Page 183 - InterloopAnnualReport2020

NOTES TO THE UNCONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

The sensitivity analysis of the defined benefit obligation to the significant actuarial assumptions has been
performed using the same calculation techniques as applied for calculation of defined benefit obligation
reported in the balance sheet.

27.1.8 The average duration of defined benefit obligation for the year ended 2020 is 12 years (2019: 11 years).
2020 2019
Note (Rupees ‘000) (Rupees ‘000)
27.2 Deferred income - Government grant
Movement in deferred income is as follows;
Government grant recognized 25.5 42,091
For the year amortization (3,008) –
Current portion of deferred income (24,568)
Closing balance 14,515 –

27.2.1 There are no unfulfilled conditions or other contingencies attaching to these grants. The company did not
benefit directly from any other forms of government assistance. The amortization is offset against relevant
finance charges.
2020 2019
Note (Rupees ‘000) (Rupees ‘000)
28. TRADE AND OTHER PAYABLES
Creditors 850,123 833,328
Accrued liabilities 28.1 1,722,530 2,213,645
Advances from customers 19,007 7,398
Other payables 224,288 153,125
Employees provident fund trust 28.2 3,013 5,020
Withholding tax payable 55,513 78,845
Workers’ profit participation fund 28.3 113,577 285,500
Workers’ welfare fund 43,180 –
3,031,231 3,576,861

28.1 It includes an amount of Rs. 262.691 million (2019: Rs. 209.85 million) relating to infrastructure cess payable
and Rs. 23.43 million (2019: Nil) relating to associate company- Global Veneer Trading Limited.

28.1.1 Honourable Sindh High Court in its decision dated September 17, 2008 declared the imposition of
infrastructure cess before December 28, 2006 as void and invalid. However, the Excise and Taxation
Department filed an appeal before the Honourable Supreme Court of Pakistan. The Honourable Supreme
court of Pakistan had disposed off the appeal with a joint statement of the parties that during the pendency
of the appeal, another law i.e. fifth version came into existence which was not the subject matter of the
appeal hence the case was referred back to High Court of Sindh with right to appeal to Supreme Court. The
Company filed constitutional petition bearing No. 1809 of 2011 before Honourable High Court Sindh. On
May 31, 2011, the High Court of Sindh had granted an interim relief on an application of petitioners on certain
terms including discharge and return of bank guarantees / security furnished on consignment released up to
December 27, 2006 and any bank guarantee / security furnished on consignment released after December
27, 2006 shall be encashed to extent of 50% of the guaranteed or secured amount only with balance kept
intact till the disposal of petition. In case the High Court upholds the applicability fifth version of law and its
retrospective application, the authorities are entitled to claim the amounts due under the said law with the
right to appeal available to petitioner. In the light of interim relief the Company has paid 50% of the amount of
Infrastructure cess. Imports of the Company are being released against 50% payment of Infrastructure cess
to Excise and Taxation Department and furnishing of bank guarantee of balance amount.

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