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NOTES TO AND FORMING
PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
166
PAKISTANOILFIELDS LIMITED
Rating
2020
2019
Rupees ('000)
Long term loans and advances
Counterparties without external credit rating
Receivable from employees
26,723
26,273
Short term investments - at amortised cost
Counterparties with external credit rating
A1+
6,367,740
-
Other financial assets
Counterparties with external credit rating
AA(f )
670
809,919
AA-(f )
801
610
AA+
2,709
2,225
AM2+
2,339
724
6,519
813,478
37.3 FINANCIAL RISK MANAGEMENT
37.3.1 Financial risk factors
The Company’s activities expose it to a variety of financial risks: credit risk, liquidity risk and market
risk (including currency risk, interest rates risk andprice risk). The Company’s overall riskmanagement
policy focuses on the unpredictability of financial markets and seeks to minimize potential adverse
effects on the Company’s financial performance.
(a)
Credit risk
Credit risk represents the risk that one party to a financial instrument will cause a financial loss for
the other party by failing to discharge an obligation.
As of June 30, 2020, trade debts of Rs 3,951,419 thousand (2019: Rs 2,188,039 thousand) were past
due but not impaired. The ageing analysis of these trade receivables is as follows: