Baba Farid Sugar Mills : 42nd Annual Report 2020

BABA FARID

S U G A R M I L L S L I M I T E D

GROWING

ABETTER

TOMORROW

REPORTANNUAL2020

TABLE OF
CONTENTS
Company Information........................................................................................................................................	2
Vision Statement, Mission Statement, Corporate Strategy, Core Values..................	3
Notice of Annual General Meeting.........................................................................................................	4
Statement of Material Facts .......................................................................................................................	8
Chairman's Review..............................................................................................................................................	9
Director's Report................................................................................................................................................	11
Director's Report Urdu...................................................................................................................................	15
6 Years Operating Results...........................................................................................................................	19
Pattern of Holding of Shares.....................................................................................................................	20
Categories of Share Holders....................................................................................................................	21
Code of Corporate Governance.............................................................................................................	23
Review Report to the Members..............................................................................................................	26
Independent Auditor's Report to the Members.........................................................................	27
Statement of Financial Position .............................................................................................................	33
Statement of Profit or Loss.........................................................................................................................	34
Statement of Comprehensive Income..............................................................................................	35
Statement of Cash Flows.............................................................................................................................	36
Statement of Changes in Equity............................................................................................................	37
Notes to the Financial Statements.......................................................................................................	38
Proxy Form

ANNUAL REPORT 2020 1

COMPANY

INFORMATION

BOARD OF DIRECTORS

Mrs. Qaiser Shamim Khan	Chairperson
Mr. Adnan Ahmed Khan	Chief Executive
Mr. Muhammad Shamim Khan	Executive Director
Mr. Nauman Ahmed Khan	Non-Executive
Mrs. Sarah Hajra Khan	Non-Executive
Mr. Farid ud Din Ahmed	Independent Director
Mr. Malik Manzoor Hussain Humayoon	Independent Director
CHIEF FINANCIAL OFFICER
Mr. Wasif Mahmood
COMPANY SECRETARY
Mr. Muhammad Imran
AUDITORS
BDO Ebrahim & Co.
Chartered Accountants
F-2, First Floor, Grace Centre,
Canal Bank Road, 1-B Canal Park,
Gulberg-II, Lahore
Tel: [phone]
Fax: [phone]
Email: [e-mail]
MILLS
5 K.M. Faisalabad Road, Okara
Tel: [phone]
Fax: [phone]
BANKERS
Habib Bank Limited
Bank Al-Habib Limited
MCB Bank Limited
Meezan Bank Limited
Bank Alfalah Limited
Soneri Bank Limited
Allied Bank Limited
Askari Bank Limited

HUMAN RESOURCES & REMUNERATION COMMITTEE

Mr. Farid-ud-Din Ahmad	Chairman
Mr. Adnan Ahmed Khan	Member
Mr. Malik Manzoor Hussain Humayoon	Member
AUDIT COMMITTEE
Mr. Farid-ud-Din Ahmad	Chairman
Mrs. Sarah Hajra Khan	Member
Mr. Malik Manzoor Hussain Humayoon	Member
NOMINATION COMMITTEE
Mr. Malik Manzoor Hussain Humayoon	Chairman
Mr. Farid-ud-Din Ahmad	Member
RISK MANAGEMENT COMMITTEE
Mr. Malik Manzoor Hussain Humayoon Chairman
Mr. Farid-ud-Din Ahmad	Member

SHARE REGISTRAR

M/s Corplink (Pvt) Limited

Share Registrar, Wings Arcade,

1-K Commercial Model Town, Lahore.

Tel: [phone],

Fax: [phone]

Email: [e-mail]

REGISTERED OFFICE

2-D-1, Gulberg III, Lahore Tel: [phone] Fax: [phone] Email: [e-mail] Website: www.bfsml.com

LEGAL ADVISOR

M/S Ahmed & Pansota

Advocate and Legal Consutants

20 - Sir Gangaram Mansions

The Mall Lahore

Tel: [phone]

Tel: [phone]

2 ANNUAL REPORT 2020

VISION

STATEMENT

We shall build on our core competencies and achieve excellence in performance to become a leading producer of best quality sugar. In doing so we aim to meet or accede the expectations of all our stakeholders.

