37. 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 ₹19.67 and ₹33.82 as on 31 March 2023 and 31 March 2022 respectively. Categories of financial instruments 31 March 2023 31 March 2022 FVTPL FVTOCI Amortised cost FVTPL FVTOCI Amortised cost Financial assets Quoted equity shares - 0.30 - - 0.20 - Unquoted equity shares - 2.60 - - 2.60 - Investment in government securities - - 0.15 - - 0.16 Trade receivables - - 280.06 - - 184.80 Cash and cash equivalents - - 163.36 - - 331.11 Other bank balances - - 28.26 - - 25.01 Loans - - 0.31 - - 0.89 Other fi nancial assets - - 159.16 - - 109.86 - 2.90 631.30 - 2.80 651.83 31 March 2023 31 March 2022 FVTPL FVTOCI Amortised cost FVTPL FVTOCI Amortised cost Financial liabilities Borrowings - - 1,322.40 - - 79.69 Lease liabilities - - 336.13 - - 75.36 Deferred payment liabilities - - 21.10 - - 37.47 Trade payables - - 448.76 - - 518.68 Other fi nancial liabilities - - 1,036.44 - - 1,042.16 - - 3,164.83 - - 1,753.36 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. 38. Financial risk management objectives and policies Financial Risk Management Framework The Group’s Board of Directors has an overall responsibility for the establishment and oversight of the Group’s risk management framework. The Holding Company’s Board of Directors has established Risk Management Committee, which is responsible for developing and monitoring the risk management policies. The Committee reports regularly to the Holding Company’s Board of Directors on its activities. The Group’s principal fi nancial liabilities comprises of borrowings, trade and other payables. The main purpose of these fi nancial liabilities is to fi nance the Group’s operations. The Group’s principal fi nancial assets include investments in equity shares, loans, trade and other receivables, and cash and cash equivalents that the Group derives directly from its operations. The Group 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 Group assesses the unpredictability of the fi nancial environment and seeks to mitigate potential adverse eff ects on the fi nancial performance of the Group. Summary of the significant accounting policies and other explanatory information (All amounts in ` millions, except share data and where otherwise stated) Heritage Foods Limited | 31st Annual report 2022-23 294
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