Page 105 - Learn Africa 2021 Annual Report

Learn Africa Plc
Notes to the Financial Statements (cont’d)
For the year ended 31 March 2021

Changes in US Dollars rate Effect on profit before tax
₦’000 ₦’000
31 March 2021 +5% 9,967
-5% (9,967)

31 March 2020 +5% 32,357
-5% (32,357)

Changes in GBP rate Effect on profit before tax
₦’000 ₦’000
31 March 2021 +5% 99
-5% (99)

31 March 2020 +5% 87
-5% (87)

3 Liquidity risk
Liquidity risk arises through excess obligations over available financial assets due at any
point in time. Learn Africa’s objective in managing liquidity risk is to maintain sufficient
readily available reserves in order to meet its liquidity requirements at any point in time.
Learn Africa achieves this through funds generated by operations and externally through
Trade and other payables that provide flexibility in the timing and amounts of short-term
financing. Learn Africa has a policy of investing its cash balances in short-term deposits
in highly-rated Nigerian financial institutions. The analysis of the financial assets and
liabilities have been disclosed in Note 21.

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