Page 58 - InterloopAnnualReport2020

CHAIRMAN’S REVIEW REPORT

I am pleased to present performance review of Interloop Limited providing employment opportunities, earning foreign exchange
and the role played by the Board in achieving the objectives of and dealing with multiple vendors for buying of raw materials
the Company, for the year ended June 30, 2020. as well as other services, directly or indirectly, and by investing
in the community. Keeping in view our Mission, we pursue a
Economic Outlook Triple-P bottom line Sustainability Policy covering People, Planet
& Prosperity. Interloop Limited is a business for Purpose and is
now recognized as one of the most Responsible Manufacturer
The emergence of COVID-19 pandemic has caused major around the globe.
disruptions to economic activities around the world including
Pakistan. For Pakistan, this has come at a time when the
country was heading towards some economic stability. The Role of the Board of Directors
pandemic has dampened the Country’s economic growth
which demonstrated its worst performance in past many (68) Despite the challenging macro-economic situation and stiff
years, posting a negative growth of -0.4% in FY20. The drop in global competition amid COVID-19 pandemic, the Company has
domestic and global demand compounded the strain on the maintained its market share during these testing times, through
economy. relentless efforts by its Directors. The Board has played an effective
role in devising an appropriate strategy for the Company to attain
Monetary and Fiscal policy interventions, such as policy rate its objectives, particularly during this unfortunate outbreak of
reduction, payroll re-financing, and announcement of stimulus the Novel Coronavirus. The Board has performed its duties and
package have been made by the State Bank of Pakistan and responsibilities diligently and has contributed effectively in guiding
Government, to ensure continuity and provide liquidity to the Company in all its strategic affairs. The Board also played a
cushion growth and employment. key role in monitoring the management performance and focus
on major risk areas. The Board was fully involved in the strategic
Moreover, the phased lifting of lockdown restrictions along with planning process and augmenting the vision of the Company. The
declining new COVID-19 cases has raised hopes for normalized Board recognizes that a well defined Corporate Governance system
business activity in the coming months. If this continues is vital for enhancing corporate accountability, and is committed to
smoothly, it is expected that the economy will resume its growth sustain high standards of Corporate Governance.
momentum that will boost the demands/orders. However, the
Global situation is still uncertain and debate exists about what Interloop Limited has a seven-member Board of Directors, which
form the global economic recovery from COVID-19 will look like comprises of individuals with diverse backgrounds, having core
and how long it will take? It has therefore become even more competencies, knowledge and expertise relevant to the business
important to leverage every opportunity of cost optimization and of the Company. Its sub-committees i.e., Audit Committee,
productivity gains. Human Resource & Remuneration Committee and Nomination
Committee assist the Board in executing its responsibilities.
Business Performance These sub-committees held meetings and reported to the Board
as per stipulations of the Listed Companies (Code of Corporate
Governance) Regulations, 2019.
Despite some slight downward trends in figures, the Company’s
results of operations, financial position and net assets are I would like to share that all the Directors, including Independent
indicative of a solid financial condition. The Company was Directors, fully participated and contributed in the decision-
able to successfully absorb severe shocks as a result of the making process of the Board. The Board performed its duties and
pandemic and achieved net sales of Rs. 36.303 billion as responsibilities diligently, inter alia, by:
compared to Rs. 37.478 billion during last year. However, net
profit after tax declined from Rs. 5.195 billion to Rs. 1.796 1. Ensuring that mission, vision and values of the Company
billion, down by 65.42%. This was mainly due to COVID-19 are being followed;
pandemic which resulted in country wide lock down and also 2. Effectively guiding the Company in its strategic affairs;
affected Company’s sales due to lock down in the international 3. Setting annual goals and targets for the Management;
markets. This net profit translated into Earnings per Share (EPS) 4. Overseeing Management’s performance and focusing on
of Rs. 2.06 as against Rs. 6.67 of last year. major risk areas;
5. Evaluating significant Investments;
It is imperative to mention here that the Company continued to 6. Ensuring high standards of Corporate Governance to
play an important part in the economic growth of Pakistan by
preserve stakeholders’ value;

56