Page 165 - Interloop Annual Report 2018-2019

DIRECTORS’ CONSOLIDATED

REPORT

The Directors are pleased to present the consolidated audited results of Interloop Limited (“the holding company”) and its
subsidiary i.e., M/s IL Apparel (Private) Limited, for the year ended June 30, 2019. The Holding Company has annexed its
consolidated financial statements along with its separate financial statements in accordance with the requirement of International
Financial Reporting Standards and as required under section 228 of the Companies Act, 2017.
The textile sector in Pakistan face a tougher playing field in the region when compared with the textile sector in other countries.
The “cost of doing business” in the country is relatively higher on region-wide basis. Despite seeing one of the most aggressive
monetary tightening policies in Asia since 2018, the Country’s inflation rose to a five year high of 8.8% on year-on-year basis
in April 2019 as compared to 9.4% in the previous month and 3.7% during corresponding month of last year. Similarly, despite
over 30 percent rupee devaluation, country’s overall textile sector exports declined 1.42 percent to $13.329 billion in the year
ended June 30, 2019. Knitwear grew 7.0 percent to $2.89 billion during the year 2018/2019 as compared with $2.711 billion
in the preceding year. Likewise, the export of readymade garments exhibited 3.0 percent growth to $2.65 billion in the year as
against $2.577 billion in the preceding year.
However, by the grace of God Almighty, during the financial year ended June 30, 2019, the Group earned a net profit after tax
of PKR 5,061 million, compared to net profit of PKR 3,735 million earned during the preceding financial year. The operational
and financial performance of group is portraying improvements inspite of cut-throat competition and high operating costs. The
current order book of the parent company is healthy and it has confirmed orders up to December 2019 to run the plant(s) at
reasonably good capacity. The Apparel business is performing well along with a newly added division of denim in the current
year. The management is confident that the parent company as well as its subsidiary will be able to build on their performance,
going forward. The Group is striving to be one of the leading players in the global businesses and planning to expand its
footprint in Pakistan as well. The Group is expected to achieve higher production, sales volume and, by the grace of God, will
achieve even better financial results during the ensuing year.

The Directors’ Report giving a detailed analysis of the performance of the Interloop Limited and its subsidiary i.e., M/s IL Apparel
(Private) Limited, for the year ended June 30, 2019, has also been presented separately.

ON BEHALF OF THE BOARD

Faisalabad Navid Fazil Musadaq Zulqarnain
September 23, 2019 Chief Executive Officer Director / Chairman

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Interloop Limited Annual Report

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