Page 205 - InterloopAnnualReport2020

NOTES TO THE UNCONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

The credit quality of Company’s bank balances can be assessed by reference to external credit ratings or to
historical information about counterparty default rate:
Name of Bank Date Long term Short term Outlook Agency

Allied Bank Limited 30–Jun–20 AAA A1+ Stable PACRA
Askari Bank Limited 26–Jun–20 AA+ A1+ Stable PACRA
Bank Alfalah Limited 30–Jun–20 AA+ A1+ Stable JCR–VIS
Dubai Islamic Bank Pakistan Limited 30–Jun–20 AA A1+ Stable JCR–VIS
Faysal Bank Limited 29–Jun–20 AA A–1+ Stable JCR–VIS
Habib Bank Limited 30–Jun–20 AAA A–1+ Stable JCR–VIS
Habib Metropolitan Bank Limited 26–Jun–20 AA+ A1+ Stable PACRA
MCB Bank Limited 26–Jun–20 AAA A1+ Stable PACRA
MCB Islamic Bank Limited 25–Jun–20 A A1 Stable PACRA
Meezan Bank Limited 30–Jun–20 AA+ A–1+ Stable JCR–VIS
National Bank of Pakistan 29–Jun–20 AAA A–1+ Stable JCR–VIS
Standard Chartered Bank
Pakistan Limited 25–Jun–20 AAA A1+ Stable PACRA
The Bank of Punjab 30–Jun–20 AA A1+ Stable PACRA
United Bank Limited 29–Jun–20 AAA A–1+ Stable JCR–VIS

Due to Company’s long standing relationships with these counterparties and after giving due consideration
to their strong financial standing, management does not expect non–performance by these counter parties
on their obligations to the Company. Accordingly, the risk is minimal.

52.3 Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial
liabilities.

The company’s approach to manage liquidity risk is to maintain sufficient level of liquidity by holding highly
liquid assets and the availability of funding through an adequate amount of committed credit facilities. At
June 30, 2020 the Company has Rs. 12,870 million (2019: Rs 13,224 million) unutilized borrowing limits
available from financial institutions and Rs. 150.787 million (2019: Rs. 1,538.56 million) cash and bank
balances. The management believes that the company is not exposed to any liquidity risk.

The following are the contractual maturity analysis of financial liabilities as at June 30, 2020 and June 30,
2019:

2020
Carrying Contractual Within 6 More than 6 More than 1
amount cash flows months months and year and
up to 1 year up to 5 year
(Rupees ‘000)

Financial Liabilities :
Long term financing 7,222,513 6,621,454 245,875 515,413 5,860,166
Lease liabilities 119,694 156,833 15,613 15,201 126,019
Trade and other payables 2,799,954 2,799,954 2,799,954 – –
Unclaimed dividend 2,952 2,952 2,952 – –
Accrued mark up 191,136 191,136 191,136 – –
Short term borrowings 14,354,861 14,448,227 14,448,227 – –
24,691,110 24,220,556 17,703,757 530,614 5,986,185

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