The Company has adopted the following corporate values:

  • To fulfill customer needs by producing quality products;
  • To act with good governance;
  • To achieve sustainable and equitable growth;
  • To promote diversity and ethical behavior;
  • To develop a dynamic team of professionals to achieve excellence and innovation.

Fazal Cloth Mills Limited ("the company") promulgated the code of conduct ("the Code") on October 05, 2012. The Company is committed to maintain the highest level of ethical conduct among its directors and employees. Therefore separate codes were framed for directors and employees, which include the acceptable business practices, source of guidance and principles of behavior.



Salient Features for the Code of Conduct for Directors


Compliance with Laws


Directors must comply with the laws, rules and regulations applicable to business of the Company in and outside Pakistan.


Conflict of interest


A conflict of an interest is a situation where a director would be in a position to make personal gains by influencing the decision making. Conflict of interest might not be easily identifiable. Whenever a director feels that the conflict of interest exists, he should inform about it to the chairman of the Board of Directors.


Corporate Opportunity


Directors should not use the Company's property, information and their position for personal benefit. He should not establish competing business and divert the Company's business opportunities for personal gains.


Confidentiality


Directors must always maintain confidentially of the confidential information. He should not make public such information which would harm the interests of the Company. He should consult with Chairman of the Board or compliance officer if he has to disclose any information due to his legal obligation.


Fair Dealing


A director must deal with all the stakeholders of the Company fairly. He should not provide unfair advantage to any customer, supplier, banker etc. due to his position.


Protection and Proper Use of the Company Assets


Directors should ensure that all assets of the Company must be used for the benefit of the Company. They are required to exercise best of their abilities and judgment to put the assets of the company for efficient use and benefit of the Company.


Reporting any Illegal or Unethical Behavior


A director must inform the Compliance officer or chairman of the Board of Directors if he finds any employee or other director committing the violation of the Code and any law of the land. He should take all possible measures which could help prevent illegal or unethical behavior of fellow directors or employees.


Public Company Reporting


Directors are responsible for the timely and accurate reporting to the SECP, FBR, stock exchanges and other regulatory bodies. They should make possible that the financial statements of the Company are published and circulated among shareholders in time.


Disclosure of Interest


The directors should disclose their interest in the shareholding of other companies. They must inform within four days to the Company Secretary if any director or his spouse trades in the shares of the other Company.


Insider Trading


No director or his spouse will transact in the shares of the Company after the start of close period. The Company secretary will inform about the close period that will start when the documents and financial statements are circulated among the directors. Directors should also inform the Company Secretary immediately about transactions performed by them and their spouse in the shares of the Company other than close period.


Salient Features for the Code of Conduct for Employees


Safety


The Company is highly concerned with the safety of both employees and non-employees on its premises and maintains standard operating procedures in case of emergencies. All the employees must follow these procedures and are required to inform their seniors in case of any mishap.


Fitness for Duty


An employee should be mentally and physically fit when he is on work. He should not use any drugs. Even if he is using any prescribed medicine which might affect his performance at work he should inform about it to his senior.


Attendance Report


An employee should have contact information of his senior and inform him if he is not able to report on work.


Work Place Harassment and Discrimination


The Company treats all its employees equally and maintains an environment free from workplace harassment and discrimination. The policy of equal treatment applies to hiring, career prospects, promotions, training, remuneration and dismissal as well.

Environment

All the employees are required to promote culture of environmental protection among employees, customers, suppliers, public authorities and communities. They must use the Company's facilities and processes in an environmentally sustainable way.

Workplace Violence

Employees must restraint themselves from any form of violence at the Company premises
otherwise he will be terminated from his job.

 

Weapons in Workplace


All the employees, other than those who are authorized, cannot carry any weapon whether on or off duty if they are using premises, vehicle or any other property of the Company.

 
Protection and proper use of the Company Assets


Employees should ensure that all assets of the Company must be used for the benefit of the Company. They are required to exercise best of their abilities and judgment to put the assets of the company for efficient use and benefit of the Company.


Computer and System Security


All the employees of the Company are required to use computer and information technology system of the Company according to the Company information technology policy and guidelines.


Fair Dealing


All employees must deal with all the stakeholders of the Company fairly. He should not provide unfair advantage to any customer, supplier, banker etc. due to his position.


