Dewan Sugar Mills : Transmission of Quarterly Report for the Period Ended December 31,2022

COMPANY INFORMATION

EXECUTIVE DIRECTORS

Zeeshan Ashraf - Chief Executive Officer

Ghazanfar Baber Siddiqui

NON-EXECUTIVE DIRECTORS

Abdul Basit - Chairman Board of Director

Syed Maqbool Ali

Nida Jamil

Muhammad Ashraf

INDEPENDENT DIRECTOR

Aziz-ul-Haque

COMPANY SECRETARY

Muhammad Hanif German

CHIEF FINANCIAL OFFICER

Muhammad Ilyas Abdul Sattar

AUDITORS

Feroze Sharif Tariq & Co. - Chartered Accountants

COST AUDITORS

UHY Hassan Naeem & Co.

TAX ADVISOR

Sharif & Company - Advocates

LEGAL ADVISOR

A.K. Brohi & Company Advocates

BMF Consultants Pakistan (Pvt.) Limited

Annum Estate Building, Room No. 310 & 311,

3rd Floor, 49, Darul Aman Society.

Main Shahrah-e-Faisal, Adjacent Baloch Colony,

Karachi, Pakistan.

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DIRECTORS' REPORT

IN THE NAME OF ALLAH; THE MOST GRACIOUS AND MERCIFUL

IF YE GIVE THANKS, I WILL GIVE YOU MORE (HOLY QURAN)

The Board of directors of Dewan Sugar Mills Limited is pleased to present you its unaudited condensed interim financial statements of the Company for the first quarter ended December 31, 2022

FINANCIAL RESULTS

During the period under consideration, your Company has suffered an after after-tax loss of Rs.114.687 million, as compared to loss of Rs.274.999 million in the corresponding period of last year.

PERFORMANCE REVIEW

Sugar Segment

The Company started its crushing season 2022-2023 on 23rd December, 2022. During the current season Sindh agriculture department notified cane prices on 23rd November 2022at Rs.302/- per 40 kg., in addition to payment of quality premium which will be determined at the end of season on actual sucrose recovery. From the start of crushing season price of cane is un controlled and reached to near about Rs.340/- per 40 kg. which was is much beyond the cost of prevailing finished goods prices.

During the current quarter operating loss of sugar segment Rs.265.008 million as compared to last season Rs.250.109 million.

The previous season's stocks of sugar and delayed approval of exports have pressurized the sugar prices consistently. Secondly soaring sugarcane procurement cost and increased cost of doing business due to unprecedented highly inflationary pressure are the major challenges being faced by the industry.

Distillery Segment

The Distillery unit produced 4,127 tons of Alcohol during the period under review as compared to 4,679 tons of Alcohol in corresponding period quarter of last year. Prices of raw material are slightly higher and expected to go up. During the current quarter operating profit of distillery segment was Rs.230.740 million as against compared to last quarter loss was Rs.25.973 million. The management is optimistic for improvement of better results in the coming period.

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Board & Panel

The Chip Board plant produced 11,880 sheets during the period under review as compared to the corresponding quarter's production was of 6,000 sheets.

In conclusion, we bow, beg and pray to Almighty Allah, Rahman-o-Ar-Rahim, in the name of our beloved Prophet Muhammad (peace be upon him) for the continued showering of his blessings, guidance, strength, health, and prosperity to us, our company, country and nation; and also pray to Almighty Allah to bestow peace, harmony, brotherhood, and unity in true Islamic spirit to whole of the Muslim Ummah; Ameen; Summa Ameen.

LO-MY LORD IS INDEED HEARER OF PRAYER (HOLY QURAN)

By and under Authority of the Board of Directors

Place : Karachi

Date : January 27, 2023

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