Page 44 - InterloopAnnualReport2020

Liquidity Risk Strategy financial institutions, and any other investment schemes
to enhance profitability and increase shareholders’ return.
Liquidity and Cash Flow Management Further Liquidity risk-related information is given in Financial
Strategy Statement Note No. 52.3

The Company is diligently managing its cash flow stream Plans & Decisions
and has thoughtfully crafted its portfolio of investment
and borrowing. The management meticulously reviews
key financial ratios and adjusts the Company strategy, Interloop has grown its business through expansion of
maintaining financial discipline. In addition to that, the existing operations and also through diversification into
Company maintains enough reserves along with sufficient new business operations. Currently, we plan to continue
funded lines from the Financial Institutions. to expand our operations across all our categories and
there are no plans for any significant restructuring or
Liquidity Generation discontinuation of operations.

Internal cash generation is ensured through revenues and Significant Changes in
income from deposits / short term investments. Receipts Objectives & Strategies
from customers are effectively managed through optimized
control on customers’ credit. The management diligently
monitors operating cash flow needs through effective At Interloop, we develop a vision for the organisation every
cash flow forecasting. It periodically evaluates planned vs five years & objectives and strategies are carefully designed
actual results and takes steps to keep it in line with plans. to achieve that vision, staying in line with our mission. Our
Furthermore, before taking external financing, the Company five year vision is implemented through an annual business
carries out in-depth cash flow forecasting and considers planning process where annual departmental objectives
optimal returns. This ensures optimum weighted average and KPIs’ are set to achieve our vision, which are regularly
cost of capital and minimal reliance over external sources. reviewed by the management. There has not been any
material deviation from the objectives and strategies during
Investments and Placement of Funds the year.

The Company has strategically diversified its portfolio
overtime to maintain maximum returns while taking prudent
levels of risks and exposure. The Company prefers premium
credit-rated institutions for investment and placement of
funds to minimize liquidity and credit risk and profitable
returns are ensured by investments in the money market
/ Government securities, term deposits with banks /

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