Tariq : Transmission of Quarterly Report for the Period Ended June 30,2023

CONTENTS

Company Information	2
Directors' Report to the Shareholders - English	4
Directors' Report to the Shareholders - Urdu	6
Condensed Interim Statement of Financial Position	8
Condensed Interim Statement of Profit or Loss	9
Condensed Interim Statement of Comprehensive Income	10
Condensed Interim Statement of Cash Flows	11
Condensed Interim Statement of Changes in Equity	12
Notes to the Condensed Interim Financial Information	13

For the nine month period ended June 30, 2023

1

COMPANY INFORMATION

DIRECTORS
Mrs. Sadia Ali Tariq	Chairperson
Mian Mustafa Ali Tariq	Chief Executive Officer
Mian Ahmed Ali Tariq	Non-Executive Director
Mrs. Maryam Habib	Executive Director
Mr. Muhammad Imran Khan	Independent Director
Mr. Saif Hasan	Independent Director
Mr. Waseem Ahmad Ghafoor	Non-Executive Director

DEPUTY CHIEF EXECUTIVE / CHIEF FINANCIAL OFFICER

Mr. Wasim Saleem

COMPANY SECRETARY

Mr. Khalid Mahmood

HEAD OF INTERNAL AUDIT

Mr. Zahid Mahmood

AUDIT COMMITTEE	Mr. Muhammad Imran Khan
Chairman
Member	Mian Ahmed Ali Tariq
Member	Mr. Waseem Ahmad Ghafoor
HUMAN RESOURCE & REMUNERATION
COMMITTEE

Chairman

Member

Member

RISK MANAGEMENT COMMITTEE

Chairman

Member

Member

EXTERNAL AUDITORS

Kreston Hyder Bhimji & Co

Chartered Accountants

BANKERS OF THE COMPANY

SHARIAH COMPLIANT

Askari Bank Limited (Islamic Banking)

Bankislami Pakistan Limited

Dubai Islamic Bank Limited

Meezan Bank Limited

OLP Modaraba

Mr. Saif Hasan

Mian Mustafa Ali Tariq

Mian Ahmed Ali Tariq

Mian Mustafa Ali Tariq

Mrs. Maryam Habib

Mr. Saif Hasan

2

CONVENTIONAL

Bank Alfalah Limited

First Credit and Investment Bank Limited

National Bank of Pakistan

Samba Bank Limited

SHARE REGISTRAR

CDC Share Registrar Services Limited

KARACHI

CDC House, 99 - B, Block 'B',

S.M.C.H.S., Main Shahra-e-FaisalKarachi-74400. Tel: Customer Support Services

(Toll Free) 0800-CDCPL (23275) Fax: [phone]

Email: [e-mail]

Website: www.cdcsrsl.com

CDC LAHORE OFFICE

Mezzanine Floor,

South Tower, LSE Plaza,

Khayaban-E-Aiwan-E-Iqbal, Lahore

Tel: [phone]

CDC ISLAMABAD OFFICE

Room # 410,4th Floor, ISE Towers,

55-B, Jinnah Avenue,

Blue Area, Islamabad.

Tel. [phone]

LEGAL ADVISORS

Saad Rasool Law Associates

Siddiqui Bari Kasuri & Company

COST AUDITORS

Fazal Mahmood & Co

Chartered Accountants

MILLS

Lahore Road, Jaranwala

Ph:041-4312499

REGISTERED / HEAD OFFICE

28-C, Block E-1,Gulberg-III, Lahore Ph: 042-111-111-476

Fax: [phone]

Email: info@.tariqcorp.com

WEBSITE INFORMATION

www.tariqcorp.com

PSX SYMBOL

TCORP

For the nine month period ended June 30, 2023

3

DIRECTORS' REPORT

I am pleased to present the third quarter interim condensed financial information of the Company for the period ending on June 30, 2023.

The highlights of the Company's performance for the nine months and its comparison with the corresponding period from last year are illustrated below:

OPERATIONAL
Sugarcane crushed	(M. Tons)
Sugar produced	(M. Tons)
Sugar recovery	(%)
FINANCIAL
Sales - net
Gross profit
Operating cost
Finance cost
Profit before taxation
Profit after taxation
Earnings per share

June 30	June 30
2023	2022
616,378	914,573
60,120	80,125

9.768.76

.......... (Rupees) ..........

5,217,994,216	5,382,413,441
539,585,906	658,521,115
214,406,864	239,350,710
418,000,554	301,396,143
336,764,105	133,104,925
250,744,865	43,469,602
4.73	0.81

Despite all the economic and political challenges in the last year, the management of the company is delighted to report one of the highest quarterly profits in the history of the company. Reaping the reward of our significant investment in the research and development of sugarcane crops in our area, we are happy to report that sugarcane recoveries recorded at Tariq Corporation have increased by a degree this year. Supplementing this increase in sugarcane recovery has been the effect of our Efficiency Improvement Project that has lowered our energy consumption at the company that have resulted in additional savings of Bagasse and have contributed to a greener, cleaner environment.

Unlike the previous year where crops were plagued by various pests and diseases, this year, through the widespread proliferation of pesticides and fertilizers by our cane team and its network, we saw a much healthier crop. However, due to fertilizer prices rising towards the end of the last crushing season and higher costs of inputs in general because of widespread inflation in the country, timely and significant inputs could not be given by the farmer this year. Therefore, although the sugarcane crop was healthy and had significant levels of sucrose content, the average yields per acre of sugarcane planted fell significantly this year. I am happy to report that the company produced 60,120 Tons of sugar at a recovery of 9.76 as compared to 80,125 tons at a recovery of 8.76 last year. The company has recorded after-tax profit of Rs. 250,744,865 as compared to Rs. 43,469,602 in the previous year. The EPS of the company has increased 5.8X this year to 4.73 per share.

As per the statistics bureau, Pakistan's consumer price index (CPI) has clocked in at 36.5% in April, Year on Year. Fiscal measures taken, such as increasing the GST by 1% and the impact of other events despite the new monetary policy changes have led to record levels of inflation. With interest rates rising higher and costs of inputs going up every month due to record levels of devaluation to the USD, the costs of production of both sugarcane and proportionately of sugar are going up. In just a few years, the Minimum Support Price of sugarcane has risen from Rs. 180 per Mound to Rs. 300 per Mound and it is expected to be even higher in the next crushing season. Like other commodities and goods in Pakistan, the prices of sugar have also increased in recent months.

As compared to the 9 months ending FY-2022, this year, the company has sold a similar amount of inventory according to respective sugar prices. Due to a shortage of sugarcane, procurement prices of sugarcane were up-to 20% higher than the notified sugarcane price. Sugarcane was procured at higher costs by various mills across Pakistan due to increasing costs on the end of the farmer. As a result, mills have booked higher costs of production of sugar that have led to high prices of sugar in the wholesale market. We are confident that starting Q4 and heading into FY 23-24, prices of sugar will rally higher towards rates that will lead to decent profitability.

The Efficiency Improvement Project of the company has increased the revenues of our company and has reduced energy costs as predicted. The company's revenue for Q3 2023 has hit 5.963 billion-Rs. mark which is the second highest in the company's history.

4