Atul Ltd 2011-12

Atul Ltd | Annual Report 2011-12 ( ` cr) NOTE 27.1 CONTINGENT LIABILITIES 2011-12 2010-11 (i) Claims against the Company not acknowledged as debts in respects of: (a) Excise 6.25 5.73 (b) Income tax 27.70 25.50 (c) Sales tax 0.74 0.74 (d) Customs 2.78 - (e) Water charges 68.63 65.50 (f) Others 13.26 11.00 Note: Future cash outflows in respect of (a) to (f) above are determinable on receipt of judgements | decisions pending with various forums | authorities. (ii) Guarantees given by the bankers of the Company: (a) 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 - 9.50 (b) Corporate guarantee given to bank for facilities availed 0.61 - ( ` cr) NOTE 27.2 COMMITMENTS 2011-12 2010-11 Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) 13.97 19.70 ( ` cr) NOTE 27.3 RESEARCH & DEVELOPMENT 2011-12 2010-11 Capital expenditure 0.40 1.06 Recurring expenditure 10.48 7.76 10.88 8.82 NOTE 27.4 FINANCIAL DERIVATIVES HEDGING TRANSACTIONS: Pursuant to the announcement issued by the Institute of Chartered Accountants of India dated March 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-30 ‘Financial Instruments: Recognition and Measurement’. Accordingly, range forward contracts are marked to market and the loss aggregating ` 0.78 cr (Previous year ` 5.09 cr) arising consequently on contracts that were designated and effective as hedges of future cash flows has been recognised 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 Statement of Profit and Loss. Hedge Accounting will be discontinued if the hedging instrument is sold, terminated or no longer qualifies for Hedge Accounting. Notes to Consolidated financial statements