Mr. Raza Mustafa
Mr. Abdullah Ilyas
Mian Waqas Riaz
Mrs. Yasmin Riaz
Ms. Zainab Waqas
Mrs. Shahzadi Ilyas
Ms. Zakia Ilyas
Mian Abubakar Ijaz
Mian Waqas Riaz (Chairman)
Ms. Zakia Ilyas (Member)
Mrs. Yasmin Riaz (Member)
Email: cs@hwgc.com.pk
AuditorsM/s Saeed Ul Hassan & Co. Chartered Accountants
66-H Block Gulberg-III
Lahore
MillsMouza Jagmal, Tehsil Jattoi District. Muzaffargarh
BankersNational Bank of Pakistan Sindh Bank Limited
The Bank of Punjab
Chairman Director/Chief Executive Director
Director Director Director Director Director
Human Resource & Remuneration CommitteeMian Waqas Riaz (Chairman)
Mrs. Zainab Waqas (Member)
Ms. Zakia Ilyas (Membr)
Syed Mubashar Hussain Bukhari Tel: 042-35917313
Email: hwgc@hwgc.com.pk
Registrar
Hameed Majeed Associates (Pvt.) Limited
H.M. House, 7-Bank Square, Lahore
Registered Ofce06-F, Model Town, Lahore Tel: 042-35917321-23
Fax: 042-35917317
Website: https://www.hwgc.com.pk
Legal Advisor Muhammad Ahsan Khan (Advocate)DIRECTORS' REVIEW
FOR THE HALF YEAR ENDED 31 MARCH 2026
Dear Members
On behalf of the Board of Directors, it is my privilege to present you the Half Yearly condensed financial statements duly reviewed by the statutory auditors and their report is attached to the financial statements.
FINANCIAL RESULTS
The financial results of the company for the period under review are summarized as follows:
For the half year ended 31 March | ||
2026 | 2025 | |
(Rupees) | ||
Net Sales | - | - |
Gross Profit / (Loss) | (131,841,774) | (141,418,666) |
Net Profit / (Loss) before tax Net Profit / (Loss) after tax Basic Earning | (140,267,036) (113,636,582) (03.51) | (147,829,222) (112,872,514) (03.48) |
During the period under review, the Company posted gross loss of Rs. (131,841,774) as compared to last periods of Rs. (141,418,666). Further, there has been no production activity in the company over the past few years.
FUTURE OUTLOOK
The management of the company is hopeful of catching the coming crushing season and optimistic of doing the crushing at maximum level.
ACKNOWLEDGEMENT
The Board of Directors deeply express their appreciation and pay their gratitude to sugarcane growers, valuable customers, shareholders, banks and Government Departments for their continued support, trust, persistent co-operation and patronage which gives strength to pursue our corporate objectives with renewed vigor. The Board also acknowledges the valuable teamwork, devotion and dedication by the executives, employees and workers of the Company.
Place: Lahore: Dated: 25 May 2026
On behalf of the Board
(ABDULLAH ILYAS)
Chief Executive
t saxxD OIL HASSAN N CO.
Chartered Accountants
INDEPENDENT AUDITOR'S REVIEW REPORT
TO THE MEMBERS OF HASEEB WAQAS SUGAR MILLS LIMITED REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS
Introduction
We have reviewed the accompanying condensed interim statement of financial position of HASEEB WAQAS SUGAR MILLS LIMITED ("the Company") as at March 31, 2026, and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, and condensed interim statement of cash flows, together with the notes forming part thereof for the six-month period then ended (herein after referred to as the "interim financial statements").
Management is responsible for the preparation and presentation of this condensed interim financial statement 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 Ehan an audit conducted in accordance with International Standards on Auditing and consequenty 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 for Qualified Conclusion
During our review, we identified the folowing unresolved matters:
Plant and Machinery Impairment: The Company's plant and machinery, with a carrying value of Rs. 4.738 billion (representing 83a of total assets), has been idle since operations ceased on September 30, 2018. Although the last revaluation was conducted in 2023, the Company has not performed an annual impairment test or catcuated the "value in use" as required by IAS 36. In the absence of a current impairment assessment, we were unable to determine the extent of any further write-downs required to reflect the recoverable amount of these assets.
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G.H O CO.
