Transmission of Quarterly Financial Statements for the Period Ended 31-03-2025

SHAHS URAD

Company Information

BOARD OF DIRECTORS

MR. NOOR MOHAMMAD ZAKARIA MR. ZIA ZAKARIA

MRS. SANOBAR HAMID ZAKARIA MR. ASAD AHMED MOHIUDDIN MR. ZAINUDDIN

MR. RUMI MOIZ (Independent Director) MR. SHEIKH ASIM RAFIQ (Independent Director)

BOARD AUDIT COMMITTEE

MR. RUMI MOIZ

MR. NOOR MOHAMMAD ZAKARIA MRS. SANOBAR HAMID ZAKARIA

HUMAN RESOURCE AND REMUNERATION COMMITTEE

MR. RUMI MOIZ

MR. NOOR MOHAMMAD ZAKARIA MR. ZIA ZAKARIA

CHIEF FINANCIAL OFFICER MR. ZAID ZAKARIA

COMPANY SECRETARY

MR. MOHAMMAD YASIN MUGHAL

FCMA

AUDITORS

Mls. KRESTON HYDER BHIMJI & CO.

Chartered Accountants

LEGAL ADVISOR MR. IRFAN

Advocate

REGISTERED OFFICE

96-A, Sindhi Muslim Society, Karachi-74400 Tel: 34550161-63 Fax: 34556675

https://www.shahmuradsugar.co

REGISTRAR & SHARES REGISTRATION OFFICE

C & K Management Associates (Pvt) Ltd.

M-13, Progressive Plaza, Civil Lines Quarter Near P.I.D.C, Beaumount Road, Karachi - 75530

FACTORY

Jhok Sharif,

Taluka Mirpur Bathoro, District Sujawal (Sindh)

DIRECTORS' REPORT

Assalam-u- Alaikum

With great pleasure, I take this opportunity to present before you on behalf of the Board un-audited financial statements of your company for the period ended March 31, 2025. The financial statements have been reviewed by the Auditors as required under the Code of Corporate Governance 2019.

Salient features of production and Financial Statements are as under:

:

During the period under review, the sugarcane crop was not good as it was in the corresponding period of last year. The mill crushed 471,495 metric tons of cane against 654,604 metric tons crushed last year. Sugar produced was 47,953 metric tons as against 71,905 metric tons produced last year. During the current period, the production of sugar is substantially lower than last year by 23,952 metric tons or 33.31 percent. The decrease in the crushing volume and production of sugar was mainly due to the non-availability of raw material in the adjoining area of the mill as required to continue the crushing. Due to lower production of sugar the production cost is increased considerably as the fixed overheads cost is absorbed by lower production volume. The recovery rate also declined from 10.98 percent to 10.20 percent during the current year due to poor condition of crop. The decrease in the recovery rate has also enhanced the cost of production of sugar. The condition of crops in the province was not good due to the scarcity of water through irrigation system and natural rainfall during the year also prolong heat wave season in the province.

2

ETHANOL DIVISION

During the period under consideration, the Ethanol Division produced 34,600 metric tons of ethanol as against 28,734 metric tons produced last year which is higher than produced in the same period of last year. This was due to the timely procurement of raw material. The sales revenue of the ethanol division has also increased from Rs. 8,017.206 million to Rs. 8,662.397 million due to increase in the export volume of ethanol although the price of ethanol declined in the international market. The company exported 33,396 metric tons as against 29,272 metric tons exported last year. It is anticipated that the production during the remaining period of the year would be maintained as compared to the previous year INSHA ALLAH.

FUTURE OUTLOOK

The future outlook is still uncertain due to global as well as internal challenges. Globally major economies going toward recessionary trends, lower demands, supply chain disruption are still major factors. The Company's management is well aware of the internal and global challenges and taking all necessary measures to reduce the negative impacts and improve the contribution of ethanol and sugar divisions towards the overall performance of the company.

SUBSEQUENT EVENT AND DIVIDEND

The Board of Directors in their meeting held on May 26, 2025 has declared an interim cash dividend of Rs. 7.00 per share i.e. 70% for the period ended March 31, 2025. These condensed interim financial statements do not include the effect of interim dividend.

BOARD OF DIRECTORS

The tenure of current Board of Directors ended on March 29, 2025 and the following persons have been elected as Directors on the Board by the shareholders in the Extra Ordinary General Meeting held on March 25th 2025 for another period of three years.

