CONTENTS
Corporate Information
Directors' Review
Condensed Interim Statement of Financial Position
Condensed Interim Statement of Profit or Loss and Other Comprehensive Income
Condensed Interim Statement of Cash Flows
Condensed Interim Statement of Changes in Equity
Notes to the Condensed Interim Financial Statements
Directors' Review (Urdu)
2-3
4-6
8-9
10
11
12
13-20
21-24
CORPORATE INFORMATION
BOARD OF DIRECTORS | Mr. K. Iqbal Talib | Chairman |
Lt Col Abdul Khaliq Khan (Retd) | Chief Executive / Director | |
Mr. Saif Ullah Khan Noon | (Executive Director) | |
Syed Ali Raza | (Non- Executive Director) | |
Mr. Irfan Ahmed | (Non- Executive Director) | |
Mr. Atta Ali Malik | (Non- Executive / Independent Director) | |
Ms. Maryam Mamdot | (Non- Executive / Independent Director) | |
AUDIT COMMITTEE | Mr. Atta Ali Malik | Chairman |
Syed Ali Raza | Member | |
Ms. Maryam Mamdot | Member | |
HR & R COMMITTEE | Syed Ali Raza | Chairman |
Mr. Saif Ullah Khan Noon | Member | |
Lt Col Abdul Khaliq Khan (Retd) | Member | |
TECHNICAL COMMITTEE | Mr. Irfan Ahmed | Chairman |
Mr. Saif Ullah Khan Noon | Member | |
Lt Col Abdul Khaliq Khan (Retd) | Member | |
MANAGEMENT | Lt Col Abdul Khaliq Khan (Retd) | Chief Executive |
Mr. Saif Ullah Khan Noon | Executive Director | |
Syed Adeel Ahmed | Chief Operating Officer | |
Mr. Rizwan Sohail (FCA) | Chief Financial Officer | |
COMPANY SECRETARY | Mr. Nasir Iqbal Ansari | |
HEAD INTERNAL AUDIT | Muhammad Ashfaq (FCMA) | |
AUDITORS | Shinewing Hameed Chaudhri & Co., | |
Chartered Accountants | ||
LEGAL ADVISERS | Hassan & Hassan (Advocates) | |
BANKERS | Al Baraka Bank (Pakistan) Limited | |
Askari Bank Limited |
Bank Alfalah Limited - Islamic Banking
Bank Islami Pakistan Limited
Dubai Islamic Bank Pakistan Limited
Faysal Bank Limited
Habib Bank Limited - Islamic Banking
MCB Bank Limited
Meezan Bank Limited
Mobilink Microfinance Bank
National Bank of Pakistan
Samba Bank Limited
The Bank of Punjab
United Bank Limited
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REGISTERED OFFICE | 66-67-A, Garden Block, |
New Garden Town, Lahore. | |
Tel. (042) 35831462-3, | |
E-mail: noonshr@brain.net.pk | |
noonshr66@gmail.com | |
SHARES REGISTRAR | Corplink (Pvt.) Limited |
Wings Arcade, 1-K Commercial, | |
Model Town, Lahore. | |
Tel. # (042) 35839182, 35916714, 35916719 | |
Fax # (042) 35869037, E-mail: shares@corplink.com.pk | |
Website: www.corplink.com.pk | |
MILLS | Bhalwal, District Sargodha. |
WEBSITE | www.noonsugar.com |
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DIRECTORS' REVIEW
DEAR MEMBERS
The Directors of Noon Sugar Mills Limited are pleased to present the condensed interim financial statements of the Company for the nine months period ended on June 30 th , 2024.
FINANCIAL RESULTS
A comparison of the financial results for the nine months period ended June 30 th, 2024, as against June 30 th , 2023, is as follows:
Nine Months Period | |||
Ended June 30th | |||
2024 | 2023 | ||
---Rupees in million--- | |||
Net Sales | 7,857 | 6,273 | |
Gross profit | 1,643 | 1,285 | |
Earnings before tax | 428 | 267 | |
Taxation | (135) | (65) | |
Earnings after tax | 293 | 203 | |
----Rupees---- | |||
Basic Earnings per share | 17.75 | 12.27 |
"Despite a reduced returns from the 3rd quarter of this year, mainly owing to a phenomenal rise in financial costs on carrying stocks in the hope of improvement in sugar & ethanol markets and the burden of other outstanding liabilities, there is a substantial improvement in the gross profit of 9 months period, ending June, 30th 2024, yielding a net profit of Rs.293 million, against Rs. 203 million, in thecorresponding period last year, yielding a higher EPS of Rs.17.75, against Rs.12.27, earning per share,in the same period last year."
