Financial instruments by category

The carrying value and fair value of financial instruments by each category as of March 31, 2022 were as follows:

Particulars	Note		Financial assets/ liabilities at amortised costs		Financial assets / liabilities at FVTPL		Financial assets / liabilities at FVTOCI		Total carrying value		Total fair value
Assets
Cash and cash equivalents		8		4,574,013		-		-		4,574,013		4,574,013
Other assets		10		589,971		-		-		589,971		589,971
Trade receivables		13		10,784,668		-		-		10,784,668		10,784,668
Other receivables		13		29,869		-		-		29,869		29,869
Other investments		15		474,340		-		1,710		476,050		476,050
Liabilities
Bank overdraft		8		371,995		-		-		371,995		371,995
Lease liabilities		7		2,207,403		-		-		2,207,403		2,207,403
Other liabilities		18		60,742		-		-		60,742		60,742
Borrowings from banks		19		9,379,680		-		-		9,379,680		9,379,680
Borrowings from others		19		5,500,511		-		-		5,500,511		5,500,511
Trade and other payables		20		10,510,409		-		-		10,510,409		10,510,409
Derivative financial liabilities		20		-		-		-

The carrying value and fair value of financial instruments by each category as of March 31, 2021 were as follows:

Particulars	Note		Financial assets/ liabilities at amortised costs		Financial assets / liabilities at FVTPL		Financial assets / liabilities at FVTOCI		Total carrying value		Total fair value
Assets
Cash and cash equivalents		8		5,502,054		-		-		5,502,054		5,502,054
Other assets		10		375,802		-		-		375,802		375,802
Trade receivables		13		8,520,118		-		-		8,520,118		8,520,118
Other receivables		13		79,830		-		-		79,830		79,830
Other investments		15		210,528		-		1,710		212,238		212,238
Liabilities
Bank overdraft		8		123,666		-		-		123,666		123,666
Lease liabilities		7		2,202,649		-		-		2,202,649		2,202,649
Other liabilities		18		216,284		-		-		216,284		216,284
Borrowings from banks		19		7,174,373		-		-		7,174,373		7,174,373
Borrowings from others		19		2,234,856		-		-		2,234,900		2,234,900
Trade and other payables		20		8,185,844		-		-		8,185,844		8,185,844
Derivative financial liabilities		20		8,079		-		-		8,079		8,079

Details of financial assets hypothecated as collateral

The carrying amount of financial assets as at March 31, 2022 and 2021 that the Group has provided as collateral for obtaining borrowings and other facilities from its bankers are as follows:

	As of
	March 31, 202 2		March 31, 20 21
Cash and cash equivalents		4,304,700		5,147,534
Trade receivables		10,991,295		8,373,011
		15,295,995		13,520,545

Derivative financial instruments

(a)

Forwards and options

Foreign exchange forward contracts and options are purchased to mitigate the risk of changes in foreign exchange rates associated with certain payables, receivables and forecasted transactions denominated in certain foreign currencies. These derivative contracts do not qualify for hedge accounting under IFRS 9 and are initially recognized at fair value on the date the contract is entered into and subsequently re-measured at their fair value. Gains or losses arising from changes in the fair value of the derivative contracts are recognized immediately in profit or loss. The counterparties for these contracts are generally banks or financial institutions. The following table gives details in respect of the notional amount of outstanding foreign exchange contracts as at March 31, 2022 and 2021.

	As of
	March 31, 20 22		March 31, 2021
Forward contracts
In U.S. Dollars (Sell)		-		-
In U.S. Dollars (Buy)		-		-

The Company recognized a net gain on the forward contracts of ₹ 2,206 (March 31, 2021: ₹ 13,687 – Net Loss) for the year ended March 31, 2022.

The forward exchange contracts and option contracts mature between one and twelve months. The table below summarizes the notional amounts of derivative financial instruments into relevant maturity groupings based on the remaining period as at the end of the year:

	As of
	March 31, 202 2		March 31, 20 21
Buy:		(US $)		(US $)
Not later than one month		-		-
Later than one month and not later than three months		-		-
Later than three months and not later than six months		-		-
Later than six months and not later than one year		-		-

(b)

Cross Currency Swap:

The Group has entered into Cross Currency Swaps in order to hedge the cash flows arising out of the Principal and Interest payments of the underlying External Commercial Borrowing denominated in USD. The period of the swap contracts is co terminus with the period of the underlying ECB. As per the terms of the arrangement, the Company shall pay INR fixed and receive fixed USD principal and interest cash flows during the term of the contract. The swap arrangement is marked to market at the end of every period and losses are recognised in the Statement of Income. The swap contracts outstanding balances as on March 31, 2022 and March 31, 2021 is as follows.

