Transmission of Quarterly Report for the Period Ended June 30,2025

‌

‌COMPANY INFORMATION

EXECUTIVE DIRECTORS

Ishtiaq Ahmad - Chief Executive Officer Ghazanfar Baber Siddiqi

NON-EXECUTIVE DIRECTORS

Abdul Basit - Chairman Board of Directors Syed Maqbool Ali

Nida Jamil

Mehmood-ul-Hassan Asghar

INDEPENDENT DIRECTOR

Aziz-ul-Haque

COMPANY SECRETARY

Muhammad Hanif German

CHIEF FINANCIAL OFFICER

Muhammad Ilyas Abdul Sattar

AUDITORS

Feroze Sharif Tariq & Co. - Chartered Accountants

COST AUDITORS

UHY Hassan Naeem & Co.

TAX ADVISOR

Sharif & Company - Advocates

LEGAL ADVISOR

A.K. Brohi & Company Advocates

AUDIT COMMITTEE

Aziz-ul-Haque Syed Maqbool Ali Abdul Basit

HUMAN RESOURCE & REMUNERATION COMMITTEE

Aziz-ul-Haque Ghazanfar Baber Siddiqi Abdul Basit

BANKERS

National Bank of Pakistan Summit Bank Limited Habib Bank Limited

Standard Chartered Bank Pakistan Limited The Bank of Khyber Limited

REGISTERED OFFICE:

Dewan Centre, 3-A Lalazar, Beach Hotel Road, Karachi-74000, Pakistan.

SHARE REGISTRAR / TRANSFER AGENT

BMF Consultants Pakistan (Pvt.) Limited Annum Estate Building, Room No. 310 & 311, 3rd Floor, 49, Darul Aman Society.

Main Shahrah-e-Faisal, Adjacent Baloch Colony, Karachi, Pakistan.

FACTORY

Jillaniabad, Budho Talpur, Taluka: Mirpur Bathoro

District: Sujawal Sindh, Pakistan.

Chairman Member Member

Chairman Member Member

MCB Bank Limited Meezan Bank Limited The Bank of Punjab

Dubai Islamic Bank Pakistan Limited Bank Islami Pakistan Limited

CORPORATE OFFICE

Block-A, 2nd Floor Finance & Trade Centre

Shahrah-e-Faisal, Karachi, Pakistan.

WEBSITE

https://www.yousufdewan.com

3RD QUARTER REPORT

03



‌DIRECTORS' REPORT

IN THE NAME OF ALLAH; THE MOST GRACIOUS AND MERCIFUL

IF YE GIVE THANKS, I WILL GIVE YOU MORE (HOLY QURAN)

The Directors are pleased to present condensed unaudited interim financial information of the Company for the nine months ended June 30, 2025.

Industry Overview

The industrial sector plays a crucial role in Pakistan's economy, significantly to the GDP and employing a large workforce. Sugar sector is the 2nd largest agro based industry facing challenges related to efficiency, technological advancements, by-product utilization and improved farming practices.

Financial Results.

During the period under consideration, the financial results in brief summary is given as under: -

Operational Performance of the Company Sugar Segment

Sugar plant resumed its operations on 22nd January, 2025 after the lapse of 2023-24 nonoperational crushing season due to technical and over hauling issues. During the period under review, Company continued its sugarcane crushing operations for 24 days. We are confident that the operations for the coming season will be recommenced with considerably improved capacity utilization and better results.

Distillery Segment

Distillery unit produced 2,519 tons of alcohol during the period under review as compared to 6,438 tons of alcohol produced during the corresponding period of last period. The operating loss of distillery was Rs.225.898 million against Rs.98.861 million incomparable previous period. Loss was suffered due to under utilizations of capacity because of decrease demand and sale price in the Global Market, besides increase in rates of raw material, transportation and other costs. In order to get better results, the Company is adopting various cost cutting measures. Moreover, the power project is in the process of development for the more efficient supply of energy.

Chip Board Polypropylene Segment

Chip Board plant has produced 57,830 sheets during the period under review as against last period's 29,510 sheets. The operating loss of Rs.6.119 million was suffered as against that of Rs.2.583 million in the previous comparable period. Management is focused on producing value added products and "A" quality sheets which are well accepted in the market. The management is confident it will bring this segment out from losses in future.

