ALM Audit Report

Overview

Below is a business-focused explanation of the ALM Audit Report as used in Dafater.

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ALM Audit Report

Module: Loan Management
Purpose: Asset–Liability Management Monitoring and Audit

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What business information this report provides

The ALM Audit Report gives a structured view of how loan assets are expected to generate cash inflows over time and how these inflows align with the organization’s funding obligations.
It helps management understand:

• Timing of loan repayments (principal and interest)
• Distribution of loan cash flows across time buckets
• Exposure to liquidity risk and maturity mismatches
• Whether loan portfolios are aligned with funding and regulatory expectations

In simple terms, the report shows when money is expected to come in from loans, allowing the business to compare this with when money needs to go out.

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When and why to use this report

When to use

• Monthly or quarterly ALM reviews
• Before board or regulator discussions
• During liquidity planning and stress testing
• While reviewing portfolio concentration and maturity profiles

Why to use

• To ensure the organization can meet its short-term and long-term obligations
• To avoid cash flow gaps that could affect operations
• To validate that Dafater decisions are aligned with risk appetite
• To support internal and external audits

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Key columns and what they mean for business

While exact columns may vary, the ALM Audit Report typically includes:

• Loan ID / Loan Account
  Identifies the specific loan being analyzed.

• Customer / Borrower
  Shows who is responsible for repayments, useful for concentration analysis.

• Loan Amount
  Original or outstanding value of the loan.

• Outstanding Principal
  Amount still to be collected; represents future cash inflows.

• Interest Receivable
  Expected interest income over the remaining loan tenure.

• Maturity Date
  When the loan is scheduled to be fully repaid.

• ALM Time Bucket (e.g., 0–30 days, 31–90 days, 6–12 months, >1 year)
  Groups loans based on when cash inflows are expected.

• Total Cash Inflow per Bucket
  Aggregated principal and interest expected in each period.

These columns help management clearly see when and how much cash is expected from the loan portfolio.

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Available filters and their business purpose

Common filters include:

• Company / Business Unit
  Focus on specific legal entities or branches.

• Loan Product / Scheme
  Analyze maturity behavior of specific loan offerings.

• Loan Status (Active, Closed, Overdue)
  Separate performing loans from those that may impact liquidity.

• As of Date
  View the ALM position at a specific point in time.

• Customer or Customer Segment
  Assess concentration risk across borrower types.

These filters allow decision-makers to slice the portfolio and focus on the most relevant risk areas.

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How to interpret the results for business decisions

• High concentration in short-term buckets
  Indicates strong near-term inflows but may require reinvestment planning.

• Large gaps in certain time buckets
  Suggest potential liquidity mismatches that need funding adjustments.

• Excessive long-term exposure
  May increase interest rate and refinancing risk.

• Uneven distribution across products or customers
  Signals concentration risk and the need for portfolio diversification.

Management can use these insights to: - Adjust Dafater strategy - Plan borrowings or investments - Revise pricing or tenure policies - Strengthen risk controls

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Common use cases and scenarios

• Liquidity Risk Review
  Treasury and finance teams use the report to ensure sufficient cash is available.

• Regulatory and Internal Audits
  Demonstrates disciplined monitoring of asset maturities.

• Portfolio Strategy Planning
  Helps decide whether to focus on short-term or long-term Dafater.

• Stress Testing
  Supports scenario analysis by showing exposure across time horizons.

• Board and Management Reporting
  Provides a clear, auditable snapshot of the loan book’s maturity profile.

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Summary

The ALM Audit Report in Dafater is a critical decision-support tool that connects loan-level data to enterprise-wide liquidity and risk management. It ensures that loan growth remains sustainable, balanced, and aligned with the organization’s financial commitments.

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Report Information

• Module: Loan Management
• Related DocType: Loan
• Report Type: Script Report
• Standard: Yes