MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2023-24 224 17. Commodity price risk or Foreign Exchange Risk & hedging activities The Commodity prices in the Financial Year 2023-24 were moderate for most part of the year compared to the previous year, on account of lower global manufacturing activity and weak economic outlook, due to elevated policy interest rates in the major economies. Your Company stayed focused on cost reduction through measures like VA/VE, negotiation with suppliers, long term price contracting, etc. Your Company continues to watch the market situation closely and continues to focus on mitigating commodity price volatility through “Commodity Risk Management”. Hedging of currencies and commodities are being governed in accordance with the Foreign Exchange Risk Management Policy and Commodity Risk Management (b) Exposure of the listed entity to various commodities: Commodity Name Exposure towards the particular commodity F24 Exposure in Quantity terms towards the particular commodity (tons)# % of such exposure hedged through commodity Derivatives (Rs crores)* Domestic market International market (LME) Total OTC Exchange OTC Exchange Flat Steel (Sheet Metal) 6,243 9,46,165 Nil Nil Nil Nil Nil Casting 2,963 6,10,732 Nil Nil Nil Nil Nil Alloy Steel (Forging) 3,502 4,72,099 Nil Nil Nil Nil Nil * As per average prices of FY24 # As per Actual F24 Volumes (c) Commodity risks faced by the listed entity during the year and how they have been managed: The commodity risks on above commodities are mitigated through close monitoring of commodity movements and mitigation measures like value engineering yielding significant cost reduction. 18. Plant Locations Your Company’s manufacturing facilities are located at Kandivali, Nashik, Igatpuri, Nagpur, Chakan, Zaheerabad, Jaipur, Rudrapur, Haridwar, Mohali and Pithampur. 19. Address for correspondence Shareholders may correspond with the Registrar and Transfer Agents at: KFin Technologies Limited Unit: Mahindra & Mahindra Limited Selenium, Tower B, Plot No. 31-32, Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad, Rangareddi, Telangana - 500032, India. Tel. No. : +91 40 6716 2222 Email : [email protected] Website : www.kfintech.com Toll Free No. : 1800 3094 001 for all matters relating to transmission/ dematerialisation of shares, payment of dividend and any other query relating to Equity Shares of your Company. Policy, approved by the Board of Directors of your Company. The details of Foreign Exchange hedging activities undertaken by the Company are disclosed in Note No. 41 to the Annual Accounts of the Annual Report. Disclosures regarding commodity price risk and hedging activities, the details of exposure of the Company to material commodities and risks faced by it throughout the year as mandated by Regulation 34(3) read with clause 9(n) of Part C of Schedule V of the Listing Regulations and Section VI-E: Disclosures regarding commodity risks by listed entities of SEBI Master Circular No. SEBI/ HO/ CFD/ PoD2 /CIR/P/2023/120 dated 11th July, 2023, is as follows: (a) Total exposure of the listed entity to commodities in INR: Rs.12,707 crores.
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