Atul Ltd 2016-17

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