iii. Equity price risk: The Company’s listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity price risk through diversifi cation and by placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Company’s senior management on a regular basis. The Company’s Board of Directors reviews and approves all equity investment decisions. At the reporting date, the exposure to unlisted equity securities at fair value was ₹2.60 (31 March 2022:₹2.60). The impact on account of change in the assumptions are not considered as signifi cant. 40. Capital risk management For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other reserves attributable to the equity holders. The primary objective of the Company’s capital management is to maximise the shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the fi nancial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payments to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total equity plus net debt. The Company’s policy is to keep the gearing ratio up to 35%. The Company includes within net debt, borrowings from banks less cash and cash equivalents. Borrowings from banks comprise of term loans and loans repayable on demand. 31 March 2023 31 March 2022 Borrowings from banks 1,243.58 - Less: Cash and cash equivalents (163.20) (324.76) Net debt (A) 1,080.38 (324.76) Total equity (B) 7,366.98 6,604.86 Net debt and total equity (A) + (B) 8,447.36 6,604.86 Gearing ratio (%) 12.79% 0.00% In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets fi nancial covenants attached to the borrowings. Breaches in meeting the fi nancial covenants would permit the lenders to immediately call back the borrowings. There was no breach in the fi nancial covenants of any borrowings during the year ended 31 March 2023 and 31 March 2022. No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2023 and 31 March 2022. 41. Disclosure of Interest in subsidiary, joint venture and associate: Nature of relationship Country of Incorporation Ownership interest (%) 31 March 2023 31 March 2022 Heritage Nutrivet Limited Subsidiary India 100.00% 100.00% SKIL Raigam Power (India) Limited Associate India 43.33% 43.33% Heritage Employees Welfare Trust Controlled trust India 0.00% 0.00% Heritage Novandie Foods Private Limited Joint venture India 50.00% 50.00% Summary of the significant accounting policies and other explanatory information (All amounts in ` millions, except share data and where otherwise stated) 233 Standalone | Financial Statements
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