Reliance Weaving Mills Chairman's Message
Reliance Weaving Mills Limited plans to revamp and expand its existing textile manufacturing capacity.
It gives me great pleasure to present my review of our company's performance for the year 2013-14.
Pakistan textile industry, profitability & challenges
Pakistan is the largest exporter and the fourth largest producer of cotton yarn.
This year profitability of industry is low due to electricity crises and other challenges while the production cost of textile industry is increasing with the increment in interest rate, inflation, reduction in cultivation area and low availability of irrigation water at the sowing season
The EU has supported Pakistan's efforts to integrate into the global economy by granting Pakistan export EU reduced Tariff under the EU's generalized system of preference (GSP) during the year 2013-14.
The government should try its best to facilitate textile industry by making sure the availability of gas power, enhanced duty draw back rates, exports rebates, export refinance facilities at very competitive rates and availability to the farmers the irrigation water, increase in cultivation area and availability of certified seeds to help exporters to set future exports targets to avail duty free facility in EU to enhance trade volume for economic stability & growth.
Setting standards for Corporate Governance means developing robust corporate culture leading to the following:-
- Nurturing of Leadership Qualities
- Improvement in capabilities & potentialities
- Accountability & integrity
- Teamwork & commitment
- Honesty & openness
- Fairness & Transparency
- Efficient management
Financial and Operating Performance
I am satisfied with the performance of the company which is not as good as last year due to turbulent economic conditions, unprecedented load shedding and depressed sale prices of our yarn & fabrics.
I am convinced that my management team will go through the untowards economic conditions successfully to accomplish greater heights.
Your company has committed to invest Rs. 2.2 billion in Fatima Energy Ltd a Associated Company for uninterrupted power supply to cut down production losses and improve the profitability of the company accordingly.
Evaluation of Board and Board Members
Pursuant to Caption V(e) of Code of Corporate Governance, 2012 the board has developed an annual performance criteria for the board and its members details of which are given in the Director report.
The Role of Chairman & CEO
The separation of the role of chairman and the CEO is desirable because it is envisaged that such arrangement enhances the performance of the company as it is well-known saying that “two heads are better than one”
The Chairman is basically a leader and mediator to head the meeting of the Board of directors effectively and take decisions after a free and open sharing of views with in a limited time quickly & efficiently.
The CEO is the executive head of the company who heads the all facets of the company through heads of respective functions of the Company and manages the day to day operations of the company and provides leadership toward the achievement of the Corporate Plan.
The CEO is responsible for leading development & execution of company's short/long term strategies with a view to enhance the shareholders' value. The CEO liaise with the board and communicates on behalf of management.
The details of the Roles of Chairman & CEO are given in detail in the directors' report
Human Resource Development & Retention
Your company places highest importance to the manpower and provides equal opportunities, for advancement based on merit to all cadre of employees. I believe in human resource
development through on job training and sending them for academic advancement in the Institutions of repute.
Your company is an equal opportunity employer and this is practiced in all spheres of company's business, activities including recruitment and employment.
Fiduciary Responsibilities of the Board of Directors
The Board discharges its fiduciary responsibilities through participation in Board Meetings held at least quarterly to review and adopt the company's financial statements, strategic capex plans, decisions, projections, forecasts, corporate plans and budgets.
In accordance with the requirements of Code of Corporate Governance, the Company presents all related party transactions before the audit committee and the board for their review & approval.
I am grateful for the contribution made by the board members and continuous support received from all stakeholders.
I would like to thank the employees of all cadres for their sincerity hard work and dedication to achieve the company's objectives.
It is my privilege to be associated with such a company and convinced that we will go through the turbulent economic conditions successfully.
Fawad Ahmed Mukhtar
Reliance Weaving Mills Limited
Page Last Updated: Sunday, May 01, 2016