OPERATIONAL RESULTS
SugarDivision
The operational performance of the Sugar segment for the period under review, with comparative statistics of the corresponding period, are tabulated below:
Nine Months Period | |||
Ended June 30th | |||
2024 | 2023 | ||
Operating Period | Days | 98 | 101 |
Cane Crushed | M. Tons | 712,164 | 807,367 |
Sugar Produced | M. Tons | 73,597 | 75,717 |
Average Sucrose Recovery | %age | 10.30 | 9.37 |
Molasses Recovery | %age | 3.95 | 4.49 |
Molasses Produced | M. Tons | 28,303 | 36,281 |
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The current crushing season commenced on November 25, 2023. Your mills crushed 712,164 M.Tons of the sugarcane and produced 73,597 M. Tons sugar, with an average sucrose recovery of 10.30% in 98 days operation as compared to 807,367 M.Tons of the sugarcane crushed and 75,717 M.Tons of the sugar produced, with 9.37% sucrose recovery in 101 days operation of the last year.
A consistent support provided to sugarcane growers, through transfer improved field practices, provision of high yielding sugar rich varieties of cane and giving financial assistance by arranging loans for agricultural inputs at subsidized rates has begun to give dividends to the company in terms of improved sugar recovery. It gives great pleasure to inform you that your mill achieved the highest ever average sucrose recovery of 10.30% for the crushing season, Alhamdulillah.
The Punjab government had again increased the sugarcane support price to Rs. 400 per 40 kg for the current crushing season. This increase, along with historically high markup and tax rates, as well as other inflationary impacts, has significantly raised the cost of sugar production. A decline in sugar demand has further compounded the surplus stock situation and needs corrective steps by the govt. to allow further export of sugar for stabilizing the local market.
DistilleryDivision:
The operational performance of Distillery segment for the period under review with the comparative statistics of the comparative period is tabulated below:
Nine Months Period | |||
Ended June 30th | |||
2024 | 2023 | ||
Operating Period | Days | 147 | 179 |
Molasses Processed | M. Tons | 54,651 | 90,204 |
Ethanol Produced | M. Tons | 10,076 | 17,848 |
Average Yield | Ltrs./ M .Ton | 242 | 247 |
The Distillery plants processed 54,651 M.Tons of the molasses and produced 10,076 M.Tons of the ethanol with an average yield of 242 liters of the ethanol per M.Ton of the molasses in 147 days operation, as compared to 90,204 M.Tons of the molasses processed and 17,848 M.Tons production of the ethanol at an average yield of 247 liters of the ethanol per M.Ton of the molasses, in 179 days operation, during the corresponding period of the last year.
Procuring quality molasses from multiple sources to supplement the mills own production at a reasonable cost, remained a challenge during the reporting period. However, your management successfully secured a certain quantity of molasses at a reasonably good price. Ethanol prices in the international market remained under severe pressure due to the worldwide economic downturn. The Red Sea issue has further squeezed segment margins as buyers were reluctant to absorb the increased freight costs.
FUTURE OUTLOOK
SugarDivision
Countrywide sugar production in the last crushing season has surpassed initial estimates, resulting in a surplus stock of one million metric tons beyond annual consumption. Initial
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sugarcane surveys are reporting a healthy increase of twenty percent in sugarcane sowing area for the upcoming crushing season. These factors have created tremendous pressure on sugar prices in the local market, leaving mills with no option but to incur huge losses.
The government has allowed the export of 150,000 metric tons of sugar and has expressed willingness to permit further quantities if local market prices remain stable. However, this small allowance is insufficient to mitigate the damage of a huge surplus of sugar with a high cost of production, carrying the burden of an unprecedented high borrowing cost against the collateral of stocks.
