To enhance the risk management and mitigation of various identified risks, during the current financial year (FY23) the group has undertaken detailed exercise of preparing and implementing the hedge policy for different businesses with the help of external expert The group identified different financial risk in the nature of interest rate risk, foreign exchange risk, asset liability maturity mismatches, commodity price risk, credit risk and various other risks for each business. After understanding of different risks in different value chains with plethora of discussion, the group implemented various tools and instruments to mitigate these risks. It is important to note that this exercise ensured that the group is not exposed to any adverse movement in macro-economic parameters. This was very critical considering the fact that group is largest infrastructure group in India and very much vulnerable to any positive or negative movement in domestic and well as foreign macro-economic environment. The group with its competent central treasury team uses different hedging instruments like forwards, options, POS, etc. for mitigating the risk. The risk management policy also ensure that wherever the risk is naturally hedged with business inflows and outflow just like Port business, such matching is properly documented and the same is considered while preparing and deciding for hedging strategy of these businesses. Further, group also continuously looks for opportunities to ensure that its operational excellence and prudent capital allocation is not affected by any negative event in our external economic environment. 26