shahmurad 3rd quarter 2018 · title: shahmurad 3rd quarter 2018.fh10 author: abdul mateen created...

SHAHMURAD SUGAR MILLS LIMITED

3rd Quarterly Results for the period

1st October 2017 to 30th June, 2018

SHAHMURAD SUGAR MILLS LTD.

1

COMPANY INFORMATION

BOARD OF DIRECTORSMR. ISMAIL H. ZAKARIA ChairmanMR. YUSUF AYOOB Managing DirectorMR. SULEMAN AYOOBMR. A. AZIZ AYOOBMR. ZIA ZAKARIA Resident DirectorMR. NOOR MOHAMMAD ZAKARIAMR. ZOHAIR ZAKARIAMR. NAEEM AHMED SHAFI Independent DirectorMR. KHURRAM AFTAB (N.I.T. Nominee)

BOARD AUDIT COMMITTEEMR. NAEEM AHMED SHAFI ChairmanMR. SULEMAN AYOOB MemberMR. ZOHAIR ZAKARIA Member

HUMAN RESOURCE AND REMUNERATION COMMITTEEMR. SULEMAN AYOOB ChairmanMR. YUSUF AYOOB MemberMR.NOOR MOHAMMAD ZAKARIA Member

CHIEF FINANCIAL OFFICERMR. IQBAL UMER

COMPANY SECRETARYMR. MOHAMMAD YASIN MUGHAL FCMA

AUDITORSM/s. KRESTON HYDER BHIMJI & CO.Chartered Accountants

LEGAL ADVISORMR. ABDUL SATTAR PINGAR Advocate

REGISTERED OFFICE96-A, SINDHI MUSLIM HOUSING SOCIETY,KARACHI-74400Tel: 34550161-63 Fax: 34556675

FACTORYJHOK SHARIF,TALUKA MIRPUR BATHORO,DISTRICT SUJAWAL (SINDH)

REGISTRAR & SHARES REGISTRATION OFFICEM/s. C & K MANAGEMENT ASSOCIATES (PVT) LTD.404-TRADE TOWER,ABDULLAH HAROON ROAD,NEAR METROPOLE HOTEL,KARACHI - 75530

WEBSITEwww.shahmuradsugar.co


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Dear members:

Assalam-o-Alaikum

On behalf of Board of Directors' I take the opportunity to place before you the un-auditedfinancial statements of your company for the period ended June 30, 2018.

Salient features of production and Financial Statements are as under:

DIRECTORS' REPORT

Segment wise performance is elaborated as under:

SUGAR DIVISION

During the period under review the mill crushed 744,578 metric tons of cane and produced82,366 metric tons of sugar. During the same period last year the mill crushed 672,747 metrictons of cane and produced 72,755 metric tons of sugar. The current period production ismore than last year by 13.21 percent or 9,611 metric tons. The increase in production ofsugar was mainly due to higher volume of crushing and also increase in the recoverypercentage which increased to 11.06 from 10.82 percent achieved last year. The sugarcanecrop was also good in the vicinity of the mill which assisted higher crushing and productionof sugar as compared with the similar targets of last period. The price of sugar cane wasnotified by the government of Sindh at Rs 182 per 40 kg which was the same as fixed forthe crushing season 2016-17. However the price of sugar declined substantially during theperiod under review and the sugar mills filed a case before the honorable High Court ofSindh. The honorable High Court of Sindh gave an interim decision that the sugar mills willpurchase sugar cane at the rate of 160 per 40 kg and the balance would be decided by thehonorable Supreme Court of Pakistan.

June 30, 2017June 30, 2018

Crushing commenced on 28-11-2017 28-11-2016Crushing completed up to 02-04-2018 18-03-2017Duration of crushing (days) 126 111Sugarcane crushed (M Tons) 744,578 672,747Sugar produced (M Tons) 82,366 72,755Sugar recovery percentage 11.06 10.82Molasses produced (M Tons) 35,310 30,750Ethanol Production (M Tons) 31,142 21,798

PRODUCTION DATA

Sales revenue 5,414,067 3,240,459 Cost of sales (4,953,861) (2,888,570)Gross profit 460,206 351,889 Administration cost (159,766) (155,235)Selling and distribution expenses (461,707) (119,872)Other operating expenses net of income 750,854 9,213Financial cost (152,721) (147,076)Profit / (loss) before taxation 436,866 (61,081)Provision for taxation (79,941) 63,756Profit after taxation 356,925 2,675Earnings per share Rs.16.90 Re.0.13