/ t
Chartered Accountants
COXTIHVED
Unconfirmed Gratuity Payable: The Gratuity Payable balance amounting to Rs. 40.680 million lfas not been confirmed by management, and no actuarial valuation report was provided to support this balance. As a result, we were unable to verify the accuracy and completeness of this liability through alternative procedures. Consequently, we are unable to determine whether any adjustments are necessary to this balance.
Sales Tax Status Et Liabilities: The Company's safes tax status remains blacklisted by the Federal Board of Revenue (FBR) due to non-payment of outstanding sales tax liabilities amounting to Rs. 195.389 million. The blacklisted status indicates non-compliance with tax regulations, which may have material implications for the Company's financial position. Furthermore, we were unable to obtain sufficient appropriate evidence to verify the completeness and accuracy of these outstanding liabilities.
Litigated Bank Balances and Borrowings: Balances payable to various banks in respect of the current portion of long-term loans and lease liabilities amounting to Rs. 1,367.188 million, and mark-up on loans and other payables amounting to Rs. 1,183.696 million, remain unpaid and unconfirmed. All these balances are currently in litigation. We were unab[e to satisfy ourselves as to the correctness, terms and conditions, and cost of funds of these balances through alternative procedures.
Unconfirmed Trade and Other Payables: Trade and other payable balances of Rs.
633.153 million could not be confirmed due to the unavailability of addresses for certain parties. Due to the long-outstanding nature of these balances, we were unable to verify the amounts through alternative procedures, preventing us from determining if any adjustments are necessary.
Non-Compliance with Companies Act (Unclaimed Dividends): The Company has not complied with Section 244 of the Companies Act, 2017, regarding unclaimed dividends of Rs. 1.444 million. These long-outstanding amounts have not been deposited into the Federal Government Treasury, nor have required shareholder notifications been issued, leaving potential penalties unquantified.
Long-Outstanding Receivables and Advances: Advances, deposits, prepayments, and other receivables amounting to Rs. 98.709 milion remain long outstanding. No direct confirmations were obtained, and no provision for doubtful balances has been recognized despite uncertainty over recoverability. Consequently, assets and profit for the period are overstated.
Stores, Spares, and Loose Tools Verif1cadon: Stores, spares, and loose toos amounting to Rs. 56.408 million were not supported by sufficient evidence, such as audited stock sheets, valuation reports, or ag1ng analysis. We were unable to verify their physical existence, condition, or potential obsolescence.
Chartered Accountants
COX7INUED
Qualified Conclusion
Based on our review, except for the possible effects of the matters described in the Basis /or Qualified Conclusion section of our report, nothing has come to our attention that causes us to believe that the accompanying interim financial statements do not give a true and fair view of the financial position of the Company as at March 31, 2026, and of its financial performance and its cash flows for the six-month period then ended in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.
Material Uncertainty Related to Going Concern
We draw attention to Note 5 in the interim financial statements, which indicates that the Company has accumulated losses amounting to Rs. 5,734.514 million (plus the current period's share of net loss), and its current liabilities heavily exceed its current assets. Furthermore, there has been no production activity in the Company since operations ceased on September 30, 2018. These conditions, along with other matters as outlined in the notes, indicate the existence of a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.
Other Matter
The figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the three month individual periods ended March 31, 2026, and March 31, 2025, have not been reviewed, as we were required to review only the cumulative figures for the six-month period ended March 31, 2026.
The engagement partner on the review resulting in this independent auditor's report is Saeed UI Hassan, FCA.
SAEED UL HASSAN & Co.
