Atul Ltd 2019-20

125 Standalone | Notes to the Financial Statements Nature and purpose of other reserves a) Securities premium Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013. b) General reserve General reserve represents amount appropriated out of retained earnings pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013. c) Retained earnings Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, any transfers from or to other comprehensive income, dividends or other distributions paid to shareholders. d) FVOCI equity instruments The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity instruments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are de-recognised. e) Cash flow hedging reserve The Company uses hedging instruments as part of its management of foreign currency risk associated with its highly probable forecast sale and inventory purchases and interest rate risk associated with variable interest rate borrowings. For hedging foreign currency risk, the Company uses foreign currency forward contracts, foreign currency option contracts and interest rate swaps. They are designated as cash flow hedges to the extent these hedges are effective, the change in fair value of the hedging instrument is recognised in the cash flow hedging reserve. Amounts recognised in the cash flow hedging reserve is reclassified to profit or loss when the hedged item affects profit or loss (for example, sales and interest payments). When the forecast transaction results in the recognition of a non-financial asset (for example, inventory), the amount recognised in the cash flow hedging reserve is adjusted against the carrying amount of the non-financial asset. ( ` cr) Note 15 Other financial liabilities As at March 31, 2020 As at March 31, 2019 Current Non-current Current Non-current a) Employee benefits payable 57.93 - 47.70 - b) Security deposits 27.53 - - 22.39 c) Unclaimed dividends* 3.26 - 2.14 - d) Unclaimed matured deposits and interest thereon* - - 0.01 - e) Creditors for capital goods 32.48 - 16.45 - f) Derivative financial liabilities designated as hedges (net ) 1.62 - - - g) Other liabilities (includes discount payable) 1.65 2.72 1.79 2.61 124.47 2.72 68.09 25.00 *There is no amount due and outstanding to be credited to Investor Education and Protection Fund as at March 31, 2020. ( ` cr) Note 16 Provisions As at March 31, 2020 As at March 31, 2019 Current Non-current Current Non-current a) Provision for compensated absences 8.25 19.43 6.56 18.70 b) Others {refer i (b) and ii below} 28.62 - 22.66 - 36.87 19.43 29.22 18.70