1. Mr. Noor Muhammad Zakaria Non-Executive Director

2. Mr. Zia Zakaria Executive Director

3. Mrs. Sanobar Hamid Zakaria Woman Director

4. Mr. Asad Ahmed Mohiuddin Executive Director

5. Mr. Zainuddin Non-Executive Director

6. Mr. Rumi Moiz Independent Director

7. Mr. Shaikh Asim Rafiq Independent Director

May Allah SWT grant His Blessing and Rehmat for the continued success and growth of Shahmurad Sugar Mills Limited. (Ameen)

ZIA ZAKARIA

Managing Director & CEO

Karachi:

Dated: May 26, 2025

ASAD AHMED MOHIUDDIN

Director

3

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS AT MARCH 31, 2025

Un-audited March 2025

Audited

September 2024

ASSETS

NON CURRENT ASSETS

Note

(Rupees in thousand)

Property, plant and equipment 4

Intangible asset 5

Long term investment in associate 6

Long term loans to employees Long term deposits

CURRENT ASSETS

Stores, spare parts and loose tools Stock-in-trade

Trade debts

Loans and advances

Trade deposits and short term prepayments Other receivables

Short term investment Cash and bank balances

EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES

Authorised Capital

25,000,000 ordinary shares of Rs. 10 each

10,770,737

12,153,122

-27,435,760

3,203,883

250,000

211,187

80,000

7,845,748

(1,991)

3,943,811

12,078,755

16,896,895

27,435,760

10,532,722

-1,208

1,277

3,658

10,538,865

-1,208

1,428

3,149

10,776,522

11,058,974

21,835,496

250,000

Issued, subscribed and paid-up capital Revenue reserve

General reserve Unappropriated profit

Share of associate's unrealized loss on re-measurement of

its investment at fair value through other comprehensive income Capital reserve

Revaluation surplus on property, plant and equipment

NON CURRENT LIABILITIES

Long term financing Deferred taxation

CURRENT LIABILITIES

Trade and other payables Accrued finance cost Short term borrowings Unclaimed dividend

Current portion of long term financing Income tax provision-net of payments

CONTINGENCIES AND COMMITMENTS 7

211,187

80,000

7,392,922

(1,991)

4,038,379

11,720,497

2,976,895

7,138,104

-21,835,496

The annexed notes from 1 to 17 form an integral part of these condensed interim financial statements.

ZIA ZAKARIA

Managing Director & CEO

ASAD AHMED MOHIUDDIN

DIRECTOR

ZAID ZAKARIA

Chief Financial Officer

5

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED) FOR THE HALF YEAR ENDED MARCH 31, 2025

Restated Restated

Note

Sales

Cost of sales 8

Gross profit

Profit from trading activities

Distribution cost Administrative expenses Other expenses

Operating profit Other income

Finance cost

Profit /(loss) before levies and income tax

Levy -minimum tax

Profit before /(loss) income tax Taxation

• Current

• Deferred

Profit /(loss) for the period Earning / (loss) per share

- Basic and diluted - Rupees

-------------- (Rupees in thousand) --------------

3,937,506

(3,908,635)

28,871

889

29,760

(122,761)

(93,001)

61,483

(31,518)

(539,964)

(571,482)

8,063 (563,419)

21,950

(541,469)

(25.64)

The annexed notes from 1 to 17 form an integral part of these condensed interim financial statements.

ZIA ZAKARIA

Managing Director & CEO

ASAD AHMED MOHIUDDIN

DIRECTOR

ZAID ZAKARIA

Chief Financial Officer

6

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

-------------- (Rupees in thousand) --------------

The annexed notes from 1 to 17 form an integral part of these condensed interim financial statements.

ZIA ZAKARIA

Managing Director & CEO

ASAD AHMED MOHIUDDIN

DIRECTOR

ZAID ZAKARIA

Chief Financial Officer

7

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

(Rupees in thousand)

Balances as at October 01, 2023 (Audited) During the half year ended March 31, 2024 Transactions with owners

Final Dividend for 30-September-2023 @ Rs. 20.00 Per Share

Total Comprehensive income for the half year ended March 31, 2024

The annexed notes from 1 to 17 form an integral part of these condensed interim financial statements.

