For the Period Ended June 30, 2022 (Un-audited)
3RD QUARTERLY
REPORT
2022
CONTENTS
Company Information | 2 |
Directors' Review | 3 |
Condensed Interim Statement of Financial Position | 10 |
Condensed Interim Statement of ProRt or Loss | 11 |
Condensed Interim Statement of Comprehensive Income | 12 |
Condensed Interim Statement of Changes in Equity | 13 |
Condensed Interim Statement of Cash Flows | 14 |
Selected Notes to the Condensed Interim Financial Information | 15 |
COMPANY INFORMATION
BOARD OF DIRECTORS | |
Mrs. Qaiser Shamim Khan | Chairperson |
Mr. Adnan Ahmed Khan | Chief Executive |
Mr. Muhammad Shamim Khan | Executive Director |
Mr. Nauman Ahmed Khan | Non-Executive Director |
Mrs. Sarah Hajra Khan | Non-Executive Director |
Mr. Farid ud Din Ahmed | Independent Director |
Mr. Malik Manzoor Hussain Humayoon | Independent Director |
CHIEF FINANCIAL OFFICER | AUDIT COMMITTEE | ||
Mr. Wasif Mahmood | Mr. Farid-ud-Din Ahmad | Chairman | |
Mrs. Sarah Hajra Khan | Member | ||
COMPANY SECRETARY | Mr. Malik Manzoor Hussain Humayoon | Member | |
Mr. Muhammad Imran | NOMINATION COMMITTEE | ||
AUDITORS | Mr. Malik Manzoor Hussain Humayoon | Chairman | |
Mr. Farid-ud-Din Ahmad | Member | ||
BDO Ebrahim & Co. | |||
Chartered Accountants | RISK MANAGEMENT COMMITTEE | ||
F-2, First Floor, Grace Centre, | |||
Canal Bank Road, 1-B Canal Park, | Mr. Malik Manzoor Hussain Humayoon | Chairman | |
Gulberg-II, Lahore | Mr. Farid-ud-Din Ahmad | Member | |
Tel: 042-35875709-10 | |||
Fax: 042-35717351 | SHARE REGISTRAR | ||
Email: info@bdo.com.pk | |||
M/s Corplink (Pvt) Limited | |||
MILLS | Share Registrar, Wings Arcade, | ||
1-K Commercial Model Town, Lahore. | |||
5 K.M. Faisalabad Road, Okara | Tel: 042-35916714, | ||
Tel: 044-2714418-21 | Fax: 042-35869037 | ||
Fax: 044-2522978 | Email: corplink786@gmail.com | ||
BANKERS | REGISTERED OFFICE | ||
Habib Bank Limited | 2-D-1, Gulberg III, Lahore | ||
Bank Al-Habib Limited | Tel: 042-35771066-71 | ||
MCB Bank Limited | Fax: 042-35756687 | ||
MCB Islamic Bank Limited | Email: info@bfsml.com | ||
Meezan Bank Limited | Website: www.bfsml.com | ||
Bank Alfalah Limited | |||
Soneri Bank Limited | LEGAL ADVISOR | ||
Allied Bank Limited | |||
Askari Bank Limited | M/S Ahmed & Pansota | ||
Advocate and Legal Consultants | |||
HUMAN RESOURCES & | 20 - Sir Gangaram Mansions | ||
The Mall Lahore. | |||
REMUNERATION COMMITTEE | |||
Tel: 042-37313549, 37313520 | |||
Mr. Farid-ud-Din Ahmad | Chairman | Tel: 042-36672102 | |
Mr. Adnan Ahmed Khan | Member | ||
Mr. Malik Manzoor Hussain Humayoon | Member |
- BABA FARID SUGAR MILLS LIMITED
DIRECTORS' REVIEW
The Directors of your Company are pleased to present the Un-Audited Accounts of the Company for the period ended June 30, 2022 in compliance with the section 237 of the Companies Act, 2017.
INDUSTRY OVERVIEW
During the period under review, cultivated area of sugarcane crop is expectedly higher and yield per acre being reported by the growers was also reportedly higher as compared to corresponding period of last year. The early start of crushing season also aected the yield and recovery of cane. Sugar recovery in the area as compared to last year is lower due to early harvesting.
For current crushing season 2021-22, noti ed support price of sugarcane is Rs. 225/- per 40 kg in Punjab
- KPK and Rs. 250/- per 40 kg in the province of Sindh. .Due to early start of crushing season from 15 November 2021, the company had to pass through tough competition in cane procurement that resulted into price war like situation in the region. Average sugarcane purchase cost remained higher than the support price and as compared to last year as well.
