Saif Group 30th Annual Report 2019 Saif Textile 0335-5557717 Mills Limited DESIGN MEDIA INC. Saif Textile Mills Limited rd Certified ISO 9001:2008 3 Floor, City Centre, Plot#40, Main Bank Road, Certified ISO 14001:2004 Saddar Cantt., Pawalpindi Designed and Produced by: and Produced Designed Saif Group Tel: +92-51-5700824-8, Cell: +92-300-5000395 Annual Report 2019 1 2 Saif Textile Mills Limited Contents PATTERN OF CORPORATE INFORMATION 03 SHAREHOLDINGS 28 STATEMENT OF COMPLIANCE VISION AND MISSION STATEMENT 04 WITH THE (CODE OF CORPORATE 32 GOVERNANCE) REGULATIONS, 2017 06 KEY PERFORMANCE INDICATORS INDEPENDENT AUDITOR’S 34 REPORT TO THE MEMBERS INDEPENDENT AUDITORS’ REVIEW GEOGRAPHICAL SPREED 07 REPORT ON THE STATEMENT OF COMPLIANCE CONTAINED IN 40 QUALITY STATEMENT, OUR THE LISTED COMPANIES ( CODE PRODUCTS AND CUSTOMERS 08 OF CORPORATE GOVERNANCE ) REGULATIONS, 2017 ORGANIZATION CHART 09 STATEMENT OF FINANCIAL 42 POSITION NOTICE OF 30TH ANNUAL 10 GENERAL MEETING STATEMENT OF PROFIT OR LOSS 44 CHAIRMAN’S REVIEW REPORT 13 STATEMENT OF OTHER COMPREHENSIVE INCOME 45 DIRECTOR’S REPORT TO THE 14 SHAREHOLDERS STATEMENT OF CASH FLOWS 46 CORPORATE SOCIAL 23 RESPONSIBILITY STATEMENT OF CHANGES IN 47 EQUITY HORIZONTAL & VERTICAL ANALYSIS 24 NOTES TO THE FINANCIAL 48 STATEMENTS GRAPHICAL ANALYSIS 26 PROXY FORM 98 Annual Report 2019 3 4 Saif Textile Mills Limited COMPANY INFORMATION BOARD OF DIRECTORS BANKERS Osman Saifullah Khan Chairman/ Director Allied Bank Limited Hoor Yousafzai Director Askari Bank Limited Assad Saifullah Khan Director Bank Alfalah Limited Faisal Saifullah Khan Director Dubai Islamic Bank Pakistan Limited Rana Muhammad Shafi Director Faysal Bank Limited Muhammad Danish Director Habib Bank Limited Rashid Ibrahim* Director JS Bank Limited Zaheen-ud-Din-Qureshi Chief Executive MCB Bank Limited *Appointed as independent director w.e.f 22.07.2019 in place of Meezan Bank Limited Ms. Jehannaz Saifullah Khan National Bank of Pakistan Sindh Bank Limited AUDIT COMMITTEE Soneri Bank Limited Muhammad Danish Chairman The Bank of Punjab Hoor Yousafzai Member The Bank of Khyber Assad Saifullah Khan Member United Bank Limited HR & REMUNERATION COMMITTEE HEAD OFFICE Muhammad Danish Chairman City Centre Plaza Hoor Yousafzai Member 3rd Floor Plot # 40 Main Bank Road Assad Saifullah Khan Member Saddar Rawalpindi Telephone: +92-51-5700824-5700825-26 CHIEF FINANCIAL OFFICER Fax: +92-51-5700829 Nouman Ahmad Email: [email protected] COMPANY SECRETARY REGISTERED OFFICE Sajjad Hussain APTMA House, Tehkal Payan, Jamrud Road, Peshawar HEAD OF INTERNAL AUDIT Telephone: +92-91-5843870, 5702941 Meesam Habib Butt Fax: +92-91-5840273 Email: [email protected] LEGAL ADVISOR Dr. Pervez Hassan SHARES REGISTRAR Hassan & Hassan, Advocates M/s Hameed Majeed Associates (Pvt.) Ltd. Salahuddin Saif & Aslam HM House, 7-Bank Square, Lahore (Attorney’s at Law) Telephone: +92-42-37235081-37235082 Fax: +92-42-37358817 AUDITORS Email: [email protected] M/s Shinewing Hameed Chaudhri & Co. Chartered Accountants MILLS HM House, 7-Bank Square, Lahore Industrial Estate, Gadoon Amazai, District Swabi Telephone: +92-0938-270313, 270429 Fax: +92-0938-270514 Email: [email protected] CYBER www.saiftextile.com Annual Report 2019 5 Vision To attain market leadership through unmatched quality, a diverse and unique product mix, empowered employees, world class systems, and the highest ethical and professional standards. 6 Saif Textile Mills Limited Mission • Give our shareholders a competitive return on their investment through market leadership, sustainable business growth and sound financial management. • Earn and sustain the trust of our stakeholders through efficient resource management. • Provide the highest quality products and services consistent with customer needs and continue to earn the respect, confidence and goodwill of our customers and suppliers. • Foster a culture of trust and openness in order to make professional life at the Saif Textile Mills Limited a stimulating and challenging experience for all our people. • Strive for the continuous development of Pakistan while adding value to the textile sector. Annual Report 2019 7 Key performance indicators Rs. 8,976 Million Net Sales Revenue Rs. 1,038 Million Gross Profit Rs. 949 Million ebitda Rs. 919 Profit before tax Million Rs. 31.44 Earning per Share 8 Saif Textile Mills Limited Geographical Spreed Swabi Lahore Faisalabad Manufacturing Plant Multan Major Local Market Karachi International Market Annual Report 2019 9 quality statement, our products and customerS Quality Statement We strive to manufacture quality yarn as per our customer’s requirement. This is achieved by: Our commitment to quality Extensive process monitoring and Training of personnel Our Products Our products dyed yarns, melange