ZIA ZAKARIA

Managing Director & CEO

ASAD AHMED MOHIUDDIN

DIRECTOR

ZAID ZAKARIA

Chief Financial Officer

8

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

March

2025

March

2024

1. CASH FLOWS FROM OPERATING ACTIVITIES

   Profit before income tax and levies Adjustment for :

   Depreciation on property,plant and equipment Gain on disposal of property, plant and equipment Finance cost

   (Rupees in thousand)

   608,697

   1,043,663

   1,652,360

   (12,872,041)

   (169,142)

   (11,388,823)

   (616,344)

   (12,005,167)

   (295,756)

   7,625,168

   (4,675,755)

   5,069,470

   393,715

   473,541

   24,277

   (104,103)

   393,715

   (89,112)

   (8,032)

   8,142,372

   (420,060)

833,802

662,357

1,496,159

(8,655,283)

719,630

(6,439,494)

(623,571)

(7,063,065)

(33,196)

4,323,130

(2,773,131)

3,567,537

794,406

794,004

23,763

(23,361)

794,406

Decrease /(increase) in current assets Stores, spare parts and loose tools Stock in trade

Trade debts

Loans and advances

Trade deposits and short term prepayments Other receivables

(Decrease) / increase in current liabilities

Trade and other payables

Decrease/ (increase) in long term loan to employees (Increase) in long term deposits

Levies and income tax paid Finance cost paid

Net cash (outflows) from operating activities

1. CASH FLOWS FROM INVESTING ACTIVITIES

   Additions in property, plant and equipment

   Sale proceeds from disposal of property, plant and equipment

   Net cash (outflows) from investing activities

2. CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of long term financing Loan repaid to related parties Short term borrowings - net Dividend paid

Net cash inflows from financing activities

Net (decrease) in cash and cash equivalent (A+B+C) Cash and cash equivalent at the beginning of the period Cash and cash equivalent at the end of the period

Cash and cash equivalent comprise:

• Cash and bank balances

• Short term investment

• Short term borrowings - running finance

The annexed notes from 1 to 16 form an integral part of these condensed interim financial statements.

ZIA ZAKARIA

Managing Director & CEO

ASAD AHMED MOHIUDDIN

DIRECTOR

ZAID ZAKARIA

Chief Financial Officer

9

NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE HALF YEAR ENDED MARCH 31, 2025

1. THE COMPANY AND ITS OPERATIONS

   The Company was incorporated in Pakistan as a public limited company on April 9, 1979. Its shares are quoted at the Pakistan Stock Exchange Limited. The registered office of the Company is located at 96-A, Sindhi Muslim Cooperative Housing Society, Karachi, Sindh. The Company owns and operates Sugar and Ethanol manufacturing units which are located at Jhoke Sharif, District Sujawal in the province of Sindh. The total area of industry land which includes the main factory is spread over 333.32 Acres.

2. BASIS OF PREPARATION

   1. 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 as applicable in Pakistan for interim financial reporting 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; and

      • Provisions of and directives issued under the Companies Act, 2017.

        Where the 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.

   2. The condensed interim financial statements does not include all the information and disclosures 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.

   3. These condensed Interim financial statements comprise the condensed interim statement of financial position as at March 31, 2024 and the condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and the condensed interim statement of cash flows together with notes forming part thereof for the half year then ended which have been subjected to review and are not audited. This also includes the condensed interim statement of profit or loss and the condensed interim statement of comprehensive income for the quarter ended March 31, 2025. The comparative statement of financial position presented in these condensed interim financial statements has been extracted from the audited financial statements of the Company for the year ended September 30, 2024, whereas the comparative condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows figures have been extracted from the unaudited condensed interim financial statements for the half year ended March 31, 2024.

      10

      
      
      

   4. The figures of the condensed interim statement of profit or loss and the condensed interim statement of comprehensive income for the quarter ended March 31, 2025 and 2024 are not subject to review by the auditor.

3. MATERIAL ACCOUNTING POLICY INFORMATION

   1. The material accounting policies and methods of computation followed for the preparation of these condensed interim financial statements are consistent with those followed in the preparation of the Company's annual financial statements for the year ended September 30, 2024.

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

   3. Certain new IFRSs and amendments to existing IFRSs, effective for periods beginning on or after October 01, 2024 are either not relevant or do not have material impact on the condensed interim financial statements, and are therefore not disclosed.

   4. The preparation of these condensed interim financial statements require management to make estimates, assumptions and use judgements that affect the application of policies and reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgements are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Judgements and estimates made by the management in the preparation of these condensed interim financial statements are the same as those that were applied to financial statements as at and for the year ended September 30, 2024.

   5. The Institute of Chartered Accountant of Pakistan (ICAP) has withdrawn the Technical Release 27 "IAS 12, Income Taxes (Revised 2012)" and issued guidance - "IAS 12 Application Guidance on Accounting for Minimum Taxes and Final Taxes". The said guidance requires certain amounts of tax paid under minimum tax (which is not adjustable against future income tax liability) and final tax regime to be shown separately as a levy instead of showing it in current tax.

