UNAUDITED
HALF YEARLY FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 31, 2025
SASM
COMPANY PROFILE
DIRECTORS
Mr. Deoo Mal Essarani Dr. Tara Chand Essarani Mr. Mahesh Kumar
Mr. Dileep Kumar Mr. Pehlaj Rai Mr. Mohan Lal
Chairman
Chief Executive Director Director Director 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 Mr. Pehlaj Rai
Mr. Dileep Kumar Dr. Besham Kumar
Chairman Member Member Member
HR AND REMUNERATION Ms. Maheshwari Osha
COMMITTEE Mr. Mohan Lal Mr. Dileep Kumar
Chairman Member 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
EMAIL ADDRESS
JWAFFS Registrar Services (Pvt) Ltd.
Office # 20, 5th Floor, Arkays Square Extension, New Challi Shahrah-e-Liaquat, Karachi.
sasm@unitedgroup.org.pk
1
Operational Results: | |||
FY 2024-25 | FY 2023-24 | ||
Crushing Commenced | 21.11.2024 | 30.11.2023 | |
Crushing Ended | 23.02.2025 | 24.02.2024 | |
Days Worked (Gross) | 95 | 87 | |
Sugarcane crushed | - Tons | 405,205 | 521,657 |
Net crushing days | - Days | 74 | 85 |
Daily average crushing | - Gross days | 4,265 | 5,996 |
Daily average crushing | - Net days | 5,475 | 6,137 |
Capacity utilization | - % | 68 | 77 |
Sugar produced | - Tons | 40,445 | 56,855 |
Sugar recovery | - % | 9.98 | 10.9 |
Molasses produced | - Tons | 18,800 | 23,320 |
Molasses % Cane | - % | 4.64 | 4.47 |
SASM
DIRECTORS' REPORT
Dear Members Assalam o-alaikum,
On behalf of the Board of Directors, we are pleased to place before you the unaudited Condensed Interim Financial Statements of the company for the six months ended on March 31, 2025 together with the auditors' review report thereon;
Crushing of Sugarcane commenced on 21st November, 2024 and mills remained in operation for 95 days as compared to 87 days in the corresponding season. The Sugarcane crushed at 405,205 M.T declined by 22% compared to 521,657 in the preceding season attributed by abnormally high temperatures and below normal rainfall, altogether these conditions resulted in reduction of Sugarcane output in the country. Similarly, the Sugar extracted also significantly decreased to 40,445 M.T compared to 56,853 M.T during the last season at a recovery of 9.98% compared
to 10.9% in the previous season, which will reduce the profit of the company.
SASM
Financial Results
FY 2024-25 (Rupees) | FY 2023-24 (Rupees) | ||
Profit before tax | 102,065,924 | 125,806,868 | |
Taxation net | (24,719,719) | (33,321,237) | |
Profit after taxation Incremental depreciation transferred from surplus | 77,346,205 66,692,779 | 92,485,631 59,347,884 | |
on revaluation of fixed assets -net of deferred tax. | |||
Final Dividend 20% paid for the year 2023 | - | (20,850,000) | |
Accumulated Profit brought forward | 41,500,781 | 285,152,719 | |
Accumulated Profit carried forward | 185,539,765 | 416,136,234 | |
Earnings per share | 7.42 | 8.87 |
The net sales declined to 1.80 billion compared to 2.25 billion in the corresponding period attributed to decrease in sales volume by 29%. The selling price of sugar in local market remained the same as achieved in the corresponding period. The profit earned during the period mainly resulted from the export sales. The financial results would have been otherwise, had the export not been allowed.
The financial cost during the period under review incurred at Rs.121 million compared to Rs. 246 million in the corresponding period nose-dived by 51% resulted due to frequent decline in mark-up rate. The earning per share stood at Rs. 7.42 as against the corresponding period of Rs.8.87
Future Outlook:
The country's sugar production decreased by appropriately 15% due to below average Sugarcane yield leading to surge in the price of sugar in the local market. Since the start of the year, sugar prices have been appreciating driven by surplus Sugar export allowed by the government. This upward trend will remain continue with anticipation that the country will have no surplus sugar stock rather some import will be required if the actual consumption exceeds the estimated consumption set by the government. Resultantly, we are positive that the company will be able to make reasonable profit during the current financial year.