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3RD QUARTER REPORT

‌Polypropylene unit is already in the state of non-production because of working capital constraints.

In conclusion, we bow, beg and pray to Almighty Allah, Rahman-o-Ar-Rahim, in the name of our beloved Prophet Muhammad (peace be upon him) for the continued showering of his blessings, guidance, strength, health, and prosperity to us, our company, country and nation; and also pray to Almighty Allah to bestow peace, harmony, brotherhood, and unity in true Islamic spirit to whole of the Muslim Ummah; Ameen; Summa Ameen.

LO-MY LORD IS INDEED HEARER OF PRAYER (HOLY QURAN)

By and under Authority of the Board of Directors

Ishtiaq Ahmad

Chief Executive Officer

Abdul Basit

Chairman Board of Directors

Place : Karachi Date : July 28, 2025

3RD QUARTER REPORT

05



‌CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION FOR THE NINE MONTHS ENDED JUNE 30, 2025

ASSETS

NON-CURRENT ASSETS

(Un-Audited) (Audited) Jun 30, 2025 Sep 30, 2024

Notes (Rupees in '000')

The annexed notes form an integral part of this condensed interim financial information

Ishtiaq Ahmad

Chief Executive Officer

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3RD QUARTER REPORT

Muhammad Ilyas Abdul Sattar

Chief Financial Officer

Abdul Basit

Chairman Board of Directors

‌CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED) FOR THE NINE MONTHS ENDED JUNE 30, 2025 Nine Months Ended Quarter Ended

Jun 30,

2025

Jun 30,

2024

Jun 30,

2025

Jun 30,

2024

.....................'(Rupees in '000')................................

Sales

Cost of Sales Gross (Loss)

Administrative and General Expenses

Distribution and Selling Costs Other Operating Income/(Loss)

(Loss) from Operations

Finance Cost

(Loss) before Tax

Levies

Taxation

(Loss) after Tax

(Loss) per Share - Basic

2,065,974

(2,365,906)

(299,932)

(64,437)

(96,448)

55,821

(404,996)

(54,171)

(459,167)

(21,632)

(480,799)

63,585

(417,214)

(4.56)

777,992

(1,020,460)

(242,468)

(20,211)

(30,128)

43,783

(249,024)

(25,243)

(274,267)

(9,387)

(283,654)

17,616

(266,038)

(2.91)

The annexed notes form an integral part of this condensed interim financial information

Ishtiaq Ahmad

Chief Executive Officer

Muhammad Ilyas Abdul Sattar

Chief Financial Officer

Abdul Basit

Chairman Board of Directors

3RD QUARTER REPORT

07



‌CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE NINE MONTHS ENDED JUNE 30, 2025 Nine Months Ended Quarter Ended

The annexed notes form an integral part of this condensed interim financial information

Ishtiaq Ahmad

Chief Executive Officer

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3RD QUARTER REPORT

Muhammad Ilyas Abdul Sattar

Chief Financial Officer

Abdul Basit

Chairman Board of Directors

‌CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED) FOR THE NINE MONTHS ENDED JUNE 30, 2025

Jun 30,

2025

Jun 30,

2024

Cash Flow from Operating Activities

(Loss) Before Taxation

Adjustment for Non-Cash and Other Items: Depreciation

Financial Charges

Changes in Operating Assets and Liabilities

(Increase) / Decrease in Current Assets

Stores and Spares Stock in Trade Trade Debts

Loans and Advances

Trade Deposits, Prepayments & Other Balances

Increase / (Decrease) in Current Liabilities

Trade and Other Payables

Taxes Paid

Financial Charges Paid

Net Cash Flows from Operating Activities

Cash Flow from Investing Activities

Fixed Capital Expenditure

Net Cash Out Flows from Investing Activities

Cash Flow from Financing Activities

Sponsors Loan

Net Cash Out Flows from Financing Activities

Net (Decrease) / Increase in Cash and Bank Balances Cash and Bank Balances at Beginning of the Period Cash and Bank Balances at the End of the Period

....(Rupees in '000')....

