AL-ABBAS SUGAR MILLS LIMITED
ANNUAL REPORT 2003
Company Information
Notice of Meeting
Directors' Report to the Members
Pattern of Share holding
Six years at a glance
Vision and Mission Statement
Statement of Compliance with the Code of Corporate Governance
Auditors' Review report to the Members on Statement of Compliance
with the Best Practices of Code of Corporate Governance
Auditors' Report to the Members
Balance Sheet
Profit & Loss Account
Cash Flow Statement
Statement of Changes in Equity
Notes to the Financial Statements
BOARD OF DIRECTORS
HAJI ABDUL GHANI			Chairman
MR. SHUNAID QURESHI			Chief Executive
MR. MUHAMMAD IQBAL USMAN			Director
MR. TARIQ USMAN BHATTI			Director
MR. MUHAMMAD AYOUB			Director
MR. DURAID QURESHI			Director
MR. ASIM GHANI			Director
MR. MUHAMMAD AYUB			Director
COMPANY SECRETARY
MR. MUHAMMAD SULEMAN KANJIANI
AUDIT COMMITTEE
MR. MUHAMMAD IQBAL USMAN			Chairman
MR. DURAID QURESHI			Secretary
MR. MUHAMMAD AYOUB			Member
AUDITORS
Haroon Zakaria & Co.
Chartered Accountants
LEGAL ADVISOR
Usmani & Iqbal
Advocate & Solicitors
BANKERS
AlBaraka Islamic Bank
Bank Alfalah Limited
Habib Bank Limited
Muslim Commercial Bank Limited
Union Bank Limited
REGISTERED OFFICE
Plot # 50-A/3, Unit # H, Gulshan-e-Faisal,
Co-operative Housing Society,
Street No.2, Bath Island, Karachi.
FACTORY
Mirwah Gorchani District Mirpurkhas, Sindh.
NOTICE OF ANNUAL GENERAL MEETING
NOTICE is hereby given that the Thirteenth Annual General Meeting of the Company will be held on Wednesday,
28th January 2004, at 1600 hours at Rafia Chaudri Memorial Center, Karachi to transact the following business:
1.       To confirm the minutes of last Annual General Meeting held on 22nd January 2003.
2.       To receive consider and adopt the Audited Accounts for the year ended 30th September 2003 together
with the Director's and Auditors Reports thereon.
3.       To approve 18% cash dividend as recommended by the Board of Directors.
4.       On the recommendation of Audit Committee Board of Directors has proposed to appoint M/s. Hyder Bhimji
& Co. Chartered Accountants to carry out the audit of accounts for the year ended 30th September 2004
in place of M/s. Haroon Zakaria & Co. Chartered Accountants, who have not offered their services due
to provisions of Code of Corporate Governance
5.       To elect Seven Directors in accordance with the Companies Ordinance, 1984 for a period of three years
commencing from March 01, 2004. The retiring Directors are Messrs Haji Abdul Ghani, Mohammad Iqbal
Usman, Tariq Usman Bhatti, Muhammad Ayoub, Duraid Qureshi, Asim Ghani and Muhammad Ayub.
6.       To transact any other business, with the permission of the Chair.
By Order of the Board.
MUHAMMAD SULEMAN KANJIANI
Company Secretary
Karachi, Dated 16th December 2003
Notes:
1.       The Share Transfer Books of the Company will remain closed and no transfer of shares will be accepted
for registration from 21st January 2004 to 28th January 2004 (both days inclusive).
2.       A member entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy to attend
and vote on his behalf. Proxies in order to be valid must be received at the Registered Office of the
Company not later than 48 hours before the time of the meeting. A proxy must be a member of the
Company.
3.       Shareholders are advised to notify the company of any change in their address immediately to ensure
prompt delivery of mails.
CDC Account holders will further have to follow the under mentioned guidelines as laid down by the Securities
and Exchange Commission of Pakistan.
A.     For Attending the meeting:
i) In case of individuals, the account holder or sub-account holder and/or the person whose securities
are in group and their registration details are uploaded as per the Regulations, shall authenticate his
identity by showing his original National Identity Card (NIC) or original passport at the time of attending
the meeting,
ii) In case of Corporate entity, the Board of Directors' resolution/power of attorney with specimen
signature of the nominee shall be produced (unless it has been provided earlier) at the time of the
meeting.
B.     For Appointing Proxies:
i)     In case of individuals, the account holder or sub account holder and/or the person whose securities
are in group account and their registration details are uploaded as per the Regulations, shall submit
the proxy form as per the above requirement,
ii)    The proxy form shall be witnessed by two persons whose names, addresses and NIC numbers shall
be mentioned on the form,
iii)   Attested copies of NIC or the passport of the beneficial owners and the proxy shall be furnished with
the proxy form.
iv)   The proxy shall produce his original NIC or original passport at the time of the meeting,
v)    In case of corporate entity, the Board of Director's resolution/power of attorney with specimen signature
shall be submitted (unless it has been provided earlier) along with proxy form to the Company.
