Habib Rice Products : Transmission of Annual Report For the Year Ended - 30 June 2023

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Habib Rice Products Ltd.

43rd Annual Report

for the year ended

June 30, 2023

Contents

	Page No
Company Information	2
Chairman's Review / Directors' Report	3
Company's Contribution to the Economy	5
Statement on Corporate and Financial Reporting Framework	6
Six Years at a Glance	7
Pattern of Shareholding	8
Statement of Compliance with listed Companies (Code of Corporate
Governance) Regulation, 2019	10
Independent Auditors' Review Report	12
Independent Auditors' Report on Financial Statements	13
Statement of Financial Position	17
Statement of Profit or Loss	18
Statement of Other Comprehensive Income	19
Statement of Changes in Equity	20
Statement of Cash Flows	21
Notes to the Financial Statements	22
Notice of Annual General Meeting	49
Proxy Form

COMPANY INFORMATION

BOARD OF DIRECTORS
Executive Directors
Mr. Owais G. Habib	Managing Director
Mr. Tufail Y. Habib
Non Executive Directors
Mr. Gaffar A. Habib	Chairman
Dr. Howard J. Synenberg
Ms. Fatemah G. Habib
Dr. Salma Habib
Mr. Adil Ahmed Chapra
Mr. Asad R. Premjee

BOARD OF AUDIT COMMITTEE

Mr. Gaffar A. Habib

Ms. Fatemah G. Habib

Dr. Salma Habib

Mr. Asad R. Premjee

BOARD OF HR AND REMUNERATION COMMITTEE

Mr. Tufail Y. Habib

Ms. Fatemah G. Habib

Dr. Salma Habib

Mr. Adil Ahmed Chapra

CHIEF EXECUTIVE OFFICER

Mr. Owais G. Habib

CHIEF FINANCIAL OFFICER

Mr. Jamshed Ali Khan

COMPANY SECRETARY

Mr. Ali Asghar Rajani

AUDITORS

Grant Thornton Anjum Rahman

Chartered Accountants

SHARE REGISTRAR

M/s. CDC Share Registrar Services Ltd.

CDC House, 99-B,Block-B,

S.M.C.H.S., Main Sharah-e-Faisal, Karachi.

REGISTERED OFFICE	ADMINISTRATIVE OFFICES & FACTORY
2nd Floor, UBL Building	Ahmad Habib Boulevard,
I.I. Chundrigar Road,	Hub - 90250
Karachi - 74000, Pakistan.	Pakistan.
Telephone	: [phone]	Telephone : [phone]
Fax	: [phone]	Fax	: [phone]

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CHAIRMAN'S REVIEW / DIRECTORS' REPORT

Dear Shareholders,

We bow our heads in gratitude to Allah the Beneficent, the Merciful, the Provider, for the Blessing He continues to bestow on us which are partly reflected in the Company's performance for the year ended 30 June 2023.

During the year, the Board of the Company comprised of:

Mr. Gaffar A. Habib	Chairman, Non-Executive Director
Mr. Owais G. Habib	Chief Executive Officer
Dr. Howard J. Synenberg	Independent Director
Mr. Tufail Y. Habib	Executive Director
Ms. Fatemah G. Habib	Non-Executive Director
Dr. Salma Habib	Non-Executive Director
Mr. Asad R. Premjee	Independent Director
Mr. Adil Ahmed Chapra	Independent Director

The Financial Highlights and the Directors' proposed appropriations are as follow:

		RUPEES in '000
	2023		2022
Profit before Tax	370,048		121,851
Provision for Tax (Net)	(36,984)		(37,767)
Net Profit after Tax		333,064		84,084
Un-appropriated Profit Brought Forward	668,783		584,699
Total Available for Appropriations	1,001,847		668,783
Proposed Appropriations:
Final Dividend @ 30% (2022: 40%)	60,000		80,000
Interim Dividend 40% (2022: Nil)	80,000		-
Un-Appropriated Profit Carried Forward		861,847		588,783
Earnings per Share (EPS) -Net of Tax	8.33		2.21
Interim Dividend per Share of Rs. 5 each	2.00		-
Final Dividend per Share of Rs. 5 each	1.50		2.00

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Habib Rice Products Ltd.

The Year In Review

During the year under review, Dollar constraints forced our feed mills to turn their attention to locally available products.

This allowed us to liquidate our long accumulated inventory - giving us a boost in our bottom line.

With gas supplies depleting, and our plant at the tail end of the gas pipe line, we have had to resort to furnace oil and KE for our energy requirement. Due to our continuous process operation, solar power is not an option. However cogen is a possible solution.

While we are working towards finding an affordable solution, the present offers that we have received to date puts the investment out of our reach. The offers received so far cost is in the two million dollars range.

At present interest rates, this level of investment is completely out of the question we are working towards two possible solutions:-

1. Get Sui Gas to deliver as per the contracted agreement.
2. Build up our own resources to self finance the required investment for co-generation.

If all industries were in the same position in their energy requirements as ours - there would be no problem, as the market would adjust for the higher cost.

Not all industries are hurting - some have even expanded and are receiving their expanded requirements.

Thus the problem.

In closing, please join me in my prayers to Allah the Beneficent, the Merciful, the Provider, to Bless our operation with the Bounties as Befits His Glory, Aameen.

On behalf of the Board,

OWAIS G. HABIB	GAFFAR A. HABIB
Chief Executive Officer	Chairman

Karachi: 13 September 2023

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