Page 133 - InterloopAnnualReport2021

NOTES TO THE

FINANCIAL STATEMENTS

For the year ended June 30, 2021

2021 2020
Note (Rupees ‘000) (Rupees ‘000)
29. SHORT TERM BORROWINGS
From banking companies - Secured
Under mark up arrangements
ERF - II 15,857,000 13,870,000
FAPC - own source 2,052,000 –
FE-25 Export 29.1 – 484,861
Running finance/musharaka 1,727,066 –
19,636,066 14,354,861

29.1 These are secured against first Joint Pari Passu (JPP) charge of Rs. 44,395 million (2020: Rs. 37,066
million) and ranking charge of Nil (2020: Rs. 1,334 million) over all present and future current assets,
further secured by 2nd JPP ranking charge of Rs. 6,000 million (2020: Rs. 6,000 million) over all present
and future plant and machinery of the Company in favor of all the lending banks. The total limits available
to the Company for short term borrowings from all the banks are amounting to Rs. 33,296 million (2020:
Rs. 28,796 million).

Mark up is charged as;
ERF - II SBP Rate + 0.25 to 0.30 % per annum (2020: SBP Rate + 0.25 to
1.00 % per annum)

FAPC - own source 3 months Kibor + 0.15 to 0.25% per annum
Running finance/musharaka 1 to 3 months Kibor + 0.10 to 0.25% per annum

2021 2020
Note (Rupees ‘000) (Rupees ‘000)
30. CURRENT PORTION OF NON CURRENT LIABILITIES
Long term financing 24 2,438,602 361,383
Lease liabilities 25 67,075 17,536
Deferred income - Government grant 26.2 45,143 24,568
2,550,820 403,487

31. CONTINGENCIES AND COMMITMENTS
31.1 Contingencies
31.1.1 The Punjab Revenue Authority has created a demand of an amount of Rs. 29.931 million in respect
of an alleged default on withholding of provincial sales tax on account of various transport services
received by the Company during the period from March 01, 2015 to May 31, 2016 along with default
surcharge and penalty under Punjab Sales Tax on Services Act, 2012, rejecting the exemption claim of
the taxpayer company. The Company being aggrieved, filed an appeal before Commissioner (Appeals)
Punjab Revenue Authority (PRA) which is pending adjudication at the terminal date.

The Company has not made any provision against the above demand as the management is confident
that the ultimate outcome of the appeal would be in favor of the Company, inter alia on the basis of the
advice of the tax consultant and relevant law and facts.

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