TABLE OF CONTENTS
P.02
Company Information
P.04
Directors' Review
P.08
Condensed Interim Statement of Profit or Loss and other Comprehensive Income
P.10
Condensed Interim Statement of Cash Flows
P.03
Vision and Mission Statements
P.06
Condensed Interim Statement of Financial Position
P.09
Condensed Interim Statement of Changes in Equity
P.11
Selected Notes to the Condensed Interim Financial Information
1st Quarterly Report 2025 | 1 |
COMPANY
INFORMATION
BOARD OF DIRECTORS
CHAIRPERSON
Mrs. Qaiser Shamim Khan
CHIEF EXECUTIVE
Mr. Muhammad Shamim Khan
MANAGING DIRECTOR
Mr. Nauman Ahmed Khan
DIRECTORS | |
Mr. Muhammad Shamim Khan | (Director) |
Mrs. Qaiser Shamim Khan | (Director) |
Mr. Adnan Ahmed Khan | (Director) |
Mr. Nauman Ahmed Khan | (Director) |
Mr. Muhammad Khan | (Director) |
Mrs. Farrah Khan | (Director) |
Mrs. Sarah Hajra Khan | (Director) |
Mr. Anwar Ahmed Khan (Independent Director)
Mr. Muhammad Ashraf Khan Durani
(Independent Director)
Mr. Farid Ud Din Ahmed (Independent Director)
CHIEF FINANCIAL OFFICER
Mr. Hafiz Muhammad Arif
COMPANY SECRETARY
Mr. Wasif Mahmood
AUDITORS
M/s. Rahman Sarfaraz Rahim Iqbal Rafiq
Chartered Accountants, Lahore
LEGAL ADVISOR
Mr. Shehzad Ata Elahi, Advocate
BANKERS
Allied Bank Limited
Askari Bank Limited
Bank Al-Habib Limited
Bank Alfalah Limited
BankIslamic (Pakistan) Limited
Dubai Islamic Bank (Pakistan) Limited
Faysal Bank Limited
Habib Bank Limited
Habib Metropolitan Bank Limited
MCB Bank Limited
MCB Islamic Bank Limited
Meezan Bank Limited
NBP Aitemaad Islamic Bank Limited
National Bank of Pakistan Corporate
Pak China Investment Company Limited
2
Pak Kuwait Investment Company (Pvt) Ltd
Standard Chartered Bank (Pakistan) Limited
Soneri Bank Limited
Samba Bank Limited
The Bank of Punjab
United Bank Limited
AUDIT COMMITTEE
Mr. Muhammad Ashraf Khan Durani Chairman
Mrs. Qaiser Shamim Khan | Member |
Mr. Adnan Ahmed Khan | Member |
HUMAN RESOURCE & | |
REMUNERATION COMMITTEE | |
Mr. Farid Ud Din Ahmed | Chairman |
Mr. Adnan Ahmed Khan | Member |
Mr. Muhammad Khan | Member |
RISK MANAGEMENT COMMITTEE | |
Mr. Farid Ud Din Ahmed | Chairman |
Mr. Muhammad Ashraf Khan Durani | Member |
NOMINATION COMMITTEE | |
Mr. Farid Ud Din Ahmed | Chairman |
Mr. Muhammad Ashraf Khan Durani | Member |
SHARE REGISTRAR | |
M/s. Corplink (Pvt) Ltd | |
Wings Arcade, 1-K- Commercial | |
Model Town, Lahore | |
Tel: 042-35839182, 35887262 | |
Fax: 042-35869037 | |
REGISTERED OFFICE
23- Pir Khurshid Colony Gulgasht, Multan
Tel: 061-6524621, 6524675
Fax: 061-6524675
LAHORE OFFICE
2-D-1 Gulberg-III, Lahore - 54600
Tel: 042-35771066-71
Fax: 042-35771175
FACTORY ADDRESSES
Unit 1: Layyah Sugar Mills, Layyah
Tel: 0606-411981-4, 0606-410014
Fax: 0606-411284
Unit 2: Safina Sugar Mills, Lalian District
Chinniot.
