Page 120 - InterloopAnnualReport2021

NOTES TO THE

FINANCIAL STATEMENTS

For the year ended June 30, 2021

2021 2020
Note (Rupees ‘000) (Rupees ‘000)
8. INTANGIBLE ASSETS
Computer software 8.1 209,623 67,168
Development cost - in progress – 104,291
209,623 171,459
8.1 Computer Software
Cost:
Opening balance 146,932 130,994
Addition during the year 185,730 15,938
Transfer upon amalgamation 4,883 –
Write-off during the year (36,486) –
301,059 146,932
Amortization:
Opening balance 79,764 64,833
Transfer upon amalgamation 1,480 –
For the year amortization 8.2 18,329 14,931
Adjustment (8,137) –
91,436 79,764
Net book value 209,623 67,168

Amortization rate 20% 20%

8.2 Amortization expense relating to intangible assets of Rs. 2.118 million (2020: Rs. 5.577 million) has been
charged in ‘Cost of sales’ and Rs. 16.211 million (2020: Rs. 9.354 million) in ‘Administrative expenses’.

2021 2020
Note (Rupees ‘000) (Rupees ‘000)

9. LONG TERM INVESTMENTS
Unquoted equity - at cost
Subsidiary company
IL Apparel (Pvt) Limited 2 – 1,045,000
Associated company
IL Bangla Limited 9.1 – 308,735
Others - at amortized cost
Term finance certificates (TFCs) 9.2 – 500,000
– 1,853,735
9.1 IL Bangla Limited
Cost of investment 9.1.1 308,735 308,735
Reversal of impairment loss 70,814 –
379,549 308,735
Disposed off during the year (379,549) –
– 308,735

9.1.1 This represent Company’s investment in 31.825 million ordinary share of BD Takas 10/- each, equity held
31.61%. However, the Company in its Extra Ordinary General Meeting held on December 10, 2020, after
giving due consideration, had approved the sale of its investment “IL Bangla Limited”. The decision was
taken keeping in mind the best interest of the shareholders.

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