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Atul Ltd | Annual Report 2011-12
(
`
cr)
NOTE 27.1 CONTINGENT LIABILITIES
2011-12
2010-11
(i) Claims against the Company not acknowledged as debts in
respects of:
(a) Excise
6.25
5.73
(b) Income tax
27.70
25.50
(c) Sales tax
0.74
0.74
(d) Customs
2.78
-
(e) Water charges
68.63
65.50
(f) Others
13.26
11.00
Note: Future cash outflows in respect of (a) to (f) above are
determinable on receipt of judgements | decisions pending with
various forums | authorities.
(ii) Guarantees given by the bankers of the Company:
(a) Guarantees have been given by the bankers of the Company in the
normal course of business and are not expected to result in any
liability on the Company
-
9.50
(b) Corporate guarantee given to bank for facilities availed
0.61
-
(
`
cr)
NOTE 27.2 COMMITMENTS
2011-12
2010-11
Estimated amount of contracts remaining to be executed on capital
accounts and not provided for (net of advances)
13.97
19.70
(
`
cr)
NOTE 27.3 RESEARCH & DEVELOPMENT
2011-12
2010-11
Capital expenditure
0.40
1.06
Recurring expenditure
10.48
7.76
10.88
8.82
NOTE 27.4 FINANCIAL DERIVATIVES HEDGING TRANSACTIONS:
Pursuant to the announcement issued by the Institute of Chartered Accountants of India dated March 29, 2008 in
respect of forward exchange contracts and currency and interest rate swaps, the Company has applied the Hedge
Accounting Principles set out in the Accounting Standard-30 ‘Financial Instruments: Recognition and Measurement’.
Accordingly, range forward contracts are marked to market and the loss aggregating
`
0.78 cr (Previous year
`
5.09
cr) arising consequently on contracts that were designated and effective as hedges of future cash flows has been
recognised directly in the hedging reserve account. Actual gain or loss on exercise of these range forward contracts
or any part thereof is recognised in the Statement of Profit and Loss. Hedge Accounting will be discontinued if the
hedging instrument is sold, terminated or no longer qualifies for Hedge Accounting.
Notes
to Consolidated financial statements