SHAHMURAD SUGAR MILLS LIMITED
1st Quarterly Results for the period
1st October, 2024 to 31st December, 2024
MR. RUMI MOIZ | |
MR. SHEIKH ASIM RAFIQ | |
MR. RUMI MOIZ | |
MR. RUMI MOIZ | |
www.shahmuradsugar.co | |
REGISTRAR & SHARES REGISTRATION OFFICE | FACTORY |
C & K Management Associates (Pvt) Ltd. | Jhok Sharif, |
M-13, Progressive Plaza, Civil Lines Quarter | Taluka Mirpur Bathoro, |
Near P.I.D.C, Beaumount Road, | District Sujawal (Sindh) |
Karachi - 75530 |
DIRECTORS' REPORT
Dear members Asslamu-o-Alaikum
On behalf of the Board, I take the opportunity to place before you with great pleasure the un-audited financial statements of your Company for the first quarter ended December 31st 2024. Segment- wise position is briefed as under:
SUGAR DIVISION
The Mill commenced crushing of sugarcane on November 21, 2024 and up to December 31, 2024 the Mill crushed 68,677 metric tons of sugarcane as against 174,720 metric tons crushed during the same period last year. The production of sugar was 5,440 metric tons as against 15,815 metric tons produced last year. The recovery percentage is 10.06 percent as against 10.41 percent achieved last year. The recovery percentage cannot be considered as representative as the volume of crushing is very low. It is anticipated that sugar production and the volume of crushing will be lower than last year due to the prolonged severe summer and a shortage of irrigation water during the crop's growth period, which adversely affected the harvest in the region.
ETHANOL DIVISION
During the period under consideration, the production of ethanol division was 14,867 metric tons as against 12,651 metric tons produced in the same period of last year. The production has increased compared to the same period last year due to the availability of an opening stock of raw materials. The demand for ethanol is lower compared to last year due to the ongoing recessionary trends worldwide. Additionally, the conflict in the Middle East has disrupted supply chain operations for the product. In response, the management is actively exploring various opportunities to develop new geographical markets to ensure timely exports and secure better pricing.
The Board of Directors also wish to place on record their appreciation to the dedicated work and commitment of all officers, employees and workers who contributed their services to sustain all operations of the company.
For & on behalf of the Board of Directors
ZIA ZAKARIA | A. AZIZ AYOOB |
Managing Director & CEO | Director |
Date: January 27, 2025
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CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)
AS AT DECEMBER 31, 2024 | Un-Audited | Audited | |
December | September | ||
2024 | 2024 | ||
Note | (Rupees in thousand) | ||
ASSETS | |||
NON CURRENT ASSETS | |||
Property, plant and equipment | 4 | 10,683,388 | 10,770,737 |
Long term investment in associate under equity methold | 1,208 | 1,208 | |
Long term loans | 1,606 | 1,428 | |
Long term deposits | 3,657 | 3,149 | |
10,689,859 | 10,776,522 | ||
CURRENT ASSETS | |||
Stores, spare parts and loose tools | 455,627 | 514,016 | |
Stock-in-trade | 2,676,297 | 5,443,492 | |
Trade debts | 1,031,760 | 778,139 | |
Loans and advances | 3,967,561 | 611,516 | |
Trade deposits and short term prepayments | 20,468 | 2,090 | |
Other receivables | 16,192 | 74,592 | |
Short term investment | 2,305,173 | 2,824,317 | |
Cash and bank balances | 1,281,927 | 810,812 | |
11,755,005 | 11,058,974 | ||
22,444,864 | 21,835,496 | ||
EQUITY AND LIABILITIES | |||
SHARE CAPITAL AND RESERVES | |||
Authorised Capital | |||
25,000,000 ordinary shares of Rs. 10 each | 250,000 | 250,000 | |
Issued, subscribed and paid-up capital | 211,187 | 211,187 | |
Revenue reserve | |||
General reserve | 80,000 | 80,000 | |
Share of associate's unrealized loss on remeasurement of investment | (1,991) | (1,991) | |
Unappropriated Profit | 7,582,907 | 7,392,922 | |
Capital reserve | |||
Revaluation surplus on property, plant and equipment | 3,991,095 | 4,038,379 | |
11,863,198 | 11,720,497 | ||
NON CURRENT LIABILITIES | |||
Long term financing | 247,067 | 260,431 | |
Deferred taxation | 2,689,849 | 2,716,464 | |
2,936,916 | 2,976,895 | ||
CURRENT LIABILITIES | |||
Trade and other payables | 1,253,923 | 1,259,930 | |
Accrued finance cost | 85,928 | 138,678 | |
Short term borrowings | 6,189,390 | 5,575,592 | |
Unclaimed dividend | 24,288 | 24,288 | |
Current portion of long term financing | 78,223 | 78,223 | |
Income tax payable - net of payments | 12,998 | 61,393 | |
7,644,750 | 7,138,104 | ||
CONTINGENCIES AND COMMITMENTS | 5 | - | - |
22,444,864 | 21,835,496 |
The annexed notes from 1 to 13 form an integral part of these condensed interim financial information.
