Ansari Sugar Mills : Transmission of Quarterly Report for the Period Ended Dec 31, 2020

BOARD OF DIRECTORS
Khawaja Anver Majid	Chief Executive & Executive Director
Noor Muhammad	Non-Executive Director (Independent)
Waheed Ahmed	Non- Executive Director
Khawaja Aleem Majid	Non- Executive Director
Iqbal Buledi	Non- Executive Director
Dawoodi Morkas	Non- Executive Director
Aurangzeb Khan	Executive Director & Chairman
AUDIT COMMITTEE
Khawaja Aleem Majid	Chairman, Non-Executive Director
Noor Muhammad	Member, Non-Executive Director (Independent)
Dawoodi Morkas	Member, Non Executive Director

HUMAN RESOURCE &

RUMENERATION COMMITTEE

Khawaja Aleem Majid	Chairman, Non Executive Director
Noor Muhammad	Member, Non- Executive Director (Independent)
Waheed Ahmed	Member Non- Executive Director
CHIEF FINANCIAL OFFICER	Khawaja Muhammad Salman Younis
COMPANY SECRETARY	Imran Hameed
BANKERS	National Bank of Pakistan
	Sindh Bank Limited
	Summit Bank Limited
	UBL Bank Limited
	MCB Bank Limited
	Habib Bank Limited
	Bank-Al-Habib Limited
AUDITORS	M/s. J.A.S.B & Associates Chartered Accountants
COST AUDITOR	Rao & Co Chartered Accountants
	Cost and Management Accountants
LEGAL ADVISOR	Kashif Hanif Law Associates
REGISTRAR	C&K Management Associates (Pvt) Ltd
	404, 4th floor, Trade Tower, Abdullah Harron Road,
	Saddar, Karachi.
REGISTERED OFFICE	Deh Jagsiyani, Taluka Tando Ghulam Hayder,
	District Tando Mohammad Khan, Hyderabad, Sindh.
CORPORATE OFFICE	CL-5/4, State Life Building No. 10,
	Abdullah Haroon Road, Karachi
EMAIL ADDRESS	[e-mail]
WEBSITE	www.ansarisugar.com.pk
FACTORY	Deh Jagsiyani,Taluka Tando Ghulam Hayder
	District Tando Muhammad Khan,Sindh.

DIRECTOR'S REPORT

We are pleased to present the financial statements of Ansari Sugar Mills Ltd. for the first quarter ended December 31, 2020 along with Directors' Report for the period then ended.

	December 31,	December 31,
	2020	2019
FINANCIAL RESULTS	Pakistani Rupees (PKR)
Sales	141,935,897	Nil
Gross profit	46,051,105	Nil
Pre-tax (loss)/profit	(70,974,511)	(190,303,350)

The crushing season 2020-21 started on November 11th 2020. The provincial government announced price of cane at Rs. 202 per 40 kg for the season 2020-21.

Season started		11-11-202015-12-2019
Duration of season	Days	51	12
Sugar produced	M.Tons	2170	1,210
Sugar recovery	%	8.492	9.79
Molasses produced	M.Tons	1,225	23.56
Molasses recovery	%	4.527	4.71

The mill commenced its crushing operations on 11th November, 2020. The gross profit worked out to Rs. 46.05 million. Loss before tax worked out to Rs. 70.9 million, in comparison to last period loss of Rs. 190.30 million Company posted net loss after tax of Rs. 29.7 million compare to a net loss Rs. 146.3 million during the corresponding period last year.

Delay in issuance / submission of Accounts:

During the previous years, an enquiry against the Company's sponsors / directors and its shareholders along with other group companies had been initiated by the Federal Investigation Agency (FIA). Further, the matter was transferred to National Accountability Bureau (NAB) and we understand the Financial Institutions had blocked all Company bank accounts on a notice of NAB under section 23 of National Accountability Ordinance 1999 (NAO) on allegation of illicit transactions. However, it is pertinent to mention here that the action of blocking of account was not endorsed by Court of competent jurisdiction.

As a consequence, Company's access to available funds / legitimate sales proceeds and banking facilities were denied on the unjustified and arbitrary instructions of NAB, without realizing the consequences. Resultantly, the Company was forced to default on its dues including payments of banks' instalments, salaries, growers' and vendors', etc.

It is pertinent to note that the JIT, constituted under orders of the Supreme Court of Pakistan thoroughly investigated the entire Group Accounts maintained with all banks and that no charge has been established till yet. Despite all the ordeal no case have been filled against the Company.

Henceforth, after the amendment of NAB Ordinance, the bank accounts of the Company have been unfrozen and we are in coordination with all the stakeholders owing debt and other liabilities to move forward amicably.

