Translation of Income Statement December 31, 2019 December 31, 2020 Euro US$ US$ Sales 30,000 Cost of goods sold 29,750 30.000 30,000 Operating profits 250 30,000 30,000 Translation of Balance Sheet December 31, 2019 December 31, 2020 Assets Euro US$ US$ Us$ Cash 40 Inventory 300 Plant and equipment (net) 160 30,000 30,000 Total 500 30.000 30,000 Liabilities and stockholders' equity Debt 240 Paid-in capital 200 Retained earnings 60 30,000 30,000 Total 500 30,000 30,000

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Exchange Rate Risk

It is the possibility that the value of a currency will fluctuate in the future. In the wake of globalization, business establishments have increasingly ventured into international markets. The volume of international trade has prospered excellently in the near past and is expected to be more affluent in the future. The use of exchange-traded derivative financial instruments has been multi-folded to provide for the requirements of various MNCs and offshore potential investors. Most banks and financial institutions have helped integrate the global economies. Our Government has introduced some bold and extreme measures to fulfil the purpose behind the fiscal, industrial, and monetary policies. The enactment of GST is a huge step towards streamlining the taxation system of the country. Owing to Covid-19, this aspect of corporate risk management has become critical.