Atul Ltd 2019-20

151 Standalone | Notes to the Financial Statements Note 28.8 Financial risk management (continued) Reconciliation of loss allowance provision - trade receivables ( ` cr) Particulars Loss allowance on trade receivables Loss allowance as on March 31, 2018 2.60 Changes in loss allowance 5.01 Loss allowance as on March 31, 2019 7.61 Changes in loss allowance 2.46 Loss allowance as on March 31, 2020 10.07 Other financial assets The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments in government securities, preference shares and loans to subsidiary companies. It has a diversified portfolio of investments with various number of counterparties which have secure credit ratings, hence the risk is reduced. Individual risk limits are set for each counterparty based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by its treasury department. Impact of hedging activities a) Disclosure of effects of hedge accounting on financial position: As at March 31, 2020 ( ` cr) Type of hedge and risks Notional value Carrying amount of hedging instrument Maturity (months) 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 ` : US$ Foreign exchange risk Currency range options 289.07 - - 1.62 1-12 73.05-75.36 1.62 (1.62) As at March 31, 2019 ( ` cr) Type of hedge and risks Notional value Carrying amount of hedging instrument Maturity (months) 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 ` : US$ Foreign exchange risk Currency range options 87.09 - 1.22 - 1-12 69.64-75.84 1.22 (1.22)