Transmission of Quarterly Report for the Period Ended 31st March 2025

Towards Resilient Growth

QUARTERLY REPORT 2025

BABA FARID

CCompany OInformation

NTENTS02

Vision and Mission Statements 03

Directors' Review 04

Independent Auditors' Review Report 07

Condensed Interim Statement of Financial Position 08

Condensed Interim Statement of Profit or Loss 10

Condensed Interim Statement of Comprehensive Income 11

Condensed Interim Statement of Changes in Equity 12

Condensed Interim Statement of Cash Flows 13

Selected Notes to the Condensed Interim Financial Information 14

COMPANY INFORMATION

BOARD OF DIRECTORS

Mrs. Qaiser Shamim Khan Chairperson Mr. Muhammad Shamim Khan Chife Executive Mr. Adnan Ahmed Khan Director

Mr. Nauman Ahmed Khan Director

Mrs. Sarah Hajra Khan Director

Mrs. Farah Khan Director

Mr. Farid ud Din Ahmed Independent Director Mr. Malik Manzoor Hussain Humayoon Independent Director Mr. Anwar Ahmad Khan 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

Habib Bank Limited 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

BANKERS

The Bank of Punjab

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: https://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

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.

DIRECTORS' REVIEW

The Board of Directors of Baba Farid Sugar Mills Limited is pleased to present the unaudited financial statements for the half year ended March 31, 2025.

ECONOMIC & INDUSTRY OVERVIEW

Pakistan's economy has been navigating difficulties, characterized by persistent inflation and economic and political uncertainty, including unpredictable government policies and volatility in the local and international sugar markets.

Export restrictions and pricing controls have further added to the complexities of managing margins. Despite these challenges, the Company is committed to cost rationalization and sustainable growth.

The sugarcane crushing season commenced on schedule and continued smoothly. Operational improvement at the mill led to better sugar recoveries and better extraction. Management's efforts in ensuring timely procurement and improved logistical coordination also contributed to steady production levels.

The crushing season 2024-25 started on November 20, 2024 and continued till March 09, 2025. The Punjab government had not notified the support price for the current crushing season.

PERFORMANCE OF THE COMPANY

The Company was able to crush 569,620.090 M. Tons sugarcane and produced 54,991.500 M. Tons of white refined sugar at an average recovery of 9.653% during the Period ended 31 March 2025 as compared to 31 March 2024, sugarcane crushing of 524,174.100 M. ton and the production of 52,798.400 M. Tons white refined sugar at an average recovery of 10.068%.

Net sales were recorded at Rs. 4,173.556 million during the period under review as compared to Rs. 1,681.209 million during the corresponding period of last year.

The Company achieved pretax profit of Rs. 108.069. million during the current six months as compared to pretax loss of Rs. 169.008 million in the corresponding period of last year. The main factors of this profit are range bound sugarcane price, better sugar sales rate, lowering interest cost and timely export of sugar.

FUTURE OUTLOOK

The Company remains cautiously optimistic for the remainder of the financial year. While macroeconomic conditions remain uncertain, the management is committed to maintaining financial discipline, enhancing operational efficiencies, and exploring diversification opportunities to mitigate market risks. The Company also continues to have close look on challenges related to cost escalation, tax burden and market volatility.

Looking ahead, the company remains committed to navigating the evolving challenges of the sugar industry through operational excellence, financial discipline, and strategic foresight.

ADEQUACY OF INTERNAL CONTROLS

The Directors are aware of their responsibility with respect to internal financial controls. Through discussions with management and Auditors (both internal and external), they confirm that adequate controls have been implemented by the Company.

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

Adnan Ahmad Khan Muhammad Shamim Khan

Director Chief Executive Officer

Lahore: May 22, 2025

INDEPENDENT AUDITORS' REVIEW REPORT

TO THE MEMBERS OF THE BABA FARID SUGAR MILLS LIMITED

REPORT ON REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS

INTRODUCTION

We have reviewed the accompanying condensed interim statement of financial position of Baba Farid Sugar Mills Limited (the "Company") as at March 31, 2025 and the related condensed interim statement of profit or loss, the condensed interim statement of comprehensive income, the condensed interim statement of changes in equity and the condensed interim statement of cash flows, and notes to the condensed interim financial statements for the six-month period then ended (here-in-after referred to as the "interim financial statements"). Management is responsible for the preparation and presentation of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review.

