Fazal Cloth Mills Ltd. - Annual Reports 2003

FAZAL CLOTH MILLS LIMITED

Annual Report 2003

CONTENTS

COMPANY INFORMATION

Board of Directors

Sh. Naseem Ahmad Chairman & Chief Executive

Sh. Amir Naseem

Mr. Rehman Naseem

Mr. Fazal Ahmad Sheikh

Mr. Faisal Mukhtar

Mrs. Farrukh Mukhtar

Mr Shamsuddin Khan Nominee NIT Ltd.

Audit Commitee

Sh. Naseem Ahmad Chairman

Mr. Rehman Naseem Member

Mr. Fisal Mukhtar Member

Company Secretary

Mr. M.D. Kanwar

Chief Financial Officer

Mr. Faizan-ul-Haq

Auditors

M/s Yousuf, Adil, Saleem & Co.,

Chartered Accountants

Bankers

Habib Bank Limited

Askan Commercial Bank Limited

Sonen Bank Limited

Bank AI-Falah Limited

National Bank of Pakistan

Faysal Bank Limited

ABN-AMRO Bank. N.V.

Meezan Bank Limited

Pakistan Industrial Credit & Investment Corporation Limited

Pakistan kuwait Investment Company (Pvt) Limited

Offices :

Head/Registered Office

1st Floor, International Plaza, Bohra Street, Multan Cantt Pakistan

Ph.: 061-587632, 588733, 581422, Fax . 0092-61-541832

e-mail : fazalgrp@brain.net.pk

Account Office

2nd Floor, Trust Plaza, Multan - Pakistan

Ph. 061-549713. 512031 Fax 0092-61-511677

Mills:

i) Fazal Nagar. Jhang Road, Muzaffargarh - Pakistan

Ph. 0661-422216-18 Fax : 0092-661-422217

e-mail exports@fazalcloth.com

ii) Qadirpur Rawan Bypass, Khanewal Road, Multan - Pakistan

Ph. 061-578022-23, 578097 Fax : 0092-61-578098

Corporate Vision / Mission Statement

Vision

The Company aims at becoming a Complete Textile unit, which can explore local

and international market of very high value products. The Company would keep its

emphasis on product and market diversification, value addition and cost

effectiveness. We want to fully equip the company to play a meaningful role on the

sustainable basis in the economic development of the Country.

Mission

The Company should provide a secure and rewarding investment to its shareholders

and investors, quality products to its customers, a secure place of work to its

employees and an ethical partner to all its business associates.

STATEMENT OF ETHICS

INTRODUCTION

The Company's policy is to conduct business with honesty and integrity and be ethical in all its

dealing, showing respect for the interest of those with whom it has relationships.

EMPLOYEES

1. This Code of Ethics is established on the basis that unless a limitation is specifically stated the

objectives and fundamental principles are equally valid for ail employees, whether they are at mills

or at head office.

2. An employee is distinguished by certain characteristics including :

2.1 Master of particular intellectual skill, acquired by training and education.

2.2 Acceptance of duty to society as a whole in addition to duties to the organization and

employer.

2.3 Rendering personal services to a high standard of conduct and performance.

3. The specialized knowledge, skills, training and experience required to be a proficient employee.

4 The efforts of the services of superiors to train those working directly and indirectly under them

would be appreciated.

THE PUBLIC INTEREST

5. A distinguishing mark of a profession is acceptance of its responsibility to the organization. The

organization is responsible towards customer, credit grantors, governments, employees, investors,

the business and financial community and others who rely on the objectivity and integrity of the

organization to maintain the orderly functioning of commerce and industry. This reliance imposes

a public interest responsibility on the organization. The public interest is defined as the collective

well being of the community of people and institution served by the organization.

6. An organization's responsibility is not exclusively to satisfy the needs of an individual customer or

director. The standards of service are heavily determined by the public interest for example :

6. / Transparent dealings help to maintain the integrity and efficiency of the Organization presented

to the shareholders, financial institutions, customers, employees, government regulations

and tax authorities. The transparent dealings would help to secure loans and to obtain

capital from share holders.

