Atul Ltd 2019-20

215 Consolidated | Notes to the Financial Statements Other financial assets The Group maintains exposure in cash and cash equivalents, term deposits with banks, investments in government securities, preference shares and loans to subsidiary companies. The Group has diversified portfolio of investment with various number of counterparties which have secure credit ratings hence the risk is reduced. Individual risk limits are set for each counter- party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the treasury department of the Group. 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) b) Disclosure of effects of hedge accounting on financial performance: As at March 31, 2020 ( ` cr) Type of hedge Change in the value of the hedging instrument recognised in other comprehensive income Hedge ineffectiveness recognised in profit or loss Amount reclassified from cash flow hedging reserve to profit or loss Financial Statement line item affected Cash flow hedge Foreign exchange risk 1.62 - 1.22 Trade receivables and payables Note 29.8 Financial risk management (continued)