Page 150 - InterloopAnnualReport2021

NOTES TO THE

FINANCIAL STATEMENTS

For the year ended June 30, 2021

Cash flow sensitivity analysis for variable rate instruments
If interest rates on loan, receivables, long term financing and short term borrowings from banks, at
the year end date, fluctuate by 100 bps higher / lower with all other variables, in particularly foreign
exchange rates held constant, profit before taxation for the year 2021 and 2020 would have been
affected as follows:

2021 2020
(Amount ‘000) (Amount ‘000)

Effect on profit and loss of an increase in interest rate for loan to director 207 182
Effect on profit and loss of an increase in interest rate for long term financing (41,668) (32,538)
Effect on profit and loss of an increase in interest rate for short term borrowings (37,387) (103,317)
(78,848) (135,673)

Decrease in interest rates at June 30 would have had the equal but opposite effect of these amounts.
Sensitivity analysis has been prepared on symmetric basis.

52.1.2 Currency risk / Foreign Exchange risk:
Currency risk is the risk that the fair value or future cash flows of a financial instrument, will fluctuate
because of changes in foreign exchange rates. Foreign currency risk arises mainly where receivables and
payables exist due to foreign currency transactions.

Exposure to Currency Risk
The Company’s exposure to currency risk is restricted to the amounts receivable from/payable to the
foreign entities and bank balances which are denominated in currency other than the functional currency
of the Company. The Company’s exposure to currency risk is as follows:

2021 2020
Particulars Currency F.Currency Rupees F.Currency Rupees
(Amount ‘000 )
Foreign currency bank accounts US $ 114.39 18,051 329.39 55,419
EUR € 0.05 9 24.80 4,689
18,060 60,108

Trade debts US $ 89,380.33 14,104,216 39,273.23 6,607,722
Loans and advances US $ 40.52 6,398 40.52 6,777
14,128,674 6,674,607

Less: Payables - Creditors US $ (567.50) (89,835) (267.52) (45,145)
EUR € (122.48) (23,114) (118.09) (22,405)
GBP £ (0.04) (8) (14.15) (2,939)
CNY - - (0.06) (1)
JPY ¥ - - (17.70) (28)
(112,957) (70,517)
FE-25 Export US $ - - (2,873.25) (484,861)
On Balance sheet Exposure 14,015,717 6,119,228
Under letter of credit US $ 22,080 3,495,202 2,019.75 340,833
EUR € 10,497 1,980,826 517.29 98,146
GBP £ 63 13,757 - -
JPY ¥ 237,972 340,872 - -
Off Balance Sheet Exposure 5,830,657 438,978

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