Potential impact of risk Management policy Sensitivity to risk iii) Foreign exchange risk The Company has international operations and is exposed to foreign exchange risk arising from foreign currency transactions. Foreign exchange risk arises from future commercial transactions and recognised financial assets and liabilities denominated in a currency that is not the functional currency (`) of the Company. The risk also includes highly probable foreign currency cash flows. The objective of the cash flow hedges is to minimise the volatility of the ` cash flows of highly probable forecast transactions. The Company has exposure arising out of export, import and other transactions other than functional risks. It hedges its foreign exchange risk using foreign exchange forward contracts and currency options after considering the natural hedge. The same is as per the guidelines laid down in its Risk Management Policy. As an estimation of the approximate impact of the foreign exchange rate risk, with respect to the Standalone Financial Statements, the Company has calculated the impact as follows: For derivative financial instruments, a 2% increase in the spot price as at the reporting date may have led to insignificant effect in other comprehensive income ` 0.14 cr (2023-24: Nil). A 2% decrease may have led to an additional ` 0.49 cr gain in other comprehensive income (2023-24: gain of ` 0.85 cr). For non-derivative financial instruments, a 2% increase in the spot price as at the reporting date may have led to an additional ` 8.70 cr gain in Standalone Statement of Profit and Loss (202324: gain of ` 7.10 cr). A 2% decrease may have led to an equal but opposite effect. Foreign currency risk exposure The exposure to foreign currency risk of the Company at the end of the reporting period expressed is as follows: Particulars As at March 31, 2025 US$ mn ` cr € mn ` cr £ mn ` cr CN¥ mn ` cr Financial assets Trade receivables 57.39 490.46 2.99 27.64 0.23 2.53 15.20 17.92 Dividends receivable 0.14 1.20 - - - Less: Hedged through derivatives1: Currency range options 6.40 54.69 - - - - - - Net exposure to foreign currency risk (assets) 51.13 436.97 2.99 27.64 0.23 2.53 15.20 17.92 Financial liabilities Trade payables 12.07 103.19 0.11 1.06 0.01 0.07 Net exposure to foreign currency risk (liabilities) 12.07 103.19 0.11 1.06 0.01 0.07 - - Particulars As at March 31, 2025 AED mn ` cr JPY mn ` cr CHF mn ` cr Financial assets Trade receivables - - - - - - Net exposure to foreign currency risk (assets) - - - - - - Financial liabilities Trade payables 0.03 0.08 3.24 0.19 0.01 0.11 Net exposure to foreign currency risk (liabilities) 0.03 0.08 3.24 0.19 0.01 0.11 Note 29.8 Financial risk management (continued) 214 214 Integrated Annual Report 2024-25
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