The carrying value of financial instruments by categories as at March 31, 2023 is as follows:


			Fair value through other comprehensive income
	Fair value through profit or loss		Mandatory		Designated upon initial recognition		Amortized cost		Total
Financial Assets:
Cash and cash equivalents (Refer to Note 11)	₹	-	₹	-	₹	-	₹	91,880	₹	91,880
Investments (Refer to Note 8)
Equity Instruments		3,773		-		15,647		-		19,420
Fixed maturity plan mutual funds		1,300		-		-		-		1,300
Short-term mutual funds		40,262		-		-		-		40,262
Non-convertible debentures		-		146,296		-		-		146,296
Government securities		-		9,422		-		-		9,422
Commercial papers		-		18,624		-		-		18,624
Certificate of deposits		-		16,828		-		-		16,828
Bonds		-		54,025		-		-		54,025
Inter corporate and term deposits		-		-		-		23,775		23,775
Other financial assets
Trade receivables (Refer to Note 9)		-		-		-		127,213		127,213
Unbilled receivables		-		-		-		60,515		60,515
Other financial assets (Refer to Note 12)		-		-		-		15,426		15,426
Derivative assets (Refer to Note 19)		1,101		-		772		-		1,873
	₹	46,436	₹	245,195	₹	16,419	₹	318,809	₹	626,859
Financial Liabilities:
Trade payables and other liabilities
Trade payables and accrued expenses (Refer to Note 15)	₹	-	₹	-	₹	-	₹	89,054	₹	89,054
Other financial liabilities (Refer to Note 16)		-		-		-		6,790		6,790
Loans, borrowings and bank overdrafts (Refer to Note 14)		-		-		-		150,093		150,093
Lease liabilities		-		-		-		24,573		24,573
Derivative liabilities (Refer to Note 19)		470		-		2,534		-		3,004
	₹	470	₹	-	₹	2,534	₹	270,510	₹	273,514

The carrying value of financial instruments by categories as at March 31, 2024 is as follows:


			Fair value through other comprehensive income
	Fair value through profit or loss		Mandatory		Designated upon initial recognition		Amortized cost		Total
Financial Assets:
Cash and cash equivalents (Refer to Note 11)	₹	-	₹	-	₹	-	₹	96,953	₹	96,953
Investments (Refer to Note 8)
Equity Instruments		4,404		-		15,830		-		20,234
Fixed maturity plan mutual funds		1,395		-		-		-		1,395
Short-term mutual funds		71,686		-		-		-		71,686
Non-convertible debentures		-		154,407		-		-		154,407
Government securities		-		7,030		-		-		7,030
Commercial papers		-		11,845		-		-		11,845
Bonds		-		28,195		-		-		28,195
Inter corporate and term deposits		-		-		-		38,008		38,008
Other financial assets
Trade receivables (Refer to Note 9)		-		-		-		119,522		119,522
Unbilled receivables		-		-		-		58,345		58,345
Other financial assets (Refer to Note 12)		-		-		-		16,086		16,086
Derivative assets (Refer to Note 19)		390		-		968		-		1,358
	₹	77,875	₹	201,477	₹	16,798	₹	328,914	₹	625,064
Financial Liabilities:
Trade payables and other liabilities
Trade payables and accrued expenses (Refer to Note 15)	₹	-	₹	-	₹	-	₹	88,566	₹	88,566
Other financial liabilities (Refer to Note 16)		-		-		-		7,257		7,257
Loans, borrowings and bank overdrafts (Refer to Note 14)		-		-		-		141,466		141,466
Lease liabilities		-		-		-		23,183		23,183
Derivative liabilities (Refer to Note 19)		329		-		233		-		562
	₹	329	₹	-	₹	233	₹	260,472	₹	261,034

The following table contains information on other financial assets and trade payable and other financial liabilities subject to offsetting:


