Thal Industries : Transmission of Quarterly Report for the Period Ended 2024 03 31

HALF YEARLY REPORT 2024

CONDENSED INTERIM FINANCIAL STATEMENTS For the Six Months Ended 31 March 2024 (Un-audited)

Sustainability Through value creation

TABLE OF CONTENTS

P.02

Company Information

P.04

Directors' Review

P.09

Independent Auditors'

Review Report

P.12

Condensed Interim Statement of Profit or Loss and other Comprehensive Income

P.14

Condensed Interim Statement of Cash Flows

P.03

Vision and Mission Statements

P.06

Directors' Review (Urdu)

P.10

Condensed Interim Statement of Financial Position

P.13

Condensed Interim Statement of Changes in Equity

P15

Selected Notes to the Condensed Interim Financial Statements

Half Yearly Report 2024

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COMPANY

INFORMATION

BOARD OF DIRECTORS

CHAIRPERSON

Mrs. Qaiser Shamim Khan

CHIEF EXECUTIVE

Mr. Muhammad Shamim Khan

MANAGING DIRECTOR

Mr. Nauman Ahmed Khan

DIRECTORS
Mr. Muhammad Shamim Khan	(Director)
Mrs. Qaiser Shamim Khan	(Director)
Mr. Adnan Ahmed Khan	(Director)
Mr. Nauman Ahmed Khan	(Director)
Mr. Muhammad Khan	(Director)
Mrs. Farrah Khan	(Director)
Mrs. Sarah Hajra Khan	(Director)

Mr. Anwar Ahmed Khan (Independent Director)

Mr. Muhammad Ashraf Khan Durani

(Independent Director)

Mr. Farid Ud Din Ahmed (Independent Director)

CHIEF FINANCIAL OFFICER

Mr. Hafiz Muhammad Arif

COMPANY SECRETARY

Mr. Wasif Mahmood

AUDITORS

M/s. Rahman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants, Lahore

LEGAL ADVISOR

Mr. Shehzad Ata Elahi, Advocate

BANKERS

Allied Bank Limited

Askari Bank Limited

Al Baraka Bank Pakistan

Bank Al-Habib Limited

Bank Alfalah Limited

BankIslamic (Pakistan) Limited

Dubai Islamic Bank (Pakistan) Limited

Faysal Bank Limited

Habib Bank Limited

Habib Metropolitan Bank Limited

MCB Bank Limited

MCB Islamic Bank Limited

Meezan Bank Limited

NBP Aitemaad Islamic Bank Limited National Bank of Pakistan Corporate Pak Kuwait Investment Company (Pvt) Ltd

Standard Chartered Bank (Pakistan) Limited Soneri Bank Limited

Samba Bank Limited

The Bank of Punjab

United Bank Limited

AUDIT COMMITTEE
Mr. Muhammad Ashraf Khan Durani	Chairman
Mrs. Qaiser Shamim Khan	Member
Mr. Adnan Ahmed Khan	Member
HUMAN RESOURCE &
REMUNERATION COMMITTEE
Mr. Farid Ud Din Ahmed	Chairman
Mr. Adnan Ahmed Khan	Member
Mr. Muhammad Khan	Member
RISK MANAGEMENT COMMITTEE
Mr. Farid Ud Din Ahmed	Chairman
Mr. Muhammad Ashraf Khan Durani	Member
NOMINATION COMMITTEE
Mr. Farid Ud Din Ahmed	Chairman
Mr. Muhammad Ashraf Khan Durani	Member
SHARE REGISTRAR
M/s. Corplink (Pvt) Ltd
Wings Arcade, 1-K- Commercial
Model Town, Lahore
Tel: [phone]
Fax: [phone]

REGISTERED OFFICE

23- Pir Khurshid Colony Gulgasht, Multan

Tel: [phone]

Fax: [phone]

LAHORE OFFICE

2-D-1Gulberg-III, Lahore - 54600

Tel: [phone]

Fax: [phone]

FACTORY ADDRESSES

Unit 1: Layyah Sugar Mills, Layyah

Tel: [phone]

Fax: [phone]

Unit 2: Safina Sugar Mills, Lalian District

Chinniot.

Tel: [phone]

Fax: [phone]

WEBSITE: www.thalindustries.com

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VISION

We shall build on our core competencies and achieve excellence in performance to become a leading producer of best quality sugar. In doing so we aim to meet or accede the expectations of all our stakeholders.

Our goal is not only to attain technological advancements in the field of sugar but also to inculcate the most efficient, ethical and time tested business practices in our management.

Furthermore, we shall strive to innovate the ways for the improvement and increase in per acre yield of sugarcane and introduce improved varieties of sugarcane having better yield characters, high sucrose contents, disease and drought resistant and better ratooning crop in the region. We shall introduce the mechanized sugarcane cultivation mehtod to the growers and to educate regarding latest developments of agriculture technology

and free consultancy of professionals.

MISSION

We aim to be a leading producer and supplier of quality sugar by adopting the most technological advancement. We intend to play a pivotal role in the economic development of Pakistan.

Half Yearly Report 2024

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DIRECTORS'

REVIEW

The Directors of your Company are pleased to present the Un-Audited Accounts of the Company for the Half Year Ended 31 March 2024 in compliance with the section 237 of the Companies Act, 2017.

INDUSTRY OVERVIEW

During the period under review, the growers reported higher yields per acre compared to last year. Despite these factors, sugar recoveries decreased due to adverse climate conditions and flooding in the region.

For the current crushing season 2023-24, the notified support price of sugarcane was Rs. 400/- per 40 kg in Punjab & KPK and Rs. 425/- per 40 kg in the province of Sindh. Crushing commenced on 25th November 2023. Average sugarcane purchase cost remained higher than the support price.