(Rupees in thousands)FINANCIAL DATA


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Karachi:Dated: July 26, 2018

YUSUF AYOOBManaging Director

Due to the huge cane crop for the crushing season and the carry over stock of sugar fromthe previous year a surplus of approximately 2.5 million tons is expected. The excessproduction in the local market and international market has kept the local prices of sugarunder pressure. Due to this alarming situation the Federal Government allowed an initialexport of 1.5 million tons of sugar with an export subsidy of Rs.10.70 per kg. ProvincialGovernment also announced an export subsidy of Rs.9.30 per kg of the product exported.Your company up to June 30th 2018 exported 60,768 metric tons of sugar and earnedvaluable foreign exchange for the country. Unfortunately due to extremely slow release ofsubsidy payments and depressed international prices export quota still remain unutilized asof June 30, 2018.

ETHANOL DIVISION

During the period under consideration the Ethanol Division produced 31,142 metric tons ofethanol as against 21,798 metric tons produced in the same period of last year. The productionof ethanol is higher than the previous years' production as the capacity of the plant has beenenhanced. Newly installed plant and machinery has commenced trial production with effectfrom May 18, 2018 and it is expected that the production would further increase during theremaining period of the year. Full benefit of the capacity enhancement would emerge duringthe next year.

FUTURE OUTLOOK

It is expected that during the next crushing season cane crop in Punjab and KPK would besurplus; however cane crop in Sindh would be seriously affected due to non availability ofwater. We hope that the Government takes timely decision for export as well as building upbuffer stock which would be the only way to stabilize domestic sugar prices.

Future outlook of ethanol division appears to be positive as the capacity of the division hasbeen increased by about hundred percent.

BOARD OF DIRECTORS

During the period under consideration there was no change in the composition of Board ofDirectors.

The Board of Directors wishes to assure its respectable stakeholders for the dedicated effortsto achieve the success with better planning to overcome, In Sha Allah, the difficult situationbeing faced presently by the sugar industry of the country. Please extend your pray toAlmighty Allah to guide / help us to achieve the desired goals. (Ameen)


ZIA ZAKARIADirector


IQBAL UMERChief Financial Officer

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CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)AS AT JUNE 30, 2018

(Rupees in thousand)

Un-AuditedJune2018

Audited September

2017

NoteASSETS

NON CURRENT ASSETS

Property, plant and equipment 4 4,151,957 3,052,313Long term investment in associate 2,673 2,673Long term loans 2,287 1,535Long term deposits 2,429 2,429Deferred taxation 54,777 81,034

4,214,123 3,139,984CURRENT ASSETS

Stores, spare parts and loose tools 197,335 166,501 Stock-in-trade 3,580,714 2,359,550 Trade debts 400,257 454,573 Loans and advances 516,764 483,153 Trade deposits and short term prepayments 4,675 5,903 Other receivables - Export subsidy announced by Federal

and Provincial Governments on export sale of sugar 435,689 - Income tax refundable-Net 49,868 29,014 Cash and bank balances 85,115 38,492

5,270,417 3,537,186 9,484,540 6,677,170

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorised Capital 25,000,000 ordinary shares of Rs. 10 each 250,000 250,000

Issued, subscribed and paid-up capital 211,187 211,187 General reserve 80,000 80,000 Share of associate's unrealized loss on re-measurement of its investment (1,885) (1,885) Unappropriated Profit 1,207,337 842,010 Surplus on Revaluation of Property, Plant & Equipment 527,746 546,707

2,024,385 1,678,019

NON CURRENT LIABILITIES

Long term financing 1,723,631 1,542,234

CURRENT LIABILITIES

Trade and other payables 1,154,015 445,217 Accrued finance cost 72,312 37,956 Short term borrowings 4,120,409 2,602,820 Loan from related parties 167,336 194,836 Current portion of long term financing 218,472 172,222 Unclaimed dividend 3,980 3,866

5,736,524 3,456,917CONTINGENCIES AND COMMITMENTS 5 - -

9,484,540 6,677,170

The annexed notes from 1 to 13 form an integral part of this condensed interim financial information.


