Page 121 - InterloopAnnualReport2021

NOTES TO THE

FINANCIAL STATEMENTS

For the year ended June 30, 2021

2021 2020
(Rupees ‘000) (Rupees ‘000)
9.2 Term finance certificates - TFCs
Habib Bank Limited 500,000 500,000
Transferred to short term investments (500,000) –
– 500,000

9.2.1 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
(2020: Rs. 500 million). TFCs carry markup at the rate of 3 months KIBOR+ 1.60% per annum payable
quarterly in arrears.
2021 2020
Note (Rupees ‘000) (Rupees ‘000)
10. LONG TERM LOANS
Considered good - Secured
Loans to employees 10.1 131,788 96,233
Loan to director 10.2 12,885 17,590
144,673 113,823

10.1 Loans to employees
Opening balance 142,721 96,795
Add: transfer upon amalgamation 7,155 –
Add: disbursement made during the year 232,683 120,021
382,559 216,816
Less: amount received during the year (139,830) (74,095)
242,729 142,721
Less: receivable within twelve months 15 (110,941) (46,488)
131,788 96,233

10.1.1 These loans are given to employees as per approved policy of the Company and are secured against
employees retirement benefits.

2021 2020
Note (Rupees ‘000) (Rupees ‘000)
10.2 Loan to director
Opening balance 22,117 25,750
Less: amount received during the year (4,616) (3,633)
17,501 22,117
Less: receivable within twelve months 15 (4,616) (4,527)
12,885 17,590

10.2.1 This represents loan paid to executive director of the Company as per house building finance policy of
the Company. Under the first policy, home ownership grant of Rs. 2.5 million and mortgage assistance
of Rs. 23.25 million. Tenure of the home ownership grant and mortgage assistance is for a period of six
years. Mortgage assistance is repayable in 60 equal monthly installments along with markup thereon.

119