Investor Presentaiton

MRP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2023 i) Market Risk Is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of a financial instrument, as a result of interest rates, foreign exchange rates and other price risks. Financial instruments affected by market risks, primarily include loans & borrowings, investments and foreign currency receivables, payables and borrowings. a) b) Interest Rate Risk: The Company borrows funds in Indian Rupees and Foreign currency, to meet both the long term and short term funding requirements. The Interest rate risk in terms of Foreign currency is managed through financial instruments available to convert floating rate liability into fixed rate liability. The Company due to its AAA rated status commands one of the cheapest source of funding. Interest rate is fixed for the tenor of the Long term loans availed by the Company. Interest on Short term borrowings is subject to floating interest rate and are repriced regularly. The sensitivity analysis detailed below have been determined based on the exposure to variable interest rates on the average outstanding amounts due to bankers over a year. The Company had issued floating interest rate Non convertible debenture linked to 6 month T-Bill rate, to meet the long term funding requirements. If the interest rates had been 0.50% to 1% higher / lower and all other variables held constant, the company's profit for the year ended 31st March, 2023 would have been decreased / increased by 10.66 Crores (Previous year *4.54 Crores). Currency Risk: Foreign currency risks from financial instruments at the end of the reporting period expressed in INR: Unhedged Short Term Exposures: Financial Assets Financial Liabilities 31.03.2023 (Crores) 31.03.2022 199.27 178.79 253.61 212.40 The company is mainly exposed to changes in US Dollar. The sensitivity to a 4% (Previous year 2%) increase or decrease in US Dollar against INR with all other variables held constant will be +/(-) 1.37 Crores (previous year *0.87 Crores). The Sensitivity analysis is prepared on the net unhedged exposure of the company at the reporting date. Hedged Foreign Currency Exposures: Foreign Exchange forward Contracts on External Commercial borrowings and certain highly probable forecast transactions, are measured at fair value through OCI on being designated as Cash Flow Hedges." The Company also enters into foreign exchange forward contracts with the intention to minimise the foreign exchange risk of expected purchases, these contracts are not designated in hedge relationships and are measured at fair value through profit or loss. The outstanding position and exposures are as under : i) Foreign Currency forward contracts designated as Hedge Instruments: Currency/Interest Rate Swap Currency USD Amount Crores Nature Cross Currency Forward Contract USD (135.18) Million (45.00) Million 101.68 Million Million ECB Loan (288.59) 844.11 (1042.38). INR Import purchase Figures in brackets are in respect of Previous year 131

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