Amal Ltd 2016-17

59 Notes to the Financial Statements Background Amal Ltd (the Company) is a public company limited by shares, incorporated and domiciled in India. The registered office of the Company is located at Atul House, 310-B Veer Savarkar Marg, Mumbai 400 028, Maharashtra, India and principal places of business is Ankleshwar 393 002, Gujarat, India. The Company is engaged in the manufacturing of bulk chemicals (Sulphuric Acid | Oleum | Sulphur Dioxide | Sulphur Trioxide). 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) Basis of preparation: i) Compliance with Ind AS: 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) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act. The Financial Statements up to year ended March 31, 2016 were prepared in accordance with Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Companies Act, 2013. These Financial Statements are the first Financial Statements of the Company under Ind AS. refer note 32 for an explanation of how the transition from previously applicable Indian GAAP (hereinafter referred to as ‘IGAAP’) has affected the Company’s financial position, financial performance and cash flows. ii) Historical cost convention: The Financial Statements have been prepared on a historical cost basis, except for the following: • certain financial liabilities that are measured at fair value, • defined benefit plans - plan assets measured at fair value b) 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 in which the company operates (‘the functional currency’). The Financial Statements of the Company are presented in Indian currency (INR), which is also the presentation currency of the Company. ii) Transactions and balances: Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactionsandfromthetranslationofmonetaryassetsandliabilitiesdenominatedinforeigncurrencies at year end exchange rates are generally recognised in profit or loss. They are deferred in equity if they relate to qualifying cash flow hedges or are attributable to part of the net investment in a foreign operation. 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 gains and losses are presented in the statement of profit and loss on a net basis within other income | (expense). Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets