176 Atul Ltd | Annual Report 2021-22 Note 28.8 Financial risk management (continued) Particulars As at March 31, 2022 US$ mn ` cr € mn ` cr £ mn ` cr Financial liabilities Trade payables (£ 4,216) 14.75 111.78 0.07 0.60 0.04 Net exposure to foreign currency risk (liabilities) 14.75 111.78 0.07 0.60 - - Particulars As at March 31, 2021 US$ mn ` cr € mn ` cr £ mn ` cr Financial assets Cash and cash equivalents (EEFC account ) 0.16 1.17 - - - - Trade receivables 46.70 341.43 2.65 22.72 0.15 1.51 Dividends receivable - - - - - - Less: Hedged through derivatives1: Currency range options 7.70 56.29 - - - - Net exposure to foreign currency risk (assets) 39.16 286.32 2.65 22.72 0.15 1.51 Financial liabilities Trade payables 14.06 102.79 0.11 0.94 - - Net exposure to foreign currency risk (liabilities) 14.06 102.79 0.11 0.94 - - 1Includes hedges for highly probable transactions up to next 12 months c) Management of credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty fails tomeet its contractual obligations. Trade receivables Concentrations of credit risk with respect to trade receivables are limited due to the customer base being large, diverse and across sectors and countries. A portion of trade receivables are secured by insurance policies or Export Credit Guarantee Corporation schemes. 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. Reconciliation of loss allowance provision – trade receivables (` cr) Particulars Loss allowance on trade receivables Loss allowance as on March 31, 2020 10.07 Changes in loss allowance 1.78 Loss allowance as on March 31, 2021 11.85 Changes in loss allowance 0.37 Loss allowance as on March 31, 2022 12.22
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