SASM
The SBP has reduced the discount rate to 11% in an effort to stimulate economic activities which was at one time hovering at 22% attributed to all time low inflation. This would result in potentially high economic growth in the country and lower borrowing cost which will help improve the industry's profitability since almost all of the profit was eaten up by the financial cost during the last year. The company is also 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.
Tara Chand
Chief Executive
Mahesh Kumar
Director
Date: May 23rd, 2025
SASM
125,806,868 | 102,065,924 | |
(33,321,237) | (24,719,719) | |
92,485,631 | 77,346,205 | |
59,347,884 | 66,692,779 | |
(20,850,000) | ||
285,152,719 | 41,500,781 | |
416,136,234 | 185,539,765 | |
8.87 | 7.42 |
SASM
2023-24
L
2024-25
L
SASM
7
SASM
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, 2025 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, 2025. 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, 2025.
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: May 27, 2025
UDIN: RR202510210x8D5AUKZk 8
EQUITY AND LIABILITIES Share capital and reserves Authorized capital | Note | 2025 Rupees 650,000,000 | 2024 Rupees 650,000,000 | |
Issued, subscribed and paid-up capital | 104,250,000 | 104,250,000 | ||
Capital reserves Surplus on revaluation of property, plant and equipment -net | 2,689,931,501 | 2,756,624,280 | ||
Revenue reserves Unappropriated profits | 185,539,765 | 41,500,781 | ||
2,979,721,266 | 2,902,375,061 | |||
Subordinated loans | 480,000,000 | 480,000,000 | ||
Non current liabilities | 3,459,721,266 | 3,382,375,061 | ||
Deferred liabilities | 1,175,729,738 | 1,155,610,760 | ||
Current liabilities | 1,175,729,738 | 1,155,610,760 | ||
Trade and other payables | 3 | 1,566,112,510 | 866,278,797 | |
Short term borrowings | 4 | 4,220,112,445 | 1,248,230,165 | |
Unclaimed dividend | 10,430,587 | 10,430,587 | ||
Accrued mark-up | 5 | 96,080,747 | 78,527,479 | |
Current maturity of long term finance | 20,833,335 | 62,500,001 | ||
Contingencies and commitments | 6 | 5,913,569,624 | 2,265,967,029 | |
10,549,020,628 | 6,803,952,850 | |||
ASSETS | ||||
Non current assets Property, plant and equipment | 7 | 4,444,475,538 | 4,545,824,136 | |
Long term loans | 1,499,831 | 1,240,787 | ||
Long term deposits | 792,527 | 792,527 | ||
Current assets | 4,446,767,896 | 4,547,857,450 | ||
Stores and spares - net | 125,957,013 | 104,012,715 | ||
Stock in trade | 8 | 5,065,023,756 | 1,752,797,631 | |
Trade debts - unsecured | 9 | 369,022,940 | 68,219,976 | |
Loans, advances and deposit - unsecured | 10 | 163,392,114 | 107,190,138 | |
Other receivables | 77,048,069 | 96,425,775 | ||
Taxation - net | 114,890,809 | 80,040,308 | ||
Cash and bank balances | 186,918,031 | 47,408,857 | ||
6,102,252,732 | 2,256,095,400 | |||
10,549,020,628 | 6,803,952,850 |
SASM
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT MARCH 31, 2025
Un-audited Audited March 31, September 30,
The annexed notes from 1 to 22 form an integral part of these financial statements.
