Contents

COMPANY.........................................................................................................................................2

OUR BUSINESSES.........................................................................................................................2

AFFILIATED COMPANIES............................................................................................................. 4

ASSOCIATED COMPANIES.......................................................................................................... 5

OUR VISION & MISSION............................................................................................................... 8

COMPANY VALUES........................................................................................................................ 8

CODE OF ETHICS.......................................................................................................................... 8

DEPARTMENTS...............................................................................................................................8

OBJECTIVES....................................................................................................................................9

SWOT ANALYSIS OF SITARA CHEMICAL.................................................................................9

PRODUCTS.................................................................................................................................... 10

GOVERNANCE.............................................................................................................................. 11

CEO PROFILE............................................................................................................................... 14

CONCEPTS & APPROACHES................................................................................................... 20

CORPORATE SOCIAL RESPONSIBLITY................................................................................ 22

ENVIRONMENTAL POLICY........................................................................................................ 28

QUALITY POLICY......................................................................................................................... 28

OHSAS POLICY............................................................................................................................ 28

THE ROLE OF LEADERSHIP IN QUALITY MANAGEMENT............................................... 28

PROCESS CONTROL.................................................................................................................. 30

SUPPLY CHAIN & DISTRIBUTION CHANNELS.....................................................................33

INVESTORS INFORMATION...................................................................................................... 35

ISO & ACHEIVEMENTS............................................................................................................... 37

1
Sitara Chemical Industries
Ltd.

COMPANY
SCIL was incorporated in 1981 and began
producing caustic soda in 1985, initially at a rate of
30 metric tones Caustic a day. The plant’s capacity was gradually increased over years
to current level of 610 metric tones a day.In addition, various by-product facilities
have been added and expanded from time to time to cope with growing demand.
Company entered into Textile Spinning Business in 1995. Its specialty chemicals and
export division was established in 2001 and agri chemicals division in 2003.

OUR BUSINESSES

● CHEMICAL DIVISION

Operation of Chlor-alkali plant, wherein Caustic Soda and Chlorine Gas are produced
out of common salt through electrolysis process. Caustic Soda is a basic chemical
having a broad spectrum application in various industrial processes. A number of
bi-products being manufactured are chlorine based.
2
Spinning units, wherein all types of yarn e.g. Combed, carded, knitting and Slub yarn
are being spun to catering domestic/export market.

Agri application Nutrients and Soil yarn conditioner.

In addition to foreign technology based products various products have been

developed by company R & D people. Such products are covered in Specialty

Chemical and Agriculture products.

● GASES DIVISION

Sitara Chemicals is the largest chlor alkali complex on national basis. Besides
manufacturing Caustic Soda and various allied chemicals, the company has been able
to set up independent plants of some more gases i.e. 01.Nitrogen (N2) 02.Carbon
Dioxide (CO2) in the same premises, during last one and half year.

For proper marketing of these gases, a separate GASES DIVISION has been
established. Sufficient quantity of company owned cylinders are in operation,
meanwhile, two vehicles are deployed for cylinder carriage to the customers.
Customer owned cylinders of Carbon Dioxide and Nitrogen are also filled. Further,
we have state of the art cylinder testing facility at the plant.

● SPECIALTY DIVISION

We aim to be the leading service-driven company in the specialty chemicals industry,

3
for national & International markets

Our commitment is to contribute to the success of our customers. To combine

technology and innovations with superior application skills for the success of
customers operations.

● SPINNING

Established in 1990 this spinning unit of Sitara Group is engaged in the production of
top quality Polyester / Cotton (PC) and Polyester / Viscose (PV) having daily
production capacity of 22080 Spindles (45,000 Lbs Approx.).

AFFILIATED COMPANIES
Sitara Group of Industries is one of the renowned
industrial groups of the country. This group started
its industrial activity with textile weaving sector in
1956 under leadership of two brothers, Haji Abdul Ghafoor (Late) and Haji Bashir
Ahmed. Sitara Group by now is in textile cloth finishing and processing, textile
spinning, chlor alkali industries and power plant. Haji Abdul Gafoor (Late) and Haji
Bashir Ahmed the present Chairman of the Group, the two creative and courageous
men, latter joined by second generation, making a blend of experience and modern
business knowledge, managed the business growth and development with assistance
of highly qualified team of professionals. Faith in Almighty Allah and in their own
abilities & commitment to the cause, untiring efforts and leadership qualities of the
family, established the group, which now stands amongst Leading Industrial Groups
of the Country, under the Chairmanship of Haji Bashir Ahmed.

● Sitara Peroxide Ltd.

4
History of Sitara in Chemical sector started back in 1981 with commissioning of
Sitara Chemical Industries Ltd. Since than it is having a market leadership position.
Which continue to be strengthened. Sitara Peroxide Limited is an other landmark
achievement of Sitara Group; never before has hydrogen peroxide been produced on
such a large scale in Pakistan.

● Sitara Textile Ltd.

Sitara Textiles is among the foremost enterprises of Pakistan. The group started with
textile processing in 1956 and progressively flourished into a renowned industry. We
aspire to provide outstanding quality materials to our clients by gratifying their
expectations and maintaining their confidence on a supreme level. Sitara textiles
operate worldwide catering to the local markets as well as serving the international
markets. Sitara Hamza private Ltd. supplies to the local market whilst Sitara textiles
focuses 100% on export. We always endeavor to offer superlative quality textiles by
adopting the most innovative approaches. Sitara textiles along with its subsidiaries
outshine the entire textile industry.

● Sitara Energy Ltd.

