MAHINDRA & MAHINDRA LTD. Standalone Accounts 325 (ii) Trade Receivables The Company applies the simplified approach to provide for expected credit losses prescribed by Ind AS 109, which permits the use of the lifetime expected loss provision for all trade receivables. The Company has computed expected credit losses based on a provision matrix which uses historical credit loss experience of the Company. The Company has taken dealer deposits, bank guarantees etc. which are considered as collateral and these are considered in determination of expected credit losses, where applicable. Amounts pertaining to these collaterals are as given below: Rupees crores Particulars 2025 2024 Dealer Deposits............................................................................................................................................................................................................. 2.24 3.06 Bank Guarantees.......................................................................................................................................................................................................... 764.17 841.86 Others (including Letters of Credit)............................................................................................................................................................... 395.78 222.49 Reconciliation of loss allowance for Trade Receivables: Rupees crores Particulars 2025 2024 Balance as at the beginning of the year.............................................................................................................................................. 258.33 230.71 Additions during the year....................................................................................................................................................................................... 63.72 65.10 Amounts written off during the year............................................................................................................................................................. (3.53) (9.17) Impairment losses reversed / written back............................................................................................................................................... (31.91) (28.31) Balance as at the end of the year............................................................................................................................................................. 286.61 258.33 The Company’s maximum exposure to credit risk in respect of financial guarantee contracts are disclosed in Note 39(b)(i). In respect of other financial assets, the maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of financial assets. (c) Liquidity risk management (i) Maturity profile of non-derivative financial liabilities The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay and 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 31st March, 2025 Short term borrowings - Principal............................................................................. 79.15 — — — Long term borrowings - Principal............................................................................... — 555.90 — 500.00 Long term borrowings - Interest................................................................................ 83.71 131.46 95.50 1,588.18 Lease liabilities (including interest)........................................................................... 180.65 287.75 94.65 56.29 Trade payables......................................................................................................................... 23,405.77 — — — Other Financial Liabilities................................................................................................. 1,764.90 243.18 2.00 280.75 Financial Guarantees........................................................................................................... 1,222.25 — — — Total............................................................................................................................................... 26,736.43 1,218.29 192.15 2,425.22 39. Financial instruments (contd.)
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