Page 277 - Index

Mission-Critical Decisions, Made with Confidence.
Price risk
The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices, whether those changes are caused by factors specific to the individual financial instrument or its issuer,
or factors affecting all similar financial instruments traded in the market. The Company has adopted disciplined
practices including position sizing, diversification, valuation, loss prevention, due diligence, and exit strategies in
order to mitigate losses.
The Company is exposed to price risk arising mainly from investments in mutual funds recognized at FVTPL. The details
of such investment are given under note 9. If the prices had been higher/lower by 5% from the market prices existing
as at the reporting date, profit would increase/decrease by C 3,599 lakh and C 2,821 lakh for the year ended December
31, 2024 and for the year ended December 31, 2023 respectively.
The Company is also exposed to price risk arising mainly from investments in equity instruments recognized at FVTOCI.
The details of such investment are given under note 9. If the equity prices had been higher/lower by 5% from the market
prices existing as at the reporting date, OCI for the year ended December 31, 2024 would increase/decrease by C 1,809
lakh and C 1,248 lakh for the year ended December 31, 2023.
35.2 Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. For the Company, liquidity risk arises
from obligations on account of financial liabilities - lease liabilities, trade payables and other financial liabilities.
Liquidity risk management
The Company continues to maintain adequate amount of liquidity/treasury to meet strategic and growth objectives.
The Company has ensured a balance between earning adequate returns on liquidity/treasury assets and the need
to cover financial and business risks. The Company’s 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 on the basis of
expected cash flows.
The table below provides details regarding the contractual maturities of significant financial liabilities on
undiscounted basis:
(C lakh)
Particulars As at December 31, 2024 As at December 31, 2023
Within
1 year
1 year -
5 years
More than
5 years
Within
1 year
1 year -
5 years
More than
5 years
Lease liabilities 2,233 17,149 15,710 1,351 2,075 -
Trade payables 11,191 - - 12,373 - -
Other financial liabilities 22,888 2,536 - 16,570 2,392 -
Total 36,312 19,685 15,710 30,294 4,467 -
35.3 Business and credit risks
To mitigate the risk arising from high dependence on any one business for revenues, the Company has adopted a
strategy of diversifying in new products/services and into different business segments. To address the risk of
dependence on a few large clients and a few sectors in the business segments, the Company has also actively sought
to diversify its client base and industry segments.
Credit risk refers to risk that a counter party will default on its contractual obligations resulting in financial loss to the
Company. The Company is exposed to this risk for receivables from customers.
Annual Report 2024
275
Financial Statements