Sitara Energy Ltd. (the Company) is incorporated in Pakistan as a Public limited

company under the Companies Ordinance, 1984 and is listed on all stock exchanges
in Pakistan. The main object of the Company is generation and distribution of
electricity. The registered office of the company is situated at 601, 602 business centre,
Mumtaz Hassan Road, karachi. The project is located at Tehsil Jaranwala, District
Faisalabad in the province of Punjab.

ASSOCIATED COMPANIES

● Aziz Fatimah Girls High School

This school is situated in Gulshan-e-Eqbal to provide quality education at doorstep to

the girls residing in this area. It has highly qualified and trained teachers. School has
just started its first educational year.

● Aziz Fatimah Medical and Dental College

Aziz Fatimah Medical and Dental College Faisalabad or AFMDC, is a medical

institution in Punjab, Pakistan. It is located on west canal road at old Ghafoor Bashir
Children Hospital Building Faisalabad.

5
● Aziz Fatimah Hospital

Aziz Fatimah Hospital is a welfare project of Sitara Group of Industries established in

1979, inaugurated by the then President of Islamic Republic of Pakistan with the
objective to provide health facilities to the people of Faisalabad and adjoining areas at
lowest possible cost.The Hospital is registered under Section 2(36) of income tax
ordinance 2001 as Non Profit Organization.AFH is a teaching hospital for Aziz
Fatimah Medical & Dental Collage approved by UHS Lahore.The Hospital is having
more over 500 beds,approved by Pakistan Medical & Dental Council for house job
of junior doctors. Since its inception in 1979 the hospital has achieved many
milestones regarding treatment of ailing humanity. Besides almost full occupancy of
beds in indoor, more than 700 patients are being benefited daily from outdoor. OPD
has been established in a newly constructed centrally air-conditioned building. It
consists of General and Executive OPD.

The Consultants on hospital roll, as well as visiting Consultants provide outdoor

services 7-days a week. OPD services are available in disciplines of Internal Medicine,
General Surgery, Nephrology, Neurology,Neurosurgery, Urology, Eye, ENT,
Gynae/Obs, Dermatology, Psychiatry, Dental & Maxillofacial Surgery, Psychology,
Speech therapy and Nutrition.On the spot lab sample collection facility is also
available in OPD. The patients are extended out patients services at a registration of
Rs. 20/- only. The poor and needy patients are provided with free medicines.

Private rooms of four types have been made for the private patients. Semi-private
comprises of 20 beds with recently added 43 beds i:e UMER-E-FAROOQ &
USMAN-E-GHANI wards Upper Private Rooms ,Executive Rooms and VVIP Rooms.
The rooms are air conditioned and provided with all medical facilities. Dedicated
Medical and Nursing staff have been deployed to look after the private patients.

The professional team of Consultants and clinical staff in collaboration with

administrative support is committed to provide round the clock quality medical care to
the needy people.

● Sitara Developers (Pvt.) Ltd.

Sitara Developers (Pvt) Limited is a Sitara Group company with following directors:-

○ Haji Bashir Ahmad

○ Mian Muhammad Adrees

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Principle activity of the company is targeted to deal in business ventures such as
housing schemes and business centers. One of the main project of the company is
Sitara Mall in the main posh locality of the Faisalabad (D-Ground) equipped with
most modern architecture work for utilities of occupants, customers and visitors with
all amenities. The project has been designed by M/s Pervaiz Iqbal & Associates (one
of the leading architects in the country) and also being monitored by them. The
construction work of the Sitara Mall is in progress. This is one of the very advanced
amenities equipped Mall with a different and new style from the current prevailing
Malls in the country. The detailed features of Sitara Mall are as follows:

○ Homely atmosphere where families can shop with safety and comfort

○ Offices and apartments on upper floors

○ Attractive and playful environment for children

○ Open air Bar BQ on top floor

○ Double Basement car parking (One basement for Occupants of Shops, Offices,
apartments and other for customers)

○ A place for social gathering

○ Eating places in shopping area where customers can sit, eat and relax

○ Centrally Air Conditioned

○ Capsule Lifts from Basement to Top Floor

○ An uplift in shopping culture of Faisalabad

● Sitara Institute of Management & Technology

(Institute of Engineering and Technology in Faisalabad)

There are some of the premier Technical and Management institutes in Pakistan which
are conducting useful programs for developing skilled workforce, technicians and
middle-management professionals for the manufacturing sector. Sitara Group of
Industries (SGI) in its own capacity has established Sitara Instituate of Management
& Technology (SIMT) for joining hands with alike institutions.

7
OUR VISION & MISSION
Vision

Strive to develop and employ innovative technological solutions to add value to

business with progressive and proactive approach.

Mission

Continuing growth and diversification for bottom line results with risks well
contained.

COMPANY VALUES

○ Integrity and Honesty

○ Open, Respectful and Supportive

○ Prepared to take challenges and see them through

○ Deep regards for Customers, Business partners and employees

○ Self-critical and accountable

○ Quality in products and dealings

CODE OF ETHICS
We believe in stimulating and challenging team oriented work environment that
encourages, develops and rewards excellence and diligently serve communities,
maintaining high standards of moral and ethical values.

