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

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

HALF YEARLY 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 duly reviewed by the auditors for the period ended March 31, 2025.

Industry Overview

The industrial sector plays a crucial role in Pakistan's economy, significantly to the GDP and employing a large work force. It is the 2nd largest agro based industries 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 operation on 22nd January, 2025 after the lapse of 2023-24 crushing season halted for 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 2,509 tons of Alcohol during the period under review as compared to 6,691 tons of Alcohol produced during the corresponding period. The operating loss

of distillery was Rs.198.334 million as against the operating profit of Rs.55.200 million incomparable previous period. Major suffering came due to under utilizations of capacity because of Global Market Dynamics of ethanol demand and pricing besides increase in raw material, transportation and other cost of production. 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.

04

HALF YEARLY REPORT



Chip Board Polypropylene Segment

Chip Board plant has produced 39,660 sheets during the period under review as against last period 20,830 sheets. The operating loss of Rs.4.51 million was suffered as against that of Rs.3.71 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.

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

Auditor's Observation

The auditors have expressed adverse opinion in their report on going concern assumption, default in repayment of installments of restructured liabilities and related non-provisioning of mark-up as explained in their report.

The condensed interim financial information has been prepared on going concern assumption as the Company approached its lender for further restructuring of its liabilities which is in process. Company is hopeful that such restructuring will be effective soon and will streamline the funding requirements of the Company which will ultimately help the management to operate with optimum utilization of production capacity. Therefore, the preparation of condensed interim financial information using going concern assumption is justified as fully explained in note 1.1 to the condensed interim financial information.

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 : May 30, 2025

HALF YEARLY REPORT

05







REVIEW REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS INDEPENDENT AUDITORS' REVIEW REPORT TO THE MEMBERS OF DEWAN SUGAR MILLS LIMITED Introduction

We have reviewed the accompanying Condensed interim Statement of financial Position of Dewan Sugar Mills Limited ("the company") as at March 31, 2025 and the related Condensed interim statement of profit or loss, Condensed interim statement comprehensive income, Condensed interim statement of changes in equity and Condensed interim statement of cash flow and the notes to the financial statement for the half year then ended (hereinafter referred to as the "interim financial statements"). Management is responsible for the preparation and Presentation of this Condensed interim financial statements in accordance with approved accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these interim financial statements based on our review.

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

Scope of Review

We conducted our review in accordance with the 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.

Basis of Adverse Conclusion

1. The Condensed interim financial Statements which indicates in note 1.1 the company incurred a loss after taxation of Rs. 590.955 (March 31, 2024: Rs. 151.177) million as on March 31, 2025 and as of that date it has negative revenue reserves amounting to Rs. Rs. 6.379 (September 30, 2024: Rs. 5.895) billion which resulted in negative equity of Rs. 1.283 billion (September 30, 2024: 661.441 million) and its current liabilities exceeded its current assets by Rs. 6.418 (September 30, 2024: Rs. 5.946) billion without provided markup of Restructured and other liabilities and as refer in below para (b) and

   (c). The Company has defaulted in repayments of installments of earlier restructured long term liabilities as disclosed in para (b) below and short term finance facilities had expired and not renewed by the banks amounting to Rs. 192.196 million, and therefore the company not utilizing its full capacity the Company Closed down the production facility of Polypropylene unit since long. Further, the company not utilizing its full capacity due to working capital constraints. Furthermore, the financial institution

   06

   HALF YEARLY REPORT
   
   
   
   
   
   
   
   
   
   
   

   filled suit for execution of decree and winding up petition. Accordingly, the financial institutions have not been provided bank confirmations as at reporting date this shows restructuring proposal of the company had not been accepted by the lenders till the reporting date. These conditions lead us to believe that the going concern assumption used in preparation of these condensed interim financial statements is inappropriate; consequently the assets and liabilities should have been stated at their realizable and settlement amounts respectively.

2. The company defaulted in repayment of installments of restructured liabilities, hence as

   per clause 10.2 of the Compromise Agreement of the company, the entire outstanding restructured liabilities of Rs. 2.633 billion (note 9 to the financial Statements) along with

   markup of (Rs. 896.875) million (Rs. 471.824 million eligible for waiver mark up and Rs.

   425.051 million outstanding mark up note 10 to the condensed interim financial Statements) become immediately payable, therefore provision for markup should be made in these condensed interim financial statements.

