Transmission of Quarterly Report for the 3rd Period Ended June 30, 2025

KHAIRPUR

SUGAR MILLS MMITED

FINANCIAL STATEMENTS

Qu

June 30, 2025

KHAlRPUR 01

SUGAR MILLS LIMITED

CONTENTS

" KHAIRPUR

SUGAR BILLS LIMITED

Dqte of Zncorporation Augus1 2?' , 1989

Date of Commencement of Business

September 13, 1989

BOARD OF DIRECTORS

Mr. F8raz Mubeen Jumeni

Chjef Executive Officer

Mr. Muhsrnined Mubeen Jumani Mr. F8had Mubeen Jumani

Mrs. Qsmar Mubecn Jumani

C hairperson

Miss. Arisha Mubeen Jumani Mr. Asif Khen Brohi

Mr. Ghulam Nabi Mem on Morai

CHIE F OPERATING OFFICER

Mr. Suleman Kanjiani

CFO & COMPANY SECRETARY

Mr. Mirza Muh8mm8 d Bila1 K8mil

BANKERS

Na honal B8nk of Pakistan Sindh Bank Limited

Dubai Islamic Bank Palcistan Limited MCB Bank Limited

United Bank Limited Allied Bank Limited Bank AI Fala h Limited Habib Bank Limited JS Bank Limited

Bank AI Habib Limited Faysal Islamic Bank Limited

Habib Metropoli tan Bank Limi ted MCB Islamic Bank Limited Meezan BanL Limited

STATUTORY AUDITORS

M/S. Reanda Haroon Zakaria Aamir Salman Rizwen & Company Chartered Aooountants

M- I -M4, Mezzanine Floor, Progressive P18 ze, Plot No. 5 CL - 10, Civil Lines Quarter,

B eauiriont Road, Near Dawood Centre,

Karachi - 75530 PAKISTAN.

02

COST AUDITORS

A.D Akhawala & Co

321, 3rd Floor Uni Centre

LI Chundrigar Road, Karachi 74000

AUDIT COMMITTEE

Mr. Asit Khan Brohi Chairman Mr. Ghu1am Nabi Memon Morai Member Mrs.Qarnar Mubecn Jumani Member

BR AND REFIUNERATION COMMITTEE

Mr. Asif Khan Brohi Chairman Mr. Ghu lam Nabi Memon Morai Member Mr. F8had Mubeen Jumani Member

NOMINATION COMMITTEE

Mr. Asit Khan Brohi Chairman Mrs.Qamar Mubecn Jumani Member Mr. F8had Mubeen Jumani Member

RISK MANAGEMENT COMMITTEE

Mr. Asit Khan Brohi Chairman Mr. Muhammad Mubeen Jumani Member Miss Arisha Mn been I umani Member

LEGAL AHWSOR

Asad Ali Riar

Suite No 17- 18 Farid Chumbers,2nd Floor Abdullah H8roon Roe d, Ker8 chi

SHARES REGISTERAR

M/S. C & K Management Associates (Pvt.) Limited M-13, Mezzanine Floor, Progressive Plaza, Plot No.5 CL - 10, Cov il lines Quarter, Beam mont Road, Nea r Da wood Cen be, Karachi - 75530 PAKI STAN.

REGISTERED OFFICE

51/II/lV Khayaban e Janbaz, Phase V Ext., D.H.A., Kara chi Ph: 02 I -35250131-35

Fax: 021-35250 13C

MILLS

Naroo Dhoro, Ta luka Kot Diji, Kha irpur.

E-MAIL & WEBSITE

headoffioee ••anigroup.com htip://khairpursugar.com.pk

STOCK EXCHANGE SYMBOL

KPUS

KHAlRPUR 03

SUGAR MILLS LIMITED

We aim to be a leading manufacturer of quality sugar, and other allied products and its supplier in local and international markets. We aspire to be known for the quality of our products and intend to play a pivotal role in the economic and social development of Pakistan.

As a prominent producer of sugar, and other allied products, we shall continue to strive to achieve excellence in performance and aim to exceed the expectations of all stakeholders. We target to achieve technological advancements to inculcate the most efficient, ethical and time-tested business practices in our management.