Chartered Accountants
^•°•'‹^!›'›^
Place: Lahore Date: May 22, 2026
UDIN: RR20261061793mBjiKxR
HASEEB WAQAS SUGAR MILLS LIMITEDCONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT MARCH 31, 2026
Un-audited Audited
EQUITY AND LIABILITIES
Share Capital and Reserves
Authorized capital
35,000,000 (Sept. 30, 2022: 35,000,000) ordinary
Note
March 31, 2026 Sep 30, 2025 Rupees
shares of Rs. 10 each | 350,000,000 | 350,000,000 | ||
Issued, subscribed and paid up capital | 6 | 324,000,000 | 324,000,000 | |
Loan from Directors | 7 | 1,290,088,319 | 1,283,018,319 | |
Surplus on Revaluation of Property, | ||||
Plant and Equipment | 4,295,913,843 | 4,394,722,372 | ||
Accumulated loss | (5,734,513,725) | (5,719,685,672) | ||
175,488,437 | 282,055,019 | |||
Non Current Liabilities | ||||
Long term financing | 8 | - | - | |
Deferred liabilities | 170,680,443 | 170,710,443 | ||
Deferred taxation | 1,238,281,661 | 1,264,919,381 | ||
1,408,962,104 | 1,435,629,824 | |||
Current Liabilities | ||||
Trade and other payables | 828,541,806 | 828,973,901 | ||
Markup/ interest payables | 1,183,695,578 | 1,183,695,578 | ||
Short term borrowings | 9 | 753,147,795 | 752,354,725 | |
Unclaimed dividend | 1,443,972 | 1,443,972 | ||
Current portion of non current liabilities | 10 | 1,367,187,642 | 1,367,187,642 | |
4,134,016,793 | 4,133,655,818 | |||
Contingencies and Commitments | 11 | - | - | |
5,718,467,334 | 5,851,340,661 | |||
ASSETS | ||||
Non Current Assets | ||||
Property, plant and equipment | 12 | 5,462,038,587 | 5,590,405,003 | |
Long term deposits | 470,000 | 470,000 | ||
5,462,508,587 | 5,590,875,003 | |||
Deferred Cost | 98,000,000 | 98,000,000 | ||
Current Assets | ||||
Stores, spares and loose tools | 56,407,833 | 56,407,833 | ||
Stock in trade | 13 | - | - | |
Advances, deposits, prepayments and other recievables | 98,708,547 | 103,397,890 | ||
Cash and bank balances | 2,842,367 | 2,659,935 | ||
157,958,747 | 162,465,658 | |||
5,718,467,334 | 5,851,340,661 |
The annexed notes form an integral part of these condensed interim financial information
ABDULLAH ILYAS
CHIEF EXECUTIVE
RAZA MUSTAFA
DIRECTOR
SYED MUBASHIR HUSSAIN BUKHARI
CHIEF FINANCIAL OFFICER
HASEEB WAQAS SUGAR MILLS LIMITED
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)
FOR THE HALF YEAR AND 2ND QUARTER ENDED MARCH 31, 2026
Half year ended | Quarter ended | |||||||
March 31, 2026 March 31, 2025 | March 31, 2026 March 31, 2025 | |||||||
Note | Rupees | Rupees | ||||||
Sales - Net | 14 | - - | - - | |||||
Cost of goods sold | 15 | (131,841,774) (141,418,666) | (65,919,077) (69,856,733) | |||||
Gross profit/(loss) | (131,841,774) (141,418,666) | (65,919,077) (69,856,733) | ||||||
Operating expenses: | ||||||||
- Administrative and general | (9,673,510) | (6,410,556) | (5,750,285) | (2,881,840) | ||||
(141,515,284) | (147,829,222) | (71,669,362) | (72,738,573) | |||||
Other operating income | 16 | 1,248,248 | - | 1,248,248 | - | |||
(Loss/Profit) from operation | (140,267,036) | (147,829,222) | (70,421,114) | (72,738,573) | ||||
Finance cost | (7,266) | (1,642) | (7,266) | (100) | ||||
(Loss/Profit) before taxation | (140,274,302) | (147,830,864) | (70,428,380) | (72,738,673) | ||||
Taxation | ||||||||
| - 26,637,720 | - 34,958,350 | - (96,420,049) | - (65,910,306) | ||||
26,637,720 | 34,958,350 | (96,420,049) | (65,910,306) | |||||
(Loss/Profit) after taxation | (113,636,582) | (112,872,514) | (166,848,429) | (138,648,979) | ||||
Loss/Profit per share - basic and diluted | (3.51) | (3.48) | (5.15) | (4.28) | ||||
The annexed notes form an integral part of these condensed interim financial information.
