SHAREHOLDERS SUMMARY

Name Directors/ Sponsors

Associated Companies

General Public

Free-Float Total outstanding shares

AL ABBAS 12,303,911 3,824,466 259,400 938,523 17,362,300

FAHANJDWM.ALI KI COMPANY

MANAGEMENT EFFECTIVENESS

RETURN ON EQUITY %

COMPANY INDUSTRY

2008 2009 2010 2011 2012 CURRENT

AL ABBAS

8.63 25.09 16.43 16.42 28.39 14.41

FARHAN 14.41

JDW 14.41

M.ALI 14.41

ACKNOWLEDGEMENT

“KNOWLEDEGE IS NOT YOUR RIGHT BUT A PREVILAGE SEEK ALLAH’S HEALP FOR IT, IF YOU SEEK HIS HELP, YOU WILL HAVW IT. AND IF YOU DON’T SEEK YOU WILL

NEVER HAVE IT “

First and foremost our gratitude goes to almighty Allah for giving us the strength and knowledge to successfully complete this report.

I would like to thank our teacher mam Maryam Masnoon for teaching us this subject like true professional she has given us the firsthand knowledge of corporate finance. This project although at times was thought too demanding but it gives me a true experience of the intricate steps involved in this report her valuable guidance and support helped us in bringing this report to its completion

Last but not least we would like to thank our parents, friends and colleagues who helped us in this project

RETURN ON ASSETS %

COMPANY INDUSTRY

2008 2009 2010 2011 2012 CURRENT

AL ABBAS

1.99 7.57 5.45 4.26 10.32 7.93

FARHAN 7.93

JDW 7.93

M.ALI 7.93

BOARD OF DIRECTORS

AL ABBAS

FARHAN JDW M.ALI

Numbers of Members 7 8Executive 2 6Non-Executive 5 2

Chief Executive Officers:

AL ABBAS FARHAN JDW M.ALIName Mr.Shuraid Qureshi Mr.Ahmed Ali BawanyYears at company 1995

Studies Gold medalist in BE/Engineering Business Entrepreneurship

CEO CompensationSalary ----- 360,000Bonus ------Total compensation

-------

FARAN SUGAR MILL:

Faran sugar Mills Limited is an agri-based company, engaged in the business of manufacturing and selling of refined sugar. The company is a unit of Amin Bawany Group which is a leading business group having interests in diversified businesses such as, insurance, leasing, particle board, sugar , ethanol trading, construction and other important business sectors of Pakistan.

Having a legacy of diversified experience in industrial sectors, FARAN SUGAR MILLS LIMITED commenced its operations in November 1981 with an aim to be Insha Allah, one of the best sugar mills in the industry and its entire operation revolves around one objective, to satisfy the diverse needs of its customers.

The plant is located at Sheikh Bhirkio, District Hyderabad, which is considered as a suitable sugarcane growing area and ensures ample and uninterrupted supply of required quantity / quality of cane during the crushing season. The plant started commercial production in 1983 with installed cane crushing capacity of 2000 TCD extendable to 2,700 TCD which was later enhanced to 8000 TCD.

Al-Hamdulillah, Faran Sugar is ranked amongst top five sugar mills operating in the Province of Sind in terms of production. The diversified portfolio of our customers includes the manufacturers of cereals, confectionery, syrups, drinks, ice cream, biscuits and so on. Having one of the most efficient sugarcane processing facilities, Faran Sugar is well placed to develop its capability in the years ahead. We strive to take market leading position through anticipating all the important factors that affect our business verticals. We are committed towards achieving the highest standard of quality and environmental care.

The Company has made long term investment in a distillery unit namely, Unicol Limited, where entire molasses of the company is used to produce industrial and fuel ethanol. Unicol Limited was formed in accordance with the terms of a Joint Venture agreement concluded amongst the three leading sugar Mills of Sindh.

This year, the Company has completed Phase I of the comprehensive project of modernizing manufacturing facilities and equipment’s in order to enhance production capacity as well as to ensure efficiency and integrity of plant's assets.

Sugar Industry Overview:

Sugarcane is one of the most important cash crops and the industry is considered as the driving engine of the rural economy in Pakistan. Pakistan is the world’s fifth largest producer of sugarcane in terms of acreage, and the 15th largest producer of sugar. The sugar industry is the country’s second largest agro-industry sector after textiles.

In Pakistan both the crop and industry is termed as a vehicle for rural uplift and development. The sugar industry is cyclical in nature. The harvesting of sugar cane is dependent on weather as well as the availability of adequate water. The sugarcane yield and recovery rates are considered as the determinants for the production of raw and refined sugar. In 2011-12, heavy rainfall followed by favorable condition helped increase sugar production and accordingly the price of sugar eased in the domestic market. Total sugarcane production in 2011-12 was reported as 58.03 million tons, compared to 55.4 million tons for the year 2010-11. The sugar production from above crop was reported as 4.4638 million tons by the close of crushing season, which surpassed earlier estimates of 4.4 million tons. The industry overall performed fairly well during the season 2011-12.

Total consumption over the year is increasing mainly due to the growing demand by the processed food sector. Bulk sugar consumers such as bakeries, candy, ice cream and soft drink manufactures account for about 60% of the total sugar demand. Sugar cane by-product includes molasses, press mud and Bagasse. Molasses is utilized in the production of Ethanol in the distilleries and has become an important part in the overall profitability of sugar mills. The Bagasse that remains after sugar cane crushing is burnt to provide heat-used in the mills and generation of electricity. It is also used as raw material for paper and chipboard production.

The estimated area of sugarcane during the crop cycle 2012-13 is reported around 1.13 million hectares compared to 1.057 million hectares during preceding crop cycle, i.e., 2011-12. It is estimated that sugar production from an area of 1.13 million hectares would give an approximate yield of 64 million tons of sugarcane based on 56 tons per hectare. The sugar production is likely to be around 5 million tons against estimated domestic consumption 4.337 million tons.