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02-40 CORPORATE OVERVIEW 41-59 STATUTORY REPORTS 60-147 FINANCIAL STATEMENTS Standalone
Notes
to the Standalone Financial Statements for the year ended 31 March 2022
March 2022, the credit risk is considered low since substantial transactions of the Trust are with its subsidiaries.
(B) Liquidity Risk
Liquidity risk management implies maintaining sufficient cash and marketable securities for meeting its present and future obligations associated with financial liabilities that are required to be settled by delivering cash or another financial asset. The Trust’s objective is to, at all times, maintain optimum levels of liquidity to meet its cash and collateral obligations. The Trust requires funds for short term operational needs as well as for servicing of financial obligation under term loan. The Trust 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.
(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 Trust’s exposure to the risk of changes in market interest rates relates primarily to the Trust’s long-term debt obligations with floating interest rates.
The Trust’s exposure to interest rate risk due to variable interest rate borrowings is as follows:
Particulars
Amount
₹ 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
As at 31 March 2022 5755.85 Term Loan from Bank
(iii) Equity price risk
Contractual maturities of Within a
Between 1-5 years
1,475.51
0.05
1,475.56
Beyond 5 years
8,492.87
-
8,492.87
Total
10,327.50
8.20
10,335.70
financial liabilities
As at 31 March 2022
Borrowings (including interest outflows)
Other financial liabilities
year
359.12
8.15
31.
CAPITAL MANAGEMENT
Trust’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.
₹ in million
The Trust has investments in equity shares of subsidiaries. Future value of the investment in subsidiaries are subject to market price risk arising due to fluctuation in the market conditions. Reports on the fair value of investment in subsidiaries are submitted to the management on periodic basis.
At the reporting date, the exposure to equity investments in subsidiary at carrying value was ₹ 42,541.01 million. Sensitivity analyses of significant unobservable inputs used in the fair value measurement are disclosed in Note 24.
Total 367.27
(C) 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 theTrust does not have any exposure to currency risk in respect of foreign currency denominated loans and borrowings and procurement of goods and services.
For the purpose of trust’s capital management, unit capital includes issued unit capital and all other reserves attributable to the unit holders of the Trust. Trust manages its capital structure and makes adjustments in light of changes in economic conditions. To maintain or adjust the capital structure, trust 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 Trust monitors capital using a gearing ratio, which is the ratio of long term debt to total Equity plus long term debt. The Trust’s policy
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