Integrated Annual Report 2024-25 406 (iv) Sensitivity Analysis 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 pretax equity* Year ended 31st March, 2025....................................................................................... USD/INR +10% 72.27 — EUR/INR +10% (2.81) — Year ended 31st March, 2024....................................................................................... USD/INR +10% 30.56 — USD/JPY +10% 1.17 — EUR/INR +10% 1.36 — * Related to items directly accounted in reserves only 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. 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 pretax equity* Year ended 31st March, 2025................................................................................... INR +25 bps (96.84) — EUR +25 bps (1.91) — Year ended 31st March, 2024................................................................................... INR +25 bps (97.58) — EUR +25 bps (2.19) — * Related to items directly accounted in reserves only (b) Credit Risk Management Credit Risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group usually deals with creditworthy counterparties and obtain sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The exposure is continuously monitored. (i) Financial Guarantees In addition, the Group is exposed to credit risk in relation to financial guarantees given to banks. The Group’s maximum exposure in this respect is the maximum amount the Group could have to pay if the guarantee is called on. The amount recognised in Balance Sheet as liabilities and maximum exposure details are as given below: Rupees crores Particulars 2025 2024 Maximum exposure...................................................................................................................................................................................................... 572.29 557.34 Amount recognised as liability ........................................................................................................................................................................... 6.58 11.22 39. Financial instruments (Continued)
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