Our goal is not only to attain technological advancements in the field of sugar but also to inculcate the most efficient, ethical and time tested business practices in our management.

Furthermore, we shall strive to innovate the ways for the improvement and increase in per acre yield of sugarcane and introduce improved varieties of sugarcane having better yield characters, high sucrose contents, disease and drought resistant and better ratooning crop in the region. We shall introduce the mechanized sugarcane cultivation mehtod to the growers and to educate regarding latest developments of agriculture technology and free consultancy of professionals.

MISSION

STATEMENT

We aim to be a leading producer and supplier of quality sugar by adopting the most technological advancement. We intend to play a pivotal role in the economic development of Pakistan.

CORPORATE

STRATEGY

Our corporate strategy and objectives for the future are to find new and improved means of cost reduction, fuel economy and to acquire advanced manufacturing capabilities to support our product development efforts and product line expansion and stand ready to leverage our debt and be responsive to the changing economic scenario. We believe in harnessing the inherent strengths of available human resource and materials to the utmost and a commitment for building a solid foundation poised for sustainable growth for the long-term benefit of our shareholders and employees.

CORE VALUES

Strive for excellence and build on our core competencies.

Keep up with technological advancements in our biological control laboratory and extend the Research & Development Programme to control sugarcane crop diseases.

Inculcate efficient, ethical and time tested business practices in our management.

Work as a team and support each other.

Put the interest of the company before that of the individuals.

ANNUAL REPORT 2020 3

NOTICE OF ANNUAL

GENERAL MEETING

Notice is hereby given that the 42nd Annual General Meeting of the Shareholders of the Baba Farid Sugar Mills Limited will be held on Saturday, January 23, 2021 at 03.00 p.m. at Registered Office, 2-D-1, Gulberg III, Lahore and through electronically video link/Zoom application, to transact the following business:

ORDINARY BUSINESS:

1. To Confirm minutes of the 41st Annual General Meeting of the Baba Farid Sugar Mills Limited held on 27-01-2020.
2. To receive, consider and adopt the Annual Audited Financial Statements of the Company for the financial year ended
   30th September 2020 together with the Auditor's and Board of Directors' reports thereon.
3. To appoint Auditors of the Company for the next financial year 30th September, 2020-21 and to fix their remuneration. The present Auditors, M/s. BDO Ebrahim & Co. Chartered Accountants, Lahore, retired and being eligible, have offered themselves for reappointment as Auditors of the Company.

SPECIAL BUSINESS:

4. To consider and approve the transactions carried out with related parties in normal course of business and if thought fit to pass the following resolutions as special resolutions with or without modification.

1. "RESOLVED that transactions carried out by the Company in the normal course of business with related parties for the period ended September 30, 2020 be and are hereby ratified, approved and confirmed"

Names	Nature of Transactions	Transactions during
		the period
		Amount (PKR)
Naubahar Bottling Company (Pvt.) Limited	Long term loans (Net) - repaid	65,960,400
	Mark-up charged on Long Term Loan	113,096,406
The Thal Industries Corporation Limited	Purchases - Store items	8,896,967
	Purchase - Plant & Machinery	23,000,000
	Sale - Store Items	322,042
Almoiz Industries Limited	Sale of scrap	13,134,468
	Purchase - Steel items	7,427,833

1. "FURTHER RESOLVED THAT the Chief Executive Officer of the Company or his nominee be and is hereby authorized to approve all the transactions to be carried out in the normal course of business with related parties till the next Annual
   General Meeting of the Company and in this connection the Chief Executive Officer of the Company or his nominee be and is hereby authorized to take any and all necessary actions and sign/execute any and all such documents/ indentures as may be required in this regards on behalf of the Company"

5. To transact any other business with the permission of the Chair.

BY ORDER OF THE BOARD

Lahore:	MUHAMMAD IMRAN
December 24, 2020	Company Secretary

4 ANNUAL REPORT 2020