Company Overview Financial Statements Notice Statutory Reports 49 Rudolf Atul Chemicals Ltd | Annual Report 2023-24 i) Borrowing costs Borrowing costs in relation to the acquisition and construction of qualifying assets are capitalised as part of the cost of such assets up to the date when such assets are ready for the intended use. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their 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 either cost or 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 its 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) Obso l ete , defec t i ve , unser v i ceab l e and slow | non-moving inventories are duly provided for and valued at net realisable value. v) Items such as spare par ts, stand-by equipments and servicing equipments 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 they are deferred in other equity if they relate to qualifying cash flow hedges. Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the Statement of Profit and Loss, within finance costs. All other foreign exchange gain | (loss) presented in the Statement of Profit and Loss are on a net basis within other income. Non-monetary items that are measured at fair value and are denominated in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain | (loss). Non-monetary items that are measured in terms of historical cost in a foreign currency are not revalued. l) Revenue recognition i) Revenue from operations Revenue is recognised when the control of goods is transferred to a customer in accordance with the terms of the contract. The control of the goods is transferred upon delivery to the customers either at the factory gate of the Company, the customer’s location or when the goods are handed over to the freight carrier, as per the terms of the contract. A receivable is recognised by the Company when the goods are delivered to the customer as this represents the point in time at which the right to consideration
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