DEPARTMENTS

● Human Resource

● Finance

● Commercial

● Marketing

8
● Information Technology

● Research & Development

OBJECTIVES

● Safety

● Quality

● Integrity

● Respect

● Excellence

● Innovation

SWOT ANALYSIS OF SITARA CHEMICAL

● STRENGTH

○ Large Manufacturing (caustic soda)

○ Largest Shareholder

○ Advance Technology

○ Plant Infrastructure

○ Strong Management

○ Strong Brand Name

○ Financially Sound

● WEAKNESSES

○ Need Sizable Market to Sustain

9
○ Lack of Operation in Abroad

○ Relying on Permanent Customers

● OPPORTUNITIES

○ Increase Production Capacity

○ Increase Product Line

○ Taking Advantages of Geographic Position

○ Provide Online Customer Service &

Ordering System

● THREATS

○ Competitor

○ Economic Environment

○ Energy Crises

○ Threat of Stakeholders

○ Unstable Law & Order Situation

PRODUCTS

● Basic Chemicals

○ Ammonium Chloride

○ Bleaching Powder

○ Caustic Soda Flakes

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○ Caustic Soda Liquid (32-50 %)

○ Caustic Soda Solid

○ Hydrated Lime

○ Hydrochloric Acid

○ Liquid Chlorine

○ Sodium Hypochlorite

● Specialty Chemicals

○ Aluminium Sulphate

○ Calcium Chloride Dihydrate

○ Copper (I) Chloride

○ Ferric Chloride

○ Magnesium Carbonate

○ Nickel Chloride Hexahydrate

○ Calcium Chloride (Prills)

● Gases

○ Carbon Dioxide

GOVERNANCE
Director Information

● MR.MUHAMMAD ADREES – CHIEF EXECUTIVE OFFICER

Mian Muhammad Adrees, Chief Executive, SCIL graduated from Punjab University
before proceeding to U.K. for higher training in Business Administration. On his
return in 1982, he joined Sitara Textile Industries as Director – In charge Export till
11
1983-84. Subsequently, he was transferred to Sitara Chemical Industries Ltd. to take
over as “Chief Executive Officer”. Under his leadership SCIL has achieved rapid
expansion; bringing annual production capacity to 201,300 MT from a meager
capacity of 10,000 MT in 1984. The company has also enjoyed increased profitability
and a substantially improved credit profile under his leadership.

138-C Peoples Colony, Faisalabad

Phone: 92-041-4689141-45 92-041-8544318
Fax: 92-041-4689147-48
Email: SCIL@SITARA.COM.PK
NIC #: 33100-8359253-9
NTN #: 13-10-0296994

● MR.HASEEB AHMED – DIRECTOR

Mr. Haseeb Ahmad is Director of SCIL and Son of Mr. Muhammad Adrees (CEO).
He is business graduate from LUMS with distinction. He joined SCIL in July 2009
and brought with him a strong knowledge from a prestigious school of business. Till
December 2012 he had been looking after Finance & Accounts, Commercial
operations and Global marketing departments in the company. During this phase
company achieved marvelous improvements and successes, under his guidance and
hard work, in the fields of exports, finances and ultimately in profitability. Afterwards,
in January 2013 Mr. Haseeb Ahmed took the charge of works leaving charge of
Financial Operations and re-designated as Director Works, Commercial operations &
Global Sale with a confidence of management for achievement of similar
achievements in productions operations.

138-C Peoples Colony, Faisalabad

Phone: 92-041-4689141-45
Fax: 92-041-4689147-48
Email: DIRECTOR@SITARA.COM.PK
NIC #: 33100-8730749-7
NTN #: 2597238-3

● MR.MUHAMMAD KHLAIL – Director (Adv. To CEO on Marketing,

Management & Commercial)

Muhammad Khalil is a renowned professional in the field of Chemical Engineering,

Marketing and Commerce. Muhammad Khalil joined SCIL as General Manager

12
Process on February 01, 1992 for the Sitara Rayon Project. He holds a M.Sc. degree
in Chemical Engineering and has nearly 28 years of experience in Operations, Sales,
Project and Procurement.

H # 250-A,ST # 5, Cavalary Ground, Lahore Cantt, Lahore

Phone: 92-0300-8654300
Fax: 92-041-4689147-48
email: KHALIL@SITARA.COM.PK
NIC #: 35201-5653387-5
NTN #: 06-26-0203433

● Mr. ABDUL AWAL – DIRECTOR

Mr. Abdul Awal is serving as director of Sitara Chemical Industries Limited. He has
achieved following academic degress:
1. GCSE(o-levels) in business, sciences in 2007 from Taunton School, Taunton,
England, United Kingdom.
2. GCE(a-levels) in business, physics, mathematics in 2009 from Taunton School,
Taunton, England, United Kingdom.
3. BBA-Hons graduate (Specialization in Finance & Investment) in 2014 from NUST
Business School, NUST, Islamabad, Pakistan.
He has also an experience 1 year marketing at Five Star International.

H # 14, Bilal Road, Civil Lines, Faisalabad

Phone: 92-041-4689141-5
Fax: 92-041-4689147-8
NIC #: 33100-2778224-7
NTN #: 3787689-9

● MR. MUNEEB-UL-HAQ – DIRECTOR

Mr. Muneeb-ul-Haq is serving as director of Sitara Chemical Industries Limited. He

holds BSC Mechanical Engineering degree from NUAA, Nanjing, China. He is
working as Project Manager in new 35 MW Coal fired power plant project in Sitara
Chemical Industries Limited. He holds Certificate in Chinese Language Program from
XI’an Jiaotong – Liverpool Campus, Suzhou, China. He also holds Certificate in
Solar PV Business & Marketing from Solar Institute, Lahore. Pakistan.

120-C, Peoples Colony, Faisalabad

13
Phone: 92-041-4689141-5
Fax: 92-041-4689147-8

● MR.WAHEED AKHTER SHER – DIRECTOR

Mr. Waheed Akhter Sher is serving as director of Sitara Chemical Industries Limited.
He has completed Director’s Training Programme from Institute of Chartered
Accountants of Pakistan.

