Atul Ltd 2020-21

149 Statutory Report 22 - 87 Financial Statements 88 - 229 Corporate Overview 01 - 21 Note 28.8 Financial risk management (continued) Other financial assets The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments in government securities, preference shares, mutual funds, bonds and loans to subsidiary companies. It has a diversified portfolio of investments with various number of counterparties which have secure credit ratings, hence the risk is reduced. Individual risk limits are set for each counterparty based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by its treasury department. Impact of hedging activities a) Disclosure of effects of hedge accounting on financial position As at March 31, 2021 ( ` 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 Changes in the value of hedged item used as the basis for recognising hedge effectiveness Assets Liabilities Assets Liabilities Cash flow hedge ` : US$ Foreign exchange risk Currency range options 56.29 - 0.60 - 1-12 74.26-77.80 0.60 (0.60) As at March 31, 2020 ( ` 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 Changes in the value of hedged item used as the basis for recognising hedge effectiveness Assets Liabilities Assets Liabilities Cash flow hedge ` : US$ Foreign exchange risk Currency range options 289.07 - - 1.62 1-12 73.05-75.36 (1.62) 1.62