Transmission of Annual Report for the Year Ended June 30, 2025

FULL FAMILY CLOTHING PARTNER OF CHOICE

Full Family Clothing Partner Of Choice

Committed to serving our customers with world-class products and timely delivery, we are actively working towards achieving our Vision 2025; to become a full family clothing partner of choice. Our focus is on enhancing customer experience through value-added services and a wide multi-category product portfolio. Designed to serve all ages, genders, and abilities, our offerings are produced responsibly, meeting the highest environmental and social standards while strengthening our position as a trusted partner in the global apparel industry.

TABLE OF CONTENT

COMPANY OVERVIEW

Our Footprint 06

Company Profile 07

Our Mission 08

Our Values 08

Our Vision 2025 09

Key Performance Indicators 10

2025 Highlights 11

Organizational Structure 12

2025 Recognitions 13

Business Categories 14

Our Customers 19

Corporate Information 20

GOVERNANCE

Board of Directors 24

Board Committees 28

Management Committees 29

Chairperson's Review Report 30

Directors' Report 32

Directors' Report (Urdu) 61

Statement of Compliance 62

Independent Auditors' Review Report to the

Members on Statement of Compliance 65

RISK MANAGEMENT

Risk Management 68

Risk Governance 68

Risk Mitigation 68

Inadequacy in the Capital Structure &

Plans to Address Such Inadequacy 69

Liquidity Risk Strategy 69

PERFORMANCE & POSITION

Key Financial Highlights 72

Last Six Years Statement of Financial Position 73

Horizontal Analysis on Statement of Financial Position 74

Vertical Analysis Statement of Financial Position 75

Last Six Years Statement of Profit or Loss 76

Horizontal Analysis on Statement of Profit or Loss 76

Vertical Analysis on Statement of Profit or Loss 77

Last Six Years Statement of Cash Flows 77

SUSTAINABILITY & CORPORATE SOCIAL RESPONSIBILITY

Planet 80

People 81

Community 82

Prosperity 82

Certifications & Memberships 83

FINANCIAL STATEMENTS

Independent Auditor's Report to the

Members on Unconsolidated Financial Statements 87

Unconsolidated Statement of Financial Position 92

Unconsolidated Statement of Profit or Loss 93

Unconsolidated Statement of Comprehensive Income 94

Unconsolidated Statement of Changes in Equity 95

Unconsolidated Statement of Cash Flows 96

Notes to the Unconsolidated Financial Statements 98

Independent Auditor's Report to the

Members on Consolidated Financial Statements 153

Consolidated Statement of Financial Position 158

Consolidated Statement of Profit or Loss 159

Consolidated Statement of Comprehensive Income 160

Consolidated Statement of Changes in Equity 161

Consolidated Statement of Cash Flows 162

Notes to the Consolidated Financial Statements 164

SHAREHOLDERS' INFORMATION

Notice of 33rdAnnual General Meeting 222

Notice of 33rdAnnual General Meeting (Urdu) 231

Pattern of Shareholding 232

Investor Information 235

Interloop Limited - Form of Proxy 237

Interloop Limited - Form of Proxy (Urdu) 239

Knitting | ILP Hosiery Plant 4

FULL FAMILY CLOTHING

OUR FOOTPRINT

Global Presence Through Affiliates & Associates

USA

Services

NETHERLAND

Services

PAKISTAN

Manufacturing

CHINA

Services / Manufacturing

JAPAN

Services

SRI LANKA

Manufacturing

COMPANY PROFILE

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.

Being the largest listed apparel company on the Pakistan Stock Exchange by market capitalization and the only Pakistani apparel company on the Morgan Stanley Frontier Market Index (MSCI), Interloop stands as one of the country's leading exporters, with annual sales of PKR 173,382 million. With 37,000+ employees representing 15 nationalities, Interloop brings together talent, expertise,

and innovation, working across an organizational network operating from 6 countries, including an extensive, well-equipped industrial infrastructure base in Pakistan, an associate manufacturing facility in Sri Lanka, a manufacturing facility and sourcing office in China, and marketing services offices in the USA, Europe, and Japan.

