Governance

CHAIRMAN'S REVIEW

Dear Shareholders,

The emergence of the Covid-19 pandemic caused a major catastrophe worldwide, resulting in significant disruptions of industrial activities. This affected Pakistan as well, also due to various measures taken by the government to contain the spread of the virus. Economic activities, which were already facing a slowdown before Covid-19, practically came to a standstill because of the imposition of a countrywide lockdown. Unlike most industries, the operations of the sugar industry were not as severely affected by Covid-19. During the early stages of Covid-19, there was a major decline in sugar consumption in the country due to strict imposition of lockdown, which led to the curtailment of social events. However, sugar consumption increased from July 2020, once there was a decline in Covid-19 cases in the country.

The financial year 2019/20 was once again a challenging year for the sugar industry. Due to a decline in sugarcane crop production of between 15% and 20%, there was competition amongst the mills for sugarcane procurement. This resulted in a high sugarcane cost. The sugar prices improved during the last quarter of the financial year, which helped the company to improve its cashflows. The plant of the company operated efficiently as the company produced 57,286 metric tons of sugar with a sucrose recovery of 10.91%. During the financial year 2019/20, there was an increase of Rs. 908 million in the turnover of the company from last year. Its share of profit from Unicoi amounted to Rs. 175 million. The company made a loss after tax of Rs. 115.73 million for the year. The financial performance of the company has been laid out in greater detail in the financial statements for the year.

The Board of Directors performed its duties and responsibilities diligently in continuing to guide the company in its strategic affairs. In today’s volatile macroeconomic environment, it has focused on major risk areas and remained involved in the strategic planning process of the company. The Board recognizes that well defined corporate governance processes are important to preserve and enhance stakeholder value. All Directors, including the Independent Directors, fully participated and contributed in the decision making process of the Board. The Board also carried out its annual self-evaluation in line with the requirements of the Code of Corporate Governance.

Despite challenging conditions, the company remains positive in its outlook as it continues to make new investments by establishing a paper and board project. This will allow the company to leverage synergies and diversify its operations to enhance its revenues from avenues other than sugar. The company also continues to extend support to its farmers by providing them with fertilizer and pesticide loans as well as high quality seeds to improve the quality of sugarcane.

The year ahead is going to be one of challenges and opportunities. Our stakeholders provide us with the motivation to succeed, and it is our endeavor to continue to deliver an essential product of the highest quality. The Board remains focused on improving shareholder value through efficiency enhancement and diversification initiatives as well as continuing to contribute towards the development of the farming community.

I would like to extend my appreciation to our customers, suppliers, bankers and shareholders for their trust in the company as well as our employees and my board colleagues for their commitment and hard work.

Arif Faruque

Chairman

BOARD OF DIRECTORS

Mr. Arif Faruque

Chairman

Mr. Arif Faruque is a Swiss – qualified Attorney-at-Law and also holds Masters Degrees in both Law and Business Administration from the USA. He is the Chief Executive of Faruque (Pvt.) Ltd. as well as Madian Hydro Power Ltd. He is on the Board of Directors of Cherat Packaging Ltd., Cherat Cement Company Ltd. and Uni Energy Ltd. Besides the above, he is also a member of the Board of Governors of Lahore University of Management Sciences.

Mr. Aslam Faruque

Chief Executive

Mr. Aslam Faruque is a graduate with a major in Marketing. He is the Chief Executive of Mirpurkhas Energy Ltd. , Unicoi Ltd. and UniEnergy Ltd. He is on the Board of Directors of Cherat Packaging Ltd. Greaves Airconditioning (Pvt.) Ltd., Greaves Engineering Services (Pvt.) Ltd and is also serving as Senior Vice Chairman of Pakistan Sugar Mills Association – Center.

In the past, he has also served as the Chairman of Pakistan Sugar Mills Association – Center as well as Sindh Zone, and Director of Sui Southern Gas Company Ltd, State Life Insurance Corporation of Pakistan and Pakistan Industrial Development Corporation.

Mr. Amer Faruque

Director

Mr. Amer Faruque is a Bachelor of Science (BS) graduate in Business Administration majoring in Management / Marketing from Drake University, Des Moines, Iowa, USA. He is the Chief Executive of Cherat Packaging Ltd. He serves as a member of Board of Directors of Faruque (Pvt.) Ltd., Greaves Pakistan (Pvt.) Ltd., Greaves CNG (Pvt.) Ltd., Greaves Modaraba Management Company (Pvt.) Ltd. and Executive Director Marketing of Cherat Cement Co. Ltd. In the past he has served as a member of the Board of Governors of Ghulam Ishaq Khan (GIK) Institute of Engineering Sciences and Technology, Lahore University of Management Sciences (LUMS) and the Centre of International Private Enterprise (CIPE). He is the Honorary Consul of Brazil in Peshawar.

