Page 109 - Interloop Annual Report 2018-2019

NOTES TO THE UNCONSOLIDATED NOTES TO THE UNCONSOLIDATED

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2019 FOR THE YEAR ENDED JUNE 30, 2019

1. LEGAL STATUS AND OPERATIONS
2.2 Basis of measurement
1.1 Interloop Limited (the Company) was incorporated in Pakistan on 25th April, 1992 as a private limited company and
subsequently it was converted into public limited company on 18th July, 2008. The Company was listed on Pakistan These unconsolidated financial statements have been prepared under the historical cost convention except as
Stock Exchange on 5th April, 2019. The Company is engaged in the business of manufacturing and selling of otherwise stated in respective policy notes.
socks, leggies, denim and yarn, providing yarn dyeing services and to generate electricity for its own use.
2.3 Functional and presentation currency
The geographical locations and addresses of the Company’s business units, including production facilities are as
under: These unconsolidated financial statements are presented in Pakistani Rupee which is also the Company’s functional
- Registered office: Al-Sadiq Plaza, P-157, Railway Road, Faisalabad. currency.
- Corporate office & Plant 1: 1-KM, Khurrianwala – Jaranwala Road, Khurrianwala, Faisalabad-Pakistan.
- Plant 2, Plant 4 & Spinning: 7-KM, Khurrianwala – Jaranwala Road, Khurrianwala, Faisalabad-Pakistan. 3. NEW AND REVISED STANDARDS, INTERPRETATIONS AND PRONOUNCEMENTS
- Plant 5: 6-KM, Khurrianwala – Jaranwala Road, Khurrianwala, Faisalabad-Pakistan.
- Plant 3 & Denim: 8-KM, Manga- Raiwind Road, Raiwind, Dist. Kasur, Lahore-Pakistan. 3.1 Standards, interpretations and amendments to approved accounting standards which became effective
during the year

1.2 The Board of Directors of the Company decided to initiate the proceedings for enlisting of the Company on the - Amendment to IAS 40 ‘Investment Property’:
Pakistan Stock Exchange Limited to finance hosiery division - V and denim projects. Hence, the Company issued
the prospectus for Initial Public Offer (IPO) of 109 million ordinary shares of Rupees 10 each at a floor price of Transfers of investment property clarifies that an entity shall transfer a property to, or from, investment property
Rupees 45 per share including share premium of Rupees 35 per share as on 05 March 2019. Details regarding when, and only when there is a change in use. A change in use occurs when the property meets, or ceases to
utilization of IPO proceeds for denim project and plant expansion have been fully explained in the prospectus. meet, the definition of investment property and there is evidence of the change in use. In isolation, a change in
Before the date of the reporting period, 81.750 million ordinary shares were offered and successfully subscribed management’s intentions for the use of a property does not provide evidence of a change in use. The amendment
through book building process by Institutional Investors and High Net Worth Individuals (HNWI) at a strike price does not have any impact on Company’s financial statements.
of Rupees 46.10 per share while the remaining 27.250 million ordinary shares were offered to general public
for subscription at strike price of Rupees 46.10 per share. Ordinary shares offered to general public were fully - Amendments to IFRS 2 ‘Share-based Payment’ - Clarifying how to account for certain types of share-
subscribed and shares have been duly allotted to all shareholders. As on 05 April 2019, Pakistan Stock Exchange based payments:
Limited has approved the Company’s application for formal listing and quotation of the shares on Pakistan Stock
Exchange. The amendments are intended to eliminate diversity in practice in three main areas:
- The effects of vesting conditions on the measurement of a cash-settled share-based payment transaction;
2. BASIS OF PREPARATION - The classification of a share-based payment transaction with net settlement features for withholding tax
obligations;
2.1 Statement of compliance - The accounting where a modification to the terms and conditions of a share-based payment transaction
changes its classification from cash-settled to equity-settled.
These unconsolidated financial statements have been prepared in accordance with the accounting and reporting The amendment does not have a significant impact on these unconsolidated financial statements.
standards as applicable in Pakistan. The accounting and reporting standards applicable in Pakistan comprise of:
- Amendment to IFRS 4 ‘Insurance Contract’- Applying IFRS 9 ‘Financial Instruments’ with IFRS 4:
- International Financial Reporting Standards (IFRS Standards) issued by the International Accounting Standards
Board (IASB) as notified under the Companies Act, 2017; and The amendment address issue arising from the different effective dates of IFRS 9 and the forthcoming new
insurance contract standard IFRS 17 ‘Insurance Contracts’. The amendments introduce two alternative
- Provisions of and directives issued under the Companies Act, 2017. options for entities issuing contracts within the scope of IFRS 4, notably a temporary exemption and an overlay 2018 - 19
approach. The temporary exemption enables eligible entities to defer the implementation date of IFRS 9. The
Interloop Limited Where the provisions of and directives issued under the Companies Act, 2017 differ from the IFRS Standards, overlay approach allows an entity applying IFRS 9 from July 01, 2018 onwards to remove from profit or loss the Annual Report
the provisions of and directives issued under the Companies Act, 2017 have been followed.
effects of some of the accounting mismatches that may occur from applying IFRS 9 before IFRS 17 is applied.
The amendment does not have any impact on the Company’s financial statements.

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