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Atul Ltd | Annual Report 2016-17
c) Cash flow hedging reserve
The Company uses hedging instruments as part of its management of foreign currency risk associated with its highly probable
forecast sale and inventory purchases and interest rate risk associated with variable interest rate borrowings. For hedging
foreign currency risk, the Company uses foreign currency forward contracts, foreign currency option contracts and Interest
rate swaps. They are designated as cash flow hedges to the extent these hedges are effective, the change in fair value of the
hedging instrument is recognised in the cash flow hedging reserve. Amounts recognised in the cash flow hedging reserve is
reclassified to profit or loss when the hedged item affects profit or loss (for example, sales and interest payments). When the
forecast transaction results in the recognition of a non-financial asset (for example, inventory), the amount recognised in the
cash flow hedging reserve is adjusted against the carrying amount of the non-financial asset.
(
`
cr)
Note 15 Borrowings
Maturity Terms of
repayment
Effective
interest
rate p.a.
As at
March 31, 2017
As at
March 31, 2016
As at
April 01, 2015
Current Non-
current
Current Non-
current
Current Non-
current
a) Secured
i)
Rupee term loan from
a foreign financial
institution (refer Note a)
January,
2018
15 equal
half yearly
installments
6.99% -
7.46%
– 10.42
– 20.83
– 31.25
ii) Foreign currency term
loans from banks (refer
Note b and c)
September,
2017
12 equal
quarterly
installments
3 months
LIBOR +
2.90%
– 10.81
– 33.17
– 52.15
April, 2016 16 equal
quarterly
installments
3 months
LIBOR +
2.25%
–
–
– 2.07
– 9.78
iii) Foreign currency term
loan from a foreign
financial institution (refer
Note d)
January,
2016
16 equal
quarterly
installments
6 months
LIBOR +
2.25%
–
–
–
–
– 23.47
iv) Working capital loans
from banks (refer Note e)
1-6 months Repayable
on demand
2.43%-
10.40% 8.17
– 76.90
– 51.61
–
b) Unsecured
i)
Rupee term loans from a
bank (March 31, 2016:
`
30,112 )
May, 2016 20 equal
quarterly
installments
Base rate
+ 1.50%
–
–
–
– 0.14
ii) Loan from banks
including foreign banks
1-6 months 1-6 months 1.10%
51.87
– 53.07
– 12.52
–
iii) Loan from Related Parties 1-6 months 1-6 months
–
– 10.50
–
–
–
c) Buyers' credit
–
– 6.91
–
–
–
d) Commercial papers
1-3 months 1-3 months 6.50% 73.95
– 98.21
– 97.73
–
e) Deposit from the Directors
1-12 months 1-12 months 9.00% 0.01
– 0.01
– 0.01
–
134.00 21.23 245.60
56.07 161.87 116.79
Amount of current maturities of long-term debt disclosed under
the head 'Other financial liabilities' (refer Note 16)
– (21.23)
– (34.60)
– (62.71)
134.00
– 245.60 21.47 161.87 54.08
a) Rupee term loan from a foreign financial institution is secured by first
pari passu
charge by way of hypothecation of all
movable property, plant and equipment and mortgage of immovable properties of the Company, present and future,
excluding specific assets with first
pari passu
charge with other lenders and second charge on entire current assets of the
Company, both present and future.
b) Foreign currency term loan from a foreign bank is secured by first
pari passu
charge by way of hypothecation of all
movable property, plant and equipment and mortgage of immovable properties of the Company, present and future,
excluding specific assets with first
pari passu
charge and second charge on entire current assets of the Company, both
present and future.
c) Foreign currency term loan from a bank is secured by first
pari passu
charge on the entire movable and immovable
property, plant and equipment of the Company, both present and future.
d) Foreign currency term loan from a foreign bank is secured by first
pari passu
charge by way of hypothecation of all
movable property, plant and equipment and mortgage of immovable properties of the Company, present and future,
excluding specific assets with first
pari passu
charge with other lenders charge and second charge on entire current assets
of the Company, both present and future.
Notes
to the Financial Statements