Investor Presentaiton

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2023 The terms of the foreign currency forward contracts match the terms of the transactions. As a result, no hedge ineffectiveness arises requiring recognition through profit or loss. ii) Other Forward Contract Outstanding: Forward Contract Figures in brackets are in respect of Previous year Currency USD Amount 30.49 Million (24.96) Million Crores 252.84 Nature Cross Currency Import purchase INR (190.91) iii) The following table provides the reconciliation of cash flow hedge for the year ended 31st March, 2023: Particulars Balance at the beginning of the year Gain/ (Loss) recognized in other comprehensive income during the year net of tax Balance at the end of the year c) Price Risk: Year Ended 31.03.2023 (Crores) Year Ended 31.03.2022 3.28 1.59 0.25 1.69 3.53 3.28 ii) The Company is affected by the price stability of certain commodities. Due to the significantly increased volatility of certain commodities like Natural Rubber, Synthetic Rubber and other Chemicals, the Company enters into purchase contracts on a short to medium Term and forward foreign exchange contracts are entered into to bring in stability of price fluctuations. The Company's investments in Quoted and Unquoted Securities are susceptible to market price risk arising from uncertainties about future values of investment securities. The company manages the securities price risk through investments in debt funds and diversification by placing limits on individual and total investments. Reports on Investment Portfolio are reviewed on regular basis and all approvals of investment decisions are done in concurrence with the senior management. As at 31st March 2023 the investments in debt mutual funds and bonds amounts to *3071 Crores (Previous year *3632.50 Crores). A 1% point increase or decrease in the NAV with all other variables held constant would have lead to approximately an additional *31 Crores (Previous year *36 Crores) on either side in the statement of profit and loss. Credit Risk Is the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. It arises from credit exposure to customers, financial instruments viz., Investments in Equity Shares, Bonds, Debt Funds, Fixed Deposits, Others and Balances with Banks. The Company's marketing policies are well structured and all replacement sales are predominantly through dealers and the outstanding are secured by dealer deposits. As regards sales to O.E., and other institutional sales, the Company carries out periodic credit checks and also limits the exposure by establishing maximum payment period for customers and by offering prompt payment discounts. The outstanding trade receivables due for a period exceeding 180 days as at the year ended 31st March, 2023 is 0.02% (31st March, 2022 0.25%) of the total trade receivables. 132

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