SHAHMURAD SUGAR MILLS LIMITED

3rd Quarterly Results for the period 1st October 2022 to 30th June, 2023

MR. RUMI MOIZ

(Independent Director)

MR. SHEIKH ASIM RAFIQ

(Independent Director)

MR. RUMI MOIZ

MR. RUMI MOIZ

website: www.shahmuradsugar.co

REGISTRAR & SHARES REGISTRATION OFFICE

FACTORY

C & K Management Associates (Pvt) Ltd.

Jhok Sharif,

404-Trade Tower,

Taluka Mirpur Bathoro,

Abdullah Haroon Road,

District Sujawal (Sindh)

Near Metropole Hotel, Karachi - 75530

DIRECTORS' REPORT

Assalam-o-Alaikum

With great pleasure, I take this opportunity to present before you on behalf of the Board the un-audited financial statements of your company for the period ended June 30, 2023.

Salient features of production and financial statements are as under:

PRODUCTION DATA

June 30, 2023

June 30, 2022

Sugarcane crushed (M Tons)

567,913

601,695

Sugar produced (M Tons)

60,303

66,683

Sugar recovery percentage

10.60

11.08

Molasses produced (M Tons)

26,720

25,810

Ethanol Production (M Tons)

52,819

53,065

FINANCIAL DATA

(Rupees in thousands)

Sales revenue

14,472,021

12,421,893

Cost of sales

(10,944,001)

(10,278,780)

Gross profit

3,528,020

2,143,113

Distribution cost

(132,679)

(97,980)

Administrative expense

(269,350)

(217,004)

Other operating expenses

(160,724)

(94,057)

Other income

424,692

87,348

Financial cost

(769,505)

(370,994)

Profit before taxation

2,620,454

1,450,426

Provision for taxation

(201,312)

(174,132)

Profit after taxation

2,419,142

1,276,294

Earnings per share

Rs.114.55

Rs. 60.43

Segment wise performance is elaborated as under:

SUGAR DIVISION

During the period under review, the sugarcane crop was not good as it was in the corresponding period of last year. For the crushing season, the Government of Sindh notified a minimum support price of sugar cane at Rs. 302/= per forty kgs as against Rs. 250/= per forty kgs notified last year.

During the current crushing season, the mill crushed 567,913 metric tons of cane against 601,695 metric tons crushed and produced 60,303 metric tons of sugar as against 66,683 metric tons produced last year. The production during the current period is lower than last year by 6,380 metric tons or 9.57 percent. The decrease in the production of sugar was mainly due to the non-availability of raw materials as the cane crop was not good during the current season. The recovery rate also declined from 11.08 percent to 10.60 percent. As mentioned in the half-yearly report, the production of sugar during the current year is lower than last year but expected to meet the requirement of the country.

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ETHANOL DIVISION

During the period under consideration, the Ethanol Division produced 52,819 metric tons of ethanol as against 53,065 metric tons produced in the same period of last year which is slightly lower than previous year production. It is expected that the production would be slightly lower than the last year. The sales revenue of the ethanol division has increased due to higher prices in terms of foreign currency and deterioration in the value of local currency which increased the sales revenue in terms of Pak Rupees. The company exported 45,990 metric tons against 56,039 metric tons last year. It is anticipated that the sales would increase during the remaining period of the year INSHA ALLAH.

FUTURE OUTLOOK

The future outlook is still challenging due to global as well as internal uncertainties. Globally major economies going toward recessionary trends, lower demands, and higher interest rates. Internally our country has to meet post-IMF agreement obligations and the peaceful political transition from caretaker setup to an elected government. These would all make an impact on our internal economic situation in the coming months.

The Company's management is taking all necessary measures to steer the company through these precarious and uncertain time periods.

SUBSEQUENT EVENT AND DIVIDEND

The Board of Directors in their meeting held on July 24, 2023 has declared an interim cash dividend of Rs. 15.00 per shares i.e. 150% for the period ended June 30, 2023. These condensed interim financial statements do not include the effect of interim dividend.

BOARD OF DIRECTORS

During the period under consideration, there was no change in the composition of the Board of Directors.

May Allah SWT grant His Blessing and Rehmat for the continued success and growth of Shahmurad Sugar Mills Limited. (Ameen)

ZIA ZAKARIA

ABDUL AZIZ AYOOB

Managing Director & CEO

Director

Karachi:

Dated: July 24, 2023

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CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)

AS AT JUNE 30, 2023

Un-AuditedAudited

June September

2023 2022

Note

(Rupees in thousand)

ASSETS

NON CURRENT ASSETS

Property, plant and equipment

4

5,540,363

5,551,147

Intangible asset

5

-

-

Long term investment in associate

6

1,094

1,094

Long term loans

2,221

1,140

Long term deposits

3,150

2,599

CURRENT ASSETS

5,546,828

5,555,980

Stores, spare parts and loose tools

373,504

241,733

Stock-in-trade

9,692,917

3,537,695

Trade debts

755,502

1,059,148

Loans and advances

705,349

568,220

Trade deposits and short term prepayments

6,742

5,921

Other receivables

162

15,363

Short term investment

24,200

1,050,410

Income tax refundable-Net

10,917

-

Cash and bank balances

201,028

1,016,206

11,770,321

7,494,696

EQUITY AND LIABILITIES

17,317,149

13,050,676

SHARE CAPITAL AND RESERVES

Authorised Capital

25,000,000 ordinary shares of Rs. 10 each

250,000

250,000

Issued, subscribed and paid-up capital

211,187

211,187

Revenue reserve

General reserve

80,000

80,000

Share of associate's unrealized loss on re-measurement of its

investment at fair value through other comprehensive income

(2,195)

(2,195)

Unappropriated profit

6,456,027

4,513,440

Capital reserve

Revaluation surplus on property, plant and equipment

1,160,705

1,212,117

NON CURRENT LIABILITIES

7,905,724

6,014,549

Long term financing

509,402

656,877

Deferred taxation

193,924

162,110

CURRENT LIABILITIES

703,326

818,987

Trade and other payables

1,512,336

1,319,916

Accrued finance cost

315,619

61,211

Short term borrowings

6,614,495

4,532,139

Loan from related parties

8,032

41,135

Current portion of long term financing

238,223

238,223

Unclaimed dividend

19,394

14,431

Income tax provision-net of payments

-

10,085

8,708,099

6,217,140

CONTINGENCIES AND COMMITMENTS

7

-

-

17,317,149

13,050,676

The annexed notes from 1 to 16 form an integral part of these condensed interim financial statements.

ZIA ZAKARIA

AZIZ AYOOB

ZAID ZAKARIA

Managing Director & CEO

DIRECTOR

Chief Financial Officer

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Shahmurad Sugar Mills Ltd. published this content on 26 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2023 06:44:16 UTC.