Accordingly, the impact has been incorporated in these condensed interim financial statements retrospectively in accordance with the requirement of International Accounting Standard (IAS 8) - 'Accounting Policies, Change in Accounting Estimates and Errors'. There has been no effect on the condensed interim statement of financial position, condensed interim the statement of changes in equity, condensed interim the statement of cash flows and earning per share as a result of this change.

11

------------------------------------ Rs'000' ------------------------------------

Un-Audited March 31,

2025

Audited September 30,

2024

12

Un-Audited March 31,

2025

Audited September 30,

2024

4.2 Capital work in progress Opening balance

Additions during the period / year

Civil works

Plant and machinery

Capitalization during the period/year

Civil works

Plant and machinery

Closing balance

1. INTANGIBLE ASSET

   (Rupees in thousand)

   91,111

   2,245 26,652

   28,897

   - (87,603)

   (87,603)

   32,405

   54,073

   385,049

143,525

439,122

(491,536)

91,111

The cost of software of Rs. 5.917 million has already been fully amortised over a period of three years in accordance with the Company's accounting policy. However the software is still in use of the Company.

1. LONG TERM INVESTMENT IN ASSOCIATE

   The Company holds 14.285% (September 2024: 14.285%) interest in Al-Noor Modaraba Management (Pvt) Limited and this is carried under equity method. Since the financial statements of Al Noor Modaraba Management (Pvt) Limited are not prepared except on year ended June 30; and also are not material hence no effect of results of Al-Noor Modaraba Management (Pvt) Limited has been taken in these condensed interim financial statements.

2. CONTINGENCIES AND COMMITMENTS

   1. Contingencies

      There is no change in contingencies as reported in note 26(a) of the audited financial statements of the Company for the year ended September 30, 2024.

      Un-Audited March 31,

      2025

      Audited September 30,

      2024

   2. Commitments

      • Commitments for stores and spares

        Bank Guarantees

      • in favor of Excise and Taxation Department

      • in favor of Nazir of High Court of Sindh in the pending matter of levy of Super Tax (secured against lien over term deposits)

        (Rupees in thousand)

        - -

        500 23,763

        24,263

        31,241

        31,241

        500

        23,763

        24,263

        13

        
        
        

        January to March

        2025 2024

        For the Quarter

        October to March

        2025 2024

        For the half year

        (Rupees in thousand)

3. COST OF SALES

   Opening stock of finished goods Cost of goods manufactured

   Closing stock of finished goods (Note 8.1) Export and related expenses

   3,015,849

   14,425,296

17,441,145

(8,288,716) 9,152,429

403,541

9,555,970

11,963,835

(8,288,716) 3,675,119

233,516

3,908,635

1. 1. Finished goods costing Rs. 466.819 million (March 2024:Rs. 211.027) have been written down to their net realiazable value of Rs. 383.849 million (March 2024: Rs. 154.204). At period end stock pledged against short term borrowings amounted to Rs. 2,055 million (March 2024 :Rs. 4,342 million).

2. TAXATION

   Provision for levy and income tax is made on the basis of minimum ,final taxation and super tax on taxable income.

3. WORKERS PROFIT PARTICIPATION FUND, WORKERS WELFARE FUND AND TAXATION

   Allocation to the Worker's Profit Participation Fund, Worker's Welfare Fund and provision for taxation are provisional. Final liability would be determined on the basis of annual results.

4. TRANSACTION WITH RELATED PARTIES

   Related parties comprises of associated entities, staff retirement funds, directors and key management personnel. The transactions with and balances of related parties during the period/as at period end are given below:

   Transactions:

   March 31,

   2025

   March 31,

   2024

   Relationship with the Company Nature of Transactions

   (Rupees in thousand)

   	Associates
   	Al-Noor Sugar Mills Limited	-Purchase of Goods	940,629	1,141,439
   		-Sales of Goods	4,968	10,925
   	Al-Noor Sugar Mills Limited	-Dividend paid	-	65,996
   	Reliance Insurance Company Limited	-Insurance premium	34,063	31,642
   	Related Parties - Directors and their family members	-Loan repayment	-	8,032
   	Other related parties Directors' and key management personnel	-Directors remuneration	19,732	19,343
   		-Executive remuneration	42,040	38,445
   		-Non-executive directors' meeting fee	350	400
   	Staff provident fund	-Company's Contribution during the period	6,682	6,267
   14

   
   
   

   March 31, September 30,

   Balances:

   2025

   2024

   Relationship with the Company Nature of Transactions

   (Rupees in thousand)

   Associates Al-Noor Sugar Mills Limited	Trade and other payables	37,772	-
   	Trade debts	16,787	10,925
   Reliance Insurance Company Limited	Trade and other payables - Premium	24,249	-
   Staff provident fund	Trade and other payables - Contribution payable	2,820	1,661

