246 / 327
246
• Annual Report 2018-19
Shaping the future of software driven business
Notes forming part of consolidated financial statements (Contd.)
The following table gives details in respect of outstanding foreign currency forward contracts:
As at March 31, 2019
As at March 31, 2018
Foreign
currency
(million)
Average
rate
`
(million)
Foreign
currency
(million)
Average
rate
`
(million)
Derivatives designated as cash
flow hedges
Forward contracts
USD
112.00
73.00
8,175.45
103.00
66.95
6,895.53
The foreign exchange forward contracts mature within twelve months. The table below analyses the derivative financial
instruments into relevant maturity groupings based on the remaining period as of the balance sheet date:
As at March 31, 2019
As at March 31, 2018
Foreign
currency
(million)
Average
rate
`
(million)
Foreign
currency
(million)
Average
rate
`
(million)
Not later than 3 months
30.00
69.95 2,098.38
25.00
66.79
1,669.69
Later than 3 months and not later
than 6 months
30.00
74.00
2,220.06
24.00
66.72
1,601.25
Later than 6 months and not later
than 9 months
30.00
74.84
2,245.19
25.00
66.93
1,673.26
Later than 9 months and not later
than 12 months
22.00
73.26
1,611.82
29.00
67.29
1,951.33
Total
112.00
8,175.45
103.00
6,895.53
Credit risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure
to the credit risk at the reporting date is primarily from trade receivables. As at March 31, 2019, trade receivables amounted to
`
4,923.01 million (March 31, 2018:
`
4,847.40 million).
Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in the
United States. Credit risk is managed by the Group by Credit Task Force through credit approvals, establishing credit limits
and continuously monitoring the recovery status of customers to which the Group grants credit terms in the normal course of
business.
On account of adoption of Ind AS 109, the Group uses expected credit loss model to assess the impairment loss. The Group uses a
provisioning policy approved by the Board of Directors to compute the expected credit loss allowance for trade receivables. The
policy takes into account available external and internal credit risk factors and the Group’s historical experience for customers.
Credit risk is perceived mainly in case of receivables overdue for more than 90 days. The following table gives details of risk
concentration in respect of percentage of receivables overdue for more than 90 days:
As at
March 31, 2019
March 31, 2018
Receivables overdue for more than 90 days (
`
million)*
284.19
271.99
Total receivables (gross) (
`
million)
5,057.55
4,994.37
Overdue for more than 90 days as a % of total receivables
5.6%
5.4%
* Out of this amount,
`
134.54 million (March 31, 2018:
`
146.97 million) have been provided for.