Page 69 - InterloopAnnualReport2021

LIQUIDITY RISK STRATEGY

LIQUIDITY AND CASH FLOW
MANAGEMENT STRATEGY
The company is diligently managing its cash flow stream average cost of capital and minimal reliance over
and has thoughtfully crafted its portfolio of investment external sources.
and borrowing. The management meticulously reviews
key financial ratios and adjusts the company strategy, INVESTMENTS AND PLACEMENT OF
maintaining financial discipline. In addition to that, FUNDS
the company maintains enough reserves along with
sufficient funded lines from the Financial Institutions. The company has strategically diversified its portfolio
overtime to maintain maximum returns while taking
LIQUIDITY GENERATION prudent levels of risks and exposure. The company
prefers premium credit-rated institutions for investment
Internal cash generation is ensured through revenues and placement of funds to minimize liquidity and credit
and income from deposits / short term investments. risk and profitable returns are ensured by investments
Receipts from customers are effectively managed in the money market / Government securities, term
through optimized control on customers’ credit. The deposits with banks / financial institutions, and any
management diligently monitors operating cash flow other investment schemes to enhance profitability and
needs through effective cash flow forecasting. It increase shareholders’ return.
periodically evaluates planned vs actual results and
takes steps to keep it in line with plans. Furthermore, Further Liquidity risk-related information is given in
before taking external financing, the company carries Financial Statement Note No. 52.3
out in-depth cash flow forecasting and considers
optimal returns. This ensures optimum weighted

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