GSK_Annual_Report_2021

Notes to the Standalone Financial Statements for the year ended March 31, 2021 (contd.) Annual Report 2020-21 139 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 - - Effect in ` Lakhs Strengthening / Weakening % Profit or (loss) Equity Strengthening Weakening Strengthening Weakening As at March 31, 2020 GBP 5% (63.91) 63.91 - - USD 5% (2,42.25) 2,42.25 - - EUR 5% (58.27) 58.27 - - Other currencies 5% (4.09) 4.09 - - (Note: The impact is indicated on the profit/loss before tax basis) Note 49 : 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 has interest free deferred sales tax incentive availed under the 1993 Sales Tax Deferment Schemes. 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, 2021 and March 31, 2020. (b) Dividend distribution and proposed dividend ( ` in lakhs) Year ended March 31, 2021 Year ended March 31, 2020 (i) Equity shares Final dividend for the year ended March 31, 2020 of ` 40 (March 31, 2019: ` 20) per fully paid share 677,62.41 338,81.21 (ii) Dividend Distribution Tax on the above - 69,64.38 (iii) Dividends not recognised at the end of the reporting period In addition to the above dividends, since year end the directors have recommended the payment of a final dividend of ` 30 per fully paid equity share (March 31, 2020: ` 40 per fully paid equity share (including special dividend of ` 20 per equity share)). The proposed dividend for the year ended March 31, 2021 is subject to the approval of shareholders in the ensuing annual general meeting. 508,24.63 677,62.41 (iv) Dividend Distribution Tax on the above (Refer note below) - - Note: With reference to the amendment in the Finance Act 2020, Dividend Distribution Tax (DDT) has been abolished from AY 2021-22. i.e. no DDT shall be payable by the company on any dividend distributed on or after April 1, 2020 and hence there is no DDT on proposed dividend.