SHAHTAJ
SUGAR MILLS LIMITED
CONDENSED INTERIM FINANCIAL STATEMENTS
(UN-AUDITED)
FOR THE HALF YEAR ENDED
31 MARCH 2023
Shahtaj Sugar Mills Limited
Contents
Company Information | 02 |
Directors' Report to the Members (English) | 03 |
Directors' Report to the Members (Urdu) | 06 |
Independent Auditor's Review Report | 07 |
Condensed Interim Statement of Financial Position | 08 |
Condensed Interim Statement of Profit or Loss (Un-audited) | 10 |
Condensed Interim Statement of Comprehensive Income (Un-audited) | 11 |
Condensed Interim Statement of Changes in Equity (Un-audited) | 12 |
Condensed Interim Statement of Cash Flows (Un-audited) | 13 |
Selected Notes to the Condensed Interim Financial Statements (Un-audited) | 14 |
Company Information
Board of Directors
Mr. Toqueer Nawaz | Chairman |
Mr. Muneer Nawaz | Chief Executive |
Mr. M. Naeem | |
Mrs. Samia Shahnawaz Idris | |
Mr. Rashed Amjad Khalid | |
Mr. Abid Nawaz | |
Ms. Ava Ardeshir Cowasjee | |
Mr. Suleman Lalani | J.S.I.L |
Mr. Mushtaq Ahmad | S.L.I.C. |
Mr. Sheikh Asim Rafiq | N.I.T. |
Company Secretary
Mr. Jamil Ahmad Butt, FCMA
Chief Financial Officer
Mr. Waqar Ahmad, FCA
Audit Committee
Mr. Mushtaq Ahmad | Chairman |
Mr. Toqueer Nawaz | |
Mr. M. Naeem | |
Mr. Rashed Amjad Khalid |
Human Resource &
Remuneration Committee
Mr. Muhammad Salman Hussain Chawala* Chairman
Mr. Muneer Nawaz
Mr. M. Naeem
Mr. Rashed Amjad Khalid
Head Office
72/C-1, M. M. Alam Road,
Gulberg III, Lahore - 54660.
Phone | : | (042) | 3571 0482 - 84 |
Fax | : | (042) | 3571 1904 |
Website | : | www.shahtajsugar.com | |
: | mail@shahtajsugar.com |
Production Facility
Mandi Bahauddin - 50400.
Phone | : | (0546) | 501 147 - 49 |
(0546) | 508 047 - 48 | ||
Fax | : | (0546) | 501 768 |
: | mills@shahtajsugar.com |
Auditors
Riaz Ahmad & Company
Chartered Accountants,
10-B, Saint Mary Park,
Main Boulevard, Gulberg-III,
Lahore - 54660.
Legal Advisor
Mr. Ras Tariq Chowdhary,
52 - Ravi Block, Fort Green,
Canal Road, Lahore.
Share Registrar
JWAFFS Registrar Services (Private) Limited, Suite No. 407 - 408,
4th Floor, Al-Ameera Centre, Shahrah-e-Iraq, Saddar, Karachi.
Bankers
United Bank Limited
Habib Bank Limited
MCB Bank Limited
Bank Alfalah Limited
Bank AL-Habib Limited
JS Bank Limited
Allied Bank Limited
National Bank of Pakistan
Soneri Bank Limited
Registered Office
19, Dockyard Road,
West Wharf, Karachi - 74000.
Phone | : | (021) | 3231 3934 - 38 |
Fax | : | (021) | 3231 0623 |
: | jamilbutt@shahtaj.com |
*Mr. Muhammad Salman Hussain Chawala resigned since 16 January 2023.
2
Shahtaj Sugar Mills Limited
Directors' Report to the Members
Your Directors have pleasure in presenting the un-audited condensed interim financial statements for the six month period
ended 31 March 2023. | . |
Operational performance of the present crushing season as compared with that of last year is produced below:
31 March | |||
Production Data | 2023 | 2022 | |
Start of Season | 25.11.2022 | 20.11.2021 | |
End of Season | 08.03.2023 | 25.03.2022 | |
Duration | Days | 103 | 126 |
Sugarcane Crushed | (M. Tons) | 786,325 | 1,031,923 |
Production: | |||
Sugar | (M. Tons) | 77,600 | 91,603 |
Molasses | (M. Tons) | 32,644 | 45,786 |
Recovery: | |||
Sugar | % | 9.87 | 8.88 |
Molasses | % | 4.15 | 4.44 |
We were able to produce 77,600 M. Tons of sugar i-e lower by about 15% than last season after crushing available sugarcane of our own area as well as from adjoining areas. The sugarcane crushed for the season was decreased because of lesser availability of sugarcane due to decrease in area under cultivation and less yield per acre. We endeavored our best to procure maximum sugarcane from the outside areas to maximize the production but could not succeed due to lower sugarcane availability. In this season, only 9% of sugarcane was purchased from outside areas. However, recovery percentage of sugar was much better as compared with the corresponding period of last year due to healthy sugarcane crop with high sucrose contents and better weather conditions.
The Government of Punjab increased the notified minimum purchase price of sugarcane for the season from Rs. 225/- to Rs. 300/- per 40 kg. Due to significant increase in minimum purchase price of sugarcane to Rs. 300/- per 40 Kg, the average sugarcane procurement cost for the season was Rs. 308.14/- per 40 Kg as compared with Rs. 240.83/- per 40 Kg of corresponding season of year 2021-2022. This is almost 28% more as compared with the last season. This increase in sugarcane purchase cost would affect the financial performance of the company.
Sugar price during the six month period was less than the corresponding period due to production glut and oversupply of sugar in the market. To overcome this situation the Government has allowed overall 250,000 MT export of sugar, Punjab's share was 61%. However, export quota was very nominal keeping in view the excess carryover stocks of sugar of previous season. Further molasses price during the period under review was better as compared to corresponding period due to high international prices of ethanol.
For the six month period, your Company recorded a turnover of Rs. 5,721.688 million as against Rs. 3,630.642 million in the corresponding period of 2022. The cost of sales was Rs. 5,054.506 million as against Rs. 3,080.510 million of the corresponding period. Thus, the Company has a gross profit of Rs. 667.182 million for the six month period ended 31 March 2023 as against a gross profit of Rs. 550.132 million of the corresponding period. The gross margin for the period was 11.66% as compared with 15.15% of the corresponding period. The significant decrease in gross margin was due to increase in the prices of raw and packing materials because of inflationary impact due to devaluation of PKR. The net profit has been recorded to Rs. 86.916 million against the profit of Rs. 148.112 million of the corresponding period. The earnings per share is Rs. 7.24 against Rs. 12.33 of corresponding period of 2022. The finance cost for the period was Rs. 273.022 million as against Rs. 173.610 million of the corresponding period due to high utilization of banking facilities and drastic increase in policy rate. The country is in the grip of highest ever inflation which has also affected our profitability and rest of the industry. The SBP policy rate is at its highest level of 21% because of which there has been significant increase in the financial cost both for the quarter and the half year. This high level of inflation and financial cost would have an impact on the annual results.
For the three month period ended 31 March 2023, your Company recorded a turnover of Rs. 3,890.231 million as against Rs. 2,067.293 million in the corresponding period of 2022. The cost of sales was Rs. 3,476.171 million as against Rs. 1,818.707 million of the corresponding period. Thus, the Company has a gross profit of Rs. 414.060 million for the three month period
3
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Shahtaj Sugar Mills Ltd. published this content on 29 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 May 2023 10:32:06 UTC.