PERFORMANCE OF THE COMPANY
The Company was able to crush 604,762.396 M. Tons sugarcane and produced 54,026.500 M. Tons of white reHned sugar at an average recovery of 8.936% during the period ended June 30, 2022 as compared to corresponding period of last year sugarcane crushing was 457,224.825 M. Tons and production was 41,501.500 M. Tons of white reHned sugar at an average recovery of 9.072%.
Net sales were recorded at Rs. 2,865.658 million during the period under review as compared to Rs. 3,498.308 million against the corresponding period of last year and reduction was mainly due reduced sugar quantity sold and partially due to lower sugar prices as compared to last year.
The Company su ered pretax loss of Rs. 189.285 million during the period under review as compared to pretax proRt of Rs. 150.286 million in the corresponding period of last year. The increase in loss is due to increased sugarcane procurement cost, lower sugar prices prevalent in the local market along with eHect of ination coupled with increase in nancial cost mainly due to substantial rise of Kibor rate.
All out eHorts are being made to increase the production and proRtability of the Company through process eciency, 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 also nancial beneQt to the cane growers.
RESEARCH AND DEVELOPMENT
Agricultural R&D is an integral part of the Company's policy which entails identi cation and multiplication of promising new sugarcane varieties and their subsequent commercial sowing through progressive growers with best agricultural practices. This not only increases per acre yield of sugar cane but also enhances growers earning and creates more enthusiasm for sowing sugarcane compared to competing crops. It also increases the sugarcane supply to the Company and boosts overall sugar recovery, directly improving the bottom line of the Company.
RELATIONSHIP WITH GROWERS
As usual growers' payment has remained our top priority being one of the main keys of our success and we are trying our level best to make growers' payment on priority basis. We regularly provide nancial and technical support to our growers.
3rd Quarterly Report 2022 | 3 |
FUTURE OUTLOOK
According to surveys the sugarcane crop size in current crushing season is estimated to be approx. 20- 25% higher than last year and keeping in view the reported increased crop yield, we expect the sugar production of this year will be substantially higher as compared to last year. In this sugar surplus situation in the country, the sugar prices may remained under pressure and many sugar mills will not be able to clear farmer's payments in timely manner unless the sugar export will be allowed to international market. Though allowing sugar exports seems extremely di cult in present political scenario. Although if allowed, this export will also be greatly helpful to the country in this extremely low FCY reserve position. The option of sugar export is not only important for this year rather for next year as well because industry is expecting another bumper cane crop next year.
The increase in discount rate by the State Bank of Pakistan (SBP) by 775 bps has ultimately increased the Kibor rate will result in increasing the nancial cost of the Company. Any further increase in mark-up rates will adversely aect the proRtability and the liquidity of the Company.
Sales tax evasion and undocumented sugar trade were two major challenges being faced by the sugar industry. These issues were the root causes of instability in the prices of sugarcane, sugar and hurdle in planning by the Government for availability of sugar in the country. To curb these issues on 11 November 2021, FBR has issued Sales Tax General Order No. 05 of 2021-22 with subject of Implementation of Track
- Trace System. As per order, no sugar bags shall be allowed to be removed from production site or factory without axation of Tax Stamps / Unique Identi cation Marking (UTMs) with eHect from 11 November 2021, which are to be obtained / procured from FBR Licensed vendor only. FBR has achieved marvelous success in the implementation of Track & Trace System and results are quite satisfactory. This is a milestone achieved by FBR which will result in giving level playing elds to fully compliant sugar mills and substantial increase in the revenue of FBR. Now FBR should also nd out practical ways out to document the sugar trade which is another uphill task.
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.
1. The total number of Directors are seven as per following:
• Male: Five
- • Female: Two
2. The composition of the Board of Directors ("the Board") is as follows:
Category | Names |
Independent Directors | Mr. Farid-ud-Din Ahmad |
Mr. Malik Manzoor Hussain Humayoon | |
Executive Directors | Mr. Adnan Ahmed Khan (CEO) |
Mr. Muhammad Shamim Khan | |
Non-Executive Directors | Mrs. Qaiser Shamim Khan |
Mr. Nauman Ahmed Khan | |
Mrs. Sarah Hajra Khan |
- BABA FARID SUGAR MILLS LIMITED
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Baba Farid Sugar Mills Ltd. published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2022 11:07:15 UTC.