OPERATING HIGHLIGHTS

As of the reporting date, the Company successfully processed 2,701,533.490 metric tons of sugarcane, resulting in the production of 260,695.850 metric tons of white refined sugar with an average recovery rate of 9.655%. In the corresponding period of the previous year, the Company processed 2,575,765.773 metric tons of sugarcane, yielding 277,663.950 metric tons of white refined sugar with an average recovery rate of 10.784%. The decline in the recovery rate is attributed to the unavailability of higher-quality sugarcane varieties and climatic disturbances.

Net sales for the first half of the current financial year amounted to Rs. 12,274.494 million, compared to Rs. 14,583.256 million for the same period last year.

The Company achieved a pretax profit of Rs. 1,718.209 million during the half-year under review, reflecting a decrease compared to the pretax profit of Rs. 2,160.207 million in the corresponding period of the previous year. This decline is primarily due to lower sugar prices in the market and higher interest costs.

All out efforts are being made to increase the production and profitability of the Company through process efficiency, installing modern and latest technology, reducing production cost by close supervision, developing good quality cane by providing the latest improved seed varieties, fertilizer, pesticides etc. and facilitating the cane growers constantly, which ultimately will result in higher sugar recovery and benefit to the cane growers.

CORPORATE GOVERNANCE

Best Corporate Practices

Directors are committed to good corporate governance and comply with the requirements of the Listed Companies (Code of Corporate Governance) Regulations, 2019 and the Rule Book of Pakistan Stock Exchange.

The statement of compliance with the CCG is enclosed.

1. The total number of directors are Ten as per the following:
2. • Male: Seven
   • Female: Three
3. The composition of the Board of Directors (the Board") is as follows:

Category	Names
Independent Directors	Mr. Muhammad Ashraf Khan Durani
	Mr. Farid Ud Din Ahmad
	Mr. Anwar Ahmed Khan
Executive Directors	Mr. Muhammad Shamim Khan (CEO)
	Mr. Nauman Ahmed Khan
Non-Executive Directors	Mrs. Qaiser Shamim Khan
	Mr. Adnan Ahmed Khan
	Mr. Muhammad Khan
	Mrs. Farrah Khan
	Mrs. Sarah Hajra Khan

3. The Board has formed committees comprising of members given below:

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AUDIT COMMITTEE

• Mr. Muhmmad Ashraf Khan Durani (Chairman)
• Mrs. Qaiser Shamim Khan
• Mr. Adnan Ahmed Khan

HR AND REMUNERATION COMMITTEE

• Mr. Farid U Din Ahmad (Chairman)
• Mr. Adnan Ahmed Khan
• Mr. Muhammad Khan
  NOMINATION COMMITTEE
• Mr. Farid U Din Ahmad (Chairman)
• Mr. Muhmmad Ashraf Khan Durani
  RISK MANAGEMENT COMMITTE
• Mr. Farid U Din Ahmad (Chairman)
• Mr. Muhmmad Ashraf Khan Durani

4. The Board of Directors have a formal policy and transparent procedures for remuneration of directors in accordance with the Act and these Regulations. The detail is given in Note:16 to the Financial Statement.

FUTURE OUT LOOK

The increase in sugarcane prices during the current crushing season has led to higher sugar production costs. While Provincial Governments set minimum sugarcane prices annually which generally exceed much the minimum threshold in actual, sugar prices are subject to market forces and interventions, creating significant challenges and risks for the sugar industry. To address these ever existing challenges, there is a need to provide a free competitive market for sugar prices under a framework , considering the concerns of the sugar manufacturing industry. This would also ensure better prices for sugarcane growers and help the sugar industry to develop a sustainable model.

Going forward, it is expected that the macro economic situation continue to frighten. The high policy rate of 22% is going to result in substantial borrowing costs. Additionally, inflationary pressures may contribute to an overall increase in the cost of doing business. Sugar prices which are subdued at the moment, are largely to determine the profitability of the Company. Export permission is awaited from government that is helpful for the industry to generate cashflows in depressed local prices environment and will earn foreign exchange for the country as well.

ACKNOWLEDGEMENT

The Board would like to record their appreciation for the efforts and devotion of all the Company's employees and hope they will continue their contribution towards the enhancement of productivity and well-being of the company in the future as well. The board also wishes to thank the financial institutions, farmers and all stakeholders associated with the company for their support and cooperation.

For and on behalf of Board

The Thal Industries Corporation Ltd.

Mr. Muhammad Shamim Khan	Mrs Farrah Khan
Chief Executive	Director
Lahore: 24th May, 2024

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INDEPENDENT AUDITORS' REVIEW REPORT

TO THE MEMBERS OF THE THAL INDUSTRIES CORPORATION LIMITED REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS

INTRODUCTION

We have reviewed the accompanying condensed interim statement of financial position of The Thal Industries Corporation Limited as at 31 March 2024 and the related condensed interim statement of profit or loss and other comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows, and selected notes to the condensed interim financial statements for the six months' period then ended (here-in-after referred to as the "interim financial statements"). Management is responsible for the preparation and presentation of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these financial statements based on our review.

The figures of the condensed interim statement of profit or loss and other comprehensive income for the quarters ended 31 March 2024 and 2023 have not been reviewed, as we are required to review only the cumulative figures for the half year ended 31 March 2024.

SCOPE OF REVIEW

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of 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 interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

The engagement partner on the review resulting in this independent auditors' review report is Mr. Adnan Rasheed.

Rahman Sarfaraz Rahim Iqbal Rafiq

CHARTERED ACCOUNTANTS

Lahore:

UDIN: RR202410701oxHIWAVt6

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