Sales 5,414,067 3,240,459 1,385,446 889,407

Cost of Sales 6 (4,953,861) (2,888,570) (1,078,065) (898,172)

Gross profit 460,206 351,889 307,381 (8,765)

Profit / (Loss) from

trading activities 303 2,199 289 213

460,509 354,088 307,670 (8,552)

Distribution cost (461,707) (119,872) (96,962) (10,697)

Administrative expenses (159,766) (155,235) (56,758) (51,401)

Other operating charges (37,099) (1,977) (21,217) 5,106

(658,572) (277,084) (174,937) (56,992)

Operating (Loss) / Profit (198,063) 77,004 132,733 (65,544)

Other income - including Export

subsidy announced by Federal

and Provincial Governments

on export sale of sugar" 787,650 8,991 215,680 2,304

589,587 85,995 348,413 (63,240)

Finance cost (152,721) (147,076) (72,397) (69,784)

Profit/(loss) before taxation 436,866 (61,081) 276,016 (133,024)

Taxation

-Current (53,684) (26,918) (13,963) (10,240)

-Deferred (26,257) 90,674 (18,329) 68,746

(79,941) 63,756 (32,292) 58,506

Profit/(loss) after taxation 356,925 2,675 243,724 (74,518)

Earning per share-Basic and

diluted - Rupees 16.90 0.13 11.54 (3.53)

The annexed notes from 1 to 13 form an integral part of this condensed interim financial

information.

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For the nine months

October to June

2018 2017

For the Quarter

April to June

2018 2017


CONDENSED INTERIM STATEMENT OF PROFIT & LOSS (UN-AUDITED)FOR THE NINE MONTHS PERIOD ENDED JUNE 30, 2018

Notes

ZIA ZAKARIADirector




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CONDENSED INTERIM STATEMENT OFCOMPREHENSIVE INCOME (UN-AUDITED)FOR THE NINE MONTHS PERIOD ENDED JUNE 30, 2018

For the nine months

October to June

2018 2017

For the Quarter

April to June

2018 2017


Profit/(loss) after taxation 356,925 2,675 243,724 (74,518)

Other comprehensive income - - - -

Total comprehensive income

for the period 356,925 2,675 243,724 (74,518)

The annexed notes from 1 to 13 form an integral part of this condensed interim financial

information.

ZIA ZAKARIADirector




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CONDENSED INTERIM STATEMENT OF CASH FLOW (UN-AUDITED)FOR THE NINE MONTHS PERIOD ENDED JUNE 30, 2018


June 2018

June2017

A. CASH FLOW FROM OPERATING ACTIVITIES

Profit before taxation 436,866 (61,081)

Adjustment for :

Depreciation 4.1 96,807 99,469

Profit on disposal of property, plant and equipment (2,903) (1,689)

Provision for obsolescence and slow moving items 2,550 1,200

Finance cost 152,721 147,076

249,175 246,056

686,041 184,975

(Increase) / decrease in current assets

Stores, spare parts and loose tools (33,385) 29,654

Stock in trade (1,221,164) (2,793,328)

Trade debts 54,316 11,773

Loans & advances (33,611) (226,151)

Short term prepayments 1,228 (8,975)

Other receivables (435,689) (17)

(1,668,305) (2,987,044)

Increase in current liabilities

Trade and other payables 708,798 543,802

Short term borrowings 1,517,589 2,513,286

2,226,387 3,057,088

1,244,123 255,019

(Increase) / Decrease in long term loan (752) 585

(Increase) in long term deposits - (1)

Income tax paid (74,538) (32,443)

Finance cost paid (118,365) (108,869)

(193,655) (140,728)

Net cash inflow from operating activities 1,050,468 114,291

B. CASH FLOW FROM INVESTING ACTIVITIES

Additions in property, plant & equipment (1,200,582) (118,985)

Sale proceeds from disposal of property, plant and equipment 7,034 6,093

Net cash outflow from investing activities (1,193,548) (112,892)

C. CASH FLOW FROM FINANCING ACTIVITIES

Long term finance received 354,557 800,000

Repayment of long term financing (154,409) (758,110)

Dividend paid (10,445) (50,177)