280-1 Y,Phase –III LCCHS Lahore Tehsil, Lahore Cantt, Lahore

Phone: 92-041-4689141-5
Fax: 92-041-4689147-8
NIC #: 352000-173787-3
NTN #: 1269311-1

● MR. AHMAD NAWAZ – DIRECTOR

Mr. Ahmad Nawaz is serving as director of Sitara Chemical Industries Limited. He

holds BSC (Computer) degree. He is a reputed businessman and has business
experience of more than 10 years in merchandising and textile industry machinery
manufacturing. He has also vast experience in power generation solution such as
Solar Power, Gas, Petrol & Diesel generators.

House No. 73, Khizar Street, Saeed Colony #2, Faisalabad

Phone: 92-041–4689141-2
Fax: 92–041–4689147-8
NIC #:
NTN #:
Auditor
M.Yousuf Adil Salim & Company
Legal Advisor
Mr. Sahibzada Muhammad Arif
compliance of Code of Corporate Governance.

CEO PROFILE

14
● MUHAMMAD ADREES

○ Chairman & CEO Sitara Chemical Industries Ltd (Pakistan)

○ Chairman Pakistan Chemical Manufacturers Association

○ President Federation of Pakistan Chambers of Commerce & Industry (FPCCI) –

2015

○ President ECO Chamber of Commerce & Industry (2015)

○ President D-8 Federation of Chambers of Commerce & Industry (2015)

○ President Faisalabad Chamber of Commerce & Industry (2004-05)

○ Multiple Council Chairman MD 305

○ International Association of Lions Club (2003-04)

○ International Director (Endorsed), Lions Clubs International – MD -305

(Pakistan)

Mr. Muhammad Adrees is the Chief Executive Officer of Sitara Chemical Industries
Ltd – the largest Chlor-Alkali Chemical Complex of Pakistan. Mr. Adrees is a
distinguished name in the business world at regional and national level and as a
Corporate Leader. He belongs to a well-known business family ‘Sitara’ engaged in the
business of Chemicals, Textiles, Energy and Real Estate.

He graduated from Punjab University and then went to England in 1982 for higher
Business Management Studies. He also has innumerable professional qualifications at
his credit from LUMS, Pakistan Institute of Management & Leadership course from
Montreal Canada.

Under his Corporate leadership, Sitara Chemicals is today the largest Chlor-Alkali
Chemical Complex of Pakistan with annual turnover over Rs 8 billion. The
production capacity was gradually increased from 30 MT/day (1984) to current 610
MT/day.

● Chairman & President

15
○ Chairman Faisalabad Industrial Estate Development & Management Company
(FIEDMC), a government owned Company and the largest industrial estate of
Pakistan.

○ Chairman “Committee on Broadening of Tax Base”, constituted by Ministry of

Finance (2015)

○ Chairman Caustic Soda Manufacturers Association.

○ Regional Chairman/Vice President FPCCI (2009-10)

○ Chairman FPCCI Standing Committee on Industries (2007-08 and 2013)

○ Chairman FCCI Office Management Committee (2007 to 2016).

○ Chairman FCCI HR Committee (2009 to 2016)

○ Chairman FCCI Land & Building Committee (2007 to 2017).

○ Chairman FCCI Standing Committee on ‘Research & Development’ 2009-10.

○ Chairman FCCI Advisory Committee to President 2005-06.

○ Former Chairman, Federation of Pakistan Chambers of Commerce & Industry

Standing Committee on Energy, Petroleum, Natural Resources & Electric Power
Generation (2001 – 2002)

○ Vice Chairman, Board of Governors, Govt. College for Women, Madina Town,
Faisalabad.

○ Former Vice Chairman Association of the Industrialists of Shahkot.

○ Former Honorary Secretary of Chenab Club (Guaranteed) Ltd. Faisalabad.

● CEO/DIRECTOR SITARA GROUP ENTITIES

○ CEO Sitara Chemical Industries Ltd

○ CEO Sitara Developers Pvt Ltd

16
○ CEO Aziz Fatima Medical & Dental College

● CORPORATE DIRECTOR/MEMBER

○ Member BODs/Managing Committee, Employers Federation of Pakistan

(2017-2019)

○ Member Board of Management, National Vocational and Technical Training

Commission (NAVTTC).

○ Steering Committee for Promotion of Islamic Banking constituted by Finance

Division Government of Pakistan (2013-16).

○ Member “Committee to Improve Pakistan’s rating on Ease of doing Business

Index” constituted by Ministry of Finance”

○ Member ACCREDITATION COUNCIL (NBEAC) – Higher Education

Commission – 2015).

○ Director -Pakistan Industrial Development Corporation (PIDC) – 2008-11.

○ Director – Faisalabad Industrial Estate Development Management Company

2004-05, 2008-12.

○ Director -STEDEC Technology Commercialization Corporation of Pakistan (Pvt)

Ltd, Government of Pakistan

○ Director – Pakistan Kidney Institute Islamabad (A Project of Shifa International

Hospital).

○ Member – BOG Pakistan Kidney and Liver Institute and Research Center (PKLI)

○ Former Director – TAKAFUL Pakistan.

○ Life Time Special Member of Confederation of Asia – Pacific Chambers of

Commerce and Industry (CACCI)

○ Life Member of SAARC Chamber of Commerce & Industry

○ Member Executive Committee of National Commission for Science and

17
 Technology, M/o Science & Technology, Islamabad.

○ Member Business Persons Council of Government of Pakistan.

○ Member FPCCI Standing Committee on Administration 2005-06.

○ Member, Managing Committee, Federation of Pakistan Chambers of Commerce

& Industry (2001 – 2002)

○ Member, Managing Committee, Federation of Pakistan Chambers of Commerce

& Industry (01-01-2005 -2006)

○ Member Lahore Chamber Standing Committee on Science & Technology

(2005-06).

