Page 278 - InterloopAnnualReport2020

NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

2019
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 4,875,936 5,764,488 677,420 934,605 4,152,463
Trade and other payables 3,248,567 3,248,567 3,248,567 – –
Dividend payable 130,935 130,935 130,935 – –
Accrued mark up 113,942 113,942 113,942 – –
Short term borrowings 11,855,742 11,941,219 11,941,219 – –
20,225,122 21,199,151 16,112,083 934,605 4,152,463

The contractual cash flows relating to the above financial liabilities have been determined on the basis of
interest rates / mark–up rates effective as at 30 June. The rates of interest / mark up have been disclosed in
note 26, 27 and note 31 to these financial statements.

53.4 Capital risk management
The primary objective of the Company’s capital management is to safeguard the company’s ability to continue
as a going concern, maintain healthy capital ratios, strong credit rating and optimal capital structures in
order to ensure ample availability of finance for its existing and potential investment projects, so that it can
continue to provide returns for shareholders thereby maximizing their wealth, benefits for other stakeholders
and reduce the cost of capital.

The Company manages the capital structure in the context of economic conditions and the risk characteristics
of the underlying assets. In order to maintain or adjust the capital structure, the Company may, for example,
adjust the amount of dividends paid to shareholders, issue new shares, or sell assets to reduce debt.

The Company monitors capital on the basis of debt to equity ratio, calculated on the basis of total debt to
equity.

2020 2019
(Rupees ‘000) (Rupees ‘000)

Long term financing 7,285,098 4,875,936
Short term borrowings 14,904,829 11,855,742
Debts 22,189,927 16,731,678
Equity 16,265,111 17,515,883
Total capital (equity + debt) 38,455,038 34,247,561

Gearing ratio (Percentage) 57.70 48.86

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