Page 162 - Pakistan Oilfields Limited - Annual Report 2021

NOTES TO AND FORMING

PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2021

Rating 2021 2020
Rupees ('000)
Long term loans and advances
Counterparties without external credit rating
Receivable from employees 37,146 26,723

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
AA-(f) - 801
AA+ - 2,709
AM2+ - 2,339
- 6,519

35.3 FINANCIAL RISK MANAGEMENT

35.3.1 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 and price risk). The Company’s overall risk management
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 of financial loss for
the other party by failing to discharge an obligation.

As of June 30, 2021, trade debts of Rs 1,564,171 thousand (2020: Rs 3,951,419 thousand) were past
due but not impaired. The ageing analysis of these trade receivables is as follows:
2021 2020
Rupees ('000)
Related parties
Up to 3 months 267,117 49,655
3 to 6 months 275,148 229,139
6 to 12 months 85,057 768,602
Above 12 months 27,905 -
655,227 1,047,396
Others

Up to 3 months 811,169 763,195
3 to 6 months 4,952 1,521,465
6 to 12 months 69,669 595,363
Above 12 months 23,154 24,000
908,944 2,904,023
1,564,171 3,951,419

160 PAKISTAN OILFIELDS LIMITED