Towards Resilient Growth
QUARTERLY REPORT 2025
CONDENSED INTERIM FINANCIAL INFORMATION For the 1st Quarter Ended 31 December 2024 (Un-audited)
BABA FARID
S U G A R M I L L S L I M I T E D
CONTENTS
Company Information | 02 |
Vision and Mission Statements | 03 |
Directors' Review | 04 |
Condensed Interim Statement of Financial Position | 06 |
Condensed Interim Statement of Profit or Loss | 08 |
Condensed Interim Statement of Comprehensive Income | 09 |
Condensed Interim Statement of Changes in Equity | 10 |
Condensed Interim Statement of Cash Flows | 11 |
Selected Notes to the Condensed Interim Financial Information | 12 |
1st Quarterly Report 2025 | 1 |
COMPANY
INFORMATION
BOARD OF DIRECTORS
Mrs. Qaiser Shamim Khan | Chairperson |
Mr. Adnan Ahmed Khan | Chief Executive |
Mr. Muhammad Shamim Khan | Executive Director |
Mr. Nauman Ahmed Khan | Non-Executive |
Mrs. Sarah Hajra Khan | Non-Executive |
Mr. Farid ud Din Ahmed | Independent Director |
Mr. Malik Manzoor Hussain Humayoon | Independent Director |
CHIEF FINANCIAL OFFICER | |
Mr. Wasif Mahmood | |
COMPANY SECRETARY | |
Mr. Muhammad Imran | |
AUDITORS | |
M/s BDO Ebrahim & Co.
Chartered Accountants
Office No. 4, 6th Floor, Askari Corporate Tower, 75/76 D-1, Main Boulevard, Gulberg-III, Lahore
Tel: 042-35875709-10
Fax: 042-35717351
Email: info@bdo.com.pk
MILLS
5 K.M. Faisalabad Road, Okara
Tel: 044-2714418-21
Fax: 044-2522978
BANKERS
Habib Bank Limited
The Bank of Punjab
Bank Al-Habib Limited
MCB Bank Limited
MCB Islamic Bank Limited
Meezan Bank Limited
Bank Alfalah Limited
Soneri Bank Limited
Allied Bank Limited
Askari Bank Limited
National Bank of Pakistan - Aitemad
Bank Islami Pakistan Limited
HUMAN RESOURCES & REMUNERATION COMMITTEE
Mr. Farid-ud-Din Ahmad | Chairman |
Mr. Adnan Ahmed Khan | Member |
Mr. Malik Manzoor Hussain Humayoon | Member |
AUDIT COMMITTEE | |
Mr. Farid-ud-Din Ahmad | Chairman |
Mrs. Sarah Hajra Khan | Member |
Mr. Malik Manzoor Hussain Humayoon | Member |
NOMINATION COMMITTEE | |
Mr. Malik Manzoor Hussain Humayoon | Chairman |
Mr. Farid-ud-Din Ahmad | Member |
RISK MANAGEMENT COMMITTEE | |
Mr. Malik Manzoor Hussain Humayoon | Chairman |
Mr. Farid-ud-Din Ahmad | Member |
SHARE REGISTRAR | |
M/s Corplink (Pvt) Limited Share Registrar, Wings Arcade,
1-K Commercial Model Town, Lahore. Tel: 042-35916714,
Fax: 042-35869037
Email: corplink786@gmail.com
REGISTERED OFFICE
2-D-1, Gulberg III, Lahore Tel: 042-35771066-71 Fax: 042-35756687 Email: info@bfsml.com Website: www.bfsml.com
LEGAL ADVISOR
M/s Ahmed & Pansota
Advocate and Legal Consutants
20 - Sir Gangaram Mansions
The Mall Lahore
Tel: 042-37313549, 37313520
Tel: 042-36672102
2
VISION & MISSION
STATEMENTS
OUR VISION
We shall build on our core competencies and achieve excellence in performance to become a leading producer of best quality sugar. In doing so we aim to meet or accede the expectations of all our stakeholders.
Our goal is not only to attain technological advancements in the field of sugar but also to inculcate the most efficient, ethical and time tested business practices in our management.
Furthermore, we shall strive to innovate the ways for the improvement and increase in per acre yield of sugarcane and introduce improved varieties of sugarcane having better yield characters, high sucrose contents, disease and drought resistant and better ratooning crop in the region. We shall introduce the mechanized sugarcane cultivation mehtod to the growers and to educate regarding latest developments of agriculture technology and free consultancy of professionals.
OUR MISSION
We aim to be a leading producer and supplier of quality sugar by adopting the most technological advancement. We intend to play a pivotal role in the economic development of Pakistan.
