Integrated Annual Report 2024-25 322 38. Capital Management The Company’s capital management strategy is to effectively determine, raise and deploy capital so as to create value for its shareholders. The same is done through a mix of either equity and / or preference and / or convertible and / or combination of short term / long term debt as may be appropriate. ‘The Company determines the amount of capital required on the basis of its product, capital expenditure, operations and strategic investment plans. The same is funded through a combination of capital sources be it either equity and / or preference and / or convertible and / or combination of short term / long term debt as may be appropriate. The capital structure is monitored on the basis of net debt to equity and maturity profile of overall debt portfolio of the Company. Net Debt and Equity is given in the table below: Rupees crores Particulars 2025 2024 Total Equity.......................................................................................................................................................................................................................................... 61,585.10 52,291.18 Net Debt Short term debt...................................................................................................................................................................................................................... 79.15 450.03 Long term debt....................................................................................................................................................................................................................... 1,055.90 1,134.86 Gross Debt............................................................................................................................................................................................................................................... 1,135.05 1,584.89 Less: Current investments............................................................................................................................................................................................................ 13,089.45 8,478.90 Cash and bank balances................................................................................................................................................................................................... 10,798.64 7,288.26 Net Debt.................................................................................................................................................................................................................................................... (22,753.04) (14,182.27) Total Capital deployed................................................................................................................................................................................................................ 38,832.06 38,108.91 39. Financial instruments Financial Risk Management Framework In the course of its business, the Company is exposed to certain financial risks namely credit risk, interest risk, currency risk & liquidity risk. The Company’s primary focus is to achieve better predictability of financial markets and seek to minimize potential adverse effects on its financial performance. The financial risks are managed in accordance with the Company’s risk management policy which has been approved by its Board of Directors. (a) Market Risk Management Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates etc. could affect the Company’s income or the value of its holdings of financial instruments including cash flow. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while maximising the return. (i) Currency Risk The Company’s exposure to currency risk relates primarily to the Company’s operating activities including anticipated sales, purchases and borrowings where the transactions are denominated in a currency other than the Company’s functional currency. The Company’s foreign currency exposures are managed in accordance with its Foreign Exchange Risk Management Policy which has been approved by its Board of Directors. The Company hedges its foreign currency risk mainly by way of forward covers. Other derivative instruments may be used if deemed appropriate. The carrying amounts of the Company’s foreign currency exposure at the end of the reporting period are as follows: Rupees crores Particulars US Dollar Euro Others Total As at 31st March, 2025 Financial assets.................................................................................................................... 3,051.64 107.94 844.45 4,004.03 Financial liabilities............................................................................................................... 407.37 115.41 292.88 815.66 As at 31st March, 2024 Financial assets.................................................................................................................... 2,863.51 73.38 515.36 3,452.25 Financial liabilities............................................................................................................... 439.44 58.77 187.80 686.01
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