Corporate Overview Statutory Reports Financial Statements 171 Note 29.8 Financial risk management (continued) As at March 31, 2023 Note Carrying amount Less than 12 months More than 12 months Total Borrowings 17 5.41 5.41 - 5.41 Trade payables 18 530.80 530.80 - 530.80 Security and other deposits 15 35.98 35.98 - 35.98 Employee benefits payable 15 42.77 42.77 - 42.77 Creditors for capital goods 15 43.59 43.59 - 43.59 Other liabilities 15 7.91 5.05 2.86 7.91 Derivatives (settlement on net basis) 15 0.54 0.54 - 0.54 b) Management of market risk The size and operations of the Company expose it to the following market risks that arise from its use of financial instruments: i) price risk ii) Interest risk ii) foreign exchange risk The above risks may affect income and expenses or the value of its financial instruments. Its objective for market risk is to maintain this risk within acceptable parameters while optimising returns. The exposure to these risks and the management of these risks are explained as follows: Potential impact of risk Management policy Sensitivity to risk i) Price risk The Company is mainly exposed to price risk due to its investments in equity instruments and mutual funds. The price risk arises due to uncertainties about the future market values of these investments. Equity price risk is related to the change in the market reference price of the investments in equity securities. In general, equity securities are not held for trading purposes. These investments are subject to changes in the market price of securities. The fair value of the quoted equity instruments classified as fair value through other comprehensive income as at March 31, 2024, is ` 800.97 cr (March 31, 2023: ` 529.32 cr). The fair value of bonds classified at fair value through profit and loss as at March 31, 2024, is ` 94.35 cr (March 31, 2023: ` 112.74 cr). The fair value of mutual funds classified at fair value through profit and loss as at March 31, 2024, is ` 410.41 cr (March 31, 2023: ` 172.42 cr). In order to manage its price risk arising from investments in equity instruments, the Company maintains its portfolio in accordance with the framework set by the Risk Management Policy. Any investment or divestment must be approved by the Board, Chief Financial Officer and the Audit Committee. As an estimation of the approximate impact of price risk, with respect to investments in equity instruments, the Company has calculated the impact as follows: For equity instruments, a 4% % increase in Nifty 50 prices may have led to approximately an additional ` 25.62 cr gain in other comprehensive income (2022-23: ` 12.66 cr). A 4% decrease in Nifty 50 prices may have led to an equal but opposite effect. For bonds, a 1% increase in prices may have led to approximately an additional ` 0.94 cr gain in the Standalone Statement of Profit and Loss (2022-23: ` 1.13 cr). A 1% decrease in prices may have led to an equal but opposite effect. For mutual funds, a 1% increase in prices may have led to approximately an additional ` 4.10 cr gain in the Standalone Statement of Profit and Loss (2022-23: ` 1.72 cr). A 1% decrease in prices may have led to an equal but opposite effect.
RkJQdWJsaXNoZXIy MjA2MDI2