MINUTUES OF 17th BOARD MEETING

OF
SINDH ENTERPRISE DEVELOPMENT FUND
(SEDF)

1st Floor, Block – B, F.T.C Building, Shahrah-e-Faisal, Karachi. Tel: 021-99207512-4, Fax: 021-99207515, email: info@sedf.gos.pk, web:
www.sedf.gos.pk

pg. 1
17th Board Meeting of SEDF was held on Friday 22nd June 2018 at
1500hrs in the Committee Room of Sindh Board of Investment Karachi.

Mr. Mehboob ul Haq, CEO SEDF welcomed the Board Members and proceeded
with agenda of the meeting. The meeting started with recitation from Holy Quran.

List of Participants and is placed at Annexure A.

Following agenda items were discussed during the meeting

Agenda Item No. 1. Approval of last Board Meeting Minutes

Agenda Item No. 2. Introduction of SEDF’s newly notified Board Members

Agenda Item No. 3. Approval of annual audited accounts for financial year 2016-17

Agenda Item No. 4. Approval of annual budget for the financial year 2018-19

Approval for Establishment of Provident and Gratuity Fund

Agenda Item No. 5.
for SEDF permanent staff

Approval of Performance Evaluation Report of Sardar Yasir

Agenda Item No. 6.
Hussain, Internal Auditor

SEDF Review and Strategy for Business Development for the

Agenda Item No. 7.
next year

Agenda Item No. 8. Any other matter with permission of Chairperson

1st Floor, Block – B, F.T.C Building, Shahrah-e-Faisal, Karachi. Tel: 021-99207512-4, Fax: 021-99207515, email: info@sedf.gos.pk, web:
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pg. 2
Agenda Item No. 1: Confirmation of Last Board Meeting Minutes

Decision: The Board resolves to conform the minutes of the 16th Board Meeting
held on 4th May 2018 at 1700 hrs in the Committee room of Sindh Investment
Board.

Agenda Item No. 2: Introduction of SEDF’s newly notified Board Members

Managing Director SEDF informed the Board Members According to

Code of Corporate Governance Rules (2002) Board should comprises of majority
of independent Non Executive Director. He further stated that Dr. Syed Nadeem
Qamer and Mr. Usman Ghani Khatri has served the SEDF Board for two terms
therefore, in order to ensure compliance with rules it was indispensible to replace
the above said members. He further stated that SEDF has appointed Mr. Abdul
Rahim Suriya and Mr. Qabool Muhmmad Khatiyan as new Board Members.

Managing Director, SEDF Stated that Mr. Adul Rahim Suriya FCA, FCMA
and he have over 33 years' experience in Accounting, Auditing, Corporate Finance
and Operational Management. He is former President of the Institute of Chartered
Accountants of Pakistan and was a Council member ICAP 16 years. He has been
member of International Education Board IFAC for 6 year

He further explained, that Mr. Suriya is Presently a Partner at Suriya

Nauman Rehan & Co., Chartered Accountants and he is as Independent Director of
Allied Engineering Management Company (Private) Limited, management
company of Allied Rental Modaraba

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pg. 3
 While introducing the second new Board Member he stated that Mr. Kabool
Muhammad Khatiyan presently working as President, Sindh Chamber of
Agriculture. He has worked in Formulation of Sindh Water Policy and Agriculture
policy. Currently he is an Executive Member, Agriculture Credit Policy Pakistan at
State Bank of Pakistan, Executive Member at Environment Protection Agency
(EPA) Sindh and Executive Member, Sugarcane Board for Price Fixing in Sindh.

Ms. Naheed Memon welcomed the newly notified Board Members to SEDF
Board and stated that SEDF Will get immense benefits from the financial expertise
of Mr. Abdul Rahim Suriya and Agriculture Skills of Mr. Qabool Muhmmad
Khatiyan

1st Floor, Block – B, F.T.C Building, Shahrah-e-Faisal, Karachi. Tel: 021-99207512-4, Fax: 021-99207515, email: info@sedf.gos.pk, web:
www.sedf.gos.pk

pg. 4
Agenda Item No. 3: Approval of Annual Accounts for Financial Year
2016-17

SINDH ENTERPRISE DEVELOPMENT FUND

BALANCE SHEET
AS AT 30 JUNE 2017
2017 2016
Rupees Rupees
FUND AND LIABILITIES
Fund 1,132,430,159 1,135,330,689

Current Liabilities
Accrued liabilities 200,000 200,000
Provision for taxation 88,858,195 94,542,162
Provision for gratuity 2,582,200 1,981,000
91,640,395 96,723,162
Contingencies and commitments