3. In addition to above , since the proposal, has not been accepted so far and the lenders, instead of accepting the restructuring proposal, have preferred to filed suit against the company, therefore the company should made the provision of mark up in the condensed interim financial statements. Further during the year the company not made mark up Provision for the restructured long term and short term liabilities amounting to Rs. 151.797 (September 30, 2024 : Rs. 410.777) million in the financial Statements as disclosed in note 14 to the condensed interim financial Statements. Had the provisions for the mark up, as discussed in preceding paragraph (b), been made in these condensed interim financial statements, the loss after taxation would have been higher by Rs. 2.339 billion and markup payable would have been higher and shareholders' equity would have been lower by Rs. 2.339 billion.

Adverse Conclusion

Our review indicates that, because of the significance of the matter discussed in paragraph

(a) to (c) above, these accompanying interim financial Statements as of and for the half year ended March 31, 2025 is not prepared, in all material respects, in accordance with approved accounting and reporting standards as applicable in Pakistan for interim financial Reporting.

The engagement partner on the review resulting in this independent auditor's review report is Mohammad Ghalib.

Place : Karachi

UDIN: RR202510161tT5dy7Fn2

Date : May 30, 2025

CHARTERED ACCOUNTANTS

Audit Engagement Partner: Mohammad Ghalib

HALF YEARLY REPORT

07



CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION FOR THE HALF YEAR ENDED MARCH 31, 2025

ASSETS

NON-CURRENT ASSETS

(Un-Audited) (Audited)

Mar.31, 2025 Sep.30, 2024

Notes (Rupees in '000')

Property, Plant and Equipment 6

CURRENT ASSETS

Stores, Spares and Loose Tools Stock-in-Trade

Trade Debts - Unsecured, Considered Good

Loans and Advances and Other Receivable - Unsecured, Considered Good Trade Deposits, Short-Term Prepayments and Current Balances with Statutory Authorities

Income Tax Refunds and Advances

Short Term Investment - Related Party 7

Cash and Bank Balances

EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES

Authorized Capital

130,000,000 (2024: 130,000,000) Ordinary

Shares of Rs. 10/- each

Issued, Subscribed and Paid-up Capital Reserves and Surplus

Revaluation Surplus on Property Plant and Equipment

NON-CURRENT LIABILITIES

Sponsors Loan - Unsecured 8

Long Term Finance (Secured) 9

Long Term Interest Payable 10

Deferred Liabilities 11

CURRENT LIABILITIES

Trade and Other Payables - Unsecured

Interest, Profit, Mark-up Accrued on Loans and Other Payables

Short Term Finances - Secured 12

Unclaimed Dividends

Current Portion of Non-Current Liabilities 9 to10

Provision for Taxation

CONTINGENCIES & COMMITMENTS 13

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

7,430,796

139,965

709,818

42,562

489,478

11,944

157,938

-28,128

1,579,833

9,010,629

1,300,000

915,120

(5,895,009)

4,318,448 (661,441)

461,075

-

-1,685,201

4,503,288

12,010

192,196

770

2,632,929

184,601

7,525,794

-

9,010,629

Ishtiaq Ahmad

Chief Executive Officer

08

HALF YEARLY 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 HALF YEAR ENDED MARCH 31, 2025 Half Year Ended Quarter Ended

Mar.31, 2025

Mar.31, 2024

Mar.31, 2025

Mar.31, 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 Income Tax

Levies

Taxation

(Loss) for the period (after Income Tax) (Loss) per Share - Basic

1,287,982

(1,345,444)

(57,462)

(44,226)

(66,320)

12,037

(155,970)

(28,930)

(184,901)

(12,246)

(197,147)

45,970

(151,177)

(1.65)

529,930

(620,721)

(90,791)

(20,446)

(31,764)

16,387

(126,614)

(14,868)

(141,482)

(4,515)

(145,997)

27,110

(118,888)

(1.30)

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

HALF YEARLY REPORT

09



CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE HALF YEAR ENDED MARCH 31, 2025 Half Year Ended Quarter Ended

Mar.31, 2025

Mar.31, 2024

Mar.31, 2025

Mar.31, 2024

(Rupees in '000')

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

Ishtiaq Ahmad

Chief Executive Officer

10

HALF YEARLY REPORT

Muhammad Ilyas Abdul Sattar

Chief Financial Officer

Abdul Basit

Chairman Board of Directors

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED) FOR THE HALF YEAR ENDED MARCH 31, 2025

Mar.31, 2025

Mar.31, 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 Increase (Decrease) 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

HALF YEARLY REPORT

11



CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) FOR THE HALF YEAR ENDED MARCH 31, 2025

