PRIVI SPECIALITY CHEMICALS LIMITED Annual Report 2020-21

185 Annual Report 2020-21 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS d) Sensitivity analysis A reasonably possible strengthening (weakening) of the foreign currencies against INR at March 31 would have affected the measurement of financial instruments denominated in US dollars and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. Effect in INR Profit before tax Equity, net of tax Strengthening Weakening Strengthening Weakening March 31, 2021 USD (3% movement) 134.32 (134.32) 100.51 (100.51) EUR (3% movement) (77.77) 77.77 (58.20) 58.20 56.55 (56.55) 42.31 (42.31) Effect in INR Profit before tax Equity, net of tax Strengthening Weakening Strengthening Weakening March 31, 2020 (Restated) USD (3% movement) (102.83) 102.83 (76.95) 76.95 EUR (3% movement) (93.27) 93.27 (69.79) 69.79 e) Interest risk The group is exposed primarily to fluctuation in USD LIBOR rates. Interest rate risk on financial debt is managed through interest rate swaps. The interest rate profile of the Group`s interest-bearing financial instruments is as follows : Particulars March 31, 2021 March 31, 2020 (Restated) Fixed-rate instruments * 53,054.97 50,198.77 Variable-rate instruments – 41.50 Total borrowings 53,054.97 50,240.27 * Effect of interest rate swaps is disclosed in Note 14 a. Financial assets classified at amortized cost have fixed interest rate. Hence, the group is not subject to interest rate risk on such financial assets. Cash flow sensitivity analysis for variable-rate instruments A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant. Particulars Profit or loss Equity, net of tax 100 bp increase 100 bp decrease 100 bp increase 100 bp decrease March 31, 2021 Variable-rate instruments – – – – March 31, 2020 (Restated) Variable-rate instruments 0.42 (0.42) 0.31 (0.31) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended March 31, 2021 (Currency: Indian Rupees in lakhs) 34 Financial risk management (continued)