TOTAL FUND AND LIABILITIES 1,224,070,554 1,232,053,851

ASSETS
Non-Current Assets
Property and equipment 3,490,244 3,155,058

Current Assets

Advances and prepayments - 182,808

Accrued mark up 24,150,207 29,192,207
Short term investments 408,624,278 389,023,449
Advance income tax 28,061,062 28,022,936
Bank balances 759,744,763 782,477,393
1,220,580,310 1,228,898,793
TOTAL ASSETS 1,224,070,554 1,232,053,851

1st Floor, Block – B, F.T.C Building, Shahrah-e-Faisal, Karachi. Tel: 021-99207512-4, Fax: 021-99207515, email: info@sedf.gos.pk, web:
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pg. 5
 SINDH ENTERPRISE DEVELOPMENT FUND
INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2017
2017 2016
Rupees Rupees
INCOME

Mark up income 71,019,028 83,129,391

EXPENDITURE

Credit assistance and subsidization (23,387,606) (15,794,619)

General and administrative expenses (56,286,374) (17,671,753)
Bank charges (630) (263)
(79,674,610) (33,466,635)

Other Income 71,085 -

(Deficit) / Surplus before tax (8,584,497) 49,662,756

Taxation 5,683,967 -

(DEFICIT) / SURPLUS AFTER TAX FOR THE YEAR (2,900,530) 49,662,756

1st Floor, Block – B, F.T.C Building, Shahrah-e-Faisal, Karachi. Tel: 021-99207512-4, Fax: 021-99207515, email: info@sedf.gos.pk, web:
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pg. 6
 The Managing Director SEDF stated that the in financial year 2016-17
SSDF incurred net deficit of PKR 2,900,530 compare to the surplus of PKR
49,662,756 in corresponding year 2015-16 due to following reasons

1. The first reason behind the deficit is substantial decrease of 15% in interest
income from previous year as reflected by fall in the interest rates by State
Bank of Pakistan in their periodic announced monetary policy.
2. The second reason behind the deficit is increase in credit assistance of hefty
53% compared to the previous year.
Mr Shiekh Shakeel, Additional Secretary Technical agricultural
department Govt of Sindh highly appreciated the increase in credit assistance by
SEDF to the people of Sindh and stated that this will help to boost the economy of
Sindh.

Mr. Riaz Ahmed Gill Additional Secretary Finance Department Govt.

of Sindh inquired regarding the late completion of audit of financial year 2016-17.
In response Managing Director SEDF stated that due to human resources constraint
SEDF unable to conclude the audit in the stipulated time, he further stated that in
order to overcome this issue SEDF has recently hired qualified personal for
completing the next year audit on prescribed time

Mr. Abdul Rahim Suriya managing partner at Suriya Nauman Rehan &
Co., Chartered Accountants directed to obtain tax advice from tax consultant
regarding the reversal of tax amount of Rupees 5,683,967 in the financial year
2016-17. In Response Sardar Yasir Hussian Internal Auditor SEDF stated that as
per the requirement of FBR, They issue NPO status under the Section 2 subsection
136 of Income Tax ordinance (2001) against submission of Audited Financial
Statement. However FBR is agreed with the numbers provided therefore obtaining
tax advice in this regards seems repetitive. The board has agreed with Sardar Yasir
Hussain’s aforementioned statement and directed to annexed the Non Profit
Certificate with minutes of the meeting

Decision: The Board resolves to approved the Annual Audited Accounts 2016-17

1st Floor, Block – B, F.T.C Building, Shahrah-e-Faisal, Karachi. Tel: 021-99207512-4, Fax: 021-99207515, email: info@sedf.gos.pk, web:
www.sedf.gos.pk

pg. 7
Agenda Item No. 4: Approval of annual budget for the financial year 2018-19

BUDGET ALLOCATION FOR THE FINANCIAL YEAR 2018-19

Expenditure
BUDGET 2017-18 BUDGET
ACCOUNT HEAD
2017-18 (15th June, 2018-19
2018)
OPERTAIONAL EXPENDITURES

CREDIT ASSISTANCE AND SUBSIDIZATION 25,000,000 9.488,290 25,000,000

CREDIT SUBSIDIZATION-BMR SCHEME 5,000,000 2,750,300 5,000,000
CREDIT SUBSIDIZATION-RED CHILLI 22,5000,000 - -
BANANA TISSUE CULTURE PROJECT 5,000,000 - 5,000,000
CONSULTATION AND TECHNICAL
15,000,000 - 15,000,000
ASSISTANCE
CREDIT SUBSIDIZATION FOR
DEVELOPMENT OF MODERN AGRI- - - 15,000,000
WAREHOUSES
Sub total 72,500,000 12,238,590 65,000,000

