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

369 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS 36. Financial Instruments (contd.) (c) Liquidity risk management (contd.) (ii) Maturity profile of derivative financial liabilities The following table details the Group’s liquidity analysis for its derivative financial instruments. Rupees crores Particulars Less than 1 Year 1-3 Years 3 Years to 5 Years As at 31 st March, 2023 Interest rate & currency swaps................................................................................................................................ 50.09 125.44 — Foreign exchange forward contracts.................................................................................................................... 62.94 20.65 — Commodity futures............................................................................................................................................................ 29.19 — — Gross obligation to acquire non-controlling interests.............................................................................. 206.39 — 92.80 348.61 146.09 92.80 As at 31 st March, 2022 Interest rate & currency swaps.............................................................................................................................. 2.67 48.93 102.62 Foreign exchange forward contracts.................................................................................................................. 91.47 — — Commodity futures.......................................................................................................................................................... 0.63 — — Derivatives on interest over joint ventures................................................................................................... 91.75 — — Gross obligation to acquire non-controlling interests............................................................................ 277.99 — 92.87 464.51 48.93 195.49 (d) Sensitivity Analysis (i) Foreign Currency Sensitivity The following tables demonstrate the sensitivity to a reasonably possible change in major 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, 2023 ....................................................................................... INR/USD +10% 8.38 (16.22) JPY/USD +10% 11.47 — INR/EUR +10% 25.24 — Year ended 31 st March, 2022........................................................................................... INR/USD +10% 38.53 (45.58) JPY/USD +10% 20.31 — INR/EUR +10% 4.29 — 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. (ii) Interest Rate sensitivity The sensitivity analysis below have been determined based on exposure to interest rate for both derivative and non-derivative instruments at the end of reporting period. For floating rate liabilities, analysis is prepared assuming the amount of liability outstanding at the end of the reporting period was outstanding for the whole year. The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected, after the impact of hedge accounting. With all other variables held constant, the Group’s profit before tax is affected through the impact on floating rate borrowings, as follows: Rupees crores Particulars Currency Increase/ decrease in basis points Effect on profit before tax Effect on pre-tax equity Year ended 31 st March, 2023 ................................................................................... INR +25 bps (63.71) — EUR +25 bps (1.63) — Year ended 31 st March, 2022....................................................................................... INR +25 bps (43.91) — EUR +25 bps (1.67) —