Page 50 - Interloop Annual Report 2018-2019

Fiscal year 2018 - 19 at a Employee Stock Option
Glance Pilot Project of Hosiery Plant 5 Scheme (ESOS)

InterloopÍs Listing on the Pakistan The production facility will be LEED Platinum Certified and The Hosiery Plant 5 Pilot Project became operational on We consider our employees to be our most important
Stock Exchange (PSX) will be the most technologically advanced and sustainable January 22, 2019 with 94 modern Italian Knitting Machines. stakeholder and to get their commitment and efforts, we
denim apparel production facility in this part of the world,
This Plant is distinct from the existing facilities because of
firmly believe in providing them conducive environment and
Interloop Limited (ILP) was listed on the Pakistan Stock underpinning Interloop’s Mission. The plant has gone into the New Team Organogram concept. The new structure making them feel a sense of security. The company operates
Exchange (PSX) at a prestigious Gong Ceremony, held on trial production in Q3, 2019 and has been conceived with a is designed to remove extra supervision layers, the an equity settled stock option scheme called ‘Interloop
April 5, 2019 at PSX, Karachi. In the process of Interloop planned output exceeding one million garments per month. Management working in shifts and Knitting Technical and Limited - Employees Stock Option Scheme, 2016’ duly
Limited’s Initial Public Offering (IPO), your Company A fully operational development/sampling center, with 125 Knitting Operations teams merged as one team. approved by the Securities and Exchange Commission of
received wide-spread participation from investment sewing machines from Italy and Japan, with an approx. Pakistan (SECP). The compensation committee evaluates
community ranging from major commercial banks, capacity of 3,400 pieces per day is already operating With the current production of 900,000 pairs of socks the performance and other criteria of employees and
insurance companies, local and foreign institutions, asset successfully. monthly, the Pilot project will be scaled up to a vertically recommends to the Board for grant of options. The Board
management companies, TREC holders and high net worth integrated sustainable manufacturing facility with installed on the recommendation of the committee, on its discretion,
individuals. As per our commitment to environmental conservation, the capacity of 1,280 knitting machines, producing approx. grants recommended options to employees. These options
production facility will: 17.28 million pairs of socks per month. vest after a specified period, subject to fulfillment of certain
Interloop Limited successfully raised Rs. 5,025 million conditions as defined in the scheme. Annual Performance
through the largest private sector Initial Public Offering • Focus on women empowerment with the target to At present, Land measuring 76 acres has been successfully Report on Offer and Administration of the Employees Stock
(IPO), placing it amongst the top 50 companies listed on engage females as 50% of the total workforce procured at an Ideal location on Khurrianwala - Jaranwala Option Scheme (ESOS) - Interloop Limited as at June 30,
the Pakistan Stock Exchange by market capitalization. Book bypass. The location is well planned as our power supply 2019 along with the summary of the options granted till date
building portion of the IPO took place on the 13th and 14th • Plan initiatives such as in-house day care to enable lines from Interloop Energy Division are passing near to this is annexed with this report.
of March, 2019 and was oversubscribed by 1.37 times. The women to continue work after childbirth, if they wish to location and we will be able to supply energy to our newly
general public was offered shares on March 21 - 22, 2019 do so planned division from our own energy division. It is pertinent to mention here that the scheme is not in
at Rs. 46.10 per share. Despite tough market conditions, operation since listing of the Company on PSX, primarily
the IPO was oversubscribed by 1.5 times. We are confident • Plan at least 30% of the area as green space As this unit will be one of its kind, supplying products to due to the fact that the terms of the scheme require to be
that, God willing, the Denim segment will turn out to be even major brands in the world, layout planning and structural consistent with the increased legal compliance for a listed
bigger for us than the Hosiery sector. World’s top brands and • Discharge ZERO hazardous material and waste design is of paramount importance. Meetings are being held entity. The proposal for subject updation in the existing
retailers are our customers and consider us a responsible with top notch architectures and internationally renowned scheme is under review and pending approval from
manufacturing company. We’ll move forward with them in • Reduce the carbon footprint by up to 50% by lean and layout experts to design the building and layout for shareholders of the company and SECP, respectively.
our Hosiery business and believe that many of them will maximising use of daylight, solar energy, insulation, machines. It will be LEED certified (Leadership in Energy and
become our Denim customers bio-mass boilers, heat recovery and energy efficient Environmental Design) and will be a state of the art structure
systems in textile industry in Pakistan. Corporate Governance
Denim Project • Introduce technology and redesign traditional Statement on Corporate and
As part of business diversification & expansion, Interloop is processes to save 35 litres of water per garment – Subsidiary Company
entering into the Denim Apparel Segment and has envisioned approximately 35m litres of water a month The Company has also annexed consolidated financial Financial Reporting Framework
a production facility which will have minimal environmental statements along with separate financial statements in The Directors are pleased to state that the company is
impact, prioritise worker well-being and will maintain a very • Implement new technology aimed at enhancing worker accordance with the requirements of International Financial compliant with the provision of the Code of Corporate
high standard for operational and cost efficiency, ensuring safety, boosting labour productivity and minimising risk Reporting Standards and Companies Act, 2017. Governance as required by the Securities & Exchange
that Interloop continues to serve its customers effectively. of work-related accidents or long term illness Commission of Pakistan (SECP) and the Rule Book of
Following is a brief description of the subsidiary company of Pakistan Stock Exchange. The Board of Directors reviews
A budget of PKR 3.90 billion approx. was allocated for plant
Production Plan and machinery. About 57% of this budget has already been Interloop Limited: company’s strategic decisions and is committed to maintain
Production (Units) / Day consumed in the form of LCs retired, LCs which have been high standards of corporate governance. A formal statement
45000 opened but are yet to be retired and machinery purchased IL Apparel (Private) Limited of compliance as required under the Listed Companies
40000 locally. (Code of Corporate Governance) Regulations, 2017 is
35000 3 This is a wholly owned subsidiary of the company which annexed which forms part of this Annual Report.
30000 looks after the Knitwear & Active-wear business of the
25000 2 We have successfully secured the financing of PKR 2.80 company. The Knitwear Pilot Project at Faisalabad, a Cut to Following is the Directors’ Statement on Corporate and
20000 billion from Habib Bank Limited - Islamic Banking Division at Pack garment manufacturing facility, spread over 6 acres, Financial Reporting framework:
15000 a very competitive rate. Negotiations for a further financing of
10000 PKR 1.00 billion are in process with the Allied Bank Limited - commenced operations in January 2019 and exported the
5000 1 Islamic Banking Division. first shipment in March 2019. IL Apparel plans to put up 1. The financial statements, prepared by the management
0 Q3Í19 Q4Í19 Q1Í20 Q2Í20 Q3Í20 Q4Í20 Q1Í21 a state of the art vertically integrated Knitwear garments of the company, present fairly its state of affairs, the 2018 - 19
result of its operations, cash flows and changes in
manufacturing plant in the new Interloop Apparel Park near
Interloop Limited Pcs/Day the Interloop Industrial Park. 2. Proper books of account of the company have been Annual Report
equity
maintained

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