Premier Sugar Mills & Distillery : Transmission of Quarterly Report for the period ended December 31, 2021

BOOKPOST		PrintedMatter UNDERPOSTALCERTIFICATE		&DISTILLERYCO.,LTD.
			Ifundeliveredpleasereturnto:	THEPREMIERSUGARMILLS MARDAN

THEPREMIERSUGARMILLS

&DISTILLERY CO.LTD.,

MARDAN

CONDENSEDINTERIM FINANCIALINFORMATION

FORTHEFIRSTQUARTERENDED

DECEMBER 31,2021

THEPREMIERSUGARMILLS&DISTILLERY COMPANY LIMITED

COMPANY INFORMATION

Board of Directors
Mr. Aziz Sarfaraz Khan	Chairman
Mr. Abbas Sarfaraz Khan	Chief Executive
Begum Laila Sarfaraz	Director
Ms. Zarmine Sarfaraz	Director
Mr. Iskander M. Khan	Director
Mr. Shahbaz HaiderAgha	Independent Director
Mr. SalmanAhmad	Independent Director
Company Secretary
Mr. Mujahid Bashir
Chief Financial Officer
Mr. Rizwan Ullah Khan
Head of Internal Audit

Mr. Zaheer Mir

Auditors

M/s. ShineWing Hameed Chaudhri & Co.,

Chartered Accountants

Tax Consultants

M/s. ShineWing Hameed Chaudhri & Co.,

Chartered Accountants

Legal Advisor

Mr. Isaac Ali Qazi

Advocate

SharesRegistrar

M/s.HameedMajeed Associates(Pvt.)Limited,

H.M.House,7-BankSquare,Lahore.

PhoneNo.:042-37235081FaxNo.:042-37235083

Bankers
Bank Al-Habib Limited	The Bank of Khyber
MCB Bank Limited	United Bank Limited
Allied Bank Limited	The Bank of Punjab
Bank Al-Falah Limited	Faysal Bank Limited
Habib Bank Limited	National Bank of Pakistan

THEPREMIERSUGARMILLS&DISTILLERY COMPANY LIMITED

DIRECTORS'REVIEWREPORT

The Directors of The Premier Sugar Mills and Distillery Company Limited ("the Company") are pleased to present the un-audited condensed interim financial information of the Company for the first quarter ended December 31, 2021 to the shareholders of the Company in compliance with Section 237 of the Companies Act, 2017 (the Act) and the rule book of the Pakistan Stock Exchange.

OPERATIONAL OPERATIONS

The sugarcane crushing season 2021-22 commenced on November 12, 2021. The Mills have crushed 30,035 tons of sugarcane and have produced 1822 tons of sugar till December 19, 2021. The Mills operated intermittently at 20% of its capacity causing inversion of sugarcane juice and pushing recovery at historic low. In these conditions, the management in order to avoid huge losses decided closure of the Mill on January 31, 2022. As the entire sugarcane is being diverted to tax free commercial Gur making, we have requested Cane Commissioner/Director Food, Food Directorate, KPK to play their role as defined in Gur Control Act, 1948 but of no avail, nor did FBR took measures to collect sales tax on the Commercial Gur sales at the Mandi Level.

SUGAR PRICES

The Company operated intermittently for only 38 days and had to close its operations due to non-supply of sugarcane.

DISTILLERY

The Ethanol Fuel Plant produce 795 M.T of ethanol during the first Quarter ended December 31, 2021.

FINANCIAL PERFORMANCE

The Company suffered Rs. 55.353 million loss after taxation (2020: Rs. 79.172 million) during the first quarter ended December 31, 2021.

ACCOUNTING POLICIES

The accounting policies adopted in the preparation of this quarterly condensed interim financial information are the same as applied in the preparation of the preceding annual financial statements of the Company.

ACKNOWLEDGEMENT

The Directors appreciate the good work done by the Company's staff at all levels.

FOR ANDONBEHALFOF THEBOARD

(ISKANDER M. KHAN)	(ABBAS SARFARAZ KHAN)
Director	Chief Executive
Islamabad
February 24, 2022

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THEPREMIERSUGARMILLS&	DISTILLERY COMPANY LIMITED
CONDENSEDINTERIMSTATEMENTOFFINANCIAL	POSITION AS ATDECEMBER31,2021
		Unaudited		Audited				Unaudited		Audited
		Dec31,		Sep30,				Dec31,		Sep30,
		2021	2021					2021	2021
	Note	Rupeesinthousand		Note	Rupeesinthousand
EQUITY ANDLIABILITIES						ASSETS
CAPITAL ANDRESERVES						NON-CURRENT ASSETS
Authorisedcapital						Property,plantandequipment	5		1,249,001	1,278,751
5,750,000ordinaryshares
ofRs.10each		57,500	57,500		Investmentproperty	6		20,183	20,480
Issued,subscribedand
paid-upcapital	14	37,500	37,500		Longterminvestments	7		170,006	170,006
Capitalreserves
-shareredemption		1	1		LongtermloantoSubsidiaryCompany			0	0
-revaluationsurplusonproperty,						Securitydeposits			1,263		1,263
plantandequipment		777,239	792,005					1,440,453	1,470,500
Generalrevenuereserve		900,000	900,000		CURRENT ASSETS
Accumulatedloss				(608,932)
	(649,519)		Storesandspares	8		111,884		109,699
		1,065,221	1,120,574
NON-CURRENTLIABILITIES						Stock-in-trade	9		360,963		133,605
						Tradedebts			20,850		156,955
Longtermfinances	15	0		5,077
Leaseliabilities		399		1,095
GovernmentGrant		0		78
						Advances	10		122,344		5,661
Staffretirementbenefits-gratuity		20,040		20,096
						Tradedepositsandshort
Deferredtaxation	19	97,364		126,479		termprepayments	11		7,952		4,344
		117,803	152,825
CURRENTLIABILITIES						Accruedprofitonbankdeposits			715		527
						Otherreceivables					19,135
Tradeandotherpayables	16	233,743		128,053		12		14,205
Unclaimeddividends		7,470		7,470		Currentportionof
						longtermloantoaSubsidiaryCompany			0		0
Accruedmark-up		2,684		5,877
						Salestaxrefundable			6,233		780
Shorttermborrowings	17	473,767		247,612
						Incometaxrefundable,
Currentportionofnon-current						advanceincometaxand
liabilities	18	25,147		26,886		taxdeductedatsource			18,631		17,076
Taxation	19	17,902		16,400		Bankbalances	13		104,865		52,773
		760,713	432,298					768,642	500,555
Liabilitiesdirectlyassociatedwithnon-current
assetsclassifiedasheldforsale		270,000	270,000
CONTINGENCIES AND						Non-currentassetsclassifiedasheldforsale	4,642	4,642
COMMITMENTS	20
		2,213,737		1,975,697					2,213,737		1,975,697

