MEHRAN SUGAR MILLS LIMITED
Annual Reports 2003
VISION STATEMENT
Focusing on customers' and shareholders1
satisfaction with challenging spirit and
flexibility, we are dedicated to have
eminent position in manufacturing and
supplying quality white refined sugar and
allied products and thereby play a vital
role in the socio-economic development
of the country.
COMPANY INFORMATION
BOARD OF DIRECTORS
Mr. Mohammed Kasim Hasham			Chairman
Mr. Mohammed Ebrahim Hasham			Chief Executive Officer
Mr. Mohammed Hussain Hasham
Mr. Khurram Kasim
Mr. Ahmed Ebrahim Hasham
Mr. Abdul Razzaq Usman
Mr. Mohammed Iqbal
Mr. Rao Mohammed All
Mr. Ghulam Yasin (ICP)
Audit Committee
Mr, Mohammed Kasim Hasham			Chairman
Mr. Mohammed Hussain Hasham
Mr. Ahmed Ebrahim Hasham
Company Secretary &
Chief Financial Officer
Mr. Roop Chand Panjwani, ACA
Auditors
M/s. Gangat & Company
Chartered Accountants
Cost Auditor
M/s. Haroon Zakaria & Company
Chartered Accountants
Legal Advisor
Sayeed & Sayeed
Advocates & Legal Consultants
Bankers
Muslim Commercial Bank Limited
Bank Alfalah Limited
Habib Bank AG Zurich
Bank AI-Habib Limited
PICIC Commercial Bank Limited
Registered Office			Mills
Adamjee House, 8th Floor,			Tando Allahyar, Distt. Hyderabad, Sindh
I.I. Chundrigar Road, Karachi			Tel       : (92-223 1 ) 890856, 890407, 89 1 984
Tel       : (92-21) 2417131-4			Fax     : (92-223 1)890568
Fax     :(92-21)2416477			E-mail : msmtda@yahoo.com
E-mail : msm@mehransugar.com
URL     : www.mehransugar.com
CORPORATE MISSION
PREAMBLE
We the management of Enterprise, have set forth our belief as to the purpose for which
the Company is established and the principles under which it should operate.
We pledge our efforts to the accomplishment of the purpose within the agreed
principles.
BASIC PURPOSE
The basic purpose of Enterprise is to perpetuate as a Public Limited Company engaged
in manufacturing and marketing white refined cane sugar, food products, sugar by
products and other products wherein management or sponsors have expertise. In
addition we preserve to assume a leadership position in related industry regarding:
quality of the product, cost effectiveness, turnover and technology.
WHAT WE DO
Our main business area is the production of refined cane sugar and sugar by-products.
We recognize the value of technological improvement keep in step with the latest
innovations and developments in our field. We believe in modern management
practice and use latest techniques. We constantly train our people and keep them
highly motivated as they are our most important assets. We strongly believe in integrity
in business and integrity of Mehran depends on integrity of each one of its employees.
We consider our farmers who are our raw material suppliers as the most important
part of our business
By continuously striving, we aim to generate earnings sufficient to ensure a secure
future for the company and to protect and increase shareholder investment,
CORPORATE PROFILE
DATE OF INCORPORATION			December 22, 1965
DATE OF COMMENCEMENT
OF BUSINESS			March 19, 1966
START OF PRODUCTION AT
TAN DO ALLAH YAR			January 1969
DATE OF BMR & EXPANSION			1993-1994
INSTALLED CAPACITY			7,000 Tons cane crushing per day
TOTAL LAND AREA			1 1 8 Acres
PERMANENT EMPLOYEES			Officers: 57
			Workers: 315
OFFICES
HEAD OFFICE			Karachi
FACTORY			Tando Allahyar - 40 Km from Hyderabad
FACILITIES AT THE MSM STAFF COLONY
HOUSING			96 Family Homes for Executives and Workers
POPULATION OF THE
STAFF COLONY			Approximately 381
CHILDREN AT THE
DAWOOD MEMORIAL SCHOOL			305
OTHER FACILITIES			-  Mosque
			-  Clinic with Ambulance
			-  Dawood Memorial School for children of
			MSM employees as well as children of near-
			by towns
			-  Recreation centres for Executives, Workers
			and Ladies with Indoor Games, TV, Videos,
			Dish Antennas, and other facilities
			- Cricket ground, Tennis court, Park and Rose
			garden
			-  School bus for pick and drop services to
			school and college
			-  Private Electric Generator for uninterrupted
			power supply
			-  Clean water supply with UV filters
			- Transport facility for city & adjoining areas
NOTICE OF ANNUAL GENERAL MEETING
NOTICE is hereby given that the 38th Annual General Meeting of the Company will be held on
Saturday, January 31, 2004 at 11:00 a. m. at ICAP Auditorium, Chartered Accountants Avenue,
Clifton, Karachi to transact the following business:
Ordinary Business
1.       To confirm the minutes of the 37th Annual General Meeting held on January 28, 2003;
2.       To receive, approve and adopt the Audited Financial Statements of the Company for
the year ended September 30, 2003 together with the Directors' and Auditors' Reports
thereon;