It is pertinent to mention here that besides all the pressures of liquidity crises, risk and uncertain business environment, the Company took the initiative to carry on its business activities in extreme difficult situation with all possible efforts, making the necessary financial arrangements on personal basis by the sponsoring directors to ensure the going concern of the Company and by the collective efforts of the entire team of Ansari Sugar Mills Limited, we are through of the precarious conditions successfully by the grace of Almighty (Alhumdulil- lah).

Future Outlook:

Diversifying Revenue Streams:

The Company is focused to attain better energy efficiency mix and planning Balancing, Modernization and Replacement (BMR) accordingly, which will improve the revenue streams through sale of by-products of the company i.e. bagasse and molasses.

Sugarcane Cultivation Prospects:

The Company recognizes that the growth and sustainability in the sugar industry is also dependent on access to a growing volume of sugar cane, particularly from within existing areas of supply. The key here lies in long-term engagement with farmers, demonstrating the use of superior cane varieties (higher yield and hence higher income), timely growing support (provision of seeds, fertilizers and farming inputs) so as to convince them to plant more cane to ensure increased productivity and quality.

Moreover, where heavy rainfall and resultant flash floods have an adverse effect on the agriculture, sugarcane due to its robust nature manages to stay afloat. We expect that

harvesting will remain optimum and mills will have enough sugarcane for crushing throughout the next season.

Government Policy:

Ansari Sugar Mills foresee bumper crushing of sugarcane as evidenced by increased production of sugarcane over last 2 to 3 years. As the Federal government regulates the export of sugar, we anticipate that the supply and demand balance will improve over the next year, and that domestic production will meet the country's sugar demands while creating an export surplus on sugar and ethanol. Thus, timely export permission from Federal government would be of critical importance as it would not only help industry to clear the surplus on improved price but would also stabilize the local market as well. The Government is also contemplating on allowing export as a permanent feature rather than allocating on quota basis which will allow us to fetch good prices on our stocks in international market.

Working Capital:

We are in advanced level of negotiations with our bankers to restructure our debts which will improve our position on retained stocks, refraining ourselves into forced sales and allowing us to fetch better price during off-season as currently due to lack of working capital lines, almost 100% of our stock is sold during the crushing season to meet the working capital.

In the background of preceding paras your management anticipate a turnaround of the sugar industry and accordingly have mobilized all the resources at its disposal to generate huge volumes during the ongoing and upcoming seasons over the next 5 years.

The season in terms of cane supply, recovery and plant capacity utilization is extremely favorable. Ansari Sugar Mills being a large plant will be able to capitalize and procure and crush maximum cane in the next season.

Acknowledgement

We express our sincerest appreciation to our employees for their dedication and hard work and to our clients, business partners and shareholders for the support and confidence. The board also take this opportunity to express its gratitude to all the employees of Ansari Sugar Mill Limited for their untiring efforts.

On behalf of the Board of Directors

Khawaja Anver Majid

Chief Executive Officer

Karachi: March 11, 2024

BALANCE SHEET

AS AT DECEMBER 31, 2020

	Note
ASSETS
NON CURRENT ASSETS
Property, plant and equipment	6
Intangible assets
Long term investment
Long term loans
Long term deposits

CURRENT ASSETS

Inventories

Trade and other receviables Prepayments, deposits and advances Cash and bank balances

EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Share Capital

Authorised capital

Issued, subscribed and paid-up capital

Reserves

Capital reserve

Share premium

Surplus on revaluation of fixed assets Equity reserves

Revenue reserves

Dividend equalization reserve

Accumulated losses

Subordinated loan

NON CURRENT LIABILITIES

Financial liabilities

Deferred liabilities

Provision for quality premium

CURRENT LIABILITIES

Trade and other payables

Financial liabilities

Accrued mark-up

Unclaimed dividend

Current tax liability

CONTINGENCIES AND COMMITMENTS

Un-Audited

December 31,

2020

4,291,592,989

310,073

-

-

1,236,600 4,293,139,662

2,694,582,640 195,392,772 1,427,749,736 385,834,375 4,703,559,523

8,996,699,185

900,000,000

561,365,550

317,293,570

1,781,913,922

336,000,000

2,435,207,492

27,000,000 (1,424,666,935) (1,397,666,935)

1,598,906,107

-

1,598,906,107

1,390,409,974

679,785,024

264,108,125

2,334,303,123

518,425,910

3,092,254,437 1,431,688,526 2,196,784 18,924,298

5,063,489,955

8,996,699,185

Audited

September 30,

2020

4,309,937,464

337,954

-

-

1,236,600

4,311,512,018

2,709,616,617 209,269,631 1,248,776,733 328,329,520 4,495,992,501

8,807,504,519

900,000,000

561,365,550

317,293,570 1,790,538,683 336,000,000 2,443,832,253

27,000,000

(1,403,548,337)

(1,376,548,337) 1,628,649,466

-

1,628,649,466

1,543,445,719

722,796,120

264,108,125

2,530,349,964

360,805,853 2,939,218,693 1,329,139,404 2,196,784 17,144,355 4,648,505,089

-

8,807,504,519

The annexed notes form an integral part of these financial statements.

