GSK_ Annual_Report_2021-22

GlaxoSmithKline Pharmaceuticals Limited | Annual Report 2021-22 NOTES TO THE FINANCIAL STATEMENTS for the year ended March 31, 2022 194 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. Currency risk The fluctuation in foreign currency exchange rates may have potential impact on the profit and loss account, 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 does not have any foreign currency exposure as at the balance sheet date. 27 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 has interest bearing liabilities. The company monitors its capital by a careful scrutiny of the cash and bank balances, a regular assessment of any debt requirements and the maintenance of debt equity ratio and debt service coverage ratio etc.( Refer Note 31) 28 SEGMENT REPORTING An operating segment is one whose operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. The Company has identified the Chief Operating Decision Maker as its Director. The Chief Operating Decision Maker reviews performance of pharmaceutical business on an overall basis. As the Company has a single reportable segment, the segment wise disclosure requirements of Ind AS 108 on Operating Segment is not applicable. In compliance to the said standard, Entity-Wide disclosures are as under : ( ` in lakhs) Year ended March 31, 2022 Year ended March 31, 2021 Revenues from external customers attributed to the country of domicile and attributed to all foreign countries from which the company derives revenues Revenue from the Country of Domicile- India 6,82.01 3,23.43 Revenue from foreign countries 74,00.45 9,32.79 Total 80,82.46 12,56.22 ( ` in lakhs) Year ended March 31, 2022 Year ended March 31, 2021 Details of non current asset Non Current asset from the Country of Domicile- India 7,72.34 5,77.90 Non Current asset from foreign countries - - Total 7,72.34 5,77.90 29 RELATED PARTY DISCLOSURES 1 Related parties with whom there were transactions during the year are listed below: Holding Company: - The company is a wholly owned subsidiary of GlaxoSmithKline Pharmaceuticals Limited. Other related parties in the GlaxoSmithKline (GSK) Group where common control exists - GSK Export Limited - GSK Asia Private Limited - Stiefel India Private Limited