Sanghar Sugar Mills Limites

Annual Reports 2003

CONTENTS

COMPANY INFORMATION

BOARD OF DIRECTORS

STATUTORY AUDITORS

Haji Khuda Bux Rajar

Hyder Bhimji & Co.

(Chairman / Chief Executive)

Chartered Accountants

Jam Mitha Khan

Mr. Muhammad Anwar Adil

COST AUDITORS

Mr. Ghulam Dastagir Rajar

Siddiqi & Company

Qazi Shamsuddin

Cost & Management Accountants

Mr. Rashid Abdul Mateen

Mr. Farooq Hassan (Nominee of NIT)

REGISTERED OFFICE

Mr. Behram Hasan (Nominee of NIT)

101- First Floor, Ocean Centre,

Talpur Road, Karachi

Phone:021-2427171-72

Fax No: 02 1-24 10700

BOARD AUDIT COMMITTEE

FACTORY

Mr. Ghulam Dastagir (Chairman)

13th Km, Sanghar - Sindhri Road,

Mr. Farooq Hassan (Member)

Deh Kehar, District Sanghar,

Mr. Rashid Abdul Mateen (Member)

Phone : (02346) 42000 - 42043

GENERAL MANAGER OPERATIONS

COMPANY SECRETARY

BANKERS

Mr. Abdul Gafoor Ateeq

Allied Bank of Pakistan

Habib Bank Ltd.

Muslim Commercial Bank Ltd.

CHIEF FINANCIAL OFFICER

National Bank of Pakistan

Mr. Muhammad Jawad Durrani

PICIC Commercial Bank Ltd.

STATEMENT OF VISION, MISSION, OBJECTIVES,

CORPORATE STRATEGY AND STRATEGIC PLANNING

VISION STATEMENT

To have eminent position in manufacturing and supplying quality white refined sugar and allied products and thereby

play important role in the econoic and social development of the country.

MISSION STATEMENT

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 entire efforts to the accomplishment of the purpose within the

agreed principles. Sanghar Sugar Mills Limited is committed to:

Manufacture to the highest quality standards. Pursuing the improvement in shareholders' value through team work

and continuous improvement in the system in a competitive business envrironment.

Be ethical in practice and fulfill social responsibilities.

Ensure a fair return to stakeholders.

Realize responsibility towards society and contribute to the environment as good corporate citizen.

CORPORATE OBJECTIVES

The over riding objective of the Company is to optimize over time the return to its shareholders. To achieve this objective,

the Company shaii endeavor to ensure long term viability c' its business and to manage effectively its relatfonship with

stakeholders. Sanghar Sugar Mills Limited shall:

Recognize the need of working at the highest standard to achieve greater level of performance in order to meet the

expectations of the stakeholders.

Optimize over time the returns to shareholders of the Company.

Strive for excellence and build on the Company's core competencies.

Conduct Company's business with integrity and supply only quality and credible information.

Respect confidentiality of the information acquired duiing the course of dealings with the interested parties and

refrain from acting in any manner whi^h might discredit the Company.

Operate within the regulatory framework and be free of any vested interest which might be incompatible with

Organization's integrity, objectivity and independence.

CORPORATE STRATEGY

Production of sugar and sugar by-products are the Company's main area of business. The Company, its Director and

Management:-

Believe in diversification through new manufacturing facilities and through equity participation.

Recognize the value of technological improvement and acquire the benefits of current innovation and development

in their business field.

Believe in professional management and modern practices and use latest techniques available for growth and

overall prosperity.

Consider their human resource as the most important asset and help them in providing facilities with regard to

training and updating their knowledge and skill and keep them highly motivated.

Believe in integrity in business and the Company's integrity depends on integrity of each one of its employees.

Consider the sugar cane growers as the most important part of the business.

STRATEGIC PLANNING

Keep up with technological advancement and continuously update the company in the filed of sugar technology.

Maintain all relevant technical and professional standards to be compatible with the requirement of the trade.

Gauge the market conditions and availability of substitute products and services and ensure quality with cost

effectiveness.