Particulars

Value of the outstanding INR

term loan

Value of the outstanding

USD principal

Mark to Market losses/ (gain)

Tranche 1

132,300

USD 18,000

Tranche 2 (Undrawn)

198,450

USD 27,000

Total

330,750

USD 45,000

Particulars

Value of the outstanding INR

term loan

Value of the outstanding

USD principal

Mark to Market losses/ (gain)

Tranche 1

147,000

USD 20,000

Tranche 2 (Undrawn)

220,500

USD 30,000

Total

367,500

USD 50,000

The maturity of these contracts extends for five years and six months. The table below summarizes the cash flows (principal) of these derivative financial instruments into relevant maturity groupings based on the remaining period as at the end of the year:

	As at				As at
	March 31, 2022				March 31, 2021
Particulars	Payable (USD)		Receivable (INR)		Payable (USD)		Receivable (INR)
Less than 1 year		10,000		73,500		5,000		36,750
One to two years		10,000		73,500		10,000		73,500
Two to three years		10,000		73,500		10,000		73,500
Three to four years		10,000		73,500		10,000		73,500
Four to five years		5,000		36,800		10,000		73,500
More than five years		-		-		5,000		36,750
Total cash flows		45,000		330,750		50,000		367,500

The Group recognized a net loss on the cross currency swaps of ₹ Nil [Previous year : ₹ Nil for the year ended March 31, 2022.

(c)

Interest Rate Swap:

The Group has entered into Interest Rate Swaps in order to hedge the cash flows arising out of the Interest payments of the underlying ECB. The period of the swap contract is co terminus with the period of the underlying ECB. As per the terms of the arrangement, the Company shall pay fixed rate of interest (8.9%) and receive variable rate of interest equal to LIBOR + 2.5% on notional amount. The swap arrangement is marked to market at the end of every period and losses are recognised in the Statement of income.

The maturity of these contracts extends for five years and six months. The table below summarizes the cash flows (interest) of these derivative financial instruments into relevant maturity groupings based on the remaining period as at the end of the year:

	As of
	March 31, 202 2				March 31, 2021
	Receivable (US $)			Payable (US $)	Receivable (US $)			Payable (US $)
		1,126	269,994			1,210	323,043
Less than 1 year		855	205,072			1,126	269,994
One to two years		580	139,164			855	205,072
Two to three years		308	73,749			580	139,164
Three to four years		52	12,366			308	73,749
Four to five years		-	-			52	12,366
Total cash flows		2,921	700,345			4,131	1,023,388

* Amount below rounding off norm adopted by the Group

Total notional amount outstanding as of March 31, 202

is US $ 4,500 (March 31, 20

: US $ 2,000)

Net gain on account of interest rate swaps amount to ₹ 16,879

for the year ended March 31, 202

(March 31, 20

: ₹ 8,079 – Net loss).

Fair value measurements:

The details of assets and liabilities that are measured on fair value on recurring basis are given below:

	Fair value as of March 31, 2022						Fair value as of March 31, 2021
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Derivative financial assets – gain on outstanding forward/options contracts		-		-		-		-		-		-
Liabilities
Derivative financial liabilities – loss on outstanding forward/options contracts		-		-		-		-		-		-
Derivative financial liabilities - loss on outstanding cross currency swaps		-		-		-		-		-		-
Derivative financial liabilities - loss on outstanding interest rate swaps		-		-		16,879		-		-		8,079

Level 1 – unadjusted quoted prices in active markets for identical assets and liabilities.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3 – unobservable inputs for the asset or liability.

Interest income/ (expenses), gains/ (losses) recognized on financial assets and liabilities

Recognized in profit or loss

	Year ended
	March 31, 202 2			March 31, 2021			March 31, 2020
Financial assets at amortised cost
Interest income on bank deposits		45,060			56,134			32,094
Interest income from other financial assets		28,517			26,700			161,826
Impairment loss of trade receivables		(433,723	)		(755,495	)		(479,747	)

Financial assets at fair value through profit or loss
Net change in fair value of derivative financial instruments gain/(loss)		(16,879	)		8,079			380

Financial liabilities at amortised cost
Interest expenses on lease obligations		(185,092	)		(178,300	)		(171,824	)
Interest expenses on borrowings from banks, others and overdrafts		(805,170	)		(714,121	)		(764,398	)