Shaping the future of Pakistan's apparel industry, Interloop is setting benchmarks in environmental sustainability. The company is targeting 100% waste diversion from landfill by FY 2026, supported by Reverse Resources for traceable circular solutions. Interloop achieved

Alliance for Water Stewardship (AWS) Gold Certification for its Denim and Hosiery facilities in Lahore, recognizing excellence in water governance, management, and community

WASH investments ,reinforcing its commitment to responsible water use. Interloop's proprietary Looptrace platform enhances supply chain transparency by tracing raw materials

back to their origins, with realtime data collection and document management designed to ensure

compliance, with global due diligence standards. To promote low-impact textiles, the company launched Loomshake™ a sustainable innovation that combines banana fiber derived from banana waste with cotton to produce hosiery, denim, and knitted apparel, all certified by ISCC Plus

and OEKO-TEX 100 for quality and full traceability from farm to finished product. Its Hosiery Plants 4, 5 & 6

have attained LEED Gold Certification, while its Denim and Apparel Plant 2 are LEED Platinum certified facilities. In FY 2025, an additional 4.6 MW solar plant was commissioned, increasing total onsite capacity to 17.3 MW

and reinforcing our commitment to renewable energy. Interloop's

Regenagri Kapas Project, certified by Control Union, is transforming cotton farming practices, promoting soil regeneration and biodiversity.

Interloop continues to advance its digital transformation journey,

enhancing its ERP and MES landscape through Project Foglight across Hosiery, Denim, and Apparel units.

By embedding AI and digital tools such as Digital Twin, Kanban, and real-time dashboards, the company is driving efficiency, agility, and smarter decision-making on the shop-floor.

Home-grown AI solutions like YODA for product development, a product

risk assessment solution in Denim, and machine health assessment and corrective-action recommendation system in Hosiery are moving from pilots to deployment, with further innovations in smart planning and automation underway. Interloop's commitment to safeguard its critical IT

infrastructure and data is reinforced by its dedicated IT Governance function, achieving ISO 27001:2022 certification.

Interloop reinforces its traceability and compliance while moving toward Digital Product Passport.

As a Business with Purpose, Interloop embraces the Triple Bottom Line approach focusing on Planet, People, and Prosperity. Rooted in its Mission,

Interloop's reason for existence is to bring about positive change for its stakeholders and the community. Its ambition to transform lives and improve the wellbeing of its people and communities through targeted interventions, foster a diverse, engaged, and inclusive workforce, and conserve the environment is

consistently reflected in the company's business decisions, practices, and initiatives.

Our commitment to the UN Global Compact and the UN Fashion Industry Charter for Climate Action reinforces our drive to champion Net-Zero Goals and our commitment to sustainable development.

37,000+

engaged associates from 15 nationalities

Only Apparel Company from Pakistan on the main Morgan Stanley Frontier Market Index (MSCI)

17.3MW

solar installed capacity

OUR MISSION

OUR VALUES

To be an agent of positive change for stakeholders and the community by pursuing an ethical and sustainable business.

INTEGRITY

CARE

Vision 2025 is our growth-led strategy centered around our customer-first approach, positioning Interloop as the preferred Full Family Clothing Partner of Choice.

This roadmap, spanning July 2021 to June 2026, re昀氀ects our commitment to delivering responsibly manufactured, multi-category products that meet

the highest environmental and social performance standards. Our goal is to maintain leadership in hosiery and continue building global credibility of

our denim, knitted apparel, and seamless activewear products, catering to our customers, for all ages, genders, and abilities.

To effectively implement this strategy, we are unlocking the true potential of our people by fostering a diverse, engaged and inclusive work environment that drives high performance. This transformation is supported by our commitment to digital innovation and an agile and lean mindset

ACCOUNTABILITY

RESPECT

EXCELLENCE

across all aspects of our operations. By providing exceptional customer service through value-added offerings and responsible business practices, we are af昀椀rming our role as the partner of choice for our clients.

