Atul Ltd 2019-20

Corporate Overview Statutory Reports Financial Statements 218 Atul Ltd | Annual Report 2019-20 01-21 22-91 92-228 Note 29.12 Leases (continued) iii) The table below provides details regarding the contractual maturities of lease liabilities as at March 31, 2020 on an undiscounted basis: ( ` cr) Particulars As at March 31, 2020 Less than one year 0.43 One to five years 2.61 More than five years 3.90 Total 6.94 The Group does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due. Rent paid to lessor for short-term lease period is recognised into the Consolidated Statement of Profit and Loss as Rent in Note 28 ‘Other expenses’. Cash payments for the principal portion and interest of the lease liabilities are classified within financing activities and short-term lease payments within operating activities. b) As a lessor i) Operating lease T he Group has entered into operating leases on its office buildings and land. These are cancellable by the Group, having a term between 11 months and three years and have no specific obligation for renewal. Rents received are recognised in the Consolidated Statement of Profit and Loss as lease income in Note 23 ‘Other income’. ii) Finance lease a) The Group has given a building on finance lease for a term of 30 years. F uture minimum lease payments receivable under finance leases, together with the present value of the net minimum lease payments (MLP), are as under: ( ` cr) Particulars As at March 31, 2020 As at March 31, 2019 Minimum lease payments receivable Present value of MLP receivable Minimum lease payments receivable Present value of MLP receivable Not later than 1 year - - 0.20 0.20 Later than 1 year and not later than 5 years 0.40 0.35 0.40 0.33 Later than 5 years 1.80 0.85 1.80 0.80 Total minimum lease payments receivable 2.20 1.20 2.40 1.33 Less: unearned finance income 1.00 - 1.07 - Present value of minimum lease payments receivable 1.20 1.20 1.33 1.33 Less: allowance for uncollectible lease payments - - - - 1.20 1.20 1.33 1.33 b) The Group has taken on lease a parcel of land from Gujarat Industrial Development Corporation for a period of 99 years with an option with the Group to extend the lease by another 99 years on expiry of lease at a rental that is 100% higher than the current rental. The Group has considered that such a lease of land transfers substantially all of the risks and rewards incidental to ownership of land, and has thus accounted for the same as finance lease. Note 29.13 Rounding off Figures less than ` 50,000 have been shown at actual in brackets.