annual-report-FY2021

267 MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2020-21 Hedge Accounting - Forwards Contracts that meet the requirements for hedge accounting are accounted as per the hedge accounting requirements of Ind AS 109 -Financial Instruments, while other contracts are accounted as derivatives measured through profit or loss. Details of Forward Foreign Currency Contracts outstanding at the end of reporting period Rupees crores 2021 2020 Outstanding Contracts Notional value Carrying amount of hedging instrument included in Other Financial Assets/ (Liabilities) Notional value Carrying amount of hedging instrument included in Other Financial Assets/ (Liabilities) Cash Flow Hedges Buy currency — EUR. ...................................................................... 428.75 (62.94) 414.10 (53.98) Sell currency — USD....................................................................... 262.81 8.91 594.38 (17.50) — EUR. ...................................................................... 1,514.77 65.77 – – — ZAR. ...................................................................... 269.33 (3.67) 87.41 15.16 Total 8.07 (56.32) There are no significant transactions of hedges which are ineffective. The Company also has outstanding forward exchange contracts that are not accounted as hedges. Notional value of the same is as given below:- Rupees crores Particulars 2021 2020 Sell currency — USD.................................................................................................................................................. 237.70 7.56 (b) Interest Rate Risk The Company uses a mix of cash and borrowings to manage the liquidity & fund requirements of its day-to-day operations. Further, certain interest bearing liabilities carry variable interest rates. Interest Rate risk on variable rate borrowings is managed by way of interest rate swaps. Hedge Accounting : Interest Rate Swaps Interest Rate Swaps entered into by the Company meet the requirements for hedge accounting under Ind AS 109 - Financial Instruments, and thus are accounted as such. Details of Interest Rate Swaps outstanding at the end of reporting period Rupees crores 2021 2020 Outstanding Contracts Notional value Carrying amount of hedging instrument included in Other Financial Assets/ (Liabilities) Notional value Carrying amount of hedging instrument included in Other Financial Assets/ (Liabilities) Cash Flow Hedges Floating to fixed Interest Rate Swaps ........................ 428.75 (0.72) 414.10 (1.19) Total . ............................................................................. (0.72) (1.19) There are no significant transactions of hedges which are ineffective. 34. Financial instruments (contd.)