ANSARI SUGAR MILLS LIMITED

CONTENTS

Company Profile

Notice of Annual General Meeting

Vision and Mission Statement

Receiver s Report

Statement of Compliance with the Code of

Corporate Governance

Review Report to the Members on Statement of

Compliance with Best Practices of Code of

Corporate Governance

Pattern of Shareholding

Pattern of Shareholding as per

requirements of Code of Corporate Governance

Six Years' Review at a Glance

Auditors' Report

Balance Sheet

Profit and Loss Account

Cash Flow Statement

Statement of Changes in Equity

Notes to the Financial Statements

COMPANY PROFILE

RECEIVER

Mr. Afaq Jamal Hussain

BOARD OF DIRECTORS

Mr, Dinshaw Hoshang Anklesaria

Chief Executive

(Suspended for the time being)

Mr. Ahmed Khan Ansari

Director

Mr. Abdul Hafeez Ansari

Director

Mrs. Nasreen Ghani Ansari

Director

Mr. Irnran Rasheed Ansari

Director

Syed Anwar Raza Naqvi

Director

Mr. S.M.Ahsan Raza

Director

{Nominee of N.I.T.)

Mr. M.Manzurul Haq

Director

(Nominee of N.D.F.C.}

COMPANY SECRETARY

Mr. Muhammad Tahseen

BANKERS

Habib Bank Limited

Muslim Commercial Bank Limited

National Bank of Pakistan

National Development Finance Corporation

Allied Bank of Pakistan

AUDITORS

M/s. Khalid Majid Rahman Sarfaraz Rahim Iqbal Rafiq

Chartered Accountants

LEGAL ADVISOR

Dr. Raees Mushtaq

REGISTRAR

Uni Corporate & Financial Services

Westland Trade Centre,

Opp. Flyover, Shaheed-e-Millat Road,

Karachi

REGISTERED OFFICE

41-K, Block 6, P.E.C.H.S.

Karachi

FACTORY

Deh Jagsiyani,

Taluka Tando Mohammad Khan

District Hyderabad, Sindh

STATEMENT UNDER SEC. 138 (2) OF THE COMPANIES ORDINANCE, 1984

MR. AFAQ JAMAL HUSSAIN HAS BEEN APPOINTED AS RECEIVER BY

THE EHTESAB BENCH LAHORE HIGH COURT VIDE ITS ORDER DATED

MAY 27,1998 AND MAY 29,1998 IN E.R. NO. 26/98, 27/98 & 28/98.

NOTICE OF ANNUAL GENERAL MEETING

The Honourable Ehtesab Bench of Lahore High Court vide its order dated October 08, 1999 has

directed the Receiver to fix the date for holding of Annual General Meeting for the purpose of

authentication of accounts in compliance with sections 158, 236 and 241 of the Companies Ordinance,1984

Notice is hereby given that the 14th Annual General Meeting of the Shareholders of ANSARI SUGAR

MILLS LIMITED, will be held on Thursday, January 29, 2004 at 8 a.m. at the registered office of the

Company situated at 41-K, Block 6, P.E.C.H.S., Karachi for transacting the following business.

ORDINARY BUSINESS:

1.       To confirm the minutes of the Annual General Meeting held on 27th March 2003.

2.       To receive, consider and adopt the audited accounts of the Company for the year ended

September 30, 2003 together with the Receiver's and Auditors' Report thereon.

3.       To appoint Auditors and to fix their remuneration.

4.       To consider any other Business with the permission of the Receiver.

for ANSARI SUGAR MILLS LIMITED

Karachi                                                                                           (AFAQ JAMAL HUSSAIN)

Dated: December 27. 2003                                                         Receiver

NOTES :

1.       The Share Transfer Books of the Company will remain closed from 19th January, 2004 to 29th

January, 2004 .

2.       A member entitled to atteud and vote at this meeting may appoint another member as his/her

proxy to attend the meeting and vote on his/her behalf. Proxies, in order to be effective, must

be received by the Company not less than 48 hours before the meeting.

3.       The share holders are requested to notify any change in their address immediately.

4.       Kindly quote your folio number in all correspondence with the Company.

VISION & MISSION STATEMENT

VISION

To make a product of International Standard acceptable as a brand in

the world market. To explore business opportunities available under

the World Trade Organization regime.