The annexed notes form an integral part of this condensed interim financial information

Ishtiaq Ahmad

Chief Executive Officer

Muhammad Ilyas Abdul Sattar

Chief Financial Officer

Abdul Basit

Chairman Board of Directors

3RD QUARTER REPORT

09

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) FOR THE NINE MONTHS ENDED JUNE 30, 2025

(Rupees in '000')

The annexed notes form an integral part of this condensed interim financial information

Ishtiaq Ahmad

Chief Executive Officer

10 3RD QUARTER REPORT

Muhammad Ilyas Abdul Sattar

Chief Financial Officer

Abdul Basit

Chairman Board of Directors

CONDENSED INTERIM SEGMENTWISE OPERATING RESULTS FOR THE NINE MONTHS ENDED JUNE 30, 2025

Gross Sales

(Rupees in '000')

Ishtiaq Ahmad

Chief Executive Officer

Muhammad Ilyas Abdul Sattar

Chief Financial Officer

Abdul Basit

Chairman Board of Directors

3RD QUARTER REPORT 11

‌CONDENSED INTERIM NOTES TO THE FINANCIAL INFORMATION (UN-AUDITED) FOR THE NINE MONTHS ENDED JUNE 30, 2025

1. LEGAL STATUS AND NATURE OF BUSINESS

   Dewan Sugar Mills Limited (the Company) was incorporated in Pakistan, as a public Limited company on June 27, 1982, under the Companies Act, 1913 (Now the Companies Act 2017 and its shares are listed in Pakistan Stock Exchange Guarantee Limited. The Principal activity of the Company is production and sale of white crystalline refined sugar, processing and trading of by-products, and other related activities and allied products. Further, the Company's Poly propylene unit is non operative since 2016.

   The geographical Location and address of the company's business units, including mill/plant are as under:

   The Company consist of four units: (1.) Sugar Unit. (2.) Distillery unit, (3.) Board and Penal unit and (4.) Poly propylene unit.

   The registered office of the company is situated at Dewan Centre, 3-A, Lalazar, Beach Hotel Road, Karachi-74000, Pakistan; while its all four units manufacturing facilities units are located at Jillaniabad, Budho Talpur, Mirpur Bathoro, Thatta, Sindh, Pakistan.

   1. GOING CONCERN ASSUMPTION

      The condensed interim financial information of the company for the period ended June 30,2025 incurred a net loss after taxation of Rs.714.844 million (June 30,2024 Rs.417.214 million) and as of that date company's negative reserve 6.444 billion (September 30, 2024 Rs.5.895) billion and its current liabilities exceeded its current assets by Rs.6.456 billion (September 30, 2024: Rs.5.947) billion. Further the company's short term borrowing facilities amounting Rs.192.196 million have been expired and not been renewed by the lenders. The company defaulted in repayment of its restructured long term loan due to liquidity crunch, hence as per clause 10.2 of the compromise agreement entire restructured liabilities along with markup eligible for waiver have become immediately repayable. These conditions along with other matters indicate the existence of material uncertainty which may cast significant doubt about company's ability to continue as going concern, therefore the company may be unable to realize its assets and discharge its liabilities in the normal course of business.

      The Condensed Interim Financial Information have been prepared on going concern assumption as the Company approached its lenders for further restructuring of its liabilities which is in process. Company is hopeful that such restructuring will be effective soon and will further stream line the funding requirements of the Company which will ultimately help the management to operate with optimum utilization of production capacity. As the conditions mentioned in the foregoing paragraph are temporary and would reverse therefore the preparation of Condensed Interim Financial Information using going concern assumption is justified.

2. BASIS OF PREPARATION

   Statement of compliance

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

   • International Accounting Standards (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.

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   3RD QUARTER REPORT
   
   
   
   
   

   ‌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.

3. BASIS OF PRESENTATION

   1. These condensed interim financial information are unaudited and are being submitted to the shareholders as required by the listing regulation of Pakistan Stock Exchange Limited and Section 237 of the Companies Act, 2017. This condensed interim financial information do not include all of the information required for full annual financial information and should be read in conjunction with the annual financial information for the year ended September 30, 2024, which have been prepared in accordance with approved accounting and reporting standards as applicable in Pakistan. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company's financial position and performance since the last annual financial information.

