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INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF INTERLOOP

LIMITED

Report on the Audit of Unconsolidated Financial Statements

Opinion
We have audited the annexed unconsolidated financial statements of Interloop Limited (“the Company”), which comprise
the unconsolidated statement of financial position as at June 30, 2020, the unconsolidated statement of profit or loss, the
unconsolidated statement of comprehensive income, the unconsolidated statement of changes in equity, the unconsolidated
statement of cash flows for the year then ended and notes to the unconsolidated financial statements including a summary of
significant accounting policies and other explanatory information, and we state that we have obtained all the information and
explanations which, to the best of our knowledge and belief, were necessary for the purpose of the audit.
In our opinion and to the best of our information and according to the explanations given to us, the unconsolidated statement of
financial position, the unconsolidated statement of profit or loss, the unconsolidated statement of comprehensive income, the
unconsolidated statement of changes in equity and the unconsolidated statement of cash flows together with the notes forming
part thereof conform with the International Financial Reporting Standards as applicable in Pakistan, and, give the information
required by the Companies Act, 2017 (XIX of 2017), in the manner so required and respectively give a true and fair view of the
state of the company’s affairs as at June 30, 2020 and of the profit, total comprehensive income, the changes in equity and its
cash flows for the year then ended.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards
Board for Accountants’ Code of Ethics for Professional Accountants as adopted by the Institute of Chartered Accountants of
Pakistan (the Code) and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
unconsolidated financial statements of the current period. These matters were addressed in the context of our audit of the
unconsolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
Following are the Key Audit Matter(s):
S. No Key Audit Matter(s) How the Matter was addressed in audit
1. Adoption of IFRS 16 “Leases”: (Refer notes 4.1, 7, 8.3 and 26 to the unconsolidated financial statements)
The Company has changed its accounting policy due to Our audit procedures to review the application of IFRS
the adoption of IFRS 16 ‘Leases’. Under the requirement 16 ‘Leases’ included review of managements’ impact
of IFRS 16, the Company recognized right of use assets assessment of all operating lease contracts with
and lease liabilities for certain lease payments - i.e. lessor(s) in light of application of the new standard. Our
these leases are on the statement of financial position. assessment included:
The application of this standard requires management
to make judgments, estimates and assumptions with • Inspecting terms for a sample of operating lease
regard to lease term and discount rate for calculation of contracts to determine whether the same are in
lease liabilities and consequently, considered as a key scope of IFRS 16 and are also subject to recognition
audit matter. exemption under IFRS 16 for short-term and low
value leases. We also reviewed contracts to identify
whether it is a lease contract, and if so its various
component, lease term, extended period, company
historical experience, rental amount, payment terms,
lease modifications terms, etc.

• Reviewed discount rate used by the Company to
determine the present value of lease liabilities and
right of use assets.

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