Atul Ltd 2013-14

127 ( ` cr) NOTE 27.1 CONTINGENT LIABILITIES As at March 31, 2014 As at March 31, 2013 (i) Claims against the Company not acknowledged as debts in respects of: (a) Excise 7.21 5.84 (b) Income tax 28.10 35.03 (c) Sales tax 0.67 – (d) Customs 2.78 2.78 (e) Water charges 77.03 71.92 (f) Others 14.64 13.54 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 Company: Corporate guarantee to a bank on behalf of subsidiary Company for facilities availed by it 10.73 8.85 ( ` cr) NOTE 27.2 COMMITMENTS As at March 31, 2014 As at March 31, 2013 Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) 23.57 21.18 NOTE 27.3 RESEARCH AND DEVELOPMENT Details of expenditure incurred on in-house Research and Development facilities approved by Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India under Section 35 (2AB) of Income tax Act, 1961. ( ` cr) Particulars 2013-14 2012-13 Capital expenditure 7.23 3.80 Recurring expenditure 16.68 12.88 23.91 16.68 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 ` 1.54 cr (Previous year gain ` 0.74 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 Consolidated 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 the Consolidated Financial Statements