	As at March 31, 2023							As at March 31, 2024
	Gross amounts recognized		Gross amounts of recognized financial liabilities set off			Net amounts recognized		Gross amounts recognized		Gross amounts of recognized financial liabilities set off			Net amounts recognized
Trade receivables - non-current	₹	863	₹	-		₹	863	₹	4,045	₹	-		₹	4,045
Trade receivables - current		134,053		(7,703	)		126,350		125,624		(10,147	)		115,477
Other financial assets - non-current		6,330		-			6,330		5,550		-			5,550
Other financial assets - current		9,096		-			9,096		10,536		-			10,536
Unbilled receivables		62,690		(2,175	)		60,515		61,055		(2,710	)		58,345
	₹	213,032	₹	(9,878	)	₹	203,154	₹	206,810	₹	(12,857	)	₹	193,953


	As at March 31, 2023							As at March 31, 2024
	Gross amounts recognized		Gross amounts of recognized financial liabilities set off			Net amounts recognized		Gross amounts recognized		Gross amounts of recognized financial liabilities set off			Net amounts recognized
Trade payables and accrued expenses	₹	98,932	₹	(9,878	)	₹	89,054	₹	101,423	₹	(12,857	)	₹	88,566
Other financial liabilities - non-current		2,649		-			2,649		4,985		-			4,985
Other financial liabilities - current		4,141		-			4,141		2,272		-			2,272
	₹	105,722	₹	(9,878	)	₹	95,844	₹	108,680	₹	(12,857	)	₹	95,823

For the financial assets and liabilities subject to offsetting or similar arrangements, each agreement between the Company and the counterparty allows for net settlement of the relevant financial assets and liabilities when both elect to settle on a net basis. In the absence of such an election, financial assets and liabilities will be settled on a gross basis and hence are not offset.

Financial assets and liabilities include cash and cash equivalents, trade receivables, unbilled receivables, finance lease receivables, employee and other advances, eligible current and non-current assets, loans, borrowings and bank overdrafts, lease liabilities, trade payables and accrued expenses, and eligible current liabilities and non-current liabilities.

The fair value of cash and cash equivalents, trade receivables, unbilled receivables, short-term loans, borrowings and bank overdrafts, lease liabilities, trade payables and accrued expenses, other current financial assets and liabilities approximate their carrying amount largely due to the short-term nature of these instruments. Finance lease receivables are periodically evaluated based on individual credit worthiness of customers. Based on this evaluation, the Company records allowance for estimated credit losses on these receivables. As at March 31, 2023 and 2024, the carrying value of such financial assets, net of allowances, and liabilities approximates the fair value.

The Company’s Unsecured Notes 2026 are contracted at fixed coupon rate of 1.50% and market yield on these loans as of 31st March 2024 is 5.23%.

Investments in short-term mutual funds and fixed maturity plan mutual funds, which are classified as FVTPL are measured using net asset values at the reporting date multiplied by the quantity held. Fair value of investments in non-convertible debentures, government securities, commercial papers, certificate of deposits and bonds classified as FVTOCI is determined based on the indicative quotes of price and yields prevailing in the market at the reporting date. Fair value of investments in equity instruments classified as FVTOCI or FVTPL is determined using market approach primarily based on market multiples method.

The fair value of derivative financial instruments is determined based on observable market inputs including currency spot and forward rates, yield curves and currency volatility.

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or 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 – Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

There were no transfers between Level 1, 2 and 3 during the year ended March 31, 2023 and 2024.

