Nature's Riches, Perfected: Bringing the Best from Field to Market
2024
Condensed Interim Financial Statements (Un-Audited) for the Half year ended 31 March
Tariq Corporation Limited
CONTENTS
Company Information | 2 |
Directors' Report to the Shareholders - English | 4 |
Directors' Report to the Shareholders - Urdu | 8 |
Auditors Review Report to the Members | 11 |
Condensed Interim Statement of Financial Position | 12 |
13 | |
Condensed Interim Statement of Comprehensive Income | 14 |
Condensed Interim Statement of Cash Flows | 15 |
Condensed Interim Statement of Changes in Equity | 16 |
Notes to the Condensed Interim Financial Information | 17 |
Half Yearly Report 2024
1
COMPANY INFORMATION
DIRECTORS
Sadia Ali Tariq
Mustafa Ali Tariq
Ahmed Ali Tariq
Ghazanfar Ali
Maryam Habib
Muhammad Imran Khan
Saif Hasan
CHIEF FINANCIAL OFFICER
Wasim Saleem
COMPANY SECRETARY
Khalid Mahmood
HEAD OF INTERNAL AUDIT
Zahid Mahmood
AUDIT COMMITTEE
Chairman
Member
Member
HUMAN RESOURCE & REMUNERATION COMMITTEE
Chairman
Member
Member
RISK MANAGEMENT COMMITTEE
Chairman
Member
Member
EXTERNAL AUDITORS
Kreston Hyder Bhimji & Co
Chartered Accountants
BANKERS OF THE COMPANY
SHARIAH COMPLIANT
Askari Bank Limited
Bankislami Pakistan Limited
Faysal Bank Limited
Meezan Bank Limited
OLP Modaraba
Chairperson
Chief Executive Officer
Executive Director
Non Executive Director
Non Executive Director
Independent Director
Independent Director
Muhammad Imran Khan
Ghazanfar Ali
Maryam Habib
Saif Hasan
Maryam Habib
Mustafa Ali Tariq
Mustafa Ali Tariq
Ahmed Ali Tariq
Saif Hasan
2
CONVENTIONAL
Bank Alfalah Limited
First Credit and Investment Bank Limited
National Bank of Pakistan
Samba Bank Limited
SHARE REGISTRAR
CDC Share Registrar Services Limited
KARACHI
CDC House, 99 - B, Block 'B',
S.M.C.H.S., Main Shahra-e-FaisalKarachi-74400. Tel: Customer Support Services
(Toll Free) 0800-CDCPL (23275) Fax: (92-21) 34326053 Email: info@cdcsrsl.com Website: www.cdcsrsl.com
CDC LAHORE OFFICE
Mezzanine Floor,
South Tower, LSE Plaza,
Khayaban-E-Aiwan-E-Iqbal, Lahore
Tel: (92-42)-36362061-66
CDC ISLAMABAD OFFICE
Room # 410,4th Floor, ISE Towers,
55-B, Jinnah Avenue,
Blue Area, Islamabad.
Tel. (92-51)2895456-9
LEAGAL ADVISORS
Saad Rasool Law Associates
Siddiqui Bari Kasuri & Company
COST AUDITORS
Fazal Mahmood & Co
Chartered Accountants
MILLS
Lahore Road, Jaranwala
Ph:(92-41)-4312499
REGISTERED / HEAD OFFICE
28-C, Block E-1,Gulberg-III, Lahore Ph: (92-42) -111-111-476
Fax:(92-42) -35712680
Email: info@.tariqcorp.com
WEBSITE INFORMATION
www.tariqcorp.com
PSX SYMBOL
TCORP
Half Yearly Report 2024
3
DIRECTORS' REPORT
The directors of your company are pleased to present the reviewed financial information of the Company for the half-year that ended on 31 March 2024.
The highlights of the Company's performance for the half year and its comparison with the corresponding period of last year is given below:
OPERATIONAL
Sugarcane crushed (Metric Tons)
Sugar produced (Metric Tons)
Sugar recovery (%)
FINANCIAL
Net sales
Gross (loss) / profit Operating and finance cost (Loss) / Profit before taxation
(Loss) / Profit after taxation
(Loss) / Earnings per share
THE SUGAR INDUSTRY AND THE ECONOMY
31-03-202431-03-2023
570,050 616,378
58,18360,120
10.219.76
........................Rupees..................
7,747,523,842 4,644,504,356
(311,973,089) 99,475,191
325,755,956 417,183,500
(607,219,985) 89,963,100
(490,885,021) 8,317 ,262
(9.27)0.16
This year saw a further rise in the cost of sugarcane to Mills as the Government of Punjab and other provinces in Pakistan notified an even higher cost of Sugarcane fixed at Rs. 400 per Maund. Although this was the notified price floor, market prices of sugarcane fluctuated upwards of Rs. 550 per Maund and Mills bought very expensive sugarcane.
Although provincial governments have increased the support prices of sugarcane to encourage sugarcane plantation, they have not been supportive of the corresponding increase in sugar prices. If governments increase the costs of production, i.e minimum support price and inflation continues, naturally, there will be a corresponding increase in prices of sugar.
