Page 276 - Index

Standalone
35. Financial risk management
The Company is exposed to various risks in relation to financial instruments. The Company’s financial assets and
liabilities by category are summarised in note 36. The main types of risks are market risk (foreign currency exchange
rate risk and price risk), business and credit risks and liquidity risk. The Company has in place a robust risk management
policy with overall governance and oversight from the Audit Committee and Board of Directors. Risk assessment is
conducted periodically and the Company has a mechanism to identify, assess, mitigate and monitor various risks to
key business objectives.
The policies for managing specific risk are summarised below:
35.1 Market risk
Market risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes
in market price. Such changes may result from changes in foreign currency exchange rates, interest rate, price and
other market changes. The Company’s exposure to market risk is mainly due to foreign exchange rates and price risk.
Foreign currency exchange rate risk
The Company’s exposure to market risk includes changes in foreign exchange rates. Most of the Company’s transactions
are carried out in INR. Exposures to currency exchange rates arise from the Company’s overseas operations, which are
primarily denominated in US dollars (USD), Pounds Sterling (GBP), EURO and Emirati Dirhams (AED). As at December
31, 2024 and December 31, 2023, the Company has entered into foreign exchange forward contracts to hedge the effect
of adverse fluctuations in foreign currency exchange rates. The details in respect of the outstanding foreign exchange
forward contracts are given under note 36.2.
Following is the currency profile of non-derivative financial assets and financial liabilities:
Particulars As at December 31, 2024
(Foreign Currency in '000) (J lakh)
Financial assets Financial liabilities Financial assets Financial liabilities
USD 33,516 3,955 28,670 3,383
GBP 396 80 426 86
EURO 2,341 104 2,088 93
AED - 155 - 36
Others 453 167 188 90
Particulars As at December 31, 2023
(J lakh)
USD 41,475 6,353 34,569 5,296
GBP 549 18 586 19
EURO 1,856 24 1,718 23
AED 1,736 1,716 394 389
Others 233 2,778 70 465
(Foreign Currency in '000) Financial assets Financial liabilities Financial assets Financial liabilities
For the year ended December 31, 2024, every 5% increase/decrease of the respective foreign currencies compared
to functional currency of the Company would impact operating margins by C 1,384 lakh (+/- 5.51%) and equity
(+/- 0.78%). For the year ended December 31, 2023, operating margins would increase/decrease by C 1,557 lakh
(+/-4.58 %) and equity (+/- 1.05%). Exposure to foreign currency exchange rate vary during the year depending
upon the volume of overseas transactions. Nonetheless, the analysis above is considered to be representative of the
Company’s exposure to currency risk.
274 Annual Report 2024