Sakrand Sugar Mills : Transmission of Quaterly Report for the Period Ended March 31, 2024

UNAUDITED

CONDENSED INTERIM

FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED

MARCH 31, 2024

COMPANY PROFILE

BOARD OF DIRECTORS	Mr. Saleem Zamindar	Chairman / Director
	Mr. Dinshaw H. Anklesaria	Director
	Mr. Shams Ghani	Director
	Miss. Sadia Moin	Director
	Mr. Muhammad Saleem Mangrio	Director
	Mr. Abdul Qayyum Khan Abbasi	Director
	Mr. Muhammad Omar Arshid	Director
AUDIT COMMITTEE	Miss. Sadia Moin	Chairperson
	Mr. Saleem Zamindar	Member
	Mr. Muhammad Saleem Mangrio	Member
HR COMMITEE	Mr. Abdul Qayyum Khan Abbasi	Chairman
	Mr. Muhammad Omar Arshid	Member
	Mr. Shams Ghani	Member
CHIEF EXECUTIVE OFFICER	Mr. Mansoor Afzal Subzwari
CHIEF FINANCIAL OFFICER	Mr. Shams Ghani
COMPANY SECRETARY	Mr. Muhammad Imran Akber
BANKERS	Allied Bank Limited
	Bank Al Habib Limited
	Bank Alfalah Limited
	Habib Bank Limited
	Meezan Bank Limited
	MCB Bank Limited
	National Bank Of Pakistan
	Soneri Bank Limited
	Sindh Bank Limited
	Summit Bank Limited
	United Bank Limited
AUDITORS	Parker Russell-A.J.S.
	Chartered Accountants
LEGAL ADVISOR	Mr. Muhammad Jameel Choudhry
REGISTRAR	M/s JWAFFS Registrar Services (Pvt.) Ltd.
	407-408,Al-Ameera Centre
	Shahrah-e-Iraq, Saddar
	Karachi-74400
REGISTERED OFFICE	41-K,Block-6, P.E.C.H.S., Karachi
	Phone. [phone]
	www.sakrandsugar.com
FACTORY ADDRESS	Deh Tharo Unar,Taluka Sakrand
	District Shaheed Benazir Abad, Sindh.

Directors' Report to Members

On behalf of the Board, we are pleased to present the un-audited Condensed Interim Financial statements of the Company for the six months ended March 31, 2024 together with the auditors' review report thereon.

Operational Result

The operational performance for the period under review as compared with that of last year is tabulated hereunder.

		Season
		2023-24	2022-23
Start of Season		Nov 06, 2023	Nov 26, 2022
Season duration		123	80
Operational Days		98	74
Sugarcane crushed	M. Tons	257,489	252,153
Production
Sugar	M. Tons	26,269	25,763
Molasses	M. Tons	13,590	12,343
Recovery
Sugar	%	10.202	10.217
Molasses	%	5.278	4.895

The crushing season 2023-2024 operated for 98 days compared to 74 days in the previous year. Despite of lengthy crushing period the crushing quantum remained almost the same as the management focus was to procure the quality and improved variety of CANE only to avert production losses. The Sindh Government raised minimum support price of cane from PKR 302 per maund to PKR 425 per maund, an increase of 41%. This was a tremendous increase as the main component in the production of Sugar. The other input costs were also on rise due to higher inflationary pressure, thus raising the cost of production which could not transform into selling price of the commodity as usual due to indifferent policies on this particular commodity.

Financial Result

The Financial Result for the period under review is tabulated hereunder.

		Rupees in millions
Description		Oct - March	Oct -March
		2024	2023
Sales - net		2,592.37	2,032.14
Gross profit		42.31	25.57
Profit/(loss) before taxation		(49.72)	(73.27)
Profit/(loss) after taxation		(82.13)	(98.67)
Loss per Share	Rs.	(1.84)	(2.21)

During the period under review Cane Cost per kg of sugar produced stood at 113/- as against PKR 76/- in the previous year an increase of PKR 37/- per KG. Whereas the selling price (exclusive of Sales Tax) of Sugar in the current year stood at PKR 105/- per KG as against a selling price of PKR 72/- per KG a year earlier an increase of PKR 33/- per KG. This denotes the reasons for adverse results as the cost keeps on increasing more than the revenue.

