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Atul Ltd | Annual Report 2017-18
Note 29.8 Financial Risk Management
(continued)
b) Disclosure of effects of hedge accounting on financial performance
As at March 31, 2018
(
`
cr)
Type of hedge
Change in
the value of
the hedging
instrument
recognised
in Other
Comprehensive
Income
Hedge
ineffectiveness
recognised in
profit or loss
Amount
reclassified
from cash flow
hedging reserve
to profit or loss
Financial
Statement line
item affected
Cash flow hedge
Foreign exchange risk
0.05
–
(0.73) Revenue and
inventories
finance costs
As at March 31, 2017
(
`
cr)
Type of hedge
Change in
the value of
the hedging
instrument
recognised
in Other
Comprehensive
Income
Hedge
ineffectiveness
recognised in
profit or loss
Amount
reclassified
from cash flow
hedging reserve
to profit or loss
Financial
Statement line
item affected
Cash flow hedge
Foreign exchange risk
(0.73)
–
(0.89) Revenue and
inventories
finance costs
Movements in cash flow hedging reserve
(
`
cr)
Risk category
Foreign currency risk
Derivative instruments
As at
March 31, 2018
As at
March 31, 2017
Balance at the beginning of the year
(0.48)
(0.59)
Gain | (Loss) recognised in Other Comprehensive Income during the year
0.05
(0.73)
Amount reclassified to revenue during the year
0.48
0.59
Tax impact on above
(0.02)
0.25
Balance at the end of the year
0.03
(0.48)
Note 29.9 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 purposes of Capital Management, the Group considers the following components of its Balance Sheet to manage capital:
Total equity includes General reserves, Retained earnings, Share capital and Security premium. Total debt includes current debt
plus non-current debt.
(
`
cr)
Particulars
As at
March 31, 2018
As at
March 31, 2017
Total debt
15.91
167.69
Total equity
2,243.92
1,965.94
Debt-Equity ratio
0.01
0.09
Notes
to the Consolidated Financial Statements