Net cash inflows from financing activities 189,703 (8,287)

Net increase in cash and bank balances (A+B+C) 46,623 (6,888)

Cash and bank balance at the beginning of the period 38,492 57,363

Cash and bank balance at the end of period 85,115 50,475


Note

ZIA ZAKARIADirector




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CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)FOR THE NINE MONTHS PERIOD ENDED JUNE 30, 2018

Balances as at October 01, 2016 (Audited) 211,187 80,000 (1,813) 859,026 568,723 1,717,123

During the nine months period ended June 30, 2017

Transactions with owners

Final Dividend for 30-September-2016 @ Rs. 2.40 Per Share - - - (50,685) - (50,685)

Total Comprehensive Income for the nine months

period ended June 30, 2017 - - - 2,675 - 2,675

Transfer from surplus on revaluation of property, plant and

equipment on account of incremental depreciation

-net of deferred tax - - - 19,654 (19,654) -

Effect of change in tax rate on deferred tax related to

revaluation surplus - 4,410 4,410

Transfer from revaluation surplus on account of disposal

of propery, plant and equipment net of deferred tax - - - 219 (219) -

- - - 19,873 (15,463) -

Balances at June 30, 2017 211,187 80,000 (1,813) 830,889 553,260 1,673,523

Balances as at October 01, 2017 (Audited) 211,187 80,000 (1,885) 842,010 546,707 1,678,019

During the nine months period ended

June 30, 2018

Transactions with owners

Final Dividend for 30-September-2017 @ Re. 0.50 Per Share - - - (10,559) - (10,559)

Total Comprehensive Income for the nine months

period ended June 30, 2018 - - - 356,925 - 356,925

Transfer from surplus on revaluation of property, plant and

equipment on account of incremental depreciation

-net of deferred tax - - - 18,518 (18,518) -

Transfer from revaluation surplus on account of disposal of

propery, plant and equipment net of deferred tax - - - 443 (443) -

- - - 18,961 (18,961) -

Balances at June 30, 2018 211,187 80,000 (1,885) 1,207,337 527,746 2,024,385



ZIA ZAKARIADirector



Issued,Subscribed& paid up

capital

Share ofAssociate's

unrealised (loss)/gain on

remeasurementof investment

Un-appropriatedprofit

Generalreserves

Total

Capital ReserveSurplus on

revaluation ofProperty Plant& Equipment


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NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONFOR THE NINE MONTHS PERIOD ENDED JUNE 30, 2018

1. The Company and its Operations

The Company was incorporated in Pakistan as a public limited company on April 9, 1979.Its shares are quoted at the Pakistan stock Exchange. The Company owns and operatesSugar and Ethanol manufacturing units which are located at Jhoke Sharif, District Sujawalin the province of Sindh. The company's registered office is located at 96-A, Sindhi MuslimCooperative Housing Society, Karachi, Sindh.

2. Basis of Preparation

2.1 This condensed interim financial information have been prepared in accordance with theaccounting and reporting standards as applicable in Pakistan for interim financial reporting.The accounting and reporting standards as applicable in Pakistan for interim financial reportingcomprise of :

- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by theInternational Accounting Standards Board (IASB) as notified under the Companies Act, 2017;and

- Provisions of and directives issued under the Companies Act, 2017.

Where the provisions of and directives issued under the Companies Act, 2017 differ with therequirements of IAS 34, the provisions of and directives issued under the Companies Act,2017 have been followed. The condensed interim financial information does not include allthe information and disclosures required in the annual financial statements and should beread in conjunction with the company's annual financial statements for the year endedSeptember 30, 2017.

3. Significant accounting policies and disclosures

3.1 The accounting policies and methods of computation followed for the preparation of thiscondensed interim financial information are consistent with those followed in the preparationof the company's annual financial statements for the year ended September 30, 2017, exceptrevaluation surplus on property plant and equipment as stated below note 3.5.

3.2 Due to the seasonal availability of sugarcane, the manufacture of sugar is carried out duringthe period of availability of sugarcane and costs incurred/accrued up to the reporting datehave been accounted for. Accordingly, the costs incurred/accrued after the reporting datewill be reported in the subsequent interim and annual financial statements.

