Financial instruments

12 Months Ended

Mar. 31, 2021

Disclosure of detailed information about financial instruments [abstract]

Disclosure of financial instruments [text block]

34. Financial instruments

Financial instruments by category

 The carrying value and fair value of financial instruments by each category as of March 31, 2021 were as follows:

			Financial
			assets/				Financial
			liabilities		Financial		assets /
			at		assets /		liabilities		Total
			amortised		liabilities at		at		carrying		Total fair
Particulars	Note		costs		FVTPL		FVTOCI		value		value
Assets
Cash and cash equivalents		8		5,502,054		-		-		5,502,054		5,502,054
Other assets		10		375,802		-		-		375,802		375,802
Trade receivables		13		8,520,118		-		-		8,520,118		8,520,118
Other receivables		13		79,830		-		-		79,830		79,830
Other investments		15		210,528		-		1,710		212,238		212,238
Liabilities
Bank overdraft		8		123,666		-		-		123,666		123,666
Lease liabilities		7		2,202,649		-		-		2,202,649		2,202,649
Other liabilities		18		216,284		-		-		216,284		216,284
Borrowings from banks		19		7,174,373		-		-		7,174,373		7,174,373
Borrowings from others		19		2,234,856		-		-		2,234,900		2,234,900
Trade and other payables		20		8,185,844		-		-		8,185,844		8,185,844
Derivative financial liabilities		20		8,079		-		-		8,079		8,079

The carrying value and fair value of financial instruments by each category as of March 31, 2020 were as follows:

			Financial
			assets/				Financial
			liabilities		Financial		assets /
			at		assets /		liabilities		Total
			amortised		liabilities at		at		carrying		Total fair
Particulars	Note		costs		FVTPL		FVTOCI		value		value
Assets
Cash and cash equivalents		8		2,651,085		-		-		2,651,085		2,651,085
Other assets		10		350,972		-		-		350,972		350,972
Trade receivables		13		9,631,400		-		-		9,631,400		9,631,400
Other receivables		13		139,122		-		-		139,122		139,122
Other investments		15		210,262		-		1,710		211,972		211,972
Liabilities
Bank overdraft		8		1,235,794		-		-		1,235,794		1,235,794
Lease liabilities		7		1,826,210		-		-		1,826,210		1,826,210
Other liabilities		18		77,746		-		-		77,746		77,746
Borrowings from banks		19		5,985,628		-		-		5,985,628		5,985,628
Borrowings from others		19		2,117,108		-		-		2,117,108		2,117,108
Trade and other payables		20		8,366,215		-		-		8,366,215		8,366,215
Derivative financial liabilities		20		-		428		-		428		428

Details of financial assets hypothecated as collateral

The carrying amount of financial assets as at March 31, 2021 and 2020 that the Group has provided as collateral for obtaining borrowings and other facilities from its bankers are as follows:

	As of
	March 31, 2021		March 31, 2020
Cash and cash equivalents		5,147,534		9,692,810
Other receivables & assets		368,650		2,461,808
Trade receivables		8,373,011		508,419
		13,889,195		12,663,037

Derivative financial instruments

(a) Forwards and options

Foreign exchange forward contracts and options are purchased to mitigate the risk of changes in foreign exchange rates associated with certain payables, receivables and forecasted transactions denominated in certain foreign currencies. These derivative contracts do not qualify for hedge accounting under IFRS 9 and are initially recognized at fair value on the date the contract is entered into and subsequently re-measured at their fair value. Gains or losses arising from changes in the fair value of the derivative contracts are recognized immediately in profit or loss. The counterparties for these contracts are generally banks or financial institutions. The following table gives details in respect of the notional amount of outstanding foreign exchange contracts as at March 31, 2021 and 2020.

	As of
	March 31, 2021		March 31, 2020
Forward contracts
In U.S. Dollars (Sell)		-		2,140
In U.S. Dollars (Buy)		-		-

The Company recognized a net loss on the forward contracts of ₹ 13,687 (March 31, 2020: ₹8,660 – Net Loss) for the year ended March 31, 2021.