CAPITAL EXPENDITURES

OFFICE EQUIPMENT 2,000,000 16,425 2,000,000

FURNITURE AND FIXTURES 10,000,000 187,440 10,000,0000
COMPUTER ACCESSORIES 3,500,000 1,507,718 1,000,000
COMPUTER SOFTWARE/OFFICE
2,000,000 1,771,807 1,000,000
AUTOMATION
VEHICLE 2,000,000 2,339,270 6,000,000
LAND AND BUILDING - - -
Sub total 19,500,000 5,822,480 20,000,000

ADMINISTRATIVE EXPENDITURES
π

SALARY AND WAGES 20,000,000 11,948,954 20,000,000

1st Floor, Block – B, F.T.C Building, Shahrah-e-Faisal, Karachi. Tel: 021-99207512-4, Fax: 021-99207515, email: info@sedf.gos.pk, web:
www.sedf.gos.pk

pg. 8
GRATUITY 200,0000 620,950 2,000,000
EMPLOYEE OLD AGE BENEFIT
50,000 - 50,000
INSTITUTION (E.O.B.I) – REGISTRATION
BONUS AND SPECIAL PAY 50,0000 - 300,000
HONORARIUM 200,000 - 200,000
MEDICAL AND HOSPITALIZATION 2,000,000 608,159 2,000,000
INSURANCE 3,000,000 430,800 2,000,000
COMMUNICATION AND POSTAGE 300,000 - 300,000
UTILITIES 250,000 212,936 400,000
PRINTING AND PUBLICATION 1,200,000 810,985 1,500,000
OFFICE SUPPLIES 500,000 244,061 500,000
PETROL, OIL AND LUBRICANTS-P.O.L 1200,000 905,448 2,000,000
REPAIR AND MAINTAINANCE-VEHICLE 800,000 1,135,434 2,000,000
REPAIR AND MAINTAINANCE-FURNITURE
200,000 - 200,000
AND EQUIPMENT
REPAIR AND MAINTAINANCE-GENERAL 100,000 - 100,000
RENT, RATES AND TAXES 7,000,000 214,565 3,000,000
AUDIT FEE 400,000 216,000 400,000
LEGAL AND PROFFESIONAL 800,000 99,000 500,000
FEE AND SUBSCRIPTIONS 100,000 100,000
TRAVELLING BOARDING AND LODGING 2,500,000 462,633 2,500,000
MEETINGS AND CONFERENCE 2,500,000 45,096,039 30,000,0000
MARKETING AND ADVERTISEMENT 3,000,000 585,570 200,0000
RECRUITMENT AND TRAINING 1,000,000 1,000,000
BANK CHARGES 15,000 - 10,000
MISCELLANIOUS 100,000 131,704 300,000
Sub total 72,215,000 63,723,238 71,560,000

GRAND TOTAL 164,215,000 81,784,308 156,560,000

1st Floor, Block – B, F.T.C Building, Shahrah-e-Faisal, Karachi. Tel: 021-99207512-4, Fax: 021-99207515, email: info@sedf.gos.pk, web:
www.sedf.gos.pk

pg. 9
 The Managing Director SEDF stated that SEDF has kept rupees
15,000,000 for development of modern agri-warhouses based on receipt based
financing. Ms Naheed Memon appreciated the allocation of budget for the
development of modern agri-warehouses and suggested the CEO SEDF for
aggressively approaching the development of modern agri-warehouses across the
Sindh .The Managing Director SEDF seconded the point made by Chairperson
SBI/SEDF and stated the awareness seminar regarding development of agri-
warehouses is schedule to be held in next month with collaboration of USAID
where stakeholders from different forms of business will be invited which will set
a path for the development of agri-warehouses in different areas of Sindh.

He further stated that feasibility study regarding development of modern

agri-warehouses is already in pipeline, where Ms. Ernst and Young (E&Y) after
competitive bidding process was selected for the completion of above assignment.
This feasibility study will certainly beefed up the need for development of modern
agri-warehouses in different areas of Sindh depending on produce in particular
area.