8 Annual Report 2025

OUR VISION 2025

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To Become a Full Family Clothing Partner of Choice

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HOW WE'LL DO IT

PEOPLE

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

Company Overview 9

KEY PERFORMANCE INDICATORS

TOTAL

SALES PKR'B

EARNINGS

PER SHARE PKR

PROFIT

AFTER TAX PKR'B

173.38

156.13 FY 2024

3.84

11.25 FY 2024

5.38

15.77 FY 2024

CURRENT RATIO TIMES

1.17

1.14 FY 2024

RETURN ON EQUITY

9.74%

29.46% FY 2024

CASH DIVIDEND

PER SHARE PKR

1.00

*

4.50 FY 2024

* Final dividend PKR 1 per share subject to approval of shareholders

2025

HIGHLIGHTS

Revenue in USD

615

Million

Revenue Growth

11%

Year - on - Year

Record Ramp-up

330 Days

Hosiery Plant 6

Apparel Plant 2

LEED Platinum

Certification with 94 / 110 score

GOLD Certification

Only textile company

Empowering People

507,236 Hours

Technical Training

Alliance for Water Stewardship

ORGANIZATIONAL STRUCTURE

2025

RECOGNITIONS

COLLABORATE TO ACCELERATE AWARD 2025

Interloop received Nike's Collaborate to Accelerate Award 2025 in February, Sri Lanka, recognizing our valuable contribution to the

Learning Community and reaffirming our commitment to partnership and shared growth.

ENVIRONMENTAL EXCELLENCE AWARD

Interloop received the Environmental Excellence Award at the adidas ESG Summit in September 2024, recognizing its continued

commitment to sustainable practices and environmental stewardship.

TOP ETHICAL PERFORMING SUPPLIER AWARD 2024

Interloop Limited received the Top Ethical Performing Supplier Award 2024 from TESCO, recognizing our outstanding commitment to ethical practices. This achievement reflects our dedication to compliance, capability, and transparency.

ISPO TEXTRENDS BEST PRODUCT AWARD

Interloop's Socklab®, the world's first Cradle to Cradle Certified™ GOLD sock, was named Best Product in the Accessories category at ISPO TexTrends FW 2026/27, Munich, reinforcing its leadership in sustainable and high-performance footwear.

DISABILITY INCLUSION RECOGNITION AWARD

Interloop received the prestigious Diamond Award at the 2024 Disability Inclusion Recognition Awards, from Employers' Federation of Pakistan, for advancing workplace inclusion and scoring over 90% in a rigorous expert evaluation.

BUSINESS CATEGORIES

HOSIERY

PAIRS OF SOCKS

ANNUAL PRODUCTION CAPACITY

Interloop stands among the world's largest sock manufacturers, producing over 753 million pairs annually for some of the most iconic global brands and retailers, including Nike, adidas, STICHD, Target, H&M, C&A, M&S, Amazon, and Uniqlo. With more than three decades of expertise, the company has built its reputation on quality, scale, innovation, and sustainable practices, making it a preferred partner worldwide.

With six vertically integrated manufacturing facilities in Pakistan and one each in Sri Lanka and China. Leveraging advanced knitting and finishing technologies-such as auto-linking, double-cylinder knitting, Jeanologia, and Tonello systems-the company manufactures a diverse portfolio of socks, from athletic and performance to fashion and casual wear for all age groups.

Interloop's products are crafted using natural, man-made, and recycled fibers, enhanced with innovative features like extreme breathability, anti-blistering, anti-friction, and ultra-grip. The company also holds one of the largest capacities for infant socks worldwide, meeting the requirements of its global clientele.

As a full-service partner, Interloop provides end-to-end solutions in product development, quality assurance, research and innovation, and digital sampling. Its strong emphasis

on sustainability and investments in digital technologies continue to reshape operations across design, manufacturing, customer engagement, and warehousing, ensuring agility and efficiency in a dynamic global marketplace.