ABDULLAH ILYAS
RAZA MUSTAFA
SYED MUBASHIR HUSSAIN BUKHARI
CHIEF EXECUTIVE DIRECTOR CHIEF FINANCIAL OFFICER
HASEEB WAQAS SUGAR MILLS LIMITED
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
FOR THE HALF YEAR AND 2ND QUARTER ENDED MARCH 31, 2026
Half year ended Quarter ended
March 31, 2026 March 31, 2025 March 31, 2026 March 31, 2025
Rupees Rupees
(Loss/Profit) after taxation (113,636,582) (112,872,514) (166,848,429) (138,648,979)
Other comprehensive income for the period - - - -
Total comprehensive (loss) for the period (113,636,582) (112,872,514) (166,848,429) (138,648,979)
The annexed notes form an integral part of these condensed interim financial information
ABDULLAH ILYAS
RAZA MUSTAFA
SYED MUBASHIR HUSSAIN BUKHARI
CHIEF EXECUTIVE DIRECTOR CHIEF FINANCIAL OFFICER
HASEEB WAQAS SUGAR MILLS LIMITED
CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)
FOR THE HALF YEAR ENDED MARCH 31, 2026
March 31, 2026 March 31, 2025
Rupees
CASH FLOW FROM OPERATING ACTIVITIES
(Loss)/profit before taxation | (140,274,302) | (147,830,864) | |
Adjustments for: | |||
- Depreciation | 128,366,416 | 135,459,428 | |
- Finance cost | 7,266 | 1,642 | |
128,373,682 | 135,461,070 | ||
Operating profit before working capital changes | (11,900,620) | (12,369,794) | |
(Increase) / decrease in current assets: | |||
- Stores, spares and loose tools | - | (7) | |
- Stock in trade | - | - | |
- Advances, deposits, prepayments and other recievables | 4,524,906 | (14,051,193) | |
Increase / (decrease) in current liabilities: | |||
- Trade and other payables | (432,095) | 13,139,932 | |
4,092,811 | (911,268) | ||
Cash generated /(used in) from operations | (7,807,809) | (13,281,062) | |
Income tax paid / deducted | 164,437 | 76,753 | |
Gratuity paid | (30,000) | - | |
Finance cost paid | (7,266) | (1,642) | |
Net cash generated from/(used in) operating activities | (7,680,638) | (13,205,951) | |
CASH FLOW FROM INVESTING ACTIVITIES | |||
Property, plant and equipment purchased | - | - | |
Long term deposits | - | - | |
Proceeds from sale of property, plant and equipment | - | - | |
Net cash (used in) investing activities | - | - | |
CASH FLOW FROM FINANCING ACTIVITIES | |||
Proceeds / (Repayment) from long term loans - Net | - | - | |
Proceeds / (Repayment) from Directors/Sponsors- Net | 7,070,000 | 4,617,000 | |
Proceeds / (Repayment) of related parties | 793,070 | (1,377) | |
Net cash generated from financing activities | 7,863,070 | 4,615,623 | |
Net increase/(decrease) in cash and cash equivalents | 182,432 | (8,590,328) | |
Cash and cash equivalents at the beginning of the period | 2,659,935 | 8,632,886 | |
Cash and cash equivalents at the end of the period | 2,842,367 | 42,558 | |
The annexed notes form an integral part of these condensed interim financial information.
ABDULLAH ILYAS
RAZA MUSTAFA
SYED MUBASHIR HUSSAIN BUKHARI
CHIEF EXECUTIVE DIRECTOR CHIEF FINANCIAL OFFICER
HASEEB WAQAS SUGAR MILLS LIMITED
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
FOR THE HALF YEAR ENDED MARCH 31, 2026
Issued | Loan | Surplus on | Accumulated | ||||||
Subscribed | from | Revaluation of | (Loss) / Profit | Total | |||||
and Paid up | Directors | Property, Plant | |||||||
Capital | & Equipments | ||||||||
R u p e e s | |||||||||
Balance as at September 30, 2024 | 324,000,000 | 1,258,445,119 | 4,549,877,441 | (5,629,735,685) | 502,586,875 | ||||
Loss for the period | - | - | - | (112,872,114) | (112,872,114) | ||||
Other comprehensive Income / (Loss) for the Period | - | - | - | - | - | ||||
Total comprehensive income / (loss) for the period | - | - | - | (112,872,114) | (112,872,114) | ||||
Transation with Owners: | |||||||||
Increase / (Decrease) in Director's Laon during the Period | - | 4,617,000 | - | - | 4,617,000 | ||||
Surplus on revaluation of fixed assets transferred to | |||||||||
retained earnings in respect of incremental depreciation - net of Tax | - | - | (79,206,352) | 79,206,352 | - | ||||
Balance as at March 31, 2025 | 324,000,000 | 1,263,062,119 | 4,470,671,089 | (5,663,401,447) | 394,331,761 | ||||
Total comprehensive loss for the period | |||||||||
Net (loss) for the period | - | - | - | (132,232,942) | (132,232,942) | ||||
Other comprehensive income | - | - | - | - | - | ||||
Total comprehensive income / (loss) for the period | - | - | - | (132,232,942) | (132,232,942) | ||||
Increase in director's loan during the year | - | 19,956,200 | - | - | 19,956,200 | ||||
Revaluation Surplus arise during the year Surplus on revaluation of fixed assets transferred to | - | - | |||||||
retained earnings in respect of incremental depreciation | - | (75,948,717) | 75,948,717 | - | |||||
Balance as at September 30, 2025 | 324,000,000 | 1,263,062,119 | 4,394,722,372 | (5,719,685,672) | 262,098,819 | ||||
Total comprehensive loss for the period | |||||||||
Net loss for the period | - | - | - | (113,636,582) | (113,636,582) | ||||
Adjustment | - | ||||||||
Other comprehensive income | - | - | - | - | - | ||||
Total comprehensive income / (loss) for the period | - | - | - | (113,636,582) | (113,636,582) | ||||
Increase in director's loan during the year | - | 7,070,000 | - | - | 7,070,000 | ||||
Surplus on revaluation of fixed assets transferred to | (98,808,529) | 98,808,529 | - | ||||||
retained earnings in respect of incremental depreciation | - | - | - | - | - | ||||
Balance as at March 31, 2026 | 324,000,000 | 1,270,132,119 | 4,295,913,843 | (5,734,513,725) | 155,532,237 |
The annexed notes form an integral part of these condensed interim financial information.
