŠƙūŕĿēîƥĚē ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙ ǅĿƥĺĿŠ ūƥĺĚƑ ĿŠČūŞĚȦ ŏȴ HūūēǅĿŕŕȠ HūūēǅĿŕŕ ƑĚƎƑĚƙĚŠƥƙ ƥĺĚ Čūƙƥ ūlj ƥĺĚ îČƐƭĿƑĚē ċƭƙĿŠĚƙƙĚƙ ʈ ƙƭċƙĿēĿîƑǋ ĿŠ ĚǊČĚƙƙ ūlj ƥĺĚ ljîĿƑ ǄîŕƭĚ ūlj ĿēĚŠƥĿǛîċŕĚ ŠĚƥ assets acquired. Goodwill is not amortised but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill of the entity sold. Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those ČîƙĺȹijĚŠĚƑîƥĿŠij ƭŠĿƥƙ ūƑ ijƑūƭƎƙ ūlj ČîƙĺȹijĚŠĚƑîƥĿŠij ƭŠĿƥƙ ƥĺîƥ îƑĚ ĚǊƎĚČƥĚē ƥū ċĚŠĚǛƥ ljƑūŞ ƥĺĚ ċƭƙĿŠĚƙƙ ČūŞċĿŠîƥĿūŠ ĿŠ ǅĺĿČĺ ƥĺĚ ijūūēǅĿŕŕ îƑūƙĚȦ ¹ĺĚ ƭŠĿƥƙ ūƑ ijƑūƭƎƙ ūlj ƭŠĿƥƙ îƑĚ ĿēĚŠƥĿǛĚē îƥ ƥĺĚ ŕūǅĚƙƥ ŕĚǄĚŕ îƥ ǅĺĿČĺ ijūūēǅĿŕŕ Ŀƙ ŞūŠĿƥūƑĚē ljūƑ internal Management purposes. Œȴ ~ƥĺĚƑ ĿŠƥîŠijĿċŕĚ îƙƙĚƥƙȠ Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any. TŠƥĚƑŠîŕŕǋ ijĚŠĚƑîƥĚē ĿŠƥîŠijĿċŕĚƙȡ ĚǊČŕƭēĿŠij ČîƎĿƥîŕĿƙĚē ēĚǄĚŕūƎŞĚŠƥ Čūƙƥƙȡ îƑĚ Šūƥ ČîƎĿƥîŕĿƙĚē îŠē ƥĺĚ ƑĚŕîƥĚē ĚǊƎĚŠēĿƥƭƑĚ Ŀƙ ƑĚǜĚČƥĚē ĿŠ ƎƑūǛƥ ūƑ ŕūƙƙ ĿŠ ƥĺĚ ƎĚƑĿūē ĿŠ ǅĺĿČĺ ƥĺĚ ĚǊƎĚŠēĿƥƭƑĚ Ŀƙ ĿŠČƭƑƑĚēȦ Š ĿŠƥîŠijĿċŕĚ îƙƙĚƥ Ŀƙ ēĚƑĚČūijŠĿƙĚē ūŠ ēĿƙƎūƙîŕȡ ūƑ ǅĺĚŠ Šū ljƭƥƭƑĚ ĚČūŠūŞĿČ ċĚŠĚǛƥƙ îƑĚ ĚǊƎĚČƥĚē ljƑūŞ ƭƙĚ ūƑ ēĿƙƎūƙîŕȦ Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal ƎƑūČĚĚēƙ îŠē ƥĺĚ ČîƑƑǋĿŠij îŞūƭŠƥ ūlj ƥĺĚ îƙƙĚƥȡ îƑĚ ƑĚČūijŠĿƙĚē ĿŠ ƥĺĚ ūŠƙūŕĿēîƥĚē ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙ ǅĺĚŠ ƥĺĚ asset is derecognised. Consolidated | Notes to the Financial Statements 193