STATEMENT OF PROFIT AND LOSS

FOR THE PERIOD ENDED DECEMBER 31, 2020

Note	Un-Audited		Un-Audited
	December 31,		December 31,
	2 0 20	2 0 1 9
Sales - net	141,935,897	-
Cost of sales	(95,884,792)		-
Gross profit	46,051,105	-

Operating expenses

Selling and distribution expenses Administrative expenses

Operating profit /(Loss)

Finance cost

Loss before taxation

Taxation

Loss after taxation

Loss per share - basic and diluted

(1,774,656) (12,682,400)

(14,457,056)

31,594,049

(102,568,560)

(70,974,511)

41,231,152

(29,743,359)

(0.53)

-

(11,035,055)

(11,035,055)

(11,035,055)

(179,268,295)

(190,303,350)

43,931,614

(146,371,736)

(2.61)

The annexed notes form an integral part of these financial statements.

CASH FLOW STATEMENT

FOR THE PERIOD ENDED DECEMBER 31, 2020

	Un-Audited	Un-Audited
	December 31,	December 31,
	2020	2019
Loss before taxation	(70,974,511)	(190,303,352)
Adjustments for :

Depreciation

Amortization

Finance cost

Operating (loss) / profit before working capital changes

Changes in working capital : (Increase) / decrease in current assets:

18,344,475

27,881

102,549,122

120,921,478

49,946,967

5,645,982 41,614 179,252,227

184,939,823

(5,363,529)

Inventories

Trade and other receviables

Prepayments, deposits and advances

Increase in current liabilities:

Trade and other payables

CASH FLOWS FROM OPERATING ACTIVITIES Net cash generated from / (used in) operations

Finance cost paid

Net cash used in operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES

long term loans-net

Net cash flow from financing activities

Net decrease in cash and cash equivalents

Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

15,033,977

13,876,859

(178,973,002)

157,620,053

7,557,888

57,504,855

-

57,504,855

-

-

-

57,504,855

(1,308,150,993)

(1,250,646,138)

(3,923,866)

175,507,388

22,312,585

(181,159,308)

12,736,799

7,373,270

-

7,373,270

-

-

-

7,373,270

(1,307,977,959)

(1,300,604,689)

The annexed notes form an integral part of these financial statements.

STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED DECEMBER 31, 2020

		Un-Audited		Un-Audited
		December 31,		December 31,
		2 0 20	2 0 1 9
		----------(Rupees)---------
Loss after taxation	(29,743,359)	(146,371,736)
Incremental depreciation arising from revaluation
of property, plant and equipment	8,624,762	2,325,014
Total comprehensive Loss for the period	(21,118,597)	(144,046,722)

The annexed notes form an integral part of these financial statements.

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED DECEMBER 31, 2020

				Capital Reserves			Revenue Reserve
		Issued,
							Unappropriated
	subscribed and	Share Premium	Equity Reserve	Revalauation	Sub Total	General reserve	profit /	Sub Total	Grand Total
	paid-up capital	Surplus on PPE	(Accumulated
								loss)
		--------------------------------------------------------------------------------------				(Rupees) --------------------------------------------------------------------------------------
As at Septemer 30, 2019	561,365,550	317,293,570	336,000,000	1,812,938,099	2,466,231,669	27,000,000	(990,307,482)	(963,307,482)	2,064,289,738
Loss for the year	-	-	-	-	-	-	(437,468,945)	(437,468,945)	(437,468,945)
Issue of Shares at premium	-	-	-	-	-	-	-	-	-
Re-measurement of define benefit liability	-	-	-	-	-	-	1,828,673	1,828,673	1,828,673
Incremental depreciation on revalued	-	-	-	(22,399,416)	(22,399,416)	-	22,399,416	22,399,416	-
Balance as at September 30, 2020	561,365,550	317,293,570	336,000,000	1,790,538,683	2,443,832,253	27,000,000	(1,403,548,338)	(1,376,548,338)	1,628,649,466
Loss for the period	-	-	-	-	-	-	(29,743,359)	(29,743,359)	(29,743,359)
Issue of Shares at premium	-	-	-	-	-	-	-	-	-
Re-measurement of define benefit liability	-	-	-	-	-	-	-	-	-
Incremental depreciation on revalued	-	-	-	(8,624,762)	(8,624,762)	-	8,624,762	8,624,762	-
Balance as at December 31, 2020		561,365,550	317,293,570	336,000,000	1,781,913,921	2,435,207,492	27,000,000	(1,424,666,935)	(1,397,666,935)	1,598,906,107

The annexed notes form an integral part of these financial statements.