* Based on current mix

DENIM

GARMENTS

ANNUAL PRODUCTION CAPACITY

Interloop Denim has rapidly emerged as a global benchmark for responsible denim manufacturing, combining sustainability, innovation, and style. Since its launch in December 2019, it has grown into one of the largest LEED Platinum-certified denim facilities in the world, producing up to 9.5 million garments annually while leading the way in

environmentally conscious and resource-efficient production.

Rooted in sustainability, the facility integrates Industry

4.0 practices and low-impact solutions to minimize its environmental footprint. From nano-bubble technology and waterless ozone bleaching to auto nebulisation systems that ensure a consistent 1:0.8 liquor ratio, every process is designed for efficiency and eco-responsibility. The use of

ERP-driven optimization and digital sampling further enhance speed, precision, and waste reduction.

Equipped with cutting-edge machinery including auto spreaders, auto cutters, high-efficiency sewing systems, and advanced laundry equipment such as Jeanologia, Tonello, and Atmos-the plant delivers consistent quality. Its extensive in-house laser facility and a curated library of light-sensitive fabrics allow Interloop Denim to offer a wide product range, from jeans and cargos to shorts, skirts, and jackets for all genders, ages, and sizes.

Partnering with global fashion leaders such as Guess, Hugo Boss, ZARA, and Target, Interloop Denim continues to redefine denim by merging sustainable craftsmanship with cutting-edge fashion innovation.

* Based on current mix

APPAREL

GARMENTS

ANNUAL PRODUCTION CAPACITY

Interloop's Apparel division is a state-of-the-art, vertically integrated facility that manages the entire product lifecycle from yarn spinning and fabric processing to garment production, finishing, and packaging. With automation at scale and a strong focus on innovation, the plant is set to expand its annual production capacity to 69.76M pieces

by 2026, positioning itself as a key player in global apparel manufacturing.

By maintaining complete control over production, Interloop ensures speed, flexibility, and customization while upholding the highest standards of quality and compliance. With a people-inspired mindset, the company invests heavily in skill and capability development through its dedicated Technical Training School, which focuses on knitting, stitching, machine maintenance, and behavioral competencies aligned with Interloop's core values.

The apparel line covers a diverse range of knitted garments including tees, polos, hoodies, sweatshirts, pants, shorts, boxers, jackets, zipper jackets, and henleys, using fabrics such as single jersey, fleece, double-knit structures, cotton-rich blends, and synthetics. This wide product range enables Interloop to cater to the evolving needs of a global customer base.

Sustainability is at the heart of the facility's design, integrating renewable energy, water recycling systems, and even a wetland bird sanctuary. The Apparel Plant 2 achieved LEED Platinum certification, reflecting Interloop's commitment to energy efficiency and environmental stewardship.

* Based on current mix

ACTIVEWEAR

GARMENTS

ANNUAL PRODUCTION CAPACITY

Interloop's seamless Activewear facility at the Interloop Industrial Park is a state-of-the-art, vertically integrated plant delivering 7.6 million garments annually. From high-performance activewear to everyday underwear, the product range spans ten different sizes, ensuring inclusivity and versatility for a global customer base.

Engineered for performance and comfort, Interloop's seamless garments are designed to move with the body, offering durability, flexibility, and style. By utilizing body-mapping technology, products provide 360-degree stretch and unrestricted movement. The Activewear facility is equipped with 54 Santoni knitting machines, 5 Tonello dyeing machines, and 225 sewing machines, producing a wide range of items including bras, thongs, briefs, compression leggings, sports bras, tank tops, and tees.

Sustainability is a cornerstone of Interloop Activewear. The facility integrates recycled yarns, waterless dope dyeing, and low-liquor ratio technologies to minimize environmental impact, while maintaining GRS and Oeko-Tex certifications. Innovation is embedded across operations, with advanced garment washes, aesthetic materials such as lurex and shiny nylon, and diverse fabric constructions enhanced through body mapping techniques.

