Page 277 - InterloopAnnualReport2020

NOTES TO THE CONSOLIDATED

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

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.

53.3 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. 13,185.63 million (2019: Rs 13,394.26 million) unutilized borrowing
limits available from financial institutions and Rs. 161.080 million (2019: Rs. 1,542.907 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 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 7,285,098 6,690,433 245,957 532,637 5,911,839
Lease Liability 227,844 288,081 31,242 36,298 220,541
Trade and other payables 2,909,590 2,909,590 2,909,590 – –
Unclaimed dividend 2,952 2,952 2,952 – –
Accrued mark up 210,282 210,282 210,282 – –
Short term borrowings 14,904,829 14,998,195 14,998,195 – –
25,540,595 25,099,533 18,398,218 568,935 6,132,380

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