Company Overview Financial Statements Notice Statutory Reports 77 Rudolf Atul Chemicals Ltd | Annual Report 2024-25 This note explains the sources of risk which the entity is exposed to and how the entity manages the risk. a) Credit risk The Company is exposed to credit risk, which is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Credit risk arises from cash and cash equivalents, investments carried at amortised cost and deposits with banks and inter corporate deposits given, as well as credit exposures to trade | non-trade customers including outstanding receivables. Management of credit risk Based on the financial transaction, credit risk is minimised. High rated banks | institutions are accepted for placing an FD or taking a LC from customers. Customer credit limits are regularly monitored. b) Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. The Company funding is through initial equity contribution and its retained earnings, and the Company has not availed credit facilities from any bank or financials institution. Financing The Company has not availed any credit facilities from banks and financial institutions. Management of liquidity risk Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company manages liquidity by ensuring that it will have sufficient funds to meet its liabilities when due, without incurring unacceptable losses. In doing this, the Management considers both normal and stressed conditions. A material and sustained shortfall in cash flow can undermine the credit rating and impair investor confidence of the Company. (` lakh) Contractual maturities of financial liabilities as at March 31, 2025 Note Less than 12 months More than 12 months Total Finance lease obligations 12 7.00 108.50 115.50 Security deposits 13 204.26 - 204.26 Others 13 75.03 - 75.03 Employee benefits payable 13 174.98 - 174.98 Trade payables 15 1,639.54 - 1,639.54 Total financial liabilities 2,100.81 108.50 2,209.31 (` lakh) Contractual maturities of financial liabilities as at March 31, 2024 Note Less than 12 months More than 12 months Total Finance lease obligations 12 - 108.58 108.58 Security deposits 13 172.93 - 172.93 Others 13 58.02 - 58.02 Employee benefits payable 13 176.08 - 176.08 Trade payables 15 1,399.93 - 1,399.93 Total financial liabilities 1,806.96 108.58 1,915.54
RkJQdWJsaXNoZXIy MjA2MDI2