PRIVI SPECIALITY CHEMICALS LIMITED Annual Report 2020-21

125 Annual Report 2020-21 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS Impairment of Trade receivables At March 31, 2021, the ageing of trade and other receivables that were not impaired was as follows. Particulars Carrying amount March 31, 2021 March 31, 2020 (Restated) Neither past due nor impaired 18,868.67 16,394.25 Past due 0-90 days 3,844.21 4,044.30 Past due 90-180 days 547.81 701.29 Past due 180-270 days 294.45 40.34 Past due 270-360 days 8.34 – More than 360 days 65.57 516.42 23,629.05 21,696.60 Movement in Loss allowance measured at amount equal to life time expected credit losses for trade receivables. Particulars Amount Balance as at April 01, 2019 (Restated) 10.86 Impairment loss recognised – Amounts written off – Balance as at March 31, 2020 (Restated) 10.86 Impairment loss recognised – Amounts written off – Balance as at March 31, 2021 10.86 The Company uses an allowance matrix to measure the expected credit loss of trade receivables. Based on the industry practices and the business environment in which the entity operates, Management considers that the trade receivables are in default (credit impaired) if the payments are more than 365 days past due. Management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk and the current provision for the bad debts represents the impacted credit loss it foresees in its receivables. Financial assets other than trade receivables are not impaired and further, there are no amounts that are past due. Management believes that the amounts are collectible in full, based on historical payment behaviour. b) Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. The Company maintains the level of its cash and cash equivalents at an amount in excess of expected cash outflow on financial liabilities. The Company also monitors the level of expected cash inflows on trade and other receivables together with expected cash inflows on trade and other payables Exposure to liquidity risk: The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements. NOTES TO THE STANDALONE FINANCIAL STATEMENTS for the year ended March 31, 2021 (Currency: Indian Rupees in lakhs) 33 Financial risk management (continued) a) Credit Risk (continued)