Page 128 - InterloopAnnualReport2021

NOTES TO THE

FINANCIAL STATEMENTS

For the year ended June 30, 2021

24.7 The Company has obtained demand finance loan for the establishment of Hosiery Division - V & Fabric
Dye House and expansion of Active Wear unit, Energy unit and Spinning Unit, on different dates from
various banks. Repayment of loans is to be made in quarterly installments in 10 years including 02 years
grace period and is secured against exclusive charge of Rs. 4,000 million (2020: Rs. 4,000 million) on
land, building, plant and machinery of Hosiery Division - V and exclusive charge of Rs. 2,400 million
(2020: Nil) on financed assets of Active Wear, Fabric Dye House, Energy Unit - Hosiery Division - III and
Spinning Unit of the Company and the same are included in charges as mentioned in note 24.6 above.
Markup is to be charged at SBP TERF rate plus 0.75% to 1.25 % per annum (2020: 6 months KIBOR plus
0.25% per annum).

24.8 The Company has obtained SBP Temporary Economic Refinance Facility - TERF for the establishment
of Hosiery Division - V & Fabric Dye House and expansion of Active Wear Unit, Energy Unit & Spinning
Unit from two banks BOP and NBP in different tranches. The repayment is to be made in 32 equal
consecutive quarterly installments in 10 years with grace period of 02 years. The loan is secured against
exclusive charge of Rs. 4,000 million on land, building, plant and machinery of Hosiery Division - V
and exclusive charge of Rs. 2,400 million on financed assets of Active Wear, Fabric Dye House, Energy
Unit - Hosiery Division - III and Spinning Unit of the Company and the same are included in charges as
mentioned in note 24.6 and 24.7 above. Maximum markup is charged at SBP rate plus 1.25%.

24.9 The Company has obtained Islamic Temporary Economic Refinance Facility - ITERF to meet CAPEX
requirements from MCB Islamic Bank Limited, first tranche disbursed on Mar 30, 2021. It is secured
against ranking charge of Rs. 800 million on plant & machinery with 25% margin. Repayment of loans is
to be made in quarterly installments in 10 years including 02 years grace period. Markup is charged at
rate SBP plus 0.95% per annum.

24.10 The Company has obtained SBP Islamic Finance Renewable Energy - IFRE for Solar Energy Project from
HBL, disbursed on Nov 25, 2020. The loan is secured against 1st JPP charge of Rs. 494 million over fixed
assets of the Company. The repayment of this loan is to be made in quarterly installments in 06 years
inclusive of 01 year grace period. Markup is charged at fixed rate of 3.75 %.

24.11 The Company has obtained under dimishing musharika vehicles arrangement from Faysal Bank Limited
(FBL) for the purchase of locally manufactured non-commercial vehicles for use of company employees,
disbursed on November 01, 2020. The repayment of the loan is to be made in monthly installments
within a period of 05 years with zero grace period from the date of FOL. These are secured against
charge over vehicle upto Rs. 266.67 million, Hire Purchase Agreement (HPA) will be marked in favor of
FBL in excise and taxation. Original excise files and duplicate key will be in possession of FBL until all
dues are settled/adjusted. This loan carry mark-up of 03 months KIBOR plus 0.5% per annum.

2021 2020
Note (Rupees ‘000) (Rupees ‘000)
25. LEASE LIABILITIES
Impact of initial application of IFRS 16 – 36,179
Opening balance 119,694 –
Transfer upon amalgamation 87,098 –
Addition in lease liability 46,500 89,471
Accretion of interest 18,068 7,649
Payments during the year (50,297) (13,605)
Termination during the year (1,019) –
220,044 119,694
Less: Current portion shown under current liabilities 30 (67,075) (17,536)
152,969 102,158

25.1 These represents lease contracts for Company manufacturing facility, warehouses, and employees
hostel and have estimated lease terms between 3 to 5 years. These are discounted using incremental
borrowing rate of the Company.

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