DR. TARA CHAND
Chief Executive
MAHESH KUMAR
Director
SAQIB GHAFFAR
Chief Financial Officer
Note | March 31, 2025 Rupees | March 31, 2024 Rupees | March 31, 2025 Rupees | March 31, 2024 Rupees | |
Sales revenue - net 11 | 1,798,986,313 | 2,247,454,092 | 456,499,922 | 1,612,031,966 | |
Cost of sales 12 | (1,508,346,866) | (1,903,483,037) | (199,115,155) | (1,450,519,798) | |
Gross profit | 290,639,447 | 343,971,055 | 257,384,767 | 161,512,168 | |
Administrative expenses | (94,045,065) | (87,545,764) | (49,960,191) | (48,216,509) | |
Selling and distribution cost | (9,882,056) | (6,340,297) | (5,677,977) | (3,631,530) | |
Other income 13 | 79,241,607 | 134,251,873 | 73,201,443 | 99,931,281 | |
Other expenses 14 | (4,412,804) | (2,904,400) | (4,212,043) | (2,136,745) | |
(29,098,318) | 37,461,412 | 13,351,232 | 45,946,497 | ||
Operating profit | 261,541,129 | 381,432,467 | 270,735,999 | 207,458,665 | |
Finance cost 15 | (121,445,103) | (245,946,124) | (96,872,409) | (222,268,858) |
Levies | 16 | (38,030,102) | (9,679,475) | (19,788,098) | 690,986 |
Profit / (loss) before | |||||
taxation | 102,065,924 | 125,806,868 | 154,075,492 | (14,119,207) | |
Taxation-net | 17 | (24,719,719) | (33,321,237) | (39,060,943) | (22,744,718) |
SASM
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS
FOR THE HALF YEAR AND QUARTER ENDED MARCH 31, 2025 (UN-AUDITED)
Half year ended
Quarter ended
Profit / (loss) before levies and taxation
140,096,026
135,486,343
173,863,590
(14,810,193)
Profit / (loss) after t axation
77,346,205
92,485,631
115,014,549
(36,863,925)
Earnings / (loss) per share -basic and diluted
7.42
8.87
11.03
(3.54)
The annexed notes from 1 to 22 form an integral part of these financial statements.
DR. TARA CHAND
Chief Executive
MAHESH KUMAR
Director
SAQIB GHAFFAR
Chief Financial Officer
March 31, 2025 Rupees | March 31, 2024 Rupees | March 31, 2025 Rupees | March 31, 2024 Rupees | ||
Profit / (loss) after taxation | 77,346,205 | 92,485,631 | 115,014,549 | (36,863,925) | |
Other comprehensive income | - | - | - | - | |
Total comprehensive income / (loss) | |||||
for the year | 77,346,205 | 92,485,631 | 115,014,549 | (36,863,925) | |
SASM
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF YEAR AND QUARTER ENDED MARCH 31, 2025 (UN-AUDITED)
Half year ended
Quarter ended
The annexed notes from 1 to 22 form an integral part of these financial statements.
DR. TARA CHAND
Chief Executive
MAHESH KUMAR
Director
SAQIB GHAFFAR
Chief Financial Officer
(audited) | 104,250,000 | 1,671,374,503 | 285,152,719 | 480,000,000 | 2,540,777,222 |
Total comprehensive income for the half year ended March 31, 2024 | |||||
-Profit after taxation | - | - | 92,485,631 | - | 92,485,631 |
- Other comprehensive income | - | - | - | - | - |
Incremental depreciation transferred from | - | - | 92,485,631 | - | 92,485,631 |
surplus on revaluation of Property plant and equipment - net of deferred tax - | (59,347,884) | 59,347,884 | - | - | |
Final dividend @ 20% for the year ended September 30, 2023 | - | - | (20,850,000) | - | (20,850,000) |
-Profit after taxation - Other comprehensive income | - - | - 77,346,205 - - | 77,346,205 - | |
Incremental depreciation transferred from | - 77,346,205 | - 77,346,205 | ||
surplus on revaluation of Property plant | ||||
and equipment - net of deferred tax - | (66,692,779) | 66,692,779 | - | - |
Balance as at March 31, 2025 104,250,000 | 2,689,931,501 | 185,539,765 | 480,000,000 | 3,459,721,266 |
SASM
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED MARCH 31, 2025 (UN-AUDITED)
Issued, Subscribed and Paidup Capital
Capital reserve
Surplus on revaluation of property, plant and equipment
Revenue reserve
Accumulated (losses) / profit
Subordinated Loan
Total
------------------------- Rupees -------------------------
Balance as at September 30, 2022
Balance as at March 31, 2024 (Un-audited)
104,250,000 1,612,026,619 416,136,234 480,000,000 2,612,412,853
Balance as at September 30, 2024 (audited)
104,250,000 2,756,624,280
41,500,781 480,000,000 3,382,375,061
Total comprehensive income for the period ended March 31, 2025
The annexed notes from 1 to 22 form an integral part of these financial statements.
