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AMINES & PLASTICIZERS LTD

NOTES FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2019

iii. Goodwill/CapitalReserve,ifany,representsthedifferencebetweentheHoldingCompany’sshareinthe
net worth of subsidiaries and the cost of acquisition at each point of time of making the investment in
thesubsidiaries.

iv. The Consolidated Financial Statements have been prepared using uniform accounting policies for like
transactionsandothereventsinsimilarcircumstances.

v. The carrying amount of the parent’s investment in subsidiaries are offset (eliminated) against the
parent’sportionofequityinsubsidiaries.

vi. Non-Controlling Interest’s share of profit / loss of consolidated subsidiaries for the year is identified and
adjusted against the income of the Group in order to arrive at the net income attributable to
shareholdersoftheHoldingCompany.
vii. Non-Controlling Interest’s share of net assets of consolidated subsidiaries are identified and presented
intheConsolidatedBalanceSheet.
d. Recentaccountingdevelopments
i. Ind AS 116, Leases - On 30th March 2019, the Ministry of Corporate Affairs (MCA) has notified the
Companies (Indian Accounting Standards) Amended Rules, 2019 (“amended rules”) which the
Group hasnotappliedastheyeffectiveforannualperiodsbeginningonorafterApril01,2019.
ii IndAS116“Leases”eliminatestheclassificationofleasesaseitherfinanceleasesoroperatingleases.
Allleasesarerequiredtobereportedonanentity’sbalancesheetasassetsandliabilities.Leasesare
capitalized by recognizing the present value of the lease payments and showing them either as
right of use of the leased assets or together with property,plant and equipment.If lease payments
aremadeovertimeafinancialliabilityrepresentingthefutureobligationwouldberecognised.
e. Property,Plant&Equipment&IntangibleAssets:
i. Property,Plant&Equipment

AnitemofProperty,plantandequipmentisrecognizedasanassetifitisprobablethatfutureeconomic
benefits associated with the item will flow to the Group and its cost can be measured reliably.property,
plant and equipment are initially recognized at cost after deducting refundable purchase taxes and
including the cost directly attributable to bring the asset to the location and conditions necessary for it
to be capable of operating in the manner intended by the management,borrowing cost in accordance
withtheestablishedaccountingpolicy, cost of restoring and dismantling, if any, initially estimated by
the management. Freehold Land is carried at historical cost. All Other items of Property, Plant &
Equipment are stated at historical cost less depreciation. Historical Cost includes expenditure that is
directly attributable to the acquisition of the items.After the initial recognition the property,plant and
equipmentarecarriedatcostlessaccumulateddepreciationandimpairmentlosses.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as
appropriate,onlywhenandthecostoftheitem.

All other repairs and maintenance costs,including regular servicing are recognized in the Statement of
ProfitandLossasincurred.

In case of self-constructed assets, cost includes the costs of all materials used in construction, direct
labour,allocation of overheads,directly attributable borrowing costs.Cost of Self-constructed assets is
determined using the same principles as for acquired assets after eliminating the component of
internalprofits.
Any gain or loss arising on retirement or disposal of property,plant and equipment is recognized in the
StatementofProfitandLoss.

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CONSOLIDATED NOTES TO THE ACCOUNTS