Sugar Production in the Country during the current year i.e. 2023-2024 was 6.8 million metric tons. Adding carryover stock from last year of 0.7 million metric tons, the total available quantity stands at 7.5 million metric tons, as against our annual consumption requirement of 6.0 million metric tons, thus having a surplus of 1.5 million metric tons valuing at 1.0 Billion US Dollars. PASMA (Pakistan Sugar Mills Association) is on rigorous follow up with the Government for Export permission but of no avail as yet.

The Government policies aims at following administrative and coercive measures against sugar mills and do not allow market to operate based on free trade mechanism. They make the sugar mills purchase sugarcane at higher prices and sell the finished product at the low prices.

Acknowledgement

The Directors place on record their appreciation for devotion of duty, loyalty and hard work of the executives, officers, staff members and workers for smooth running of the company's affairs and hope that they will continue for enhancement of productivity with great zeal and spirit under the blessings of Almighty Allah.

On behalf of the Board of Directors

Chairman/Director	Chief Executive Officer
Karachi
May 30, 2024

Start of Season

Season duration

Operational Days

Sugarcane crushed	M. Tons
Production
Sugar	M. Tons
Molasses	M. Tons
Recovery
Sugar	%
Molasses	%

Season

2023-24	2022-23
Nov 06, 2023	Nov 26, 2022
123	80
98	74
257,489	252,153
26,269	25,763
13,590	12,343
10.202	10.217
5.278	4.895

	Condensed Interim Statement of Financial Position
	As at March 31, 2024
		(Un-Audited)	(Audited)
		March 31,	September 30,
		2024	2023
	Note	…….Rupees in '000' .…….
Assets
Non-current assets
Property, plant and equipment	5	3,830,133	3,847,298
Intangible asset		1,263	1,513
Long-term loans		1,016	191
Long-term deposits		2,860	2,860
		3,835,272	3,851,862
Current assets
Store, spares and loose tools		116,206	108,823
Stock-in-trade	6	739,425	32,855
Trade debts		1,811	1,188
Loans and advances		71,150	46,458
Deposits, prepayments and other receivables		91,150	94,861
Short term investment		-	10,000
Cash and bank balances	7	14,216	5,611
		1,033,958	299,796
Total assets		4,869,230	4,151,658
Equity and liabilities
Share capital and reserves
Authorized share capital		600,000	600,000
Issued, subscribed and paid-up share capital		446,160	446,160
Accumulated loss		(1,736,956)	(1,672,931)
Surplus on revaluation of property, plant
and equipment-net of deferred tax		2,113,105	2,131,204
Directors' / sponsors' subordinated loan		92,767	92,767
		915,076	997,200
Non-current liabilities
Long term financing - secured	8	664,873	686,673
Deferred liabilities		68,137	67,342
Deferred Taxation	13	-	-
		733,010	754,015
Current liabilities
Trade and other payables		2,434,884	1,675,780
Unclaimed dividend		6,198	6,198
Unpaid dividend		30	30
Accrued mark-up		483,110	461,091
Current maturity of long-term financing		234,018	223,218
Tax payable - net		62,904	34,126
		3,221,144	2,400,443
Contingencies and commitments	9	-	-
Total equity and liabilities		4,869,230	4,151,658

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

Chief Executive Officer

Chief Financial Officer

Director

Condensed Interim Statement of Profit or Loss

For the half year ended March 31, 2024 (Un-audited)

		Half year ended	Quarter ended
		March 31,	March 31,	March 31,	March 31,
		2024	2023	2024	2023
	Note	…....................Rupees	in '000'…
Sales - net	10	2,592,365	2,032,140	1,512,652	1,335,285
Cost of sales	11	(2,550,052)	(2,006,567)	(1,407,539)	(1,234,000)
Gross profit		42,313	25,573	105,113	101,286
Operating expenses
Administrative expenses		(92,085)	(76,654)	(44,800)	(41,142)
Selling and distribution cost		(6,918)	(3,441)	(4,955)	(2,135)
		(99,003)	(80,095)	(49,755)	(43,277)
Operating (loss) / profit		(56,690)	(54,522)	55,358	58,009
Finance cost		(27,175)	(21,157)	(13,715)	(10,828)
Other income	12	34,145	2,411	34,145	2,411
		6,970	(18,747)	20,430	(8,417)
Loss / (profit) before taxation		(49,720)	(73,269)	75,788	49,592
Taxation-net	13	(32,405)	(25,402)	(18,909)	(22,810)
Loss / (profit) after taxation		(82,125)	(98,671)	56,879	26,782
Loss / (earning) per share
basic and diluted (Rs.)		(1.84)	(2.21)	1.27	0.60

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

Chief Executive Officer

Chief Financial Officer

Director