Tel: 047-6610011-6, 047-7629990
Fax: 047-6610010
WEBSITE: www.thalindustries.com
VISION We shall build on our core competencies and achieve excellence in performance to
become a leading producer of best quality sugar. In doing so we aim to meet or accede the expectations of all our stakeholders.
Our goal is not only to attain technological advancements in the field of sugar but also to inculcate the most efficient, ethical and time tested business practices in our management.
Furthermore, we shall strive to innovate the ways for the improvement and increase in per acre yield of sugarcane and introduce improved varieties of sugarcane having better yield characters, high sucrose contents, disease and drought resistant and better ratooning crop in the region. We shall introduce the mechanized sugarcane cultivation mehtod to the growers and to educate regarding latest developments of agriculture technology and free consultancy of professionals.
We aim to be a leading producer and supplier of quality sugar by adopting the most technological advancement. We intend to play a pivotal role in the economic development of Pakistan.
MISSION
1st Quarterly Report 2025
3
DIRECTORS'
REVIEW
The Directors of your Company are pleased to present the Un-Audited Accounts of the Company for the Quarter Ended 31 Dec 2024 in compliance with the section 237 of the Companies Act, 2017.
INDUSTRY OVERVIEW
Sugarcane remains a cornerstone of Pakistan's agricultural landscape, with the sugar industry ranking as the second largest agro-based industry following textiles. It contributes approximately 3.5% to the agricultural value addition and 0.8% to the national GDP.
The current crushing season saw a 10-15% decline in yield per acre due to adverse weather, flooding, and higher production costs, while sucrose recovery remained unchanged from the previous year.
As the first step towards the de-regulation of the sugar industry for the ongoing crushing season 2024-25, the Provincial Governments have refrained from notifying support prices for sugarcane, leaving the pricing to be determined by market forces.
OPERATING HIGHLIGHTS
As of the reporting date, the company successfully processed 100,465.015 metric tons of sugarcane, resulting in the production of 91,494.500 metric tons of white refined sugar, achieving an average recovery rate of 9.575%. In comparison, during the same period last year, the company processed 908,691.530 metric tons of sugarcane, yielding 81,302.500 metric tons of white refined sugar with an average recovery rate of 9.444%. This reflects a slight improvement in recovery compared to the previous year. The increase in crushing volume can be attributed to an early start of the crushing season.
Net sales for the first three months of the current financial year amounted to Rs. 10,923.557 million, compared to Rs. 5,204.805 million for the same period last year.
The company achieved a pretax profit of Rs. 144.619 million during the period under review, representing a decline compared to the pretax profit of Rs. 995.207 million in the corresponding period of the previous year. This decrease is primarily attributable to slightly lower profit margins on the carryover stock from the previous year and higher borrowing costs incurred during the period.
Efforts are being made to boost the company's production and profitability by improving process efficiency, adopting advanced technologies, reducing production costs through close supervision, and providing cane growers with the latest improved seed varieties, fertilizers, pesticides, and continuous support. These initiatives are aimed at increasing sugar recovery and delivering greater benefits to the cane growers.
FUTURE OUT LOOK
For the 2024-25 crushing season, Provincial Governments have not set support prices for sugarcane, leaving pricing to market forces. The Pakistan Sugar Mills Association has urged the Federal Government to fully deregulate the sugar sector, enabling the industry to operate freely under market mechanisms. Stabilizing sugar prices and reducing the gap between imported and local prices is essential to ensure fair returns for growers and reasonable profits for the industry to enhance productivity.
The Government's focus on economic stability and growth has led the State Bank of Pakistan (SBP) to reduce the base rate from 22% to 13% in phases between 10 June 2024 and 16 December 2024. This declining trend in interest rates is expected to lower the company's financial costs and positively impact future profitability. The business community anticipates further reductions, potentially bringing the KIBOR to single digit.
