SHAHMURAD SUGAR MILLS LIMITED
Half Yearly Results for the period
1st October 2023 to 31st March, 2024
MR. RUMI MOIZ | (Independent Director) | |
MR. SHEIKH ASIM RAFIQ | (Independent Director) | |
MR. RUMI MOIZ | ||
MR. RUMI MOIZ | ||
www.shahmuradsugar.co | ||
REGISTRAR & SHARES REGISTRATION OFFICE | FACTORY | |
C & K Management Associates (Pvt) Ltd. | Jhok Sharif, | |
M-13, Progressive Plaza, Civil Lines Quarter | Taluka Mirpur Bathoro, | |
Near P.I.D.C., Beaumont Road, Karachi-75530 | District Sujawal (Sindh) |
DIRECTORS' REPORT
Asslamu-o- Alaikum
With great pleasure, I present to you, on behalf of the Board, the unaudited financial statements of your company for the period ended March 31, 2024. The financial statements have been reviewed by the Auditors as required under the Code of Corporate Governance.
Salient features of production and Financial Statements are as under:
PRODUCTION DATA | March 31, 2024 | March 31, 2023 |
Sugarcane crushed (M Tons) | 654,604 | 567,913 |
Sugar produced (M Tons) | 71,905 | 60,303 |
Sugar recovery percentage | 10.98 | 10.60 |
Molasses produced (M Tons) | 30,450 | 26,720 |
Ethanol Production (M Tons) | 28,734 | 34,537 |
FINANCIAL DATA | (Rupees in thousands) | |
Sales revenue | 10,930,915 | 9,578,117 |
Cost of sales | (9,555,970) | (7,145,690) |
Gross profit | 1,374,945 | 2,432,427 |
Distribution cost | (59,135) | (81,170) |
Administrative expenses | (233,099) | (184,500) |
Other expenses | (78,965) | (122,824) |
Other income | 372,845 | 412,561 |
Financial cost | (767,894) | (407,192) |
Profit before taxation | 608,697 | 2,049,302 |
Provision for taxation | (183,620) | (152,775) |
Profit after taxation | 425,077 | 1,896,527 |
Earnings per share | Rs. 20.13 | Rs. 89.80 |
Segment wise performance is elaborated as under:
SUGAR DIVISION
The sugarcane crop was comparatively better than in the corresponding period last year. For the crushing season, the Government set the minimum support price of sugarcane at Rs. 425 of cane, compared to Rs. 302 per 40 kgs last year. This reflects a 40.73% increase in the cost of raw materials, which has impacted the cost of sugar production.
The mill crushed 654,604 metric tons of cane compared to 567,913 metric tons last year. Sugar production increased to 71,905 metric tons from 60,303 metric tons last year, a rise of 11,602 metric tons or 19.24%. This increase was primarily due to the greater availability of raw material in the mill's vicinity. The recovery rate improved from 10.60% to 10.98%.
Due to increased sugar production and carryover stock from the previous year, sugar prices remain under pressure. It is crucial for the Government to allow sugar exports to sustain the minimum support price of sugarcane paid to farmers in the current year and protect the future of the industry as a whole.
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ETHANOL DIVISION
During the period under review, the Ethanol Division produced 28,734 metric tons of ethanol, compared to 34,537 metric tons last year. The Company exported 29,272 metric tons of ethanol, down from 33,463 metric tons in 2023. The decline in sales volume was due to higher inventory levels in European markets, supply chain disruptions caused by conflicts in the Middle East, and increased sea freight costs. The ethanol sale price has also shown a declining trend since the last quarter.
Additionally, the cost of molasses rose by 17% per ton compared to the previous year. Financial charges increased substantially due to higher interest rates. These factors have contributed to a higher cost of production, which has adversely affected the company's profitability.
FUTURE OUTLOOK
In the current crushing season, the Government of Sindh increased the raw material cost from Rs. 302 to Rs. 425 per 40 kgs. This has benefited growers with higher returns on their crops, which is expected to boost sugarcane cultivation in the next season.