DR. TARA CHAND
Chief Executive
MAHESH KUMAR
Director
SAQIB GHAFFAR
Chief Financial Officer
Adjustments for: | ||||
- Depreciation | 121,368,875 | 78,331,844 | ||
- Provision for compensated absences | - | 3,521,417 | ||
| 121,445,103 (9,729,518) | 245,946,124 (14,403,515) | ||
233,084,460 | 313,395,870 | |||
Operating profit before working capital changes | 373,180,486 | 448,882,213 | ||
Changes in working capital | ||||
Decrease / (increase) in current assets | ||||
- Stores and spares | (21,944,298) | (16,123,450) | ||
- Stock in trade | (3,312,226,125) | (4,376,179,085) | ||
- Trade debts - unsecured | (300,802,964) | (1,360,645,180) | ||
- Short term loans and advances | (56,201,976) | 101,221,528 | ||
- Other receivables | 19,377,706 | (18,775,223) | ||
(3,671,797,657) | (5,670,501,410) | |||
Increase in current liabilities | ||||
- Trade and other payables | 698,202,050 | 1,340,330,427 | ||
Net cash used in operations | (2,600,415,121) | (3,881,288,770) | ||
Taxes paid | (65,154,291) | (76,237,548) | ||
Payments against compensated absence | (645,372) | - | ||
Workers' Welfare Fund paid | (10,050,018) | - | ||
Finance costs paid | (103,891,835) | (65,044,786) | ||
(179,741,516) | (141,282,334) | |||
Net cash used in operating activities | (2,780,156,637) | (4,022,571,104) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Capital expenditure | (20,020,277) | (22,329,287) | ||
Profit on bank deposits received Long term deposit | 9,729,518 - | 14,403,515 (100,000) | ||
Long term loans - net | (259,044) | 20,709 | ||
Net cash used in investing activities | (10,549,803) | (8,005,063) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Repayment of long term finance | (41,666,666) | (41,666,667) | ||
Pledge financing obtained - net Dividend paid | 2,570,581,199 - | 2,639,904,135 (14,339,621) | ||
Net cash generated from financing activities | 2,528,914,533 | 2,583,897,847 | ||
Net Increase in cash and cash equivalents | (261,791,907) | (1,446,678,320) | ||
Cash and cash equivalents at the beginning of the period | (427,771,104) | 145,742,782 | ||
Cash and cash equivalents at the end of the period | 21 | (689,563,011) | (1,300,935,538) | |
SASM
CONDENSED INTERIM STATEMENT OF CASH FLOWS
FOR THE HALF YEAR ENDED MARCH 31, 2025 (UN-AUDITED)
Note March 31, March 31,
2025 2024
Rupees Rupees
CASH FLOWS FROM OPERATING ACTIVITIES
Profit / (loss) before levies and taxation 140,096,026 135,486,343
The annexed notes from 1 to 22 form an integral part of these financial statements.
