Page 154 - InterloopAnnualReport2021

NOTES TO THE

FINANCIAL STATEMENTS

For the year ended June 30, 2021

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)

Fnancial Liabilities :
Long term financing 7,222,513 6,621,454 245,875 515,413 5,860,166
Lease liabilities 119,694 156,833 15,613 15,201 126,019
Trade and other payables 2,799,954 2,799,954 2,799,954 – –
Unclaimed dividend 2,952 2,952 2,952 – –
Accrued mark up 191,136 191,136 191,136 – –
Short term borrowings 14,354,861 14,448,227 14,448,227 – –
24,691,110 24,220,556 17,703,757 530,614 5,986,185

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 24, 25 and 29 to these financial statements.

52.4 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.

2021 2020
(Rupees ‘000) (Rupees ‘000)

Long term financing 10,652,580 7,222,513
Short term borrowings 19,636,066 14,354,861
Debts 30,288,646 21,577,374
Equity 20,514,612 17,279,692
Total capital (equity + debt) 50,803,258 38,857,066

Gearing ratio (percentage) 59.62 55.53

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