○ Member of Provincial Council of the Punjab Boy Scouts Association

(6.12.06-6.12.08)

○ Member, Pakistan Chemical Engineering Council

○ Member Citizen Police Liaison Committee Faisalabad (2002-12)

○ Member, Citizen Police Foundation Faisalabad

○ Member Federal Boilers and Pressure Vessels Safety Board.

● Corporate Social Responsibility

○ Managing Trustee – Aziz Fatimah Trust Hospital Faisalabad.

○ Managing Trustee – Sitara Institute of Management & Technology (Aziz Fatimah

Trust)

○ Trustee – Aziz Fatimah Educational Complex (Aziz Fatima Trust)

○ Former Secretary General – Message Foundation, Lahore

○ President Sheikh Foundation Faisalabad.

● INTERNATIONAL ASSOCIATION OF LIONS CLUB (The largest NGO in

the world)

○ Chairman LCIF Chairperson of District 305-N1 for 2005-06.

18
○ Chairman, Charter Night, Host Lions Club Faisalabad (1986-87)

○ Charter President, Faisalabad City Lions Club (1989 – 90)

○ Chairman Membership Director 1990 – 94

○ Zone Chairman (1989 – 91)

○ Rebuilding Lion (1991 – 1992)

○ Region Chairman (1993-94), International Association of Lions Club.

○ District Coordinator CSF (1993 – 94)

○ Vice Chairman 5th District Convention (1993 – 94)

○ Chairman, District Governor’s Hon. Advisory Committee 1999 – 2000 District

305 N-1

○ Chairman, Sight Conservation and Work With The Blind 2001 – 2002

○ Chairman District Governor’s Advisory Committee (2002–2003) Lions District

305N-1

○ Member, Progressive Melvin Jones Fellows

○ Multiple Council Chairman MD 305 (2003 – 2004) Pakistan.

○ Lions Leader of Faisalabad 2007-08

○ Member Advisory Committee, International Association of Lions Club (MD 305)

2013.

● Distinctions

○ Received ‘Special Recognition Award 2005 – Management’ from 21st Century

Business and Economic Club, Karachi

○ AS A LION: Received many awards and Certificates from Club, District, and
International Lions Clubs. Have been attending District Conventions. Also
attended International Convention in Phoenix USA 1994, Seoul Korea 1995,
Montreal Canada 1996 and San Diego USA 1999.
19
CONCEPTS & APPROACHES
Total Quality Management TQM, also known as total productive maintenance,
describes a management approach which is applied in the organization for long-term
success through customer satisfaction. In a TQM effort, all members of an Sitara
Chemical Industries participate in improving processes, products, services, and the
culture in which they work. Total Quality Management Principles: Total quality
management system for a customer-focused, which involves all employees in
continual improvement. It uses strategy, data, and effective communications to
integrate the quality discipline into the culture and activities of the organization.
Many of these concepts are present in modern Quality Management Systems, the
successor to TQM. Here are some of the TQM approaches apply by the firm.

● Customer-focused

The customer ultimately determines the level of quality. No matter what an

organization does to foster quality improvement, training employees, integrating
quality into the design process, upgrading computers or software, or buying new
measuring tools, the customer determines whether the efforts were worthwhile.

● Total employee involvement

All employees participate in working toward common goals. Total employee

commitment can only be obtained after fear has been driven from the workplace,
when empowerment has occurred, and management has provided the proper
environment. High-performance work systems integrate continuous improvement
efforts with normal business operations. Self-managed work teams are one form of
empowerment.

● Process-centered

A fundamental part of TQM is a focus on process thinking. A process is a series of

steps that take inputs from suppliers (internal or external) and transforms them into
outputs that are delivered to customers (again, either internal or external). The steps
required to carry out the process are defined, and performance measures are
continuously monitored in order to detect unexpected variation.

● Integrated system

20
Although Sitara Chemical Industries may consist of many different functional
specialties often organized into vertically structured departments, it is the horizontal
processes interconnecting these functions that are the focus of TQM. Micro-processes
add up to larger processes, and all processes aggregate into the business processes
required for defining and implementing strategy. Everyone must understand the vision,
mission, and guiding principles as well as the quality policies, objectives, and critical
processes of the organization. Business performance must be monitored and
communicated continuously. An integrated business system may be modeled after
the Baldrige National Quality Program criteria and/or incorporate the ISO 9000
standards. Every organization has a unique work culture, and it is virtually impossible
to achieve excellence in its products and services unless a good quality culture has
been fostered as in Sitara.
Thus, an integrated system connects business improvement elements in an attempt to
continually improve and exceed the expectations of customers, employees, and other
stakeholders.

● Strategic and systematic approach

A critical part of the management of quality is the strategic and systematic approach
to achieving an organization’s vision, mission, and goals. This process, called
strategic planning or strategic management, includes the formulation of a strategic
plan that integrates quality as a core component.

● Continual improvement

A major thrust of TQM is continual process improvement. Continual improvement

drives an organization to be both analytically and creative in finding ways to become
more competitive and more effective at meeting stakeholder expectations. As Sitara’s
believe in continuous improvement process by latest tools, methods and approaches to
maintain their standards.

● Fact-based decision making

In order to know how well an organization is performing, data on performance

measures are necessary. TQM requires strategic planning that an organization
continually collect and analyze data in order to improve decision making accuracy,
achieve consensus, and allow prediction based on past history.

● Communications

21
During times of organizational change, as well as part of day-to-day operation,
effective communications plays a large part in maintaining morale and in motivating
employees at all levels. Communications involve strategies, method, and timeliness.

CORPORATE SOCIAL RESPONSIBLITY

Company is investing in health care and skills development of its people and
peoples of the area as well as education of best of the brains.

