Atul Ltd 2018-19

Note 28.8 Financial risk management (continued) Foreign currency risk exposure: The exposure to foreign currency risk of the Company at the end of the reporting period expressed are as follows: Particulars As at March 31, 2019 US$ mn ` cr € mn ` cr £ mn ` cr Financial assets Trade receivables ǫǮȦǪǦ ǪǦǩȦǯǬ 3.39 ǨǬȦǩǪ ǦȦǪǯ ǪȦǪǩ Less: Hedged through derivatives 1 Currency range options ǧǨȦǪǫ 86.12 0.13 0.97 - - Net exposure to foreign currency risk (assets) 45.95 317.84 3.26 25.37 0.49 4.43 Financial liabilities Trade payables 13.67 ǯǪȦǫǬ 0.20 ǧȦǫǪ 0.03 0.28 Net exposure to foreign currency risk (liabilities) 13.67 94.56 0.20 1.54 0.03 0.28 1 Includes hedges for highly probable transactions up to next 12 months Particulars As at March 31, 2018 US$ mn ` cr € mn ` cr £ mn ` cr Financial assets Trade receivables ǫǪȦǮǦ ǩǫǬȦǪǩ 2.75 22.17 0.03 0.27 Dividends receivable 0.16 ǧȦǦǪ - - 0.57 5.21 Less: Hedged through derivatives 1 Foreign exchange forward contracts 0.92 6.01 - - - - Net exposure to foreign currency risk (assets) 54.04 351.46 2.75 22.17 0.60 5.48 Financial liabilities Trade payables 16.09 ǧǦǪȦǬǪ ǦȦǧǪ 1.09 0.03 ǦȦǨǪ Less: Hedged through derivatives 1 Currency range option 3.72 ǨǪȦǨǨ - - - - Net exposure to foreign currency risk (liabilities) 12.37 80.42 0.14 1.09 0.03 0.24 1 Includes hedges for highly probable transactions up to next 12 months c) Management of credit risk ƑĚēĿƥ ƑĿƙŒ Ŀƙ ƥĺĚ ƑĿƙŒ ūlj ǛŠîŠČĿîŕ ŕūƙƙ ƥū ƥĺĚ ūŞƎîŠNj Ŀlj î ČƭƙƥūŞĚƑ ūƑ ČūƭŠƥĚƑƎîƑƥNj ljîĿŕƙ ƥū ŞĚĚƥ Ŀƥƙ ČūŠƥƑîČƥƭîŕ ūċŕĿijîƥĿūŠƙȦ Trade receivables Concentrations of credit risk with respect to trade receivables are limited, due to the customer base being large, diverse and îČƑūƙƙ ƙĚČƥūƑƙ îŠē ČūƭŠƥƑĿĚƙȦ ¬ĿijŠĿǛČîŠƥ ƎūƑƥĿūŠ ūlj ƥƑîēĚ ƑĚČĚĿDŽîċŕĚ îƑĚ ƙĚČƭƑĚē ċNj ĿŠƙƭƑîŠČĚ ƎūŕĿČĿĚƙ ūƑ /¡ H ƙČĺĚŞĚƙȦ All trade receivables are reviewed and assessed for default on a quarterly basis. Historical experience of collecting receivables of the Company is supported by low level of past default and hence the credit risk is perceived to be low. 167 Standalone | Notes to the Financial Statements