ABDULLAH ILYAS
RAZA MUSTAFA
SYED MUBASHIR HUSSAIN BUKHARI
CHIEF EXECUTIVE DIRECTOR CHIEF FINANCIAL OFFICER
HASEEB WAQAS SUGAR MILLS LIMITED
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE HALF YEAR ENDED MARCH 31, 2026
STATUS AND ACTIVITIES
Haseeb Waqas Sugar Mills Limited ("the Company") was incorporated on 13 January 1992 as a Public Limited Company under the Companies Ordinance, 1984 ( Now the Companies Act 2017). The Company's registered office is situated at 6-F Model Town, Lahore. The mill is situated at Tehsil Jattoi Distt. Muzafargarh. The Company is listed on Pakistan Stock Exchange. The principal activity of the Company is manufacture and sale of refined sugar and its by-products.
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 which 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 (the Act) and provisions of and directives issued under the Act. Where the provisions of and directives issued under the Act differ with the requirements of IAS 34, the provisions of and directives issued under the Act have been followed.
These condensed interim financial statements do not include all the information and disclosures required in an annual audited financial statements, and should be read in conjunction with the Company's annual audited financial statements for the year ended September 30, 2022.
This condensed interim financial report comprises of the condensed interim statement of financial position as at March 31, 2024, the condensed interim profit or loss account, the condensed interim profit or loss account and other comprehensive income, condensed interim statement of changes in equity and the condensed interim statement of cash flows for the six months period then ended which have been subjected to a review but not audited. This condensed interim financial report also includes the condensed interim profit or loss account for the quarter ended March 31, 2024 which is not subject to a review.
The comparative Statement of financial position, presented in this condensed interim financial statement, as at March 31, 2024 has been extracted from the annual audited financial statements of the Company for the year ended September 30, 2023 whereas the comparative condensed interim profit or loss account, the condensed interim profit or loss account and other comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows for the six months period ended March 31, 2023 were subjected to review but not audited. The comparative condensed profit or loss account for the quarter ended March 31, 2023 included in this condensed interim financial report was not subject to a review.
BASIS OF MEASUREMENT
This condensed interim financial information has been prepared under the historical cost convention modified by adjustment of revaluation of certain assets. In this condensed interim financial information, except for the statement of cash flows, all the transactions have been accounted for on accrual basis.
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies and the methods for computation adopted for the preparation of this condensed interim financial information is the same as those applied in preparation of the financial statements for the year ended September 30, 2025.
GOING CONCERN ASSUMPTION
During the period under review, the Company posted gross loss of Rs. 131,841,774/- as compared to last period's of Rs. 141,418,666/-. Further, the Company remain non operational during the crushing season and resultantly have zero production and sales during the period.
OPERATIONAL MEASURES
In view of above issues Company has taken and / or in the process of taking following mitigating steps: Shifting of mill to Alipur Jatoi, Muzaffargarh done where sugar cane availability and sugar recovery are better. BMR done and we will see impact of this BMR in the financials of coming season.
Our review petition (regarding shifting of mill to Alipur Jatoi) dismissed by Supreme Court and management considering altrnate options avaiable including but not limited to application to Ministry of Industries and Planning under Section 3 of the Punjab Industries (Control on Establishment and Inlargement) Ordinance, 1963.
