Page 268 - InterloopAnnualReport2020

NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

49. UTILIZATION OF PROCEEDS FROM INITIAL PUBLIC OFFERING
The Company has carried out IPO for setting up two new projects.

– A socks knitting unit in Khurrianwala, Faisalabad, “Hosiery Division – V”.
– A denim stitching unit in Lahore, “Denim Division”.
2020 2019
(Rupees ‘000) (Rupees ‘000)

Estimated cost of these two projects is as under;
Hosiery Division – V 4,504,000 4,504,000
Denim Division 8,325,000 6,750,423
12,829,000 11,254,423

These projects were planned to finance through issuance of share capital to general public and financing from banks.
For this purpose, the Company carried out a successful IPO last year and had secured islamic long term finance
facilities from banks. During the year, estimated cost of denim division has been revised due to devaluation of PKR
and trial run losses. The increase is being financed through internal cash generation. Detail of the proceeds from IPO
and financing required is classified as under;

2020 2019
(Rupees ‘000) (Rupees ‘000)
Proceeds from IPO 5,024,900 5,024,900
Financing from banks 6,229,523 6,229,523
Internally generated funds 1,574,577 –
12,829,000 11,254,423

The implementation report of the projects as on June 30,2020 is as under;

Denim Division Hosiery Division–V
Amount POs issued Amount POs issued
utilized / LCs utilized / LCs
established
(Rupees ‘000)
Land and building 2,396,364 353,523 270,261 –
Plant and machinery 2,680,059 292,168 736,346 17,086
Power and utilities 898,496 77,623 23,600 –
Computer and IT equipment 177,478 2,994 – –
Miscellaneous expenses 141,941 13,979 9,184 17
Trial run Losses 449,927 – – –
6,744,265 740,287 1,039,391 17,103

266