ZIA ZAKARIA | AZIZ AYOOB | ZAID ZAKARIA |
Managing Director & CEO | Director | Chief Financial Officer |
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CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)
FOR THE PERIOD ENDED DECEMBER 31, 2024
For the three months
October to December
Restated | |||
2024 | 2023 | ||
Note | (Rupees in thousand) | ||
Sales | 5,900,615 | 6,993,409 | |
Cost of Sales | 6 | (5,469,801) | (5,647,335) |
Gross profit | 430,814 | 1,346,074 | |
Profit from trading activities | 3,701 | 1,187 | |
434,515 | 1,347,261 | ||
Distribution cost | (53,031) | (35,043) | |
Administrative expenses | (117,340) | (122,034) | |
Other operating | charges | (16,087) | (91,361) |
(186,458) | (248,438) | ||
Operating profit | 248,057 | 1,098,823 | |
Other income | 145,057 | 309,286 | |
393,114 | 1,408,109 | ||
Finance cost | (190,420) | (227,930) | |
Profit before levies and income tax | 202,694 | 1,180,179 | |
Levies | (8,120) | (165,498) | |
Profit before income tax | 194,574 | 1,014,681 | |
Income tax | (51,873) | (48,135) | |
Profit after income tax | 142,701 | 966,546 | |
Earning per share-Basic and diluted - Rupees | 6.76 | 45.77 |
The annexed notes from 1 to 13 form an integral part of these condensed interim financial information.
ZIA ZAKARIA | AZIZ AYOOB | ZAID ZAKARIA |
Managing Director & CEO | Director | Chief Financial Officer |
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CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
FOR THE PERIOD ENDED DECEMBER 31, 2024
For the three months
October to December
2024 | 2023 | |
(Rupees in thousand) | ||
Profit after taxation | 142,701 | 966,546 |
Other comprehensive income | - | - |
Total comprehensive profit for the period | 142,701 | 966,546 |
The annexed notes from 1 to 13 form an integral part of these condensed interim financial information.
ZIA ZAKARIA | AZIZ AYOOB | ZAID ZAKARIA |
Managing Director & CEO | Director | Chief Financial Officer |
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CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
FOR THE THREE MONTHS PERIOD ENDED DECEMBER 31, 2024
Issued,
subscribed &
paid up
capital
Balances as at October 1, 2023 (Audited) | 211,187 |
During the period ended December 31, 2023 | |
Total Comprehensive Income for the period | |
ended December 31, 2023 | |
Profit after taxation | - |
Other comprehensive income | |
Transfer from surplus on revaluation of | |
property, plant and equipment on account | |
of incremental depreciation -net of | |
deferred tax | - |
- | |
Balances at December 31, 2023 | 211,187 |
Balances as at October 1, 2024 (Audited) | 211,187 |
During the period ended December 31, 2024 | |
Total Comprehensive Income for the period | |
ended December 31, 2024 | |
Profit after taxation | - |
Other comprehensive income | |
Transfer from surplus on revaluation of | |
property, plant and equipment on account | |
of incremental depreciation -net of | |
deferred tax | - |
Revenue Reserves | Capital Reserve | |||||||||
Share of | Revaluation | |||||||||
Associate's | ||||||||||
Un- | surplus on | Total | ||||||||
General | unrealised | |||||||||
appropriated | property, plant | |||||||||
reserve | (loss)/gain on | profit | and | |||||||
remeasurement of | ||||||||||
investment | equipment | |||||||||
----------------- (Rupees in thousand) ----------------- | ||||||||||
80,000 | (2,268) | 7,563,144 | 5,966,455 | 13,818,518 | ||||||
- | - | 966,546 | - | 966,546 | ||||||
- | - | 72,330 | (72,330) | - | ||||||
- | - | 1,038,876 | (72,330) | 966,546 | ||||||
80,000 | (2,268) | 8,602,020 | 5,894,125 | 14,785,064 | ||||||
80,000 | (1,991) | 7,392,922 | 4,038,379 | 11,720,497 | ||||||
- | - | 142,701 | - | 142,701 | ||||||
- | - | 47,284 | (47,284) | - | ||||||
- | - | - | 189,985 | (47,284) | 142,701 | ||||||
Balances at December 31, 2024 | 211,187 | 80,000 | (1,991) | 7,582,907 | 3,991,095 | 11,863,198 | |||||
The annexed notes from 1 to 13 form an integral part of these condensed interim financial information.
