Page 276 - InterloopAnnualReport2020
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NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended June 30, 2020
2020 2019
(Rupees ‘000) (Rupees ‘000)
Long term loans 119,698 73,262
Long term investment 500,000 –
Long term deposits 43,987 33,120
Trade debts 7,274,222 8,274,062
Loans and advances 59,355 66,343
Other receivables 181,143 83,980
Accrued income 2,239 10,441
Short term investments 125,044 1,207,251
Bank balances 145,070 1,515,070
8,450,758 11,263,529
Loans and advances consist of loans to employees & director and Metis International (Pvt) Ltd. Loans to
employees and director are secured against their retirement benefits and loan to Metis International along
with its accrued interest is also secured through an irrevocable lien/charge on total assets of the Metis
International (Pvt) Limited. Therefore, Company is not exposed to any significant credit risk on these loans.
Long term deposits have been mainly placed with suppliers of electricity, gas and telecommunication
services. Considering the financial position and credit quality of the institutions, Company’s exposure to
credit risk is not significant.
Trade debts amounting to Rs. 4,439 million (2019: 4,277 million) out of total debts are secured against letters
of credit and insured contract. Furthermore, credit quality of customers is assessed taking into consideration
their financial position and previous dealings and on that basis, individual credit limits are set. Moreover, the
management regularly monitors and reviews customers’ credit exposure. Accordingly, the company is not
exposed to any significant credit risk.
Other receivables constitute mainly receivables from the related parties and subsidy on gas. Considering the
financial position of related parties and credit quality of the institution, Company’s exposure to credit risk is
not significant.
Long and short term investments are investments in TFCs and TDRs respectively. The credit risk on these
investments and their accured profit is limited because counter party is bank with reasonably high credit
ratings.
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