Atul Ltd 2020-21

188 Atul Ltd | Annual Report 2020-21 Inventories are valued considering the provision for allowance for obsolescence, inventory carrying risk and delay in usage caused by the slow production pace due to lower off-take in the present situation. In addition to the historical pattern of inventory provision, the Group has considered the likelihood of reduction in sales price, customer orders on hand and margins, including subsequent cancellations, if any, nature and aging of inventories to reflect the current and estimated future economic conditions taking into account the possible effects due to the COVID-19 pandemic. This assessment is also considering the product demand, expected price trend and sales plan in respective industries. Amounts provided in the Consolidated Statement of Profit and Loss of ` 6.91 cr (March 31, 2020: ` 13.79 cr). ( ` cr) Note 11 Trade receivables As at March 31, 2021 As at March 31, 2020 a) Considered good - unsecured 743.71 727.67 b) Which have significant increase in credit risk 1.68 2.37 Less: Allowance for doubtful debts (refer Note 29.8) (12.16) (10.31) 733.23 719.73 Trade receivables are valued considering the provision for allowance using expected credit loss method. In addition to the historical pattern of credit losses, the Group has considered the likelihood of increased credit risks, subsequent recoveries, insurance and consequential defaults, considering the emerging situations due to the COVID-19 pandemic. This assessment is considering the nature of industries, impact immediately seen in the demand outlook of these industries and the financial strength of the customers in respect of whom the amounts are receivable. Allowance for doubtful debts recognised in the Consolidated Statement of Profit and Loss of ` 1.85 cr (March 31, 2020: ` 6.46 cr). ( ` cr) Note 12 Cash and cash equivalents As at March 31, 2021 As at March 31, 2020 a) Balances with banks In current accounts 46.74 26.06 b) Cash on hand 0.17 0.13 46.91 26.19 There are no repatriation restrictions with regard to cash and cash equivalents. ( ` cr) Note 13 Bank balances other than cash and cash equivalents above As at March 31, 2021 As at March 31, 2020 a) Unclaimed dividend 2.75 3.26 b) Unclaimed interest on public deposit - 0.01 c) Short-term bank deposit with maturity between 3 to 12 months 298.52 5.91 301.27 9.18