MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2021-22

260 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS Details of Interest Rate Swaps outstanding at the end of reporting period Rupees crores Outstanding Contracts 2022 2021 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) Total . ............................................................................. — (0.72) There are no significant transactions of hedges which are ineffective. (c) The movements in Cash Flow Hedge Reserve for instruments designated in a cash flow hedge are as follows: Rupees crores Particulars 2022 2021 Exchange Rate Risk hedges Interest Rate Risk hedges Total Exchange Rate Risk hedges Interest Rate Risk hedges Total Balance as at the beginning of the year....................................................... Gross (12.43) (0.72) (13.15) (9.15) (1.19) (10.34) Deferred tax 3.12 0.18 3.30 2.30 0.29 2.59 Balance as at the beginning of the year (net)..................................................... (9.31) (0.54) (9.85) (6.85) (0.90) (7.75) (Gains)/Losses transferred to Profit or Loss on occurrence of the forecast transaction.................................................. (27.36) 0.72 (26.64) 1.11 — 1.11 Change in Fair Value of Effective Portion of cash flow hedges................................... 32.73 — 32.73 (4.39) 0.47 (3.92) Total ............................................................. 5.37 0.72 6.09 (3.28) 0.47 (2.81) Deferred tax effect on above. .................. (1.35) (0.18) (1.53) 0.83 (0.11) 0.71 Balance as at the end of the year................... Gross (7.06) — (7.06) (12.43) (0.72) (13.15) Deferred tax 1.77 — 1.77 3.12 0.18 3.30 Balance as at the end of the year (net).......... (5.29) — (5.29) (9.31) (0.54) (9.85) Of the above: Balance relating to continuing hedges.......... (5.29) — (5.29) (9.31) (0.54) (9.85) Total ............................................................. (5.29) — (5.29) (9.31) (0.54) (9.85) (d) Sensitivity Analysis (i) Foreign Currency Sensitivity The following tables demonstrate the sensitivity to a reasonably possible change in exchange rates, with all other variables held constant. Rupees crores Particulars Currency Change in rate Effect on profit before tax Effect on pre-tax equity Year ended 31 st March, 2022 ................................................. USD +10% 35.03 (45.58) EUR +10% 2.49 — Year ended 31 st March, 2021................................................. USD +10% 40.32 (23.70) EUR +10% (4.38) — The sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year. 38. Financial instruments (contd.)