UNAUDITED
HALF YEARLY FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 31, 2024
SASM
COMPANY PROFILE
DIRECTORS | Mr. Deoo Mal Essarani | Chairman |
Dr. Tara Chand Essarani | Chief Executive | |
Mr. Mahesh Kumar | Director | |
Mr. Dileep Kumar | Director | |
Mr. Pehlaj Rai | Director | |
Mr. Mohan Lal | Director | |
Dr. Besham Kumar | Director | |
Mr. Muhammad Siddiq Khokhar | Independent Director | |
Mr. Zafar Ahmed Ghori | Independent Director | |
Ms. Maheshwari Osha | Independent Director | |
CHIEF FINANCIAL OFFICER | Mr. Saqib Ghaffar | |
COMPANY SECRETARY | Mr. Aziz Ahmed | |
BANKERS | Allied Bank Limited | |
Askari Bank Limited | ||
Bank Al-Falah Limited | ||
MCB Bank Limited | ||
Bank AL Habib Limited | ||
United Bank Limited | ||
Meezan Bank Limited | ||
HBL Bank Limited | ||
Dubai Islamic Bank Pakistan Limited | ||
AUDIT COMMITTEE | Mr. Zafar Ahmed Ghori | Chairman |
Mr. Pehlaj Rai | Member | |
Mr. Dileep Kumar | Member | |
Dr. Besham Kumar | Member | |
HR AND REMUNERATION | Ms. Maheshwari Osha | Chairman |
COMMITTEE | Mr. Mohan Lal | Member |
Mr. Dileep Kumar | Member | |
AUDITORS | M/s. Rahman Sarfaraz Rahim Iqbal Rafiq | |
Chartered Accountants | ||
REGISTERED OFFICE | 209, 2nd Floor, Progressive Plaza, Beaumont Road, | |
Karachi-Pakistan. | ||
MILLS | Deh: Deenpur, | |
Taluka. Bulri Shah Karim, | ||
Distt. Tando Muhammad Khan, | ||
Sindh-73024. | ||
REGISTRAR | JWAFFS Registrar Services (Pvt) Ltd. | |
407- 408, Al Ameera Centre, | ||
Shahrah e Iraq, Saddar, Karachi. | ||
EMAIL ADDRESS | sasm@unitedgroup.org.pk |
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DIRECTORS' REPORT
Dear Members
Assalam o-alaikum,
On behalf of the Board of Directors, we are pleased to place before you the un- audited Condensed Interim Financial Statements of the company for the six months ended on March 31, 2024 together with the auditors' review report thereon;
Operational Results: | |||
2023-24 | 2022-23 | ||
Complete Season | Complete Season | ||
Crushing Commenced | 30.11.2023 | 29.11.2022 | |
Crushing Ended | 24.02.2024 | 03.03.2023 | |
Days Worked (Gross) | - Days | 87 | 95 |
Sugarcane crushed | - Tons | 521,657 | 485,128 |
Net crushing days | - Days | 85 | 84 |
Daily average crushing | - Gross days | 5,996 | 5,107 |
Daily average crushing | - Net days | 6,137 | 5,775 |
Capacity utilization | - % | 77 | 72 |
Sugar produced | - Tons | 56,855 | 51,529 |
Sugar recovery | - % | 10.9 | 10.63 |
Molasses produced | - Tons | 23,320 | 22,574 |
Molasses % Cane | - % | 4.47 | 4.66 |
Crushing of Sugarcane commenced on 30th November, 2023 and mills remained in operation for 87 days as compared to 95 days in the corresponding season. Despite, all-time high Sugarcane prices and reduced number of operating days, crushing of Sugarcane has increased by 7.52% to 521,657 M.T compared to 485,128 M.T in the last season. The Sugar extracted is 56,855 M.T compared to 51,529 M.T during the last season at a recovery of 10.90% compared to 10.63% in the previous season.
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Financial Results | ||
March 31st, | March 31st, | |
2023-24 | 2022-23 | |
Rupees | Rupees | |
Profit before tax | 125,806,868 | 76,236,715 |
Taxation net | (33,321,237) | (13,745,062) |
Profit after taxation | 92,485,631 | 62,491,653 |
Incremental depreciation | ||
transferred from surplus | 59,347,884 | 40,759,457 |
on revaluation of fixed assets - | ||
net of deferred tax. | ||
Final Dividend 20% paid for the year 2023 | (20,850,000) | - |
Accumulated Profit/(Loss) brought forward | 285,152,719 | (170,155,080) |
Accumulated Profit/(Loss) carried forward | 416,136,234 | (66,903,970) |
Earnings per share | 8.87 | 5.99 |
The net sales swelled to 2.25 billion compared to 1.79 billion in the corresponding period attributed to increase in selling price of Sugar with gross profit achieved at
343.97 million compared to Rs. 225 million in the comparable period. The selling price of sugar was depressed during the period under review and remained below cost of sugar produced. The profit earned during the period mainly resulted from the sale of carried over stock of last year.
The financial cost remained a constant thorn for the company during the period under review amounting to Rs.245.95 million compared to Rs. 148.83 million in the corresponding period showing an increase of 65%. The earning per share stood at Rs. 8.87 as against the corresponding period of Rs.5.99.
