UNAUDITED
QUARTERLY FINANCIAL STATEMENTS
1ST QUARTER ENDED DECEMBER 31, 2022
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 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 |
1
SASM
DIRECTORS' REPORT
Dear Shareholders,
On behalf of the Board of Directors, it is our privilege to present the un-audited condensed interim financial statements of the Company for the first quarter ended December 31, 2022.
OPERATIONAL RESULTS: | |||
Particulars | December | December | |
31, 2022 | 31, 2021 | ||
Season commenced on | 29.11.2022 | 28.11.2021 | |
Period reporting upto | 31.12.2022 | 31.12.2021 | |
Days worked (gross) | - Days | 33 | 34 |
Cane crushed | - Tons | 129,987 | 75,935 |
Average Crushing per day | - Tons | 3,939 | 2,233 |
Capacity utilization | - % | 49 | 28 |
Sugar recovery | - % | 9.88 | 9.86 |
Sugar produced | - Tons | 11,955 | 6,625 |
Molasses % Cane | - % | 4.51 | 4.57 |
Molasses produced | - Tons | 5,235 | 2,800 |
The Company crushed 129,987 M.Tons of Sugarcane compared to 75,935 M.Tons in the comparable period of last year reflecting a 49% utilization of capacity. The Crushing however, remarkably increased by 71% from the corresponding period. Accordingly sugar extracted 11,955 M. Tons compared to 6,625 M.Tons in the corresponding period with sugar recovery stood at 9.88% as against 9.86% achieved in the corresponding period.
FINANCIAL RESULTS: | ||
Particulars | ||
December | December | |
31, 2022 | 31, 2021 | |
Rupees | Rupee | |
Sales | 845,492,688 | 1,229,162,489 |
Gross Profit | 8,614,545 | 123,029,126 |
Operating (Loss) / Profit | (29,658,570) | 90,747,921 |
(Loss) / Profit after Taxation | (47,648,743) | 63,517,660 |
(Loss) / Earnings per share | (4.57) | 6.09 |
2
SASM
The company recorded sales of Rs. 845 million compared to Rs. 1,229 million in the corresponding period which plummeted by 31% amid below cost selling price of sugar and low volume of sales. The cost of production is worked out at Rs. 78.12 per kg excluding administrative, selling and financial cost of which net realizable value is Rs. 71.37 per kg represently a huge difference between them. Resultantly, the company incurred a loss after taxation for the period Rs. 47.65 million as against profit of Rs. 63.52 million in the corresponding period. The loss per share accordingly stood at Rs. (4.57) per share compared to earning Rs. 6.09 per share in the corresponding period.
FUTURE OUTLOOK
The government has fixed the price of sugar cane at Rs. 302 per 40 kg in Sindh as compared to Rs. 250 per 40 kg in the preceding season reflecting an increase of 21%. In contrast the sugar price remains range bound between Rs. 80 per kg to Rs. 85 per kg which is anticipated to further deteriorate with the arrival of more current year production in the market. The price of sugar should increase more or less with the same percentage of increase in price of sugar-cane announced by the government which unfortunately is not happening since the price of sugar is controlled by the government itself and is not letting the market forces to determine the price. The government however, at last has allowed export of 0.25 million metric tons of sugar to the industry against its demand of 1.2 million metric tons which will pave the way to allow further export of sugar keeping in view the available stock of sugar and its demand in the country, which ultimately, will help mitigate some of the losses resulting from local sale of sugar.
The SBP has again raised the policy rate by 1% to 17% in an effort to control inflation and to bring price stability which has increased by a total of 7.25% since January 2022. This unprecedented increase in policy rate is having negative consequences on the Profitability of the industry. The company is however, more focused towards achieving operational productivity by way of improving yield from sugar-cane, enhancing capacity utilization and taking austerity measures to reduce fixed cost to remain profitable and earn the confidence of the shareholders.
The Board of Directors would like to thanks all the shareholders for their continued trust and confidence reposed on them and assured them that the management is quite capable to achieve success with better planning to overcome the difficult situation faced by the company. The directors also place on record their appreciation of the devoted services and hard work put in by the officers and workers of the company. Please pray to GOD to guide and help us achieve the desired results and prosperous future.
_______________________
Dr. Tara Chand
Chief Executive
Karachi: January 25th, 2023
3
SASM |
4 |
This is an excerpt of the original content. To continue reading it, access the original document here.