The sugar mills are repeatedly requesting the government to allow the export of surplus sugar stocks before the onset of the next crushing season. This would provide a critical lifeline for the ailing sugar industry, beside earning the valuable foreign exchange for the country.
DistilleryDivision
Ethanol prices in the international markets may remain under pressure until the Red Sea issue is resolved. Meanwhile, molasses is becoming a rare commodity in the local market due to the entry of various new players into ethanol production, making molasses procurement increasingly competitive in the coming years.
Your management is well aware of these upcoming challenges and has developed appropriate strategies to maximize shareholder returns from this sector.
ACKNOWLEDGEMENT
The Board is thankful to all of its stakeholders for their invaluable consistent support to the Company. The Board would also like to place on record its appreciation to all the employees of the Company for their dedication, diligence and hard work.
For and on behalf of the Board of Directors
Lt Col Abdul Khaliq Khan (Retd) | Saif Ullah Khan Noon |
Chief Executive Officer / Director | Director |
Date: July 30, 2024 |
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CONDENSED INTERIM
FINANCIAL STATEMENTS
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CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
Equity and Liabilities
Note
Share Capital and Reserves
Authorised capital
50,000,000 ordinary shares of Rs.10 each
Issued, subscribed and paid-up capital 16,517,453 ordinary shares of Rs.10 each
Reserves
Unappropriated profit
Non-current Liabilities
Staff retirement benefits - gratuity | |
Current Liabilities | |
Trade and other payables | 5 |
Contract liabilities | |
Accrued mark-up | |
Short term finances | 6 |
Current portion of non current liabilities |
Unclaimed dividends
Unpaid dividends
Provision for taxation
Contingencies and commitments | 7 |
Un-Audited | Audited | |||||||
June 30, | September 30, | |||||||
2024 | 2023 | |||||||
- - - - Rupees in '000 - - - - | ||||||||
500,000 | 500,000 | |||||||
165,175 | 165,175 | |||||||
249,217 | 249,217 | |||||||
1,898,455 | 1,671,259 | |||||||
2,312,847 | 2,085,651 | |||||||
97,726 | 82,386 | |||||||
97,726 | 82,386 | |||||||
2,338,492 | 1,852,516 | |||||||
71,768 | 33,400 | |||||||
538,813 | 70,857 | |||||||
6,996,757 | 1,871,842 | |||||||
643 | ||||||||
5,100 | 5,053 | |||||||
6,613 | 5,686 | |||||||
301,206 | 166,601 | |||||||
10,258,749 | 4,006,598 | |||||||
10,356,475 | 4,088,984 |
12,669,322 6,174,635
The annexed notes form an integral part of these condensed interim financial statements.
Lt Col Abdul Khaliq Khan (Retd) | Siaf Ullah Khan Noon | Rizwan Sohail |
Chief Executive | Director | Chief Financial Officer |
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AS AT JUNE 30, 2024
Note | |
Assets | |
Non-current Assets | |
Property, plant and equipment | 8 |
Loans and advances | 9 |
Security deposits |
Current Assets
Stores, spares and loose tools
Stock-in-trade10
Trade debts
Loans and advances
Deposits and prepayments
Other receivables
Income tax refundable, advance income tax and tax deducted at source
Cash and bank balances
Un-Audited | Audited |
June 30, | September 30, |
2024 | 2023 |
- - - Rupees in '000 - - -
3,299,086 | 2,050,390 | |
20,489 | 8,992 | |
14,546 | 14,321 | |
3,334,121 | 2,073,703 | |
185,950 | 130,382 | |
6,654,035 | 2,535,667 | |
1,035,476 | 176,668 | |
726,350 | 775,275 | |
10,951 | 4,067 | |
134,215 | 164,847 | |
339,613 | 204,149 | |
248,611 | 109,877 | |
9,335,201 | 4,100,932 |
12,669,322 6,174,635
The annexed notes form an integral part of these condensed interim financial statements.
Lt Col Abdul Khaliq Khan (Retd) | Siaf Ullah Khan Noon | Rizwan Sohail |
Chief Executive | Director | Chief Financial Officer |
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