PGHH_AR_2020

Notes to Financial Statements for the year ended June 30, 2020 Annual Report 2019-20 118 Procter & Gamble Hygiene and Health Care Limited 30 Financial instruments 30.1 Capital management The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return to stakeholders through the optimisation of the equity balance. Equity share capital and other equity are considered for the purpose of group’s capital management. The Company is not subject to any externally imposed capital requirements. The Company’s risk management committee manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return on capital to shareholders or issue new shares. 30.2 Categories of financial instruments As at June 30, 2020 As at June 30, 2019 ` in lakhs ` in lakhs Financial assets Measured at amortised cost (a) Trade receivables 16 634 18 137 (b) Cash and cash equivalents 88 404 52 590 (c) Bank balances other than (b) above 1 846 1 455 (d) Loans 4 779 13 829 (e) Other financial assets 2 170 2 458 Financial liabilities Measured at amortised cost (a) Trade payables 53 133 54 849 (b) Other financial liabilities 2 500 4 645 30.3 Financial risk management objectives The Company’s overall policy with respect to managing risks associated with financial instruments is to minimise potential adverse effects of financial performance of the Company. The policies for managing specific risks are summarised below. 30.4 Foreign currency risk management The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters. The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities a t the end of the reporting period are as follows: Liabilities as at Assets as at As at June 30, 2020 As at June 30, 2019 As at June 30, 2020 As at June 30, 2019 ` in lakhs ` in lakhs ` in lakhs ` in lakhs USD 8 787 15 948 788 456 EUR 1 278 3 159 ---- 8 CNY 3 5 ---- 7 BDT ---- ---- 109 ---- SGD 8 16 ---- ---- GBP ---- ¥ ---- ¥ ---- ---- CHF 2 ---- ---- ---- ¥ denotes amount less than ` 50 000