Habib Sugar Mills Limited
Report and Condensed Interim
Financial Statements
for the Quarter and Nine months
ended June 30, 2023
(Unaudited)
Contents
Company Information | 2 |
Directors' Report | 3 |
Unconsolidated Condensed Interim Statement of Financial Position | 5 |
Unconsolidated Condensed Interim Statement of Profit or Loss | 6 |
Unconsolidated Condensed Interim Statement of Comprehensive Income | 7 |
Unconsolidated Condensed Interim Statement of Changes in Equity | 8 |
Unconsolidated Condensed Interim Statement of Cash Flows | 9 |
Notes to the Unconsolidated Condensed Interim Financial Statements | 10 |
Consolidated Condensed Interim Statement of Financial Position | 19 |
Consolidated Condensed Interim Statement of Profit or Loss | 20 |
Consolidated Condensed Interim Statement of Comprehensive Income | 21 |
Consolidated Condensed Interim Statement of Changes in Equity | 22 |
Consolidated Condensed Interim Statement of Cash Flows | 23 |
Notes to the Consolidated Condensed Interim Financial Statements | 24 |
34 | |
1
Company Information
Board of | Asghar D. Habib | Chairman | ||
Directors | Murtaza Habib | |||
Hasnain Habib | ||||
Farouq Habib Rahimtoola | ||||
Sohail Hussain Haji | ||||
Muhammad Salman Husain Chawala | ||||
Tyaba Muslim Habib | Chief Executive | |||
Khursheed A. Jamal | ||||
Audit | Farouq Habib Rahimtoola | Chairman | ||
Committee | Tyaba Muslim Habib | Member | ||
Sohail Hussain Haji | Member | |||
Human Resource & | Tyaba Muslim Habib | Chairperson | ||
Remuneration Committee | Hasnain Habib | Member | ||
Khursheed A. Jamal | Member | |||
Chief Financial Officer | Amir Bashir Ahmed | |||
Company Secretary | Imran Amin Virani | |||
Registered Office | 3rd Floor, Imperial Court, | |||
Dr. Ziauddin Ahmed Road, | ||||
Karachi-75530 | ||||
Phones | : | (+92-21) 35680036- 5 Lines | ||
Fax | : | (+92-21) 35684086 | ||
: sugar@habib.com | ||||
Mills | Sugar & Distillery Division | |||
Nawabshah District Shaheed Benazirabad | ||||
Phones | : | (+92-244)360751-5 Lines | ||
Fax | : | (+92-244) 361314 | ||
Textile Division | ||||
D-140/B-1 Mangopir Road | ||||
S.I.T.E. Karachi-75700 | ||||
Phones | : | (+92-21) 32571325, 32572119 | ||
Fax | : | (+92-21) 32572118 | ||
Bulk Storage | Terminal | |||
60/1-B Oil Installation Area | ||||
Keamari Karachi-75620 | ||||
Phones | : | (+92-21)32852003-4 | ||
Fax | : | (+92-21) 32852005 | ||
Bankers | Allied Bank Limited | |||
Bank AL Habib Limited | ||||
First Women Bank Limited | ||||
Habib Bank Limited | ||||
Habib Metropolitan Bank Limited | ||||
MCB Bank Limited | ||||
Meezan Bank Limited | ||||
National Bank of Pakistan | ||||
United Bank Limited | ||||
Statutory Auditors | Grant Thornton Anjum Rahman | |||
Chartered Accountants | ||||
Cost Auditors | Reanda Haroon Zakaria & Co. | |||
Chartered Accountants | ||||
Share Registrar | THK Associates (Pvt.) Limited | |||
Plot No. C-32, Jami Commercial Street-2 | ||||
D.H.A. Phase VII, Karachi - 755500 | ||||
UAN | : | (+92-21)111-000-322 | ||
Phone | : | (+92-21)35310191-93 | ||
: | stc@thk.com.pk |
2
Directors' Report
Dear Members - Assalam-o-Alekum
On behalf of the Board of Directors, we are pleased to present you the unaudited consolidated and unconsolidated condensed interim financial statements of the Company for the three quarters ended on June 30, 2023. The Company has earned pre-tax profit of Rs. 1,798.85 million (June 30, 2022: Rs. 1,456.12 million). The financial results of the Company for the three quarters ended June 30, 2023 are summarized below:
Financial Results | |||||||||||
Three Quarters | Three Quarters | Variance | |||||||||
ended June 30, | ended June 30, | ||||||||||
2023 | 2022 | ||||||||||
Rupees in Million | |||||||||||
Profit before taxation | 1,798.85 | 1,456.12 | 342.73 | ||||||||
Less: Taxation | (430.00) | (330.00) | (100) | ||||||||
Profit after taxation | 1,368.85 | 1,126.12 | 242.73 | ||||||||
Add: Realized (loss) / gain on sale of investment | (227.87) | 39.06 | (266.93) | ||||||||
Unappropriated profit brought forward | 5.19 | 5.11 | 0.08 | ||||||||
Unappropriated profit carried forward | 1,146.17 | 1,170.29 | (24.12) | ||||||||
Earnings per share-Basic and diluted- Rs. | |||||||||||
9.13 | 7.51 | 1.62 | |||||||||
Sugar Division
The crushing season 2022-23 commenced on November 29, 2022 and the plant operated upto February 26, 2023 for 89 days as against 125 days in the preceding season. Sugarcane crushed during the current season was 844,841 M. Tons with average sucrose recovery of 10.96% and sugar production of 92,591 M. Tons as compared with sugarcane crushing of 1,126,516 M. Tons with average sucrose recovery of 10.61 % and sugar production of 119,531 M. Tons during the preceding season.
