Atul Ltd 2018-19

Note 28.7 Fair value measurements (continued) ēȴ GîĿƑ ǄîŕƭĚ ūlj ǛŠîŠČĿîŕ îƙƙĚƥƙ îŠē ŕĿîċĿŕĿƥĿĚƙ ŞĚîƙƭƑĚē îƥ îŞūƑƥĿƙĚē Čūƙƥ ( ` cr) Particulars As at March 31, 2019 As at March 31, 2018 Carrying amount Fair value Carrying amount Fair value Financial assets Investments: Preference shares ǫȦǨǪ ǫȦǨǪ 5.72 5.72 Government securities 0.01 0.01 0.01 0.01 Loans ǪȦǯǨ ǪȦǯǨ 7.07 7.07 Security deposits for utilities and premises 1.76 1.76 1.10 1.10 Finance lease receivable 1.33 1.33 1.25 1.25 ¹ūƥîŕ ǛŠîŠČĿîŕ îƙƙĚƥƙ 13.26 13.26 15.15 15.15 Financial liabilities Borrowings - - 0.01 0.01 Security deposits 22.39 22.39 19.80 19.80 ¹ūƥîŕ ǛŠîŠČĿîŕ ŕĿîċĿŕĿƥĿĚƙ 22.39 22.39 19.81 19.81 The carrying amounts of trade receivables, cash and cash equivalents, other bank balances, dividend receivables, other receivables, trade payables, capital creditors, other liabilities are considered to be the same as their fair values due to the current and short-term nature of such balances. ¹ĺĚ ljîĿƑ ǄîŕƭĚƙ ljūƑ ŕūîŠƙ îŠē ĿŠǄĚƙƥŞĚŠƥƙ ĿŠ ƎƑĚljĚƑĚŠČĚ ƙĺîƑĚƙ ǅĚƑĚ ČîŕČƭŕîƥĚē ċîƙĚē ūŠ Čîƙĺ ǜūǅƙ ēĿƙČūƭŠƥĚē ƭƙĿŠij î ČƭƑƑĚŠƥ lending rate at the time of inception. GūƑ ǛŠîŠČĿîŕ îƙƙĚƥƙ îŠē ŕĿîċĿŕĿƥĿĚƙ ƥĺîƥ îƑĚ ŞĚîƙƭƑĚē îƥ ljîĿƑ ǄîŕƭĚȡ ƥĺĚ ČîƑƑǋĿŠij îŞūƭŠƥƙ îƑĚ ĚƐƭîŕ ƥū ƥĺĚ ljîĿƑ ǄîŕƭĚƙȦ Note 28.8 Financial risk management Riskmanagement is an integral part of the business practices of the Company. The framework of riskmanagement concentrates on formalising a system to deal with the most relevant risks, building on existing Management practices, knowledge and ƙƥƑƭČƥƭƑĚƙȦ ØĿƥĺ ƥĺĚ ĺĚŕƎ ūlj î ƑĚƎƭƥĚē ĿŠƥĚƑŠîƥĿūŠîŕ ČūŠƙƭŕƥîŠČǋ ǛƑŞȡ ƥĺĚ ūŞƎîŠǋ ĺîƙ ēĚǄĚŕūƎĚē îŠē ĿŞƎŕĚŞĚŠƥĚē î comprehensive risk management system to ensure that risks to the continued existence of the Company as a going concern îŠē ƥū Ŀƥƙ ijƑūǅƥĺ îƑĚ ĿēĚŠƥĿǛĚē îŠē ƑĚŞĚēĿĚē ūŠ î ƥĿŞĚŕǋ ċîƙĿƙȦ ØĺĿŕĚ ēĚǛŠĿŠij îŠē ēĚǄĚŕūƎĿŠij ƥĺĚ ljūƑŞîŕĿƙĚē ƑĿƙŒ ŞîŠîijĚŞĚŠƥ system, leading standards and practices have been considered. The risk management system is relevant to business reality, pragmatic and simple and involves the following: Ŀȴ ¤ĿƙŒ ĿēĚŠƥĿǛČîƥĿūŠ îŠē ēĚǛŠĿƥĿūŠȠ GūČƭƙĚē ūŠ ĿēĚŠƥĿljǋĿŠij ƑĚŕĚǄîŠƥ ƑĿƙŒƙȡ ČƑĚîƥĿŠij ʈ ƭƎēîƥĿŠij ČŕĚîƑ ēĚǛŠĿƥĿūŠƙ ƥū ĚŠƙƭƑĚ undisputed understanding along with details of the underlying root causes | contributing factors. ĿĿȴ ¤ĿƙŒ ČŕîƙƙĿǛČîƥĿūŠȠ GūČƭƙĚē ūŠ ƭŠēĚƑƙƥîŠēĿŠij ƥĺĚ ǄîƑĿūƭƙ ĿŞƎîČƥƙ ūlj ƑĿƙŒƙ îŠē ƥĺĚ ŕĚǄĚŕ ūlj ĿŠǜƭĚŠČĚ ūŠ Ŀƥƙ Ƒūūƥ ČîƭƙĚƙȦ ¹ĺĿƙ involves identifying various processes generating the root causes and clear understanding of risk interrelationships. iii) Risk assessment and prioritisation: Focused on determining risk priority and risk ownership for critical risks. This involves assessment of the various impacts taking into consideration risk appetite and existing mitigation controls. ĿǄȴ ¤ĿƙŒ ŞĿƥĿijîƥĿūŠȠ GūČƭƙĚē ūŠ îēēƑĚƙƙĿŠij ČƑĿƥĿČîŕ ƑĿƙŒƙ ƥū ƑĚƙƥƑĿČƥ ƥĺĚĿƑ ĿŞƎîČƥȳƙȴ ƥū îŠ îČČĚƎƥîċŕĚ ŕĚǄĚŕ ȳǅĿƥĺĿŠ ƥĺĚ ēĚǛŠĚē ƑĿƙŒ îƎƎĚƥĿƥĚȴȦ ¹ĺĿƙ ĿŠǄūŕǄĚƙ î ČŕĚîƑ ēĚǛŠĿƥĿūŠ ūlj îČƥĿūŠƙȡ ƑĚƙƎūŠƙĿċĿŕĿƥĿĚƙ îŠē ŞĿŕĚƙƥūŠĚƙȦ v) Risk reporting and monitoring: Focused on providing to the Board and the Audit Committee periodic information on risk ƎƑūǛŕĚ ĚǄūŕƭƥĿūŠ îŠē ŞĿƥĿijîƥĿūŠ ƎŕîŠƙȦ Corporate Overview 01-22 Statutory Reports 23-105 Financial Statements 107-250 ǧǬǪ Atul Ltd | Annual Report 2018-19