In the agriculture sector in general, it has been seen that in recent years and in the years to come, farmers have chosen to shift towards sugarcane compared to alternative crops due to the excellent returns they have received from Mills. With a larger quantity of crushable sugarcane and higher costs of sugarcane, there was a larger production of national sugar this year, compared to the previous year.
Although the costs of manufacturing have gone higher, the surplus inventory of sugar has adversely affected the price of sugar. The price of sugar has remained depressed and the proposal for the export of sugar has been advocated by stakeholders to relevant policymakers for due consideration. It is expected that on export of the surplus quantity of sugar, the market will stabilize and rally corresponding to costs of manufacturing.
Although the State Bank of Pakistan has begun to decelerate rising interest rates as inflation look to have been reigned in, the cost of capital has become too costly. In fact interest rates are the highest they have been in decades. It is becoming an extremely difficult challenge for a food-based industry to navigate in such a background. Political instability has restricted foreign inflows and the resulting dent in foreign exchange reserves have hit hard on the Rupee. Although this devaluation adds a burden on the costs of manufacturing, it also gives companies in Pakistan's sugar sector a comparative advantage on sugar. With the USD devaluation to record levels, it is lucrative for the sugar industry in Pakistan to export hundreds of thousands, if not millions of tonnes annually.
4
OPERATING HIGHLIGHTS
Starting on the 22nd of November 2023, the company operated for a total of 102 days. Compared to the previous season, the company's crushing season was roughly the same, longer by 5% in terms of days.
Although financial results of the half-year are never truly representative of what the company will ultimately achieve, the directors are pleased to announce that:
The Company was able to crush 570,050 M.Tons of Sugarcane and produced 58,183 M.Tons of refined sugar at an average recovery of 10.21% as compared to last year's sugarcane crushing of 616,378 M. Tons and production of 60,120 M.Tons refined sugar at an average recovery of 9.76%. The investments made by the company in promoting sugarcane recovery through provision of pesticides and fertilizers has borne fruit, and the company has closed on half a degree higher as compared to the previous crushing season. The trend shows that sucrose recovery is increasing every year, and we are hopeful that the sucrose recovery will continue to increase year on year.
For half a year, the company has recorded a revenue of Rs. 7.747 billion. In comparison in 2017 and 2018 our full year revenues were at Rs. 2.7 and Rs. 3.8 billion for the entire year. The Efficiency Improvement Project and the BMR that the company has completed has drastically changed the operational capacity of the company. This year, our loss after tax is Rs. 490,885,021 during the period under review as compared to profit after tax of Rs. 8,317,262 in the corresponding period of last year. Increasing costs of capital, limited working capital availability, and costlier sugarcane without a corresponding increase in the price of sugar mid-season can be attributed to the loss after tax this year.
FUTURE OUTLOOK
Although sugar prices have not increased in the local market correspondingly to the increase in sugarcane costs, we are confident that the market will stabilize in the coming months. National sugar demand is on the increase in general YoY and next year is predicted to be a bumper crop. As other crops have not returned sufficiently to farmers, more and more farmers are choosing to cultivate sugarcane as compared to alternatives for next year. Our Cane Surveying Department forecasts at least a 10% increase in sugarcane cultivation for the next year.
In the current working capital environment where cost of capital is around 24-25%, it has become essential to reduce financial costs as much as possible. In this regard and to compensate for operational losses, The Board of the Company has instructed management to capitalize on the profits from non-core assets by strategically disposing of them at gains. This decision aims to enhance the company's financial health by generating positive cash flow, thereby reinforcing the company's liquidity and enabling reinvestment in core business operations. By converting non-earning assets into earning assets, the Board hopes to capitalize on the current monetary environment by saving on bank interests and through significant returns on bank deposits. In this regard, the Board has authorized and directed the management of the Company to dispose of non-operational assets. Therefore, management is in discussions with potential parties to dispose of non- core operational assets to generate liquidity for the company.
Half Yearly Report 2024
5
ACKNOWLEDGEMENT
The Directors of your Company would like to thank the various governmental departments and its functionaries, our banking partners, others financial institutions, and insurance companies for their continued support and cooperation. The Directors would also like to express their gratitude and appreciation for the support provided by our valued customers and suppliers. We also thank our shareholders, who continue to place their trust and confidence in the Company and assure them of our best efforts to ensure optimum utilization of their investment in the Company. Furthermore, the Directors place on record their appreciation for the continued support of our sugarcane growers whose hard work and loyalty with our company continue to be at the center of our company's growth and success. Lastly and above all, the Directors wish to acknowledge and place on record their appreciation for the devotion, loyalty, and hard work of all cadres of employees towards the growth and success of the company.
For and on behalf of Board of Directors,
Mian Mustafa Ali Tariq | Mian Ahmed Ali Tariq |
Director |
LAHORE: 29 May 2024
6
Half Yearly Report 2024
7
8
Half Yearly Report 2024
9
Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Husein Sugar Mills Ltd. published this content on 31 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2024 07:20:03 UTC.