1st Quarterly Report 2025
3
DIRECTORS'
REVIEW
On behalf of the Board of Directors of BABA FARID SUGAR MILLS LIMITED, we are pleased to present the un audited Interim Financial Information of the Company for the Quarter ended December 31, 2024.
BUSINESS ENVIRONMENT REVIEW
Pakistan's economy has exhibited notable progress during the ¬first quarter with several key economic indicators, which reflecting positivity. Inflation, which had been a persistent challenge, continuing to decline and currently is in single digit. This decline prompted the State Bank of Pakistan (SBP) to ease its monetary policy.
INDUSTRY OVERVIEW
The 2024-25 sugarcane crushing season in Pakistan began on November 20, 2024. The sugarcane crop size during current season is expected to remain the same in the procurement area of the mills as in the last crushing season.. The Govt. Of Punjab had not notified the minimum support price (MSP) of sugarcane for the current crushing season. In deregulated price regime of sugarcane, it is expected that the sugarcane price will remain stable and this will also impact on the prices of sugar to remain stable during the year.
PERFORMANCE OF THE COMPANY
The Company was able to crush 219,386.965 M. Tons sugarcane and produced 20,442.000 M. Tons of white refined sugar at an average recovery of 9.659% during the period ended 31 December 2024 as compared to sugarcane crushing of 190,258.445 M. Tons and production of 18,219.500 M. Tons white refined sugar at an average recovery of 9.860% in quarter ended 31 December 2023.
Sales for the quarter increased by 19.61% over the same period of last year. Net sales were recorded at Rs. 1,480.927 million during the first quarter of current financial year as compared to Rs. 1,238.129 million during the corresponding period of last year.
The Company posted a pretax profit of Rs. 29.538 million during the quarter under review as compared to pretax profit of Rs. 173.874 million in the corresponding period of last year. The reduction in profitability is mainly because of increased finance cost, selling expenses and the decreased other income.
FUTURE OUTLOOK
Reduced interest rates and easing inflationary pressures are expected to continue. Growing investor confidence and stock market come back are indications of stability.
The Company continues to face challenges of increased sugarcane procurement prices despite the fact that for the current crushing season the Govt. had not fixed the minimum support price. It is primarily due to competition in the area among the mills.
The government must ensure the price of sugar is reflective of the price of sugarcane and other costs in line with prevailing inflation to create a conducive business environment for the industry as well as develop policies to promote agriculture by providing seeds to farmers those are better in yield and recovery.
Going forward the Company is expected to perform better. Though the impact of higher sugarcane prices, heavy borrowing leverage may subdue the profitability while sugar prices to determine the extent of profitability.
4
ACKNOWLEDGEMENT
The Directors wish to acknowledge the devotion of the employees and are appreciative of their dedication and commitment. They also extend heartfelt appreciation to the Company's suppliers, customers, and bankers for their continued confidence and support.
For and on behalf of the Board | |
Baba Farid Sugar Mills Limited | |
Mr. Muhammad Shamim Khan | Mrs. Sarah Hajra Khan |
Director | Director |
Lahore: 24th January 2025 |
1st Quarterly Report 2025
5
CONDENSED INTERIM STATEMENT
OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024 (UN-AUDITED)
(Un-Audited) | (Audited) | |||
31 December | 30 September | |||
Note | 2024 | 2024 | ||
ASSETS | .......... (Rupees) | |||
NON CURRENT ASSETS | ||||
Property, plant and equipment | ||||
Operating fixed assets | 6.1 | 3,414,084,901 | 3,427,348,441 | |
Right to use assets | 6.2 | 12,880,960 | 13,838,540 | |
Capital work in progress | 7 | 26,702,044 | 12,552,659 | |
3,453,667,905 | 3,453,739,640 | |||
Long term deposits | 630,184 | 630,184 | ||
3,454,298,089 | 3,454,369,824 |
CURRENT ASSETS | ||||
Stores, spares and loose tools | 308,665,638 | 207,803,822 | ||
Stock in trade | 8 | 3,201,514,880 | 1,942,632,882 | |
Trade debts | 200,938,738 | 3,362,467 | ||
Loans and advances | 241,790,736 | 446,928,134 | ||
Short term prepayments and deposits | 1,629,345 | 798,285 | ||
Other receivables | 22,876,025 | 5,722,999 | ||
Short term investment | 451,698,139 | 306,400 | ||
Taxation- Net | 83,868,271 | 73,247,717 | ||
Cash and bank balances | 175,977,546 | 83,789,198 | ||
4,688,959,318 | 2,764,591,904 | |||
TOTAL ASSETS | ||||
8,143,257,407 | 6,218,961,728 | |||
The annexed notes from 1 to 23 form an integral part of these condensed interim financial statements.
