Atul Ltd 2019-20

Corporate Overview Statutory Reports Financial Statements 01-21 22-91 92-228 126 Atul Ltd | Annual Report 2019-20 i) Information about individual provisions and significant estimates a) Compensated absences: T he Compensated absences cover the liability for sick and earned leave. Out of the total amount disclosed above, the amount of ` 8.25 cr (March 31, 2019 : ` 6.56 cr) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months. b) Others: Regulatory and other claims: T he Company has provided for certain regulatory and other charges for which it has received claims. The provision represents the unpaid amount that it expects to incur | pay for which the obligating event has already arisen as on the reporting date. Effluent disposal: T he Company has provided for expenses it estimates to incur for safe disposal of effluent in line with the regulatory framework it operates in. The provision represents the unpaid amount it expects to incur for which the obligating event has already arisen as on the reporting date. ii) Movements in provisions: ( ` cr) Particulars As at March 31, 2020 As at March 31, 2019 Regulatory and other claims Effluent disposal Regulatory and other claims Effluent disposal Balance as at the beginning of the year 20.79 1.87 - 1.50 Less: Utilised - (1.87) - (1.50) Provision made during the year 5.88 1.95 20.79 1.87 Balance as at the end of the year 26.67 1.95 20.79 1.87 Note 17 Borrowings a) Security details: Working capital loans repayable on demand from banks (March 31, 2020: nil, March 31, 2019: nil) is secured by hypothecation of tangible current assets, namely, inventories and book debts of the Company as a whole and also secured by second and subservient charge on immovable and movable assets of the Company to the extent of individual bank limit as mentioned in joint consortium documents. This also extends to guarantees and letters of credit given by the bankers aggregating to ` 133.02 cr (March 31, 2019: ` 102.31 cr). b) The carrying amount of assets hypothecated | mortgaged as security for borrowing limits are: ( ` cr) Particulars As at March 31, 2020 As at March 31, 2019 First charge for current and second charge for non-current borrowings i) Inventories 427.46 427.81 ii) Trade receivables 718.93 762.18 iii) Current assets other than inventories and trade receivables 150.06 189.76 1,296.45 1,379.75 First charge for non-current and second charge for current borrowings Property, plant and equipment excluding leasehold land 884.71 899.02 Total assets as security 2,181.16 2,278.77