GSK_ Annual_Report_2021-22

157 Notes to the Standalone Financial Statements for the year ended March 31, 2022 The Company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company has no outstanding bank borrowings. The Company believes that the working capital is sufficient to meet its current requirements. Any short-term surplus cash generated, over and above the amount required for working capital management and other operational requirements, are retained as Cash and Investment in short term deposits with banks and mutual funds. The said investments are made in instruments with appropriate maturities and sufficient liquidity. As of March 31, 2022, the Company had working capital of ` 1996,35.70 lakhs, including cash and cash equivalents of ` 280,79.12 lakhs, investments in term deposits (i.e., bank certificates of deposit having original maturities of more than 3 months but less than 12 months) of ` 2179,10.00 lakhs and Current investments of ` 365,59.23 lakhs. As of March 31, 2021, the Company had working capital of ` 851,90.42 lakhs, including cash and cash equivalents of ` 404,90.20 lakhs and investments in term deposits (i.e., bank certificates of deposit having original maturities of more than 3 months but less than 12 months) of ` 732,00.00 lakhs. Exposure to liquidity risk The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements. ( ` in lakhs) As at March 31, 2022 Carrying amount Contractual cash flows Total 1 year or less 1-2 years 2-5 years More than 5 years Non-derivative financial liabilities Borrowings - - - - - - Trade Payables and other payables 661,85.47 661,85.47 650,85.79 10,01.52 98.16 - Unclaimed dividends 18,28.05 18,28.05 18,28.05 - - - Security deposits received 2,04.46 2,04.46 - - 2,04.46 - Refer note 48 for remaining contractual maturities of financial lease liabilities at the reporting date. ( ` in lakhs) As at March 31, 2021 Carrying amount Contractual cash flows Total 1 year or less 1-2 years 2-5 years More than 5 years Non-derivative financial liabilities Borrowings 2.40 2.40 2.40 - - - Trade Payables and other payables 600,00.32 600,00.32 594,76.55 1,88.41 3,35.36 - Unclaimed dividends 19,86.36 19,86.36 19,86.36 - - - Security deposits received 2,04.46 2,04.46 - - 2,04.46 - Market risk Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates and foreign currency exchange rates) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk- sensitive financial instruments, all foreign currency receivables and payables. The Company is exposed to market risk primarily related to foreign exchange rate risk and risk on its investments. However since the investments are in overnight and liquid funds the risk is negligible. Currency risk The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and loss, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the entity. The Company is exposed to currency risk on account of its receivables and payables in foreign currency. The functional currency of the Company is Indian Rupee. The Company has exposure to GBP, USD, EUR and other currencies. The Company has not hedged this foreign currency exposure and strives to achieve asset liability offset of foreign currency exposure.