Annual Report 2016
Total Page:16
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Contents Corporate Informaon 02 Company’s Profile 03 Top Management’s Profile 04 Organogram 05 Vision, Mission & Statement of Ethics and Business Pracces 06 Global Presence 07 Nature & Model of Business 08-09 Objecves & Strategies 10-11 2016 At a Glance 12-13 CEO’s Message 14-15 Corporate Governance 16-24 Directors’ Report 25-28 Financial Highlights 29-43 Resource Management 44 Forward Looking Statement & Market Share 45 Responsible Corporate Cizenship & Corporate Sustainability 46-48 Major Events 49 Noce of Annual General Meeng 50 Financial Statements 51-77 Glossary of Terms 78 Annual Report 2016 Corporate Information Board of Directors Bankers Mr. Mukhtar Ahmed (Chairman) Naonal Bank of Pakistan Mr. Khurram Mukhtar (CEO) Habib Bank Limited Mr. Hamid Mukhtar (Director) United Bank Limited Mr. Awais Mukhtar (Director) Askari Bank Limited Mr. Shoaib Mukhtar (Director) Standard Chartered Bank Mr. Imran Noor Mohammad (Director) NIB Bank Limited Mr. Muhammad Ijaz (Director) The Bank of Khyber First Women Bank Limited Director Strategic Planning Mr. Muhammad Iqbal Ghori - FCMA Legal Advisor A.K. Brohi & Company Chief Financial Officer 153-K,Block-2, PECHS, Karachi Mr. Hummayun Shahzad Mirza Auditors Company Secretary Kreston, Hyder Bhimji & Co. Mr. Muhammad Naseeb (Chartered Accountants) Business Center, New Civil Lines, Faisalabad Audit Commiee Mr. Awais Mukhtar (Chairman) Insurance Company Mr. Imran Noor Mohammad (Member) Jubilee Insurance Mr. Iqbal Ghori (Member) Premier Insurance Askari Insurance IGI Insurance HR & R Commiee United Insurance Mr. Shoaib Mukhtar (Chairman) Century Insurance Mr. Hamid Mukhtar (Member) Mr. Iqbal Ghori (Member) Company’s Registered Office /Head Office 2-KM, Sahianwala Road, Khurrianwala, Procurement Commiee Faisalabad 37630 Pakistan. Mr. Mukhtar Ahmad (Chairman) UAN : +92 41 111 010 111 Mr. Awais Mukhtar (Member) Fax : +92 41 8507511-12 Mr. Hamid Mukhtar (Member) Website: www.sadaqatgroup.net E-mail: [email protected] 02 Company’s Proile Sadaqat Limited has a long history of successful business operaons based on highly professional and ethical pracces, focused to achieve total customer sasfacon. Recognized as one of the major industrial business concern in Pakistan, Sadaqat is astutely diversified and includes manufacturing operaons in home texles. The management of the company is commied to the maintenance of internaonal standards, along with a conn- uous effort in actually raising acceptable norms of quality and services in order to be dynamic and at the same me successfully meet the new challenges of ever changing business environment by adopng pro-acve behavior. The company is fully equipped with the capabilies for supplying the desired quality to its valued customers. Sadaqat Limited is renowned for value added home texles like embroidered, pintucked, flocked, beaded, ribboned, gliered & foiling techniques etc. Quality being its moo, the name Sadaqat is synonymous with quality and reliability. History of Glory Half a century ago, the Sadaqat family started its texle business, in Chiniot, near Pakistan's famous city “Faisalabad”. The newly established business was based on the core values of honesty and quality in business. Sadaqat Limited has emerged as a major player in home texle segment owing to its product and market diver- sificaon, value addion and strategic partnership with world’s leading retailers. The Company aims to represent the quintessenal heritage of Pakistan and assimilate it with the latest trends prevalent in the home texle industry. With more than half a century of enriched experience and enchanng spectrum of home texle has earned Sadaqat numerous patrons all across the world. 03 Annual Report 2016 Top Management’s Proile Mr. Mukhtar Ahmed (Chairman) Ex-Chairman-FGCC (Faisalabad Garment City Company) Ex-Chairman- Faisalabad Dry Port Trust 45 years of experience in the texle business. Responsible for the overall corporate affairs & governance maters & to structure the Board, lay solid foundaons for management & oversight while promong ethical & responsible decision making. Mr. Khurram Mukhtar Mr. Imran Noor Muhammad (Chief Execuve Officer) (Director) Chairman BOD - FESCO Member - Young President Organizaon (YPO) Former Chairman PTEA Former Director - Faisalabad Garment City Company Responsible for providing leadership to the Company and developing a strategic plan to advance the Company’s vision, mission and objecves & to promote revenue, profitability and growth for the organizaon. Oversee Company’s operaons to insure producon efficiency, quality, service and cost-effecve management of resources. Mr. Hamid Mukhtar Mr. Muhammad Ijaz (Director) (Director) Member Entrepreneurs' Organizaon (EO) Former Member of ADRC-CBR Mr. Awais