" KHAIRPUR 04

SUGAR MILLS LIMITED

Assalam-u-Alaikutn, Dear Members

On behalf of the Board o1 Directors, it is our privilege to present before you the un-audited tinancial statements or the Company mm the third quarter ended June 30, 2025.

lhe summarized financial performance of the Company for the third quarter is as follows:

u e 2 2 i 2 24

Rupees in '000

The Company recorded an operating profit of Rs. 499.07 million for the third quarter under review as compared to Rs. 667.94 million in the same period last year. This decrease is mainly attributable to increased input costs and fluctuation in recovery rates. Despite these challenges, the Company maintained a jx›sitivc gross prolit margin aid rcnruincd operationally efticient.

Key operating hig hlights for crushing season 2024-25 as o1 June 30, 2025, are as follows:

SEASO SMS N

202 2 202|3- j24

KHAlRPUR 05

SUGAR MILLS LIMITED

The Government of Sindh (Apicul ture Supply & Prices Department) has not no tilted any of licial su garcane procurement lances. Due t‹i lower sucrose content in sugarcane, the average recovery has declined, leading to an increase in the per M.T cost of sugar production. However, the selling price ‹at sugar is expected to cover all variable and fixed costs. Py the end o1 the season, and depending upon the shortage in production, industries expecting gradually increase in sale prices o1 the sugar which will counter the impact o1 lower recoveries, and plus the impact o1 reduction of finance cost depending on continuous declined in the KILOR rates, which also play a positive role in the company's profitability as the company expecting a decent profit in upcoming financial year.

DIVIDEN D

Due to modest earnings for the third quarter and in view of prudent financial rrranagemerit, the Board has decided not to declare any dividend for the period.

The management holds a positive out loo k ior the remaining fiscal year. Stability in sugar prices, coupled with a downward trend in finance cost (due to decline in KIBOR), is expected to support profitability. The Company continues to monitor market dynamic s and cost efficiency closely.

ENVIRONMENTAL & SUSTAINABILITY INITIATIVES

Khairpur Sugar Mills Limited remains committed to environmental su stainat›ility. In compliance with the Sindh Environmental Protection Act 2013, the Company hns implemented measures to reduce water usage and improve drainage systems. With approval from the Sindh Environmental Protection Agency (SLPA) and guidance from foreign consultants, a wastewater treatment plant with a capacity ct 3,000 cubic meters/day has been installed. The treated water is reused liar agricultural purposes, significantly reducing environmental footprint and water wastage.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Company c‹intinues its commitment towarch social development by supp‹irting irntiati ves in education, healthcare, community in trastructure, and welfare. These efforts reflec t our values and reinforce our r‹ile as a resp‹insible c‹arporate citizen.

The Company has complied with corporate governance regulations in the following manner: The total number of Directors are seven as per the 1o1lou'ing:

a) 1 ive (5)

Two

KHAlRPUR

SUGAR MILLS LIMITED

2. l'he composition of board is as follows:

Independent Directors

Non-Executive Directors

Executive Directors Female Directors

06

Mr. Asil Khan Brohi,

Mr. Ghtilain Nabi Meinon Morai

Mr. Fallad Mubecn Juman i amar en Juman

Mr. Muhammad Mubccn Jumani en

The Roard had ionned committees comprising of members given below:

Mr. Asi1 Khan l3rohi

Mr. Gliulam Nabi Mcmon Morai Mq11 bq

Human Resource Mr. Asi1 Khan Brohi

and Remuneration Mr. Ghulam Nabi Memon Morai Committee amar

Nomination Commit tee

Risk Manag Committee

Mr. Asi1 Khan l3rohi

Mr. Faliad Mubc cn Jumani

amar Mube

Mr. Asi1 Khan l3rohi

Mr. Muhammad Mubecn Jumani Miss. Arisha Mubccn Jumani

Chairman/Member Member Chairman/Member Member

The Board expresses its gratitude to all shareholders, employees, customers, bankers, and stakeholders for their continuous support and trust. We remain committed to achieving sustainable growth and enhancing shareholder value.

For and on behalf of the Board of Directors Khairpur Sugar Mills Limited

(Faraz Mubccn Jumani)

Chief Executive Ofticer

Place: Karachi, dnted: July 30, 2025

(Muhammad Mubccn Jumani)

Director

KHAlRPUR 07

SUGAR MILLS LIMITED

AS AT JUNE 30, 2025

.tune 30, September 30,

2025 2024

lin-Audited Audited Note ----Rupees in 000's

NON-£"URRENT AMULETS

CU

The annexecl notes mom 1 to 10 torn an integral part of these inte rim financial st tements.

