The table below summarises the maturity profi le of the Group’s fi nancial liabilities based on contractual undiscounted payments: Particulars As at 31 March 2023 As at 31 March 2022 On demand Up to 1 year More than 1 year Total On demand Up to 1 year More than 1 year Total Financial guarantees # 110.21 - - 110.21 120.26 - - 120.26 Borrowings 250.00 21.25 37.19 308.44 - 21.25 58.44 79.69 Deferred payment liabilities - 13.33 7.77 21.10 - 16.37 21.10 37.47 Lease liabilities - 61.17 549.07 610.24 - 33.65 53.17 86.82 Trade payables - 448.76 - 448.76 - 518.68 - 518.68 Other fi nancial liabilities - 1,028.91 - 1,028.91 - 1,032.93 - 1,032.93 360.21 1,573.42 594.03 2,527.66 120.26 1,622.88 132.71 1,875.85 # Represents loan amount outstanding to the bankers by the joint venture, against which fi nancial guarantees were extended by the Holding Company as at 31 March 2023 and 31 March 2022. 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 Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term obligations with fl oating interest rates. The impact on account of change in interest rate on the Company’s longterm obligations is not considered as signifi cant. 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 Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’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 Group is low as it enters very limited transactions in foreign currencies and accordingly any impact on account of change in the exchange rate is not considered as signifi cant. The carrying amounts of the Group’s unhedged foreign currency denominated monetary items in ₹ terms as at 31 March 2023 and 31 March 2022 are as follows: Financial liabilities- Capital creditors 31 March 2023 31 March 2022 - EURO - 2.65 iii. Equity price risk: The Group’s listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Group 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 Group’s senior management on a regular basis. The Group’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. 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 2022-23 296
RkJQdWJsaXNoZXIy NTE5NzY=