The financial year 2024-25 looks promising, with lower discount rates reducing finance costs and cane costs declining, while profitability depends on sugar prices. However, export income will be taxed under the Normal Tax Regime instead of the Final Tax Regime, which may negatively impact profitability.
4
ACKNOWLEDGEMENT
The Board would like to record their appreciation for the efforts and devotion of all the Company's employees and hope they will continue their contribution towards the enhancement of productivity and well-being of the company in the future as well. The board also wishes to thank the financial institutions, farmers and all stakeholders associated with the company for their support and cooperation.
For and on behalf of Board
The Thal Industries Corporation Ltd.
Mr. Muhammad Shamim Khan | Mrs. Farrah Khan |
Chief Executive | Director |
Lahore: 24th January 2025 |
1st Quarterly Report 2025 | 5 |
CONDENSED INTERIM STATEMENT
OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024 (UN-AUDITED)
(Un-Audited) | (Audited) | |||
31 December | 30 September | |||
Note | 2024 | 2024 | ||
EQUITY & LIABILITIES | .......... (Rupees) | |||
Share Capital and Reserves | ||||
Share capital | 4 | 150,232,320 | 150,232,320 | |
Revenue reserves | 93,800,000 | 93,800,000 | ||
Accumulated profit | 9,494,125,346 | 9,486,824,488 | ||
9,738,157,666 | 9,730,856,808 | |||
LOANS FROM DIRECTORS | 5 | - | 478,600,000 | |
Non Current Liabilities | 9,738,157,666 | 10,209,456,808 | ||
Lease liabilities | 6 | 40,973,029 | 43,268,112 | |
Staff retirement benefits - Gratuity | 332,351,935 | 300,549,318 | ||
Deferred taxation | 567,383,661 | 567,383,661 | ||
940,708,625 | 911,201,091 | |||
Current Liabilities | ||||
Trade and other payables | 8,797,491,926 | 3,399,067,278 | ||
Finance cost payable | 227,311,308 | 946,175,828 | ||
Short term borrowings-secured | 7 | 15,666,113,649 | 11,854,941,709 | |
Current portion of long term liabilities | 44,330,634 | 43,253,518 | ||
Uncashed Dividend warrants | 21,549,586 | 21,549,586 | ||
Provision for taxation | 572,763,831 | 435,445,129 | ||
25,329,560,934 | 16,700,433,048 | |||
Contingencies and Commitments | 8 | |||
36,008,427,225 | 27,821,090,947 | |||
The annexed notes form an integral part of this condensed interim financial information.
CHIEF FINANCIAL OFFICER | DIRECTOR |
6
Note | |
PROPERTY AND ASSETS | |
Non Current Assets | |
Property, plant & equipment | 9 |
Intangible Assets | |
Long term deposits |
Current Assets
Stores, spare parts and loose tools
Stock-in-trade
Trade debts10 Loans and advances
Short Term Investments
Trade deposits, prepayments & other receivables
Taxes recoverable / adjustable
Cash and bank balances
(Un-Audited) | (Audited) |
31 December | 30 September |
2024 | 2024 |
.......... (Rupees) |
7,618,066,843 | 6,145,980,383 | |
1,000 | 1,000 | |
6,464,500 | 6,464,500 | |
7,624,532,343 | 6,152,445,883 |
1,108,713,904 1,042,446,392
15,536,512,180 14,369,866,124
2,553,470,340 2,061,855,927
877,859,681 1,215,769,630
1,584,074,479 570,123,670
279,718,135 167,882,454
1,456,391,221 1,198,542,934
4,987,154,942 1,042,157,933
28,383,894,882 21,668,645,064
36,008,427,225 27,821,090,947
CHIEF FINANCIAL OFFICER | DIRECTOR |