(Rupees in '000')

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

Ishtiaq Ahmad

Chief Executive Officer

12

HALF YEARLY REPORT

Muhammad Ilyas Abdul Sattar

Chief Financial Officer

Abdul Basit

Chairman Board of Directors

CONDENSED INTERIM SEGMENTWISE OPERATING RESULTS (UN-AUDITED) FOR THE HALF YEAR ENDED MARCH 31, 2025

(Rupees in '000')

Ishtiaq Ahmad

Chief Executive Officer

Muhammad Ilyas Abdul Sattar

Chief Financial Officer

Abdul Basit

Chairman Board of Directors

HALF YEARLY REPORT 13

NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED) FOR THE HALF YEAR ENDED MARCH 31, 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 still 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 namely

   1. sugar Unit. 2. Distillery unit, 3. Board and Penal unit and 4. Poly propylene unit (non operated since 2016)

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

   1. GOING CONCERN ASSUMPTION

      The condensed financial interim information of the company for the half year ended March 31,2025 incurred a net loss after taxation of Rs.590,955 million (March 31,2024 151,177 million) and as of that date company's negative reserves of Rs.6.379 billion (September 30, 2024 Rs. 5.895) billion and its current liabilities exceeded its current assets by Rs.6.418 billion (September 30, 2024: Rs. 5.945) 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 going concern assumption used in preparation of these financial statements is largely depended on the acceptance of restructuring proposal by the lenders. Negociation is under process and finalized in near future.

2. BASIS OF PREPARATION

   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 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.

   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.

   14

   HALF YEARLY REPORT
   
   
   
   
   

3. BASIS OF PRESENTATION

   1. These condensed interim financial statements are unaudited but subject to limited scope review by auditors 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. These condensed interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the annual financial statements 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 Compnay's financial position and performance since the last annual financial statements.

   2. The comparative statement of financial position presented in theses condensed interim financial statements have been extracted from the annual audited financial statements of the Company for the year ended September 30, 2024, whereas the comparative condensed interim profit or loss account , condensed interim statement of comprehensive income, condensed interim cash flows and condensed statement of changes in equity are extracted from the unaudited condensed inetrim financial statement for the half year ended March 31, 2024

   3. Basis of Measurement

      The financial statements have primarily been prepared under the historical cost convention without any adjustments for the effect of inflation or current values, except for the major class of fixed assets which are on revalued amount in note 6 to the financial statements, 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 POLICIES

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

   1. Application of new and revised International Financial Reporting Standards

      1. Standards, amendments to standards and interpretations becoming effective during the period

         There are certain new standards, amendments to existing standards and new interpretations on approved accounting standards that became effective during the period and are mandatory for accounting periods of the Company beginning on or after October 01, 2024 but are considered not to be relevant or not to have any material effect on the Company's operations and are, therefore, not disclosed in these condensed interim financial statements.

      2. Standards, amendments to standards and interpretations becoming effective in future periods

         There are certain new standards, amendments to standards and interpretations that will became effective in future accounting periods but are considered not to be relevant or not to have any material effect on the Company's operations and are, therefore, not disclosed in these condensed interim financial statements.

         HALF YEARLY REPORT

         15
         
         
         
         
         

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 statements 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 statements as at and for the year ended September 30, 2024.

      Un-Audited Audited

      March 31,

      2025

      September 30,

      2024

6. PROPERTY, PLANT AND EQUIPMENTS

   Note (Rupees in '000')

   Operating Property , Plant & Equipment	6.1	7,102,301	7,321,668
   Capital work-in-progress	6.2	109,128	109,128
   		7,211,429	7,430,796
   6.1 Written Down Value as on October 1, 2024		7,321,668	5,855,861
   Addition during the period		671	68,282
   Impairment in Plant & Machinery Polypropylene		-	(14,756)
   Surplus on revaluation of Fixed Assets		-	1,774,114
   		7,322,339	7,683,501
   Depreciation for the period		(220,038)	(361,833)
   Written Down Value as on March 31, 2025		7,102,301	7,321,668
   6.2 Capital work-in-progress		109,128	156,215
   Addition during the period		-	3,573
   Transferred to Fixed Assets		-	(50,660)
   		109,128	109,128

   1. Fixed capital expenditure during the period amounted to Rs.0.671 Million (September 30, 2024:Rs.71.855 Million). Including capital work in progress

   2. The company has not completed the Power house due to Company faces financial difficulties to Complete the same the management of the Company quiet hopeful to complete in near future for the benefit of the Company.

