Page 189 - InterloopAnnualReport2020

NOTES TO THE UNCONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

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

38. OTHER INCOME
Income from financial assets
Interest on loan to Metis International (Pvt) Ltd 1,356 7,211
Profit on term deposit receipts (TDRs) 36,175 1,437
Profit on term finance certificates (TFCs) 55,606 –
Interest on receivables from IL Bangla Limited 5,796 5,796

Income from non–financial assets
Scrap sales 68 –
99,001 14,444

39. FINANCE COST
Mark up on:
Short term borrowings 601,984 552,483
Long term financing – net 381,056 315,730
Interest on workers’ profit participation fund 28.3 2,815 21,425
Interest on lease liabilities 7,649 14
Bank charges and commission 143,658 106,055
1,137,162 995,707

40. TAXATION
Current year 40.1 322,056 226,216
Prior year (2,628) –
319,428 226,216

40.1 Provision for deferred tax is not required as the Company is chargeable to tax under section 154 and 169
of the Income Tax Ordinance, 2001 and no temporary differences are expected to arise in the foreseeable
future. Reconciliation of tax expense and product of accounting profit multiplied by the applicable tax rate is
not required in view of presumptive taxation.

40.2 Section 5A of the Income Tax Ordinance, 2001 imposes tax at the rate of 5% on every public company other
than a scheduled bank or Modaraba, that derives profits for a tax year but does not distribute at least 20%
of accounting profit through cash dividend within six months of the end of said tax year.

The Company has distributed sufficient cash dividend, for the year ended June 30, 2019, which complies
with the above stated requirements. Accordingly, no provision for tax on undistributed profits has been
recognized in the financial statements for the year ended June 30, 2020.

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