Atul Ltd 2012-13

119 Notes to Consolidated financial statements ( ` cr) NOTE 27.1 CONTINGENT LIABILITIES As at March 31, 2013 As at March 31, 2012 (i) Claims against the Company not acknowledged as debts in respects of: (a) Excise 5.84 6.25 (b) Income tax 35.03 27.70 (c) Sales tax - 0.74 (d) Customs 2.78 2.78 (e) Water charges 71.92 68.63 (f) Others 13.54 13.26 1RWH )XWXUH FDVK RXWÁRZV LQ UHVSHFW RI D WR I DERYH DUH determinable on receipt of judgements | decisions pending with various forums | authorities. (ii) Guarantees given by the Company: (a) Corporate guarantee to a bank on behalf of subsidiary company for facilities availed by them 8.85 0.61 ( ` cr) NOTE 27.2 COMMITMENTS As at March 31, 2013 As at March 31, 2012 Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) 21.18 15.44 NOTE 27.3 RESEARCH AND DEVELOPMENT Details of expenditure incurred on in-house Research and Development (R&D) facilities approved by Department of 6FLHQWLÀF DQG ,QGXVWULDO 5HVHDUFK 0LQLVWU\ RI 6FLHQFH DQG 7HFKQRORJ\ *RYHUQPHQW RI ,QGLD XQGHU 6HFWLRQ $% of Income Tax Act, 1961. ( ` cr) Particulars 2012-13 2011-12 Capital expenditure 3.80 0.40 Recurring expenditure 12.88 10.48 16.68 10.88 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 gain aggregating ` 0.74 cr (Previous year loss ` 0.78 cr) arising consequently on contracts that were designated and effective as hedges of IXWXUH FDVK ÁRZV KDV EHHQ UHFRJQL]HG GLUHFWO\ LQ WKH KHGJLQJ UHVHUYH DFFRXQW $FWXDO JDLQ RU ORVV RQ H[HUFLVH RI WKHVH UDQJH IRUZDUG FRQWUDFWV RU DQ\ SDUW WKHUHRI LV UHFRJQLVHG LQ WKH 6WDWHPHQW RI 3URÀW DQG /RVV +HGJH $FFRXQWLQJ ZLOO EH GLVFRQWLQXHG LI WKH KHGJLQJ LQVWUXPHQW LV VROG WHUPLQDWHG RU QR ORQJHU TXDOLÀHV IRU +HGJH Accounting.