Page 182 - InterloopAnnualReport2020

NOTES TO THE UNCONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

2020 2019
(Rupees ‘000) (Rupees ‘000)

27.1.3 Amounts charged in the statement of
profit or loss are as follows:
Cost of sales 670,052 440,739
Distribution expenses 22,569 14,368
Administrative expenses 90,656 67,726
783,277 522,833

27.1.4 Total remeasurement chargeable to
other comprehensive income
Remeasurement of plan obligation:
Actuarial (income)/ losses from changes
in financial assumptions (222,019) 97,569
Experience adjustments 219,304 95,256
(2,715) 192,825

2020 2019
27.1.5 Principal actuarial assumptions used
Discount rate used for profit and loss charge 14.50% 10.00%
Discount rate for year end obligation 9.25% 14.50%
Salary increase used for year end obligation
Salary increase for FY 2020 N/A 14.00%
Salary increase for FY 2021 0.00% 14.00%
Salary increase for FY 2022 9.00% 14.00%
Salary increase for FY 2023 9.00% 14.00%
Salary increase for FY 2024 9.00% 14.00%
Salary increase for FY 2025 9.00% 14.00%
Salary increase for FY 2026 onward 9.00% 14.00%
Demographic assumption

Mortality rates (for deaths in service) SLIC SLIC
2001–2005 2001–2005
Setback 1 year Setback 1 year
Retirement assumption 60 years 60 years

27.1.6 The expected contribution to defined benefit obligation for the year ending June 30, 2021 will be Rs. 825.136
million.

27.1.7 Sensitivity analysis
The calculation of the defined benefit obligation is sensitive to assumptions set out above. The following
table summarizes how the impact on the defined benefit obligation at the end of the reporting period would
have increased / (decreased) as a result of a change in respective assumptions by 100 bps.
2020 2019
(Rupees ‘000) (Rupees ‘000)
Discount rate + 100 bps (2,792,109) (2,232,532)
Discount rate – 100 bps 3,529,169 2,781,833
Salary change + 100 bps 3,535,318 2,785,405
Salary change – 100 bps (2,780,665) (2,225,007)

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