Atul Ltd 2018-19

/ƐƭĿƥNj ĿŠƙƥƑƭŞĚŠƥƙȠ The Group subsequently measures all investments in equity instruments at fair value. The Management of the Group has elected to present fair value gains and losses on its investment equity instruments in other comprehensive income, and ƥĺĚƑĚ Ŀƙ Šū ƙƭċƙĚƐƭĚŠƥ ƑĚČŕîƙƙĿǛČîƥĿūŠ ūlj ƥĺĚƙĚ ljîĿƑ DŽîŕƭĚ ijîĿŠƙ îŠē ŕūƙƙĚƙ ƥū ƥĺĚ ūŠƙūŕĿēîƥĚē ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙȦ 'ĿDŽĿēĚŠēƙ ljƑūŞ ƙƭČĺ ĿŠDŽĚƙƥŞĚŠƥƙ ČūŠƥĿŠƭĚ ƥū ċĚ ƑĚČūijŠĿƙĚē ĿŠ ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙ îƙ ūƥĺĚƑ ĿŠČūŞĚ when the right to receive payment is established. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value. TŞƎîĿƑŞĚŠƥ ūlj ǛŠîŠČĿîŕ îƙƙĚƥƙȠ ¹ĺĚ HƑūƭƎ îƙƙĚƙƙĚƙ ūŠ î ljūƑDžîƑē ŕūūŒĿŠij ċîƙĿƙ ƥĺĚ ĚNJƎĚČƥĚē ČƑĚēĿƥ ŕūƙƙĚƙ îƙƙūČĿîƥĚē DžĿƥĺ Ŀƥƙ ǛŠîŠČĿîŕ îƙƙĚƥƙ ČîƑƑĿĚē îƥ amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a ƙĿijŠĿǛČîŠƥ ĿŠČƑĚîƙĚ ĿŠ ČƑĚēĿƥ ƑĿƙŒȦ GūƑ ƥƑîēĚ ƑĚČĚĿDŽîċŕĚ ūŠŕNjȡ ƥĺĚ HƑūƭƎ îƎƎŕĿĚƙ ƥĺĚ ƙĿŞƎŕĿǛĚē îƎƎƑūîČĺ ƎĚƑŞĿƥƥĚē ċNj TŠē ¬ ǧǦǯ GĿŠîŠČĿîŕ TŠƙƥƑƭŞĚŠƥƙȡ DžĺĿČĺ ƑĚƐƭĿƑĚƙ ĚNJƎĚČƥĚē ŕĿljĚƥĿŞĚ ŕūƙƙĚƙ ƥū ċĚ ƑĚČūijŠĿƙĚē ljƑūŞ ĿŠĿƥĿîŕ ƑĚČūijŠĿƥĿūŠ ūlj ƙƭČĺ ƑĚČĚĿDŽîċŕĚƙȦ 'ĚƑĚČūijŠĿƥĿūŠȠ ǛŠîŠČĿîŕ îƙƙĚƥ Ŀƙ ēĚƑĚČūijŠĿƙĚē ūŠŕNj DžĺĚŠ ƥĺĚ HƑūƭƎȠ Ŀȴ ĺîƙ ƥƑîŠƙljĚƑƑĚē ƥĺĚ ƑĿijĺƥƙ ƥū ƑĚČĚĿDŽĚ Čîƙĺ ǜūDžƙ ljƑūŞ ƥĺĚ ǛŠîŠČĿîŕ îƙƙĚƥ ūƑȡ ĿĿȴ ƥĺĚ ƑĿijĺƥƙ ƥū Čîƙĺ ǜūDž ljƑūŞ ƥĺĚ îƙƙĚƥ ĚNJƎĿƑĚ ūƑȡ ĿĿȴ ƑĚƥîĿŠƙ ƥĺĚ ČūŠƥƑîČƥƭîŕ ƑĿijĺƥƙ ƥū ƑĚČĚĿDŽĚ ƥĺĚ Čîƙĺ ǜūDžƙ ūlj ƥĺĚ ǛŠîŠČĿîŕ îƙƙĚƥȡ ċƭƥ îƙƙƭŞĚƙ î ČūŠƥƑîČƥƭîŕ ūċŕĿijîƥĿūŠ ƥū ƎîNj ƥĺĚ Čîƙĺ ǜūDžƙ ƥū ūŠĚ ūƑ ŞūƑĚ ƑĚČĿƎĿĚŠƥƙȦ Where the entity has transferred an asset, theGroup evaluateswhether it has transferred substantially all risks and rewards ūlj ūDžŠĚƑƙĺĿƎ ūlj ƥĺĚ ǛŠîŠČĿîŕ îƙƙĚƥȦ TŠ ƙƭČĺ ČîƙĚƙȡ ƥĺĚ ǛŠîŠČĿîŕ îƙƙĚƥ Ŀƙ ēĚƑĚČūijŠĿƙĚē ƥĺƑūƭijĺ ūŠƙūŕĿēîƥĚē ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙ ūƑ ūƥĺĚƑ ČūŞƎƑĚĺĚŠƙĿDŽĚ ĿŠČūŞĚ îƙ îƎƎŕĿČîċŕĚȦ ØĺĚƑĚ ƥĺĚ ĚŠƥĿƥNj ĺîƙ Šūƥ ƥƑîŠƙljĚƑƑĚē ƙƭċƙƥîŠƥĿîŕŕNj îŕŕ ƑĿƙŒƙ îŠē ƑĚDžîƑēƙ ūlj ūDžŠĚƑƙĺĿƎ ūlj ƥĺĚ ǛŠîŠČĿîŕ îƙƙĚƥȡ ƥĺĚ ǛŠîŠČĿîŕ îƙƙĚƥ Ŀƙ Šūƥ ēĚƑĚČūijŠĿƙĚēȦ ØĺĚƑĚ ƥĺĚ ĚŠƥĿƥNj ĺîƙ ŠĚĿƥĺĚƑ ƥƑîŠƙljĚƑƑĚē î ǛŠîŠČĿîŕ îƙƙĚƥ ŠūƑ ƑĚƥîĿŠƙ ƙƭċƙƥîŠƥĿîŕŕNj îŕŕ ƑĿƙŒƙ îŠē ƑĚDžîƑēƙ ūlj ūDžŠĚƑƙĺĿƎ ūlj ƥĺĚ ǛŠîŠČĿîŕ îƙƙĚƥȡ ƥĺĚ ǛŠîŠČĿîŕ îƙƙĚƥ Ŀƙ ēĚƑĚČūijŠĿƙĚē Ŀlj ƥĺĚ HƑūƭƎ ĺîƙ Šūƥ ƑĚƥîĿŠĚē ČūŠƥƑūŕ ūlj ƥĺĚ ǛŠîŠČĿîŕ îƙƙĚƥȦ ØĺĚƑĚ ƥĺĚ HƑūƭƎ ƑĚƥîĿŠƙ ČūŠƥƑūŕ ūlj ƥĺĚ ǛŠîŠČĿîŕ îƙƙĚƥȡ ƥĺĚ îƙƙĚƥ Ŀƙ ČūŠƥĿŠƭĚē ƥū ċĚ ƑĚČūijŠĿƙĚē ƥū ƥĺĚ ĚNJƥĚŠƥ ūlj ČūŠƥĿŠƭĿŠij ĿŠDŽūŕDŽĚŞĚŠƥ ĿŠ ƥĺĚ ǛŠîŠČĿîŕ îƙƙĚƥȦ ƙȴ GĿŠîŠČĿîŕ ŕĿîċĿŕĿƥĿĚƙȠ Ŀȴ ŕîƙƙĿǛČîƥĿūŠ îƙ ēĚċƥ ūƑ ĚƐƭĿƥNjȠ GĿŠîŠČĿîŕ ŕĿîċĿŕĿƥĿĚƙ îŠē ĚƐƭĿƥNj ĿŠƙƥƑƭŞĚŠƥƙ ĿƙƙƭĚē ċNj ƥĺĚ HƑūƭƎ îƑĚ ČŕîƙƙĿǛĚē îČČūƑēĿŠij ƥū ƥĺĚ ƙƭċƙƥîŠČĚ ūlj ƥĺĚ ČūŠƥƑîČƥƭîŕ îƑƑîŠijĚŞĚŠƥƙ ĚŠƥĚƑĚē ĿŠƥū îŠē ƥĺĚ ēĚǛŠĿƥĿūŠƙ ūlj î ǛŠîŠČĿîŕ ŕĿîċĿŕĿƥNj îŠē îŠ ĚƐƭĿƥNj ĿŠƙƥƑƭŞĚŠƥȦ ii) Initial recognition and measurement: Financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at fair value. iii) Subsequent measurement: Financial liabilities are subsequently measured at amortised cost using the effective interest rate method. Financial ŕĿîċĿŕĿƥĿĚƙ ČîƑƑĿĚē îƥ ljîĿƑ DŽîŕƭĚ ƥĺƑūƭijĺ ƎƑūǛƥ ūƑ ŕūƙƙ îƑĚ ŞĚîƙƭƑĚē îƥ ljîĿƑ DŽîŕƭĚ DžĿƥĺ îŕŕ ČĺîŠijĚƙ ĿŠ ljîĿƑ DŽîŕƭĚ ƑĚČūijŠĿƙĚē ĿŠ ƥĺĚ ūŠƙūŕĿēîƥĚē ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙȦ iv) Derecognition: ǛŠîŠČĿîŕ ŕĿîċĿŕĿƥNj Ŀƙ ēĚƑĚČūijŠĿƙĚē DžĺĚŠ ƥĺĚ ūċŕĿijîƥĿūŠ ƙƎĚČĿǛĚē ĿŠ ƥĺĚ ČūŠƥƑîČƥ Ŀƙ ēĿƙČĺîƑijĚēȡ ČîŠČĚŕŕĚē ūƑ ĚNJƎĿƑĚƙȦ ƥȴ ~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. 196 Atul Ltd | Annual Report 2018-19 Corporate Overview 01-22 Statutory Reports 23-105 Financial Statements 107-250