3.3 Certain new IFRSs and amendments to existing IFRSs, effective for periods beginning on orafter October 01, 2017 do not have any impact on the condensed interim financial information,and are therefore not disclosed.

3.4 The preparation of this condensed interim financial information requires management tomake estimates, assumptions and use judgements that affect the application of policies andreported amounts of assets and liabilities and income and expenses. Estimates, assumptionsand judgements are continually evaluated and are based on historical experience and otherfactors, including reasonable expectations of future events. Revisions to accounting estimatesare recognized prospectively commencing from the period of revision. Judgements andestimates made by the management in the preparation of this condensed interim financialinformation are the same as those that were applied to financial statements as at and for theyear ended September 30, 2017.

3.5 Effective from 30 May 2017, the Companies Act, 2017 (the Act) was enacted which replacedand repealed the previous Companies Ordinance, 1984 (the repealed Ordinance). TheCompanies Act introduces new disclosure and presentation requirements and also section235 of the repealed Ordinance relating to treatment of surplus arising on revaluation ofproperty, plant and equipment has not been carried forward in the Act consequently the


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Company has to account for and classify revaluation surplus in accordance with therequirements of IAS 16 � Property, Plant and Equipment�. The Company used to transfersuch surplus to an account called ' Surplus on revaluation of property plant and equipment' which was shown separately in statement of financial position after Capital and Reserves(i.e. Equity) whereas the IAS 16 requires same to be treated as part of equity and also thereis change in treatment of loss on revaluation. Accordingly the Company has made the changesin its accounting policy as per the requirements of the Companies Act, 2017; however, thereis no significant change in the reported amounts so no restatement is required with respectto amount, the only change required is reclassification revaluation surplus as part of equity.In respect of additional disclosures required by the Act will be made in the annual financialstatements of the Company.

4. Property, Plant and Equipment

Operating fixed assets 4.1 2,415,332 2,467,576Capital work in progress 4.2 1,736,625 584,737

4,151,957 3,052,313

4.1 OPERATING FIXED ASSETSOpening book value 2,467,576 2,483,345

Direct additions during the period / yearFurniture, Fixture and Fittings 100 386Office Equipment 2,018 3,224Vehicle 13,449 8,470

15,567 12,080Transfer from CWIP during the period / yearOwned

Non Factory building 1,330 21,902Plant and Machinery 31,797 88,158

33,127 110,060

Disposals - Operating assets (net book value)

Plant and Machinery (1,037) (650)Vehicles (3,094) (3,971)

(4,131) (4,621)Depreciation Charged for the period / year (96,807) (133,288)

Closing book value 2,415,332 2,467,576

4.2 CAPITAL WORK IN PROGRESS

Opening balance 584,737 57,730Additions during the period / year

Civil Works 336,116 158,875Plant & Machinery 848,899 478,192

1,185,015 637,067Capitalization during the period/year

Civil Works (1,330) (21,902)Plant & Machinery (31,797) (88,158)

(33,127) (110,060)

Closing balance 1,736,625 584,737


Un-AuditedJune 30,

2018

AuditedSeptember 30,

2017


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5.2 Commitments

Commitments for capital expenditure 64,850 705,043 Commitments for stores and spares - 27,444

64,850 732,487Bank Gurantees in favor of Excise and Taxation Department 500 500


Un-AuditedJune 30,

2018

AuditedSeptember 30,

2017

For the Nine Month

October to June

2018 2017

For the Quarter

April to June

2018 2017

(Rupees in thousand)6. COST OF SALES

Openign stock of finished goods 1,762,935 851,715 2,360,560 3,158,431Cost of goods manufactured 5,199,494 4,830,946 726,072 533,832

6,962,429 5,682,661 3,086,632 3,692,263

Closing stock of finished goods (Note 6.1) (2,008,568) (2,794,091) (2,008,568) (2,794,091)

4,953,861 2,888,570 1,078,064 898,172

5. CONTINGENCIES AND COMMITMENTS

5.1 Contingencies

There is no material change in status of contingencies as disclosed in note No. 24 (a) of theannual financial statements for the year ended September 30, 2017, except for the following;

5.1.1 During the period under review, the Government of Sindh issued a notification no. 8(142)/S.O(EXT)2017, according to which, the minimum price of sugarcane has been fixed at therate of Rs. 182 per 40 kg for the crushing season 2017-2018. The Sugar mills, against thesaid notification, has filed a petition in the High Court of Sindh. Thereafter, the HonourableCourt after deliberations with all stakeholders announced the judgement fixing the purchaseprice at the Rs. 160 to be paid to growers and the balance of Rs. 22 per 40 kg to be decidedby the Supreme Court of Pakistan. However, the Company, as a matter of prudence accountedfor the said difference of Rs. 22 per 40 kgin this condensed interim financial informationaggregating to Rs.409.518 million.

5.1.2 During the period under review, the appeal of the quality premium, as disclosed in note no24.4 of the annual financial statements of the Company, has been decided by the HonourableSupreme Court of Pakistan against the Company. The Legal Counsel of the Company is ofthe view that the Honourable Supreme Court has now simply prescribed the criteria for future,which if followed properly, would make quality premium applicable in the future, and in relationto the past (other than crushing season 1998 � 1999) it appears that no liability arose as nolegally binding notification under section 16(v) can be said to be in the field in the light of thedecision of the Honourable Supreme Court. Accordingly, no liability arises for the past exceptfor the year 1998 � 99 for which quality premium amounted to Rs. 93.7 million against whichno provision is made as the Company has already paid price higher than the minimum notifiedprice for the said year.


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6.1 Finished goods costing Rs. 1,918.459 million (June 2017: Rs. 2,686.645 million) have beenwritten down to their net relaizable value of Rs. 1,823.575 million (June, 2017 : Rs. 2,468.973million). At period end stock pledged against short term borrowings amounted to Rs. 1,350million (June 2017 : 1,870 million).

7. TRANSACTION WITH RELATED PARTIES

Related parties comprises of associated entities, staff retirement funds, directors and keymanagement personnel. The transactions with balances of related parties during the period/asat period end are given below:

Transactions:Relationship with the Company Nature of Transactions

AssociatesAl-Noor Sugar Mills Limited -Purchase of Goods 319,351 416,142Reliance Insurance Company Ltd -Insurance premium 16,739 14,230

-Insurance claim 780

Other related partiesDirectors' and key management personnel -Directors remuneration 17,872 18,098

-Executive remuneration 35,210 48,487-Non-executive directors' meeting fee 95 95

Staff provident fund excluding Directors -Company's Contribution during the period 4,023 3,625


June2018

June2017

Balances:Relationship with the Company Nature of Transactions

AssociatesAl-Noor Sugar Mills Limited Advances 32,988 -Reliance Insurance Company Ltd Trade & other payables 12,269 -Staff provident fund Trade & other payables 1,146 287


June2018

September2017

8 RELATIONSHIP WITH THE ISLAMIC AND CONVENTIONAL FINANCIALINSTITUTION

The Company in the normal course of business deals with sole Islamic financialinstitutions as well as the financial institutions who operate both the conventional sideand Islamic window. The details segregation between Shariah complaints andconventional assets/liabilites and income/expenditure are given below:

Long term financing-Musharka

and others finance 1,097,500 626,131 1,723,631 1,206,250 335,984 1,542,234

Current portion of long term finance 140,000 78,472 218,472 93,750 78,472 172,222

1,237,500 704,603 1,942,103 1,300,000 414,456 1,714,456

Trade and other payables

-Murabaha/Istisna 120,000 - 120,000 120,000 - 120,000

Accrued finance cost 24,044 48,268 72,312 12,739 12,921 25,660

Short term borrowings 400,000 3,720,409 4,120,409 - 2,602,820 2,602,820

Cash at banks (4,394) (80,721) (85,115) (7,097) (31,395) (38,492)

1,777,150 4,392,559 6,169,709 1,425,642 2,998,802 4,424,444

As at June 30, 2018

Rupees in thousand

Islamic Mode Conventional Total

As at September 30, 2017

Rupees in thousand



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9. SEGMENT INFORMATION

The Company's operating businesses are organized and managed separately accordingto the nature of products produced with each segment representing a strategic businessunit that offer different products and serves different markets. The sugar segment isengaged in manufacturing and sale of the sugar and its by products whereas ethanolsegment is engaged in manufacturing and sale of ethanol. The following tablesrepresents revenue and profit information regarding business segment for the half yearended June 30, 2018 and June 30, 2017 and assets and liabilities information regardingbusiness segments as at June 30, 2018 and September 30, 2017.

