Atul Ltd 2022-23

179 Note 29.8 Financial risk management (continued) As at March 31, 2022 Note Carrying amount Less than 12 months More than 12 months Total Trade payables 18 619.95 619.95 - 619.95 Security and other deposits 15 31.09 31.09 - 31.09 Employee benefits payable 15 59.50 59.50 - 59.50 Creditors for capital goods 15 34.51 34.51 - 34.51 Other liabilities 15 7.37 4.64 2.73 7.37 Derivatives (settlement on net basis) 15 - - - - b) Management of market risk ThesizeandoperationsoftheCompanyexposesittothefollowingmarketrisksthatarisefromitsuseoffinancial instruments: i) price risk ii) foreign exchange risk The above risks may affect income and expenses or the value of its financial instruments. Its objective for market risk is to maintain this risk within acceptable parameters while optimising returns. The exposure to these risks and the management of these risks are explained as follows: Potential impact of risk Management policy Sensitivity to risk i) Price risk The Company is mainly exposed to the price risk due to its investments in equity instruments and mutual funds. The price risk arises due to uncertainties about the futuremarket values of these investments. Equity price risk is related to the change in market reference price of the investments in equity securities. In general, equity securities are not held for trading purposes. These investments are subject to changes in the market price of securities. The fair value of quoted equity instruments classified as fair value through other comprehensive income as at March 31, 2023, is ` 529.32 cr (March 31, 2022: ` 641.45 cr). The fair value of bonds classified at fair value through profit and loss as at March 31, 2023, is ` 112.74 cr (March 31, 2022: ` 113.11 cr). The fair value of mutual funds classified at fair value through profit and loss as at March 31, 2023, is ` 172.42 cr (March 31, 2022: ` 539.54 cr). In order to manage its price risk arising from investments in equity instruments, the Company maintains its portfolio in accordance with the framework set by the Risk Management Policy. Any investment or divestment must be approved by the Board, Chief Financial Officer and the Audit Committee. As an estimation of the approximate impact of price risk, with respect to investments in equity instruments, the Company has calculated the impact as follows: For equity instruments, a 4% increase in Nifty 50 prices may have led to approximately an additional ` 12.66 cr gain in other comprehensive income (2021-22: ` 17.72 cr). A 4% decrease in Nifty 50 prices may have led to an equal but opposite effect. For bonds, a 1% increase in prices may have led to approximately an additional ` 1.1 cr gain in the Standalone Statement of Profit and Loss (2021-22: ` 1.1 cr). A 1% decrease in prices may have led to an equal but opposite effect. For mutual funds, a 1% increase in prices may have led to approximately an additional ` 1.7 cr gain in the Standalone Statement of Profit and Loss (2021-22: ` 5.4 cr). A 1% decrease in prices may have led to an equal but opposite effect.

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