GSK_ Annual_Report_2021-22

GlaxoSmithKline Pharmaceuticals Limited | Annual Report 2021-22 Notes to the Standalone Financial Statements for the year ended March 31, 2022 158 Exposure to currency risk The Company’s exposure to foreign currency risk at the end of the reporting period is as follows: ( ` in lakhs) As at March 31, 2022 As at March 31, 2021 GBP USD EUR Others GBP USD EUR Others Current Financial assets 45,84.20 - 3.27 - 4,45.84 - 4.31 - Trade payables (16,60.68) (80,47.08) (2,21.53) - (24,01.30) (97,22.69) (6,21.51) (93.11) Capital Creditors - (6.03) (2.71) - - (6.03) - - Net statement of financial position exposure 29,23.52 (80,53.11) (2,20.97) - (19,55.46) (97,28.72) (6,17.20) (93.11) Sensitivity analysis A reasonably possible strengthening / weakening of the respective foreign currencies with respect to functional currency of Company would result in increase or decrease in profit or loss and equity as shown in table below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. The following analysis has been worked out based on the exposures as of the date of statements of financial position. Effect in ` Lakhs Strengthening / Weakening % (Profit) or loss Equity Strengthening Weakening Strengthening Weakening As at March 31, 2022 GBP 5% 1,46.18 (1,46.18) - - USD 5% (4,02.66) 4,02.66 - - EUR 5% (11.05) 11.05 - - Other currencies 5% - - - - Effect in ` Lakhs Strengthening / Weakening % (Profit) or loss Equity Strengthening Weakening Strengthening Weakening As at March 31, 2021 GBP 5% (97.77) 97.77 - - USD 5% (4,86.44) 4,86.44 - - EUR 5% (30.86) 30.86 - - Other currencies 5% (4.66) 4.66 - - (Note: The impact is indicated on the profit/loss before tax basis) Note 51 : Capital Management (a) Risk Management The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders. The Company has adequate cash and bank balances and no interest bearing liabilities. The Company monitors its capital by a careful scrutiny of the cash and bank balances, and a regular assessment of any debt requirements. In the absence of any interest bearing debt, the maintenance of debt equity ratio etc. may not be of any relevance to the Company. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2022 and March 31, 2021.