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

345 MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2021-22 36. Financial Instruments (contd.) (b) Credit Risk Management (contd.) Maximum Exposure to credit Risk The maximum exposure to credit risk of loans is their carrying amount. The maximum exposure is before considering the effect of mitigation through collateral. Narrative Description of Collateral The amount of collateral obtained, if deemed necessary by the financial services business upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral primarily include vehicles and residential units purchased by retail loan customers. Quantitative Information of Collateral - Credit Impaired assets (Collateral Coverage - Value of collateral available to mitigate the credit exposure) Rupees crores Loan To Value (LTV) Range Gross Value of loans in stage 3 2022 2021 Upto 50% coverage. .................................................................................................................................... 498.52 458.31 51 - 70% coverage. ...................................................................................................................................... 624.32 641.45 71 - 100% coverage. .................................................................................................................................... 644.08 679.45 Above 100% coverage................................................................................................................................. 4,021.70 4,945.81 5,788.62 6,725.02 (c) Liquidity risk management (i) Maturity profile of non-derivative financial liabilities The following table details the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. Rupees crores Particulars Less than 1 Year 1-3 Years 3 Years to 5 Years 5 years and above As at 31 st March, 2022 Short term borrowings - Principal ............................................... 26,042.12 — — — Short term borrowings - Interest ................................................. 2,534.50 — — — Long term borrowings - Principal................................................. — 31,785.68 8,478.03 8,457.00 Long term borrowings - Interest. ................................................. 1,929.04 5,034.55 2,254.76 5,014.52 Trade payables ............................................................................... 19,036.55 1.55 — — Financial Guarantees ..................................................................... 564.23 — — — Lease Liabilities............................................................................... 532.41 929.34 561.35 1,554.27 Other Financial Liabilities.............................................................. 2,408.86 284.72 129.77 124.00 Total ................................................................................................. 53,047.71 38,035.84 11,423.91 15,149.79 As at 31 st March, 2021 Short term borrowings - Principal ............................................... 25,180.00 — — — Short term borrowings - Interest ................................................. 3,273.75 — — — Long term borrowings - Principal ................................................ — 35,226.85 8,649.45 9,018.31 Long term borrowings - Interest ................................................. 2,053.05 5,889.07 2,363.65 4,876.81 Trade payables................................................................................ 15,505.79 1.44 — — Financial Guarantees ..................................................................... 1,030.61 — — — Lease Liabilities............................................................................... 642.52 823.38 527.96 1,262.97 Other Financial Liabilities.............................................................. 2,130.41 108.85 3.62 365.18 Total ................................................................................................. 49,816.13 42,049.59 11,544.68 15,523.27 The amounts included above for financial guarantee contracts are the maximum amounts the Group could be forced to settle under the arrangement for the full guaranteed amount if that amount is claimed by the counterparty to the guarantee. Based on expectations at the end of the reporting period, the Group considers that it is more likely than not that such an amount will not be payable under the arrangement.