Atul Ltd 2018-19
Note 29.8 Financial risk management (continued) c) Management of credit risk ƑĚēĿƥ ƑĿƙŒ Ŀƙ ƥĺĚ ƑĿƙŒ ūlj ǛŠîŠČĿîŕ ŕūƙƙ ƥū ƥĺĚ HƑūƭƎ 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. Reconciliation of loss allowance provision – trade receivables ( ` cr) Particulars Loss allowance on trade receivables Loss allowance as on March 31, 2017 3.16 Changes in loss allowance (0.56) Loss allowance as on March 31, 2018 2.60 Changes in loss allowance 5.01 Loss allowance as on March 31, 2019 7.61 ~ƥĺĚƑ ǛŠîŠČĿîŕ îƙƙĚƥƙ ¹ĺĚ HƑūƭƎ ŞîĿŠƥîĿŠƙ ĚNJƎūƙƭƑĚ ĿŠ Čîƙĺ îŠē Čîƙĺ ĚƐƭĿDŽîŕĚŠƥƙȡ ƥĚƑŞ ēĚƎūƙĿƥƙ DžĿƥĺ ċƙȡ ĿŠDŽĚƙƥŞĚŠƥƙ ĿŠ ijūDŽĚƑŠŞĚŠƥ ƙĚČƭƑĿƥĿĚƙȡ ƎƑĚljĚƑĚŠČĚ ƙĺîƑĚƙ îŠē ŕūîŠƙ ƥū ƙƭċƙĿēĿîƑNj ČūŞƎîŠĿĚƙȦ ¹ĺĚ HƑūƭƎ ĺîƙ ēĿDŽĚƑƙĿǛĚē ƎūƑƥljūŕĿū ūlj ĿŠDŽĚƙƥŞĚŠƥ DžĿƥĺ DŽîƑĿūƭƙ ŠƭŞċĚƑ of counterparties which have secure credit ratings hence the risk is reduced. Individual risk limits are set for each counter- ƎîƑƥNj ċîƙĚē ūŠ ǛŠîŠČĿîŕ ƎūƙĿƥĿūŠȡ ČƑĚēĿƥ ƑîƥĿŠij îŠē Ǝîƙƥ ĚNJƎĚƑĿĚŠČĚȦ ƑĚēĿƥ ŕĿŞĿƥƙ îŠē ČūŠČĚŠƥƑîƥĿūŠ ūlj ĚNJƎūƙƭƑĚƙ îƑĚ îČƥĿDŽĚŕNj monitored by the treasury department of the Group. Impact of hedging activities îȴ 'ĿƙČŕūƙƭƑĚ ūlj ĚljljĚČƥƙ ūlj ĺĚēijĚ îČČūƭŠƥĿŠij ūŠ ǛŠîŠČĿîŕ ƎūƙĿƥĿūŠȠ As at March 31, 2019 ( ` cr) Type of hedge and risks Notional value Carrying amount of hedging instrument Maturity (months) Weighted average strike price | interest rate Changes in fair value of hedging instrument Change in the value of hedged item used as the basis for recognising hedge effectiveness Assets Liabilities Assets Liabilities îƙĺ ǜūDž ĺĚēijĚ ` Ƞ À¬ɐ Foreign exchange risk Currency range options 87.09 - 1.22 - 1-12 ǬǯȦǬǪȹǭǫȦǮǪ 1.22 (1.22) Consolidated | Notes to the Financial Statements 235
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