Atul Ltd 2009-10

Corporate Identity Serving Diverse Industries Purpose and Values Overview by the Chairman Operational Highlights Financial Analysis Research and Technology Safety, HealthandEnvironment Serving the Society Directors’ Report Management Discussion andAnalysis Report on Corporate Governance Financial Statements (c) 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 (AS) 30 'Financial Instruments : Recognition and Measurement'. Accordingly, Range Forward Contracts are marked to market and the loss aggregating Rs 15.03 crores 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 Profit and Loss Account. Hedge accounting will be discontinued if the hedging instrument is sold, terminated or no longer qualifies for hedge accounting. 17 Significant accounting policies followed by the Company are as stated in the statement annexed to this Schedule. 18 Loans and advances in nature of loans (Rs crores) Particulars Amount outstanding As at March 31, 2010 Maximum balance During the year (i) Subsidiary: Ameer Trading Corporation Ltd (including interest) 5.66 8.23 (ii) Associate companies: AtRo Ltd (a) - Rs 1,500 Amal Ltd (including interest) 21.29 22.42 (iii) Loan to others where there is no interest or repayment schedule: Atul club 1.36 1.36 Atul Retail Brands Pvt Ltd - Rs 5,300 - Atul Rajasthan Date Palms Ltd - Rs 43,871 - Atul Solar Energy Pvt Ltd - Rs 5,300 - Note: (a) No repayment Schedule. (b) Loans given to employees as per the policy of the Company are not considered. 19 Employee benefits (a) Defined benefit plans: Expenses recognised for the year ended on March 31, 2010 (included in Schedule 13 of Profit and Loss Account) (Rs crores) Particulars 2009-10 2008-09 Gratuity funded Gratuity funded 1 Current service cost 1.38 1.34 2 Interest cost 2.06 1.96 3 Expected return on plan assets (2.21) (2.19) 4 Employer contribution (receipt) 0.00 - 5 Actuarial losses | (gains) 0.84 2.33 Expenses recognised in Profit and Loss Account 2.07 3.44 Schedule forming part of the accounts SCHEDULE 16 NOTES FORMING PART OF THE ACCOUNTS (contd)