PRIVI SPECIALITY CHEMICALS LIMITED Annual Report 2020-21

127 Annual Report 2020-21 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS Exposure to currency risk The currency profile of financial assets and financial liabilities as at March 31, 2021 and March 31, 2020 are as below: Particulars March 31, 2021 March 31, 2021 March 31, 2020 (Restated) March 31, 2020 (Restated) USD EURO USD EURO Financial assets Cash and cash equivalents 3.60 1.93 10.64 0.42 Trade Receivables 198.72 6.90 184.82 10.35 202.32 8.83 195.46 10.77 Financial liabilities Borrowings – 37.50 – 45.00 Buyers Credit – – 17.06 – PCFC 41.39 – 76.43 – Working capital demand Loan – – – – Trade payables and other financial liabilities 98.26 0.37 128.65 0.54 Other Current financial liabilities - Derivative Instruments Interest rate swap 7.30 1.07 19.95 1.34 146.95 38.94 242.09 46.88 Net exposure 55.37 (30.11) (46.63) (36.11) * The exposure disclosed here is net of currency swap taken by the Company Currency exposure for borrowings is exclusive of Currency swap on IDFC Rupee loan of Rs. 4,000 lakhs and ICICI bank Rupee loan of Rs. 4,000 lakhs are taken @ 64.42 per USD and @ 68.13 per USD respectively and other currency swap on HDFC Bank Rupee loan of Rs. 5,600 lakhs and Rs. 7,400 lakhs are taken @ 76.78 per USD and @ 75.83 per USD respectively which are classified as Indian currency loan. The Company’s corporate treasury function provides services to the business, co-ordinates access to domestic financial markets, monitors and manages the financial risk relating to the operation of the Company through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The use of financial derivatives is governed by the Company’s policies approved by the board of directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk and liquidity risk. The Corporate treasury function reports quarterly to the Company’s risk management committee, an independent body that monitors risks and policies implemented to mitigate risk exposures. NOTES TO THE STANDALONE FINANCIAL STATEMENTS for the year ended March 31, 2021 (Currency: Indian Rupees in lakhs) 33 Financial risk management (continued) c) Currency Risk (continued)