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iii) Foreign exchange risk
The Group has international operations
îŠē Ŀƙ ĚNJƎūƙĚē ƥū ljūƑĚĿijŠ ĚNJČĺîŠijĚ
risk arising from foreign currency
ƥƑîŠƙîČƥĿūŠƙȦ
GūƑĚĿijŠ ĚNJČĺîŠijĚ
risk arises from future commercial
ƥƑîŠƙîČƥĿūŠƙ îŠē ƑĚČūijŠĿƙĚē ǛŠîŠČĿîŕ
assets and liabilities denominated in
a currency that is not the functional
currency (
`
) of the Group. The risk
also includes highly probable foreign
ČƭƑƑĚŠČNj Čîƙĺ ǜūDžƙȦ ¹ĺĚ ūċŏĚČƥĿDŽĚ ūlj
ƥĺĚ Čîƙĺ ǜūDžƙ ĺĚēijĚƙ Ŀƙ ƥū ŞĿŠĿŞĿƙĚ
the volatility of the
`
Čîƙĺ ǜūDžƙ ūlj
highly probable forecast transactions.
¹ĺĚ HƑūƭƎ ĺîƙ ĚNJƎūƙƭƑĚ îƑĿƙĿŠij
ūƭƥ ūlj ĚNJƎūƑƥȡ ĿŞƎūƑƥȡ ŕūîŠƙ îŠē
other transactions other than
functional risk. The Group hedges its
ljūƑĚĿijŠ ĚNJČĺîŠijĚ ƑĿƙŒ ƭƙĿŠij ljūƑĚĿijŠ
ĚNJČĺîŠijĚ ljūƑDžîƑē ČūŠƥƑîČƥƙ îŠē
currency options after considering
the natural hedge. The same is within
the guidelines laid down by Risk
Management Policy of the Group.
ƙ îŠ ĚƙƥĿŞîƥĿūŠ ūlj ƥĺĚ îƎƎƑūNJĿŞîƥĚ
ĿŞƎîČƥ ūlj ƥĺĚ ljūƑĚĿijŠ ĚNJČĺîŠijĚ ƑîƥĚ ƑĿƙŒȡ
with respect to Financial Statements,
the Group has calculated the impact as
follows:
For derivative and non-derivative
ǛŠîŠČĿîŕ ĿŠƙƥƑƭŞĚŠƥƙȡ î Ǩɼ ĿŠČƑĚîƙĚ
in the spot price as on the reporting
date would have led to an increase
in additional
`
2.91 cr gain in other
comprehensive income (2017-18: gain
of
`
2.78 cr). A 2% decrease would have
led to an increase in additional
`
ǨȦǨǪ
cr loss in other comprehensive income
(2017-18: Gain of
`
2.30 cr).
GūƑĚĿijŠ ČƭƑƑĚŠČNj ƑĿƙŒ ĚNJƎūƙƭƑĚȠ
¹ĺĚ ĚNJƎūƙƭƑĚ ƥū ljūƑĚĿijŠ ČƭƑƑĚŠČNj ƑĿƙŒ ūlj ƥĺĚ HƑūƭƎ îƥ ƥĺĚ ĚŠē ūlj ƥĺĚ ƑĚƎūƑƥĿŠij ƎĚƑĿūē ĚNJƎƑĚƙƙĚē îƑĚ îƙ ljūŕŕūDžƙȠ
Particulars
As at March 31, 2019
US$ mn
`
cr
€ mn
`
cr
£ mn
`
cr
Financial assets
Trade receivables
38.62
267.15
2.03
15.76
0.33
2.96
Less:
Hedged through derivatives
1
Currency range options
ǧǨȦǪǫ
86.12
0.13
1.01
-
-
Net exposure to foreign currency risk (assets)
26.17 181.03
1.90
14.75
0.33
2.96
Financial liabilities
Trade payables
13.53
92.58
0.08
0.59
-
ǦȦǦǪ
Net exposure to foreign currency risk (liabilities)
13.53
92.58
0.08
0.59
-
0.04
1
TŠČŕƭēĚƙ ĺĚēijĚƙ ljūƑ ĺĿijĺŕNj ƎƑūċîċŕĚ ƥƑîŠƙîČƥĿūŠƙ ƭƎ ƥū ŠĚNJƥ ǧǨ ŞūŠƥĺƙ
Particulars
As at March 31, 2018
US$ mn
`
cr
€ mn
`
cr
£ mn
`
cr
Financial assets
Trade receivables
37.07
ǨǪǧȦǧǦ
1.21
9.78
0.03
0.27
Less:
Hedged through derivatives
1
Currency range options
0.92
6.01
-
-
-
-
Net exposure to foreign currency risk (assets)
36.15 235.09
1.21
9.78
0.03
0.27
Financial liabilities
Trade payables
16.39
106.55
0.06
ǦȦǪǮ
0.03
ǦȦǨǪ
Less:
Hedged through derivatives
1
Currency range option
3.72
ǨǪȦǨǨ
-
-
-
-
Net exposure to foreign currency risk (liabilities)
12.67
82.33
0.06
0.48
0.03
0.24
1
TŠČŕƭēĚƙ ĺĚēijĚƙ ljūƑ ĺĿijĺŕNj ƎƑūċîċŕĚ ƥƑîŠƙîČƥĿūŠƙ ƭƎ ƥū ŠĚNJƥ ǧǨ ŞūŠƥĺƙ
Note 29.8 Financial risk management (continued)
ǨǩǪ
Atul Ltd | Annual Report 2018-19
Corporate Overview 01-22
Statutory Reports 23-105
Financial Statements 107-250