Company Overview Financial Statements Notice Statutory Reports 49 Rudolf Atul Chemicals Ltd | Annual Report 2022-23 by using weighted average cost of capital. A previously recognised impairment loss is further provided or reversed depending on changes in the circumstances and to the extent that the carrying amount of the assets does not exceed the carrying amount that will be determined if no impairment loss had previously been recognised. f) 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. g) Trade receivable Trade receivables are recognised at the amount of transaction price (net of variable consideration) when the r ight to considerat ion becomes unconditional. These assets are held at amortised cost, using the effective interest rate (EIR) method where applicable, less provision for impairment based on expected credit loss. Trade receivables overdue more than 180 days are considered in which there is significant increase in credit risk. h) 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. i) Borrowing costs Borrowing costs in relation to acquisition and construction of qualifying assets are capitalised as part of cost of such assets up to the datewhen such assets are ready for intended use. Qualifying assets are assets that necessarily take a substantial period of time to get ready for its intended use or sale. Other borrowing costs are charged as expense in the year in which these are incurred. j) Inventories i) Rawmaterials, packingmaterials, purchased finished goods, finished goods, fuel, stores and spares are valued at cost and net realisable value, whichever is lower. The cost is arrived at on periodic moving weighted average basis. ii) Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventory to the present location and condition. iii) Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to effect the sale. iv) Obsolete, defective, unserviceable and slow | non-moving inventories are duly provided for and valued at net realisable value. v) Items such as spare par ts, stand-by equipment and servicing equipment that are not plant and machinery get classified as inventory. k) Foreign currency transactions i) Functional and presentation currency Items included in the Financial Statements of the Company are measured using the currency of the primary economic environment inwhich theCompany operates ( ‘ funct ional currency’ ) . The Financial Statements of the Company are presented in Indian currency (`), which is also the functional and presentation currency of the Company. ii) Transactions and balances Fore i gn cur rency t ransac t i ons are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gain | (loss) resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are general ly recognised in the Statement of Profit and Loss except that
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