DIRECTOR'S REPORT
The Board of Directors is please to present 13th Annual Report and Audited Accounts for the year ended
September 30th 2003.
SUGAR UNIT
OPERATING RESULTS:
Due to surplus sugar availability in the country, the sale of total production for the crushing season 2002-2003
before the commencement of new crushing season has become difficult. Although, the Government of Pakistan
has exported 100,000 Metric tons of sugar through TCP and also purchased 100,000 Metric tons sugar in
November 2003.
The operating data for the year under review is given below:
PRODUCTION DATA					2002-2003	2001-2002
Number of days crushed					117	119
Sugar cane crushed (in metric tons)					531,940	387,668
Recovery %					9.55	8.9
Sugar made					50,851	34,440
Molasses recovery %					5.2	5.57
Molasses made					27,630	21,950
FINANCIAL DATA:					2002-2003	2001-2002
Sales					669,410	747,019
Cost of sales					644,781	795,789
Gross profit/(loss)					24,629	-48,770
Operating profit/(loss)					2,345	-72,743
Financial charges					-36,489	-50,726
Loss after financial charges					-34,144	-123,469
FUTURE OUTLOOK OF SUGAR UNIT:
The future of sugar industry is dependant on the cost of raw material and disposal of excess production of sugar.
These two factors play an important role in the financial position of sugar industry.
Government of Sindh has notified minimum sugar cane price of Rs. 41/- per 40 kg of sugar cane, which is Re.
1/- higher than the minimum price fixed by the Government of Punjab last year. Whereas, last year this difference
was Rs. 3/-.
We may further add that Government of Pakistan has promised to procure another 100,000 Metric tons of sugar
through TCP from the production of 2003-2004 crushing year and your Board expects that these two steps will
play a very important role in improving financial strength of sugar industry.
Performance of sugar unit for current crushing year (upto 15th December 2003) is given below:
Date of Start		Sugar Cane	Recovery %	Sugar made	Molasses made
		Crush in
		(in Metric Tons)		(in Metric Tons)	(in Metric Tons)
29th November 2003		69,799.53	8.5968	5305	2840
DISTILLERY UNIT:
OPERATING RESULTS:
By the Grace of Almighty Allah, the distillery unit continuously performing as per plan. The operating results of
the unit with comparative figures of last year is given as under:
					2002-2003	2001-2002
Number of days worked					299	300
Production Liters					28,874,000	22,595,000
Metric tons					23,099	18,076
FINANCIAL DATA:
					2002-2003	2001-2002
Sales					523,371	306,365
Cost of sales					359,862	220,726
Gross profit					163,509	85,639
Operating profit					137,894	62,823
Financial charges					-20,502	-20,758
Profit after financial charges					117,392	42,065
FUTURE OUTLOOK OF DISTILLERY UNIT:
The work on expansion program of distillery unit is as per schedule and we expect that with the commissioning
of new plant, your company will be in position to compete internationally with more strength. However we would
also like to point out that the mushroom growth of distillery unit in our country may result negative impact both
in financial and operation terms of existing distillery units and therefore it is our humble suggestion that the
Government must evolve some systems which shall ensure that production capacity of distillery units is in
accordance with available raw material and no investment is being made in installation of idle production capacity
of industrial alcohol in Pakistan otherwise both new and old units will suffer greatly.
FINANCIAL RESULTS AND APPROPRIATION
The overall financial results alongwith appropriations for the year ended September 30, 2003 is given in below.
					2002-2003	2001-2002
Profitless) before taxation					86,074	-10,857
Taxation					-16,259	11,480
Profit after taxation					69,815	623
Un-appropriated profit brought forward					1,263	640
Profit available for appropriation					71,078	1,263
APPROPRIATION
Transfer to General reserve					38,000	0
Proposed dividend @ 18% (2002 nil)					31,252	0
Total appropriation					69,252	0
Inappropriate profit c/f to balance sheet					1,862	1,263
BOARD OF DIRECTORS
The tenure of Board of Directors will be completing on 28th February 2004, however since Annual General
Meeting is to be held within four months from the date of year-end therefore, the election of Directors will be
held in forthcoming Annual General Meeting, which is one month ahead of schedule. However the term of new
Board will start from 1st March 2004. Board of Directors has fixed number of Directors to be elected in forth
coming Annual General Meeting at seven (7).
Following are the retiring Directors of the Company:
1.   Haji Abdul Ghani
2.  Mr. Mohammad Iqbal Usman
3.   Mr. Tariq Usman Bhatti
4.   Mr. Muhammad Ayoub