Fore.- Mubeen Jutiioni

Chief' Executive Officer

Mir••ii Muluttiuutiil Bilul Komil fluluuumud Mubei›n Jum‹ini

Chief financial Officer Director

Pluce: Karachi, Dated: July 30, 2025

KHAlRPUR 08

SUGAR MILLS LIMITED

STATEMENT OF CONDENSED INTERIM PROFIT OR LOSS

FOR THE NINE MONTHS ENDED JUNE 30, 202 i

Nine month ended Tbird quarter ended June 30, June 30, June 30, June 30,

202fi 2024 202fi 2024

-- - Rupees in 000's

SALFS - NET

GROSS PROFIT

Admirusfrafi›'c Expenses

Distribution Expcme

8,738,843 9,655,730 1,631,193 1,836,498

(7,917,128) (8,698,549) (1,499,383) (1,723,533)

821,71fi 957,181 131,810 I 12,965

(322,644) (289,236) (98,443) (77,799)

499,071 667,945

33,367

35,166

OTHER INCOME

II 308 6,822

510,379 674,767

I1,17G

fi4,fi43

2,199

37,365

FINAN€/IAL CHARGES (294,704) (354,896) (94,724) (106,5S6)

PROFIT/(LOSS) BEFORE TAXATION 215,675 3 I 9,871 (40,181) (69, 22 I )

65,025

PROFIT/(LOSS) AfTER TAXATION 101,969 171,009 19,82d OTHFR COMPREHF.NSD'E IN€?OME

PROFIT/(LOSS) FOR THE PFRIOD 101,969 l7 l ,009 19,8?S EARMNGS PER SHARE

-BASTC?ANDDTT.IVFD 6.37 1fi.69 1.24

'Ilrc annexed notes from 1 to 10 form an inteeral part ct these interim financial statements.

Place: Karachi, Dated: July 30, 2025

(4, I96)

(0.2fi)

" KHAIRPUR 09

SUGAR MILLS LIMITED

STATEMENT OF CONDENSED INTERIM CHANGES IN EQUITY (UN-AUDITED)

FOR THE NINE MONTHS ENDED JUNE 30, 202•i

Issued,

Surplus on revaluation

of fized assets

Accum ulst ed

Profit

Subordinated Tong} Loan

--Rupees in 000's---

The annexed notes from 1 io 10 forth an integral pan of ihese interim financial siaienienis.

Farah Mubeen Jumani

Chief Executive Officer

firm Muhammad 8ifaf Tamil

Chief Financial Officer

Place: Karachi, Dated: July 30, 2025

" KHAIRPUR 10

SUGAR MILLS LIMITED

June 30, June 30,

202fi 2024

flu-Audited Un-Audited

--Rupees in 000's---

1. CAGH FLOW FROFf OPERATING ACTIVITIES NET PROFIT BEFORE TAXATION

   Adjustments for:

   • Depreciauon

   • Amortization

     WORKING CAPITAL CHANGES:

     Sfores, spares and loose toois

     Stock in trade

     Loans and advances - Considered good Deposits, prepayment s and other recei›'ab1es Trade and other paya bles

     Taxes paid - net Financial charges paid

2. CASH FLOW FROM INVESTING ACTIVITIES

Fixed capital expenditure

Long term deposits Short term inves tment Capñal work-in-progress

NOT CASH (USED IN) INVESTING ACTIVITIES

c. case now Fno›i Fisaxcwc aciivmzs

Proceeds from short term borrowing Proceeds from Long term borrowing Repayment of lease renta1s

NOT CASH G€NERnTED FROF1 FffKf C ING ACTIYITIES NOT DECREASE IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENT AT BEGINNING

or tax rznion

CASH AND CASH EQUIVALENT AT ENB OF THE PERIOD

293,627

178,949

93

472,669

48,184 (1/23,323 238,542

78,813

(309,115) (1,484,702)

(114,083)

1,fi84,604

(1,018)

(9.091)

1.574,494

(24,291)

82,246

fi7,9S5

3l9,87I

354,896

1 I I

538,262

8, J84

(1,437,454)

159,560)

21,096

528,016

(939,718)

(81,585)

(463,777J

(545,362)

(137,593)

843,766

(180,536)

(5,912)

657,318

(25,637)

28,300

2,663

The annexed notes from 1 to 10 form an integral part of these interim financial statement s.

