Page 240 - Pakistan Oilfields Limited - Annual Report 2020

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NOTES TO AND FORMING
PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
238
PAKISTAN OILFIELDS LIMITED
2020
2019
Rating
Rupees ('000)
Short term investments - at amortised cost
Counterparties with external credit rating
A1+
6,468,798
67,271
Available for sale investments
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
Long term loans and advances
Counterparties without external credit rating
Receivable from employees
26,723
26,273
39.3 Financial risk management
39.3.1 Financial risk factors
The Group’s activities expose it to a variety of financial risks: credit risk, liquidity risk and market
risk (including currency risk, interest rates risk and price risk). The Group’s overall risk management
policy focuses on the unpredictability of financial markets and seeks to minimize potential adverse
effects on the Group’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 (2019: Rs 2,158,039 thousand) were past due but not
impaired. The ageing analysis of these trade receivables is as follows:
2020
2019
Rupees ('000)
Due from related parties
Up to 3 months
49,655
824,827
3 to 6 months
229,139
1,525
6 to 12 months
768,602
1,591
Above 12 months
-
1,277
1,047,396
829,220