CODE OF ETHICS & Business Conduct

Reliance Cotton Spinning Mills Limited (Reliance Cotton) conducts its operations with honesty, integrity, openness and fair play, strong commitment to high standards of ethical, moral and lawfully. These are among the most important traditions of the company and critical to meet our commitment to our shareholders, customers, suppliers and employees. Ethical behavior is an individual responsibility. Behavior reflecting high ethical standards is expected of all executives and employees regardless of their position or location.

Our businesses and customs vary, and each individual who works for the Group is unique, however, we have certain standards and responsibilities to share wherever we do business. Similarly Reliance Cotton respect the legitimate interest of those with whom we have relationships.

The Code sets forth the Company’s policies and practices relating to legal compliance and business ethics. It reflects the Company’s core values and high ethical standards. Every director, officer and employee is responsible for reading and understanding this Code and for conducting business on behalf of the Company in accordance with the policies and practices herein.

CODE OF ETHICS

MANAGEMENT COMMITMENT FOR ETHICS

All the Company employees are accountable for their own actions as well as the conduct of employees who are within their span of control. The Company employees are responsible for seeing that the Code and other Company policies, including applicable laws are followed.
They must:

MANAGERIAL RESPONSIBILITIES

EMPLOYEE COMMITMENT TO ETHICS

The Code sets forth the Company’s policies and practices relating to legal compliance and business ethics. It reflects the Company’s core values and high ethical standards. Every director, officer and employee is responsible for reading and understanding this Code and for conducting business on behalf of the Company in accordance with the policies and practices herein.

OBEYING THE COMPANY CODE, POLICIES AND OTHER APPLICABLE LAWS

Reliance Cotton will respect the rule of law of Pakistan and other countries in which we operate. Obeying the law, both in letter and in spirit, is the foundation on which the Company’s ethical standards are built. In conducting the business ethics of the Company, the covered parties shall comply with the Code, other Company policies and all applicable laws and regulations in Pakistan and outside Pakistan’s jurisdiction in which the Company does business. Although all covered parties are expected to know the details of these laws, it is important to know enough about the applicable laws to determine when to seek advice from supervisors, managers or other appropriate personnel.

CONFIDENTIALITY

COFLICT OF INTEREST

RCSML employees will avoid situations where loyalty to the company may come into conflict with personal interest or loyalties. They must not seek gain for themselves or others through misuse of their positions.
If such a conflict does arise, it should be declared in writing to senior management who must make sure that the individual is insulated from any decision making or operation in the area of conflict of interest

PROTECTING COMPANY ASSETS

We are personally responsible and accountable for the proper expenditure of Company funds, including money spent as travel expenses or for customer entertainment. We are also responsible for the proper use of Company assets over which we have control including assets that customers or others have entrusted in our custody. Company assets must be used for proper purposes. This includes both during and after working hours and by third parties involved with the Company. Company assets should not be used for personal benefit, sold, loaned, given away or otherwise disposed off regardless of condition or value, without proper authorization.
We must not provide the Company’s files or documents of any kind to anyone without any prior, specific authorization from a supervisor. It is our obligation to protect Company’s Proprietary information which includes intellectual property such as trade secrets, patents, trademarks, and copyrights, as well as business, marketing and service plans, databases, records, salary information and any unpublished financial data and reports. Any act by Company’s employee that involves theft, fraud, embezzlement, or misappropriation of any property/asset is prohibited.

FAVORS AND BENEFITS

COMPETITIVE INFORMATION

Reliance Cotton believes in fair competition. Reliance Cotton must never use any illegal nor unethical methods to gather competitive information. Reliance Cotton and its employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations.

BUSINESS CONDUCT

CUSTOMERS

SHAREHOLDERS

Reliance Cotton will conduct its operations in accordance with principles of good corporate governance. Reliance Cotton will provide timely, regular and reliable information on its activities, structure, financial situation and performance to all the shareholders. Shareholders are informed about significant and material violations of corporate policies (including codes of conduct) and any adverse decisions by tribunals or courts.

EMPLOYEES

BUSINESS PARTNERS

ACCURACY OF BUSINESS RECORDS

WAGES, BENEFITS AND WORKING HOURS

We ensure that wages and social benefits are in accordance with laws in force or prevailing wage practice in the country. The working hours are followed in accordance with local standards at all the Plants and offices of the Company.

COMMUNITY INVOLVEMENT

Reliance Cotton strives to be a trusted corporate citizen and, as an integral part of society, to fulfill its responsibilities to the societies and communities in which it operates.

PUBLIC ACTIVITIES

Reliance Cotton is encouraged to promote and defend its legitimate business interests.
It will co-operate with government and other organizations, both directly and through bodies such as trade associations, in the development of proposed legislation and other regulations, which may affect legitimate business interests.

HEALTH, SAFETY AND ENVIRONMENT

Reliance Cotton is committed to making continuous improvements in the management of environmental impact and to the longer-term goal of developing a sustainable business. The Company is committed to ensuring the wellbeing of its workers, the people living and working in our communities near our facilities and the environment and will provide the human, physical and financial resources necessary to meet this commitment
It will work in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice.
Each employee is responsible for observing the safety and health rules and practices that apply to his or her job. Employees are also responsible for taking precautions necessary to protect themselves and their co-workers, including immediately reporting accidents, injuries, and unsafe practices or conditions. Appropriate and timely action will be taken to correct known unsafe conditions.

COMPLIANCE-MONITORING-REPORTING

Compliance with business principles is an essential element in business success. The Board of Directors of Reliance Cotton is responsible for ensuring that these principles are communicated to, and understood and observed by, all employees.
Day-to-day responsibility is delegated to the senior management. They are responsible for implementing these principles.
Assurance of compliance is given and monitored each year. Compliance with the Code is subject to review by the Board supported by Audit Committee or the Board.
Any breach of the Code must be reported in accordance with the procedures specified by the management.
The Board of Reliance Cotton expects employees to bring to their attention or to that of senior management, any breach or suspected breach of these principles.

CHILD LABOR