Atul Ltd 2012-13

91 Notes to financial statements NOTE 27.9 DERIVATIVES The use of Derivative instruments is governed by the policies of the Company approved by the Board of Directors, ZKLFK SURYLGH ZULWWHQ SULQFLSOHV RQ WKH XVH RI VXFK ÀQDQFLDO GHULYDWLYHV FRQVLVWHQW ZLWK ULVN PDQDJHPHQW VWUDWHJ\ of the Company. (a) Derivatives outstanding as at Balance Sheet date *Fc in cr Sr No Particulars Purpose As at March 31, 2013 As at March 31, 2012 1 Forward Contracts to Sell US$ +HGJH RI ÀUP FRPPLWPHQW DQG KLJKO\ probable foreign currency sales 0.12 0.07 2 Forward Contracts to Buy US$ Hedge of foreign currency loans 0.17 0.11 3 Currency Options contracts -Range options to Sell US$ +HGJH RI ÀUP FRPPLWPHQW DQG KLJKO\ probable foreign currency sales 0.23 1.62 4 Currency Options contracts -Vanilla option to Sell US$ +HGJH RI ÀUP FRPPLWPHQW DQG KLJKO\ probable foreign currency sales 0.22 0.55 5 Interest Rate Swaps US$ Hedge against exposure to variable LQWHUHVW RXWÁRZ RQ IRUHLJQ FXUUHQF\ ORDQV 6ZDS WR SD\ À[HG LQWHUHVW DQG receive a variable interest based on LIBOR on the notional amount 0.61 0.75 6 Currency swaps US$ +HGJH DJDLQVW ÁXFWXDWLRQV LQ FKDQJHV LQ exchange rate and interest rate 1.00 - (b) The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below. *Fc in cr Particulars As at March 31, 2013 As at March 31, 2012 US$ € Other FCs US$ € Other FCs Debtors 3.11 0.27 0.92 1.21 0.39 - Creditors 0.56 0.03 0.36 0.57 0.01 - Loans Taken 1.61 - - 2.78 - - (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 derivatives, the Company has applied the Hedge Accounting Principles set out in the Accounting Standard-30 ‘Financial Instruments : Recognition and Measurement’. Accordingly, Derivatives are Mark-to-Market and the gain aggregating ` 0.74 cr (Previous year loss ` 0.78 cr) arising FRQVHTXHQWO\ RQ FRQWUDFWV WKDW ZHUH GHVLJQDWHG DQG HIIHFWLYH DV KHGJHV RI IXWXUH FDVK ÁRZV KDV EHHQ recognized directly in the Hedging Reserve Account. Actual gain or loss on exercise of these Derivatives or DQ\ SDUW WKHUHRI LV UHFRJQLVHG LQ WKH 6WDWHPHQW RI 3URÀW DQG /RVV +HGJH DFFRXQWLQJ ZLOO EH GLVFRQWLQXHG LI WKH KHGJLQJ LQVWUXPHQW LV VROG WHUPLQDWHG RU QR ORQJHU TXDOLÀHV IRU KHGJH DFFRXQWLQJ *Fc = Foreign currency