annual-report-FY2021

339 MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2020-21 The carrying amounts of the Group’s foreign currency exposure at the end of the reporting period are as follows : Rupees crores US Dollar Euro JPY Others Total As at 31 st March, 2021 Financial Assets ................................................. 1,567.85 1,671.89 0.40 192.36 3,432.50 Financial Liabilities ........................................... 3,220.60 2,329.69 1,030.51 420.33 7,001.13 As at 31 st March, 2020 Financial Assets ................................................. 1,467.68 443.74 4.16 402.19 2,317.77 Financial Liabilities ........................................... 3,440.27 923.71 610.24 183.79 5,158.01 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 Outstanding Contracts 2021 2020 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 Maturing in 1+ years — EUR/INR .................................. 428.75 (62.94) 414.10 (53.98) Sell currency Maturing in 1+ years — EUR/INR .................................. 1,514.77 65.77 — — Maturing less than 1 year — USD/INR .................................. 269.77 8.89 594.38 (17.50) — USD/KRW ................................ — — 865.41 (0.54) — EUR/KRW ................................ — — 556.34 1.42 — ZAR/INR .................................. 269.33 (3.67) 87.41 15.16 — EUR/INR .................................. 6.78 0.22 14.88 (0.53) — CAD/INR .................................. 5.56 0.01 0.43 0.01 # Notional value of respective currency pair have been converted into presentation currency i.e. INR using year end closing exchange rate (b) Interest Rate Risk The Group 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 Group meet the requirements for hedge accounting under Ind AS 109 - Financial Instruments, and thus are accounted as such. 33. Financial Instruments (contd.)