MISSION

•     To sustain contribution to the National Economy by producing cost

effective product.

•     To ensure professionalism and healthy working environment.

•     To create a reliable product through adoption of latest technology/

advancement.

•     To promote research & development and provide technical know

how to the growers for improvement of sugarcane yield/recovery.

RECEIVER'S REPORT

The Honourable Ehtesab Bench of Lahore High Court vide its order dated October 08/1999 has

directed the Receiver to fix the date for holding of Annual General Meeting for the purpose of

authentication of the accounts in compliance with sections 158, 236 and 241 of the Companies

Ordinance., 1984.

On behalf of the Company, it is my pleasure to welcome you to the 14th Annual General Meeting

of the Company. It is my privilege to present to you the financial and operating results of your

Company along with the audited accounts for the year ended September 30, 2003.

FINANCIAL RESULTS

The financial results are as follows:

RUPEES

RUPEES

2003

2002

Loss for the vear before taxation

61,327,218

117,243,468

Provision for taxation for the year

4,903,114

3,142,499

Loss after tax

66,230,332

120,385,967

Accumulated loss brought forward

190,819,445

70,433,478

Accumulated loss carried forward

257,049,777

190,819,445

It is evident from above that the company has achieved note worthy results in respect of reducing

its traditional losses. In last year our loss before tax was Rs. 117.243 million which has now reduced

to Rs. 61.327 million . This represents 48% improvemeuc in the current year.

OPERATING RESULTS

In 2002-2003 season, the mi" commenced crushing on December 10, 2002 and continued upto April

6, 2003. Though the industry has not yet been released from the crisis yet the operating results, like

wise financial results, are tending towards improvement. There is an increase in production and

capacity utilization by 58% and 27% respectively beside increase in recovery rate of sugar and

molasses. These indicators reflect satisfactory performance of mill for which management and staff

deserve appreciation.

A six years analysis of our financial and operating results is annexed to this report.

SALES

Average sale price of sugar during the year 2003 was 10% lower than year 2002 that effected revenue

to the Company.

FUTURE OUTLOOK

The crushing season of 2003-2004 started on November 30, 2003. On the basis of the following

production data till this report date our progress may be analyzed.

PARTICULARS

SEASON

SEASON

2003-04

2002-03

*   No of crushing days till todate

28

13

*   Sugar cane crushed- tonnes

148,367

76,189

*   Sugar produced- tonnes

12,785

5,818

*   Sugar recovery rate

9.411

9.311

STATEMENT ON CORPORATE AND FINANCIAL REPORTING FRAMEWORK

1         The financial statements , prepared by the Company , present fairly its state of affairs, results

of its operation, cash flow and statement of equity.

2        Proper books of account of the company have been maintained

3        Appropriate Accounting policies have been consistently applied in prepraration of the finiancial

statements, changes, if any have been adequately disclosed and accounting estimates are based

on reasonable and prudent judgement.

4        International Accouting Standard, as applicable in Pakistan, have been followed in preparation

of financial statements, and departure thereform,if any, has been adequately disclosed.

5        The system of internal control is sound in design and has been effectively implemented and

monitored.

6        There are no significant doubts upon the Company's ability to continue as a going concern.

7        Key operating and financial data for last six years in summarized form is annexed.

8        There have been no material departure from the best practices of Corporate Governance except

those mentioned in the Statement of Compliance with Code of Corporate Governance.

9         In view of the loss during the year, the Company has not declared any dividend.

10      No trades in share of the Company were carried out by the directors and their spouses and

minor children.

LABOUR MANAGEMENT RELATIONS

The management labour relations remained cordial. I take this opportunity to thank and appreciate

the spirit of understanding, goodwill and co-operation shown by the workers and hope that the same

will continue in future.

1 arn also thankful to the executives, officers and all the staff members of the Company and wish to

place on records my appreciation for their devotions, Sense of responsibility and loyalty.

AUDITORS

M/s. Khalid Majid Rahman Sarfaraz Rahim Iqbal Rafiq, Chartered Accountants retire and offer their

services for the year 2003-20U4

CODE OF CORPORATE GOVERNANCE

Statement of compliance with the Code of Corporate Governance is anexed.

PATTERN OF SHARE HOLDING