Heritage Foods Limited
Heritage Foods Limited 198 Summary of the signi fi cant accounting policies and other explanatory information (All amounts in ₹ millions, except share data and where otherwise stated) The table below summarises the maturity pro fi le of the Company’s fi nancial liabilities based on contractual undiscounted payments: As at 31 March 2021 On demand Up to 1 year More than 1 year Total Financial guarantees 265.15 - - 265.15 Borrowings 4.69 242.33 223.23 470.25 Deferred payment liabilities - 15.99 37.48 53.47 Trade payables - 327.77 - 327.77 Other fi nancial liabilities - 1,193.47 27.03 1,220.50 269.84 1,779.56 287.74 2,337.14 As at 31 March 2020 On demand Up to 1 year More than 1 year Total Financial guarantees 261.38 - - 261.38 Borrowings 831.73 407.12 1,547.85 2,786.70 Deferred payment liabilities - 12.87 53.46 66.33 Trade payables - 568.52 - 568.52 Other fi nancial liabilities - 1,048.28 38.01 1,086.29 1,093.11 2,036.79 1,639.32 4,769.22 C. Market risk Market risk is the risk of loss of future earnings, fair values or future cash fl ows that may result from adverse changes in the market rates and prices. Market risk is attributable to all market risk-sensitive fi nancial instruments, all foreign currency receivables and payables and all short-term and long-term borrowings. Market risk comprises three types of risk: interest rate risk, currency risk and other price risks such as equity price risk. i. Interest risk: Interest rate risk is the risk that the fair value or future cash fl ows of a fi nancial instrument shall fl uctuate because of changes in the market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term obligations with fl oating interest rates. For the years ended 31 March 2021 and 31 March 2020, every 50 basis point decrease in the fl oating interest rate component applicable to the Company’s long-term borrowings would have increase/(decrease) the pro fi t/(loss) before tax by approximately ₹ 5.12 and ₹ 5.50 respectively. A 50 basis point increase in fl oating interest rate would have led to an equal but opposite e ff ect. ii. Foreign currency risk: Foreign currency risk is the risk that the fair value or future cash fl ows of an exposure shall fl uctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating and investing activities (when revenue or expense including capital expenditure is denominated in a foreign currency). The exposure of foreign currency risk to the entity is low as it enters very limited transactions in foreign currencies. The carrying amounts of the Company’s unhedged foreign currency denominated monetary items in ₹ terms as at 31 March 2021 and 31 March 2020 are as follows: Financial liabilities- capital creditors As at 31 March 2021 As at 31 March 2020 - EURO 2.70 -
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