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:


	As at March 31, 2023											As at March 31, 2024
	Fair value measurements at reporting date											Fair value measurements at reporting date
	Total			Level 1		Level 2			Level 3			Total			Level 1		Level 2			Level 3
Assets
Derivative instruments:
Cash flow hedges	₹	772		₹	-	₹	772		₹	-		₹	968		₹	-	₹	968		₹	-
Others		1,101			-		1,101			-			390			-		390			-
Investments:
Short-term mutual funds		40,262			40,262		-			-			71,686			71,686		-			-
Fixed maturity plan mutual funds		1,300			-		1,300			-			1,395			-		1,395			-
Equity instruments		19,420			99		-			19,321			20,234			108		-			20,126
Non-convertible debentures, government securities, commercial papers, certificate of deposit and bonds		245,195			1,256		243,939			-			201,477			1,282		200,195			-

Liabilities
Derivative instruments:
Cash flow hedges	₹	(2,534	)	₹	-	₹	(2,534	)	₹	-		₹	(233	)	₹	-	₹	(233	)	₹	-
Others		(470	)		-		(470	)		-			(329	)		-		(329	)		-
Liability on written put options to non-controlling interests		-			-		-			-			(4,303	)		-		-			(4,303	)
Contingent consideration		(3,053	)		-		-			(3,053	)		(429	)		-		-			(429	)

The Company is exposed to currency fluctuations on foreign currency assets / liabilities, forecasted cash flows denominated in foreign currency and net investment in foreign operations. The Company is also exposed to interest rate fluctuations on investments in floating rate financial assets and floating rate borrowings. The Company follows established risk management policies, including the use of derivatives to hedge foreign currency assets / liabilities, interest rates, foreign currency forecasted cash flows and net investment in foreign operations. The counter parties in these derivative instruments are primarily banks and the Company considers the risks of non-performance by the counterparty as immaterial.

The following table presents the aggregate contracted principal amounts of the Company's derivative contracts outstanding:


										(in million)
	As at March 31,
	2023						2024
	Notional		Fair value				Notional			Fair value
Designated derivative instruments
Sell: Forward contracts	USD	977	₹		(262	)	USD		1,349	₹		264
	€	94	₹		(497	)	€		11	₹		10
	£	138	₹		(728	)	£		17	₹		16
	AUD	89	₹		9		AUD		15	₹		15

Range forward option contracts	USD	1,157	₹		(19	)	USD		730	₹		192
	€	49	₹		(112	)	€		129	₹		59
	£	60	₹		(69	)	£		86	₹		(11	)
	AUD	34	₹		29		AUD		57	₹		10

Interest rate swaps	INR	4,750	₹		(113	)	INR		4,750	₹		(71	)
	USD	-	₹		-		USD		225	₹		233

Non-designated derivative instruments
Sell: Forward contracts (1)	USD	1,550	₹		736		USD		1,158	₹		(31	)
	€	171	₹		(176	)	€		195	₹		119
	£	129	₹		(100	)	£		72	₹		44
	AUD	56	₹		69		AUD		55	₹		30
	SGD	14	₹		1		SGD		26	₹		12
	ZAR	43	₹		(7	)	ZAR		97	₹		4
	CAD	69	₹		(25	)	CAD		61	₹		(1	)
	SAR	147	₹		(6	)	SAR		188	₹		(2	)
	CHF	9	₹		5		CHF		-	₹		-
	QAR	4	₹		(2	)	QAR		5	₹		(2	)
	TRY	30	₹		(1	)	TRY		86	₹		(1	)
	NOK	13	₹		6		NOK		20	₹		2
	OMR	1	₹	^			OMR		2	₹	^
	SEK	3	₹	^			SEK		-	₹		-
	JPY	784	₹		6		JPY		3,975	₹		32
	DKK	33	₹		(4	)	DKK		33	₹		3
	AED	20	₹	^			AED		22	₹	^
	CNH	1	₹	^			CNH		11	₹		3
	MXN	-	₹		-		MXN		212	₹		(35	)
	COP	-	₹		-		COP		8,120	₹		(5	)
	MYR	-	₹		-		MYR		20	₹		(2	)
	RON	-	₹		-		RON		80	₹		(9	)
	BHD	-	₹		-		BHD	^		₹	^
	HKD	-	₹		-		HKD		80	₹	^
	CRC	-	₹		-		CRC		3,380	₹		(19	)
	NZD	-	₹		-		NZD		2	₹		2