Inculcate efficient, ethical and time tested business practice in the Company's management.

STATEMENT OF ETHICS AND BUSINESS PRACTICES

The entire Organization of Sanghar Mills Limited will be guided by the following principles in its pursuit of excellence

in all activities for the attainment of the Company's Objectives.

THE COMPANY

Fulfills all statutory requirements of the government and follows all applicable laws of the country together with

compliance with accepted accounting principles, rules and procedures required.

Activities and involvement of directors and employees of the Company in no way conflict with the interest of the

Company. All acts and decision of the management are motivated by the interest of the Company rather their own.

Uses all means to protect the environment and ensures health and safety of the employees.

Meets the expectations of the spectrum of society and government agencies by implementing an effective and fair

system of financial reporting and internal controls.

Deals with all stakeholders in objective and transparent manner so as to meet the expectations of those who rely on

the Company.

Ensure efficient and effective utilization of its resources.

AS DIRECTORS

Promote and develop conducive environment through responsive policies and guidelines to facilitate viable and

timely decisions.

Support and adherence to compliance of legal and industry requirements.

Maintain organizational effectiveness for the achievement of the Company goals.

Promote a culture that supports enterprise and innovation, with appropriate short-term and long-term performance

related rewards that are fair and achievable in motivating management and employees effectively and productively.

Ensure protection and safeguard the interest and assets of the Company and meet obligations of the Company.

AS EXECUTIVES AND MANAGERS

Ensure cost effectiveness and profitability of operations.

Provide direction and leadership for the organization and take viable and timely decisions.

Promote and develop culture of excellence, conservation and continual improvement.

Develop and cultivate work ethics and harmony among colleagues and as associates.

Encourage initiatives and self realization in employees through meaningful empowerment.

Provide pleasant work atmosphere and ensure an equitable way of working and rewarding system.

institute commitment to environmental, health and safety performance.

AS EMPLOYEES ANDl/VORKERS

Observe Company policies, regulations and code of best business practices.

Devote productive time and continued efforts to strengthen the Company.

Make concerted struggle for excellence and quality.

Exercise prudence in effective, efficient and economical utilization of resources of the Company.

Protect and safeguard the interest of the Company and avoid conflict of interest.

Maintain financial integrity and must avoid making personal gain at the Company's expense by participating in or

assisting activities which compete with the Company.

NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that Eighteenth Annual General Meeting of Sanghar Mills Limited will be held on Saturday January 31, 2004 at

3:00 p.m. at Beach Luxury Hotel, Moulvi Tamizuddinn Khan Road, Karachi, to transact the following business:

Ordinary Business

1. To confirm the minutes of Seventeenth Annual General Meeting held on January 31, 2003.

2. To receive, consider and adopt the Audited Accounts of the Company for the year ended September 30, 2003, together with

Report of Directors and Auditors thereon.

3. To appoint Auditors for the year 2003-2004 and fix their remuneration. The present Auditors M/s Hyder Bhimji & Co., Chartered

Accountants, retire and being eligible have offered themselves for re-appointment.

4. To transact any other ordinary business, with permission of the Chair.

Special Business

5. To consider and if thought fit, to pass, with or without modification, a Special Resolution for the insertion of two new sub-clauses in

the Objects Clause i.e. Clause III of the "Memorandum of Association of the Company as stated hereunder.

"RESOLVED AS SPECIAL RESOLUTION that two new sub-clauses namely sub-clause (33A) and (33B) be inserted after the

existing sub-clause (33) of Clause III of the Memorandum of Association to read as under:

"(33A) To set up and operate power generating project, whether through oil-fired, gas, hydel, thermal power or any other mode,

for generating and supplying of electric power and to carry out all necessary power stations, cables, wires, lines,

accumulators, lamps and works and to generate accumulate distribute and supply electricity whether for self use or to

light industries and places, both public and private, cities, towns, streets, docks, markets, theatres, buildings and for all

other purposes for which electric energy can be employed."

"(33B) To let out or sub-let on hire any property o