22
23
24
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● Invest in People

Sitara Chemical Industries Ltd is a renowned entity of Sitara Group of Industries

is well acknowledged for its contribution to socio-economic uplift of the region and
strengthening social safety nets. . We value our workforce as the most integral part of
our organization. We have introduced numerous tools to train, re-train/upgrade
our people. In this context, a Human Development Center has been established at
Sitara Chemical Industries Ltd where internal training sessions are held regularly. The
renowned trainers are also called at the Center to impart training in the fields of
technical, supervisory and management skills.

The CEO is the Managing Trustee of over 500 bed Aziz Fatima Hospital, Group
Educational Institutions; Aziz Fatima Education Complex, Bashir Naziran Kid
Campus. Additionally, he has a philanthropist role towards various national level
Charities such as Pakistan Kidney Institute, Islamabad, Jamiat Trust Taleem-ul-Quran,
Message Foundation etc.

26
Sitara Institute of Management & Technology has been set up in Faisalabad to
initiate Certificate and Diploma level training programs in need-based skills and
technologies as well as management disciplines.

At the same time the Company is investing in education, healthcare and training and
development for its people and best of the brains in the public. We have to keep
improving our people in the areas where they need to improve.

Perceiving the future challenges of nation’s human capital, the Company launched
training programs at Sitara Chemical Industries Ltd in collaboration with

27
Apprenticeship Board back in year 1994. Sitara Chemical Industries Ltd was
registered as Apprenticeship Training Center. Seventeen (17) technical trades have
been included to impart training to youth of Pakistan holding Matriculation / F Sc
certificates.

ENVIRONMENTAL POLICY

Sitara Chemical Industries Ltd (SCIL) is committed to continual improvement of its

Environmental Management System (EMS) by adoption of appropriate pollution
prevention measures and complying with all relevant environmental legislation /
regulations through training, teamwork and procedures as implemented from time to
time.

QUALITY POLICY

“Sitara Chemical Industries Ltd. is committed to remain alert and advance to

continuously grow as a Quality Symbol for its products and in meeting industrial and
consumer requirements, through training, team work, and procedures, on time, every
time.”

OHSAS POLICY

Sitara Chemical Industries Ltd. is committed to ensure a safe and healthy work place,
to prevent injury and ill health, for all its employees, stakeholders and visitors
working for it and on behalf of the company, complying with all relevant legislation /
regulations, through awareness training, teamwork, procedures, effective objectives
and program's, as implemented from time to time for continual improvement of its
Occupational Health & Safety performance.

THE ROLE OF LEADERSHIP IN QUALITY MANAGEMENT

The role of leadership in quality management forms the backbone of any

improvement strategy. Leaders provide a unity of purpose, while also establishing the
direction of the organization. As such, the responsibility of leaders consists of creating
and maintaining the internal environment. In this environment, employees are able to
become completely involved in achieving the organizations goals and aims. In this
way, good leadership is essential in order to improve quality across the organization,

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as the leading force that sets objectives and assists employees to implement these
objectives.

● To Improve Quality Management Leadership and Management

○ Be proactive and lead through example rather than dictating

The true leaders lead in a way that is active in implementing and following through on
actions, rather than simply dictating actions without leading by example.

○ Understand and react to fluctuations in the external environment

The external environment is every bit as important as the internal environment, which
is why leaders need to fully comprehend and correctly react to various changes within
this environment.

○ Consider the wants of ALL stake holders

From customers to owners, employees, suppliers, local communities and the general
public – these stake holders form a vital part of the quality management process, and
can greatly affect the organizations success if there is no relationship and
understanding from a leadership point of view.

○ Establish a clear view of the organization's prospects

A clear view of the organizations future is essential in order to accurately plan ahead,
by continuously changing goals and milestones in the future.

○ Establish common values and ethical role models throughout the

organization

Leaders instill a sense of values and ethics that are entrenched in the organizations
mission statement, acting as role models to inspire employees to be a part of quality
management initiatives based on these common values.

○ Develop trust and eradicate fear

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A good company relies on effective leadership to develop trust across internal and
external environments, without the need to use fear as a motivating factor.

○ Equip employees with the needed resources and freedom to strive for duty
and accountability

With a well-developed range of strategies that include all levels within the
organization, along with resources that equip employees to meet the organizations
goals, the entire organization can be involved in improving quality across the board.

○ Inspire, motivate and recognize contributions from all levels of employees

The ability to inspire and motivate staff across all levels allows employees to be
actively involved and invested in quality management initiatives.

○ Foster open and honest communication

Communication is essential in order for all levels within the organization to work
together to implement improvement strategies, and as leader, the role is to foster open
communication from all employees.

○ Teach, train and coach employees

Through learning and coaching on various improvement strategies and other

initiatives, employees are able to better understanding not only on what they are doing,
but why they are performing their tasks.

○ Develop challenging objectives and target

Through goal setting, leaders are able to foster constant growth and development
across the organization, by continually improving the standards of goals within each
department.

PROCESS CONTROL

It is the operations in the Sitara Chemical Industries Ltd. by smooth & continuous
plant operation. Troubleshooting day- to- day problems of process analyzing & plant
machinery. Optimize production by analyzing processes. Study tests reports

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throughout stages of production to determine degree of control over variables. Making
observations and taking measurements directly, as well as collecting and interpreting
data from the other technical and operating staff involved. Interface with other
internal engineering disciplines (mechanical, electrical, instrumentation) to ensure a
coordinated design and complete engineering deliverable. To Ensures that all process
& operation activities are safe, efficient and according to standards. Provide
operational, safety and trouble shooting training to process staff. Risk analysis &
impact assessment of the process overall. Oversee and Execute development,
operation and maintenance of plant for safe smooth and efficient operations. To
achieve given production targets & ensure the quality of product as per specifications.
Calculations for material & energy balances. Handle shutdowns and start ups. Prepare
estimate of production costs, production progress and stoppages reports and charts for
management. Problem list for the weekly and monthly meetings. Duty rosters of staff.
Stocktaking, handling and indents of important items. Assessing the availability of
raw materials and the safety and environmental impact of the plant. Writing process
procedures and SOP s for plant operations. These are the brief description of the
process control in Sitara Chemical Industries Ltd.