It is very important for the Government of Pakistan to note that due to the favorable support price of sugarcane, Pakistan has evolved into a surplus sugar-producing country. Prudent and positive export policies are required to ensure the sustainability of the sugar industry and the farmers, as well as to gain valuable foreign exchange for the country.
However, there are significant internal and external uncertainties affecting the future outlook. Global recessionary trends, declining demand, supply chain disruptions due to the prolonged Russia-Ukraine conflict, and Middle East tensions are major concerns. Domestically, Pakistan faces financial challenges, higher financial costs, and increased taxation.
The Company's management is aware of these challenges and is taking necessary measures to mitigate negative impacts and enhance the contributions of the ethanol and sugar divisions to the company's overall performance.
BOARD OF DIRECTORS
There was no change in the composition of the Board of Directors during the period under review.
May Allah SWT grant His blessings and mercy for the continued success and growth of Shahmurad Sugar Mills Limited. Ameen.
ZIA ZAKARIA | ABDUL AZIZ AYOOB |
Managing Director & CEO | Director |
Karachi: | |
Dated: May 27, 2024 |
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Independent Auditor's Review Report
To the member of Shahmurad Sugar Mills Limited
Report on Review of Condensed Interim Financial Statements
INTRODUCTION:
We have reviewed the accompanying condensed interim statement of financial position of SHAHMURAD SUGAR MILLS LIMITED ("the Company") as of March 31, 2024, and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows and notes to the condensed interim financial statements for the half year then ended (here-in-after referred to as the "condensed interim financial statements"). Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review.
The figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for quarters ended March 31, 2024 and March 31, 2023 have not been reviewed, as we were required to review only the cumulative figures for the half year ended March 31, 2024.
SCOPE OF REVIEW:
We conducted our review in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of condensed interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
CONCLUSION:
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements are not prepared, in all material respects, in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting.
The engagement partner of the review resulting in this independent auditor's report is Taswar Hussain.
Chartered Accountants
Karachi
Dated: May 27, 2024
UDIN: RR202410729KxubweFkz
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CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT MARCH 31, 2024 | Un-audited | Audited | |
March | September | ||
2024 | 2023 | ||
ASSETS | Note | (Rupees in thousand) | |
NON CURRENT ASSETS | |||
Property, plant and equipment | 4 | 10,879,025 | 10,859,038 |
Intangible asset | 5 | - | - |
Long term investment in associate | 6 | 973 | 973 |
Long term loans to employees | 2,078 | 1,867 | |
Long term deposits | 3,149 | 3,149 | |
CURRENT ASSETS | 10,885,225 | 10,865,027 | |
Stores, spare parts and loose tools | 579,035 | 356,283 | |
Stock-in-trade | 16,039,429 | 4,562,106 | |
Trade debts | 1,194,422 | 870,395 | |
Loans and advances | 1,646,383 | 710,205 | |
Trade deposits and short term prepayments | 15,569 | 1,168 | |
Other receivables | 6,424 | 109,064 | |
Short term investment | 24,277 | 24,242 | |
Cash and bank balances | 473,541 | 5,099,535 | |
19,979,080 | 11,732,998 | ||
EQUITY AND LIABILITIES | 30,864,305 | 22,598,025 | |
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 | |
Unappropriated profit | 7,710,505 | 7,563,144 | |
Share of associate's unrealized loss on re-measurement of | |||
its investment at fair value through other comprehensive income | (2,268) | (2,268) | |
