Company Overview Financial Statements Notice Statutory Reports 51 Rudolf Atul Chemicals Ltd | Annual Report 2020-21 to COVID-19, it has, at the date of approval of these Financial Statements, used relevant internal and external sources of information, including economic forecasts and expects that the carrying amounts of theseassetsare recoverable. The impact ofCOVID-19, including the current wave, may be different from that estimated as at the date of approval of these Financial Statements. t) Critical estimates and judgements The preparation of Financial Statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. This note provides an overview of the areas that involved a higher degree of judgements or complexity, and of items that are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the Financial Statements. The areas involving critical estimates or judgements are: • Estimation for income tax – Note 1 (o) • Estimation of defined benefit obligation – Note 1 (m) • Fair value measurements – Note 25.6 • Estimation of provision for inventories – Note 1 (j) • Allowance for credit losses on trade receivable – Note 1 (g) Estimates and judgements are continually evaluated. They are based on historical experiences and other factors, including expectations of future events that may have a financial impact on the Company and that are believedtobe reasonableunder thecircumstances.
RkJQdWJsaXNoZXIy MjA2MDI2