Page 181 - InterloopAnnualReport2020

NOTES TO THE UNCONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

26.2 The future minimum lease payments to which the Company is committed under the agreements will be due
as follows:

2020
Not later Later than one More that Total
than one year and but three years
year later than
three years
(Rupees ‘000)
Future minimum lease payments 30,814 104,899 21,120 156,833
Less: Un–amortized finance charges (13,278) (23,118) (744) (37,139)
Present value of future minimum
lease payments 17,536 81,782 20,376 119,694

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

27. DEFERRED LIABILITIES
Staff retirement gratuity 27.1 3,126,168 2,482,623
Deferred income – Government grant 27.2 14,514 –
3,140,682 2,482,623

27.1 Staff retirement gratuity
General description
This represents an unfunded gratuity scheme which provides termination benefits for all employees of the
Company who attain the minimum qualifying period. The latest actuarial valuation of the defined benefit plan
was carried out as at June 30, 2020 using the Projected Unit Credit (PUC) Actuarial Cost Method. Details of
the defined benefit plan are as follows:
2020 2019
Note (Rupees ‘000) (Rupees ‘000)
27.1.1 Movement in the present value of
defined benefit obligation
Opening balance 2,482,623 1,925,612
Expenses recognized in the statement of profit or loss 27.1.2 783,277 522,833
Remeasurement of plan obligation
chargeable to other comprehensive income 27.1.4 (2,715) 192,825
Balance transferred to Interloop Holdings (Pvt) Limited (17,086) (17,120)
Balance transferred to IL Apparel (Pvt) Limited – (10,506)
Balance transferred to denim division 3,000 –
Paid during the year (122,931) (131,021)
Closing balance 3,126,168 2,482,623

27.1.2 Expenses recognized in the statement of profit or loss
Current service cost 425,883 336,823
Past service cost 6,326 –
Interest cost 351,068 186,010
783,277 522,833

179