2018 2017 2018 2017 2018 2017

Nine months periodended June 30,



Sugar Ethanol Consolidated


June2018

September2017

June2018

September2017

June2018

September2017


SEGMENT ASSETS AND LIABILITIES

Assets

Segment assets 4,317,178 3,614,453 5,002,222 2,918,431 9,319,400 6,532,884

Un-allocated assets 162,467 141,613

Long term investment 2,673 2,673

Total assets 9,484,540 6,677,170

Liabilities

Segment liabilities 5,086,083 3,097,499 2,341,713 1,901,652 7,427,796 4,999,151

Unallocated liabilites 32,359 -

7,460,155 4,999,151

REVENUE

External Sales 2,924,721 1,699,077 2,489,346 1,541,383 5,414,067 3,240,460

Inter segment transfer 256,069 261,375 - - 256,069 261,375

Total 3,180,790 1,960,452 2,489,346 1,541,383 5,670,136 3,501,835

RESULTS

(Loss)/profit from operation (785,483) (200,907) 624,519 279,888 (160,964) 78,981

Other operating expenses (37,099) (1,977)

Other income - including

Export subsidy announced by

Federal and Provincial

Governments on export

sale of sugar 787,650 8,991

Finance cost (152,721) (147,076)

Profit before tax 436,866 (61,081)

Taxation (79,941) 63,756

Profit for the period 356,925 2,675

Finance cost 50,502 102,219 152,721 57,957 89,119 147,076

Income from PLS bank account - (7) (7) - - -

50,502 102,212 152,714 57,957 89,119 147,076

Nine months ended June 30, 2018

Rupees in thousand


Nine months ended June 30, 2017

Rupees in thousand



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Revenue from major customers

During the period external sales to major customers amounted to Rs. 3,523 million.(June 2017: Rs. 1,491 million)

Geographical information

All non-current assets of the Company are located in Pakistan. Company's local externalsales represent sales to various external customers in Pakistan as well as outsidePakistan as follows:

2018 2017 2018 2017 2018 2017

Nine Month June 30, Nine Month June 30, Nine Month June 30,


OTHER INFORMATION

Additions to property, plant

and equipment 108,306 81,507 1,092,276 37,478 1,200,582 118,985

Depreciation 55,269 55,995 41,538 43,474 96,807 99,469

Pakistan 741,727 993,916Asian countries other than Pakistan 3,509,589 1,428,846Europe 1,162,751 817,698

5,414,067 3,240,460

10 WORKERS PROFIT PARTICIPATION FUND, WORKERS WELFARE FUND ANDTAXATION

Allocation to the Worker's Profit Participation Fund, Worker's Welfare Fund and provisionfor taxation are provisional. Final Liability would be determined on the basis of annualresults.

11 FAIR VALUES

Fair value is the price that would be received to sell an asset or paid to transfer a liabilityin an orderly transaction in the principal (or most advantageous) market at themeasurement date under current market conditions (i.e. an exit price) regardless ofwhether that price is directly observable or estimated using another valuation technique.

The Company while assessing fair values uses calcuation techinques that are appropriatein the circumstances using relevant observable data as far as possible and minimizingthe use of unobservable inputs. Fair values are categorized into following three levelsbased on the input used in the valuation techinques:

- Level 1: Quoted prices in active markets for identical assets or liabilities that canbe assessed at measurement.

- Level 2: Inputs other than quoted prices included within level 1 that are observablefor the asset or liability, either directly (that is, as prices) or indirectly (that is, derivedfrom prices)


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- Level 3: Inputs are unobservable inputs for the asset or liability. Inputs for the assetor liability that are not based on observation market data (that is, unobservableinputs).

Financial assets and liabilities of the Company are either short term in nature orare repriced periodically therefore; their carrying amounts approximate their fairvalues.

12 AUTHORIZATION

This condensed interim financial information was authorized for issue on July 26, 2018by the Board of Directors of the Company.

13 GENERAL

13.1 Figures have been rounded off nearest to thousand rupees.

ZIA ZAKARIADirector




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shahmurad 3rd quarter 2018 · title: shahmurad 3rd quarter 2018.fh10 author: abdul mateen created...

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