As a trusted partner to global brands like adidas, Reebok, Guess, Zara, H&M, K-Mart, and Dillard, Interloop Activewear continues to set benchmarks in quality, innovation, and sustainability while delivering products tailored to the dynamic needs of modern consumers.

* Based on current mix

YARNS

LBS ANNUAL PRODUCTION CAPACITY (CONVERTED INTO 20/S)

SPINNING

Interloop produces 32 million lbs of premium yarn annually, converted into 20/s, to serve a wide range of textile customers. The automated spinning plants are equipped with advanced European and Japanese machines, ensuring compliance with strict quality standards. Raw materials include virgin fibers such as Pakistani and imported cotton, synthetic and acrylic fibers, viscose-based fibers like Modal, Bamboo, and Lyocell, as well as cellulosic fibers such as hemp and linen/flax. In addition, Interloop utilizes recycled and sustainable fibers, including organic cotton, BCI, PSCP,

CMIA, recycled (PIW/PCW) cotton, and various recycled or sustainable polyester and viscose fibers. The company

produces a broad variety of yarns, including plain, slub, multi-count, slub lycra, siro slub core, siro compact, polyamide core, and blended yarns. More than 50% of the yarn is consumed

in-house, while the remaining is supplied to renowned weavers, apparel manufacturers, denim producers, knitters, and towel makers.

YARN DYEING & AIR COVERING

Interloop operates a state-of-the-art Yarn Dyeing & Elastomeric Yarn facility, equipped with modern systems such as highly automated dyeing operations and automatic dyestuff and chemical dispensing. With an annual dyeing capacity of 5.5 million kgs, Interloop offers a wide spectrum of colors across spun and filament yarns, including Polyester, Nylon, Acrylic, Coolmax, Modal, Tencel, Viscose, Wool,

Bamboo, Blends, Microfibers, and Recycled Yarns. In addition, modern Italian Air Covering machines-with an annual production capacity of 1 million kgs are used to cover in-house dyed, dope-dyed, and raw white yarns, utilizing leading spandex brands such as Lycra and Creora, at customized percentages. Looking ahead, Interloop is installing a spun yarn dyeing unit with a capacity of 20 tons per day at Interloop Apparel Park. Currently under construction, the project is expected to commence production in the second half of FY26.

* Converted into 20/s

OUR CUSTOMERS

Some of our top clients across Europe, USA and Asia

CORPORATE INFORMATION

BOARD OF DIRECTORS

Musadaq Zulqarnain

Chairperson

Navid Fazil

Chief Executive Officer Muhammad Maqsood Farwa Hasnain Fatima Asad Khan Romana Abdullah Tariq Iqbal Khan Faryal Sadiq

Jahan Zeb Khan Banth

AUDIT COMMITTEE

Tariq Iqbal Khan

Chairperson

Farwa Hasnain Romana Abdullah Jahan Zeb Khan Banth

HUMAN RESOURCE & REMUNERATION COMMITTEE

Fatima Asad Khan

Chairperson Navid Fazil Farwa Hasnain Faryal Sadiq

Jahan Zeb Khan Banth

NOMINATION COMMITTEE

Musadaq Zulqarnain

Chairperson

Navid Fazil Muhammad Maqsood

RISK MANAGEMENT COMMITTEE

Tariq Iqbal Khan

Chairperson Muhammad Maqsood Fatima Asad Khan Romana Abdullah

ENVIRONMENTAL, SOCIAL & GOVERNANCE COMMITTEE

Navid Fazil

Chairperson Farwa Hasnain Faryal Sadiq

CHIEF FINANCIAL OFFICER

Muhammad Maqsood

COMPANY SECRETARY

Rana Ali Raza

HEAD OF INTERNAL AUDIT

Jamshaid Iqbal

CHIEF INFORMATION OFFICER

Muhammad Yaqub Ahsan Bhatti

LEGAL ADVISOR

Haidermota & Co.