{"url_path":"/sec/okyo/10-k/2026/item-11","section_key":"item-11","section_title":"Item 11 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-07-20","source_url":"https://www.sec.gov/Archives/edgar/data/1849296/0001493152-26-033847-index.html","accession_number":"0001493152-26-033847","cik":"0001849296","ticker":"OKYO","issuer_name":"OKYO Pharma Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1849296/0001493152-26-033847-index.html","primary_entity_key":"0001849296","primary_entity_name":"OKYO Pharma Ltd"},"word_count":435,"has_tables":true,"body_markdown":"**ITEM\n11: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**\n\n \n\nWe\nare exposed to market risks in the ordinary course of our business, which are principally limited to interest rate fluctuations and foreign\ncurrency exchange rate fluctuations. We maintain significant amounts of cash and cash equivalents that are in excess of federally insured\nlimits in various currencies, placed with one or more financial institutions for varying periods according to expected liquidity requirements.\n\n \n\n*Interest\nRate Risk*\n\n \n\nOur\nexposure to interest rate sensitivity is impacted by changes in the underlying U.S. and U.K. bank interest rates. Our surplus cash and\ncash equivalents have been invested in interest-bearing savings and money market accounts from time to time. We have not entered into\ninvestments for trading or speculative purposes. Due to the conservative nature of our investment portfolio, which is predicated on capital\npreservation of investments with short-term maturities, we do not believe an immediate one percentage point change in interest rates\nwould have a material effect on the fair market value of our portfolio, and therefore we do not expect our operating results or cash\nflows to be significantly affected by changes in market interest rates.\n\n \n\n*Foreign\nCurrency Exchange Risk*\n\n \n\nWe\nmaintain our consolidated financial statements in the functional currency Pounds Sterling. Monetary assets and liabilities denominated\nin currencies other than the functional currency are translated into the functional currency at rates of exchange prevailing at the balance\nsheet dates. Non-monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the\nexchange rates prevailing at the date of the transaction. Exchange gains or losses arising from foreign currency transactions are included\nin the determination of net income (loss) for the respective periods.\n\n \n\n80\n\n \n\n \n\nFor\nfinancial reporting purposes, our consolidated financial statements are prepared using the functional currency, and translated into the\nU.S. dollar. Assets and liabilities are translated at the exchange rates at the balance sheet dates and revenue and expenses are translated\nat the average exchange rates and shareholders’ equity is translated based on historical exchange rates. Translation adjustments\nare not included in determining net income (loss) but are included in foreign exchange adjustment to accumulate other comprehensive loss,\na component of shareholders’ equity.\n\n \n\nWe\ndo not currently engage in currency hedging activities in order to reduce our currency exposure, but we may begin to do so in the future.\nInstruments that may be used to hedge future risks may include foreign currency forward and swap contracts. These instruments may be\nused to selectively manage risks, but there can be no assurance that we will be fully protected against material foreign currency fluctuations."}