Atul Ltd 2019-20

Corporate Overview Statutory Reports Financial Statements 01-21 22-91 92-228 150 Atul Ltd | Annual Report 2019-20 Note 28.8 Financial risk management (continued) Foreign currency risk exposure: The exposure to foreign currency risk of the Company at the end of the reporting period expressed is as follows: Particulars As at March 31, 2020 US$ mn ` cr € mn ` cr £ mn ` cr Financial assets Cash and cash equivalents (EEFC account ) 0.60 4.55 - - - - Trade receivables 47.61 359.00 2.54 20.99 0.62 5.81 Dividends receivable 0.29 2.15 - - - - Less: Hedged through derivatives 1 Currency range options 38.34 289.07 - - - - Net exposure to foreign currency risk (assets) 10.16 76.62 2.54 20.99 0.62 5.81 Financial liabilities Trade payables 9.76 73.61 0.26 2.11 0.05 0.42 Net exposure to foreign currency risk (liabilities) 9.76 73.61 0.26 2.11 0.05 0.42 1 Includes hedges for highly probable transactions up to next 12 months Particulars As at March 31, 2019 US$ mn ` cr € mn ` cr £ mn ` cr Financial assets Trade receivables 58.40 403.96 3.39 26.34 0.49 4.43 Less: Hedged through derivatives 1 Currency range options 12.45 86.12 0.13 0.97 - - Net exposure to foreign currency risk (assets) 45.95 317.84 3.26 25.37 0.49 4.43 Financial liabilities Trade payables 13.67 94.56 0.20 1.54 0.03 0.28 Net exposure to foreign currency risk (liabilities) 13.67 94.56 0.20 1.54 0.03 0.28 1 Includes hedges for highly probable transactions up to next 12 months c) Management of credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty fails tomeet its contractual obligations. Trade receivables Concentrations of credit risk with respect to trade receivables are limited, due to the customer base being large, diverse and across sectors and countries. A portion of trade receivables are secured by insurance policies or ECGC schemes. All trade receivables are reviewed and assessed for default on a quarterly basis. Historical experience of collecting receivables of the Company is supported by low level of past default and hence the credit risk is perceived to be low.