Heritage Foods Limited

Heritage Foods Limited 196 Summary of the signi fi cant accounting policies and other explanatory information (All amounts in ₹ millions, except share data and where otherwise stated) 36 Categories of Financial instruments and their fair values The carrying amount of all fi nancial assets and fi nancial liabilities appearing in the fi nancial statements are reasonable approximation of their fair values, except for deferred payment liabilities whose fair value amounts to ₹ 46.36 and ₹ 54.28 as on 31 March 2021 and 31 March 2020 respectively. Categories of fi nancial instruments Particulars As at 31 March 2021 As at 31 March 2020 FVTPL FVTOCI Amortised cost FVTPL FVTOCI Amortised cost Financial assets Quoted equity shares - 0.13 - 1,078.83 359.82 - Unquoted equity shares - 2.60 - - 2.60 - Investment in government securities - - 0.16 - - 0.16 Trade receivables - - 145.33 - - 210.95 Cash and cash equivalents - - 196.64 - - 533.23 Other bank balances - - 17.29 - - 17.10 Loans - - 88.29 - - 78.98 Other fi nancial assets - - 3.63 - - 8.66 - 2.73 451.34 1,078.83 362.42 849.08 Particulars As at 31 March 2021 As at 31 March 2020 FVTPL FVTOCI Amortised cost FVTPL FVTOCI Amortised cost Financial liabilities Deferred payment liabilities - - 53.47 - - 66.33 Borrowings - - 470.25 - - 2,786.70 Trade payables - - 327.77 - - 568.52 Other fi nancial liabilities - - 1,227.20 - - 1,088.63 - - 2,078.69 - - 4,510.18 The fair value of the fi nancial assets and fi nancial liabilities are included at an amount at which the instruments could be exchanged in a current transaction between the willing parties, other than in a forced or liquidation sale. 37 Financial risk management objectives and policies Financial Risk Management Framework The Company’s Board of Directors has an overall responsibility for the establishment and oversight of the Company’s risk management framework. The Board of Directors has established Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The Committee reports regularly to the Board of Directors on its activities. The Company’s principal fi nancial liabilities, other than derivatives, comprises of borrowings, trade and other payables. The main purpose of these fi nancial liabilities is to fi nance the Company’s operations. The Company’s principal fi nancial assets include investments in equity shares, loans, trade and other receivables, and cash and cash equivalents that the Company derives directly from its operations. The Company also holds FVTOCI/FVTPL investments and enters into derivative transactions. The Company is exposed primarily to Credit risk, Liquidity risk and Market risk ( fl uctuations in interest rates, foreign currency rates, and prices of equity instruments), which may adversely impact the fair value of its fi nancial instruments. The Company assesses the unpredictability of the fi nancial environment and seeks to mitigate potential adverse e ff ects on the fi nancial performance of the Company.