Page 216 - 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

2019 2018 2019 2018
Note Rupees in ‘000 Note Rupees in ‘000

35. ADMINISTRATIVE EXPENSES 36.2 Loss on mutual funds measured at fair value through profit or loss;
Directors' remuneration 111,952 111,470 Remeasurement loss on investment in mutual funds - fair value through profit or loss 18.1 20,787 10,908
Staff salaries and benefits 35.1 & 35.2 1,066,010 845,765
Staff retirement gratuity 26.1.4 68,178 52,113 Realized loss on investment in mutual funds - fair value through profit or loss 915 49,177
Postage and communication 39,254 35,157
Electricity, gas and water 22,135 19,766 Dividend income on investment in mutual funds - fair value through profit or loss (5,816) (1,828)
Rent, rates and taxes 122,419 71,842 15,886 58,257
Printing and stationery 63,218 53,388
Travelling and conveyance 114,820 100,491
Vehicles running and maintenance 24,491 20,989 37. OTHER INCOME
Legal and professional 74,578 41,010 Income from financial assets
Repairs and maintenance 46,548 50,283
Auditors' remuneration 35.4 3,000 1,786 Interest on long term loan to SNGPL - 16
Insurance 18,221 17,359 Interest on loan to Metis International (Pvt) Ltd 7,211 8,923
Entertainment 52,221 51,113 Profit on TDR's 1,437 43,198
Advertisement 17,576 4,379 Interest on receivables from IL Bangla Limited 5,796 -
Newspapers and periodicals 1,190 656
Depreciation 8.1.2 155,328 137,664 Profit on deposit accounts - 2,821
Amortization 9 9,182 10,427
Others 18,319 13,552 Income from financial assets
2,028,640 1,639,210
Miscellaneous - 129
35.1 Staff salaries and benefits include Rs. 4.746 million (2018: Rs. 3.804 million) in respect of the provident fund contribution. 14,444 55,087
38. FINANCE COST
35.2 Staff salaries and benefits include Rs. 5.031 million (2018: Rs. 4.188 million) in respect of employees’ share option compensation expense.
Mark up on:
35.3 The investments out of provident fund have been made in accordance with the provisions of section 218 of the Companies Act, 2017 and conditions Short term borrowings 555,942 269,986
specified thereunder. Long term financing 315,730 153,931
Interest on workers' profit participation fund 27.3 21,425 7,403
35.4 Auditors' remuneration Lease finance charges 14 129
Bank charges and commission 106,149 67,507
Annual audit fee 1,950 1,376 999,260 498,956
Other certification 400 260
Half yearly review 500 - 39. GAIN FROM CHANGES IN FAIR VALUE LESS COSTS TO SELL OF BIOLOGICAL ASSETS
Out of pocket expenses 150 150
3,000 1,786 Gain from changes in fair value less costs to sell of biological assets - 9,245
40. TAXATION
36. OTHER OPERATING EXPENSES
Current 40.1 226,260 132,737
Exchange loss - net 15,272 12,801 Prior years - 6,599
Loss on disposal of biological assets - 25,871 Deferred
Loss on disposal of property, plant and equipment 8.1.1 47,553 39,145 Origination and reversal of temporary differences - 16,102
Loss on disposal of subsidiary - 147,065 Impact of change in tax rate - (2,190)
Charity and donations 36.1 350,176 104,847 - 13,912
Workers' profit participation fund 27.3 285,315 215,040
Loss on mutual funds measured at fair value through profit or loss 36.2 15,886 58,257 226,260 153,248
714,202 603,026 40.1 The Company is chargeable to tax under section 154 and 169 of the Income Tax Ordinance, 2001 and no temporary differences are expected to arise
in the foreseeable future. Therefore, provision for deferred tax is not required. Reconciliation of tax expense and product of accounting profit multiplied
36.1 Charity and donations by the applicable tax rate is also not required in view of presumptive taxation.
Donations include the following in which a director or his spouse has an interest;
40.2 Section 5A of the Income Tax Ordinance, 2001 imposes tax at the rate of 5% on every public company other than a scheduled bank or Modaraba, that
derives profits for a tax year but does not distribute at least 20% of accounting profit through cash dividend within six months of the end of said tax year.
Name of Donee Interest in Donee Name of Director
The Company has distributed sufficient cash dividend, for the year ended June 30, 2018, which complies with the above stated requirements. Accord-
ingly, no provision for tax on undistributed profits has been recognized in the financial statements for the year ended June 30, 2019.
Interloop Welfare Trust Trustees Mr. Navid Fazal 99,223 21,766
Mr. Musadaq Zulqarnain
Mrs. Sheren Aftab 2018 - 19
Mr. Jahanzeb Khan Banth
Interloop Limited Mr. Muhammad Maqsood Annual Report

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