Page 143 - 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

2019 2018 2019 2018
Note Rupees in ‘000 Note Rupees in ‘000
Discount rate + 100 bps (2,232,532) (1,728,390) 26.3 Workers’ profit participation fund
Discount rate - 100 bps 2,781,833 2,165,469
Salary change + 100 bps 2,785,405 2,169,128 Opening balance 210,829 150,200
Salary change - 100 bps (2,225,007) (1,721,659) Interest on funds utilized in the Company's business 21,425 6,172
232,254 156,372
Less: paid during the year (232,069) (156,373)
The sensitivity analysis of the defined benefit obligation to the significant actuarial assumptions has been performed using the same calculation
techniques as applied for calculation of defined benefit obligation reported in the balance sheet. 185 (1)
Add: allocation for the year 285,315 210,830
25.9 The average duration of defined benefit obligation for the year ended 2019 is 11 years (2018: 11 years).
Closing balance 285,500 210,829
26. TRADE AND OTHER PAYABLES
27. ACCRUED MARK UP
Creditors 833,328 889,974
Accrued liabilities 26.1 2,213,645 1,464,098 Mark up on:
Advances from customers 7,398 13,510 Long term financing 46,259 36,228
Other payables 26.2 153,125 127,402 Short term borrowings 64,224 101,628
Employees provident fund trust 5,020 4,315 110,483 137,856
Withholding tax payable 78,845 20,286
Workers' profit participation fund 26.3 285,500 210,829 28. SHORT TERM BORROWINGS
3,576,861 2,730,414 From banking companies - Secured
Under mark up arrangements
26.1 It includes an amount of Rs. 209.85 million (2018: Rs. 188.22 million) relating to infrastructure cess payable. ERF - II { 11,726,000 11,021,000
FAPC - own source 28.1 - 2,750,000
Honourable Sindh High Court in its decision dated 17 September, 2008 declared the imposition of infrastructure cess before December 28, 2006 as Running finance - 1,263,364
void and invalid. However, the Excise and Taxation Department filed an appeal before the Honourable Supreme Court of Pakistan. The Honourable From related parties - Unsecured - 146,573
Chief executive and directors
Supreme court of Pakistan had disposed off the appeal with a joint statement of the parties that during the pendency of the appeal, another law i.e.
fifth version came into existence which was not the subject matter of the appeal hence the case was referred back to High Court of Sindh with right 11,726,000 15,180,937
to appeal to Supreme Court. On May 31, 2011, the High Court of Sindh had granted an interim relief on an application of petitioners on certain terms
including discharge and return of bank guarantees / security furnished on consignment released up to December 27, 2006 and any bank guarantee / 28.1 These are secured against first Joint Pari Passu (JPP) charge of Rs. 26,817.83 million (2018: 26,083.33 million) and ranking charge of Rs. 2,632 million
security furnished on consignment released after December 27, 2006 shall be encashed to extent of 50% of the guaranteed or secured amount only (2018: Nil) by all the lending banks over all present and future current assets of the Company. The total limits available to the Company for short term
with balance kept intact till the disposal of petition. In case the High Court upholds the applicability fifth version of law and its retrospective application, borrowings from all the banks are amounting to Rs. 24,950 million (2018: 19,562.5 million).
the authorities are entitled to claim the amounts due under the said law with the right to appeal available to petitioner. In the light of interim relief the
Company has paid 50% of the amount of Infrastructure cess. Imports of the Company are being released against 50% payment of Infrastructure cess Mark up is charged as;
to Excise and Taxation Department and furnishing of bank guarantee of balance amount.
ERF - II SBP rate + 0.25 to 0.30% p.a (2018: SBP rate + 0.25% to 0.40% p.a).
The Government of Punjab imposed Punjab Infrastructure Development Levy in terms of the Punjab Infrastructure Development Cess Act, 2015 (the
Act) read with PRA Notification No.PRA/IDC/2015 dated 16.05.2016 and PRA order No.PRA/Orders.08/2015 dated 23.05.2016. The Company being FAPC - own source 3 months Kibor + 0.25 to 0.50% p.a (2018: 3 to 6 months Kibor + 0.25 to 1.00% p.a)
aggrieved filed writ petition vide WP No.24536 of 2016 before Honorable Lahore High Court challenging the constitutionality of the Act . The Lahore
High Court on 28.07.2016 granted interim relief for clearance of goods subject to payment of 50% of the disputed amount and upon furnishing of a Running finance 1 to 3 months Kibor + 0.20 to 1.00% p.a (2018: 1 to 3 months Kibor + 0.20 to 1.00% p.a)
bank guarantee for the balance of 50% of the amount.
29. CURRENT PORTION OF NON CURRENT LIABILITIES
Both the above referred cases are pending litigation before respective Honorable High Courts. The case of Sindh High Court is pending adjudica-
tion, whereas case preferred before Honorable Lahore High Court has been fixed for 24.09.2019. Long term financing 23 1,247,191 968,540
Liabilities against assets subject to finance lease 24 - 470
However the full amount of Infrastructure Cess forms component of cost of imported items and provision recorded in books. Bank guarantees fur- 1,247,191 969,010
nished ragarding imposition of infrastructure cess have been disclosed in note - 30.1 to these financial statements.
26.2 This includes amount of Rs. 338 thousand payable to ESOS Management Trust for payments received against issuance of shares to employees
under ESOS.

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Interloop Limited Annual Report

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