In this paper a systematic approach is developed for generating the fault-tree logic, which is the basic requirement in any reliability studies of large complex systems using Monte Carlo simulation or deterministic approaches. The entire network is decomposed into sub-networks, each sub-network involving several loops, and it becomes quite easy to determine failure logic for these loops and thus for the subnetworks. Failure of such subnetworks between the source and the sink node leads to a major system failure and therefore this successive development results in a fault tree for the whole network.These loops can be automatically generated.