170 / 260
Note 28.8 Financial risk management (continued)
Reconciliation of loss allowance provision – trade receivables
(
`
cr)
Particulars
Loss allowance on
trade receivables
Loss allowance as on March 31, 2017
3.16
Changes in loss allowance
(0.56)
Loss allowance as on March 31, 2018
2.60
Changes in loss allowance
5.01
Loss allowance as on March 31, 2019
7.61
~ƥĺĚƑ ǛŠîŠČĿîŕ îƙƙĚƥƙ
The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments in government
ƙĚČƭƑĿƥĿĚƙȡ ƎƑĚljĚƑĚŠČĚ ƙĺîƑĚƙ îŠē ŕūîŠƙ ƥū ƙƭċƙĿēĿîƑNj ČūŞƎîŠĿĚƙȦ ¹ĺĚ ūŞƎîŠNj ĺîƙ î ēĿDŽĚƑƙĿǛĚē ƎūƑƥljūŕĿū ūlj ĿŠDŽĚƙƥŞĚŠƥƙ DžĿƥĺ
various number of counterparties which have secure credit ratings, hence the risk is reduced. Individual risk limits are set for
ĚîČĺ ČūƭŠƥĚƑƎîƑƥNj ċîƙĚē ūŠ ǛŠîŠČĿîŕ ƎūƙĿƥĿūŠȡ ČƑĚēĿƥ ƑîƥĿŠij îŠē Ǝîƙƥ ĚNJƎĚƑĿĚŠČĚȦ ƑĚēĿƥ ŕĿŞĿƥƙ îŠē ČūŠČĚŠƥƑîƥĿūŠ ūlj ĚNJƎūƙƭƑĚƙ
are actively monitored by the treasury department of the Company.
Impact of hedging activities
îȴ 'ĿƙČŕūƙƭƑĚ ūlj ĚljljĚČƥƙ ūlj ĺĚēijĚ îČČūƭŠƥĿŠij ūŠ ǛŠîŠČĿîŕ ƎūƙĿƥĿūŠȠ
As at March 31, 2019
(
`
cr)
Type of hedge and risks Notional value Carrying amount of
hedging instrument
Maturity
(months)
Weighted
average
strike price |
interest rate
Changes
in fair
value of
hedging
instru-
ment
Change in
the value of
hedged item
used as the
basis for
recognising
hedge
effectiveness
Assets Liabilities Assets Liabilities
îƙĺ ǜūDž ĺĚēijĚ
`
: US$
Foreign exchange risk
Currency range options
87.09
-
1.22
-
1-12
ǬǯȦǬǪȹ ǭǫȦǮǪ
1.22
(1.22)
As at March 31, 2018
(
`
cr)
Type of hedge and risks Notional value Carrying amount of
hedging instrument
Maturity
(months)
Weighted
average
strike price |
interest rate
Changes
in fair
value of
hedging
instru-
ment
Change in
the value of
hedged item
used as the
basis for
recognising
hedge
effectiveness
Assets Liabilities Assets Liabilities
îƙĺ ǜūDž ĺĚēijĚ
`
: US$
Foreign exchange risk
Foreign exchange for-
ward contracts
6.01
-
0.07
-
1-12
66.18
0.07
(0.07)
Currency range options
-
ǨǪȦǨǨ
-
(0.02)
1-12
ǬǪȦǯǦȹǬǮȦǯǦ
(0.02)
0.02
Corporate Overview 01-22
Statutory Reports 23-105
Financial Statements 107-250
168
Atul Ltd | Annual Report 2018-19