Investor Presentaiton

ANNUAL REPORT PP Private Power and Infrastructure Board ANNUAL REPORT Rupees per USD Average rate Reporting date mid point rate 2020 2019 166.13 142.70 168.25 164.00 Private Power and Infrastructure Board (b) Credit risk Credit risk represents the risk that one party to financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was as follows: Sensitivity analysis At 30 June 2020, if the currency had weakened / strengthened by 10% against US dollar with all other variables held constant, the impact on profit before tax would have been Rupees 129.167 million (2019: Rupees 121.801 million) higher/lower. (ii) Other price risk Other price risk represents the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Board's investment in mutual fund amounting to Rupees 90.07 million (2019: Rupees 85.03 million) is exposed to price risk due to change in Net Asset Value (NAV) of such fund. As at 30 June 2020, if fair value (NAV) had been 10% higher / lower with all other variables held constant, total comprehensive loss for the year would have been higher / lower by Rupees 9.007 million (2019: Rupees 8.503 million). (iii) Interest rate risk Interest rate risk represents the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Sensitivity to interest rate risk arises from mismatches of financial assets and liabilities that mature in a given period. A policy is adopted to ensure that interest rate risk is minimized by investing in fixed rate investments like PIBS and TDRs. There were no borrowings. Profile At the reporting date the interest rate profile of variable rate interest-bearing financial instruments is: 2020 2019 (Rupees in thousand) Investments Loans, advances and other receivables Bank balances 1,988,949 1,834,931 140,292 133,840 146,654 103,664 2,275,895 2,072,435 Geographically there is no concentration of credit risk as PPIB operates in the same geographical area. The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rate. Bank balances Habib Bank Limited Short term Long term Agency 2020 2019 (Rupees in thousand) Al-Baraka Bank (Pakistan) Limited A1 A PACRA Dubai Islamic Bank Limited National Bank of Pakistan A1+ AA VIS 1 52 1 51 A1+ AAA PACRA A1+ AAA VIS 107 129,777 22,597 78,698 Bank Alfalah Limited A1+ AA+ PACRA 1 Habib Metropolitan Bank Limited A1+ AA+ PACRA 1 1 United Bank Limited A1+ AAA VIS 368 357 NIB Bank Limited A1+ AA- PACRA 1 Summit Bank Limited A3 BBB- VIS Standard Chartered Bank (Pakistan) Limited A1+ AAA PACRA 2 Askari Bank Limited A1+ AA+ PACRA 1 2020 2019 JS bank Limited A1+ AA- PACRA 1,351 869 (Rupees in thousand) Fixed rate instruments Financial assets Investments Floating rate instruments Financial assets Bank balances Sensitivity analysis If interest rate at the year end date, fluctuates by 1% higher / lower with all other variables held constant, profit for the year would have been Rupees 1.467 million (2019: Rupees 1.037 million) lower / higher, mainly as a result of higher / lower interest on floating rate financial instruments. This analysis is prepared assuming the amounts of financial instruments outstanding at balance sheet date were outstanding for the whole year. Faysal Bank Limited A1+ AA PACRA 1,139 1,084 MCB Bank Limited A1+ AAA PACRA 1 Meezan Bank Limited A1+ AA+ VIS 13,856 First Women Bank Limited A2 A- PACRA 1 1,898,883 1,749,897 146,654 103,664 Investments Term deposit receipts 146,654 103,663 -Faysal Bank Limited A1+ AA PACRA 278,729 266,771 -Habib Metropolitan Bank Limited A1+ AA+ PACRA 880,741 830,298 - JS Bank Limited A1+ AA- PACRA 525,615 498,193 -Pak Oman Investment Company Limited A1+ AA+ VIS 213,798 -Pak Brunei Investment Company Limited A1+ AA+ VIS 154,635 National Investment Trust Unknown 1,898,883 90,066 1,749,897 1,988,949 85,034 1,834,931 173 Due to the Board's long standing business relationships with these counter parties and after giving due consideration to their strong financial standing, management does not expect non-performance by these counter parties on their obligations to the Board. Accordingly the credit risk is minimal. 174

View entire presentation