● Real Time Example

(Sitara Chemical’s BMR M-II inaugurated: caustic soda production to go up to

545 tonnes per day)

The chief executive officer of Sitara Chemical Industries Limited (SCIL), Mian
Muhammad Adress has announced that the caustic soda production will be increased
from 430 tonnes per day to 545 tonnes per day ie, about 180,000 tonnes per annum,
which will be sufficient to meet the national demand for the next three years.
Addressing a formal inauguration ceremony of BMR M-II, 210 tonnes per day caustic
soda plant, financed through Islamic Sukuk, here on Wednesday Mian Muhammad
Adress said that the evolution of membrane technology for caustic chlorine
production is hardly 30 years old. The basic idea for developing membrane
technology was to get rid of injurious technologies based on mercury and diaphragm
cells of asbestos technology. Membrane technology has comparative advantages of
less consumption of power, latest process control system and enhanced production, he
added.

BMR M-II, 210 tonnes per day caustic soda project is partly for expansion of 105
tonnes to meet the growing demand and partly BMP of obsolete technology and

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equipment. With the commissioning of our BMR project, we shall be closing our
mercury plant and thus making our production absolutely free from mercury based
caustic soda production, he disclosed. Presently, he mentioned that SCIL is the market
leader in the caustic chlorine industry. Commitment for Islamisation of financial
dealings started in the year 1997. In order to move in the direction on a fast track,
capital outlay on new projects was put on hold and likewise the expenditures, which
could be avoided for the time being till end of the year 1999. All interest-based loans
were almost settled, he added. Mian Adress said that the first privately placed
Musharika Term Finance Certificates (MTFC) were issued in the end of 1999 and
with the proceeds thereof the long-term loan was settled. For an expansion project, a
second listed issue of Musharika Term Finance Certificates (MTFC) of Rs 360
million were arranged in the year 2002. Both of the issues were based on sharing of
profits and losses, he explained. He said that the recent issue of Rs 1,100 million
Sukuk is relatively much bigger amount. Being first Sukuk issue in the private sector
in Pakistan, the issue is privately placed. This product is based on co-ownership of
assets "Shirkat-ul-Milk". SCIL and the investors are joint owners of the assets
financed through the Sukuk issue. This may be called as Musharika part of transaction,
he added. Mian Adress said that the investors have rented their share of project assets
to SCIL and are compensated by rental payments. The investors are entitled to rental
in proportion to their share/outstanding share of investment in the project. Rental is
based on a benchmark and partly on an agreed threshold of production level of that
plant.

Investors are a consortium of banks comprising Standard Chartered Bank, Allied

Bank Ltd, National Bank of Pakistan, First Habib Bank Modaraba and Dubai Islamic
Bank Pakistan Ltd after a grace period of two years, SCIL has undertaken to start
purchase of Sukuk units belonging to the investors in installment, scheduled over a
period of three years. Meezan Bank Ltd has been appointed as trustee. The rental
comprises of quarterly Kibor rate +1.60 percent per annum and up to Rs 0.05 per
annum based on actual production level achieved. Standard Chartered Bank the
arranger/advisory and Sheikh Nizam Yacouby, coordinator, Standard Chartered Bank
has issued a certificate of this transaction conforming to the principles of Shariah on
behalf of their Shariah supervisory committee, he added. Haji Bashir Ahmad,
Chairman, Sitara Group said that Sitara Chemical Industries had enhanced production
capacity from 30 tonnes/day in 1985 to 200 tonnes/day by the year 1999. Our
production capacity in almost seven years has reached to 545 tonnes/day after
adopting Islamic mode of financing. This is all due to fortitude and courage given by

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the Almighty Allah, wishes of my parents and other associates as well as the spirit
about elimination of Riba and promotion of Islamic financing in the companies
financial requirements and propensity for Islamic economics in the country. The
leading bankers Aafaq Khan, Masood Karim, Ejaz Farooq Randhawa, Azhar Aslam,
Saeed uddin, Najmul Hassan and others also appreciated the role of Sitara Group to
promote and adopt the Islamic modes of banking. Later, the bankers, media members
and other guests visit the new plant and watch the progress of the Sitara Group.

SUPPLY CHAIN & DISTRIBUTION CHANNELS

Supply chain management (SCM) is the active streamlining of a business' supply-side

activities to maximize customer value and gain a competitive advantage in the
marketplace. SCM represents an effort by suppliers to develop and implement supply
chains that are as efficient and economical as possible. Supply chains cover
everything from production, to product development, to the information systems
needed to direct these undertakings. Supply chain management (SCM) is the oversight
of materials, information, and finances as they move in a process from supplier to
manufacturer to wholesaler to retailer to consumer. Supply chain management
involves coordinating and integrating these flows both within and among companies.
It is said that the ultimate goal of any effective supply chain management system is to
reduce inventory (with the assumption that products are available when needed). As a
solution for successful supply chain management, sophisticated software systems with
Web interfaces are competing with Web-based application service providers (ASP)
who promise to provide part or all of the SCM service for companies who rent their
service. Supply chain management flows can be divided into three main flows:

● The product flow

● The information flow

● The finances flow

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The product flow includes the movement of goods from a supplier to a customer, as
well as any customer returns or service needs. The information flow involves
transmitting orders and updating the status of delivery. The financial flow consists of
credit terms, payment schedules, and consignment and title ownership arrangements.
There are two main types of SCM software: planning applications and execution
applications. Planning applications use advanced algorithms to determine the best
way to fill an order. Execution applications track the physical status of goods, the
management of materials, and financial information involving all parties. Some SCM
applications are based on open data models that support the sharing of data both
inside and outside the enterprise (this is called the extended enterprise, and includes
key suppliers, manufacturers, and end customers of a specific company). This shared
data may reside in diverse database systems, or data warehouses, at several different
sites and companies.

