Page 202 - InterloopAnnualReport2020

NOTES TO THE UNCONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

Cash flow sensitivity analysis for variable rate instruments
If interest rates on loan, receivables, long term financing, liabilities against assets subject to finance lease
and short term borrowings from banks, at the year end date, fluctuate by 100 bps higher / lower with all other
variables, in particularly foreign exchange rates held constant, profit before taxation for the year 2020 and
2019 would have been affected as follows:
2020 2019
(Rupees ‘000) (Rupees ‘000)
Effect on profit and loss of an increase in interest rate for loan to director 182 144
Effect on profit and loss of an increase in interest rate for long term financing (32,538) (14,696)
Effect on profit and loss of an increase in interest rate for short term borrowings (103,317) (81,834)
(135,673) (96,674)

Decrease in interest rates at June 30 would have had the equal but opposite effect of these amounts.
Sensitivity analysis has been prepared on symmetric basis.

52.1.2 Currency risk / Foreign Exchange risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument, will fluctuate because
of changes in foreign exchange rates. Foreign currency risk arises mainly where receivables and payables
exist due to foreign currency transactions.

Exposure to Currency Risk
The Company’s exposure to currency risk is restricted to the amounts receivable from/payable to the foreign
entities and bank balances which are denominated in currency other than the functional currency of the
Company. The Company’s exposure to currency risk is as follows:
2020 2019
Particulars Currency F.Currency Rupees F.Currency Rupees
(Rupees ‘000 )
Foreign currency bank accounts US $ 329.39 55,419 390.39 64,024
EUR € 24.80 4,689 38.84 7,239
60,108 71,263

Trade debts US $ 39,273.23 6,607,722 47,649.90 7,814,583
Loans and advances US $ 40.52 6,777 58.48 9,560
6,674,607 7,895,406

Less: Payables - Creditors US $ (267.52) (45,145) (332.28) (54,661)
EUR € (118.09) (22,405) (152.36) (28,490)
GBP £ (14.15) (2,939) – –
CNY (0.06) (1) (0.93) (23)
CHF – – (0.45) (75)
JPY ¥ (17.70) (28) – –
(70,517) (83,249)

FE-25 Export US $ (2,873.25) (484,861) – –

On Balance sheet Exposure 6,119,228 7,812,157
Under letter of credit US $ 2,019.75 340,833 4,160.32 684,373
EUR € 517.29 98,146 4,271.95 798,812
JPY ¥ – – 21,776.31 33,285
GBP £ – – 27.00 5,628
Off Balance Sheet Exposure 438,978 1,522,098

200