5. RELATIONSHIP WITH THE ISLAMIC AND CONVENTIONAL FINANCIAL INSTITUTION

   The Company in the normal course of business deals with Islamic financial institutions as well as the financial institutions who operate both the conventional side and Islamic window. The detailed segregation between Shariah complaints and conventional assets/liabilities and income/expenditure are given below:

   As at March 31, 2025 (Un-audited)
   Rupees in thousand
   Islamic Mode	Conventional	Total

   As at September 30, 2024 (Audited)
   Rupees in thousand
   Islamic Mode	Conventional	Total

   Long term financing-Musharka
   and other finances	-		221,319		221,319		-		260,431		260,431
   Current portion of long term finance	-		78,223		78,223		-		78,223		78,223
   	-		299,542		299,542		-		338,654		338,654
   Accrued finance cost	65,022		97,640		162,662		97,737		40,941		138,678
   Short term borrowings	7,012,244		2,881,362		9,893,606		2,850,000		2,725,592		5,575,592
   Short term investment	(23,763)		-		(23,763)		(2,824,317)		-		(2,824,317)
   Cash at banks	(486,101)		(307,903)		(794,004)		(721,460)		(89,352)		(810,812)
   	6,567,402		2,970,641		9,538,043		(598,040)		3,015,835		2,417,795

   Half year ended March 31, 2025 (Un-audited)
   Rupees in thousand
   Islamic Mode	Conventional	Total

   Half year ended March 31, 2024 (Un-audited)
   Rupees in thousand
   Islamic Mode	Conventional	Total

   Finance cost Profit from PLS bank account and short term investment		478,843 (370,249)		289,051 (39)		767,894 (370,288)
   		108,594		289,012		397,606

   226,846 164,300 (168,085) (37)		391,146 (168,122)
   58,761	164,263	223,024

   15

   
   
   

6. SEGMENT INFORMATION

   The Company's operating businesses are organized and managed separately according to the nature of products produced with each segment representing a strategic business unit that offer different products and serves different markets. The sugar segment is engaged in manufacturing and sale of the sugar and its by products whereas ethanol segment is engaged in manufacturing and sale of ethanol. The following tables represents revenue and profit information regarding business segment for the half year ended March 31, 2025 and March 31, 2024 and assets and liabilities information regarding business segments as at March 31, 2025 and September 30, 2024.

   Half year ended March 31,

   2025 2024

REVENUE

External Sales

Inter segment transfer Total

RESULTS

Profit from operation Profit from trading activity

Other expenses Other income Finance cost

Profit before levy and income tax Levy -minimum tax

Profit before income tax Current tax

Deferred tax

Profit for the period

(Rupees in thousand)

SEGMENT ASSETS AND LIABILITIES

(Un-Audited)

(Audited)

16

OTHER INFORMATION

Additions to property, plant and equipment

Depreciation

114,824

96,578

181,878

179,672

296,702

276,250

Revenue from major customers

During the period external sales to major customers amounted to Rs. 4,685 million. (2024: Rs. 5,925 million)

Geographical information

All non-current assets of the Company are located in Pakistan. Company's local external sales represent sales to various external customers in Pakistan as well as outside Pakistan as follows:

-------- (Rupees in thousand) --------

1. FAIR VALUES

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly observable or estimated using another valuation technique.

The Company while assessing fair values uses calculation techniques that are appropriate in the circumstances using relevant observable data as far as possible and minimizing the use of unobservable inputs. Fair values are categorized into following three levels based on the input used in the valuation techniques:

• Level 1: Quoted prices in active markets for identical assets or liabilities that can be assessed at measurement.

• Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices)

• Level 3: Inputs are unobservable inputs for the asset or liability. Inputs for the asset or liability that are not based on observation market data (that is, unobservable inputs).

Financial assets and liabilities of the Company are either short term in nature or are repriced periodically therefore; their carrying amounts approximate their fair values.

1. NON ADJUSTING EVENT AFTER REPORTING DATE

   The Board of Director approved the interim Cash Dividend at the rate of Rs.7 per share for the period ended March 31, 2025 in their meeting held on May 26, 2025.

2. AUTHORIZATION

   These condensed interim financial statements were authorized for issue on May 26, 2025 by the Board of Directors of the Company.

3. GENERAL

Figures have been rounded off nearest to thousand rupees.

ZIA ZAKARIA

Managing Director & CEO

ASAD AHMED MOHIUDDIN

DIRECTOR

ZAID ZAKARIA

Chief Financial Officer

18

7.00

70

2025 26

2025 26

19