The forward exchange contracts and option contracts mature between one and twelve months. The table below summarizes the notional amounts of derivative financial instruments into relevant maturity groupings based on the remaining period as at the end of the year:

	As of
	March 31, 2021		March 31, 2020
Buy:	(US $)		(US $)
Not later than one month	-		-
Later than one month and not later than three months		-		2,140
Later than three months and not later than six months		-		-
Later than six months and not later than one year		-		-

(b) Cross Currency Swap:

The Group has entered into Cross Currency Swaps in order to hedge the cash flows arising out of the Principal and Interest payments of the underlying External Commercial Borrowing denominated in USD. The period of the swap contracts is co terminus with the period of the underlying ECB. As per the terms of the arrangement, the Company shall pay INR fixed and receive fixed USD principal and interest cash flows during the term of the contract. The swap arrangement is marked to market at the end of every period and losses are recognised in the Statement of Income. The swap contracts outstanding balances as on March 31, 2021 is as follows.

Particulars	Value of the outstanding INR term loan		Value of the outstanding USD principal		Mark to Market losses/ (gain)
Tranche 1		1,470,000	USD	20,000		-
Tranche 2 (Undrawn)		2,205,000	USD	30,000		-
Total		3,675,000	USD	50,000		-

The maturity of these contracts extends for five years and six months. The table below summarizes the cash flows (principal) of these derivative financial instruments into relevant maturity groupings based on the remaining period as at the end of the year:

	As at				As at
Particulars	'March 31, 2021				'March 31, 2021
	Payable (USD)		Receivable (INR)		Payable (USD)		Receivable (INR)
Less than 1 year		5,000		367,500		-		-
One to two years		10,000		735,000		-		-
Two to three years		10,000		735,000		-		-
Three to four years		10,000		735,000		-		-
Four to five years		10,000		735,000		-		-
More than five years		5,000		367,500		-		-
Total cash flows		50,000		3,675,000		-		-

The Group recognized a net loss on the cross currency swaps of ₹ Nil [Previous year : ₹ Nil for the year ended March 31, 2021.

(c) Interest Rate Swap:

The Group has entered into Interest Rate Swaps in order to hedge the cash flows arising out of the Interest payments of the underlying ECB. The period of the swap contract is co terminus with the period of the underlying ECB. As per the terms of the arrangement, the Company shall pay fixed rate of interest (8.9%) and receive variable rate of interest equal to LIBOR + 2.5% on notional amount. The swap arrangement is marked to market at the end of every period and losses are recognised in the Statement of income.

The maturity of these contracts extends for five years and six months. The table below summarizes the cash flows (interest) of these derivative financial instruments into relevant maturity groupings based on the remaining period as at the end of the year:

	As of
	March 31, 2021				March 31, 2020
	Receivable (US $)		Payable (US $)		Receivable (US $)		Payable (US $)
		1,210		323,043
Less than 1 year		1,126		269,994		4		8
One to two years		855		205,072		-		-
Two to three years		580		139,164		-		-
Three to four years		308		73,749		-		-
Four to five years		52		12,366		-		-
Total cash flows		4,131		1,023,388		4		8

* Amount below rounding off norm adopted by the Group

Total notional amount outstanding as of March 31, 2021 is US $ 2,000 (March 31, 2020: US $ 492).

Net loss on account of interest rate swaps amount to ₹ 8,079 for the year ended March 31, 2021 (March 31, 2020: ₹ 1,742– Net loss).

Fair value measurements:

The details of assets and liabilities that are measured on fair value on recurring basis are given below:

	Fair value as of March 31, 2021						Fair value as of March 31, 2020
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Derivative financial assets – gain on outstanding forward/options contracts		-		-		-		-		-		-
Liabilities
Derivative financial liabilities – loss on outstanding forward/options contracts		-		-		-		-		-		326
Derivative financial liabilities - loss on outstanding cross currency swaps		-		-		-		-		-		-
Derivative financial liabilities - loss on outstanding interest rate swaps		-		-		8,079		-		-		102

· Level 1 – unadjusted quoted prices in active markets for identical assets and liabilities.

· Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

· Level 3 – unobservable inputs for the asset or liability.

Interest income/ (expenses), gains/ (losses) recognized on financial assets and liabilities

Recognized in profit or loss

	Year ended
	March 31, 2021			March 31, 2020			March 31, 2019
Financial assets at amortised cost
Interest income on bank deposits		56,134			32,094			26,025
Interest income from other financial assets		26,700			161,826			20,289
Impairment loss of trade receivables		(755,495	)		(479,747	)		(536,290	)
Financial assets at fair value through profit or loss
Net change in fair value of derivative financial instruments gain/(loss)		8,079			380			1,247
Financial liabilities at amortised cost
Interest expenses on lease obligations		(178,300	)		(171,824	)		(14,747	)
Interest expenses on borrowings from banks, others and overdrafts		(714,121	)		(764,398	)		(617,087	)