Page 130 - InterloopAnnualReport2021

NOTES TO THE

FINANCIAL STATEMENTS

For the year ended June 30, 2021

2021 2020
Note (Rupees ‘000) (Rupees ‘000)
26.1.2 Expenses recognized in the statement
of profit or loss
Current service cost 581,638 425,883
Past service cost – 6,326
Interest cost 276,153 351,068
857,791 783,277

26.1.3 Amounts charged in the statement of
profit or loss are as follows:
Cost of sales 33 731,837 670,052
Distribution cost 34 23,531 22,569
Administrative expenses 35 102,423 90,656
857,791 783,277

26.1.4 Total remeasurement chargeable to other
comprehensive income
Remeasurement of plan obligation:
Actuarial (income)/ losses from changes in
financial assumptions 89,583 (222,019)
Experience adjustments (17,930) 219,304
71,653 (2,715)

2021 2020
26.1.5 Principal actuarial assumptions used
Discount rate used for profit and loss charge 9.25% 14.50%
Discount rate for year end obligation 10.25% 9.25%

Salary increase used for year end obligation
Salary increase for FY 2021 N/A 0.00%
Salary increase for FY 2022 10.00% 9.00%
Salary increase for FY 2023 10.00% 9.00%
Salary increase for FY 2024 10.00% 9.00%
Salary increase for FY 2025 10.00% 9.00%
Salary increase for FY 2026 10.00% 9.00%
Salary increase for FY 2027 onward 10.00% 9.00%
Demographic assumption
Mortality rates (for deaths in service) SLIC SLIC
2001-2005 2001-2005
Setback 1 year Setback 1 year
Retirement assumption 60 years 60 years

26.1.6 The expected contribution to defined benefit obligation for the year ending June 30, 2022 will be Rs.
1,097.450 million.

26.1.7 Sensitivity analysis
The calculation of the defined benefit obligation is sensitive to assumptions set out above. The following
table summarizes how the impact on the defined benefit obligation at the end of the reporting period
would have increased / (decreased) as a result of a change in respective assumptions by 100 bps.

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