MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2022-23

279 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS 1. Market Risk Management (contd.) 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 (FVTPL). Details of Forward Foreign Currency Contracts outstanding at the end of reporting period Rupees crores Outstanding Contracts 2023 2022 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 Sell currency — EUR............................................................................................................ 1,583.47 (54.40) 1,487.41 189.37 — USD............................................................................................................ 295.89 (1.54) 583.54 7.93 — ZAR............................................................................................................ 212.50 (0.09) 368.33 (20.98) — AUD............................................................................................................ 88.36 1.59 — — — BRL............................................................................................................ — — 7.97 (0.42) Total ..................................................................................................................... (54.44) 175.90 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 2023 2022 Sell currency Maturing less than 1 year — USD.......................................................................................................................................................................................................................... — 246.40 Buy currency — JPY/INR.................................................................................................................................................................................................................. 68.05 — — EUR/INR................................................................................................................................................................................................................ 13.00 — Cross Currency hedge — USD/JPY................................................................................................................................................................................................................ — 28.02 (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. There are no significant transactions of hedges which are ineffective. 38. Financial instruments (contd.)