Financial Risk Management

12 Months Ended

Mar. 31, 2025

Disclosure of financial risk management [Abstract]

Disclosure of financial risk management [text block]

34.

Financial Risk Management

The Group has exposure to the following risks from its use of financial instruments:

Credit risk

Liquidity risk

Market risk

The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Board of Directors has established a risk management policy to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and the Group’s activities. The Group Audit Committee oversees how management monitors compliance with the Group’s risk management policies and procedures and reviews the risk management framework. The Group Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

Credit risk

: Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group’s trade receivables, treasury operations and other activities that are in the nature of leases.

Trade and other receivables

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Management considers that the demographics of the Group’s customer base, including the default risk of the industry and country in which customers operate, has less of an influence on credit risk. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of the customers to which the Group grants credit terms in the normal course of the business.

Cash and cash equivalents and other investments

In the area of treasury operations, the Group is presently exposed to counter-party risks relating to short-term and medium term deposits placed with public-sector banks, and also to investments made in mutual funds.

The Chief Financial Officer is responsible for monitoring the counterparty credit risk and has been vested with the authority to seek Board’s approval to hedge such risks in case of need.

Exposure to credit risk

The gross carrying amount of financial assets, net of any impairment losses recognized represents the maximum credit exposure. The maximum exposure to credit risk as of March 31, 2025 and 2024 was as follows:

	March 31, 2025		March 31, 2024
Cash and cash equivalents (Including other bank deposits)		6,304,026		5,394,189
Restricted Cash		453,800		440,445
Other assets		2,393,363		2,004,216
Trade receivables		10,892,452		10,155,223
Other receivables		316,403		157,779
Other investments		1,229,808		1,203,862
		21,589,852		19,355,714

Impairment for financial assets

Allowances for impairment for trade receivables have been provided based on Expected Credit Loss Method adopting a simplified approach provided in IFRS 9. The ageing analysis of trade receivables has been considered from the due date for the practical expedient. The ageing of trade receivables, net of allowances, is given below:

Period (in days)	March 31, 2025		March 31, 2024
Less than 365 days		10,564,027		9,828,223
More than 365 days		328,425		327,000
		10,892,452		10,155,223

See note 13 for the activity in the allowance for impairment of trade account receivables.

Liquidity risks

: Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. Typically, the Group ensures that it has sufficient cash on demand to meet expected operational expenses, servicing of financial obligations. In addition, the Group has concluded arrangements with well-reputed Banks, and has unused lines of credit that could be drawn upon should there be a need. The Company is also in the process of negotiating additional facilities with Banks for funding its requirements.

The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements:


As of March 31, 2025	Carrying amount		Contractual cash flows		0-12 months		1-3 years		3-5 years		>5 years
Non-derivative financial liabilities
Bank overdrafts		326,327		326,327		326,327		-		-		-
6% Compulsorily Convertible Debentures		6,259,685		8,438,693		600,000		1,200,000		1,200,000		5,438,693

8.95% Non-Convertible Debentures		2,500,000		5,745,100		223,800		447,600		447,600		4,626,100
Lease liabilities		3,810,238		10,541,842		689,151		1,335,567		1,043,869		7,473,255
Borrowing from banks		23,424,521		32,142,455		7,434,489		8,495,464		6,831,617		9,380,885
Borrowings from others		3,189,675		3,777,307		1,410,701		1,693,850		582,134		90,622
Trade and other payables		14,326,158		14,326,158		14,326,158		-		-		-
		53,836,604		75,297,882		25,010,626		13,172,481		10,105,220		27,009,555

As of March 31, 2024	Carrying amount		Contractual cash flows		0-12 months		1-3 years		3-5 years		>5 years
Non-derivative financial liabilities
Bank overdrafts		486,888		531,000		531,000		-		-		-
6% Compulsorily Convertible Debentures		7,156,074		8,631,877		528,003		1,584,000		1,056,003		5,463,871
6% Non-Cumulative Compulsorily Convertible Preference Shares		500,000		120,000		30,000		30,000		30,000		30,000
Lease liabilities		3,042,839		8,588,700		587,700		773,500		531,200		6,696,300
Other liabilities		1,612,496		1,612,496		1,594,551		17,945		-		-
Borrowing from banks		18,794,380		22,515,522		5,557,466		7,922,227		5,536,029		3,499,800
Borrowings from others		3,564,494		4,221,692		1,295,437		2,186,476		739,779		-
Trade and other payables		11,952,045		11,952,045		11,952,045		-		-		-
		47,109,216		58,173,332		22,076,202		12,514,148		7,893,011		15,689,971