Faroe Mubeen lenient

Chief Executive Officer

Mirza Mtthattttitad Bilal Komil ytuliaittmad Mubeen Jumani

Chief Financial Officer Director

Place: Karachi, Dated: July 30, 2025

" KHAIRPUR i i

SUGAR MILLS LIMITED

1. NATURE AND STATUS OF BUSINESS

   The Company was incorporated in Pakistan on August 23, 1989 as a public limited company under the Companies Ordinance, 1984 (The Ordinance) repealed with The Companies Act 2fi17 (The Act). The company is listed on Pakistan Stock Exchange Limited (formerly Karachi Stock Exchange). Tlje registered out ce of the Company is situated at 51/II/IV 26th Street Khayaban e Janbaz, D.H.A Karachi.

   The Company is principally engaged in the manufacture and sale of sugar and by products.

2. BASIS OF PREPARATION

   2.l Statement of Compliance

   These condensed interim financial statements are unaudited and has been prepared in accordance with the approved accounting standards as applicable in Pakistan for interim financial reporting which comprise of the International Account in g Standard - 35 "Interim Financial Reporting" as applicable in Pakistan and provisions oL and directives issued under the Companies Act 2017; in case, where the requirements of the Intema0onal Accounting Standard differ, the provisions of, and directives issued under the Companies Act 2017 (the act). In cases where the requirements of the International Accounting Standard differ from the Companies Act 2017 (The Act), provisions of the Act shall prevail.

   This condensed interim financial statements does not include all the inforrriation required for full annual financial statements and should be read in conjunction with the audited financial statements of the company as at and for tlje year ended September 30, 2024.

   These condensed interim financial statements are being submitted to the shareholders as requéed under section 237 ol'the Companies Act, 2017 and the listing regulations of the Pakistan Stock Exchange.

   The comparative balance sheet presented in these interim financial statements has been extracted from the audited financial statements of the Company for the year ended September 30, 2024, whereas the comparative profit and loss account, statement of changes in equity, statement of comprehensive income and cash flow statement are extracted from the unaudited inteim financial statements For he third quarter ended June 30, 2025.

   2.2 Functional and Presentation Currency

   These condensed interim financial statements are prepared in Pakistani Rupees which is also the Company's functionaI currency and all the numbers presented have been rounded off to the nearest thousand.

3. SIGMFICANT ACCOUNTING POLICIES AND ESTIMATES

The accounting policies and the methods of computation adopted in the preparation of this condensed interim financial statements are the same as those applied in the preparation of the audited financial statements of the company as at and for the year ended September 30, 2024. Amendments to certain existing standards and interpretations on approved accounting standards effective during the period were not relevant to the company's operations and did not have any impact on the accounting policies of the company.

" KHAIRPUR 12

SUGAR MILLS LIMITED

4 ACCOUNTING ESTIMATES, HMENTS AND FFNANML RISK MANAGEMENT

The preparation of these condensed interim financial statements in conformity with approved accounung standards requires management to make estimates, assumptions and use judgments that affect the application of policies and reported amounts. Actual results may differ fiom these estimates, assumptions and judgements. Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting estimates are recognized prospectively commencing from the period of revision.

In preparing these condensed interim financial statements, the signi ticani judgments made by management in applying the Company's accounting policies and the key sources 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.

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 June 30, September 30,

2025 2024

Note ----Rupees in 000's----

KHAIRPUR 13

SUGAR MILLS LIMITED

7 tONTINGEN£'KS AND tO TMENTS

As at June 30, 2025, there is no material change in the status of matters reported as contingencies and commitments in the notes to financial statements of the company for the year ending 30 September 2024.

SEASONALITY OF OPERATIONS

The Sugar Industry operates on a seasonal basis normally from November to March. Therefore, all major production cost other than fixed cost, for example cost of goods manufactured, stock and short term finances are generally higher during this period.

DATE OF AiITHORJ AEON

This condensed interim financial infonriaiion has been authorized for issue on July 30, 2025 by the Board of Directors of the Company.

10 GENERAL

Figures have been rounded off to the nearest thousand rupees.

Fiaaz Mubeen Jumani

Chief Executive Officer

Mina Muhammad Bilal Kamil Muhammad Mubeen Jumani

Chief Financial Officer Director

Place: Karachi, Dated: July 30, 2025

51/II/IV, Khayaban-e-Janba2,

Phase-V Ext., D.H A., Karachi.

Tel : 021-35250131-35 Fax : 021-35250136

F-mail : headofficc@jumanigroup.com

Website : https://www.khairpursugar.com.pk