Notice Statutory Reports Company Overview Financial Statements 47 Rudolf Atul Chemicals Ltd | Annual Report 2018-19 Notes to the Financial Statements Background Rudolf Atul Chemicals Ltd (the Company) is a limited company incorporated and domiciled in India. It is a joint venture company of Rudolf GmbH and Atul Ltd, engaged in manufacturing and marketing of textile chemicals in India. The Company is effectively leveraging the strengths of Rudolf GmbH and Atul Ltd in serving its customers by becoming a total solution provider and is thereby helping the two partners to participate in the growing marketplace. The registered office of the Company is located at B | 18598, Survey number 33, Atul 396 020, Gujarat, India. Note 1 Significant accounting policies This Note provides a list of the significant accounting policies adopted by the Company in the preparation of these Financial Statements. These policies have been consistently applied to all the years presented, unless otherwise stated. 01. Basis of preparation: i) Compliance with Ind AS: The Financial Statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) read with {Companies (Indian Accounting Standards) Rules, 2015} and other relevant provisions of the Act as amended. ii) Historical cost convention: The Financial Statements have been prepared on a historical cost basis except for the following: a) Certain financial assets and liabilities are measured at fair value. b) Defined benefit plans: plan assets measured at fair value. All the assets and liabilities have been classified as current or non-current as per the normal operating cycle of the Company and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities. iii) Recent accounting pronouncements: Standard issued, but not yet effective: IndAS116 Leases: OnMarch30, 2019, the Ministry of Corporate Affairs has notified Ind AS 116, Leases. Ind AS 116will replace the existing leases Standard, Ind AS 17 Leases and related interpretations. The Standard sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract i.e., the lessee and the lessor. Ind AS 116 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Currently, operating lease expenses are charged to the Statement of Profit and Loss. The Standard also contains enhanced disclosure requirements for lessees. Ind AS 116 substantially carries forward the lessor accounting requirements in Ind AS 17. The effective date for adoption of Ind AS 116 is annual periods beginning on or after April 01, 2019. The standard permits two possible methods of transition: a) Full retrospective – retrospectively to each prior period presented applying Ind AS 8 of Accounting Policies, Changes in Accounting Estimates and Errors b) Modified retr ospective – retrospectively, with the cumulative effect of initially applying the Standard recognized at the date of initial application
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