Atul Ltd 2020-21

121 Statutory Report 22 - 87 Financial Statements 88 - 229 Corporate Overview 01 - 21 ( ` cr) Note 14 Other equity As at March 31, 2021 As at March 31, 2020 Summary of other equity balance a) Securities premium - 34.66 b) General reserve 68.72 95.80 c) Retained earnings 3,143.28 2,513.20 d) Capital redemption reserve 0.07 - e) Other reserves i) FVOCI equity instruments 469.24 398.68 ii) Effective portion of cash flow hedges 0.43 (1.64) 3,681.74 3,040.70 Refer Standalone Statement of changes in equity for detailed movement in other equity balance. Nature and purpose of other reserves a) Securities premium Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013. b) General reserve General reserve represents amount appropriated out of retained earnings pursuant to the earlier provisions of the Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013. c) Retained earnings Retained earnings are the profits that the Company has earned till date, less, any transfers to general reserve, any transfers from or to other comprehensive income, dividends or other distributions paid to shareholders. d) Capital redemption reserve In accordance with Section 69 of the Companies Act, 2013, the Company has created capital redemption reserve equal to the nominal value of the shares bought back as an appropriation from general reserve. e) FVOCI equity instruments The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity instruments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised. f) 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.