The management foresees positive cash flow from future operations in expectation of better availability of sugar cane and sugar prices in coming season, since sugar dynamics are good and rising.
The projected financial statements prepared by the management to support its going concern assessment is based on following assumptions.
Year Ended September 30,
2027 2028 2029
Sugar Cane Crushing M.T
780,000
800,000
800,000
Sugar cane rate
400
425
450
Sugar price per Kg
135
140
145
However, it is believed that considering the mitigating factors set out in the preceding paragraphs, the going concern assumption is appropriate and has, as such, prepared these financial statements on a going concern basis.
ISSUED, SUBSCRIBED AND PAID UP CAPITAL
Rupees
27,000,000 (March 31, 2025: 27,000,000) shares issued for cash 270,000,000 270,000,000
5,400,000 (March. 31, 2025: 5,400,000) shares issued as fully paid bonus shares 54,000,000 54,000,000
324,000,000 324,000,000
There is no movement in ordinary share capital of the Company during the period.
LOAN FROM DIRECTORS 1,290,088,319 1,283,018,319
This loan has been obtained from Sponsors of the Company, and is interest free. There is no fixed tenor or schedule for repayment of this loan. According to the loan agreement, the lenders shall not demand repayment and the same is entirely at the Company's option. Further, this loan is subordinated to National Bank of Pakistan, The Bank of Punjab, Sindh Bank Limited and Silk Bank Ltd.
These loans are accounted for under Technical Release - 32 "Accounting Directors' Loan" issued by the Institute of Chartered Accountants of Pakistan effective for the financial statements for the period beginning on or after January 01, 2016 with earlier application permitted.
LONG TERM FINANCING
Loan from banking companies and other financial institutions-secured
National Bank of Pakistan
- Demand Finance I | 8.1.1 | 220,000,000 | 220,000,000 | ||
- Demand Finance II | 8.1.2 | 160,000,000 | 160,000,000 | ||
Sindh Bank Ltd - Demand Finance | 8.1.3 | 500,000,000 | 500,000,000 | ||
Silk Bank Ltd | |||||
- Demand Finance | 8.1.4 | 390,000,000 | 390,000,000 | ||
PAIR Investment Company Limited - Demand Finance | 8.1.5 | 70,000,000 | 70,000,000 | ||
1,340,000,000 | 1,340,000,000 | ||||
Less: current portion shown under current liabilities | |||||
- NBP - Demand Finance - I | (220,000,000) | (220,000,000) | |||
- NBP - Demand Finance - II | (160,000,000) | (160,000,000) | |||
- Sindh Bank - Demand Finance | (500,000,000) | (500,000,000) | |||
- Silk Bank Ltd | (390,000,000) | (390,000,000) | |||
- Demand Finance - PAIR | (70,000,000) | (70,000,000) | |||
(1,340,000,000) - | (1,340,000,000) - | ||||
8.1.1 | Demand Finance I - NBP | ||||
Opening balance | 220,000,000 | 220,000,000 | |||
Loan obtained during the period / year | - | - | |||
220,000,000 | 220,000,000 | ||||
Less: payment made during the period / year | - 220,000,000 | - 220,000,000 | |||
This finance has been obtained from National Bank of Pakistan The finance is secured by 1st PP charge of Rs. 293.334 million on fixed assets of the Company and personal guarantees of sponsoring directors of the Company. It carries markup 3 months KIBOR +2.5% per annum. This loan is payable in ten bi-annual instalments.
Demand Finance II - NBP
Opening balance 160,000,000 160,000,000
Loan obtained during the period / year - -160,000,000 160,000,000
Less: payment made during the period / year - -
160,000,000 160,000,000
This finance has been obtained from National Bank of Pakistan The finance is secured by 1st PP charge of Rs. 213.334 million on fixed assets of the Company and personal guarantees of sponsoring directors of the Company. It carries markup 3 months KIBOR +2.5% per annum. This loan is payable in twelve equall quarterly instalments.
Demand Finance - Sindh Bank
Opening balance 500,000,000 500,000,000
Loan obtained during the period / year - -500,000,000 500,000,000
Less: payment made during the period / year
- -
500,000,000 50,000,000
This finance has been obtained from Sindh Bank Limited under demand finance arrangement. The finance is secured by ranking charge over all present and future fixed assets of the Company and personal guarantees of directors of the Company. It carries markup 3 months KIBOR +5% per annum. This loan is payable in twelve quarterly instalments.
