Annual Report 2017 - Arif Habib Corporation Habib Savings and Investments Limited

Arif Habib Group

HAG

Contents

Forward Looking Statements

05 | PAGE

Corporate Structure

PAGE | 06

Vision

Mission

Values

Corporate Strategy

Objectives

MVCO

The Arif Habib Group

07 | PAGE

HAG

PAGE | 08

Arif HabibCorporation Limited

HL

AC

09 | PAGE

Company Information

CI

PAGE | 10

IC

Subsidiaries and Associates

11 | PAGE

PAGE | 12

13 | PAGE

PL

F

Pakarab Fertilizers Limited

PAGE | 14

FC L

F

15 | PAGE

PAGE | 16

Fatima Fertilizer Company Limited

AL

H

17 | PAGE

PAGE | 18

Arif Habib Limited

MCB

AH

19 | PAGE

PAGE | 20

MCB-Arif Habib Savings and Investments Limited

SD

EL

21 | PAGE

PAGE | 22

Sachal Energy Development (Pvt.) Limited

Arif Habib Commodities (Pvt.) Limited

23 | PAGE

PAGE | 24

AM

SL

Other Companies Having Group’s Shareholding

25 | PAGE

PAGE | 26

Aisha Steel Mills Limited

Power Cement Limited

CPL

27 | PAGE

PAGE | 28

29 | PAGE

JL

C

PAGE | 30

JavedanCorporation Limited

Arif Habib Dolmen REIT Management Limited

31 | PAGE

D

M

AH

R

PAGE | 32

33 | PAGE

PAGE | 34

35 | PAGE

PAGE | 36

BD

& Management

Board of Directors

Board of DirectorsProfile

37 | PAGE

PAGE | 38

39 | PAGE

PAGE | 40

41 | PAGE

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43 | PAGE

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45 | PAGE

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47 | PAGE

Board & Management Committees

PAGE | 48

Criteria to Evaluate Board’s Performance

CB P

E

49 | PAGE

Chairman’s Review

PAGE | 50

51 | PAGE

CP R

E

Chief Executive Performance Review

CM

Corporate Memberships

PAGE | 52

53 | PAGE

PAGE | 54

Directors’ Report

55 | PAGE

PAGE | 56

57 | PAGE

PAGE | 58

59 | PAGE

PAGE | 60

61 | PAGE

PAGE | 62

AnnexuresAnnexure - I

Annexure - II

Annexure - III

Annexure I

63 | PAGE

Annexure II

PAGE | 64

65 | PAGE

Annexure III

Pattern of Shareholding


PAGE | 66


67 | PAGE


PAGE | 68

69 | PAGE

Sustainability Report

SR

PAGE | 70

CEO’s Message

71 | PAGE

Our Vision for Sustainability

VS

PAGE | 72

73 | PAGE

PAGE | 74

75 | PAGE

PAGE | 76

FinancialHighlights

77 | PAGE

AHCL at a GlanceOperating Revenue Operating & Administrative

Expenses

Equity and Liabilities Assets

72%

69% 74%

8%

17%

28%

1%

24%

7%

14%

27%

3%

12%

24%

7%

11%

2%

DividendRealised / unrealised gain on investmentMark-up on loans and advancesOthers

Paid-up capitalReservesNon-current liabilitiesCurrent liabilities

Long term investmentsShort term investmentsLoans and advancesOther assets

Salaries and benefitsRent, rates and taxesDepreciationAdvertisement and business promotionOthers

PAGE | 78

Key Figures & Highlights

Financial & Business Highlights

79 | PAGE

PAGE | 80

Graphical Representation

81 | PAGE

0

PAGE | 82

Horizontal Analysis of Financial Statements

83 | PAGE

PAGE | 84

85| PAGE

Vertical Analysis of Financial Statements

PAGE | 86

Summary of Cash flows Statement

87 | PAGE

(3,000)

(2,000)

(1,000)

-

1,000

2,000

3,000

2017 2016 2015 2014 2013 2012

PAGE | 88

Statement of Value Added and its Distribution

81%

1%

1%

4%6%

7%

Employees’ remunerationOperating and other costFinance costGovernment taxesTo SocietyDepreciationNet earnings

