Atul Ltd 2016-17

143 Note 27.12 Leases a) Operating lease The Company has taken various residential and office premises under operating lease or leave and license Agreements. These are generally cancellable, having a term between 11 months and 3 years and have no specific obligation for renewal. Payments are recognised in the Statement of Profit and Loss under 'Rent' in Note 26. b) Finance lease i) The Company has given a building on finance lease for a term of 30 years. Future minimum lease payments receivable under finance leases together with the present value of the net minimum lease payments (MLP) are as under: ( ` cr) Particulars As at March 31, 2017 As at March 31, 2016 As at April 01, 2015 Minimum lease payments Present value of MLP Minimum lease payments Present value of MLP Minimum lease payments Present value of MLP Not later than 1 year 0.20 0.20 – – 0.20 0.20 Later than 1 year and not later than 5 years 0.40 0.34 0.40 0.35 0.40 0.33 Later than 5 years 2.00 0.84 2.20 0.94 2.20 0.88 Total minimum lease payments receivable 2.60 1.38 2.60 1.29 2.80 – Less: unearned finance income 1.22 – 1.31 – 1.38 – Present value of minimum lease payments receivable 1.38 1.38 1.29 1.29 1.42 – Less: allowance for uncollectible lease payments – – – – – – 1.38 1.38 1.29 1.29 1.42 – ii) The Company has taken on lease a parcel of land from Gujarat Industrial Development Corporation for a period of 99 years with an option to extend the lease by another 99 years on expiry of lease at a rental that is 100% higher than the current rental. However, the Company has no specific obligation for renewal. The Company has considered that such a lease of land transfers substantially all of the risks and rewards incidental to ownership of land, and has thus accounted for the same as finance lease. Note 27.13 Loans Disclosures pursuant to Regulation 34(3) read with para A of Schedule V to the SEBI (Listing obligations and disclosure requirements) Regulations, 2015 read with Section 186 (4) of the Companies Act, 2013. Particulars Purpose Amount outstanding as at Maximum balance during the year March 31, 2017 March 31, 2016 April 01, 2015 2016-17 2015-16 2014-15 i) Subsidiary companies: Atul Bioscience Ltd Seed funding support as promoters 4.30 4.30 4.30 4.30 4.30 4.30 Amal Ltd * Interest free loan, pursuant to Board for Industrial and Financial Reconstruction order 7.89 9.37 7.88 7.89 9.37 7.88 Corporate guarantee: Atul Europe Ltd Facilitate trade finance – – £ 10,00,000 * At amortised cost Notes: a) Loans given to employees as per the policy of the Company are not considered. b) The loanees did not hold any shares in the Share capital of the Company. Notes to the Financial Statements