Sanghar Sugar Mills : Transmission of Annual Report for the Year Ended September 30, 2022

SANGHAR SUGAR MILLS LIMITED	Annual Report 2022

Table of Contents
COMPANY INFORMATION
Company Information	2
Statement of Vision, Mission, Corporate Objectives and Strategy & Strategic Planning	3
Code of Conduct	4
INFORMATION FOR SHAREHOLDERS
Notice of Annual General Meeting (English & Urdu)	5
CORPORATE GOVERNANCE
Chairman's Review (English & Urdu)	15
Directors' Report (English & Urdu)	18
Report on Corporate Social Responsibility (English & Urdu)	49
Risk Management Framework & Methodology	59
Terms of References of the Committees	64
An abstract of Policy for Corporate Social Responsibility	68
An abstract of Policy for Directors' Remuneration & Meeting Fee	70
An abstract of Policy for Related Party Transactions & Their Records	72
An abstract of Policy for Gender Diversity	76
An abstract of Policy for Whistleblowing	78
Report of the Audit Committee	82
Independent Auditor's Review Report on the Statement of Compliance contained in
Listed Companies (Code of Corporate Governance) Regulations, 2019	84
Statement of Compliance with the Listed Companies (Code of Corporate Governance) Regulations, 2019	85
FINANCIAL HIGHLIGHTS
Key Operating and Financial Highlights	88
Graphical Presentation of Financial Highlights	89
Horizontal Analysis of Financial Statements	90
Vertical Analysis of Financial Statements	91
Stakeholder Engagement, Investor Relations & Financial Ratios	92
Statement of Value Addition and its Distribution	94
Graphical Presentation of Value Distribution	95
FINANCIAL STATEMENTS
Independent Auditors' Report to the Members	96
Statement of Financial Position	100
Statement of Profit or Loss	101
Statement of Comprehensive Income	102
Statement of Changes in Equity	103
Statement of Cash Flows	104
Notes to the Financial Statements	106
OTHER INFORMATION
Pattern of Shareholding	147
Form of Dividend Payments through Electronic Mode (English & Urdu)	149
Form of Consent to receive Notices and Audited Financial Statements through email (English & Urdu)	151
Form of Consent to receive Hard Copies of Notices and Audited Financial Statements (English & Urdu)	153
Important Notice Implementation of Section 72 of the Companies Act, 2017
Conversion of Physical Shares into Book-Entry Form (English & Urdu)	155
Form of Proxy (English & Urdu)	157

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SANGHAR SUGAR MILLS LIMITED	Annual Report 2022

Company Information

BOARD OF DIRECTORS
Mr. Ghulam Dastagir Rajar	(Chairman)
Mr. Ghulam Hyder	(Chief Executive)
Haji Khuda Bux Rajar	(Executive Director)
Mr. Shahid Aziz
Mr. Rahim Bux
Mr. Muhammad Qasim
Mr. M. Abdul Jabbar
Ms. Nazia Azam
BOARD COMMITTEES
AUDIT COMMITTEE
Mr. Rahim Bux	(Chairman)
Mr. Shahid Aziz
Mr. M. Abdul Jabbar

HUMAN RESOURCE & REMUNERATION COMMITTEE

Mr. Rahim Bux	(Chairman)
Mr. Ghulam Hyder
Mr. M. Abdul Jabbar

INFORMATION TECHNOLOGY & STEERING COMMITTEE

Mr. Ghulam Hyder

(Chairman)

Syed Rehan Ahmad Hashmi

Mr. Sheraz Khan

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

Mr. Ghulam Dastagir Rajar	(Chairman)
Mr. Muhammad Qasim
Ms. Nazia Azam
Syed Rehan Ahmad Hashmi
RISK MANAGEMENT COMMITTEE
Mr. Shahid Aziz	(Chairman)
Haji Khuda Bux Rajar
Mr. Ghulam Dastagir Rajar

COMPANY SECRETARY

Mr. Muhammad Mubeen Alam

CHIEF FINANCIAL OFFICER

Syed Rehan Ahmad Hashmi

STATUTORY AUDITOR

Kreston Hyder Bhimji & Co.

Chartered Accountants

COST AUDITOR

A. D. Akhawala & Co.

Chartered Accountants

SHARE REGISTRAR

Hameed Majeed Associates (Pvt) Limited

Karachi Chambers, Hasrat Mohani Road

Karachi.

Phone: [phone]

Fax: [phone]

LEGAL ADVISOR

Rafiq Kalwar & Dars Law Associates, Advocates & Corporate Counselors, Office # 412, 4th Floor, Clifton Centre, DC-1, Block 5, Clifton, Karachi

BANKERS

Islamic

Al-Baraka Bank (Pakistan) Limited

Bank Islami Pakistan Limited

Meezan Bank Limited

Conventional

Bank Al-Habib Limited

MCB Bank Limited

National Bank of Pakistan

Soneri Bank Limited

United Bank Limited

REGISTERED / HEAD OFFICE

Office No. 204, 2nd Floor, Clifton Centre, Block - 5, Clifton, Karachi

Phone: [phone] to 43 (3 lines)

Fax: [phone]

Website: www.sangharsugarmills.com

E-mail: [e-mail]

MANUFACTURING FACILITIES

13 K.M., Sanghar - Sindhari Road

Deh Kehore, District Sanghar, Sindh

Phone: [phone]

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SANGHAR SUGAR MILLS LIMITED	Annual Report 2022

Statement of Vision, Mission,

Corporate Objectives and Strategy

&

Strategic Planning

VISION STATEMENT

To have eminent position in manufacturing and supplying quality white refined sugar and allied products and thereby play an important role in the economic 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 environment.
• 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 the time, the return to its shareholders. To achieve this objective, the Company shall endeavor to ensure long term viability of its business and to manage effectively its relationship 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 the 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 during the course of dealings with the interested parties and refrain from acting in any manner which 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

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

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

o 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.

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SANGHAR SUGAR MILLS LIMITED	Annual Report 2022

Code of Conduct

The entire Organization of Sanghar Sugar Mills Limited will be guided by the following principles of Code of Conduct 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 decisions 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's 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 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 AND WORKERS

• 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.

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