Building a Prosperous Future ANNUAL REPORT 2019 Content 03 Company Information 06 Vision and Mission 07 Core Values and Code of Conduct 09 Board of Directors 17 Notice of 57th Annual General Meeting 21 Chairman’s Review Report 23 Director’s Report 31 Performance Review Report 35 Independent Auditor’s Review Report on the Statement of Compliance contained in Code of Corporate Governance 36 Statement of Compliance with Listed Companies (Code of Corporate Governance Regulations, 2017) 38 Independent Auditor’s Report to the Members 43 Statement of Financial Position 44 Statement of Profit or Loss 45 Statement of Comprehensive Income 46 Statement of Changes in Equity 47 Statement of Cash Flow 48 Notes to the Financial Statements 85 Pattern of Shareholding 87 Electronic Credit Mandate (Mandatory) Form of Proxy Director Report (Urdu) Company Information Board of Directors Arif Habib Chairman Samad A. Habib Chief Executive Abdul Qadir Sultan Director Alamgir A. Sheikh Director Muhammad Ejaz Director Saeed Ahmed Director Darakshan Zohaib Director Muhammed Siddique Khokhar Director Faisal Anees Bilwany Director Chief Financial Officer & Company Secretary Muneer Gader Audit Committee Abdul Qadir Sultan Chairman Alamgir A. Sheikh Member Muhammad Ejaz Member Owais Ahmed Secretary HR & Remuneration Committee Saeed Ahmed Chairman Arif Habib Member Muhammad Ejaz Member Samad A. Habib Member 03 Javedan Corporation Limited Auditors Registered Office Reanda Haroon Zakaria & Co., Arif Habib Center, Chartered Accountants 23, M.T.Khan Road, Karachi Pakistan - 74000, EY Ford Rhodes Tel : 32460717-19 Chartered Accountants Fax: 32466824 Website: www.jcl.com.pk Bankers Site Office: Allied Bank Limited Al-Baraka Pakistan Limited Naya Nazimabad, Manghopir Road, Karachi -75890 Askari Bank Limited Tel : 92-21-32061997-98, 32061903-04, Bank Al-Falah Limited 36770141-42, Fax: 92-21-36770144 Banklslami Pakistan Limited Website: www.nayanazimabad.com Habib Bank Limited MCB Bank Limited Share Registrar National Bank of Pakistan Sindh Bank Limited CDC Share Registrar Services Limited, Summit Bank Limited CDC House, 99-B, Block 'B' S.M.C.H.S United Bank Limited Sharah-e-Faisal, Karachi. The Bank of Punjab Meezan Bank Limited Dubai Isamic Bank Pakistan Limited Annual Report 2019 04 A secure environment for your peace and tranquility 05 Javedan Corporation Limited Vision The Company wishes to forge ahead, experiments with new ideas and challenge new frontiers. It will endeavor to achieve excellence in all its undertakings and intends to provide customer satisfaction by being efficient and competitive. Mission To become a profitable organization and exceed the expectations of our customers and stakeholders by developing and marketing high quality real estate development at competitive prices through concentration on quality, business value and fair play. To develop and promote the best use of human talent in a safe environment, as an equal opportunity employer while using advance technology for efficient and cost effective operations. Annual Report 2019 06 Core Values and Code of Conduct Overview JCL understands that retaining the confidence of its employees, shareholders, customers and other stakeholders is very important to the growth of its business. JCL’s Code of Ethics forms the foundation of how we conduct business and work together to achieve our goals. JCL is committed to achieving the highest level of ethical conduct and standards and we believe this is extremely important to the success of our Company. Objectives JCL follows ethical and responsible business practices in all of its activities and operations. Responsibilities To Our Employees: To respect each other and to provide employees with a safe place to work, satisfying and rewarding employment, on-going professional development and an open team environment. To Our Customers: Our mission is to serve clients in an innovative, cost-effective and transparent manner. Our clients are our partners in business. This means that we: • Put clients at the center of everything we do; • Interact with our clients in a fair, correct, transparent, professional and timely manner; Provide our clients with tailor-made services when appropriate; • Develop effective solutions and services for our clients; • Ensure that any information entrusted to us by our Clients is kept confidential, except when disclosure is authorized by them or required by applicable laws, rules or regulations. 