Al Abbas Sugar Mills : Transmission of Quarterly Report for the period ended March 31, 2022

AL-ABBAS01

SUGAR MILLS LTD.

Contents

Company information	2
Directors' Review Report	3
Report on Review of Interim Financial Statements	7
Condensed Interim Statement of Financial Position (Un-audited)	8
Condensed Interim Statement of Profit and Loss Account (Un-audited)	9
Condensed Interim Statement of Other Comprehensive Income (Un-audited)	10
Condensed Interim Statement of Changes in Equity (Un-audited)	11
Condensed Interim Statement of Cash Flow (Un-audited)	12
Notes to the Condensed Interim Financial Information (Un-audited)	13
Directors' Review Report - Urdu	29

02 Half Yearly Report

March 2022

COMPANY INFORMATION

BOARD OF DIRECTORS		STATUTORY AUDITORS
Zakaria Usman	Chairman	BDO Ebrahim & Co.
Asim Ghani	Chief Executive Officer	Chartered Accountants
Asma Aves Cochinwala	Director
Darakshan Zohaib	Director	COST AUDITORS
Haroon Askari	Director
Muhammad Salman Hussain Chawala	Director	UHY Hassan Naeem & Co.
Shahid Hussain Jatoi	Director
Chartered Accountants
Siddiq Khokhar	Director
Suleman Lalani	Director
		REGISTERED OFFICE
COMPANY SECRETARY
		2nd Floor, Pardesi House, Survey No. 2/1,
Zuhair Abbas		R.Y. 16, Old Queens Road, Karachi - 74000
CHIEF FINANCIAL OFFICER		Tel: [phone]
	Fax: [phone]
		Website: www.aasml.com
Samir Hajani
		SHARE REGISTRAR OFFICE
AUDIT COMMITTEE
		M/s. CDC Share Services Limited
Haroon Askari	Chairman	CDC House-99B, Block 'B', S.M.C.H.S
Asma Aves Cochinwala	Member	Main Shahra-e-faisal,Karachi-74400
Darakshan Zohaib	Member
Muhammad Salman Hussain Chawala	Member	FACTORIES/STORAGE LOCATIONS
Zakaria Usman	Member
Suhaib Afzal	Secretary	1) Mirwah Gorchani, Distt. Mirpurkhas, Sindh
		2) Main National Highway, Dhabeji, Sindh
HUMAN RESOURCE AND REMUNERATION COMMITTEE
		3) Oil Installation Area, Kemari, Karachi, Sindh
Haroon Askari	Chairman
Asim Ghani	Member
Shahid Hussain Jatoi	Member
Siddiq Khokhar	Member
Suleman Lalani	Member
Zakaria Usman	Member	RISK MANAGEMENT COMMITTEE

BANKERS	Muhammad Salman Hussain Chawala	Chairman
	Asim Ghani	Member
Al Baraka Bank Pakistan Limited	Darakshan Zohaib	Member
Allied Bank Limited	Siddiq Khokhar	Member
Member
Askari Bank Limited
Bank Alfalah Limited
Habib Metropolitan Bank Limited
MCB Bank Limited
MCB Islamic Bank
National Bank of Pakistan
The Bank of Punjab
Meezan Bank Limited
Samba Bank Limited
Soneri Bank Limited
United Bank Limited

AL-ABBAS03

SUGAR MILLS LTD.

DIRECTORS' REVIEW REPORT

Dear Members,

Assalam-o-Alaikum!

On behalf of the Board of Directors we take this opportunity to place before you condensed interim financial statements for the half year ended March 31, 2022.

Financial performance

The financial results of the Company for the six months ended March 31, 2022 and those pertaining to its corresponding period are summarized below for comparison purposes:

	Half Year Ended	Half Year Ended
	March 31, 2022	March 31, 2021
		(Rupees in thousands)
Operating profit	487,739		387,446
Finance cost	(54,100)		(38,161)
		433,639			349,285
Other Income	99,916		52,978
Profit before taxation		533,555			402,263
Taxation	(52,363)		(29,683)
Profit after taxation		481,192			372,580
Basic earnings per share (Rupees)	27.71		21.46

During the period under review, your company has earned an after-tax profit of Rs. 481.192 million as compared to an after-tax profit of Rs. 372.580 million in the corresponding period of last year thus registering an increase of Rs. 108.612 million. The main reason of increase in profit was higher dispatch of sugar and ethanol.

SUBSEQUENT EVENT AND DIVIDEND

The Board of Directors in their meeting held on May 30, 2022 has declared an interim cash dividend of Rs. 10 per shares i.e. 100% for the half Year ended March 31, 2022. These condensed interim financial statements do not include the effect of interim dividend.

OPERATING SEGMENT RESULTS

The division-wise performance is presented below:

SUGAR Division

The financial and operational performance of our Sugar division during the half year ended March 31, 2022 is presented below:

04	Half Yearly Report
March 2022
	Financial Performance	Half Year Ended	Half Year Ended
			March 31, 2022		March 31, 2021
				(Rupees in thousands)
	Sales	1,063,265			394,783
	Cost of Sales	(910,551)			(368,178)
	Gross profit		152,714				26,605
	Distribution cost	(5,924)			(3,239)
	Administrative result	(43,410)			(57,669)
	Segment operating result		103,380				(34,303)
	Other operating expenses - allocated	(7,616)			-
	Finance cost	(24,480)			(12,048)
	Other income - allocated	2,096			5,179
	Profit / (loss) before taxation		73,380				(41,172)
	Taxation - allocatd	(19,256)			(5,930)
	Profit / (loss) after taxation		54,124				(47,102)
			Half Year Ended	Half Year Ended
			March 31, 2022		March 31, 2021
				(Rupees in thousands)
	Operational performance	2021-22			2020-21
	Date of start of season	November 19, 2021	November 06, 2020
	No. of days mill operated	100			79
	Crushing (M. Tons)	501,010			370,402
	Production from sugarcane (M. Tons)	53,945			38,440
	Sales during the period (M. Tons)	12,852			5,667
	Sucrose Recovery	10.77%			10.38%

Net sales of Sugar segment in the current period were Rs 1,063.265 million in contrast to previous corresponding period of Rs 394.782 million registering an increase of Rs 668.482 million. The main reason for increase in sales was due to higher sugar dispatch. The production of sugar also boosted due better growth of sugar cane in the region enabling the company to crush 35.26% more sugar cane than previous season and enhanced the production of sugar by 40.34%.

ETHANOL Division

The financial and operational performance of our Ethanol division is tabulated as under:

Financial Performance
	Half Year Ended	Half Year Ended
	March 31, 2022	March 31, 2021
		(Rupees in thousands)
Sales	2,759,626		1,836,795
Cost of Sales	(2,219,529)		(1,273,135)
Gross profit		540,097			563,660
Distribution cost	(50,435)		(49,269)
Administrative expenses	(27,221)		(37,775))
Segment operating result		462,441			476,616
Other operating expenses - allocated	(31,039)		(27,296)
Finance cost	(28,961)		(25,467)
Other income - allocated		60,356			7,482
Profit before taxation		462,797		431,335
Taxation - allocatd	(27,596)		(18,902)
Profit after taxation		435,201			412,433