Atul Ltd 2010-11

Atul Ltd | Annual Report 2010-11 ( ` crores) SCHEDULE 16 NOTES FORMING PART OF THE CONSOLIDATED ACCOUNTS 2010-11 2009-10 1 Contingent liabilities not provided for in respect of (a) Disputed excise demands - matter under appeal 21.89 13.92 (b) Disputed customs demands - matter under appeal 16.68 11.99 (c) Disputed water charges - matter under appeal 65.50 61.96 Pursuant to the order passed by Honourable High Court of Gujarat, dated November 17, 2008 and April 17, 2009 in case of disputed water charges, the Company has created first charge over its certain land & buildings in favour of Government of Gujarat. (d) Claims against the Company not acknowledged as debts 11.96 11.52 (e) Income tax demands (including interest) - matter under appeal 25.50 18.72 (f) Sales tax - matter under appeal 0.74 1.31 (g) Guarantees given by the Company’s bankers (guarantees have been given by the bankers of the company in the normal course of business and are not expected to result in any liability on the Company) 43.11 24.75 Note: Future cash outflows in respect of (a) to (f) above are determinable on receipt of judgements | decisions pending with various forums | authorities. 2 Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) 19.70 2.30 3 Payments to Auditors (a) Statutory Auditors: (i) As Auditors 0.27 0.33 (ii) In other capacity: For tax audit 0.06 0.06 For other matters 0.25 0.13 (iii) For expenses 0.01 0.02 0.59 0.54 (b) Cost Auditors: (i) As Auditors 0.02 0.02 (ii) For expenses ` 11,391 (Previous year ` 7,443) - - 0.02 0.02 Schedules forming part of the Consolidated accounts 4 Financial derivatives hedging transactions Pursuant to the announcement issued by the Institute of Chartered Accountants of India datedMarch 29, 2008 in respect of forward exchange contracts and currency and interest rate swaps, the Company has applied the Hedge Accounting principles set out in the Accounting Standard (AS) 30 ‘Financial Instruments: Recognition and Measurement’. Accordingly, range forward contracts are marked to market and the loss aggregating ` 5.09 crores (Previous year ` 15.03 crores) arising consequently on contracts that were designated and effective as hedges of future cash flows has been recognized directly in the hedging reserve account. Actual gain or loss on exercise of these range forward contracts or any part thereof is recognised in the Profit & Loss account. Hedge accounting will be discontinued if the hedging instrument is sold, terminated or no longer qualifies for hedge accounting.