Ms. Farzana Faruque

Director

Ms. Farzana Faruque graduated from Chelsea College of Art and Design with a BA (Hons) in Graphic Design and Communications. She later pursued her pasion for nutrition and fitness and got certified as a Health Coach and Fitness Trainer.

Ms. Farzana, founded an indoor cycling fitness studio and co-founded a Health and Detox food brand in 2015. She is also the social media and marketing manager for Studio X. Her expertise allow her to be able to grow her brands and become a known name throughout Pakistan.

Mr. Samir Mustapha Chinoy

Director

Mr. Samir M. Chinoy is currently serving as Director and Chief Operating Officer at international Steels Limited. Mr, Chinoy is a graduate of Babson College, USA with a Bachelors of Science in Finance and Entrepreneurship and a minor in Human Communication, Prior to International Steels Limited, Mr. Chinoy worked at Pakistan Cables, Deloitte & Touche, New York and Foothill Capital (a Wells Fargo Company), Boston.

Mr. Chinoy has served on the management committee of Landhi Association of Trade and Industry and has held the position of Vice Chairman. In addition to being a Director of Mirpurkhas Sugar Mills Ltd., IIL Australia Pty Limited, International Steels Ltd. and Intermark (Private) Ltd. He is Chairman of The Amir Sultan Chinoy Foundation. Mr. Chinoy is a certified Director from the Pakistan Institute of Corporate Governance.

Mr. Muhammad Izqar Khan

Director (NIT)

Mr. Muhammad Izqar Khan is presently working as Executive Director in State Life Insurance Corporation of Pakistan. He looks after ihe affairs of Group & Pension Division, Marketing, Health Insurance, Takaful and Policy Holders Division, He is also serving as a Director of Alpha Insurance Company Limited.

His is a professional Accountant. He is an ACMA from Chartered Institute of Management Accountants, London. He is also the member of Institute of Cost & Executive Accountants, London. He is also Master in Business Administration from Clyton LJ diversity, London.

He has contributed immensely towards development of Financial Analysis, Planning & Financial Reporting, Project elevation and Information Technology.

Mr. Wasif Khalid

Director

Mr. Wasif Khalid is a fellow member of Institute of Chartered Accountant of Pakistan and fellow member of Pakistan Institute of Public Finance Accountants (PIPFA). Fie has also done his master in Business Administration (Marketing and Operations Management) from Hamdard University, Karachi.

He is the Chief Operating Officer and Chief Financial Officer of Mirpurkhas Sugar Mills Ltd, He is also Chief Financial Officer of Mirpurkhas Energy Ltd. and Zensoft (Pvt.) Ltd. Mr. Khalid is on the Board of Directors of Mirpurkhas Sugar Mills Ltd., Mirpurkhas Energy Ltd., Greaves Airconditioning (Pvt.) Ltd., Greaves CNG (Pvt.) Ltd., Greaves Engineering Services (Pvt.) Ltd, and as an Executive Director Finance of Unicoi Ltd.

He has contributed immensely towards development of financial models and implementation of new projects. He has been actively involved with the regulators, practitioner and leading Shariah scholars of the industry for developing the commercial industry transactions. Prior to Ghulam Faruque group, Mr. Khalid was associated with various companies in Middle East and in Pakistan worked with one Big 4 audit firms. He has over 19 years’ worth of rich experience in financial restructuring and modeling, project financings, operational management and internal audit,

He has served as a General body member of FPCCI, as Head of cost and budget committee of PSMA- Sindh Zone and Member committee agriculture development and reforms at Ministry of Industries and Production and Kisan Board on behalf of PSMA- Sindh Zone.

HEAD OFFICE

Modern Motors House Beaumont Road,
Karachi-75530
UAN: +92 21 111-000-009
TEL: +92 21 35683566-35683567-35688348-35689538
FAX +92 21 35683425
E-mail: msm@gfg.com.pk

REGISTERED OFFICE / FACTORY

Sub Post Office Sugar Mill Jamrao, Umerkot Road
Mirpurkhas, Sindh
UAN: +92 (91) 111-000-009
TEL: +92 (233) 517061-2
FAX: +92 (233) 506010
E-mail: msm.site@gfg.com.pk

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