39. Capital risk management For the purpose of the Group’s capital management, capital includes issued equity capital, share premium and all other reserves attributable to the equity holders. The primary objective of the Group’s capital management is tomaximise the shareholder value. The Group 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 Group may adjust the dividend payments to shareholders, return capital to shareholders or issue new shares. The Group monitors capital using a gearing ratio, which is net debt divided by total equity plus net debt. The Group’s policy is to keep the gearing ratio up to 35%. The Group 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 1,322.40 79.69 Less: Cash and cash equivalents (163.36) (331.11) Net debt (A) 1,159.04 (251.42) Total equity (B) 7,258.67 6,575.54 Net debt and total equity (A) + (B) 8,417.71 6,324.12 Gearing ratio (%) 13.77% 0.00% In order to achieve this overall objective, the Group’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. 40. Disclosure of Interest in Joint venture and associate: Nature of relationship Country of Incorporation Ownership interest (%) 31 March 2023 31 March 2022 SKIL Raigam Power (India) Limited Associate India 43.33% 43.33% Heritage Novandie Foods Private Limited Joint venture India 50.00% 50.00% 41. The Group has not extended any loans or advances in the nature of loans to its promoters, directors, key managerial personnel and its related parties, as defi ned under the Act, during the years ended 31 March 2023 and 31 March 2022. Summary of the significant accounting policies and other explanatory information (All amounts in ` millions, except share data and where otherwise stated) 297 Consolidated | Financial Statements
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