Page 262 - InterloopAnnualReport2020

NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

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

39. OTHER INCOME
Income from financial assets
Interest on loan to Metis Internation Pvt. Limited 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 Sale 68 –
99,001 14,444

40. FINANCE COST
Mark up on:
Short term borrowings 648,711 555,942
Long term financing 381,138 315,730
Interest on workers’ profit participation fund 29.3 2,815 21,425
Lease finance charges 19,916 14
Bank charges and commission 148,203 106,149
1,200,783 999,260

41. TAXATION
Current 41.1 327,066 226,260
Prior years (2,559) –
324,507 226,260

41.1 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. Therefore, provision for deferred tax is
not required. Reconciliation of tax expense and product of accounting profit multiplied by the applicable tax
rate is also not required in view of presumptive taxation.

41.2 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 group 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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