250 Annual Report 2023-24 Atul Ltd Movements in cash flow hedging reserve (` cr) Risk category Foreign currency risk Derivative instruments As at March 31, 2024 As at March 31, 2023 Balance at the beginning of the year (0.68) 0.20 Gain | (loss) recognised in other comprehensive income during the year (0.11) (0.54) Amount reclassified to revenue during the year 0.54 (0.48) Tax impact on above 0.02 0.14 Balance at the end of the year (0.23) (0.68) Note 30.9 Capital 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 and share capital. Total debt includes current debt plus non-current debt. (` cr) Particulars As at March 31, 2024 As at March 31, 2023 Total debt 231.85 46.98 Total equity 5,114.34 4,671.38 Debt-equity ratio (%) 4.53% 1.01% Note 30.10 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 International Swaps and Derivatives Association Inc 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 (e) 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 30.8 Financial risk management (continued)
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