Page 145 - Index

02-40 CORPORATE OVERVIEW 41-59 STATUTORY REPORTS 60-147 FINANCIAL STATEMENTS Consolidated
Notes
to the Consolidated Financial Statements for the year ended 31 March 2022
optimum levels of liquidity to meet its cash and collateral obligations. The Group requires funds for short term operational needs as well as for servicing of financial obligation under term loan. The Group closely monitors its liquidity position and deploys a robust cash management system. It aims to minimise these risks by generating sufficient cash flows from its current operations.
MATURITIES OF FINANCIAL LIABILITIES
The table below analyses the Trust’s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities.
The amount disclosed in the table is the contractual undiscounted cash flows.
The Group ‘s exposure to interest rate risk due to variable interest rate borrowings is as follows:
Particulars
As at 31 March 2022 Term Loan from Bank
Amount
5755.85
₹ in million
Impact on profit / loss before tax for the year due to Increase or decrease
in interest rate by
50 basis points
9.62
(iii) Equity price risk
The Group does not have any investments in equity shares which may be subject to equity price risk.
45. CAPITAL MANAGEMENT
Contractual maturities of financial liabilities
As at 31 March 2022
Borrowings (including interest outflows)
Trade Payables
Other financial liabilities
Total
(C)
Within a year
359.12
2.76
214.59
Between 1-5 years
1,475.51
-
0.05
₹ in million
Beyond 5 years
Group’s objectives when managing capital are to
• maximize the unit holder value;
• safeguard its ability to continue as a going concern;
• maintain an optimal capital structure to reduce the cost of capital.
For the purpose of Group’s capital management, unit capital includes issued unit capital and all other reserves attributable to the unit holders of the Trust. Group manages its capital structure and makes adjustments in light of changes in economic conditions. To maintain or adjust the capital structure, Group may adjust the distribution to unitholders (subject to the provisions of InvIT regulations which require distribution of at least 90% of the net distributable cash flows of the Trust to unit holders), return capital to unitholders or issue new units. The Group monitors capital using a gearing ratio, which is the ratio of long term debt to total Equity plus long term debt. The Group’s policy is to keep the gearing ratio optimum. The Group includes within long term debt, interest bearing loans and borrowings and current maturities of long term debt.
The gearing ratio of the Group was as follows: -
Total
8,492.87 10,327.50
- 2.76
214.64
576.47 1,475.56 8,492.87 10,544.90
MARKET RISK
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk:
(i) Currency risk
(ii) Interest rate risk
(iii) Equity price risk
(i) Currency risk
As on Reporting date the Group does not have any exposure to currency risk in respect of foreign currency denominated loans and borrowings and procurement of goods and services.
(ii) Interest rate risk
Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term debt obligations with floating interest rates.
Particulars
(a) Long term debt (₹ in million)
(b) Total Equity (₹ in million) *
(c) Total Equity plus long term debt (₹ in million) (a+b) (d) Gearing Ratio (a/c)
* Total Equity includes unit capital and other equity.
As at 31 March 2022
5,755.85
89,936.26
95,692.11
6.02%
POWERGRID Infrastructure Investment Trust 143