Theannexednotesformanintegralpartofthesefinancialstatements.

CHIEFEXECUTIVE	DIRECTOR	CHIEFFINANCIAL OFFICER

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THEPREMIERSUGARMILLS&DISTILLERY COMPANY LIMITED

CONDENSEDINTERIMSTATEMENTOFPROFITORLOSS ACCOUNT

ANDOTHERCOMPREHENSIVEINCOME(UN-AUDITED)

FOR THEFIRST QUARTERENDEDDECEMBER31,2021

		Dec 31,	Dec 31,
		2021			2020
	Note	Rupees in thousand
Sales - net	21	143,064			242,258
Cost of sales	22	(204,017)			(317,142)
Gross loss		(60,953)			(74,884)
Distribution cost	23	(11,058)			(5,820)
Administrative expenses	24	(14,897)			(14,658)
Other expenses	25	(338)			(215)
		(26,293)			(20,693)
		(87,246)			(95,577)
Other income	26	10,929			13,645
Loss from operations		(76,317)			(81,932)
Finance cost	27	(6,648)			(7,688)
Loss before taxation		(82,965)			(89,620)
Taxation		27,612			10,448
Loss after taxation		(55,353)			(79,172)
Other comprehensive income		0			0
Total comprehensive loss		(55,353)			(79,172)
		Rupees
Loss per share		(14.76)			(21.11)

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

CHIEFEXECUTIVE

DIRECTOR

CHIEFFINANCIAL OFFICER

THEPREMIERSUGARMILLS&DISTILLERY COMPANY LIMITED

CONDENSEDINTERIMSTATEMENTOFCASHFLOWS(UN-AUDITED)

FOR THEFIRST QUARTERENDEDDECEMBER31,2021

		Dec31,		Dec31,
		2021	2020
		Rupeesinthousand
CASHFLOWFROMOPERATING ACTIVITIES
Lossfortheperiod-beforetaxation	(82,965)	(89,620)
Adjustmentsfor:
Depreciationonproperty,plantandequipment	29,883	32,413
Depreciationoninvestmentproperty	297	203
Mark-uponloantoSubsidiarycompanyandprofit
/mark-uponbankdeposits	(356)	(1,161)
Staffretirementbenefits-gratuity(Net)	(56)	740
Financecost		5,797		6,512
Lossbeforeworkingcapitalchanges	(47,400)	(50,913)
EFFECTONCASHFLOWSDUETOWORKINGCAPITAL CHANGES
Decrease/(Increase)incurrentassets:
Storesandspares		(2,185)		(3,224)
Stock-in-trade		(227,358)		54,847
Tradedebts		136,105		(30,754)
Loansandadvances		(116,683)		(6,036)
TradeDepositsandshorttermprepayments		(3,608)		(2,083)
Otherreceivables		4,930		(682)
Advancesalestax-net		(5,456)		0
Decreaseintradeandotherpayables		105,690		(29,409)
		(108,565)		(17,341)
Cashusedinoperations	(155,965)	(68,254)
Income Taxpaid	(1,556)	(2,534)
Netcashusedinoperatingactivities	(157,521)	(70,788)
CASHFLOWFROMINVESTING ACTIVITIES
Additionstoproperty,plantandequipment		(133)		0
Mark-up/profitreceivedonloantoSubsidiarycompany
andbankdeposits		171		658
Netcashusedininvestingactivities	38	658
CASHFLOWFROMFINANCING ACTIVITIES
Shorttermborrowings-net		226,155		25,000
LongtermloantoSubsidiaryCompany		(6,013)		9,648
LongtermloantoSubsidiaryCompany		0		24,238
Financecostpaid		(8,990)		(6,265)
Dividendpaid		0		(10)
Leasefinances-net		(1,577)		(499)
Netcashgeneratedfromfinancingactivities		209,575		52,112
Netdecreaseincashandcashequivalents	52,092	(18,018)
Cashandcashequivalents -atbeginningoftheperiod		52,773		52,563
Cashandcashequivalents -atendoftheperiod		104,865		34,545
Theannexednotesformanintegralpartofthesefinancialstatements.

CHIEFEXECUTIVE

DIRECTOR

CHIEFFINANCIAL OFFICER

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