ZIA ZAKARIA | AZIZ AYOOB | ZAID ZAKARIA |
Managing Director & CEO | Director | Chief Financial Officer |
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CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)
FOR THE PERIOD ENDED DECEMBER 31, 2024
December | December | ||
2024 | 2023 | ||
Note | (Rupees in thousand) | ||
A. CASH FLOW FROM OPERATING ACTIVITIES | |||
Profit before taxation | 202,694 | 1,180,179 | |
Adjustment for : | |||
Depreciation | 4.1 | 135,229 | 136,195 |
Gain on disposal of property, plant and equipment | (504) | (480) | |
Finance cost | 190,420 | 227,930 | |
325,145 | 363,645 | ||
Cash generated before working capital changes | 527,839 | 1,543,824 | |
(Increase) / decrease in current assets | |||
Stores, spare parts and loose tools | 58,389 | (66,615) | |
Stock in trade | 2,767,195 | 1,126,391 | |
Trade debts | (253,621) | 172,699 | |
Loans & advances | (3,356,045) | (3,899,751) | |
Short term prepayments | (18,378) | (25,487) | |
Other receivables | 58,400 | 42,700 | |
(744,060) | (2,650,063) | ||
Increase / (decrease) | in current liabilities | ||
Trade and other payables | (6,007) | (299,782) | |
Short term borrowings | 613,798 | 1,488,021 | |
607,791 | 1,188,239 | ||
391,570 | 82,000 | ||
(Payments)/receipts for | |||
Long term loans - net | (178) | (1,655) | |
Long term deposits | (508) | - | |
Income tax | (135,003) | (87,876) | |
Finance cost | (243,170) | (127,517) | |
(378,859) | (217,048) | ||
Net cash inflow/(outflow) from operating activities | 12,711 | (135,048) | |
B. CASH FLOW FROM INVESTING ACTIVITIES | |||
Addition in property, plant & equipment | (48,272) | (140,938) | |
Sale proceeds from disposal of property, plant and equipment | 896 | 946 | |
Net cash outflow from investing activities | (47,376) | (139,992) | |
C. CASH FLOW FROM FINANCING ACTIVITIES | |||
Repayment of long term financing | (13,364) | (13,363) | |
Repayment of loan from related parties | - | (8,032) | |
Dividend paid | - | (6) | |
Net cash (outflow) from financing activities | (13,364) | (21,401) | |
Net increase in cash and cash equivalents (A+B+C) | (48,029) | (296,441) | |
Cash and cash equivalents at the beginning of the period | 3,635,129 | 5,123,777 | |
Cash and cash equivalents at the end of period | 3,587,100 | 4,827,336 | |
Cash and cash equivalents | |||
- Short term investment | 2,305,173 | 1,038,256 | |
- Cash and bank balances | 1,281,927 | 3,789,080 | |
3,587,100 | 4,827,336 |
The annexed notes from 1 to 13 form an integral part of these condensed interim financial information.
ZIA ZAKARIA | AZIZ AYOOB | ZAID ZAKARIA |
Managing Director & CEO | Director | Chief Financial Officer |
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NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED DECEMBER 31, 2024
-
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. 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.
- Basis of Preparation
2.1 This 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 Financial Report Standards (IFRS Standards) issued by the International Accounting Standard 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 IFRS standards, the provisions of and directives issued under the Companies Act, 2017 have been followed. The condensed interim financial information 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.
- Significant accounting policies and disclosures
- The accounting policies and methods of computation followed for the preparation of this condensed interim financial information are consistent with those followed in the preparation of the company's annual financial statements for the year ended September 30, 2024.
- 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.
- Certain new IFRSs and amendments to existing IFRSs, effective for periods beginning on or after January 1, 2019, do not have any impact on the condensed interim financial information, and are therefore not disclosed.
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3.4 The preparation of this condensed interim financial statements in confirmity with approved accounting standards requires the use of certain critical accounting estimates. It also required management to exercise its judgement in the process of applying the Company's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods as appropirate. Judgements and estimates made by the management in the preparation of this 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.
Un-Audited Audited
December September
Notes 20242024
(Rupees in thousand)
4. | Property, Plant and Equipment | |||
Operating fixed assets | 4.1 | 10,544,509 | 10,679,626 | |
Capital work in progress | 4.2 | 138,879 | 91,111 | |
10,683,388 | 10,770,737 | |||
4.1 | OPERATING FIXED ASSETS | |||
Opening book value | 10,679,626 | 10,715,513 | ||
Direct additions during the period / year | ||||
Owned | ||||
Furniture, Fixture and Fittings | - | 694 | ||
Office Equipment | 504 | 6,534 | ||
Vehicle | - | 27,218 | ||
504 | 34,446 | |||
Transfer from CWIP during the period / year | ||||
Owned | ||||
Non factory building | - | 54,073 | ||
Plant and Machinery | - | 437,463 | ||
- | 491,536 | |||
Disposals - Operating assets (net book value) | (392) | (1,188) | ||
Revaluation Surplus | - | - | ||
Depreciation Charged for the period / year | (135,229) | (560,681) | ||
Closing book value | 10,544,509 | 10,679,626 |
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