Future Outlook:
The production cost of sugar has swelled by more than 50% compared to last year due to increase in sugarcane support by 41% whereas on the other hand price of sugar has also surged in the market, but not in line with the increase in the production cost. The off take of sugar in the local market has slowdown in spite of being sold below production cost. As we foresee adequate stock of sugar will remain available in the country after meeting consumption, the government should ponder to allow export of some quantity to provide support to ailing industry in meeting its cash flow requirements and save it from potential losses as well.
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The SBP has raised the discount rate to 22% in an effort to curb inflation which was hovering above 35% and is now calm down below 20%. The industry is now expecting from the SBP to take immediate decision to gradually reduce the discount rate to allow the industry to improve its profitability since almost all of the profit is eaten up by the financial cost. The company is cognizant of the adverse impact of unabating increase in the production cost of sugar and is making all-out effort to mitigate its adverse impact by productivity and austerity measures across the board.
Acknowledgement:
The board wishes to appreciate the efforts and dedication of all its employees who worked with full devotion during the crushing season to attain the desired results to overcome the challenges faced by the company. The board also places on record appreciation and thanks to the bankers, growers and shareholders for their continued support cooperation and confidence reposed on us. Let's pray together to Almighty ALLAH for the success and betterment of the company in a dire economic crises faced by the country.
______________ | ______________ |
Tara Chand | Mahesh Kumar |
Chief Executive | Director |
Date: 23rd May, 2024
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INDEPENDENT AUDITORS' REVIEW REPORT
To The Members of Sindh Abadgar's Sugar Mills Limited Report on review of Interim Financial Statements
Introduction
We have reviewed the accompanying condensed interim statement of financial position of Sindh Abadgar's Sugar Mills Limited ("the Company") as at March 31, 2024 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 and notes to the financial statements for the six-month period then ended (here-in-after referred to as the "interim financial statements"). Management is responsible for the preparation and presentation of these interim financial statements in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these financial statements based on our review.
Scope of review
We conducted our review in accordance with the 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 than an audit conducted in accordance with the International Standards on Auditing and, consequently, 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.
As per the terms of our engagement, we were only required to review the cumulative figures for the six-month period ended March 31, 2024. Accordingly, we have not reviewed the figures in the condensed interim statement of profit or loss and the condensed interim statement of comprehensive income for the three-month period ended March 31, 2024.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.
The engagement partner on the review resulting in this independent auditors' review report is Mr. Muhammad Rafiq Dosani.
RAHMAN SARFARAZ RAHIM IQBAL RAFIQ
Chartered Accountants
Karachi | |
Date: 23/05/2024 | |
UDIN: RR20241021BMLkxwV07 | 8 |
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CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
EQUITY AND LIABILITIES
Share capital and reserves Authorised capital
AS AT MARCH 31, 2024
Un-audited
March 31,
2024
Note Rupees
650,000,000
Audited
September 30,
2023
Rupees
650,000,000
Issued, subscribed and paid-up capital
Capital reserve
Surplus on revaluation of property, plant and equipment - net
Revenue reserve
Unappropriated profits
Subordinated loans | |
Non-current liabilities | |
Long term finance - secured | |
Deferred liabilities | |
Current liabilities | |
Trade and other payables | 3 |
Short term borrowings | 4 |
Unclaimed dividend | |
Accrued mark-up | 5 |
Taxation - net | |
Current maturity of long term finance | |
Contingencies and commitments | 6 |
Total equity and liabilies | |
ASSETS | |
Non current assets | |
Property, plant and equipment | 7 |
Long term loans | |
Long term deposits | |
Current assets | |
Stores and spares - net | |
Stock in trade | 8 |
Trade debts - unsecured | 9 |
Loans, advances and deposit - unsecured | 10 |
Other receivables | |
Short term investment - national saving certificate | |
Cash and bank balances |
Total assets
104,250,000
1,612,026,619
416,136,234
2,132,412,853
480,000,000
2,612,412,853
20,833,334
913,032,654
933,865,988
2,052,239,741
4,133,552,279
13,001,501
204,680,568
18,464,364
83,333,333
6,505,271,786
10,051,550,627
2,959,166,163
1,897,619
792,527
2,961,856,309
82,564,517
5,218,298,884
1,360,766,751
140,056,535
95,195,025
100,000
192,712,606
7,089,694,318
10,051,550,627
104,250,000
1,671,374,503
285,152,719
2,060,777,222
480,000,000
2,540,777,222
62,500,001
922,003,350
984,503,351
698,708,422
-
6,491,122
23,779,230
52,409,979
83,333,333
864,722,086
4,390,002,659
3,015,168,720
1,918,328
792,527
3,017,879,575
66,441,067
842,119,799
121,571
241,278,063
76,419,802
-
145,742,782
1,372,123,084
4,390,002,659
The annexed notes from 1 to 21 form an integral part of these condensed interim financial statements.
DR. TARA CHAND | MAHESH KUMAR | SAQIB GHAFFAR |
Chief Executive | Director | CFO |
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