● BREAKING DOWN 'Supply Chain Management - SCM'

Typically, SCM attempts to centrally control or link the production, shipment and
distribution of a product. By managing the supply chain, companies are able to cut
excess costs and deliver products to the consumer faster. This is done by keeping
tighter control of internal inventories, internal production, distribution, sales and the
inventories of company vendors. SCM is based on the idea that nearly every product
that comes to market results from the efforts of various organizations that make up a
supply chain. Although supply chains have existed for ages, most companies have
only recently paid attention to them as a value-add to their operations.

Sitara Chemical Industries Ltd. Also work according to Supply Chain the step of
activities involved, it begins with the department of “Commercial” wing where it
decide and plan that what is the requirement of the firm and further provide the
inventory of raw material to the suppliers then it move forward to the procurement
management where they inspection the raw material for six hours in different labs and
if the requirement meets then move further if not then re-order and after the selection
they decide the terms & conditions that how to pay, full payment or on credit or half
payment at the beginning and remaining payment on the delivery day. After this, the
supply chain first step inbound logistic where they decide that which of the items
were placed according to the product specification, in this process it also plan that is
the capacity is enough for storing if not then the firm arrange other storing place
which has more space then the other one. Second after the material arrived in to the
firm store area then place it where it belong and move toward outbound logistic phase
where the finished goods were distributions channels take place. It is the one of the

34
 major job is to manage thing in particular manner that nothing would be compromised
with quality standards, there is a full process where every single details measured and
generate results according to the requirement.

INVESTORS INFORMATION

Symbol of the company assigned by respective

SITC
Stock Exchange

Shares 7,131,928 as on March

Free Float of the shares of Company
31, 2017

Rating of Company and instrument A+/A-1

○ Notice of Annual General Meeting (English)

○ Notice of Annual General Meeting (Urdu)

○ Dividend Mandated Form

○ E-Transmission of Annual Report

○ Form of Proxy (English)

○ Form of Proxy (Urdu)

○ The Shareholders who have Not Provided Copies of Their CNIC

● INVESTOR RELATION

Online form / Contact details of person designated for assisting and handling investor
grievances are:

35
SECP Investor Complaint Form

Contact person

Mazhar Ali Khan sb

601 – 602 Business Centre, Mumtaz Hassan Road – 74000

Tel # : 92-021-32413944, 32420620

Fax # : 92-021-32415452

E-mail : corporate@sitara.com.pk

○ Industry Associations

Caustic Soda Manufacturers Association

Last updated at 18th October, 2014

● FINANCIAL POLICY

Company has been striving for many years to get out of conventional interest-based
financial arrangements. In active consultation with Financial Advisors and Sharia
Scholars, a model of MUSHARKA Term finance Certificates (MTFCs) was
developed. The MTFCs, were issued at the end of 1999, and the proceeds were used
to repay the single interest-based long term facility then out standing, which was
otherwise repayable in installments by the end of year 2007. In view of the
non-availability of any precedence, it took more then two years to finalize this model
and the first arrangement was made with two banks on private placement basis.
During the year 2002 company embarked upon an expansion project of Rs. 650
million which was financed to the extent of Rs.360 million through listed TFCs, again
based on similar model of sharing on profits & losses. This issue was partially offered
for public subscription. Raw material purchases are financed on short-term
MURABAHA basis.

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 ● FINANCIAL VALUES

2004 2005 2006 2007 2008 2009

Shareholder
1,117,071 1,473,180 1,657,892 1,922,217 2,426,029 2,961,989
Equity

Total Assets
3,051,345 3,622,208 5,370,475 6,384,570 8,588,728 10,113,411
at cost

Turnover 3,506,148 3,942,391 3,811,890 4,374,052 5,449,570 6,178,399

Pre Profit
370,649 487,637 358,222 536,916 919,300 987,894
Tax

Profit After
238,624 295,548 266,513 373,040 622,345 630,455
Tax

Divident
5.5 7 6 5.50* 7.5 7.5
Payment

ISO & ACHEIVEMENTS

Here are the certificates achieved by the Sitara Chemical Industries Ltd. These ISO
Certificate are offered by process where Auditors who inspect the whole firm working
process, Quality and Standards, when requirement meets they offered the ISO
Certificate. ISO Certificates are yearly valid and firm have to register again for next
year. And sometime if there is some ambiguity then it move forward to the
“ Correction Action Requirement/Plan”, in which two category defined

● Major Issue

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● Miner Issue
After the inspection if the issue is major then they reject it and if the issue is miner
then they provide guide line to meet the standards to fulfill the requirement of
ISO.The awards and recognition have highlighted Sitara Chemical Industries Ltd.
efforts and encouraged greater productivity and reinforced stakeholder’s confidence.

● ISO 14001 ENVIRONMENT MANAGEMENT SYSTEM( EMS )

CERTIFICATION

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● ISO 9001 QUALITY MANAGEMENT SYSTEM (QMS) CERTIFICATION

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40
● OCCUPATIONAL HEALTH AND SAFETY (OHSAS) CERTIFICATION

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THE END

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