UNAUDITED
CONDENSED INTERIM FINANCIAL INFORMATION
FOR THE NINE MONTHS PERIOD ENDED JUNE 30, 2022
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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 | Syed Abid Hussain | |
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 Foreign Exch. Bank 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 of the Company, we are pleased to lay before you the Un-Audited Financial Statements for the 3rd quarter ended 30th June, 2022.
Financial Results
The financial results of the company for the nine months period ended 30th June, 2022 with comparison to the corresponding period of the last year is presented hereunder.
30-Jun-22 | 30-Jun-21 | |
Rs. (000) | Rs. (000) | |
Profit/(Loss) before taxation | 82,520 | (128,534) |
Taxation | (19,777) | 4,768 |
Profit/(Loss) after taxation | 62,744 | (123,766) |
Earnings / (Loss) per share | 6.02 | (11.87) |
During the period under review, sales grew by 50% achieved at Rs.1.90 billion compared to Rs.1.27 billion in the corresponding period driven by increase in sales volume and selling price. The cost of sales also went down by 16% attributed to increase in sugar yield from 10.10% in the corresponding to 11.08% during the year and less cost incurred per 40 Kgs of sugar cane. Some of the manufacturing expenses, however, have increased due to spiraling inflation. The financial cost is no exception soared to Rs.192.34 million compared to Rs.113.46 million in the comparable period resulting from frequent hike in policy rate by SBP. The financial results could have been more better, if the interest rate had remained intact. All in all, it has been a good nine months of the financial year for the company wherein, it posted a profit after taxation at Rs.62.74 million compared to a loss after taxation Rs.123.77 million. Accordingly the earning per share stood at Rs.6.02 per share as against Loss per share Rs.11.87 in the same period of the last financial year.
Future Outlook
The sugar price will remain depressed locally in the last quarter of this financial year amid substantial surplus sugar stock is available with the sugar industry which will further increased in view of 10-15 percent sugar cane production is anticipated to increase in the next crushing season coupled with Government rigid attitude towards allowing export of surplus sugar. The delay in allowing export of sugar will push the whole sugar industry not only in cash flow crunch but also render it to suffer colossal losses. The export prices are favorable. If export allowed immediately, it will likely to add $500 million to $ 600 million in the depleting foreign exchange of the country since the international market is bullish amid expectation of lower supply of sugar due to high tendency towards manufacturing ethanol as it gives better financial return than sugar as energy prices have risen sharply in view of ongoing Russia and Ukraine
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The unending hike in key interest rate by SBP to control inflation will dent the bottom line as the company is carrying significant stock to be liquidated gradually. The financial cost is likely to increase further as the key interest rate as of to date has soared to 15% from 7.25% in September 2021.
Acknowledgement
The Board acknowledges the cooperation extended by the Shareholders, growers, banks and customers and appreciates the staff and workers who worked with devotion to strengthen the company.
______________ | ______________ |
Tara Chand | Mahesh Kumar |
Chief Executive | Director |
Dated: 28th July, 2022 |
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