The Government of Sindh on November 23, 2022 issued a notification fixing the minimum sugarcane support price at Rs. 302 per 40 kgs for the crushing season 2022 - 23 as against Rs.250 per 40 kgs for the crushing season 2021 - 2022. In addition, the sugar mills in Sindh are also required to pay quality premium at the rate of Re. 0.50 for every 0.1 percent sucrose recovery in excess of the bench mark of 8.7%.
The sugar division earned operating profit of Rs.417.93 million (June 30, 2022: Rs. 416.91 million). The increase in operating profit was mainly due to improved sucrose recovery and better sugar selling prices as compared with the corresponding period.
Considering the surplus quantity of sugar in the Country, the Sugar advisory Board (SAB) in principal recommended the Economic Coordination Committee (ECC) to allow export of 500,000 M. Tons of sugar. The ECC in their meeting had allowed and approved export of 250,000 M. Tons in phases.
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Thereafter, the Cane Commissioner-Sindh vide his letter dated January 25, 2023 allocated equal Quota of 2,500 M. Tons for export of sugar to each of the 32 operational sugar mills in Sindh (i.e., 80,000 M. tons representing Sindh's share of 32% out of total 250,000 M. Tons of export allowed by the ECC) without taking into account the crushing capacity of Sindh sugar mills.
The above allocation was challenged by certain sugar mills before the Sindh High Court who suspended the above allocation and declared the same as illegal and unlawful. Against the above order, the sugar mills preferred an appeal before the High Court who vide order dated March 9, 2023 allowed the quota of 1,500 M. Tons to each sugar mill till further orders/final outcome of the appeal. The Company exported 1,500 M. Tons of sugar in the month of April 2023 in accordance with the High Court's order.
Subsequently, on May 30, 2023 the High Court also allowed each of the Sugar Mills located in Sindh to export further 1,000 M. Tons of sugar subject to certain conditions. The case is still pending adjudication.
Distillery Division
The ethanol production during the three quarters ended June 30, 2023 was 25,519 M. Tons (June 30, 2022: 25,299 M. Tons). The division earned operating profit of Rs. 1,398.37 million (June 30, 2022: Rs.892.82 million). The increase in the profit of Rs. 505.55 million during the period ended on June 30, 2023 was mainly due to better Ethanol selling prices in the international market and devaluation of Pakistani Rupee against foreign currencies.
The liquidified carbon dioxide (CO2) unit produced 7,182 M. Tons (June 30, 2022: 6,342 M. Tons). The contribution of the unit is included in the profit of the division.
Textile Division
The division earned operating profit of Rs. 27.37 million during the three quarters under review (June 30, 2022: Rs. (20.29) million). The increase in profit was mainly attributable to better selling prices and devaluation of Pakistani Rupee against foreign currencies.
Trading Division
The Trading division earned operating profit of Rs. 143.51 million (June 30, 2022: Rs. 75.99 million). The increase in profit for the current period was mainly attributable to the trading of sugar.
Acknowledgement
The Directors of the Company would like to thank all the staff, shareholders, financial institutions and other stakeholders of the Company for their continued support and cooperation.
On behalf of the Board of Directors
Khursheed A. Jamal | Murtaza Habib |
Chief Executive | Director |
Karachi: July 24, 2023 |
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Habib Sugar Mills Ltd. published this content on 27 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2023 07:31:02 UTC.