Habib Sugar Mills : Transmission of the Annual Report for the year ended September 30, 2022

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Contents

Company Information	2
Vision and Mission Statement	3
Code of Conduct	4
Notice of Annual General Meeting	6
Six years' review at a glance	10
Chairman Report	11
Directors' Report	12
Statement of Compliance with Listed Companies Code of Corporate Governance
Regulations, 2019	19

Independent Auditors' Review Report on the Statement of Compliance contained in the Listed Companies (Code of Corporate Governance) Regulations, 2019

Independent Auditors' Report on the Audit of the Unconsolidated Financial Statements

Unconsolidated Statement of Financial Position

Unconsolidated Statement of Profit or Loss

Unconsolidated Statement of Comprehensive Income

Unconsolidated Statement of Changes in Equity

Unconsolidated Statement of Cash Flows

Notes to the Unconsolidated Financial Statements

Independent Auditors' Report on the Audit of the Consolidated Financial Statements

Consolidated Statement of Financial Position

Consolidated Statement of Profit or Loss

Consolidated Statement of Comprehensive Income

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

Pattern of Shareholding

Form of Proxy

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Company Information

Board of Directors	Asghar D. Habib	Chairman
	Ali Raza D. Habib
	Murtaza Habib
	Shams Muhammad Haji
	Farouq Habib Rahimtoola
	Sheikh Asim Rafiq
	Tyaba Muslim Habib
	Khursheed A. Jamal	Chief Executive
Audit Committee	Shams Muhammad Haji	Chairman
	Farouq Habib Rahimtoola	Member
	Tyaba Muslim Habib	Member
Human Resource &	Tyaba Muslim Habib	Chairperson
Remuneration Committee	Shams Muhammad Haji	Member
	Khursheed A. Jamal	Member
Chief Financial Officer	Amir Bashir Ahmed
Company Secretary	Imran Amin Virani
Registered Office	3rd Floor, Imperial Court,
	Dr. Ziauddin Ahmed Road,
	Karachi-75530
	Phones : ([phone] - 5 Lines
	Fax	: ([phone]
	www	: habibsugar.com
	E-mail : [e-mail]
Mills	Sugar & Distillery Division
	Nawabshah District Shaheed Benazirabad
	Phones : ([phone] - 5 Lines
	Fax	: ([phone]
	Textile Division
	D-140/B-1 Mangopir Road
	S.I.T.E. Karachi-75700
	Phones : ([phone], 32572119
	Fax	: ([phone]
Bulk Storage	Terminal
	60/1-B Oil Installation Area
	Keamari Karachi-75620
	Phones : ([phone]
	Fax	: ([phone]
Bankers	Allied Bank Limited
	Bank AL Habib Limited
	First Women Bank Limited
	Habib Bank Limited
	Habib Metropolitan Bank Limited
	MCB Bank Limited
	Meezan Bank Limited
	National Bank of Pakistan
	United Bank Limited
Statutory Auditors	Grant Thornton Anjum Rahman
	Chartered Accountants
Cost Auditors	Haroon Zakaria & Co.
	Chartered Accountants
Share Registrar	THK Associates (Pvt.) Limited
	Plot No. C-32, Jami Commercial Street-2
	D.H.A. Phase VII, Karachi.
	UAN	: ([phone]
	Phone	: ([phone]
	Fax	: ([phone]
	E-mail	: [e-mail]

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VISION STATEMENT

We aim to be a leading manufacturer and supplier of quality sugar, ethanol, liquidified carbon dioxide (CO2) and household textiles in local and international markets. We aspire to be known for the quality of our products and intend to play a pivotal role in the economic and social development of Pakistan.

MISSION STATEMENT

As a prominent producer and supplier of sugar, ethanol, liquidified carbon dioxide (CO2) and household textiles, we shall continue to strive to achieve excellence in performance and aim to exceed the expectations of all stakeholders. We target to achieve technological advancements to inculcate the most efficient, ethical and time tested business practices in our management.

