GSK_Annual_Report_2021

Notes to the Standalone Financial Statements for the year ended March 31, 2021 (contd.) Annual Report 2020-21 135 Level 3 : Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable (b) Fair value of financial assets and liabilities measured at amortised cost* ( ` in lakhs) As at March 31, 2021 As at March 31, 2020 Financial assets Security Deposits Carrying value 8,06.08 8,21.56 Fair value 8,06.08 8,21.56 Margin money/ Deposit against bank guarantee Carrying value 4,01.47 4,13.53 Fair value 4,01.47 4,13.53 *Excludes investments in subsidiary Financial liabilities Borrowings Carrying value 2.40 17.70 Fair value 2.40 17.70 Other financial lease liabilities Carrying value 34,60.26 41,66.30 Fair value 34,60.26 41,66.30 Security deposits received Carrying value 2,04.46 2,05.97 Fair value 2,04.46 2,05.97 The impact of fair valuation of the above Financial assets and liabilities is considered to be insignificant and hence carrying value and the fair value is considered to be same. The carrying amounts of Trade receivables, Cash and cash equivalents, Bank balances other than Cash and cash equivalents, Interest accrued on deposits with bank, Receivable from group companies, Advances recoverable, Payable to employees, Unclaimed Dividends, Trade payables, Creditors for capital goods, Rationalisation relating to a manufacturing site and Other Payables are 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: ▪ Credit risk ; ▪ Liquidity risk ; and ▪ 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.