KARACHI: According to the annual review report by the Chairman of Nagina Cotton Mills Limited (NCML), the Board of Directors has effectively managed the company's affairs, ensuring compliance with the Companies Act 2017 and the Listed Companies (Code of Corporate Governance) Regulations, 2019. The report highlights the board's active role in strategic planning, risk management, and internal controls during the financial year 2023-24.
The board's diligent involvement included overseeing the strategic planning process and enterprise risk management, which were crucial for aligning with the company's goals. Significant issues and related party transactions were consistently brought before the board or its committees, enhancing the corporate decision-making process. All related party transactions were approved by the board based on recommendations from the Audit Committee, with additional shareholder approval sought at the Annual General Meeting to ensure smooth business operations.
Moreover, the board reviewed and approved the director’s report, quarterly, and annual financial statements, ensuring all content met legal and regulatory requirements. The hiring, evaluation, and compensation processes were also managed by the board to foster a work environment focused on equality and opportunity.
According to information available from the Pakistan Stock Exchange (PSX), the board ensured timely information dissemination among its members, keeping them updated on developments between meetings. The board's powers were exercised according to the relevant laws and regulations, with a strong emphasis on compliance.
The effectiveness of the internal control system was regularly assessed through self-assessment mechanisms and internal audit activities, ensuring robust oversight. Documents related to board agendas and supporting materials were provided well in advance of meetings, facilitating thorough preparation and involvement, especially of non-executive and independent directors.
The annual evaluation of the board's performance confirmed that the directors played a pivotal role in not only achieving but surpassing the company's objectives. This success was attributed to the board's strategic guidance and the collaborative efforts of the management team and board members, navigating through a complex global economic environment and competitive market landscape.