Revaluation surplus on property, plant and equipment | 5,821,798 | 5,966,455 | |
NON CURRENT LIABILITIES | 13,821,222 | 13,818,518 | |
Long term financing | 299,542 | 388,654 | |
Deferred taxation | 958,055 | 956,059 | |
1,257,597 | 1,344,713 | ||
CURRENT LIABILITIES | |||
Trade and other payables | 2,268,808 | 2,437,950 | |
Accrued finance cost | 451,801 | 127,089 | |
Short term borrowings | 12,754,475 | 4,562,307 | |
Loan from related parties | - | 8,032 | |
Unclaimed dividend | 24,643 | 22,330 | |
Current portion of long term financing | 178,223 | 178,223 | |
Income tax provision-net of payments | 107,536 | 98,863 | |
15,785,486 | 7,434,794 | ||
CONTINGENCIES AND COMMITMENTS | 7 | - | - |
30,864,305 | 22,598,025 |
The annexed notes from 1 to 17 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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CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)
FOR THE HALF YEAR ENDED MARCH 31, 2024
For the half year | For the Quarter | ||||
October to March | January to March | ||||
2024 | 2023 | 2024 | 2023 | ||
Note | (Rupees in thousand) | ||||
Sales | 10,930,915 | 9,578,117 | 3,937,506 | 5,494,987 | |
Cost of sales | 8 | (9,555,970) | (7,145,690) | (3,908,635) | (4,057,110) |
Gross profit | 1,374,945 | 2,432,427 | 28,871 | 1,437,877 | |
Profit from trading activities | 2,076 | 1,432 | 889 | 548 | |
Distribution cost | (59,135) | (81,170) | (24,092) | (40,846) | |
Administrative expenses | (233,099) | (184,500) | (111,065) | (104,292) | |
Other expenses | (78,965) | (122,824) | 12,396 | (83,022) | |
(371,199) | (388,494) | (122,761) | (228,160) | ||
Operating profit | 1,005,822 | 2,045,365 | (93,001) | 1,210,265 | |
Other income | 370,769 | 411,129 | 61,483 | 242,607 | |
1,376,591 | 2,456,494 | (31,518) | 1,452,872 | ||
Finance cost | (767,894) | (407,192) | (539,964) | (292,814) | |
Profit /(loss) before taxation | 608,697 | 2,049,302 | (571,482) | 1,160,058 | |
Taxation | |||||
-Current | (181,624) | (118,609) | (16,126) | (66,616) | |
-Deferred | (1,996) | (34,166) | 46,139 | (38,716) | |
(152,775) | 30,013 | (105,332) | |||
Profit /(loss) for the period | 425,077 | 1,896,527 | (541,469) | 1,054,726 | |
Earning / (loss) per share | |||||
- Basic and diluted - Rupees | 20.13 | 89.80 | (25.64) | 49.94 |
The annexed notes from 1 to 17 form an integral part of these condensed interim financial statements.
ZIA ZAKARIA | AZIZ AYOOB | ZAID ZAKARIA |
Managing Director & CEO | DIRECTOR | Chief Financial Officer |
6
CONDENSED INTERIM STATEMENT OF
COMPREHENSIVE INCOME (UN-AUDITED)
FOR THE HALF YEAR ENDED MARCH 31, 2024
For the half year | For the Quarter | |||
October to March | January to March | |||
2024 | 2023 | 2024 | 2023 | |
(Rupees in thousand) | ||||
Profit / (loss ) for the period | 425,077 | 1,896,527 | (541,469) | 1,054,726 |
Other comprehensive income | - | - | - | - |
Total comprehensive income / (loss) | ||||
for the period | 425,077 | 1,896,527 | (541,469) | 1,054,726 |
The annexed notes from 1 to 17 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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CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
FOR THE HALF YEAR ENDED MARCH 31, 2024
Share of | Capital | |||||
Issued, | Associate's | Un- | Reserve | |||
Subscribed | General | unrealised | Surplus on | |||
appropriated | Total | |||||
& paid up | reserves | (loss)/gain on | revaluation of | |||
capital | remeasurement | profit | Property Plant | |||
of investment | & Equipment | |||||
(Rupees in thousand) | ||||||
Balances as at October 01, 2022 (Audited) | 211,187 | 80,000 | (2,195) | 4,513,440 | 1,212,117 | 6,014,549 |
During the half year ended March 31, 2023 | ||||||
Transactions with owners | ||||||
Final Dividend for 30-September-2022 | ||||||
@ Rs. 10.00 Per Share | - | - | - | (211,187) | - | (211,187) |
Total Comprehensive income for the half year | ||||||
ended March 31, 2023 | ||||||
Profit for the period | - | - | - | 1,896,527 | - | 1,896,527 |
