Atul Ltd 2020-21

216 Atul Ltd | Annual Report 2020-21 Note 29.9 Capital management Risk Management The primary objective of capital management of the Group is to maximise shareholder value. The Group monitors capital using debt-equity ratio which is total debt divided by total equity. For the purpose of capital management, the Group considers the following components of its Consolidated Balance Sheet to manage capital: Total equity includes general reserve, retained earnings, share capital, security premium. Total debt includes current debt plus non-current debt. ( ` cr) Particulars As at March 31, 2021 As at March 31, 2020 Total debt 126.67 108.47 Total equity 3,826.52 3,154.90 Debt-equity ratio 0.03 0.03 Note 29.10 Offsetting financial assets and liabilities The Group has not offset any financial asset and financial liability. The Group offsets a financial asset and a financial liability when it currently has a legal enforceable right to set-off the recognised amounts and the Group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. a) Master netting arrangements – not currently enforceable Agreements with derivative counterparties are based on an ISDA Master Agreement. Under the terms of these arrangements, only where certain credit events occur (such as default ), the net position owing | receivable to a single counterparty in the same currency will be taken as owing and all the relevant arrangements are considered as terminated. As the Group does not presently have a legally enforceable right of set-off, these amounts have not been offset in the Consolidated Balance Sheet. b) Collateral against borrowings The Group has hypothecated | mortgaged assets as collateral against a number of its sanctioned line of credit. Refer Note 16(d) for further information on assets hypothecated | mortgaged as security). In case of default as per borrowing arrangement, such collateral can be adjusted against the amounts due. Note 29.11 Earnings per share Earnings per share (EPS) - The numerators and denominators used to calculate basic and diluted EPS Particulars 2020-21 2019-20 Profit for the year attributable to the equity shareholders ` cr 660.02 670.91 Weighted average number of equity shares used in calculating basic | diluted EPS 1 Number 2,96,49,628 2,96,61,733 Nominal value of equity share ` 10 10 Basic and diluted EPS ` 221.17 224.69 1 The Group completed its share buy-back on February 19, 2021.