Buy: Forward contracts	AED	5	₹	^			AED		-	₹		-
	NOK	12	₹	^			NOK		-	₹		-
	QAR	4	₹		2		QAR		29	₹		10
	ZAR	7	₹		1		ZAR		-	₹		-
	PLN	26	₹		13		PLN		39	₹		(6	)
	SEK	-	₹		-		SEK		39	₹		(5	)
	USD	-	₹		-		USD		4	₹		1
	CHF	-	₹		-		CHF		5	₹		(29	)
	TWD	-	₹		-		TWD		40	₹		(2	)
	BRL	-	₹		-		BRL		67	₹		(5	)
	RON	-	₹		-		RON		91	₹		(9	)
	CAD	-	₹		-		CAD		49	₹		(4	)
	€	-	₹		-		€		7	₹		(5	)
	CNH	-	₹		-		CNH		126	₹		(5	)
	RMB	-	₹		-		RMB		25	₹		(6	)
	£	-	₹		-		£		2	₹	^
	KWD	-	₹		-		KWD	^		₹	^
	AUD	-	₹		-		AUD		2	₹	^

Range forward option contracts	USD	30	₹		31		USD		-	₹		-

Interest rate swaps	USD	200	₹		82		USD		-	₹		-

			₹		(1,131	)				₹		796

^ Value is less than 1

(1) USD 1,550 and USD 1,158 includes USD/PHP sell forward of USD 77 and USD 167 as at March 31, 2023 and 2024, respectively.

The Company determines the existence of an economic relationship between the hedging instrument and the hedged item based on the currency, amount and timing of its forecasted cash flows. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument, including whether the hedging instrument is expected to offset changes in cash flows of hedged items.

If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes. Any hedge ineffectiveness is calculated and accounted for in consolidated statement of income at the time of the hedge relationship rebalancing.

The related hedge transactions for balance in cash flow hedging reserves as at March 31, 2024 are expected to occur and be reclassified to the statement of income over a period of fifteen months.

As at March 31, 2023 and 2024, there were no material gains or losses on derivative transactions or portions thereof that have become ineffective as hedges or associated with an underlying exposure that did not occur.

From time to time, in the normal course of business, the Company transfers accounts receivables, unbilled receivables and net investment in finance lease receivables (financial assets) to banks. Under the terms of the arrangements, the Company either substantially transfer its risks and rewards or surrenders control over the financial assets and transfer is without recourse. Accordingly, on such transfers the financial assets are derecognized and considered as sale of financial assets. Gains and losses on sale of financial assets without recourse are recorded at the time of sale based on the carrying value of the financial assets and fair value of servicing liability. The incremental impact of such transactions on our cash flow and liquidity for the years ended March 31, 2022, 2023 and 2024 is not material.

Market risk is the risk of loss of future earnings, to fair values or to future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments, foreign currency receivables, payables and loans and borrowings.

The Company’s exposure to market risk is a function of investment and borrowing activities and revenue generating activities in foreign currency. The objective of market risk management is to avoid excessive exposure of the Company’s earnings and equity to losses.

The Company manages market risk through a corporate treasury department, which evaluates and exercises independent control over the entire process of market risk management. The corporate treasury department recommends risk management objectives and policies, which are approved by our senior management and Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.

The Company operates internationally, and a major portion of its business is transacted in several currencies. Consequently, the Company is exposed to foreign exchange risk through receiving payment for sales and services in the United States of America and elsewhere and making purchases from overseas suppliers in various foreign currencies. The exchange rate risk primarily arises from foreign exchange revenue, receivables, cash balances, forecasted cash flows, payables and foreign currency loans and borrowings. A significant portion of the Company’s revenue is in the U.S. Dollar, the Pound Sterling, the Euro, the Canadian Dollar and the Australian Dollar, while a large portion of costs are in Indian rupees. The exchange rate between the rupee and these currencies has fluctuated significantly in recent years and may continue to fluctuate in the future. Appreciation of the rupee against these currencies can adversely affect the Company’s results of operations.