Mukhtar Mr. Muhammad Iqbal Ghori FCMA,PURC (US) (Director) (Director Strategic Planning) Member of PIFFC & FIATA Karachi President - ICMA Pakistan Member Young Entrepreneurs Organizaon Chairman Research & Publicaons Commiee (ICMAP) Pakistan (YEOP) Chairman Commiee on Governmental & Public Sector Enterprises Accounng (SAFA) Member of Board of Studies: Naonal University of Modern Languages ISRA University Mr. Shoaib Mukhtar Mr. Hummayun Shahzad (Director) (Chief Financial Officer) President Young Entrepreneurs Organizaon Professional Accounng Affiliate (ICAP) Pakistan (YEOP) Fellow Member (PIPFA) MS Finance Member Entrepreneurs' Organizaon (EO) Former Vice Chairman of PTEA 04 Organogram Board of Directors Audit Commiee Procurement Commiee HR & R Commiee Chief Execuve Officer Strategic & Corporate Internal Audit Finance & Accounts Planning & Control Export & Import Markeng Producon, Operaons Quality Control & & Technical Quality Assurance Informaon HR, Admin & Technology Compliance 05 Annual Report 2016 Vision, Mission, Values & Business Ethics One That Becomes Standard For Others VISION Our mission is to sasfy customers by exceeding their expectaons in terms of quality, service and commitment. By surpassing industry standards, we aim to be recognized as the benchmark MISSION to which our competors aspire. reliability team excellence management safe and change management environmental friendly healthy pracces operaons customer connual focused improvement approach VALUES professional corporate culture We believe in smulang and challenging team oriented work environment that encourages, develops and rewards excellence. We are commied to diligently serving our community and stakeholders while maintaining high standards of moral and ethical values. 06 Global Presence Regions EUROPE UK USA CANADA AUSTRALIA/NEW ZEALAND AFRICA ASIA 07 Annual Report 2016 Nature & Model of Business Intellectual Capital Processes, Reputation, Standards, Certifications Value Creation Chemical & Resources Water Human Capital Dyes, Water, Fabric, Energy Ingredients & Fuel Financial Capital Carton & Plastic Wraper Plastic Packaging Social & Relationship Capitaltal Suppliers, Customers, Communities Products Water & Eco-system Our business model is central to our ability of creang and sharing value with our stakeholder through use of different capitals 08 Value Addition Sales / Distribution Customers Value Distribution Duties & Taxes to Government Dividend/ Interest to Shareholders & Investors Value Shared Salariesli &W& Wages to Employees Payment to Suppliers Community Investments 09 Annual Report 2016 Objectives and Strategies 06 OVERALL Objective Strategic Objecves 05 Objective To improve, 04 monitor and strengthen internal Objective To processes to achieve connue to efficiencies, improve outperform the organizaonal 03 structure and ensure market through the best ulizaon of Objective To product and market available resources seek and diversificaon, 02 target quality, innovaon, value safety and compliance addion, and strategic partnerships with To in culture from design Objective world leading retailers meet development to dynamic needs of customer services and 01 technology up-grada- to focus on achieve- on and automaon ment of customer Objective To and to counter any sasfacon in true target obsolescence in passion compeve technology by posion on the cost persistently invesng curve while ensuring to in modernizaon and To act as stewards of the automaon in maintain environment complying producon facilies and improve with the highest and systems profitability and applicable safety global presence while standards and making focusing on process posive economic and social contribuons to innovaon and communies manufacturing adeptness to enable us to stay a market leader for our products Management's strategies and significant changes The Management has adopted concentric diversificaon policy by adding the products and markets with the aim to achieve strategic fit. The Company has implemented its well-arculated CAPEX plan and the investments it is making in strategic growth areas underpin Company’s strategy. It is deploying best technology aimed towards innovaon, minimizaon of waste and maximizaon of quality and customer sasfacon. This year management has focused towards implementaon of new design of internal controls system and implementaon of a robust risk management system for idenficaon and migaon of business risks. The management is accordingly set a high priority to ensure accurate data processing, effecve and efficient communicaon, streamlined business processes and accumulaon of market intelligence. The Management is pung efforts and developing strategies for environment preservaon while adopng all the possible means for environmental protecon such as establishing and implemenng SOPs for GHG emission