DR. TARA CHAND
Chief Executive
MAHESH KUMAR
Director
SAQIB GHAFFAR
Chief Financial Officer
SASM
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE HALF YEAR AND QUARTER ENDED MARCH 31, 2025 (UN-AUDITED)
THE COMPANY AND ITS OPERATIONS
Sindh Abadgar's Sugar Mills Limited ("the Company") is a public listed company incorporated in Pakistan under the Companies Ordinance, 1984, which has now been repealed with the enactment of Companies Act, 2017, on May 30, 2017. The shares of the Company are quoted on Pakistan Stock Exchange Limited. The principal business of the Company is the production and sale of white sugar.
The geographical location and address of the Company's business units, including plant are as under:
Head office: The Company's registered office is situated at 209, Progressive Plaza, Beaumont Road, Karachi, Pakistan.
Mill: The Company's plant is located at Deh Deenpur, District Tando Muhammad Khan, Sindh, Pakistan.
BASIS OF PREPARATION
Statement of compliance
These condensed interim financial statements (here-in-after referred to as the '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 34: 'Interim Financial Reporting' (IAS 34), 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.
SASM
These condensed interim financial statement do not include all the information and disclosures as 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.
Basis of measurement of items in the financial statements
In these condensed interim financial statements, all items have been measured at their historical cost except freehold land, factory building, non-factory building and plant and machinery which are stated at revalued amount less accumulated depreciation and accumulated impairment losses thereon, if any.
Functional and presentation currency
Items included in these financial statements are measured using the currency of the primary economic environment in which the Company operates. These financial statements are presented in Pak Rupees which is the Company's functional and presentation currency.
Judgements and sources of estimation uncertainty
In preparing these condensed interim financial statements, the significant judgments made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those applied in the annual financial statements of the Company for the year ended September 30, 2024.
Material accounting policies
The material accounting policies adopted in the preparation of these condensed interim financial statements are consistent with those applied in the preparation of the annual financial statements of the Company for the year ended September 30, 2024.
3. TRADE AND OTHER PAYABLES | |||
Trade Creditors: - for sugarcane | 505,645,161 | 232,853,574 | |
- for other supplies | 325,377,852 | 18,125,067 | |
Other payables: | 831,023,013 | 250,978,641 | |
Advances from customers | 582,460,392 | 413,522,535 | |
Accrued expenses | 2,529,080 | 16,954,934 | |
Sales tax payable | 122,643,704 | 152,714,179 | |
Withholding sales tax payable | 1,343,247 | 1,142,505 | |
Income tax deducted at source | 339,956 | 6,821,548 | |
Provision for compensated absences | 3,751,408 | 4,396,780 | |
Workers' Welfare Fund | 14,846,472 | 19,574,238 | |
Workers' Profit Participation Fund | 7,004,801 | - | |
Contractors' retention money | 26,437 | 26,437 | |
Others | 144,000 | 147,000 | |
1,566,112,510 | 866,278,797 | ||
4. SHORT TERM BORROWINGS - Secured | |||
Cash finance | 3,343,631,403 | 773,050,204 | |
Running finance | 876,481,042 | 475,179,961 | |
4,220,112,445 | 1,248,230,165 | ||
SASM
(Un-audited) (Audited) March 31, September 30,
2025 2024
Note Rupees Rupees
SASM
The Company has obtained a Cash Finance Facility of Rs. 3,850 million (September 30 2024: Rs. 3250 million) from various commercial bank to meet the working capital requirements. The rate of mark-up ranges from 1-Month KIBOR plus 1% to 9-Month KIBOR plus 1%. The validity of these facilities ranges from March 31, 2024 to September 30, 2025.
1st joint pari passu hypothecation charge over stocks of sugarcane and receivables of the company range from Rs. 266.67 million to Rs 400 million with 25% margin registered with SECP,
Pledge over white crystalline refined sugar with 10% margin at factory godown situated at Deh Deenpur, Taluka & District Tando Mohammad Khan, Sindh,
Personal guarantee of all the directors of the Company and
Subordinated loan agreement amounting to Rs. 480 million.
The Company has a total finance facility of Rs. 1200 million (September 30, 2024: Rs. 1500 million) from various commercial banks to meet the working capital requirements. The rate of mark-up ranges from 1-Month KIBOR plus 1% per annum to 1-Month KIBOR plus 1% per annum. The validity of these facilities ranges from March 31, 2024 to September 30, 2025.