The Company evaluates exchange rate exposure arising from these transactions and enters into foreign currency derivative instruments to mitigate such exposure. The Company follows established risk management policies, including the use of derivatives like foreign exchange forward/option contracts to hedge forecasted cash flows denominated in foreign currency.

The Company has designated certain derivative instruments as cash flow hedges to mitigate the foreign exchange exposure of forecasted highly probable cash flows.

As at March 31, 2024, a ₹ 1 increase in the spot exchange rate of the Indian rupee with the U.S. dollar would result in approximately ₹ 2,801 (consolidated statement of income ₹ 987 and other comprehensive income ₹ 1,814) decrease in the fair value, and a ₹ 1 decrease would result in approximately ₹ 2,877 (consolidated statement of income ₹ 987 and other comprehensive income ₹ 1,890) increase in the fair value of foreign currency dollar denominated derivative instruments (forward and option contracts).

The below table presents foreign currency risk from non-derivative financial instruments as at March 31, 2023 and 2024:


	As at March 31, 2023
	US$			Euro			Pound Sterling			Australian Dollar			Canadian Dollar			Other currencies (1)			Total
Trade receivables	₹	42,312		₹	13,758		₹	8,911		₹	2,317		₹	1,567		₹	5,661		₹	74,526
Unbilled receivables		19,372			3,050			2,360			1,431			393			1,719			28,325
Contract assets		4,597			7,081			3,077			632			180			1,193			16,760
Cash and cash equivalents		10,048			5,810			2,448			1,288			2,643			4,244			26,481
Other financial assets		40,039			1,066			1,234			136			130			1,690			44,295
Lease Liabilities		(4,022	)		(2,998	)		(457	)		(175	)		(118	)		(1,765	)		(9,535	)
Trade payables, accrued expenses and other financial liabilities		(26,726	)		(11,417	)		(6,120	)		(1,329	)		(1,482	)		(3,285	)		(50,359	)
Non-derivative financial assets/ (liabilities), net	₹	85,620		₹	16,350		₹	11,453		₹	4,300		₹	3,313		₹	9,457		₹	130,493

(1) Other currencies reflect currencies such as Saudi Riyal, Singapore Dollar and Japanese Yen.


	As at March 31, 2024
	US$			Euro			Pound Sterling			Australian Dollar			Canadian Dollar			Other currencies (1)			Total
Trade receivables	₹	35,193		₹	12,315		₹	8,644		₹	2,556		₹	819		₹	4,198		₹	63,725
Unbilled receivables		18,104			3,427			3,250			1,694			599			2,615			29,689
Contract assets		3,849			6,004			2,341			495			112			525			13,326
Cash and cash equivalents		19,008			4,672			1,068			782			3,441			3,320			32,291
Other financial assets		12,549			1,428			197			207			785			1,818			16,984
Lease Liabilities		(2,976	)		(2,764	)		(183	)		(155	)		(137	)		(1,269	)		(7,484	)
Trade payables, accrued expenses and other financial liabilities		(27,161	)		(15,370	)		(9,533	)		(1,624	)		(920	)		(3,045	)		(57,653	)
Non-derivative financial assets/ (liabilities), net	₹	58,566		₹	9,712		₹	5,784		₹	3,955		₹	4,699		₹	8,162		₹	90,878

(1) Other currencies reflect currencies such as Saudi Riyal, United Arab Emirates Dirham and Japanese Yen.

As at March 31, 2023 and 2024, respectively, every 1% increase/decrease in the respective foreign currencies compared to functional currency of the Company increase/decrease our profits by approximately ₹ 1,305 and ₹ 909, respectively.

Interest rate risk primarily arises from floating rate investments and borrowings, including various revolving and other lines of credit.

