Dewan Sugar Mills : Transmission of Quarterly Report for the Period Ended June 30,2022

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.

3RD QUARTER REPORT 03

DIRECTORS' REPORT

IN THE NAME OF ALLAH; THE MOST GRACIOUS AND MERCIFUL

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

Your directors take pleasure in presenting you the unaudited condensed interim financial information of the Company for the period ended June 30, 2022.

Financial Results.

During the period under consideration, the financial results brief summary is as under: -

Performance Review

Sugar Segment

The plant started its crushing on 2nd December, 2021 and operated (99 days) till 30th March 2022 as compared to last year plant operated for 84 days. During the current season plant crushed 489,240 Metric tons of sugar cane producing 50,789.6 Metric Tons White refined sugar with average sucrose recovery of 10.41% as compared to last period plant managed to crush 340,759 tons of sugar cane with average sucrose recovery of 9.97% and refined sugar production of 33,936 tons. This approximately 50% increase in production from previous year apparently show improvement in crushing as well as enhancement in sucrose recovery. Despite this effort Company could not take the benefit because of higher raw material cost. Further better result could be achieved with the help of working capital and pledge facilities from financial institution.

During the period sugar segment suffered operating loss of Rs.531.80 million as compared to Rs.565.83 million in the corresponding period. The reason of this loss was higher raw material cost and less crushing capacity utilization because of non availability of bank financial limits.

Distillery Segment

Distillery unit produced 23,498 tons of Alcohol during the period under review as compared to 18,219 tons of Alcohol produced during the corresponding period. This period operating profit of distillery unit was Rs. 184.33 million as against operating loss of Rs. 43.82 million in previous period.

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Chip Board Polypropylene Segment

Chip Board plant has produced 81,160 sheets during the period under review as against last period 155,520 sheets produced. Management is focused on producing value added products and "A" quality sheets, which are well accepted in market. We are confident that from coming year we bring out this segment from losses to reasonable profit.

Polypropylene unit is already out of production because of working capital constraints.

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

3RD QUARTER REPORT 05