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Code of Conduct

The founders of Habib Sugar Mills Limited were visionaries who established the company on very sound principles and envisioned its development and growth on the basis of making no compromises in any aspects of business practices. The company takes pride in adherence to its principles and continues to serve its customers, stakeholders and society based on the following guidelines:

Products

• To produce refined, high-grade sugar that is edible and hygienic and provides all the nutrition and food value at standards determined by the company, which would exceed industry norms and averages.
• To produce by-products and allied products including molasses, ethanol and liquidified carbon dioxide (CO2).
• To diversify into other products such as home textiles thus consuming indigenous raw material and generating export earnings.

Systems & Processes

• To regularly update and upgrade manufacturing systems and processes so as to keep abreast with technological advancements, achieve economies of production and transfer knowledge and skill to workers.
• To develop and maintain the technical and professional standards, standard operating procedures and stringent quality control measures with on-line quality assurance at every stage of manufacture.
• To continuously conduct product research and develop new products, while improving upon the existing products, using ideal additives and packaging material.
• To regularly maintain, replace and upgrade all machinery and equipment for smooth working, optimum output and ensure safe working in all production units.
• To maintain a smooth work-flow in all departments with an effective communication system contained within the framework of principles yet allowing the required degree of autonomy for efficient functioning.

Management & Employees

• To employ only the appropriately suited human resource through the selection and recruitment process based on the commensurate qualifications and experience criteria without any non-professional considerations, without any bias or prejudice of race, cast, colour, creed or religious beliefs.
• To ensure that all management personnel are adequately qualified to perform management functions as assigned.
• To guide, direct and motivate employees to perform functions and to recognize and reward employees based on their performance outputs.
• To measure employee's performance by a pre-determined criteria so as to be fair and equitable towards every single employee.
• To ensure that all employees work towards achievement of corporate objectives, individually and collectively as a team and conduct themselves at work and in society as respectable employees and responsible citizens.

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• To regularly train all employees at all levels to improve their knowledge and skill and provide employees with a career path whereby they can seek a planned betterment in their professional and personal life.
• To ensure that all employees and management personnel strictly adhere to the company rules and regulations and observe the best codes of conduct and abide by all laws of Pakistan.
• To make timely payment of salaries, wages and all allowances and benefits to all employees in line with their terms.
• To ensure all directors and employees of the company shall undertake such activities, whether personal or professional, that in no way conflicts with the interests of the company but contributes towards the betterment, development and growth of the organization in particular and the industry in general.

Financial

• To implement an effective, transparent and secure financial reporting and internal control system so as to ensure compliance with regulatory factors as well as meet all obligations of payable and receivables and keep investors, shareholders and management fully aware.
• To ensure effective utilization of all company resources and plan and operate resource utilization in order to produce better results and generate better yields and facilitate timely decisions.
• To place a strict Internal Audit system to study, analyze, review and report all company earning and spending and enhance reliability of all financial information and build shareholders confidence.
• To regularly prepare, as per pre-determined schedules, all financial reports and present accounts to the Board for review and analysis and show trends based on company income, revenues and expenses and industry trends.
• To ensure cost effectiveness and purchase goods and services based on developed criteria, vendor assessment and market competitiveness and evaluate options on prices, terms, products/services, substitute available, prior to purchase.
• To ensure timely and proper payments as per negotiated terms to all suppliers and deduct applicable taxes so as to enhance corporate credibility and image.
• To maintain an excellent relationship with bankers and utilize banking facilities in a manner to benefit company whilst making proper use of funding and facilities available and ensuring no defaults.

Adherence to Law

• The company shall at all times strictly adhere to all laws of the country and fulfill all statutory requirements and ensure timely, proper and full payment of all applicable taxes, rates, duties and/or any other levies as may be imposed from time to time.

Environment

• The company shall use all means to ensure a clean, safe, healthy and pollution free environment not only for its workers and employees but for the well being of all people who live in and around any of the production and manufacturing units and employ such technology as may be beneficial in maintaining a healthy and hygienic working and living environment.

Planning

• The company shall prepare an annual plan with clearly defined objectives, goals and strategies and implement those plans with a close watch on achievements and monitor and control measures shall be built in to ensure achievement of objectives and enhancement of corporate image.

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