Page 36 - InterloopAnnualReport2021

CHAIRMAN'S REVIEW REPORT

Dear Shareholders, I am delighted to present Almighty, we are pretty much hopeful to get new
performance review of Interloop Limited (‘the successes as we have a number of factors in our
Company’ or ‘ILP’) and the role played by the Board favor; the strength of our balance sheet, our strong
of Directors (‘the Board’) in achieving the objectives of cash generation, our expertise and most of all, the
the Company, for the year ended June 30, 2021. dedication and will of our employees.

ECONOMIC OUTLOOK ROLE OF THE BOARD OF DIRECTORS

The economy posted a fairly strong expansion in During the pandemic, the Board remained engaged
the fiscal year 2021 (July 2020–June 2021), due to with the management which helped it to meet
rebounding domestic demand and healthier export the exceptional and unforeseen challenges. The
growth. Turning to FY 2022, conditions seem to continuous monitoring of the Board throughout the
be subdued in the first quarter as the loosening period and the deliberations to the management
of lockdown restrictions in late June resulted in an were cardinal in achieving all the targets and
increase in new COVID-19 cases. Consequently, some overcoming the pandemic impacts. The Board
key economic regions implemented partial lockdowns has performed remarkably well even through the
in July and August, which should be weighing on impacts of the pandemic have been devastating.
activity somewhat. Furthermore, export growth eased The Company successfully steered through the
notably in July, likely due to supply chain disruptions uncertain times with emphasis on health and safety
amid renewed COVID-19 restrictions across the yet, ensuring business continuity, on the back of
region. That being said, fiscal support measures guidance from the Board of Directors.
outlined in this fiscal year’s budget should be stoking
domestic demand. ILP has a seven member Board of Directors, which
comprises individuals with diverse backgrounds,
Economies all over the world including Pakistan have having core competencies, knowledge, and expertise
been facing challenges posed by new waves and relevant to the business of the Company. All Board
variants of the COVID-19 pandemic but Pakistan’s Members and the Leadership team of the Company
economy has witnessed V-shaped restoration. The are humbled by your overwhelming response and are
International Monetary Fund (IMF) has acknowledged determined to deliver as per your expectations. The
Pakistan’s stronger economic activity and kept the Board provides strategic direction to the management
global growth forecast largely unchanged at six and fulfills its fiduciary responsibilities with a sense of
percent for the current year and 4.9pc for the next commitment.
year. GDP growth in FY 2022 (July 2021–June 2022)
is set to get slow following FY 2021’s rebound. Fixed The Board has constituted the Boards’ Audit
investment and private consumption growth should Committee, Human Resource & Remuneration
taper as ongoing pandemic-related concerns and Committee, Nomination Committee, and Risk
a moderating global economic recovery weigh on Management Committee. These committees
domestic demand. Downside risks stem from new provided valuable input and assistance to the Board.
variants of the virus, rising debt, and geopolitical The Audit Committee particularly focuses on the
tensions. detailed review of financial statements and internal
controls. These sub-committees held meetings and
BUSINESS PERFORMANCE reported to the Board as per stipulations of the
Listed Companies (Code of Corporate Governance)
Despite challenging business environment, your
Regulations, 2019. Best practices of corporate
Company’s results of operations, financial position, and
governance having been embedded into the
net assets are indicative of a solid financial condition.
Company’s culture to maintain the highest level of
The current financial year was the most successful year
professionalism and business conduct.
as the Company was able to achieve its highest ever
sales figure and reported the net sales of Rs. 54.962
An annual evaluation of performance of the Board,
billion as compared to Rs. 36.303 billion during last
members of the Board, and its Committees was carried
year. Further, net profit after tax increased from Rs.
out with the help of a formal and effective mechanism.
1.796 billion to Rs. 6.292 billion, up by 250.23%.
Based on the feedback received through this mechanism
This was mainly due to the post lockdown effect and
overall role of the Board has been found to be effective.
opening of global markets. This net profit translated
The Board has fulfilled all its mandatory responsibilities
into Earnings per Share (EPS) of Rs. 7.21 as against Rs.
including ensuring compliance with all legal and regulatory
2.06 of last year.
requirements for the Company.
The Company is investing a substantial amount to
I would like to share that all the Directors, including
increase its reserve base and with the Grace of Allah
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