Page 244 - InterloopAnnualReport2020

NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

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

10. INTANGIBLE ASSET
Computer Software 10.1 71,022 70,083
Development cost – in progress 104,791 –
175,813 70,083
10.1 Computer Software
Cost:
Opening balance 135,050 98,196
Addition during the year 16,765 36,854
151,815 135,050
Amortization:
Opening balance 64,967 55,785
For the year amortization 10.1.1 15,826 9,182
80,793 64,967
Net book value 71,022 70,083

Amortization rate 20% 20%

10.1.1 Amortization expense relating to intangible assets of Rs. 5,577 thousand (2019: Nil) has been charged in
‘Cost of sales’ and Rs. 10,249 thousand (2019: 9,182 thousand) in ‘Administrative expenses’.

2020 2019
Note (Rupees ‘000) (Rupees ‘000)
11. LONG TERM INVESTMENT
Un–quoted associate – at equity method
IL Bangla Limited 11.1 – 93,540
Others – amortized cost
Term finance certificates – TFCs 11.2 500,000 –
500,000 93,540

11.1 Investment in associated company –
under equity method
Opening balance 93,540 115,456
Share of loss for the year (119,964) (58,485)
Exchange gain 26,424 36,569
(93,540) (21,916)
Closing balance – 93,540

11.2 Term finance certificates - TFCs
This represent investment as fully paid–up, rated, privately placed, perpetual, unsecured, subordinated,
noncumulative, contingent convertible, additional Tire 1, capital eligible 5,000 term finance certificates
(TFCs) of Habib Bank Limited having face value of Rs.100,000/– each aggregating to Rs. 500 million (2019:
Nil). TFCs carry markup at the rate of 3 months KIBOR+ 1.60% per annum payable quarterly in arrears.

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