Consolidated STRATEGIC REVIEW STATUTORY REPORT FINANCIAL STATEMENTS 282 32ND ANNUAL REPORT 2023-24 | HERITAGE FOODS LTD 36. Categories of Financial instruments and their fair values The carrying amount of all financial assets and financial liabilities appearing in the financial statements are reasonable approximation of their fair values, except for deferred payment liabilities whose fair value amounts to ₹6.88 and ₹19.67 as on 31 March 2024 and 31 March 2023 respectively. Categories of financial instruments 31 March 2024 31 March 2023 FVTPL FVTOCI Amortised cost FVTPL FVTOCI Amortised cost Financial assets Quoted equity shares - 0.48 - - 0.30 - Unquoted equity shares - 2.60 - - 2.60 - Investment in government securities - - 0.15 - - 0.15 Investment in mutual funds 1,221.83 - - - - - Trade receivables - - 287.06 - - 280.06 Cash and cash equivalents - - 785.08 - - 163.36 Other bank balances - - 53.15 - - 28.26 Loans - - 0.24 - - 0.31 Other financial assets - - 238.84 - - 209.17 1,221.83 3.08 1,364.52 - 2.90 681.31 31 March 2024 31 March 2023 FVTPL FVTOCI Amortised cost FVTPL FVTOCI Amortised cost Financial liabilities Borrowings - - 920.46 - - 1,322.40 Lease liabilities - - 393.44 - - 336.13 Deferred payment liabilities - - 7.77 - - 21.10 Trade payables - - 1,449.83 - - 770.49 Other financial liabilities - - 1,037.91 - - 714.71 - - 3,809.41 - - 3,164.83 The fair value of the financial assets and financial 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. 37. 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 financial liabilities comprises of borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Group’s operations. The Group’s principal financial 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 (fluctuations in interest rates, foreign currency rates, and prices of equity instruments), which may adversely impact the fair value of its financial instruments. The Group assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Group. Summary of the material accounting policies and other explanatory information (All amounts in ₹ millions, except share data and where otherwise stated)
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