Page 254 - InterloopAnnualReport2020

NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

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

28.1.1 Movement in the present value of defined
benefit obligation
Opening balance 2,497,894 1,925,612
Expenses recognized in the statement of profit or loss 28.1.2 803,739 527,598
Remeasurement changes chargeable to other
comprehensive income 28.1.4 (3,955) 192,825
Paid during the year (123,699) (131,021)
Balance transferred to Interloop Holdings (Pvt) Limited (17,086) (17,120)
Amount capitalized in Denim Division 3,000 –
Closing balance 3,159,893 2,497,894

28.1.2 Expenses recognized in the statement of
profit or loss
Current service cost 443,483 341,588
Past service cost 7,029 –
Interest cost 353,227 186,010
803,739 527,598

28.1.3 Amounts charged in the statement of profit
or loss are as follows:
Cost of sales 685,308 444,633
Distribution expenses 24,389 14,787
Administrative expenses 94,042 68,178
803,739 527,598

28.1.4 Total remeasurement chargeable to other
comprehensive income
Remeasurement of plan obligation:
Actuarial losses from changes in financial assumptions (224,854) 97,569
Experience adjustments 220,899 95,256
(3,955) 192,825

2020 2019
28.1.5 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

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