145 Notes to the Consolidated Financial Statements Background Amal Ltd (the Company) is a public company limited by shares, incorporated and domiciled in India. The Company is a subsidiary of Atul Ltd. Its shares are listed on the Bombay Stock Exchange (‘BSE’) in India. Its registered office is located at Atul House, 310 B, Veer Savarkar Marg, Dadar (West), Mumbai 400 028, Maharashtra, India and its principal place of business is located at Ankleshwar 393 002, Gujarat, India. The Company and its subsidiary company are referred to as Group hereunder. The Group is engaged in the manufacturing of bulk chemicals such as Sulphuric acid and Oleum and their downstream products such as Sulphur dioxide and Sulphur trioxide. Note 1 Material accounting policies This Note provides a list of the material accounting policies adopted by the Group in preparation of these Consolidated Financial Statements. These policies have been consistently applied to all the years presented unless otherwise stated. The Consolidated Financial Statements are for the Group consisting of the Company and its subsidiary company. a) Statement of compliance The Consolidated Financial Statements comply in all material respects 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 Consolidated Financial Statements have been prepared on a historical cost basis except for the following: • Certain financial assets and liabilities (including derivative instruments): measured at fair value • Defined benefit plans: plan assets measured at fair value ii) The Consolidated Financial Statements have been prepared on an accrual and going concern basis. iii) The accounting policies are applied consistently to all the periods presented in the Consolidated Financial Statements. All assets and liabilities have been classified as current or non-current as per the normal operating cycle of the Group and other criteria as set out in Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Group has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities. iv) Recent accounting pronouncements: The Ministry of Corporate Affairs (MCA) notifies new standards or amendments to the existing standards. As of April 01, 2024, there have been no such notifications applicable. c) Basis of consolidation A subsidiary company is an entity over which the Group has control. The Group controls an entity when the
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