Page 47 - Interloop Annual Report 2018-2019

CHAIRMANÍS REVIEW

It is a matter of great privilege for Role of the Board of Directors
me to present performance review Despite the challenging macro-economic challenges and 3. Setting annual goals and targets for the Management
of Interloop Limited and the role stiff global competition, the company has increased its 4. Overseeing Management’s performance and focusing
on major risk areas
played by the Board in achieving the profitability through unrelenting efforts by the directors. The 5. Evaluating significant Investments
Board has played an effective role in devising an appropriate
objectives of the Company for the strategy for the company to attain its objectives. 6. Ensuring high standards of Corporate Governance to
year ended June 30, 2019. Interloop Limited has seven-member Board of Directors preserve stakeholders’ value
which comprises of individuals with diverse backgrounds, Furthermore, all significant issues throughout the year
Economic Outlook having core competencies, knowledge and expertise relevant were presented before the Board or its committees, and
particularly, all related party transactions of the company
to the business of the company. The Board is assisted by
its sub-committees i.e., Audit Committee, Human Resource were approved by the Board on the recommendation of
During FY19 challenges to the macro-economy of Pakistan & Remuneration Committee and Nomination Committee. the Audit Committee. The Audit Committee and Human
have continued to persist. Fiscal deficit further deteriorated These sub-committees held meetings and reported to the Resources and Remuneration Committee met regularly to
and while the current account gap relatively improved, its Board as per stipulations of the Listed Companies (Code of strengthen the functions of the Board. The Board carried out
sustainability remained a concern. The CPI on a YoY basis Corporate Governance) Regulations, 2017. its self-evaluation and identifed potential areas for further
also soared by 8.89% in June, 2019 over June, 2018 as improvement, in line with global best practices.
compared to 5.21% a year earlier. Pakistan’s GDP growth I would like to share that all the Directors, including
moderated to 3.3% during FY19 after achieving a 13 year Independent Directors, fully participated and contributed Finally, I would like to appreciate the valuable contributions
high growth of 5.8% in FY18. With stabilization policies in in the decision-making process of the Board. The Board made by the Chief Executive Officer, Management, Staff
place and the economy moving along the reforms agenda times and Interloop was able to successfully raise PKR 5.02 performed its duties and responsibilities diligently, inter alia, Members and Workers in achieving the company’s
as a result of IMF program, the country’s macroeconomic billion, the highest by any private company in the history of by: objectives. I would also like to express gratitude to our Board
indicators are expected to slowly revert to a stable trajectory. Pakistan, placing Interloop amongst the top 50 companies of Directors, Shareholders, Customers, Bankers, Regulatory
In this process, however, the real GDP growth is likely to listed on PSX, by market capitalization. 1. Ensuring mission, vision and values of the company are Authorities and other Stakeholders for their continued
remain contained. being followed support.
I am also pleased to share that, by the grace of God, despite 2. Effectively guiding the Company in its strategic affairs
Textile industry continues to be the largest employer in the unfavorable economic and market conditions, primarily
manufacturing sector, however, industry has been struggling impacted by deteriorating macro-economic indicators,
to cope up with the multiple challenges that are adversely higher interest rates & increased inflationary pressure,
impacting the progress both on the external and internal during the year under review your company has been able
fronts. The textile industry continues to face stiff competition to achieve a Sales Turnover of Rs. 37.478 billion compared
from China, India, Bangladesh, Cambodia and other to Rs. 31.139 billion during last year. The net profit after tax
emerging countries in the region. With the adjustment in of the company is Rs. 5.195 billion compared to Rs. 3.886
exchange rate & rationalization of energy rates, it is expected billion of last year, that is an increase of 33.69% over last
that overall situation for the Textile industry will improve. year, driven by our better planning, efficient operations, and
Musadaq Zulqarnain
Investment for capacity enhancement and modernization favorable exchange rate. This accomplishment highlights Faisalabad: Musadaq Zulqarnain
Chairman
can result in substantial growth in textile exports and create the trust placed in us by our customers and the persistent September 23, 2019 Chairman
additional jobs in the industry. efforts and commitment of our people – our most valuable
asset.
Business Performance
This net profit translated into Earning per share (EPS) of Rs.
I would like to congratulate Interloop Limited on completing 6.67 per share against Rs. 5.10 of last year.
27 years of successful operations. During these years, the
company has created consistent value for all stakeholders Furthermore, the Company continued to play an important
through impactful geographical presence, proud history part in the economic growth of Pakistan by providing
of customer trust amid simultaneously contributing to the employment opportunities, earning foreign exchange and
socio- economic development of Pakistan. dealing with multiple vendors for buying of raw materials
as well as other services, directly or indirectly and by
Interloop Limited was listed on the Pakistan Stock Exchange investing in community. Keeping in view our Mission, we
(PSX) at a prestigious Gong Ceremony, held on April 5, pursue a Triple-P bottom line Sustainability Policy covering
2019 at PSX, Karachi. In the process of Interloop Limited’s People, Planet & Prosperity. Interloop Limited is a business
Initial Public Offering (IPO), Book Building was completed for Purpose and is now recognized as one of the most
on March 13 - 14, 2019. General public was offered shares Responsible Manufacturer around the globe. 2018 - 19
Interloop Limited tough market conditions, the IPO was oversubscribed by 1.5 Annual Report
on March 21 - 22, 2019 at Rs.46.10 per share. Despite

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