As of March 31, 2023	Carrying amount		Contractual cash flows		0-12 months		1-3 years		3-5 years		>5 years
Non-derivative financial liabilities
Bank overdrafts		951,504		951,504		951,504		-		-		-
6% Compulsorily Convertible Debentures		4,000,000		6,040,663		240,003		7,20,000		4,80,003		46,00,657
6% Non Cumulative Compulsorily Convertible Preference Shares		500,000		500,000		-		-		-		500,000
Lease liabilities		2,451,179		5,703,330		585,790		788,588		555,216		3,773,736
Other liabilities		2,059,524		2,059,524		2,039,624		19,900		-		-
Borrowing from banks		14,982,750		19,853,900		5,680,600		5,755,100		4,800,000		3,618,200
Borrowings from others		2,045,239		2,361,800		748,900		1,149,400		463,500		-
Trade and other payables		11,287,453		11,287,453		11,287,453		-		-		-
		38,277,649		48,758,174		21,533,874		8,432,988		6,298,719		12,492,593

Market risk:

Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Group is exposed to market risk primarily related to foreign exchange rate risk (currency risk), interest rate risk and the market value of its investments. Thus, the Group’s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

Currency risk

: The Group’s exposure in US $, Euro and other foreign currency denominated transactions gives rise to Exchange Rate fluctuation risk. Group’s policy in this regard incorporates:

Forecasting inflows and outflows denominated in US$ for a twelve-month period

Estimating the net-exposure in foreign currency, in terms of timing and amount

Determining the extent to which exposure should be protected through one or more risk-mitigating instruments to maintain the permissible limits of uncovered exposures.

Carrying out a variance analysis between estimate and actual on an ongoing basis and taking stop-loss action when the adverse movements breach the 5% barrier of deviation, subject to review by Audit Committee.

The Group’s exposure to foreign currency risk as of March 31, 2025 was as follows:

	All amounts in respective currencies as mentioned (in thousands)
	US $			AUD		CHF		EUR			GBP			DHS			HK $			AUD $
Cash and cash equivalents		242			-		-		-			45			-			-			-
Trade receivables		13,231			-		-		511			12			-			-			-
Trade payables		(15,450	)		-		-		(375	)		(83	)		(15	)		(93	)		-
Foreign currency loan		(2,574	)		-		-		-						-						-
Net balance sheet exposure		(4,551	)		-		-		136			(26	)		(15	)		(93	)		-

The Group’s exposure to foreign currency risk as of March 31, 2024 was as follows:

	All amounts in respective currencies as mentioned (in thousands)
	US $			AUD		CHF		EUR			GBP		DHS			HK $		SG $
Cash and cash equivalents		600			-		-		5			105		-			-		-
Trade receivables		20,900			-		-		610			85		-			-		-
Trade payables		(8,050	)		-		-		(418	)				(29	)		-		-
Foreign currency loan		(2,200	)		-		-		-					-			-		-
Net balance sheet exposure		11,250			-		-		197			190		(29	)		-		-

The Group’s exposure to foreign currency risk as of March 31, 2023 was as follows:

	All amounts in respective currencies as mentioned (in thousands)
	US $			AUD		CHF		EUR			GBP			DHS			HK $		SG $
Cash and cash equivalents		405			-		-		44			69			-			-		-
Trade receivables		28,052			-		-		411			85			-			-		-
Trade payables		(28,575	)		-		-		(250	)		(34	)		(27	)		-		-
Foreign currency loan		(6,059	)		-		-		-			-			-			-		-
Net balance sheet exposure		(6177	)		-		-		205			120			(27	)		-		-

Sensitivity analysis

A 10% strengthening of the rupee against the respective currencies as of March 31, 2025 and March 31, 2024 would have increased / (decreased) other comprehensive income and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is performed on the same basis for 2024.

	Other comprehensive income		Profit or ( loss)
March 31, 2025		-		38,100

March 31, 2024		-		(97,080	)

A 10% weakening of the rupee against the above currencies as of March 31, 2025 and 2024 would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.

Interest Rate Risk:

Interest rate risk is the risk that an upward movement in interest rates would adversely affect the borrowing costs of the group.

Profile

At the reporting date the interest rate profile of the Group’s interest –bearing financial instruments were as follows:

	Carrying amount
	March 31, 2025		March 31, 2024
Fixed rate instruments
Financial assets
- Fixed deposits with banks		3,412,597		4,502,312
- Investment in debt securities		403,872		393,453

Financial liabilities
- Borrowings from banks		91,995		183,589
- Borrowings from others		11,949,360		11,361,108
Variable rate instruments
Financial liabilities
- Borrowings from banks		23,332,526		18,610,791
- Bank overdrafts		326,327		486,888

Fair value sensitivity for fixed rate instruments

The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss, and the Group does not designate derivatives (interest rate swaps) as hedging instruments under a fair value hedge accounting model. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity for variable rate instruments

An increase of 100 basis points in interest rates at the reporting date would have increased / (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. The analysis has been performed on the same basis as 2024.

	Equity		Profit or (loss)
March 31, 2025		-		(5,957	)
March 31, 2024		-		(9,245	)

A decrease of 100 basis points in the interest rates at the reporting date would have had equal but opposite effect on the amounts shown above, on the basis that all other variables remain constant.