3.       To appoint Auditors for the year ending September 30, 2004 and fix their remuneration.
The present Auditors M/s. Gangat & Co., Chartered Accountants stand retired as they
have completed five years of statutory audits. The clause xli of the Code of Corporate
Governance requires that all listed companies are required to change their external
auditors every five years. Hence, the Board of Directors based on the recommendations
of the Audit Committee has recommended and further a shareholder has proposed that
M/s. Ford Rhodes Sidat Hyder & Co., Chartered Accountants be appointed as Auditors
of the Company for the year ending September 30, 2004 in place of the retiring auditors.
Special Business
4.       To consider and if thought fit, to pass the following resolution as a special resolution under
section 208 of the Companies Ordinance, 1984 (the Ordinance):
"IT IS HEREBY RESOLVED THAT:
(a)  The consent and approval of the Company be and is hereby accorded under
section 208 of the ordinance for making investment of Rs. 48,000,000 (Rupees forty
eight million only) through purchase of ordinary shares of the said value of an
associated undertaking of the Company M/s. Unicol Limited, a public unquoted
company.
(b)  The Chief Executive Officer of the Company be and is hereby authorized to singly
do all acts deeds, and things and take any or all necessary actions to
purchase/acquire/subscribe to the ordinary shares of M/s. Unicol Limit as he thinks
fit on behalf of the Company."
5.       To transact any other business with the permission of the Chair.
By Order of the Board of Directors
Roop Chand Panjwani
Company Secretary
Karachi: January 07, 2004
Notes
1.       The share transfer books of the Company will remain close from January 24, 2004 to
January 31, 2004, (both days inclusive) and no transfers will be registered during that
period.
2.       A member entitled to attend and vote at the Annual General Meeting may appoint
another member as his/her proxy to attend and vote in his/her behalf. Proxies in order
to be effective must be received by the Company at its Registered Office not later than
48 hours before the time of the meeting.
3.       The Shareholders whose shares are registered in their account/sub-account with the
Central Depository System (CDS) are requested to bring NIC alongwith their account
number in CDS and participant's ID number for verification. In case of appointment of
proxy by such account holders and sub-account holders the guide lines as contained
in SECP's circular 1 of 26th January, 2000 to be followed.
4.       The Shareholders are requested to notify the Company immediately the change in their
address, if any.
5.       The shareholders are also requested to intimate us their NIC # to implement the requirements
of Annual Returns (Form A) which the company is required to file with the SECP u/s. 156
of the Companies Ordinance, 1984.
6.       A statement under section 160 (1) (b) of the Ordinance pertaining to the special business
is being sent to the members along with notice of the meeting.
Statement as required u/s 160(l)(b) of the Companies
Ordinance, 1984
The Board of Directors has proposed to invest a sum of Rs.48 million through purchase of ordinary
shares of M/s. Unicol Limited, an associated undertaking. As required u/s 160(l)(b)of the
Companies Ordinance, 1984, the material facts in respect of M/s. Unicol Limited (the company)
are as under:
The company was incorporated on 25th November 2003 as a public unquoted company
with an authorized capital of Rs.300 million divided into 30 million shares of Rs.10/- each.
The issued, subscribed and paid-up capital would be Rs.144 million.
The Directors of the company are as follows:
Mr. Aslam Faruque                                -                       Chairman
Mr. Tariq Faruque
Mr. Khurram Kasim
Mr. Ahmed Ebrahim Hasham
Mr. Jahangir Adam
Mr. Anis Dhanji
The company is setting up a Distillery Plant to produce 100,000 liters Ethanol per day. The
estimated cost of the project is Rs.360 million including the cost of imported plant and
machinery. The company is in the process to acquire 30 acres of land in Mirpurkhas for
Rs.2.6 million for setting up the Plant.
The management of the company is in process of negotiating with various banks and
financial institutions for financial assistance to the tune of Rs.216 million, maintaining the
debt equity ratio at 60:40.
Letters of credit for import of plant, machinery and equipment required for the project
will be established soon.
The directors are interested to the extent of the shares to be held by them in the company.
DIRECTORS' REPORT TO THE SHAREHOLDERS
Dear Mehran Shareholders,
The Directors of the Company have pleasure in presenting the 38th
Annual Report of the Company for the year ended September 30,
2003 together with the Audited Financial Statements and Auditors'
Report thereon.
ECONOMY
The GDP growth is targeted at 5.3% against 3.6% actual during the
last year; targeted growth in the agriculture and large-scale
manufacturing is 4.2% and 8.8% respectively. The growth