The Company’s investments are primarily in short-term investments, which do not expose it to significant interest rate risk. The Company has taken certain interest rate swaps against its investments in floating rate instruments and if interest rates were to increase/(decrease) by 100 bps as on March 31, 2024, it would result in (decrease)/increase in fair value of interest rate swaps by approximately ₹ (26) and ₹ 26 respectively, in other comprehensive income.

From time to time, the Company manages its net exposure to interest rate risk relating to borrowings by entering into interest rate swap agreements, which allows it to exchange periodic payments based on a notional amount and agreed upon fixed and floating interest rates. If interest rates were to increase/(decrease) by 100 bps as on March 31, 2024, it would result in increase/(decrease) in fair value of interest rate swaps by approximately ₹ 207 and ₹ (211) respectively, in other comprehensive income. If interest rates were to increase by 100 bps as on March 31, 2024, additional net annual interest expense on floating rate borrowing would amount to approximately ₹ 792. Certain borrowings are also transacted at fixed interest rates.

Credit risk arises from the possibility that customers may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the credit rating and financial reliability of customers, considering the financial condition, current economic trends, forward looking macroeconomic information, analysis of historical bad debts and ageing of accounts receivable. No single customer accounted for more than 10% of the accounts receivable as at March 31, 2023 and 2024, or revenues for the years ended March 31, 2022, 2023 and 2024. There is no significant concentration of credit risk.

Trade receivables and contract assets are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Company.

Counterparty risk encompasses issuer risk on marketable securities, settlement risk on derivative and money market contracts and credit risk on cash and time deposits. Issuer risk is minimized by only buying securities which are at least AA rated in India based on Indian rating agencies. Settlement and credit risk is reduced by the policy of entering into transactions with counterparties that are usually banks or financial institutions with acceptable credit ratings. Exposure to these risks are closely monitored and maintained within predetermined parameters. There are limits on credit exposure to any financial institution. The limits are regularly assessed and determined based upon credit analysis including financial statements and capital adequacy ratio reviews.

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company’s corporate treasury department is responsible for liquidity and funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s net liquidity position through rolling forecasts based on the expected cash flows. As at March 31, 2024, cash and cash equivalents are held with major banks and financial institutions.

The table below provides details regarding the remaining contractual maturities of significant financial liabilities at the reporting date. The amounts include estimated interest payments and exclude the impact of netting agreements, if any.


	As at March 31, 2023
	Less than 1 year		1-2 years		2-4 years		Beyond 4 years		Total Cashflows		Interest included in total cash flows			Carrying value
Loans, borrowings and bank overdrafts (1)	₹	91,743	₹	924	₹	63,015	₹	-	₹	155,682	₹	(5,589	)	₹	150,093
Lease Liabilities (1)		9,620		7,130		7,233		3,087		27,070		(2,497	)		24,573
Trade payables and accrued expenses		89,054		-		-		-		89,054		-			89,054
Derivative liabilities		2,825		153		26		-		3,004		-			3,004
Other financial liabilities (2)		4,192		1,587		951		410		7,140		(350	)		6,790


	As at March 31, 2024
	Less than 1 year		1-2 years		2-4 years		Beyond 4 years		Total Cashflows		Interest included in total cash flows			Carrying value
Loans, borrowings and bank overdrafts (1)	₹	81,157	₹	938	₹	63,019	₹	-	₹	145,114	₹	(3,648	)	₹	141,466
Lease Liabilities (1)		10,377		6,670		5,504		3,690		26,241		(3,058	)		23,183
Trade payables and accrued expenses		88,566		-		-		-		88,566		-			88,566
Derivative liabilities		558		4		-		-		562		-			562
Other financial liabilities (2)		2,272		601		2,513		2,790		8,176		(919	)		7,257

(1) Includes future cash outflow towards estimated interest on loans, borrowings and bank overdrafts, and lease liabilities.

(2) Includes future cash outflow towards estimated interest on contingent consideration and liability on written put options to non-controlling interests.