Treasury Management

At Gohar Group of Companies, we conservatively manage our liquidity and funding position, and we strive for a strong capital position. Our client focused business model generally mitigates risks and limits exposures, while the integrated business mix provides a certain amount of natural risk diversification. We maintain substantial excess liquidity to meet a broad range of potential cash outflows in a stressed environment, including financing obligations. The amount of our excess liquidity is based on an internal liquidity model together with a qualitative assessment of the condition of the economy and of Gohar GoC.

Our business strategy includes an assessment of the overall characteristics of our assets with respect to their anticipated holding periods and potential illiquidity in a stressed environment. In addition, we manage the maturities and diversity of our secured and unsecured funding liabilities across markets, products and counterparties, and we seek to maintain liabilities of appropriate term relative to our asset base.

Risk Management

The taking of risk in line with our strategic priorities is fundamental to our business as a leading Real Estate Developer. We use our Economic Capital Structure as our consistent and comprehensive tool for risk management, capital management and planning and performance measurement. It provides us with a robust framework for managing our risk on a consolidated basis and for the assessment of an aggregate risk appetite in relation to our financial resources.

A key element is our sound system of risk limits which define our maximum on- and off-balance sheet exposures. We also consider other factors (for example strategy, reputation, economic and competitive environment) that are outside the economic capital framework. We use the concept of value-at-risk to measure our market risk as potential changes in fair values in response to market movements. Scenario analyses are performed for all our assets exposed to market to estimate the potential economic loss that could arise from extreme, but plausible, stress events. In addition to these portfolio risk tools, we use a range of detailed specific risk tools.