   2. The comparative statement of financial position presented in this condensed interim financial information have been extracted from the annual audited financial information of the Company for the year ended September 30, 2024, whereas the comparative condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of cash flows and condensed interim statement of changes in equity are extracted from the unaudited condensed interim financial information for the nine month ended June 30, 2024.

   3. Basis of Measurement

      The condensed interim financial information have primarily been prepared under the historical cost convention without any adjustments for the effect of inflation or current values, except for the fixed assets which are on revalued amount mentioned in note 6 to the condensed interim financial information, financial assets and liabilities which are carried at their fair values. Further, accrual basis of accounting is followed except for cash flow information.

4. MATERIALACCOUNTING POLICY INFORMATION

   This condensed interim financial information have been prepared using the same accounting policies which were applied in the preparation of the annual financial information of the Company for the year ended September 30, 2024.

   Change in accounting standards, interpretations and amendments to published approved accounting standards

   1. Standards, amendments and interpretations to accounting standards that are effective in the current 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 information.

   2. Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the Company

   There are certain standards, amendments to the accounting standards and interpretations that are mandatory for the Company's accounting periods beginning on or after October 1, 2024 but are considered not to be relevant or to have any significant effect on the Company's operations and are, therefore, not detailed in these condensed interim financial information.

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5. ‌ACCOUNTING ESTIMATES AND JUDGMENTS

   1. The preparation of this condensed interim financial information in conformity with approved accounting standards as applicable in Pakistan requires management to make estimates, assumptions and use judgments that affect the application of policies and reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revision to accounting estimates are recognized prospectively commencing from the period of revision.

   2. In preparing this condensed interim financial information, the significant judgments made by the management in applying the Company's accounting policies and the key source of estimation and uncertainty were the same as those that applied to the financial information as at and for the year ended September 30, 2024.

   3. The Company's financial risk management objectives and policies are consistent with those disclosed in the financial information as at and for the year ended September 30, 2024.

Un-Audited Audited

6

Fixed capital expenditure during the period amounted to Rs.0.671 Million (September 30, 2024:Rs.21.195 Million). Including capital work in progress.

7 INVESTMENT IN ASSOCIATED COMPANY

The Company held 13,650,000 shares including 650,000 bonus shares of Dewan Farooque Motors Ltd. Associate is an entity over the Company has significant influence but no control. The Company's investee company is considered to be its associate by virtue of common directorship and a member of Yousuf Dewan Companies. The Company's ownership interest of 9.84% in the associated company.

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3RD QUARTER REPORT

Un-Audited Audited

June 30, September 30,

2024 2024

7.1 Investment in Dewan Farooque Motors Limited

Note

(Rupees in '000')

The Sponsor loan had been measured at amortized cost in accordance with International

Accounting standard 39, Financial Instruments: Recognition and Measurement, and have been discounted using the weighted average interest rate of 11.18% per annum. These interest free loans are payable in Lump sum on September 30, 2027.

This represents unsecured interest free loan of sponsor director. This loan had arisen on account of settlement of liabilities of the bank, which were settled by sponsor director. The terms of repayment of loan finalized after restructuring made with the steering committee and as of that date payable in lumpsum on December 31, 2022. However due to financial crunch loan was not settled and further amortized till 30th September 2027 on interest rate of 21% per annum. The amount of loan had been measured at amortized cost in accordance with International Accounting Standard 39, Financial Instruments: Recognition and Measurement. Company repaid the loan on January 2025 and reversed amortization income accordingly.

9 LONG TERM FINANCE - SECURED

Syndicate Term Finance 2,348,128 2,348,128

Less Overdue installments 2,348,128 2,348,128

- -

3RD QUARTER REPORT 15

‌This amount represent outstanding balance of rescheduled settled amount as per compromising decree dated February 18, 2011 granted by Honorable High Court of Sindh at Karachi. As per terms 32 quarterly instalments of principal loan ranging from Rs.57.09 million to Rs. 143.858 million was payable in ten years with one year of grace period with no mark-up through out the repayment period. The repayments of loan had been started from March 30, 2012 and last payment was to be made on December 30, 2020. The Company had defaulted in repayment of the same loan and also not provided the mark up since default on the ground that the lenders will accept the loans restructuring proposal of the Company without markup.

