Page 179 - Interloop Annual Report 2018-2019

NOTES TO THE CONSOLIDATED NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTS FINANCIAL STATEMENTS

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

1. THE GROUP AND ITS OPERATIONS
1.3 IL Bangla Limited - The Associate (Holding- 31.61% (2018: 43.75%))
The Group comprises of:
IL Bangla Ltd. is a private limited company incorporated under the Companies Act 1994 as applicable
in Bangladesh vide Registration No. C-77561/09 dated 21 May 2009 floated by foreign investors
1.1 Interloop Limited- The Holding Company
(Pakistan and West Indies) having its registered Office at House # 267, Road # 19, New DOHS
Mohakhali, Dhaka, Bangladesh and factory at Dakkhin kongshadi Vatpara, Narsingdi Sadar, Narsingdi,
1.1.1 Interloop Limited (the Company) was incorporated in Pakistan on 25th April, 1992 as a private Bangladesh. The company’s main objective is to carry on the business of manufacturing and sale/
limited company and subsequently it was converted into public limited company on 18th July, export of socks and hosieries.
2008. The Company was listed on Pakistan Stock Exchange on 5th April, 2019. The Company
is engaged in the business of manufacturing and selling of socks, leggies, denim and yarn, 2. BASIS OF PREPARATION
providing yarn dyeing services and to generate electricity for its own use.
2.1 Statement of compliance
The geographical locations and addresses of the Company’s business units, including
production facilities are as under: These financial statements have been prepared in accordance with the accounting and reporting
- Registered office: Al-Sadiq Plaza, P-157, Railway Road, Faisalabad. standards as applicable in Pakistan. The accounting and reporting standards applicable in Pakistan
- Corporate office & Plant 1: 1-KM, Khurrianwala – Jaranwala Road, Khurrianwala, Faisalabad-Pakistan. comprise of:
- Plant 2, Plant 4 & Spinning: 6-KM, Khurrianwala – Jaranwala Road, Khurrianwala, Faisalabad-Pakistan. - International Financial Reporting Standards (IFRS Standards) issued by the International Accounting
- Plant 5: 6-KM, Khurrianwala – Jaranwala Road, Khurrianwala, Faisalabad-Pakistan. Standards Board (IASB) as notified under the Companies Act, 2017; and
- Plant 3 & Denim: 8-KM, Manga- Raiwind Road, Raiwind, Dist. Kasur, Lahore-Pakistan.
- Provisions of and directives issued under the Companies Act, 2017.
1.1.2 The Board of Directors of the Company decided to initiate the proceedings for enlisting of the
Company on the Pakistan Stock Exchange Limited to finance hosiery division - V and denim Where the provisions of and directives issued under the Companies Act, 2017 differ from the IFRS
projects. Hence, the Company issued the prospectus for Initial Public Offer (IPO) of 109 million Standards, the provisions of and directives issued under the Companies Act, 2017 have been followed.
ordinary shares of Rupees 10 each at a floor price of Rupees 45 per share including share
premium of Rupees 35 per share as on 05 March 2019. Details regarding utilization of IPO 2.2 Basis of measurement
proceeds for denim project and plant expansion have been fully explained in the prospectus.
Before the date of the reporting period, 81.750 million ordinary shares were offered and These financial statements have been prepared under the historical cost convention except as otherwise
successfully subscribed through book building process by Institutional Investors and High stated in respective policy notes.
Net Worth Individuals (HNWI) at a strike price of Rupees 46.10 per share while the remaining
27.250 ordinary shares were offered to general public for subscription at strike price of Rupees 2.3 Functional and presentation currency
46.10 per share. Ordinary shares offered to general public were fully subscribed and shares
have been duly allotted to all shareholders. As on 05 April 2019, Pakistan Stock Exchange These financial statements are presented in Pakistani Rupee which is also the Company’s functional
Limited has approved the Company’s application for formal listing and quotation of the shares currency.
on Pakistan Stock Exchange.
3. NEW AND REVISED STANDARDS, INTERPRETATIONS AND PRONOUNCEMENTS
1.2 IL Apparel (Private) Limited - The Subsidiary (Holding- 100% (2018: 100%))
3.1 Standards, interpretations and amendments to approved accounting standards which became
IL Apparel (Private) Limited was incorporated in Pakistan on 28th March, 2018 under the Companies effective during the year
Act, 2017. The registered office of the company is situated at Al-Sadiq Plaza, P-157, Railway Road,
Faisalabad. The principal business activity of the company is manufacturing and sale of garments and - Amendment to IAS 40 ‘Investment Property’:
allied products. 2018 - 19
Interloop Limited Transfers of investment property clarifies that an entity shall transfer a property to, or from, investment Annual Report
property when, and only when there is a change in use. A change in use occurs when the property

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