Page 180 - InterloopAnnualReport2020

NOTES TO THE UNCONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

mentioned in 25.2 above. Markup is charged at the rate of 03 months KIBOR plus 1.3% per annum (2019:
03 months KIBOR plus 1.3% 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.
25.4 The Company has obtained Islamic Long Term Finance Facility - ILTFF for purchase of plant and machinery,
in different tranches. Repayment of loan is to be made in quarterly installments in 10 years including a
grace period of 02 years when financing was availed and is secured against 1st JPP charge of Rs. 3,734
million (2019 : Rs. 3,734 million) and ranking charge of Rs. 2,000 million over land, building and plant and
machinery of the Company. These charges are same on both ILTFF and diminishing musharika facilities from
HBL and is included in aggregate charge mentioned in note 25.1 above. Markup is charged at SBP ILTFF
rate plus 0.75% per annum (2019: SBP ILTFF rate plus 0.75% per annum). Due to Covid 19 global outbreak,
bank deferred the loan installments of different tranches for the period of one year as a relief to the Company.
25.5 Due to the effects of Covid-19 pandemic, State Bank of Pakistan took various steps to support the economy.
SBP introduced a refinance scheme for payment of salaries and wages at subsidized rate of borrowing.
The company has obtained Rs. 666.67 million of the said borrowing from Bank Alfalah Limited, first tranche
disbursed on May 21, 2020. It is secured against a ranking charge of Rs. 1,334 million over the land of
the company. It is repayable in 8 quarterly installments in 2.5 years including a grace period of 06 months
starting from July 2020. Markup is charged at subsidized SBP rate i.e. zero percent plus 0.90 % per annum.
The company has availed this facility at concessional rate of markup with the undertaking not to lay off its
workers/employees at least during three months from the date of first disbursement. The company has
recognised its liability under SBP refinance scheme at its fair value and Rs. 42.091 million is recorded as
deferred income - government grant vide note 27.2.
25.6 The Company has obtained Long Term Finance Facility - LTFF for the expansion of Hosiery Division - V,
Active wear unit, dyeing unit and Energy unit, on different dates from NBP and BOP. Repayment of loans
is to be made in quarterly installments in 10 years including 02 years grace period and is secured against
exclusive charge of Rs. 4,000 million (2019: Nil) and ranking charge of Rs. 2,400 million (2019: Nil) over land,
building and plant & machinery of the Company. Markup is charged at SBP LTFF rate plus 0.75 % per annum
(2019: Nil).
25.7 The Company has obtained demand finance loan for the expansion of Hosiery Division - V, disbursed on
March 05, 2020. Repayment of loan is to be made in quarterly installments in 10 years including 02 years
grace period and is secured against Exclusive charge of Rs. 4,000 million (2019: Nil) over land, building and
plant & machinery of Hosiery Division - V of the Company. This exclusive charge is same on both LTFF and
term finance loan facilities from NBP as mentioned in note 25.6 above. Markup is charged at the rate of 06
months KIBOR plus 0.25 % per annum (2019: Nil).

2020 2019
(Rupees ‘000) (Rupees ‘000)
26. LEASE LIABILITIES
Impact of initial application of IFRS 16 36,179 –
Addition in lease liability 89,471
Accretion of interest 7,649 –
Payments during the year (13,605) –
119,694 –
Less: Current portion shown under current liabilities (17,536) –
102,158 –

26.1 These represents lease contracts for Company warehouses and employees hostel and have estimated
lease terms between 3 to 5 years. These are discounted using incremental borrowing rate of the Company.

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