SCOPE OF REVIEW

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

CONCLUSION

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements is not prepared, in all material respects, in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting.

OTHER MATTER

The figures for the quarters ended March 31, 2025 and March 31, 2024 in the condensed interim statement of profit or loss and the condensed interim statement of comprehensive income have not been reviewed and we do not express a conclusion on them as we are required to review only the cumulative figures for the half year ended March 31, 2025.

The engagement partner on the review resulting in this independent auditors' review report is Sajjad

Hussain Gill.

BDO EBRAHIM & CO.

CHARTERED ACCOUNTANTS

Lahore: May 27, 2025

UDIN: RR202510087vPK6LA5rJ

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2025 (UN-AUDITED)

CHIEF FINANCIAL OFFICER

CHIEF EXECUTIVE OFFICER DIRECTOR

EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES

Note

(Audited) 30 September

2024 ees) ..........

Authorized share capital 14.1

Issued, subscribed and paid up share capital 14.2

Reserves

Revenue reserves - accumulated losses Directors' loans

Surplus on revaluation of fixed assets

NON CURRENT LIABILITIES

Long term loan 15

Long term diminishing musharaka 16

Lease liabilities 17

Deferred liabilities

CURRENT LIABILITIES

Trade and other payables 18

Contract liabilities 19

Unclaimed dividend

Due to Pattoki Sugar Mills Limited

Short term borrowing 20

Mark-up accrued

Current portion of long term liabilities

TOTAL EQUITY AND LIABILITIES

CONTINGENCIES AND COMMITMENTS 21

700,000,000

94,500,000

(3,024,992,840)

3,002,700,000

2,517,273,104

2,589,480,264

381,447,970

3,248,033,494

6,218,961,728

The annexed notes from 1 to 33 form an integral part of these condensed interim financial statements.

CHIEF FINANCIAL OFFICER

CHIEF EXECUTIVE OFFICER DIRECTOR

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS

FOR THE HALF YEAR ENDED 31 MARCH 2025 (UN-AUDITED)

Note

Revenue from contracts with customers 22 Cost of sales 23

Gross profit / (loss)

Selling and distribution expenses General and administrative expenses Other operating expense

Other operating income 24

Operating profit / (loss)

Financial charges

(Profit / (loss) before levy Levy

Profit / (loss) before income tax Income tax

Profit / (loss) for the period

Earning /(loss) per share - basic and

diluted (Rupees) 25

ed 31 March

2024

. (Rup

1,681,208,826

(1,504,554,469)

176,654,357

(40,784,961)

135,869,396

(304,877,732)

(169,008,336)

(21,336,618)

(190,344,954)

-(190,344,954)

(20.14)

ed 31 March

2024

.........

443,079,206

(535,271,860)

(92,192,654)

(328,654)

(92,521,308)

(250,361,283)

(342,882,591)

(5,593,654)

(348,476,245)

-(348,476,245)

(36.88)

The annexed notes from 1 to 33 form an integral part of these condensed interim financial statements.

CHIEF EXECUTIVE OFFICER DIRECTOR CHIEF FINANCIAL OFFICER

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF YEAR ENDED 31 MARCH 2025 (UN-AUDITED)

(Loss) / profit for the period

Other comprehensive income for the period Total comprehensive (loss) / income for

the period

The annexed notes from 1 to 33 form an integral part of these condensed interim financial statements.

CHIEF FINANCIAL OFFICER

CHIEF EXECUTIVE OFFICER DIRECTOR

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

FOR THE HALF YEAR ENDED 31 MARCH 2025 (UN-AUDITED)

The annexed notes from 1 to 33 form an integral part of these condensed interim financial statements.

