Interloop : Transmission of Annual Report for the Year Ended June 30, 2023

FULL FAMILY CLOTHING PARTNER OF CHOICE

Committed to deliver on our customer promise of world-class products and on-time delivery, we are pursuing our Vision 2025, with a strategic focus on enhancing customer experience through provision of value-added services, offering multi-category products across all ages, genders and abilities, manufactured responsibly, meeting the highest standards of social and environmental performance.

TABLE OF

CONTENTS

COMPANY OVERVIEW

Our Footprint	06
Company Profile	07
Our Mission	08
Our Core Values	08
Our Vision 2025	09
Key Performance Indicators	10
2023 Highlights	11
Organizational Structure	12
2023 Recognitions	13
Business Categories	14
Customers	19
Corporate Information	20

GOVERNANCE

Board of Directors	24
Board Committees	26
Management Committee	27
Chairman's Review Report	28
Directors' Report	30
Directors' Report (Urdu)	58
Statement of Compliance	59
Independent Auditor's Review Report to the
Members on Statement of Compliance	62

RISK MANAGEMENT

Risk Management	66
Risk Governance	66
Risk Mitigation	66
Inadequacy in the Capital Structure &
Plans to Address Such Inadequacy	67
Liquidity Risk Strategy	67

PERFORMANCE & POSITION

Key Financial highlights	70
Last Six Year Statement of Financial Position	71
Horizontal Analysis on Statement
of Financial Position	72

Vertical Analysis Statement
of Financial Position	73
Last Six Years Statement of Profit or Loss	74
Horizontal Analysis on Statement
of Profit or Loss	74
Vertical Analysis on Statement of Profit or Loss	75
Last Six Years Statement of Cash Flows	75

SUSTAINABILITY & CORPORATE

SOCIAL RESPONSIBILITY

Planet	78
People	79
Prosperity	80
Certifications & Memberships	81

FINANCIAL STATEMENTS

Independent Auditor's Report to the
Members of Interloop Limited	85
Statement of Financial Position	90
Statement of Profit or Loss	91
Statement of Comprehensive Income	92
Statement of Changes in Equity	93
Statement of Cash Flows	94
Notes to the Financial Statements	96

SHAREHOLDERS' INFORMATION

Notice of 31st Annual General Meeting	148
Statement Under Section 166 (3) of the
Companies Act, 2017	157
Statement of Material Facts Concerning
Special Business Pursuant to Section 134 (3)
of the Companies Act, 2017	157
Notice of 31st Annual General Meeting (Urdu)	181
Pattern of Shareholding	182
Information for Shareholders	185
Interloop Limited - Form of Proxy	187
Interloop Limited - Form of Proxy (Urdu)	188

• Company
  Overview

OUR

FOOTPRINT

Global Presence Through Affiliates & Associates

NETHERLANDS
SERVICES	CHINA
	SERVICES / MANUFACTURING

PAKISTAN

MANUFACTURING

COMPANY

PROFILE

			119.20
30,000+		90.89
54.96
engaged people	2021	2022	2023
15 nationalities

Total Annual Sales

(PKR 'Billion)

Interloop Limited, headquartered in Pakistan, is a vertically integrated Full Family Clothing company, manufacturing Hosiery, Denim, Knitted Apparel & Seamless Activewear products, for top international brands and retailers, aiming to become a Partner of Choice.

8MW

Solar installed capacity

4.6 MW

installation in process

USA	JAPAN
SERVICES
	SERVICES

SRI LANKA

MANUFACTURING

Being the largest listed textile company on Pakistan Stock Exchange by market capitalization and among the top exporters of Pakistan, with annual sales of PKR 119,200 million, Interloop employs 30,000+ highly motivated and engaged people from over 15 nationalities. It enjoys an organizational network operating from 6 countries, with an extensive, well-equipped industrial infrastructure base in Pakistan, an associate manufacturing facility in Sri Lanka, contract manufacturing facility and sourcing office in China, and marketing services offices in USA, Europe and Japan.

Renowned globally for its manufacturing excellence, Interloop is also a pioneer in environmental consciousness and at the forefront of social change. Aiming for Race to Zero, it focuses on circular by choice, reducing its carbon footprint, and using less water. Elevating its commitment to environment, Interloop became Pakistan's First manufacturing organization in Large Enterprise Category to have its Science Based Targets approved. In addition, it installed a water recycling Plant at its Hosiery Plant 5, recycling all the process water. Adding cleaner fuel to

its energy generation sources as a major priority, it has switched from coal to biomass fuel for steam generation which has significantly reduced its carbon footprint.

Living the digital-first reality, we ensure that existing operations are carried out as per industry best practices, and new initiatives are pursued to digitize operations, enabling our people to work faster and better. We have already deployed Robotic Process Automation across repetitive tasks and are using indigenous digital app for HR services. LoopTrace; our proprietary traceability solution to provide end-to-end traceability from product to the farm level, covering man, material and machine, is ensuring complete chain of custody for raw materials and we have already shipped our completely traceable yarn from our spinning facility.

Being a Business with Purpose, Interloop follows the Triple Bottom Line approach focused on Planet, People and Prosperity. Rooted in our Mission, our reason for existence is to bring about a positive change for the stakeholders and the community. Our ambition to transform lives, improve wellbeing, build a diverse, engaged and inclusive workforce, and conserve the environment, is reflected in our business decisions, practices and initiatives. As a signatory to the United Nations Global Compact, and by joining the UN Fashion Industry's Charter for Climate Action to drive net-zero GHG emissions by 2050, Interloop is fully committed to sustainable development.

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COMPANY OVERVIEW

OUR

MISSION

To be an agent of positive change for the stakeholders and community

by pursuing an ethical and sustainable business

OUR

VISION 2025

To Become a

Full Family Clothing

Partner of Choice

OUR CORE

VALUES

Vision 2025 is our growth led strategy with a customer first approach designed to enable Interloop to be a Full Family Clothing Partner of Choice

Vision 2025 charts out our strategy from July 2021 through to June 2026. It is guided by a customer first approach with our strategic focus on offering multi-category products, manufactured responsibly, meeting the highest standards of environmental and social performance.

Our strategic focus is to maintain leadership in hosiery and build credibility of our new categories, by offering denim, apparel and seamless activewear products to our customers, across all ages, genders and abilities, becoming a full family clothing supplier. We aim to be a partner of choice through exceptional customer service, delivered by our value-added services and responsible business practices.

HOW WE'LL DO IT

PEPOLE

A diverse, inclusive and engaged workforce creating a high performing organization

DIGITAL TRANSFORMATION

Drive efficiencies through digitalization and provide transparency to our customers with real time information

AGILE MANUFACTURING

Drive an agile organization retaining our competitive position as a responsive high quality manufacturer

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To successfully deliver on our strategy, we are unleashing the true potential of our people by building a diverse, inclusive and engaged workforce creating a high-performing organization. This is being enabled by our digital transformation and by an agile and lean mindset across all aspects of our business.

$700M	2.5x	25%
REVENUE BY FY2026	REVENUE THROUGH	LOWER CARBON FOOTPRINT
	VALUE ADDED SERVICES	AND RESOURCE CONSUMPTION
Transforming into a full family clothing	Providing value added services creating	Lead the way in responsible
business will build further credibility with	strong lasting partnerships	manufacturing meeting highest standards
our customers		of environmental and social performance

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COMPANY OVERVIEW