07 Javedan Corporation Limited To Our Suppliers: Create long-term supply chain relationships to ensure continued product and service excellence. We always try to build confidence, reliability and trust by ensuring fulfillment of our commitments with suppliers and service providers. To Our Shareholders: To steward our resources in a manner that will provide a very attractive return on investment. Health, safety, environment & community Ther Company is committed to promoting and providing a safe working environment for all employees and to complying with all applicable environmental regulations. JCL takes a proactive approach to health, safety and environmental matters. We also actively participate in contributing to the betterment of society. To the extent practical, JCL will be involved in community, education and donations programs. Compliance with Applicable laws and Regulation The company ensure compliance of all applicable laws and regulations and discharge all legal responsibilities diligently. Internal control and financial reporting We have implemented a very sound and reliable internal control system in our organization, which is well understood by all of our employees and parties dealing with us. Financial planning is a core activity of our system through which we ensure efficient and effective utilization of financial and human resources. Annual Report 2019 08 Board of Directors 09 Javedan Corporation Limited Mr. Arif Habib Chairman Mr. Arif Habib is the Chief Executive of Arif Habib Corporation Limited. He is also the Chairman of Pakarab Fertil- izers Limited, Fatima Fertilizer Company Limited, Fatimafert Limited, Aisha Steel Mills Limited, Javedan Corpora- tion Limited and Sachal Energy Development (Pvt.) Limited Mr. Arif Habib remained the elected President/Chairman of Karachi Stock Exchange for six times in the past and was a Founding Member and Chairman of the Central Depository Company of Pakistan Limited. He has served as a Member of the Privatisation Commission, Board of Investment, Tariff Reforms Commission and Securities & Exchange Ordinance Review Committee. Over the years, he has been nominated on the Board of Directors of a number of public sector compa- nies by the Government of Pakistan. Mr. Habib participates significantly in welfare activities. He is one of the trustees of Fatimid Foundation and Memon Health & Education Foundation as well as a director of Pakistan Centre for Philanthropy, Karachi Education Initiative, Pakistan Business Council and Karachi Sports Foundation. CORPORATE RESPONSIBILITIES AS CHAIRMAN AS HONORARY TRUSTEE/DIRECTOR - Aisha Steel Mills Limited - Fatimid Foundation - Fatima Fertilizer Company Limited - Karachi Education Initiative - Javedan Corporation Limited - Memon Health & Education Foundation - Arif Habib Foundation - Pakistan Centre for Philanthropy - Black Gold Power Limited - Fatimafert Limited - Karachi Sports Foundation - Pakarab Fertilizers Limited - Sachal Energy Development (Private) Limited AS DIRECTOR - Arif Habib Real Estate Services (Private) Limited - Fatima Cement Limited - International Builders and Developers (Private) Limited - NCEL Building Management Limited - Pakarab Energy Limited - Pakistan Business Council - Pakistan Opportunities Limited - National Resources (Private) Limited - Essa Textile & Commodities (Private) Limited - Arif Habib Consultancy (Private) Limited Annual Report 2019 10 Mr. Samad A. Habib Chief Executive Starting off with a career at Arif Habib Corporation Limited; Samad built up his experience in sales, marketing and corporate activities working his way up through various executive positions. Joining Arif Habib Limited in 2004, he led the company as Chairman and Chief Executive playing a key role in the strategic direction of the company where he specialized in capital market operations and corporate finance building achieving a range of significant IPOs and private placements. In 2011, he moved to Javedan Corporation Limited as a part of the driving force behind the transformation of the dilapidat- ed cement plant to a living community. At Naya Nazimabad, Samad Habib has contributed to making a positive impact on society providing a quality lifestyle to the middle class of the city. His dedication and optimism is set to further transform the area with the largest commercial precinct development in the city presently under planning. CORPORATE RESPONSIBILITIES - Javedan Corporation Limited (Chief Executive) - Safemix Concrete Limited (Chief Executive) AS DIRECTOR - Dolmen City REIT/Arif Habib Dolmen REIT Management Limited - MCB-Arif Habib Savings & Investments Limited - Arif Habib Corporation Limited - Power Cement Limited - Arif Habib Equity (Pvt.) Limited - Arif Habib Foundation - Arif Habib Real Estate Services (Pvt.) Limited - Black Gold Power Limited - Nooriabad Spinning Mills (Pvt.) Limited - Pakarab Fertilizers Limited - Pakistan Opportunities Limited - REMMCO Builders & Developers Limited - Rotocast Engineering Company (Pvt.) Limited - Sukh Chayn Gardens (Pvt.) Ltd. - Park View Corporation (Private) Limited - Essa Textile & Commodities