Baba Farid Sugar Mills : CONDENSED INTERIM FINANCIAL STATEMENTS For the Half Year Ended 31 March 2024 (Un-audited)

Half Year REPORT

CONDENSED INTERIM 2024FINANCIAL STATEMENTS

For the Half Year Ended 31 March 2024 (Un-audited)

BABA FARID

S U G A R M I L L S L I M I T E D

CONTENTS

Company Information	02
Vision and Mission Statements	03
Directors' Review	04
Directors' Review (Urdu)	06
Independent Auditors' Review Report	09
Condensed Interim Statement of Financial Position	10
Condensed Interim Statement of Profit or Loss	12
Condensed Interim Statement of Comprehensive Income	13
Condensed Interim Statement of Changes in Equity	14
Condensed Interim Statement of Cash Flows	15
Selected Notes to the Condensed Interim Financial Information	16

Half Yearly Report 2024

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COMPANY

INFORMATION

BOARD OF DIRECTORS

Mrs. Qaiser Shamim Khan	Chairperson
Mr. Adnan Ahmed Khan	Chief Executive
Mr. Muhammad Shamim Khan	Executive Director
Mr. Nauman Ahmed Khan	Non-Executive
Mrs. Sarah Hajra Khan	Non-Executive
Mr. Farid ud Din Ahmed	Independent Director
Mr. Malik Manzoor Hussain Humayoon	Independent Director
CHIEF FINANCIAL OFFICER
Mr. Wasif Mahmood
COMPANY SECRETARY
Mr. Muhammad Imran
AUDITORS

M/s BDO Ebrahim & Co.

Chartered Accountants

Office No. 4, 6th Floor, Askari Corporate Tower, 75/76 D-1, Main Boulevard, Gulberg-III, Lahore

Tel: [phone]

Fax: [phone]

Email: [e-mail]

MILLS

5 K.M. Faisalabad Road, Okara

Tel: [phone]

Fax: [phone]

BANKERS

Habib Bank Limited

Bank Al-Habib Limited

MCB Bank Limited

MCB Islamic Bank Limited

Meezan Bank Limited

Bank Alfalah Limited

Soneri Bank Limited

Allied Bank Limited

Askari Bank Limited

National Bank of Pakistan - Aitemad

HUMAN RESOURCES & REMUNERATION COMMITTEE

Mr. Farid-ud-Din Ahmad	Chairman
Mr. Adnan Ahmed Khan	Member
Mr. Malik Manzoor Hussain Humayoon	Member
AUDIT COMMITTEE
Mr. Farid-ud-Din Ahmad	Chairman
Mrs. Sarah Hajra Khan	Member
Mr. Malik Manzoor Hussain Humayoon	Member
NOMINATION COMMITTEE
Mr. Malik Manzoor Hussain Humayoon	Chairman
Mr. Farid-ud-Din Ahmad	Member

RISK MANAGEMENT COMMITTEE

Mr. Malik Manzoor Hussain Humayoon Chairman

Mr. Farid-ud-Din Ahmad

Member

SHARE REGISTRAR

M/s Corplink (Pvt) Limited Share Registrar, Wings Arcade,

1-K Commercial Model Town, Lahore. Tel: [phone],

Fax: [phone]

Email: [e-mail]

REGISTERED OFFICE

2-D-1, Gulberg III, Lahore Tel: [phone] Fax: [phone] Email: [e-mail] Website: www.bfsml.com

LEGAL ADVISOR

M/s Ahmed & Pansota

Advocate and Legal Consutants

20 - Sir Gangaram Mansions

The Mall Lahore

Tel: [phone]

Tel: [phone]

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VISION & MISSION

STATEMENTS

OUR VISION

We shall build on our core competencies and achieve excellence in performance to become a leading producer of best quality sugar. In doing so we aim to meet or accede the expectations of all our stakeholders.

Our goal is not only to attain technological advancements in the field of sugar but also to inculcate the most efficient, ethical and time tested business practices in our management.

Furthermore, we shall strive to innovate the ways for the improvement and increase in per acre yield of sugarcane and introduce improved varieties of sugarcane having better yield characters, high sucrose contents, disease and drought resistant and better ratooning crop in the region. We shall introduce the mechanized sugarcane cultivation mehtod to the growers and to educate regarding latest developments of agriculture technology and free consultancy of professionals.

OUR MISSION

We aim to be a leading producer and supplier of quality sugar by adopting the most technological advancement. We intend to play a pivotal role in the economic development of Pakistan.

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DIRECTORS'

REVIEW

On behalf of the Board of Directors, we are pleased to present the performance review of your Company together with the unaudited financial statements for the period that ended on March 31st, 2024.