Bribery


The payment of bribery and kickbacks in any form is strictly prohibited because the Company does not allow anyone to promote its business by compromising the integrity and ethical practices.


Confidential Information


All the employees must keep the company information on its premises and should not make copies of documents, papers, statements and record for an unauthorized use. Employees are not permitted to share the information about Company business outside the Company unless authorized.

 

Regulatory Compliance and Corporate governance


The company maintains an environment of good governance. All the employees are required to follow the Company's policies, rules and regulations.

 

Financial Integrity


No employee should indulge himself in any fraudulent activity. If he believes and finds anyone engaged in a fraudulent activity he should inform about it to his seniors.


Alcohol, Drugs and Gambling


The use of alcohol, drugs, other than for medication, and gambling is prohibited on the location or premises of the Company.


Insider Trading


No employee or his spouse will transact in the shares of the Company after the start of close period prior to the announcement of financial results. Employees categorized as executives according to the requirements of Code of Corporate Governance 2012 should also inform the Company Secretary immediately about transactions performed by them and their spouse in the shares of the Company other than close period.


Board Committees


Audit Committee Members

 

  1. Sh. Naseem Ahmad     Chairman
  2. Mr. Rehman Naseem   Member
  3. Mr. Faisal Ahmad         Member

 

During the year under review, four meetings of the Audit Committee of the Company were held and the attendance position is as follows:

 

Sr. No.     Name of Members            No. of Meetings Attended

  1. Sh. Naseem Ahmad                        3
  2. Mr. Rehman Naseem                     4
  3. Mr. Faisal Ahmad                           3

The Audit Committee has been reconstructed as under:

 

  1. Mr.  Rehman Naseem              Chairman
  2. Mr. Amir Naseem Sheikh           Member
  3. Mr. Faisal Ahmad                     Member

 
Terms of Reference


The terms of reference of the Audit Committee shall include the following:

 

  1. Recommending to the Board of Directors the appointment of external auditors, their  remuneration and audit fees; 
  2. Determination of appropriate measures to safeguard the Company's assets; 
  3. Review of quarterly, half-yearly and annual financial statements of the Company, prior to their approval by the Board of Directors, focusing on:

      • Major judgmental areas;
      • Significant adjustments resulting from the audit;
      • The going concern assumption;
      • Any changes in accounting policies and practices;
      • Compliance with applicable accounting standards;
      • Compliance with listing regulations and other statutory and regulatory requirements; and
      • Significant related party transactions.

  1. Review of preliminary announcements of results prior to publication;
  2. Facilitating the external audit and discussion with external auditors of major observations arising from interim and final audits and any matter that the auditors may wish to highlight (in the absence of management, where necessary);
  3. Review of management letter issued by external auditors and management's response thereto;
  4. Ensuring coordination between the internal and external auditors of the Company;
  5. Review of the scope and extent of internal audit and ensuring that the internal audit function has adequate resources and is appropriately placed within the Company;
  6. Consideration of major findings of internal investigations of activities characterized by fraud, corruption and abuse of power; and management's response thereto;
  7. Ascertaining that the internal control systems including financial and operational controls, accounting systems for timely and appropriate recording of purchases and sales, receipts and payments, assets and liabilities and the reporting structure are adequate and effective;
  8. Review of the Company's statement on internal control systems prior to endorsement by the Board of Directors and internal audit reports;
  9. Instituting special projects, value for money studies or other investigations on any matter specified by the Board of Directors, in consultation with the CEO and to consider remittance of any matter to the external auditors or to any other external body;
  10. Determination of compliance with relevant statutory requirements;
  11. Monitoring compliance with the best practices of corporate governance and identification of significant violations thereof; and
  12.  Consideration of any other issue or matter as may be assigned by the Board of Directors.

 

Human Resource & Remuneration (HR & R) Committee Members

 

  • Mr. Faisal Ahmad                   Chairman
  • Mr. Amir Naseem Sheikh        Member
  • Mr. Rehman Naseem             Member

 

Terms of Reference


The Human Resource and Remuneration Committee was constituted on October 05, 2012 and its terms of reference were defined as follows:  
The Committee shall be responsible for recommending the following to the Board: -


  • Human resource management policies
  • Selection, evaluation, compensation (including retirement benefits) and succession planning of the Chief Executive Officer,  Chief Financial Officer, Company Secretary and Head of Internal Audit.
  • Key management positions who directly report to CEO.
 
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