yarns, special yarns for knitting and weaving and surgical cotton. Accru Yarn Saif Texitle is one of few largest fancy yarns manufacturing company in Pakistan. Our passion for fancy yarn has made us a trendsetter in this industry. We are constantly searching throughout the world to find ideas for new yarns, with various cottons & fibers to lead the industry with our innovative and top quality products. Saif Textile Mills can deliver yarns fully palletized, as well as Soft wound yarn on Dye/Perforated plastic cones with the option of 4° 20’ and 0° cylindrical cone angles. All yarns are Automatically Palletized (Sangrato, Italy), Sequentially contamination controlled – Joss Vision Shield and Loptex, Loepfe Zenit Yarn cleared. Dyed Yarn Saif Textile also offers wide range of dyed yarns, produced and dyed with state of the art machinery from Thiese Germany with highly automated operations, automatic dyestuff machine from Date Color, Yarn dyeing shades are electronically measured by using state of the art spectrophotometers. Melange Yarn Saif Textile focus on the supply of top dyed melange yarn keeping in view latest trends and fashion, care for environment and technology. Surgical Cotton Surgical Cotton is being supplied to various local and international customers dealing with healthcare products. Our Customers Local (Karachi, Lahore, Multan and Faisalabad) Export (Turkey, Poland, Germany, Geneva, Tajikistan and Rassia) 10 Saif Textile Mills Limited organization chart Shareholders Board of Directors HR & Chief Audit Remuneration Executive Committee Committee Officer Chief Company Internal COO / CFO Secretary Auditor Operations Sales After Sales Accounts Finance Production, Supply Information HR & Production Planning & Chain Technology Administration Control Commercial Engineering & Planning & Projects Annual Report 2019 11 NOTICE OF 30th ANNUAL GENERAL MEETING NOTICE is hereby given that the 30th Annual 96. The remuneration of a Director for General Meeting of Saif Textile Mills Limited attending meetings of the Board will Insha’Allah be held on Saturday October or the Committees of the Directors 26, 2019 at 11:00 am at its registered office, shall be such amount as may be APTMA House Tehkal Payan, Jamrud Road, determined and approved by the Peshawar, to transact the following business: Board of Directors from time to time. • ORDINARY BUSINESS:- FURTHER RESOLVED THAT Company Secretary of the Company be and is 1. To confirm minutes of the last Annual hereby authorized to do or cause to do General Meeting of the Company held all such necessary actions, deeds and on October 26, 2018. things as may be required, deemed 2. To receive, consider and adopt the necessary or incidental to give effect to annual audited financial statements the above resolution.” of the Company together with the 6. To consider and approve the Directors’ and Auditors’ Reports thereon following resolution(s), with or without for the year ended June 30, 2019. modification, as special resolution for 3. To approve cash dividend @ 10% i.e. Re. sharing of common expenses, sale and 1/- per share for the year ended June purchase of goods with associated 30, 2019 as recommended by the Board companies including M/s. Kohat Textile of Directors. Mills Limited & Mediterranean Textile Company. 4. To appoint auditors for the next term and to fix their remuneration. The RESOLVED THAT the company be and Board on the recommendation of the is hereby authorized to share common Audit Committee has proposed the expenses with M/s. Kohat Textile Mills appointment of M/s Shinewing Hameed Limited an associated Company or Chaudhri Chartered Accountants as any other associated Company, which external auditors. The retiring auditors may include but not limited to office being eligible, have offered themselves rents, administrative salaries, utilities for re-appointment. expenses, repair and maintenance and other miscellaneous expenses • SPECIAL BUSINESS:- etc. (collectively the “Administrative 5. To consider and approve the Expenses”), in respect of its joint offices. following resolution(s), with or without FURTHER RESOLVED THAT Chief modification, as special resolution to Executive & Secretary of Company be amend the Articles of Association of and are hereby authorized to take all legal the Company, as recommended by the and other corporate formalities with Board of Directors, in order to increase regard to these matters on behalf of the the remuneration of a director for Company and to do all such acts, deeds attending meetings of the board or the and things as may be deemed necessary committee of the board. and beneficial for the Company. “RESOLVED THAT subject to obtaining RESOLVED FURTHER THAT the Related the requisite approvals, Article no. 96 Party Transactions