Un-Audited Audited

June 30, September 30,

2024 2024

10 LONG TERM MARK UP PAYABLE

Mark-up payable on Term Finance Less Overdue Installments

Note

(Rupees in '000')

284,801

284,801

--

This amount represents mark up of Rs. 425.051 million payable to Syndicated (Summit Bank & others) in 4 quarterly installments. Company had provided Rs.284.80 million till September, 2018 and stopped providing further markup of Rs.140.251 million. Further the Company approached to its lenders for waiver of markup along with restructuring of loans due to unfavorable economic conditions of the Company. The management of the Company is hopeful, the request will be accepted in near future.

11.1 The Company discontinued its policy for staff retirement benefits plan for gratuity on March 31, 2007 and provision for all its outstanding liabilities had been made until March 31, 2007. This payable amount was to transfer to provident fund scheme, however the Board of Trustee has amended the said clause and now the Company opted to pay this liability to each employees at the time of their separation from the Company.

192,196

192,196

1. SHORT TERM RUNNING FINANCES - SECURED

   Short term running finances - Secured 12.1

   1. This amount represent running finance facility of Rs.192.196 million sanctioned by the lenders as per Court order/compromising decree. The facility is secured by the way of first charge over current assets of the Company with 20% margin. The mark-up @3 month KIBOR plus 0.75% per annum payable on quarterly basis. The facility had been expired and was not renewed by the banks. During the period Company has not provided mark up on the same.

2. CONTINGENCIES & COMMITMENTS

   There is no significant changes in the status of contingencies and commitments during the period as those reported in last published financial information.

3. FINANCE COST

   The company has not provided the markup on long term and short term borrowings from Banks for the period amounting to Rs.227.712 million on the contention of the Company as disclosed in note 9,10 and 12 to the Condensed Interim Financial Information. However had the provision been made the markup for the year would have been higher by Rs.2.415 billion and accrued markup and accumulated loss would have been increased by Rs.2.415 billion.

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4. ‌SEASONAL PRODUCTION

   Due to the seasonal availability of sugarcane, the manufacturing of sugar is carried out during the period of availability of sugarcane and costs incurred / accrued up to the reporting date have been accounted for. Accordingly, the cost incurred / accrued after the reporting date will be reported in the subsequent interim and annual financial information.

5. FINANCIAL RISK MANAGEMENTAND FAIR VALUE DISCLOSURES

   These condensed interim financial information do not include all financial risk management information and disclosures which are required in the annual financial information and should be read in conjunction with the Company's annual financial information for the year ended September 30, 2024. There have been no changes in any risk management policies since the year end. The carrying values of all financial and non-financial assets and liabilities measured at other than amortized cost in these condensed interim financial information approximate their fair values.

   June 30, June 30,

   2025 2024

6. TRANSACTION WITH RELATED PARTIES

   Sale Commission Purchases

   Sales

   Provident fund contribution Sponsor loan Repaid/Received

   Dewan Mushtaq Trade Ltd Relationship by Common Directorship

   (Rupees in '000')

   3,806

   2,331

   -2,803

   (71,834)

10,139

6,609

10,060

3,075

(87,814)

1. DATE OFAUTHORIZATION FOR ISSUE

   This Financial Information were authorized for issue on July 28, 2025 by the board of directors of the Company.

2. GENERAL

1. Figures have been rounded off to the nearest thousand rupees.

2. Corresponding figures have been rearranged and reclassified, wherever necessary for the purpose of comparison and better presentation. However, no significant reclassification has been made during the period to report.

Ishtiaq Ahmad

Chief Executive Officer

Muhammad Ilyas Abdul Sattar

Chief Financial Officer

Abdul Basit

Chairman Board of Directors

3RD QUARTER REPORT

17

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18 3RD QUARTER REPORT

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3RD QUARTER REPORT 19