Page 179 - InterloopAnnualReport2020

NOTES TO THE UNCONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

2020 2019
Note (Rupees ‘000) (Rupees ‘000)

24. RESERVES
Capital reserve
Share premium 24.1 3,791,602 3,791,602

24.1 This represents premium received over and above face value of the shares issued to institutional investors,
high net worth individuals and general public through initial public offering (IPO) and employees of the
Company through employees stock option scheme (ESOS). This reserve can be utilized by the Company
only for the purposes specified in section 81 of the Companies Act, 2017.

2020 2019
Note (Rupees ‘000) (Rupees ‘000)

25. LONG TERM FINANCING
From financial institutions – secured
Diminishing musharika 25.1 3,504,615 2,140,117
Syndicated finance facility 25.2 271,429 542,857
Syndicated finance facility (BMR) 25.3 53,449 96,208
Islamic long term finance facility – ILTFF 25.4 2,431,785 696,754
Refinance for salaries 25.5 624,576 –
Long term financing facility – LTFF 25.6 335,179 –
Demand finance loan 25.7 1,480 –
7,222,513 3,475,936
From related party – unsecured
Interloop Holdings (Pvt) Limited – associated company – 1,400,000
7,222,513 4,875,936
Less: Current portion of long term financing (361,383) (1,247,191)
6,861,130 3,628,745
25.1 These loans have been obtained under diminishing musharika arrangements from various banks on different
dates. The repayment of the loans is to be made in quarterly installments within a maximum period of 06
years including maximum grace period of one and a half years from the date when financing was availed.
These are secured against 1st joint pari passu charge - JPP of Rs. 6,468 million (2019: 6,468 million), ranking
charge of Rs. 5,052 million (2019: 718 million) over fixed assets and specific charge of Rs. 992 million (2019:
1,992 million) on plant and machinery of the Company. These loans carry mark-up ranging from 03 months
KIBOR plus 0.10% to 0.50% per annum (2019: 03 months KIBOR plus 0.10% to 0.50% per annum). Due to
Covid 19 global outbreak, MCB Islamic and HBL deferred the loan installments for the period of one year and
ABL for 06 months on different loans as a relief to the Company.
25.2 The Company has entered into a syndicated long term finance facility arrangement for Rs. 1,900 million
with a consortium of local banks, lead by ABL, for acquisition of certain assets from Kohinoor Mills Limited,
disbursed on April 09, 2011. The repayment of this loan is to be made in quarterly installments in 10 years
including 03 years of grace period and the loan is secured against the 1st specific charge of Rs. 2,933.34
million (2019: 2,933.34 million) over the fixed assets of Interloop Limited (Hosiery Division III). The mark
up is charged at the fixed rate of 5% per annum (2019: 5% per annum). Due to Covid 19 global outbreak,
consortium banks deferred the loan installments for the period of one year as a relief to the Company.
25.3 The Company has also entered into syndicated long term finance facility arrangement for Rs. 300 million
with a consortium of local banks, lead by ABL, for Balancing, Modernization and Replacement (BMR) of
assets purchased from Kohinoor Mills Limited, disbursed on October 29, 2011. The repayment of loan is to
be made in quarterly installments in 10 years including 03 years of grace period and securities are same as

177