Atul Ltd 2019-20

Corporate Overview Statutory Reports Financial Statements 214 Atul Ltd | Annual Report 2019-20 01-21 22-91 92-228 Note 29.8 Financial risk management (continued) Foreign currency risk exposure: The exposure to foreign currency risk of the Group at the end of the reporting period expressed are 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 38.63 291.26 1.97 16.29 6.76 62.90 Less: Hedged through derivatives 1 Currency range options 38.34 289.07 - - - - Net exposure to foreign currency risk (assets) 0.89 6.73 1.97 16.29 6.76 62.90 Financial liabilities Trade payables 10.45 78.78 0.19 1.55 0.30 2.82 Net exposure to foreign currency risk (liabilities) 10.45 78.78 0.19 1.55 0.30 2.82 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 38.62 267.15 2.03 15.76 0.33 2.96 Less: Hedged through derivatives 1 Currency range options 12.45 86.12 0.13 1.01 - - Net exposure to foreign currency risk (assets) 26.17 181.03 1.90 14.75 0.33 2.96 Financial liabilities Trade payables 13.53 92.58 0.08 0.59 - 0.04 Net exposure to foreign currency risk (liabilities) 13.53 92.58 0.08 0.59 - 0.04 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 Group if a customer or counterparty fails to meet 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 EPCG schemes. All trade receivables are reviewed and assessed for default on a quarterly basis. 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 2.70 Loss allowance as on March 31, 2020 10.31