DIRECTOR | DIRECTOR | CHIEF FINANCIAL OFFICER |
6
(Un-Audited) | (Audited) | |||
31 December | 30 September | |||
Note | 2024 | 2024 | ||
EQUITY AND LIABILITIES | .......... (Rupees) | |||
SHARE CAPITAL AND RESERVES | ||||
Authorized share capital | 9.1 | 700,000,000 | 700,000,000 | |
Issued, subscribed and paid up capital | 9.2 | 94,500,000 | 94,500,000 | |
Reserves | ||||
Revenue reserves - accumulated losses | (3,000,026,293) | (3,024,992,840) | ||
Directors' loans | 10 | 3,002,700,000 | 3,002,700,000 | |
Surplus on revaluation of fixed assets | 11 | 2,504,718,633 | 2,517,273,104 | |
NON CURRENT LIABILITIES | 2,601,892,340 | 2,589,480,264 | ||
Lease liability | 10,049,753 | 6,621,610 | ||
Long term Loan (Banking Companies) | 12 | 124,546,950 | 139,544,750 | |
Long term diminishing musharka | 13 | 180,000,000 | 210,000,000 | |
Deferred liabilities | 24,966,352 | 25,281,610 | ||
CURRENT LIABILITIES | 339,563,055 | 381,447,970 | ||
Trade and other payables | 1,116,091,375 | 197,369,356 | ||
Contract liabilities | 427,474,075 | 241,776,008 | ||
Unclaimed dividend | 255,930 | 255,930 | ||
Due to Pattoki Sugar Mills Limited | 9,007,274 | 9,007,275 | ||
Short term borrowings | 14 | 3,003,488,629 | 2,059,050,720 | |
Mark-up accrued | 358,826,862 | 416,221,001 | ||
Current portion of long term liabilities | 286,657,867 | 324,353,204 | ||
CONTINGENCIES AND COMMITMENTS | 15 | 5,201,802,012 | 3,248,033,494 | |
8,143,257,407 | 6,218,961,728 | |||
TOTAL EQUITY AND LIABILITIES | ||||
The annexed notes from 1 to 23 form an integral part of these condensed interim financial statements.
DIRECTOR | DIRECTOR | CHIEF FINANCIAL OFFICER |
1st Quarterly Report 2025 | 7 |
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS
FOR THE QUARTER ENDED 31 DECEMBER 2024 (UN-AUDITED)
Note | |
Revenue from contracts with customers | 16 |
Cost of sales | 17 |
Gross Profit
Selling and distribution expenses
General and administrative expenses
Other Operating expesnse
Other income
Operating Profit
Financial charges
Profit before levy
Levy
(Un-Audited) | (Un-Audited) | |
31 December | 31 December | |
2024 | 2023 | |
.......... (Rupees) | ||
1,480,927,364 | 1,238,129,620 | |
(1,258,494,719) | (969,282,609) | |
222,432,645 | 268,847,011 | |
(19,959,807) | (7,127,646) | |
(68,385,620) | (53,164,779) | |
(833,449) | (11,415,844) | |
17,467,490 | 31,251,962 | |
(71,711,386) | (40,456,307) | |
150,721,259 | 228,390,704 | |
(121,182,870) | (54,516,449) | |
29,538,389 | 173,874,255 | |
(17,126,313) | (15,743,164) | |
Profit for the period
12,412,076
158,131,091
Earning / (Loss) per share - Basic and diluted (Rupees)
1.31
16.73
Appropriations have been reflected in the statement of changes in equity.
The annexed notes from 1 to 23 form an integral part of these condensed interim financial statements.
DIRECTOR | DIRECTOR | CHIEF FINANCIAL OFFICER |
8
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
FOR THE QUARTER ENDED 31 DECEMBER 2024 (UN-AUDITED)
Note
Profit for the period
Other comprehensive income
Items that will not be reclassified to the statement of profit or loss
Remeasurement of defined benefit liability
Related tax effect
Surplus on revaluation of operating fixed assets Related tax effect
Items that may be reclassified to the statement of profit or loss in subsequent periods
31 December | 31 December |
2024 | 2023 |
.......... (Rupees) | |
12,412,076 | 158,131,091 |
- | - | |
- | - | |
- | - | |
- | - | |
- | - | |
- | - |
-
-
Total comprehensive Income for the period
12,412,076
158,131,091
The annexed notes from 1 to 23 form an integral part of these condensed interim financial statements.
DIRECTOR | DIRECTOR | CHIEF FINANCIAL OFFICER |
1st Quarterly Report 2025 | 9 |
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