7. INVESTMENT IN ASSOCIATED COMPANY

The Company held 13,650,000 shares including 650,000 bonus shares of Dewan Farooque Motors Ltd., Associate is entity over which Company has significant influence but not control. Company's investee Company to be considered it's associate by vertue of common Directorship/Sponsorship, member of Yousuf Dewan Companies and ownership interest of 9.84% in investee Company.

16

HALF YEARLY REPORT

Un-Audited Audited

March 31, September 30,

2025 2024

7.1 Investment in Dewan Farooque Motors Limited Note

(Rupees in '000')

The Sponsors 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 ranging 11.18% per annum. These interest free loans are payable in lum sum on September 30, 2027.

8.2 Sponsor Loan

8.2.1 This represents unsecured interest free loan payable to sponsor director. This

liability 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 settlement made with the steering committee and as of that date payable in lump sum on December 31, 2022. However due to financial crunch loan Period has been Extended by mutual consent of the Parties to repay in lump sump on 30th September 2027 on interest rate of 21% per annum. Therefore the amount of loan had been measured at amortized cost in accordance with International Accounting Standard 39, Financial Instruments: Recognition and Measurement. The company has repaid the loan during the Period in January 2025 and reversed amortization income accordingly.

HALF YEARLY REPORT 17

Un-Audited Audited

March 31,

2025

September 30,

2024

9 LONG TERM FINANCE - SECURED

Note (Rupees in '000')

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 installments of principal loan ranging from Rs.57.09 million to Rs. 143.858 million will be payable in ten years with one year 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 has defaulted in repayment of the same loan and not Provided the Mark up since defaulted by the Company.

This amount represents token mark up of Rs. 425.051 payable to Syndicated (Summit Bank & Other) in 4 equal quarterly installments (33 to 36) million. Company had provided Rs.284.80 million till September, 2018 and stopped providing further markup and approaching to lender for waiver due to current worst situation of industries of the Country specially Sind province. We are hopeful our this request will be oblige.

1. DEFERRED LIABLITIES

   Deferred Tax Liability for Staff Gratuity (Provision)	11.1	5,349	5,349
   Deferred Income Tax Liability		1,624,041	1,679,852
   		1,629,390	1,685,201

   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.

      12.1	192,196	192,196
      	192,196	192,196

2. SHORT TERM RUNNING FINANCES - SECURED

   Short term running finances - Secured

   1. This amount represent RF 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 of this facility is 3 month KIBOR plus 0.75% per annum payable quarterly basis. The facility had expired and not renewed by the banks. During the period Company has not provided the mark up on the same.

      18 HALF YEARLY REPORT

      
      
      

3. CONTINGENCIES & COMMITMENTS

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

4. FINANCE COST

   The company has not provided the markup on long term and short term borrowings from Banks for the period amounting to Rs.151.797 million on the contention of the Company as

   disclosed in note 9,10 and 12 to the financial statements. However had the provision been made in the financial statements markup for the year would have been higher by Rs.2.339 billion and accrued markup and accumulated loss would have been increased by Rs.2.339 billion.

5. SEASONAL PRODUCTION

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

6. FINANCIAL RISK MANAGEMENTAND FAIR VALUE DISCLOSURES

   These condensed interim financial statements do not include all financial risk management information and disclosures which are required in the annual financial statements and should be read in conjunction with the Company's annual financial statements 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 approximate their fair values.

   March 31, March 31,

   2025 2024

7. TRANSACTION WITH RELATED PARTIES

   (Rupees in '000')

   Sale Commission	3,757	5,210
   Purchases	2,331	7,800
   Sales	-	3,315
   Provident fund contribution	2,127	2,004
   Payments of Sponsor loan	(71,834)	-

   Dewan Mushtaq Trade Limited Relationship by Common Director Ship

8. DATE OFAUTHORIZATION FOR ISSUE

   These Financial Statements were authorized for issue on May 30, 2025 by the board of directors of the Company.

9. GENERAL

   Figures have been rounded off to the nearest thousand rupees. Comparative rearranged, reclassified and restated wherever necessary as per requirement.

   
   
   

   Ishtiaq Ahmad

   Chief Executive Officer

   Muhammad Ilyas Abdul Sattar

   Chief Financial Officer

   Abdul Basit

   Chairman Board of Directors

   HALF YEARLY REPORT

   19
   
   
   
   
   

   A YOUSUF DEWAN COMPANY

   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   

   ;^.›-i›'si°3.«yx

   
   
   

   30

10. HALF YEARLY REPORT