Other comprehensive income | - | - | - | - | - | - |
- | - | - | 1,896,527 | - | 1,896,527 | |
Transfer from surplus on revaluation of property, | ||||||
plant and equipment on account of incremental | ||||||
depreciation - net of deferred tax | - | - | - | 34,274 | (34,274) | - |
Balances at March 31,2023 | 211,187 | 80,000 | (2,195) | 6,233,054 | 1,177,843 | 7,699,889 |
Balances as at October 01, 2023 (Audited) | 211,187 | 80,000 | (2,268) | 7,563,144 | 5,966,455 | 13,818,518 |
During the half year ended March 31, 2024 | ||||||
Transactions with owners | ||||||
Final Dividend for 30-September-2023 | ||||||
@ Rs. 20.00 Per Share | - | - | - | (422,373) | - | (422,373) |
Total Comprehensive Income for the half year | ||||||
ended March 31, 2024 | ||||||
Profit for the period | - | - | - | 425,077 | - | 425,077 |
Other comprehensive income | - | - | - | - | - | - |
- | - | - | 425,077 | - | 425,077 | |
Transfer from surplus on revaluation of property, | ||||||
plant and equipment on account of incremental | ||||||
depreciation - net of deferred tax | - | - | - | 144,657 | (144,657) | - |
Balances at March 31, 2024 | 211,187 | 80,000 | (2,268) | 7,710,505 | 5,821,798 | 13,821,222 |
The annexed notes from 1 to 17 form an integral part of these condensed interim financial statements.
ZIA ZAKARIA | AZIZ AYOOB | ZAID ZAKARIA |
Managing Director & CEO | DIRECTOR | Chief Financial Officer |
8
CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)
FOR THE HALF YEAR ENDED MARCH 31, 2024
March March
2024 2023 (Rupees in thousand)
- CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation | 608,697 | 2,049,302 | |
Adjustment for : | |||
Depreciation | 276,250 | 175,289 | |
Gain on disposal of property, plant and equipment | (481) | (764) | |
Provision for obsolescence and slow moving items | - | 5,150 | |
Finance cost | 767,894 | 407,192 | |
1,043,663 | 586,867 | ||
(Increase) / decrease in current assets | 1,652,360 | 2,636,169 | |
Stores, spare parts and loose tools | (222,752) | (120,256) | |
Stock in trade | (11,477,323) | (7,359,664) | |
Trade debts | (324,027) | 10,550 | |
Loans and advances | (936,178) | (599,724) | |
Trade deposits and short term prepayments | (14,401) | (7,746) | |
Other receivables | 102,640 | 8,713 | |
(Decrease) / increase in current liabilities | (12,872,041) | (8,068,127) | |
Trade and other payables | (169,142) | 244,660 | |
(11,388,823) | (5,187,298) | ||
(Increase) in long term loan to employees | (211) | (1,339) | |
(Increase) in long term deposits | - | (551) | |
Income tax paid | (172,951) | (137,300) | |
Finance cost paid | (443,182) | (216,308) | |
(616,344) | (355,498) | ||
Net cash (outflows) from operating activities | (12,005,167) | (5,542,796) | |
B. | CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions in property, plant and equipment | (296,702) | (218,100) | |
Sale proceeds from disposal of property, plant and equipment | 946 | 840 | |
Net cash (outflows) from investing activities | (295,756) | (217,260) | |
C. | CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayment of long term financing | (89,112) | (119,112) | |
Loan repaid to related parties | (8,032) | (23,103) | |
Short term borrowings | 8,142,372 | 4,269,505 | |
Dividend paid | (420,060) | (209,121) | |
Net cash inflows from financing activities | 7,625,168 | 3,918,169 | |
Net (decrease) in cash and cash equivalent (A+B+C) | (4,675,755) | (1,841,887) | |
Cash and cash equivalent at the beginning of the period | 5,069,470 | 2,016,677 | |
Cash and cash equivalent at the end of the period | 393,715 | 174,790 | |
Cash and cash equivalent comprise: | |||
- Cash and bank balances | 473,541 | 205,742 | |
- Short term investment | 24,277 | 24,200 | |
- Short term borrowings - running finance | (104,103) | (55,152) | |
393,715 | 174,790 |
The annexed notes from 1 to 17 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 30 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 May 2024 07:01:06 UTC.