Company Overview Financial Statements Notice Statutory Reports 45 Rudolf Atul Chemicals Ltd | Annual Report 2020-21 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. a) Statement of compliance 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 Rule 3 of the [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act, as amended. b) Basis of preparation i) Historical cost convention: The Financial Statements have been prepared on a historical cost basis except for the following: a) Certain financial assets and liabilities: measured at fair value b) Defined benefit plans: plan assets measured at fair value The accounting policies are applied consistently to all the periods presented in the Financial Statements. All assets and liabilities have been classified as current or non-current as per the normal operating cycle of the Company and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of productsand the timebetweenacquisition 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 or noncurrent classification of assets and liabilities. ii) The Financial Statements have been prepared on accrual and going concern basis. iii) New and amended standards adopted by the Company The Company has applied the following amendments to Ind AS for the first time for its annual reporting period commencing April 01, 2020: • Definition of material – amendments to Ind AS 1 and Ind AS 8 • Definition of a business – amendments to Ind AS 103 • COVID-19 related concessions – amendments to Ind AS 116 • Interest Rate Benchmark Reform – amendments to Ind AS 109 and Ind AS 107 The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods. iv) Recent accounting pronouncements: The Ministry of Corporate Affairs (MCA) notifies new standards or amendments to the existing standards. There is no such notification that will be applicable from April 01, 2021. c) 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.
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