Atul Ltd 2016-17

Atul Ltd | Annual Report 2016-17 ( ` cr) Particulars As at March 31, 2017 Loss allowance on April 01, 2015 2.73 Changes in loss allowance 1.07 Loss allowance on March 31, 2016 3.80 Changes in loss allowance (0.64) Loss allowance on March 31, 2017 3.16 Other financial assets The Group maintains exposure in cash and cash equivalents, term deposits with banks, investments in Government securities, Preference shares and loans to subsidiary companies. The Group has diversified portfolio of investment with various number of counterparties which have secure credit ratings hence the risk is reduced. Individual risk limits are set for each counter- party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the treasury department of the Group. Impact of hedging activities a) Disclosure of effects of hedge accounting on financial position: As at March 31, 2017 ( ` cr) Type of hedge and risks Notional value Carrying amount of hedging instrument Maturity Weighted average strike price| interest rate Changes in fair value of hedging instrument Change in the value of hedged item used as the basis for recognising hedge effectiveness Assets Liabilities Assets Liabilities Cash flow hedge ` : USD $ Foreign exchange risk Foreign exchange forward contracts – 58.35 – (2.43) 1-12 months 68.06 (2.43) (2.43) Currency range options 49.60 – 1.70 – 1-12 months 67.98- 73.20 1.70 1.70 As at March 31, 2016 ( ` cr) Type of hedge and risks Notional value Carrying amount of hedging instrument Maturity Weighted average strike price| interest rate Changes in fair value of hedging instrument Change in the value of hedged item used as the basis for recognising hedge effectiveness Assets Liabilities Assets Liabilities Cash flow hedge ` : USD $ Foreign exchange risk Foreign exchange forward contracts – 53.07 – (1.33) 1-12 months 68.69 (1.33) (1.33) Currency range options 83.25 – 0.14 – 1-12 months 65.96- 73.86 0.14 0.14 Currency vanilla options 44.00 – 0.30 – 1-12 months 66.41 0.30 0.30 Interest rate risk Interest rate swaps – 2.07 – (0.01) 1-15 months 3.70 (0.01) (0.01) Notes to the Consolidated Financial Statements