Arohan Financial Services Limited | Annual Report 2022-23

171 | Annual Report | 2022-2023 Note 41: Financial risk management (Contd.) (C) Market risk a) Interest rate risk (i) Liabilities The Company’s policy is to minimise interest rate cash flow risk exposures on long-term financing. As at March 31, 2023, the Company is exposed to changes in market interest rates through debt securities, other borrowings and subordinated liabilities at variable interest rates. Interest rate risk exposure Below is the overall exposure (*) of the Company to interest rate risk: Particulars As at 31 March 2023 As at 31 March 2022 Variable rate liabilities Debt securities - 6,250.00 Borrowings (other than debt securities) 2,49,645.59 1,24,395.11 Subordinated liabilities 2,500.00 10,000.35 Fixed rate liabilities Debt securities 29,120.00 21,310.00 Borrowings (other than debt securities) 59,295.40 1,06,732.93 Subordinated liabilities 40,000.00 33,500.00 Liability against securitisation 72,139.97 1,09,822.62 Total 4,52,700.96 4,12,011.01 Particulars Year ended 31 March 2023 Year ended 31 March 2022 Interest sensitivity* Interest rates – increase by 0.50% 2,016.23 1,878.41 Interest rates – decrease by 0.50% (2,016.23) (1,878.41) (*) Figures are presented at principal carrying value. Sensitivity The sensitivity of the statement of profit and loss is the effect of the changes in market interest rates on debt securities, other borrowings and subordinated liabilities. Below is the sensitivity of profit and loss in interest rates. * Holding all other variables constant Arohan Financial Services Limited Summary of significant accounting policies and other explanatory information for the year ended 31 March 2023 (Contd.) (All amounts in ` lakhs unless otherwise stated)