6.2 Financial planning serves in efficient and effective use of the organization's resources.

6.3 Internal auditors provide assurance about a sound internal control system, which enhances

the reliability of the external financial information of the organization.

6.4 Directors help to establish confidence and efficiency for fair resolution Organization's affairs.

6.5 Management has responsibility toward the organization in advocating sound management

decision making.

7. The organization has an important role towards society, shareholders, creditors, employees and

other sectors of the business community, as well as the government and the public at large for

sound financial accounting, reporting effective financial management and variety of business and

taxation matters. Sound business practices of the organization has an impact on the economic

well being of the country.

8. It is in the best interest of the organization that services are provided at the highest level of

performance and in accordance with ethical standards to ensure continued good performance.

9. In formulating this code of ethics, the Board of Directors has considered the public service and

employees expectations of the ethical standards of the organization.

OBJECTIVES OF THE ORGANIZATION

10. The code recognizes that the objectives of the organization are to work to highest standards of

professionalism, to attain the highest levels of performance and generally to meet the interested

group requirements set out above. These objectives require four basic needs to be met:

10.1 Credibility

In the whole of society there is a need for credibility in information and information systems.

10.2 Professionalism

The customers, employees and other interested parties can rely on the professionalism of

the organization.

10.3 Quality of Services

There is a need for assurance that all services provided are carried out to the highest

standards of performance.

10.4 Confidence

Interested groups should be able to feel confident that there exists a framework of

professional ethics, which governs the provision of services provided by the organization to

the community and the country.

FUNDAMENTAL PRINCIPLES

11. In order to achieve the objectives of the organization, employer and employees have to observe a

number of prerequisites or fundamental principles.

12. The fundamental principles are:

12.1 Integrity

An interested group connected with the organization should be straight forward and honest

in performing professionals services.

12.2 Objectivity

The organization should be fair and should not allow prejudice or bias or influence of other

to override objectivity.

12.3 Professional Competence, Due Care and Timeliness

An organization should perform and provide goods and services with due care, competence

and diligence and has a continuing duty to maintain a level required to ensure that a customer

or employee receives goods and service based on up to date product line. Further all industrial

obligations should be adhered to for timely compliance.

12.4 Confidentiality

The organization should respect the confidentiality of information acquired during the course

of providing goods and services and should not use or disclose any such information without

proper and specific authority or unless there is a legal or professional right or duty to disclose.

12.5 Organizational Behavior

The organization should act in a manner consistent with the good reputation of the industry

and refrain from any conduct, which might bring discredit to the company.

12.6 Technical Standards

The organization should provide goods and services in accordance with the relevant technical

ond professional standards The organization has a duty to carry out with care and skill, the

instructions of the customers insofar as they are compatible with the requirements of

commercial trade practice. In addition they should conform with the technical and professional

standards promulgated by:

— PCSIR (Pakistan Council for Scientific & Industrial Research)

— international Standards

— Relevant Legislation

13. In addition to observing the fundamental principles listed above; the organization should be and

appear to be free of any interest, which might be, regarded, whatever its actual effect, as being

incompatible with integrity, objectivity and independence.

14. The objectives as well as the fundamental principles are of a general nature and are not intended

to be used to solve the organization's ethical problems in a specific case. However, the code

provides some guidance as to the application in practice of the objectives and the fundamental

principles with regard to a number of typical situations occurring in the industrial process and

company procedure.

NOTICE OF MEETING

Notice is hereby given that the 38th Annual General Meeting of the Shareholders of the Company

FAZAL CLOTH MILLS LIMITED will be hied on Friday, the 30th day of January, 2004 at 11:00 a.m.

at Room No. 102/103,1st Floor, International Plaza, Bohra Street. Multan Cantt. to transact the

following business:

ORDINARY BUSINESS :

1. To confirm the minutes of the last Annual General Meeting of the Company dated 31.03.2003.