GSK_ Annual_Report_2021-22

GlaxoSmithKline Pharmaceuticals Limited | Annual Report 2021-22 Notes to the Consolidated Financial Statements for the year ended March 31, 2022 248 ( ` 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 618,14.46 618,14.46 612,90.68 1,88.41 3,35.37 - Unclaimed dividends 19,86.36 19,86.36 19,86.36 - - - Security deposits received 2,05.81 2,05.81 - - 2,05.81 - 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 Group 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 Group is exposed to currency risk on account of its receivables and payables in foreign currency. The functional currency of the Group is Indian Rupee. The Group has exposure to GBP, USD, EUR and other currencies. The Group has not hedged this foreign currency exposure and strives to achieve asset liability offset of foreign currency exposure. Exposure to currency risk The Group’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 58,80.52 - 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 42,19.84 (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 Group 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.