CHIEF EXECUTIVE OFFICER DIRECTOR CHIEF FINANCIAL OFFICER

CONDENSED INTERIM STATEMENT OF CASH FLOWS

FOR THE HALF YEAR ENDED 31 MARCH 2025 (UN-AUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES

Profit / (loss) before levy and taxation

Adjustments for items not involving movement of funds: Depreciation

Gain on sales of stores Provision for gratuity Financial charges

Net cash flow before working capital changes

(Increase) / decrease in current assets

Stores and spares Stock in trade Trade debts

Loans and advances Short term prepayments Other receivable

Increase / (decrease) in current liabilities

Trade and other payables Contract liabilities

Cash used in operations Income taxes / levy paid

Employees retirement benefits paid Financial charges paid

Net cash used in operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Additions in operating fixed assets Additions in capital work in progress

(Decrease) / addition of short term investment Decrease in long term deposits

Net cash flows genereated from / (used in) investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Due to Pattoki Sugar Mills Limited - net Repayment of long term loan

Repayment of diminishing musharaka loan Repayment of lease liabilities

Short term borrowings - net

Net cash generated from financing activities Net increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period

Note

ded 31 March

2024 ees) ..........

(169,008,336)

55,730,266

(1,353,278)

5,112,807

304,877,732

195,359,191

(45,496,041)

(5,005,434,758)

(1,236,784)

68,751,638

3,723

4,872,286

(4,978,539,936)

(2,577,837)

50,704,973

48,127,136

(4,735,053,609)

(22,374,882)

(402,102)

(92,886,864)

(4,850,717,457)

(19,384,838)

(5,982,964)

(306,400)

-(25,674,202)

(503,001)

(96,662,268)

-(2,522,965)

5,078,770,197

4,979,081,963

102,690,304

116,810,909

219,501,213

CHIEF FINANCIAL OFFICER

The annexed notes from 1 to 33 form an integral part of these condensed interim financial statements.

CHIEF EXECUTIVE OFFICER DIRECTOR

SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION

FOR THE HALF YEAR ENDED 31 MARCH 2025 (UN-AUDITED)

1. LEGAL STATUS AND NATURE OF BUSINESS

   Baba Farid Sugar Mills Limited ("the Company") was incorporated in 1978 under the Companies Act 1913 (now Companies Act, 2017) as a Public Limited Company and its shares are quoted at Pakistan Stock Exchange. It is principally engaged in the manufacturing and sale of sugar including its by-products i.e. molasses and V.Filter cake.

2. GEOGRAPHICAL LOCATION AND ADDRESSES OF BUSINESS UNITS

   The registered office of the Company is situated at 2-D/1, Gulberg III, Lahore. The manufacturing facility of the Company is located at 5 KM Faisalabad Road, district Okara, Punjab.

3. BASIS OF PREPARATION

   1. Statement of compliance

      These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of :

      International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board ( IASB ) as notified under the Companies Act, 2017;

      Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered

      Accountants of Pakistan as notified under the Companies Act , 2017; and Provisions of and directives issued under the Companies Act, 2017.

      Where provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.

      1. These condensed interim financial statements are unaudited but subject to the limited scope review by the auditors and is being submitted to the shareholders as required under section 237 of the Companies Act, 2017 and the listing regulations of the Pakistan Stock Exchange.

      2. These condensed interim financial statements do not include all the information and disclosures required for full annual financial statements and should be read in conjunction with the annual financial statements of the Company as at and for the year ended September 30, 2024..

      3. In order to comply with the requirements of International Accounting Standard 34 - 'Interim Financial Reporting', corresponding figures in the condensed interim statement of financial position comprise of balances as per the audited annual financial statements of the Company for year ended September 30, 2024 and the corresponding figures in the condensed interim statement of profit or loss and the condensed interim comprehensive income, condensed interim statement of cash flows and condensed interim statement of changes in equity comprise of balances of comparable period as per the condensed interim financial statements of the Company for the half year ended March 31, 2024.