Rupees
Demand Finance - Silk Bank Ltd
Opening balance 390,000,000 390,000,000
Loan obtained during the period / year - -390,000,000 390,000,000
Less: payment made during the period / year - -
390,000,000 390,000,000
This finance has been obtained from Silk Bank Limited under demand finance arrangement. The finance is secured by Pari passu charge over all present and future fixed assets of the Company and corporate guarantee of Abdullah Sugar Mills LTd and personal guarantees of directors of the Company. It carries markup 6 months KIBOR + 2% per annum. This loan is payable in twelve quarterly instalments.
Demand Finance - PAIR
Opening balance 70,000,000 70,000,000
Less: payment made during the period / year - -
70,000,000 70,000,000
This finance has been obtained from PAIR Investment Company Limited. The finance is secured by parri passsu charges over the present and future fixed assets of the Company, with a margin of 33% above the financing amount. Parri passu charge by way of creation of mortgage over the land and building of the Company and personal guarantees of directors of the Company. It carries markup 3 months KIBOR +350 bps per annum. This loan is payable in eighteen equal monthly installments.
9 SHORT TERM BORROWINGS | |||
Loan from related parties | 753,147,795 | 752,354,725 | |
753,147,795 | 752,354,725 | ||
10 CURRENT PORTION OF NON CURRENT LIABILITIES | |||
Long term finances | 1,340,000,000 | 1,340,000,000 | |
Liabilities against assets subject to finance lease | 27,187,642 | 27,187,642 | |
1,367,187,642 | 1,367,187,642 | ||
11 CONTINGENCIES AND COMMITMENTS | |||
The collector of Sales Tax And Central Excise (Adjudication) Lahore has issued a show cause notice to the Company for the further tax amounting to Rs. 47 million upto the tax period September 2002 on the grounds that it charged sales tax at the rate of 15 % on its sales to persons liable to be registered.
The Federal Board of Revenue has blacklisted the Sales Tax status of the Company on 8th March 2018 due to non compliance of the Sales Tax Act, 1990 and the rules made thereunder including not discharging of sales tax liability amounting to Rs. 209 million. However, the Company will further proceed to restate the sales tax status after starting of crushing season as mentioned in note # 5.
Company has made defaults in repayment of installment of long term loans form financial institutions and bank. As a result, company's name has been included in CIB report of State Bank of Pakistan. The detail of the cases are as:
Sr. #
Name of the Court
Date Instituted
Principal parties
Description of factual basis of the proceedings
Relief sought
1
Lahore High Court
03-May-17
Sindh Bank Limited
Default in repayment of principal amount of long term loan along with markup
rescheduling of loan
2
Lahore High Court
29-Jan-16
The Bank of Punjab
Settled
N/A
3
Lahore High Court
22-Sep-16
National Bank Of
Pakistan
Default in repayment of principal amount of long term
loan along with markup
rescheduling of
loan
4
Lahore High Court
31-Mar-17
First National Bank Modarba
Default in repayment of principal amount of long term loan along with markup
rescheduling of loan
5
Banking Court
20-Apr-18
PAIR Investment Company Limited
Default in repayment of principal amount of long term loan along with markup
rescheduling of loan
The Division Bench of Honorable Lahore High Court Lahore in its judgment dated September 11, 2017 ordered the relocation of Haseeb Waqas Sugar Mills Limited from Muzaffar Garh to Nankana. Furthermore, Lahore High Court directed the mills to restore and restitute the position by dismantling & removing the said mills from the present location. The Supreme Court of Pakistan vide short order even dated September 13, 2018 dismissed the Company's appeal and prohibited the Company from conducting any business in relation to or functioning as a sugar mill after the period of two months i.e. 12 November 2018. Further, the appellants are directed to remove within the said period from Muzaffar Garh (current factory location) to Nankana (pervious factory location).
However, the Company has filled review petition dated 6th November 2018 to review the above order and accept the appeal filed by the petitioners; but the Supreme Court upheld the previous order to remove the plant from Muzaffar Garh to Nankana Sahab.
Further the company has moved an application to Ministry of Industries under section 3 of the Punjab Industries (Control on Establishment and Enlargement) Ordinance 1963 but the application has been turned down by Ministry of Industries.