1st Quarterly Report 2025 | 7 |
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE FIRST QUARTER ENDED 31 DECEMBER 2024 (UN-AUDITED)
Note | |
Sales - Net | |
Cost of sales | 11 |
Gross profit | |
Operating expenses | |
Distribution and selling expenses | |
Administrative expenses | |
Operating profit | |
Other income | 12 |
Finance cost
Other expenses
Profit before levies and income taxes
Levies
Profit before income tax
Taxation- Income taxes
Profit after taxation
Other Comprehensive Income-Net of Tax
Items that will be reclassified to profit or loss
Items that will never be reclassified to profit or loss: Remeasurement of staff gratuity (loss)/gain Related impact on deferred tax
Quarter ended
31 December | 31 December | |||
2024 | 2023 | |||
.......... (Rupees) | ||||
10,923,556,841 | 5,204,804,747 | |||
(9,880,202,262) | (3,809,888,762) | |||
1,043,354,579 | 1,394,915,985 | |||
(171,105,956) | (87,505,239) | |||
(297,831,598) | (238,015,606) | |||
(468,937,554) | (325,520,845) | |||
574,417,025 | 1,069,395,140 | |||
61,939,322 | 108,969,899 | |||
636,356,347 | 1,178,365,039 | |||
(481,018,473) | (109,399,316) | |||
(10,718,314) | (73,758,635) | |||
(491,736,787) | (183,157,951) | |||
144,619,560 | 995,207,088 | |||
(137,318,702) | - | |||
7,300,858 | 995,207,088 | |||
- | (288,610,056) | |||
7,300,858 | 706,597,032 | |||
- | - | |||
- | - | |||
- | - |
-
-
Total comprehensive income / (loss) for the year
7,300,858
706,597,032
Earnings Per Share-Basic & Diluted | 13 |
0.49
47.03
The annexed notes form an integral part of this condensed interim financial information.
CHIEF FINANCIAL OFFICER | DIRECTOR |
8
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE FIRST QUARTER ENDED 31 DECEMBER 2024 (UN-AUDITED)
Revenue reserves | |||||||||
Share | General | Unap- | Loans | ||||||
Particulars | propriated | Sub total | from | Total | |||||
capital | reserves | ||||||||
profit | directors | ||||||||
Rupees | |||||||||
Balance as on 01 October 2023 | 150,232,320 | 93,800,000 | 8,436,308,160 | 8,680,340,480 | 478,600,000 | 9,158,940,480 | |||
Total Comprehensive Income for the | |||||||||
three months | - | - | 706,597,032 | 706,597,032 | - | 706,597,032 | |||
Balance as on 31 Dec 2023 | |||||||||
150,232,320 | 93,800,000 | 9,142,905,192 | 9,386,937,512 | 478,600,000 | 9,865,537,512 | ||||
Total Comprehensive Income for the | |||||||||
nine months | - | - | 419,035,456 | 419,035,456 | - | 419,035,456 | |||
Cash dividend @ 50% i.e Rs. 5.00 per share | (75,116,160) | (75,116,160) | - | (75,116,160) | |||||
Balance as on 30 September 2024 | |||||||||
150,232,320 | 93,800,000 | 9,486,824,488 | 9,730,856,808 | 478,600,000 | 10,209,456,808 | ||||
Total Comprehensive Income for the | |||||||||
three months | - | - | 7,300,858 | 7,300,858 | - | 7,300,858 | |||
Repayment of loans from directors | - | - | - | - | (478,600,000) | (478,600,000) | |||
Balance as on 31 December 2024 | 150,232,320 | 93,800,000 | 9,494,125,346 | 9,738,157,666 | - | 9,738,157,666 | |||
The annexed notes form an integral part of this condensed interim financial information.
CHIEF FINANCIAL OFFICER | DIRECTOR |
1st Quarterly Report 2025 | 9 |
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