GSK_ Annual_Report_2021-22

NOTES TO THE FINANCIAL STATEMENTS for the year ended March 31, 2022 193 considered to be the same as their fair values due to their short term nature. C. Financial risk management The Company has exposure to the following risks arising from financial instruments: • Liquidity risk • Market risk Risk management framework The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The committee reports regularly to the board of directors on its activities. The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The audit committee of the Holding company oversees how management monitors compliance with the company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee. Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation. 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. The said investments are made in instruments with appropriate maturities and sufficient liquidity. As of March 31, 2022, the Company had working capital of ` 13,24.99 Lakhs, including cash and cash equivalents of ` 5,39.59 Lakhs, investments in term deposits (i.e., bank certificates of deposit having original maturities of more than 3 months and less twelve months) of ` nil Lakhs. As of March 31, 2021, the Company had working capital of ` -3,84.14 Lakhs, including cash and cash equivalents of ` 28.72 Lakhs, investments in term deposits (i.e., bank certificates of deposit having original maturities of more than 3 months and less twelve months) of ` nil 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 Trade Payables and other payables 28,09.84 28,09.84 28,09.84 - - - Security deposits 0.63 0.63 - - - - Other non-current liabilities 0.72 0.72 - - - - 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 Trade Payables and other payables 22,07.94 22,07.94 22,07.94 - - - Security deposits 0.63 0.63 - - 0.63 - Other non-current liabilities 0.72 0.72 - - 0.72 -