Principal parties for respondents are Govt. of the Punjab, JDW Sugar Mills Limited, Ashraf Sugar Mills Limited, Indus Sugar Mills Limited and RYK Mills Limited etc.
The Company has not complied with the section 244 of Companies Act, 2017 with respect to unclaimed dividend but it is not expected to have any legal consequences.
PROPERTY, PLANT AND EQUIPMENT
March 31, 2026 Sep 30, 2025 Rupees
Opening written down value
Addition / Deletion during the period
5,590,405,003
-
5,863,625,134
-
5,590,405,003
5,863,625,134
Depreciation for the period / year
(128,366,416)
(273,220,131)
5,462,038,587
5,590,405,003
STOCK IN TRADE March 31, 2026 Sep 30, 2025
Rupees
Work in process
Sugar - -
By products stock - -
- -
14 | SALES - NET | Half year ended March 31, 2026 March 31, 2025 Rupees | Quarter ended March 31, 2026 March 31, 2025 Rupees | |||||
| - - - - - - | - - - - - - | ||||||
- - | - - | |||||||
Less: Sales tax and excise duty | - - | - - | ||||||
- - | - - | |||||||
15 | COST OF GOODS SOLD | |||||||
Raw materials consumed | - | - | - | - | ||||
Stores and spares consumed | - | 136,839 | (58,650) | 78,189 | ||||
Salaries, wages and other benefits | 2,235,449 | 5,035,269 | (313,170) | 2,486,650 | ||||
Repair and maintenance | 2,527,075 | 2,081,242 | 782,709 | 336,876 | ||||
Depreciation | 126,832,541 | 133,821,090 | 59,944,900 | 66,933,449 | ||||
Others | 246,709 | 344,226 | (75,948) | 21,569 | ||||
131,841,774 | 141,418,666 | 60,279,841 | 69,856,733 | |||||
Opening work in process | - | - | - | - | ||||
Closing work in process | - | - | - | - | ||||
- | - | - | - | |||||
Cost of goods manufactured | 131,841,774 | 141,418,666 | 60,279,841 | 69,856,733 | ||||
Opening finished goods | - | - | - | - | ||||
Closing finished goods | - | - | - | - | ||||
- | - | - | - | |||||
Cost of goods Sold | 131,841,774 | 141,418,666 | 60,279,841 | 69,856,733 | ||||
16 | Other operating income Total Receipt net of Harvesting Expenes | 1,248,248.00 | - | 1,248,248.00 | - | |||
1,248,248.00 | - | 1,248,248.00 | - | |||||
RELATED PARTY TRANSACTIONS
Related parties comprise holding company, subsidiaries and associated undertakings, other related group companies, key management personnel including Chief executive, Directors and Executives and Post employment benefit plans. The Company in the normal course of business carries out transactions with various related parties. Details of related party transactions and balances are as follows:
Details of related party transactions other than those with key management personnel
The Company during the period / year entered into following transactions with related parties other than key management personnel:
Transactions with Associates
Sale of molasses
March 31, 2026 Sep 30, 2025
Rupees
Abdullah Sugar Mills Ltd - -
(Repayment) / Obtain of Laon (to)/from
Abdullah Sugar Mills Ltd 800,000 266,410 Haseeb Waqas Trading (Pvt) Ltd - -
Payments against balances due to related parties were made partially in cash and partially by paying for expenses on behalf of related parties and vice versa.
As per common practice in the sugar industry in Pakistan, the Company also purchased sugar cane from persons associated, directly and indirectly, with management personnel of the Company. These purchases were made in accordance with the cane procurement practice in the sugar industry. It is not practicable to determine the related amounts.
Details of related party balances are as follows:
March 31, 2026 Sep 30, 2025 Rupees
Due to:
Abdullah Sugar Mills Limited
750,950,661
750,150,661
Haseeb Waqas Trading (Pvt.) Limited
2,204,064
2,204,064
Loan from Directors and Sponsors
1,290,088,319
1,283,018,319
AUTHORIZATION FOR ISSUE
This condensed interim financial informtion has been authorized for issue by the Board of Directors of the Company on May 22, 2026.
GENERAL
Comparative figures have been rearranged / reclassified, wherever necessary, to facilitate comparison.
Figures have been rounded off to the nearest of Pakistani rupees.
ABDULLAH ILYAS
RAZA MUSTAFA
SYED MUBASHIR HUSSAIN BUKHARI
CHIEF EXECUTIVE DIRECTOR CHIEF FINANCIAL OFFICER