Page 145 - 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

30. CONTINGENCIES AND COMMITMENTS 32. COST OF SALES
30.1 Contingencies Raw material consumed 32.1 15,658,024 13,312,629
Stores and spares consumed 32.2 854,199 824,473
30.1.1 Bank guarantees issued by various banks on behalf of the company in favour of: Knitting charges 11,897 192,135
Salaries, wages and benefits 32.3 5,529,513 5,037,474
Sui Northern Gas Pipelines limited against supply of gas. 547,069 386,804 Staff retirement gratuity 25.4 440,739 352,125
The Director, Excise and Taxation, Karachi against imposition of infrastructure cess 197,853 172,853 Fuel and power 2,261,283 1,874,447
Repairs and maintenance 129,103 129,668
Faisalabad Electric Supply Company (FESCO) against supply of electricity. 70,414 70,414 Insurance 52,250 51,064
Depreciation 7.1.2 1,490,464 1,338,143
Punjab Revenue Authority 8,033 4,335 Rent, rate and taxes 25,676 32,305
Other manufacturing costs 235,444 84,435
State Bank of Pakistan 127,551 25,000 26,688,592 23,228,898
Work in process
950,920 659,406
Opening balance 471,276 450,678
30.1.2 Post dated cheques issued in favour of custom authorities for release of imported 3,291,613 2,643,166 Closing balance (597,562) (471,276)
goods
(126,286) (20,598)
30.1.3 Corporate guarantees given to banks on behalf of IL Apparel (Pvt) Ltd - a subsidiary 1,130,000 - Cost of goods manufactured 26,562,306 23,208,300
company
30.2 Commitments Finished goods
Under letters of credit for: Opening balance 1,484,177 1,120,718
Closing balance (1,954,089) (1,484,177)
Capital expenditure 1,275,725 747,706 (469,912) (363,459)
Raw material 109,974 209,206
Stores and spares 136,399 37,153 26,092,394 22,844,841
1,522,098 994,065 Duty drawback (568,787) (850,604)
25,523,607 21,994,237
31. SALES - NET
32.1 Raw material consumed
Export sales 31.1 33,941,213 27,518,696
Local sales 3,775,022 3,846,865 Opening balance 3,166,265 1,994,485
37,716,235 31,365,561 Purchases 16,222,599 14,484,409
Less: 19,388,864 16,478,894
Sales discount (206,792) (206,052) Closing balance (3,730,840) (3,166,265)
Sales tax (31,122) (20,773) 15,658,024 13,312,629
(237,914) (226,825)
37,478,321 31,138,736 32.2 Stores and spares consumed
Opening balance 779,198 696,743
31.1 It includes exchange gain amounting to Rs. 2,258.645 million (2018: Rs. 890.62 million). Purchases 962,660 906,928
1,741,858 1,603,671
Closing balance (887,659) (779,198)
854,199 824,473

32.3 Salaries, wages and benefits include Rs. 6.321 million (2018: Rs. 5.49 million) in respect of the provident fund contribution.

33. DISTRIBUTION COST
Sea and air freight 50,145 47,672
Shipping expenses 623,785 660,682
Selling commission 1,757,956 1,621,212
Export development surcharge 83,243 66,600 2018 - 19
Interloop Limited Staff salaries and benefits 33.1 2,783,719 2,641,013 Annual Report
77,900
Marketing and advertisement
60,817
193,008
154,966
11,498
14,368
Staff retirement gratuity
25.4
Others
483
397
142 143