Page 51 - InterloopLimitedSR2020

ENHANCING ECONOMIC

IMPACTS Eco����c Va��� �i�t����te� 2020 Eco����c Va��� �i�t����te� 2019

(PKR in Millions) (PKR in Millions)
23,023 22,755
Target 2021 Performance till 2020

Direct economic value
to be generated by 2021 Direct economic value
achieved in 2020
US$ 325 million
(PKR 54,000 million) (PKR 36,945 million)

175 350
1,290 544
9,523
7,898
2879 3,591
The COVID-19 pandemic outbreak Policy rate reduction, payroll re- in the coming years. However, as Operating cost Payment to government Operating cost Payment to government
has caused many disruptions and financing, and debt relief package the situation is getting better, we Employee wages and benefilts Community Investments Employee wages and benefilts Community Investments
pushed the world economy into a was announced by the state bank at Interloop are confident to keep Payment to providers of capital Payment to providers of capital
recession. Pakistan was affected and government to provide liquidity, exploring opportunities and adjust
severely at the time when the ensuring business continuity, and our business practices in the New and indirect economic impacts in such practices. In addition, our internal Defined Benefit
economic indicators were showing securing employment. However, Normal, to deliver sustained economic the shape of return to investors, audit department carries out internal
signs of recovery. The pandemic has disruption in the global supply chain performance. payments to suppliers, employees, audit of all activities and reports to the Plans
resulted in negative growth, loss of along with cancellation of orders by government, and creation of livelihood Board Audit Committee. The Board
jobs, lockdowns leading to the closure clients on account of lockdowns, and Economic performance at Interloop opportunities in the supply chain along Audit Committee reviews the report Interloop offers market competitive
of production plants, and pushing halt of economic activities severely is guided by our mission, vision and with socioeconomic development of and corrective action is taken as salaries and benefits to its
millions to poverty. A very slow affected Interloop’s profitability. values, along with targets set by the the surrounding communities. The per requirement. During the year, all workforce and regularly monitors
recovery has been projected in 2021 management for delivering exceptional Board defines targets for economic operations were assessed for risks the remuneration for relevance and
making it a difficult time for business The pandemic has changed the way results, with high-quality products performance. Goals and targets related to corruption and no incidence compliance. Apart from salaries,
and the masses. we work & live and is expected to exceeding customers’ expectations. may be annual, or in the case of of corruption was recorded at Interloop offers defined benefit in
affect the global economies’ growth Our operations have both direct expansions, acquisitions and new Interloop. The economic performance the form of gratuity to its employees
business ventures, may be targeted is periodically reviewed against the set where no contribution is required
Direct Economic Value Generated and Distributed over a longer-term. financial targets at Board meetings from employees. Interloop does not
and corrective measures are taken maintain a separate fund for gratuity
The Chief Executive Officer along through process improvement and and the liability for defined benefit
2020 2019 2018 2017 2016 2015
with the Management Committee is cost savings to meet the defined plan is calculated on the basis of
Rupees in million responsible for underlying activities targets. actuarial valuation. Interloop also
Economic Value Generated to meet the targets. At Interloop offers contributory benefit in form of
Revenues* 36,945 37,524 31,169 26,550 26,426 24,213 while pursuing the targets, we have Interloop’s financial performance provident fund to its employees. A
the policy to procure maximum raw was significantly affected due to separate fund is maintained where
Economic Value Distributed
material, process material, and other the COVID-19 pandemic outbreak. Interloop contributes 7.5% while
Operating Cost 23,023 22,755 19,513 16,851 16,585 16,218 available products/services locally, to The revenue for the year was PKR employees contribute 7.5% to 12.5%
Employee Wages And Benefits 9,523 7,898 6,853 5,778 5,016 4,225 strengthen local suppliers and create 36,945 million compared to PKR of basic salaries. The participation
Payment To Providers Of Capital 2,879 3,591 1,428 1,377 1,045 1,703 employment opportunities. 37,524 million in 2019, showing a in the contributory benefit plan is
1.54% decline. However, the net profit voluntary. The liability for defined
Payment To Government 1,290 544 426 381 582 347 We have zero-tolerance for corruption declined considerably to PKR 1,796 benefit plan was PKR 3,126.17 million
Community Investments 175 350 105 200 160 87 in our operations as well as in million compared to 5,195 million in in 2020 compared to PKR 2,482.62
Economic Value Retained 55 2,386 2,844 1,963 3,038 1,633 our relationship with our business 2019 showing a 65% decline. Detailed million in 2019.
partners. The Code of Conduct clearly information on financial performance
*Revenues as per the requirement of GRI Economic Performance 201:2016 disclosure 201-1 which restrains the employees to enter in can be found in the financial statement
requires inclusion of revenue from financial investments and sales of assets. section of the Annual Report 2020.

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