Atul Ltd 2018-19

iii) Foreign exchange risk The Group has international operations îŠē Ŀƙ ĚǊƎūƙĚē ƥū ljūƑĚĿijŠ ĚǊČĺîŠijĚ risk arising from foreign currency ƥƑîŠƙîČƥĿūŠƙȦ GūƑĚĿijŠ ĚǊČĺîŠijĚ risk arises from future commercial ƥƑîŠƙîČƥĿūŠƙ îŠē ƑĚČūijŠĿƙĚē ǛŠîŠČĿîŕ assets and liabilities denominated in a currency that is not the functional currency ( ` ) of the Group. The risk also includes highly probable foreign ČƭƑƑĚŠČǋ Čîƙĺ ǜūǅƙȦ ¹ĺĚ ūċŏĚČƥĿǄĚ ūlj ƥĺĚ Čîƙĺ ǜūǅƙ ĺĚēijĚƙ Ŀƙ ƥū ŞĿŠĿŞĿƙĚ the volatility of the ` Čîƙĺ ǜūǅƙ ūlj highly probable forecast transactions. ¹ĺĚ HƑūƭƎ ĺîƙ ĚǊƎūƙƭƑĚ îƑĿƙĿŠij ūƭƥ ūlj ĚǊƎūƑƥȡ ĿŞƎūƑƥȡ ŕūîŠƙ îŠē other transactions other than functional risk. The Group hedges its ljūƑĚĿijŠ ĚǊČĺîŠijĚ ƑĿƙŒ ƭƙĿŠij ljūƑĚĿijŠ ĚǊČĺîŠijĚ ljūƑǅîƑē ČūŠƥƑîČƥƙ îŠē currency options after considering the natural hedge. The same is within the guidelines laid down by Risk Management Policy of the Group. ƙ îŠ ĚƙƥĿŞîƥĿūŠ ūlj ƥĺĚ îƎƎƑūǊĿŞîƥĚ ĿŞƎîČƥ ūlj ƥĺĚ ljūƑĚĿijŠ ĚǊČĺîŠijĚ ƑîƥĚ ƑĿƙŒȡ with respect to Financial Statements, the Group has calculated the impact as follows: For derivative and non-derivative ǛŠîŠČĿîŕ ĿŠƙƥƑƭŞĚŠƥƙȡ î Ǩɼ ĿŠČƑĚîƙĚ in the spot price as on the reporting date would have led to an increase in additional ` 2.91 cr gain in other comprehensive income (2017-18: gain of ` 2.78 cr). A 2% decrease would have led to an increase in additional ` ǨȦǨǪ cr loss in other comprehensive income (2017-18: Gain of ` 2.30 cr). GūƑĚĿijŠ ČƭƑƑĚŠČǋ ƑĿƙŒ ĚǊƎūƙƭƑĚȠ ¹ĺĚ ĚǊƎūƙƭƑĚ ƥū ljūƑĚĿijŠ ČƭƑƑĚŠČǋ ƑĿƙŒ ūlj ƥĺĚ HƑūƭƎ îƥ ƥĺĚ ĚŠē ūlj ƥĺĚ ƑĚƎūƑƥĿŠij ƎĚƑĿūē ĚǊƎƑĚƙƙĚē îƑĚ îƙ ljūŕŕūǅƙȠ Particulars As at March 31, 2019 US$ mn ` cr € mn ` cr £ mn ` cr Financial assets Trade receivables 38.62 267.15 2.03 15.76 0.33 2.96 Less: Hedged through derivatives 1 Currency range options ǧǨȦǪǫ 86.12 0.13 1.01 - - Net exposure to foreign currency risk (assets) 26.17 181.03 1.90 14.75 0.33 2.96 Financial liabilities Trade payables 13.53 92.58 0.08 0.59 - ǦȦǦǪ Net exposure to foreign currency risk (liabilities) 13.53 92.58 0.08 0.59 - 0.04 1 TŠČŕƭēĚƙ ĺĚēijĚƙ ljūƑ ĺĿijĺŕǋ ƎƑūċîċŕĚ ƥƑîŠƙîČƥĿūŠƙ ƭƎ ƥū ŠĚǊƥ ǧǨ ŞūŠƥĺƙ Particulars As at March 31, 2018 US$ mn ` cr € mn ` cr £ mn ` cr Financial assets Trade receivables 37.07 ǨǪǧȦǧǦ 1.21 9.78 0.03 0.27 Less: Hedged through derivatives 1 Currency range options 0.92 6.01 - - - - Net exposure to foreign currency risk (assets) 36.15 235.09 1.21 9.78 0.03 0.27 Financial liabilities Trade payables 16.39 106.55 0.06 ǦȦǪǮ 0.03 ǦȦǨǪ Less: Hedged through derivatives 1 Currency range option 3.72 ǨǪȦǨǨ - - - - Net exposure to foreign currency risk (liabilities) 12.67 82.33 0.06 0.48 0.03 0.24 1 TŠČŕƭēĚƙ ĺĚēijĚƙ ljūƑ ĺĿijĺŕǋ ƎƑūċîċŕĚ ƥƑîŠƙîČƥĿūŠƙ ƭƎ ƥū ŠĚǊƥ ǧǨ ŞūŠƥĺƙ Note 29.8 Financial risk management (continued) ǨǩǪ Atul Ltd | Annual Report 2018-19 Corporate Overview 01-22 Statutory Reports 23-105 Financial Statements 107-250