Employees’ remunerationOperating and other costFinance costGovernment taxesTo SocietyDepreciationNet earnings

76%

2%

1%3%

14%4%

2017 2016

Share Price/ Volume Analysis

89 | PAGE

PAGE | 90

91 | PAGE

CF P

R

PAGE | 92

Comments on the Results of Financial Performance

S. No.

Analysis of Quarterly Results

Operatingrevenue

Profitafter tax

Quarter ended

Quarter end

Year to date

Quarter end

Year to date

93 | PAGE

Quarter end

Year to date

Quarter end

Year to date

Quarter end

Year to date

PAGE | 94

Shareholders’ Information

95 | PAGE

PAGE | 96

97 | PAGE

Report of the Audit Committee on Adherence to the Best Practices of Code of Corporate Governance

PAGE | 98

99 | PAGE

Statement of Compliance with the code of Corporate Governance

PAGE | 100

101 | PAGE

Names

Review Report to the Members on Statement of Compliance with Best Practices of Code of Corporate Governance

PAGE | 102

Audited Financial Statements for the year ended30th June 2017

AS

F

103 | PAGE

Names

Auditors’ Report to the Members

PAGE | 104

Names

105 PAGE

Balance Sheet

106PAGE

Balance Sheet

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Audited Consolidated Financial Statements for the year ended30th June 2017

AS

F

151 | PAGE

Auditors’ Report on Consolidated Financial Statements

PAGE | 152

153 PAGE

Consolidated Balance Sheet

154PAGE

Consolidated Balance Sheet

155 PAGE

156PAGE

Consolidated Statement of Comprehensive Income

157 PAGE

Consolidated Cash Flow Statement

158PAGE

Consolidated Statement of

159 PAGE

Notes to the Consolidated Financial Statements

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PAGE | 220

Corporate Calendar of Major Events

Names

221 | PAGE

Notice of Twenty Third Annual General Meeting

PAGE | 222

223 | PAGE

PAGE | 224

225 | PAGE

Statement under Section 134(3) of the Companies Act, 2017

PAGE | 226

227 | PAGE

Annexure-A

Statement under Section 134(3) of the Companies Act, 2017

1 Investment in Securities

PAGE | 228

Annexure-AAnnexure-A

229 | PAGE

2 Investment in SecuritiesAnnexure-A

PAGE | 230

1 Loans and Advances

Annexure-A

231 | PAGE

Annexure-A

PAGE | 232

Annexure-A

233 | PAGE

2 Loans and Advances

Annexure-A

PAGE | 234

Annexure-A

235 | PAGE

Following directors of the company have no interest in the investee companies except in their capacity as director / shareholder

Annexure-A

Statement under Section 134(3) of the Companies Act, 2017, in compliance with Regulation 4(2) of Companies (Investment in Associated Companies or Associated Undertakings) Regulations, 2012, for decision to make investment under the authority of a resolution passed earlier pursuant to provisions of section 208 of the Companies Ordinance,1984 (repealed) is not implemented either fully or partially:

Annexure-B

PAGE | 236

Annexure-B

237 | PAGE

Annexure-B

PAGE | 238

Annexure-B

239 | PAGE

Annexure-B

PAGE | 240

Annexure-B

241 | PAGE

Annexure-B

PAGE | 242

243 | PAGE

Section 27(A)(iii)(b) of the Companies Act, 2017 provides that if the object stated at serial number 1 of the object clause is not the principal line of business of the company, it shall be required to intimate to the registrar their principal line of business within such time from commencement of this Act and in the form as may be specified. A revised copy of the memorandum of association indicating therein its principal business at serial number 1 of the object clause shall also be furnished to the registrar.

Annexure-C

Statement under Section 134(3)

Form of Proxy

PAGE | 244

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81-82

79-80

251 | PAGE

69

PAGE | 252

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2015 - 16

1,134,375,000

257 | PAGE

3.28

Documents

Annual Report 2017 - Arif Habib Corporation Habib Savings and Investments Limited