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INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF INTERLOOP

LIMITED

Report on the Audit of Financial Statements

Opinion
We have audited the annexed financial statements of Interloop Limited (“the Company”), which comprise the statement
of financial position as at June 30, 2021, the statement of profit or loss, the statement of comprehensive income, the
statement of changes in equity, the statement of cash flows for the year then ended and notes to the financial statements
including a summary of significant accounting policies and other explanatory information, and we state that we have
obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the
purpose of the audit.

In our opinion and to the best of our information and according to the explanations given to us, the statement of financial
position, the statement of profit or loss, the statement of comprehensive income, the statement of changes in equity and
the statement of cash flows together with the notes forming part thereof conform Accounting and Reporting Standards
as applicable in Pakistan, and, give the information required by the Companies Act, 2017 (XIX of 2017), in the manner so
required and respectively give a true and fair view of the state of the Company’s affairs as at June 30, 2021 and of the
profit, total comprehensive income, the changes in equity and its cash flows for the year then ended.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with the International Ethics
Standards Board for Accountants’ Code of Ethics for Professional Accountants as adopted by the Institute of Chartered
Accountants of Pakistan (the Code) and we have fulfilled our other ethical responsibilities in accordance with the Code. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Following are the Key Audit Matter(s):

S. No Key Audit Matter(s) How the Matter was addressed in audit
1. Borrowings: (Refer notes 24 and 29 to the financial statements)
The Company has significant amounts of borrowings Our audit procedures included:
from Banks and other financial institutions amounting
to Rs. 30.289 billion, being 75% of total liabilities, as • Review of loan agreements and facility letters
at reporting date. to ascertain the terms and conditions of
repayment, rates of markup used and disclosed
Given the significant level of borrowings, finance by management for finance costs and to ensure
costs, significant gearing, the disclosure given by the that the borrowings have been approved at
management in financial statements and compliance appropriate level.
with various loan covenants, this is considered to be a
key audit matter. • Verification of disbursement of loans and
utilization on sample basis. Review of documents
for charge registration with regulator- SECP.
• Verification of repayments made by the Company
during the year on sample basis to confirm that
repayments are being made on time and no
default has been made.

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