1st joint pari passu hypothecation charge over stocks of sugarcane and receivables of the company range from Rs. 266.67 million to Rs 400 million with 25% margin registered with SECP,
Pledge over white crystalline refined sugar with 10% margin at factory godown situated at Deh Deenpur, Taluka & District Tando Mohammad Khan,
Sindh and
Personal guarantee of all the directors of the Company.
As of reporting date, the Company had unutilized facilities for short term borrowings available from various banks amounting to Rs. 887.251 million (September 30 2024: Rs. 251.77 million ).
17
SASM
ACCRUED MARK-UP
(Un-audited) March 31,
2025
Rupees
(Audited) September 30,
2024
Rupees
Mark-up accrued on:
Long term financing 645,206 3,259,384
Short term borrowings 95,435,541 75,268,095
96,080,747 78,527,479
CONTINGENCIES AND COMMITMENTS
Contingencies
There has been no change in the status of contingencies as disclosed in annual financial statements for the year ended September 30, 2024 except the below:
The Competition Commission of Pakistan (CCP), through its order dated August 13, 2021, imposed a penalty of Rs. 110.56 million on the Company for allegedly sharing information with the Pakistan Sugar Mills Association (PSMA) in connection with sugar export permissions. The Company challenged this order by filing Suit No. 2272 of 2021 before the Honorable High Court of Sindh, which initially suspended the CCP order. Subsequently, based on a Joint Statement by the parties, the Court directed that no recovery action be taken by the CCP until final disposal of the appeals pending before the Competition Appellate Tribunal (CAT) and returned the bank guarantees submitted by the Company.
As of reporting period, the matter has been transferred to the Court of the Senior Civil Judge / Assistant Sessions Judge XV, Karachi South (City Court, Karachi), for further proceedings. The Company's appeal before the CAT also remains pending. Based on the opinion of its legal counsel, the Company believes it has a strong case on merits and expects a favourable outcome. Accordingly, no provision has been recorded in respect of the penalty in the accompanying interim financial statements.
Commitments
As of the reporting date, there were no financial commitments of the Company. (September 30, 2024: None)
18
7. PROPERTY, PLANT AND EQUIPMENT | Note | Rupees | Rupees | |
Operating fixed assets | 7.1 | 4,392,010,959 | 4,493,359,557 | |
Capital spares | 52,464,579 | 52,464,579 | ||
4,444,475,538 | 4,545,824,136 | |||
7.1 Operating fixed assets | ||||
Cost / revalued amount | ||||
Opening balance | 4,614,210,799 | 5,222,336,342 | ||
Additions during the period / year | 20,020,277 | 98,435,647 | ||
Disposals during the period / year | - | (5,221,135) | ||
Revaluation during the period / year | - | (701,340,055) | ||
Accumulated depreciation | 4,634,231,076 | 4,614,210,799 | ||
Opening balance | 120,851,242 | 2,262,591,110 | ||
Charge for the period / year | 121,368,875 | 158,191,151 | ||
Disposal during the period / year | - | (4,426,647) | ||
Revaluation during the period / year | - | (2,295,504,372) | ||
242,220,117 | 120,851,242 |
SASM
(Un-audited) (Audited) March 31, September 30,
2025 2024
Written down value at the end of period / year 4,392,010,959 4,493,359,557
8. STOCK IN TRADE
Finished goods inventory:
Sugar
Bagasse
8.1 4,964,935,618 1,716,831,663
76,659,229 13,476,0685,041,594,847 1,730,307,731
Work-in-process inventory:
Sugar
Molasses
23,428,909 22,489,900
5,065,023,756 1,752,797,631
8.1 This includes stock amounting to Rs. 3,723 million (September 30, 2024: Rs. 3,571 million) pledged with banks as security against financing facilities.
19
20,165,954
2,323,946
21,146,345
2,282,564
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