Mr.Abul Rahim suriya raised question for the allocation of rupees 12

million for the financial year 2018-19 for office equipment and furniture and
fixtures in response Managing director SEDF briefed that In Case SEDF needs to
relocate its office to new building which might require the said amount. He further
stated that same amount was also been kept in financial year 2017-18 which was
not utilized in current Financial Year

Decision: The Board resolves to approve the Budget for the financial year
2018-19

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pg. 10
Agenda Item # 5. Approval for establishment of Provident and Gratuity
Fund for SEDF Permanent employees

The Managing Director SEDF stated that the Board in its 10th Board
Meeting held on 3rd February 2016 has approved Establishment of Provident and
Gratuity fund. In the light of above of Ms. Riaz Ahmed co Chartered Accountants
as the lowest bidder hired for formulating the Trust Dead for establishment of
provident and Gratuity fund. He further stated that the trust deed has been
reviewed by the Human Resource (H.R) Committee and now been placed for
approval by the Board

Mr. Abdul Rahim Suriya inquired regarding the eligibility for employees for
becoming the member of fund in response Managing Director SEDF Stated the
Provident and Gratuity Fund will be applicable to all the permanent employees of
SEDF and in order to get permanent employee status, an employee must complete
the probation period of six month.

Mr. Riaz Ahmed Gill directed to write the current designation of trustee who
will manage the affairs of fund. Mr. Kapil Kumar Assistant Company Secretary
ensured to include the designation of trustees in the Broad Minutes, which is as
follow:

S.No Name of Trustee Designation

1 Mr. Mehboob ul Haq Managing Director, SEDF
2 Sardar Yasir Hussain Internal Auditor, SEDF
3 Mr. Shaikh Adnan Ali Senior Officer Admin, SBI

Decision: The Board resolves to approve the establishment of Provident and

Gratuity Fund for SEDF Staff
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www.sedf.gos.pk

pg. 11
Agenda Item No 6: Approval of Performance Evaluation Report of Sardar
Yasir Hussain, Internal Auditor

The Managing Director SEDF briefed the Board Members that The Board
in its 16th meeting approved the promotion of Sardar Yasir Hussain, Internal
Auditor from Grade-IV to Grade-III and directed to present the performance
evaluation report of the incumbent during the next Board meeting

Decision: The Board has resolves to approve the Performance evaluation Report of
Sardar Yasir Hussain Internal Auditor

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www.sedf.gos.pk

pg. 12
Agenda Item No 7: SEDF Review and Strategy for Business Development for
the Next Year

The Managing Director has briefed the Board Members regarding the
unique and innovate projects of SEDF such as, Liquid Egg Pasteurization Unit –
Joint Venture of a Dutch company with local enterprise, Online Trading of Red
Chilli through Pakistan Mercantile Exchange’s (PMEX) Trading Platform, Silica
Extraction Unit from Rice Husk Ash, Electronic Beam Irradiation Plant and many
more. The CEO SEDF has also briefed the Board Members on the following SEDF
Projects for future

1. Subsidizing 5% refinance rate under Women Entrepreneurship program

of State Bank of Pakistan (SBP) in agribusiness sector

2. Providing assistance in developing modern agri-warehouses keeping in

view agriculture produce in particular area on the basis of receipt based
financing for agriculture crops

3. Awareness seminar with USAID regarding development of modern agri-

warehouses

4. Awareness seminar with Rice millers and Bankers regarding promotion

of BMR Scheme

5. Adopting value chain approach identifying gaps in value chain and

identity private sector partners to roll out such projects.

Ms. Naheen Memon inquired regarding the salient features of Women

entrepreneurship program in response Managing Director SEDF explained that
State Bank of Pakistan (SBP) introduced Women entrepreneurship program. In
order to serve the Womens’ of under privilege areas of Sindh SEDF as decided to

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pg. 13
Join hands with SBP thereby subsiding 5% refinance rate up to an upper limit of
rupees 1.5 million under the said scheme. Ms. Naheed Memon suggested the
Managing Director that Sindh Government should posses the ownership of this
program and directed the board members to identify the risk free business where
women can invest the loan amount of rupees 1.5 million under the said scheme.

Ms. Naheed Memon has also informed the Board Members that she has
decided to bring back the Livestock Dairy Fishers and Agriculture (LDFA) event in
Karachi due to Pak China Economic Corridor (CPEC) as it will provide much
needed base for Pakistan to kick start its economic growth.

1st Floor, Block – B, F.T.C Building, Shahrah-e-Faisal, Karachi. Tel: 021-99207512-4, Fax: 021-99207515, email: info@sedf.gos.pk, web:
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pg. 14