Page 232 - Tata_Chemicals_yearly-reports-2019-20

There is no substantial concentration of credit risk as the revenue and trade receivables from any of the single customer do not
exceed 10% of Company revenue and trade receivables, except as disclosed in note 39.1.
For certain other receivables, where recoveries are expected beyond twelve months of the Balance Sheet date, the time value of
money is appropriately considered in determining the carrying amount of such receivables.
Financial instruments and cash deposits
Credit risk from balances/investments with banks and financial institutions is managed in accordance with the Company’s treasury
risk management policy. Investments of surplus funds are made only with approved counterparties and within limits assigned to each
counterparty. The limits are assigned based on corpus of investable surplus and corpus of the investment avenue. The limits are set to
minimize the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.
Financial guarantees
Financial guarantees disclosed in note 45.1(b) have been provided as corporate guarantees to financial institutions and banks that
have extended credit facilities to the Company's subsidiaries. In this regard, the Company does not foresee any significant credit risk
exposure.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The objective of
liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as and when required.
The Treasury Risk Management Policy includes an appropriate liquidity risk management framework for the management of the
short-term, medium-term and long term funding and cash management requirements. The Company manages the liquidity risk
by maintaining adequate cash reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and
actual cash flows, and by matching the maturity profiles of financial assets and liabilities. The Company invests its surplus funds in
bank fixed deposit and liquid schemes of mutual funds, which carry no/negligible mark to market risks.
The below table analyses the Company’s non-derivative financial liabilities as at the reporting date, into relevant maturity groupings
based on the remaining period (as at that date) to the contractual maturity date. The amounts disclosed in the below table are the
contractual undiscounted cash flows.
` in crore
Carrying Up-to 1-5 years Above Total
amount 1 year 5 years
As at March 31, 2020
Lease liability 14.76 5.49 11.24 0.56 17.29
Trade and other payables 757.85 757.68 0.17 - 757.85
Total 772.61 763.17 11.41 0.56 775.14
As at March 31, 2019
Borrowings and future interest thereon 689.08 689.08 - - 689.08
Lease liability 18.84 5.38 13.46 - 18.84
Trade and other payables 807.69 807.45 0.24 - 807.69
Total 1,515.61 1,501.91 13.70 - 1,515.61
The below table analyses the Company’s derivative financial liabilities into relevant maturity groupings based on the remaining
period (as at the reporting date) to the contractual maturity date.
` in crore
As at As at
March 31, 2020 March 31, 2019
Current portion - 1.67
Non-current portion - -
Net - 1.67

All the derivative financial liabilities are included in the above analysis, as their contractual maturity dates are essential for the
understanding of the timing of the under-lying cash flows.

230 I INTEGRATED ANNuAL REPORT 2019-20