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Atul Ltd | Annual Report 2016-17
(
`
cr)
Particulars
As at
March 31, 2017
Loss allowance on April 01, 2015
2.73
Changes in loss allowance
1.07
Loss allowance on March 31, 2016
3.80
Changes in loss allowance
(0.64)
Loss allowance on March 31, 2017
3.16
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, 2017
(
`
cr)
Type of hedge and risks
Notional value Carrying amount of
hedging instrument
Maturity 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
` :
USD $
Foreign exchange risk
Foreign exchange forward
contracts
–
58.35
–
(2.43)
1-12
months
68.06
(2.43)
(2.43)
Currency range options
49.60
–
1.70
–
1-12
months
67.98-
73.20
1.70
1.70
As at March 31, 2016
(
`
cr)
Type of hedge and risks
Notional value Carrying amount of
hedging instrument
Maturity 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
` :
USD $
Foreign exchange risk
Foreign exchange forward
contracts
–
53.07
–
(1.33)
1-12
months
68.69
(1.33)
(1.33)
Currency range options
83.25
–
0.14
–
1-12
months
65.96-
73.86
0.14
0.14
Currency vanilla options
44.00
–
0.30
–
1-12
months
66.41
0.30
0.30
Interest rate risk
Interest rate swaps
–
2.07
–
(0.01)
1-15
months
3.70
(0.01)
(0.01)
Notes
to the Consolidated Financial Statements