Notice Statutory Reports Company Overview Financial Statements 49 Rudolf Atul Chemicals Ltd | Annual Report 2018-19 The Company does not have any impact on account of this amendment. 02. Property, plant and equipment: Property, plant and equipment are carried at cost of acquisition | construction including incidental expenses directly attributable to the acquisition | construction activity, as the case may be, less accumulated depreciation, amortisation and impairment as necessary as per Cost Model. Depreciation: i) Depreciation is being provided on a pro-rata basis on the ‘Straight Line Method’ over the estimated useful lives of the assets. ii) Depreciation is calculated on a pro-rata basis from the date of acquisition | installation till the date the assets are sold or disposed of. iii) Useful lives of the assets as prescribed under part C of Schedule II to the Companies Act, 2013 are applied. iv) The property, plant and equipment acquired under finance leases is depreciated over the assets’ useful life or over the shorter of the asset’s useful life and the lease term if there is no reasonable certainty that the group will obtain ownership at the end of the lease term. v) The residual values are not more than 5% of the original cost of the asset. The assets’ residual values and useful lives are reviewed and adjusted if appropriate, at the end of each reporting period. 03. Intangible assets: Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortisation and impairment. Amortisation: Computer software cost is amortised over a period of six years using straight-line method. 04. Impairment of assets: The carrying amounts of assets are reviewed at each Balance Sheet date to assess if there is any indication of impairment based on internal | external factors. An impairment loss on such assessment will be recognisedwherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount of the assets is net selling price or value in use whichever is higher. While assessing value in use, the estimated future cash flows are discounted to the present value by using weighted average cost of capital. A previously recognised impairment loss is further provided or reversed depending on changes in the circumstances. 05. Cash and cash equivalents: Cash and cash equivalents include cash in hand, demand deposits with bank and other short-term (three months or less from the date of acquisition), highly liquid investments that are readily convertible into cash and which are subject to an insignificant risk of changes in value. 06. Trade receivables: Trade receivables are initially recognised at fair value. Subsequently, these assets are held at amortised cost, using the effective interest rate (EIR) method, less provision for impairment based on expected credit loss. 07. Trade and other payables: These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the EIR method.
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