ECONOMIC & INDUSTRY OVERVIEW

During the half year under review, Pakistan's economy struggled with notable challenges characterized by consistent inflation and uncertainty at both economic and political fronts leading to stagnant policy rate of 22% by the State Bank of Pakistan. Despite efforts such as curbing unnecessary imports and crack down on smuggling, economic indicators depict mixed performance across various sectors during the review period. While the pace of economic recovery remains gradual, there is a consistent effort to rebuild business confidence. Persistent challenges such as sharply increasing cost of living, increased cost of doing business, consistently higher KIBOR rates and ongoing energy cost escalation continue to present obstacles to economic growth.

During the period under review, growers reported higher yields per acre compared to last year, however, industry's recoveries decreased due to adverse climate conditions and flooding in the region.

For the current crushing season 2023-24, the notified support price of sugarcane was Rs. 400/- per 40 kg in Punjab & KPK and Rs. 425/- per 40 kg in the province of Sindh. Crushing commenced on 25th November 2023. Average sugarcane purchase cost remained higher than the support price.

PERFORMANCE OF THE COMPANY

The Company was able to crush 524,174.100 M. Tons sugarcane and produced 52,798.400 M. Tons of white refined sugar at an average recovery of 10.068% during the Period ended 31 March 2024 as compared to 31 March 2023, sugarcane crushing of 455,913.605 M. Tons and the production of 45,338.900 M. Tons white refined sugar at an average recovery of 9.956%

Net sales were recorded at Rs. 1,681.209 million during the period under review as compared to Rs. 1,205.687 million during the corresponding period of last year.

The Company incurred pretax loss of Rs. 169.008 million during the current six months as compared to pretax loss of Rs. 49.235 million in the corresponding period of last year. The main factor of this loss is the high interest cost. Other important factors include high cane procurement price and subdued sugar prices.

FUTURE OUTLOOK

While the sugarcane support price has been increased substantially, sugar prices remained subdued due to the availability of excess stock.

The Company's operating environment will likely remain challenging in light of the difficult macro-economic conditions. Consequently, the Company continues to focus on plans that focus on bringing efficiency and reduce costs.

Though the impact of higher sugarcane prices and higher interest rates may subdue the profitability while sugar prices to determine the extent of profitability. It is expected that Company will improve further in its operations and this is essentially due to better management and commitment by professional management and its team. These ingredients will hopefully revive the Company on overall basis.

CORPORATE GOVERNANCE

Best Corporate Practices

Directors are committed to good corporate governance and comply with the requirements of the Listed Companies (Code of Corporate Governance) Regulations, 2017 and the Rule Book of Pakistan Stock Exchange. The composition of the Board of Directors (the Board") is as follows:

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The total number of Directors are seven as per following:

• Male: Five
• Female: Two

Category	Names
Independent Directors	Mr. Farid-ud-Din Ahmad
	Mr. Malik Manzoor Hussain Humayoon
Executive Directors	Mr. Adnan Ahmed Khan (CEO)
	Mr. Muhammad Shamim Khan
Non-Executive Directors	Mrs. Qaiser Shamim Khan
	Mr. Nauman Ahmed Khan
	Mrs. Sarah Hajra Khan

ADEQUACY OF INTERNAL CONTROLS

The Directors are aware of their responsibility with respect to internal financial controls. Through discussions with management and Auditors (both internal and external), they confirm that adequate controls have been implemented by the Company.

ACKNOWLEDGEMENT

The Directors wish to acknowledge the devotion of the employees and are appreciative of their dedication and commitment. They also extend heartfelt appreciation to the Company's suppliers, customers, and bankers for their continued confidence and support.

	For and on behalf of the Board
	Baba Farid Sugar Mills Limited
Mr. Muhammad Shamim Khan	Adnan Ahmed Khan
Director	Chief Executive Officer
Lahore: 24th May 2024

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INDEPENDENT AUDITORS' REVIEW REPORT

TO THE MEMBERS OF THE BABA FARID SUGAR MILLS LIMITED

REPORT ON REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS

INTRODUCTION

We have reviewed the accompanying condensed interim statement of financial position of BABA FARID SUGAR MILLS LIMITED (the "Company") as at March 31, 2024 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows, and notes to the condensed interim financial statements for the six-month period then ended (here-in-after referred to as the "interim financial statements"). Management is responsible for the preparation and presentation of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review.

SCOPE OF REVIEW

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

CONCLUSION

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements is not prepared, in all material respects, in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting.

OTHER MATTER

The figures for the quarters ended March 31, 2024 and March 31, 2023 in the condensed interim statement of profit or loss and condensed interim statement of comprehensive income have not been reviewed and we do not express a conclusion on them as we are required to review only the cumulative figures for the half year ended March 31, 2024.

The engagement partner on the review resulting in this independent auditor's review report is Sajjad Hussain Gill.

BDO EBRAHIM & CO.

CHARTERED ACCOUNTANTS

Lahore: May 30, 2024

UDIN: RR202410087XZgOJ81qn

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