   2. Basis of measurement

      These condensed interim financial statements have been prepared under the historical cost convention, except for the recognition of certain staff retirement benefits at present value and certain operating fixed assets at revalued amounts.

      These condensed interim financial statements have been prepared following accrual basis of accounting except for cash flow statement.

   3. Functional and presentation currency

      These condensed interim financial statements are presented in Pak Rupees ('Rs.'), which is the functional and presentation currency for the Company.

4. MATERIAL ACCOUNTING POLICIES INFORMATION

   1. The accounting policies adopted and methods of computation followed in the preparation of these condensed interim financial statements are same as those for the preceding annual financial statements for the year ended September 30, 2024.

   2. Changes in accounting standards, interpretations and amendments to published accounting and reporting standards

      The following amendments to existing standards have been published that are applicable to

      the Company's financial statements.

      1. Amendments to published accounting and reporting standards which became effective

         during the period:

         There were certain amendments to accounting and reporting standards which became mandatory for the Company during the period. However, the amendments did not have any significant impact on the financial reporting of the Company and, therefore, have not been disclosed in these condensed interim financial statements.

         These amendments had no effect on the interim condensed financial statements of the Company as they relate to disclosures of accounting policies in the annual financial statements rather than interim financial statements. The amendments are expected to be applicable for the accounting policy disclosures in the annual financial statements of the Company.

      2. Amendments to published accounting and reporting standards that are not yet effective:

         There are certain amendments to the accounting and reporting standards that will be mandatory for the Company's annual accounting periods beginning on or after October 01, 2025. However, these amendments will not have any significant impact on the financial reporting of the Company and, therefore, have not been disclosed in these condensed interim financial statements.

5. SEASONALITY OF OPERATIONS

   Due to seasonal nature of sugar business, operating results of the Company are expected to fluctuate in the second half of the year. The sugarcane crushing season normally starts from November and lasts till March each year.

6. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENT

The preparation of these condensed interim financial statements in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying the Company's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

During preparation of these condensed interim financial statements, the significant judgments made by the management in applying the Company's accounting policies and the key sources of estimation and uncertainty were the same as those that applied in the preceding audited annual published financial statements of the Company for the year ended September 30, 2024.

1. STORES, SPARES AND LOOSE TOOLS

   Stores Spares

   Less: Provision for obsolete stores and spares Loose tools

2. STOCK IN TRADE

   Work-in process: Sugar Molasses

   Note

   30 September

   31 March 2025 . (Rup
   214,354,357 82,892,535
   297,246,892 (16,041,549) 1,928,571
   283,133,914
   9,597,536 1,171,445
   10,768,981
   4,586,061,297 145,515,858
   4,731,577,155
   4,742,346,136

   2024

   ees) ..........

   130,834,596

   90,440,299

221,274,895

(16,041,549)

2,570,476

207,803,822

Finished goods:

Sugar 11.1

Molasses

11,725,415

1,930,907,467

1,942,632,882

1. 1. Stock-in-trade up to a maximum amount of Rs. 4,657.935 million (2024: 1,851.301 million) are under hypothecation/pledge of commercial banks as security for short term borrowings. The molasses bagasse and V. filter cake is valued on net realizable value as a by product.

2. LOANS AND ADVANCES

   (Unsecured-considered good) Advances to employees

   Advance against supplies and services Considered good

   Advances to cane growers Advances for store purchases

3. CASH AND BANK BALANCES

   Cash in hand

   Balance at banks

   Note

   (Audited) 30 September

   (Un-Audited) 31 March 2025 . (Rup 3,654,014

   170,126,602 22,786,571

   192,913,173

   196,567,187

   594,097 153,179,195 472,671,204

   626,444,496

   2024

   ees) ..........

   4,051,004

   322,701,342

   120,175,788

442,877,130

446,928,134

527,414

Deposit accounts 13.1

Current accounts

1,143,874

82,117,910

83,789,198

Note

(Un-Audited) 31 March

2025

(Audited) 30 September

2024

16. LONG TERM DIMINISHING MUSHARAKA

Secured

Banking Companies

.......... (Rupees) ..........