Thal Industries : Transmission of Quarterly Report for the Period Ended

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HALF YEARLY

REPORT

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V A T I O N

CONDENSED INTERIM FINANCIAL INFORMATION For the Six Months Ended 31 March 2022 (Un-audited)

CONTENTS

Company Information	2
Directors' Review	4
Auditors' Report to the Members on Review of Interim Financial Information	11
Condensed Interim Statement of Financial Position	12
Condensed Interim Statement of Profit or Loss and Other Comprehensive Income	14
Condensed Interim Statement of Changes in Equity	15
Condensed Interim Statement of Cash Flows	16
Selected Notes to the Condensed Interim Financial Information	17

Half Yearly Report 2022 1

COMPANY INFORMATION

BOARD OF DIRECTORS			CHAIRPERSON
						Mrs. Qaiser Shamim Khan
						CHIEF EXECUTIVE
						Mr. Muhammad Shamim Khan
						MANAGING DIRECTOR
						Mr. Nauman Ahmed Khan
						DIRECTORS
						Mr. Muhammad Shamim Khan	(Director)
						Mrs. Qaiser Shamim Khan	(Director)
						Mr. Adnan Ahmed Khan	(Director)
						Mr. Nauman Ahmed Khan	(Director)
						Mr. Muhammad Khan	(Director)
						Mr. Muhammad Ashraf Khan Durani	(Independent Director)
						Mr. Abdul Wahid Khan	(Independent Director)
CHIEF FINANCIAL OFFICER			Mr. Hafiz Muhammad Arif
COMPANY SECRETARY			Mr. Wasif Mahmood
AUDITORS			M/s. Rahman Sarfaraz Rahim Iqbal Rafiq
						Chartered Accountants, Lahore
LEGAL ADVISOR			Mr. Shehzad Ata Elahi, Advocate
BANKERS			Allied Bank Limited
						Askari Bank Limited
						Bank Al-Habib Limited
						Bank Alfalah Limited
						Bank Islamic (Pakistan) Limited
						Faysal Bank Limited
						Habib Bank Limited
						Habib Metropolitan Bank Limited
						MCB Bank Limited
						MCB Islamic Bank Limited
						Meezan Bank Limited
						National Bank of Pakistan
						Standard Chartered Bank (Pakistan) Limited
						Soneri Bank Limited
						United Bank Limited
						The Bank of Punjab
						NBP Aitemaad Islamic Bank Limited
						Samba Bank Limited
						Dubai Islamic Bank Pakistan Limited
						Pakistan Kuwait Investment Company Private Limited
2

AUDIT COMMITTEE		Mr. Muhammad Ashraf Khan Durani	(Chairman)
		Mrs. Qaiser Shamim Khan	(Member)
		Mr. Adnan Ahmed Khan	(Member)
HUMAN RESOURCE &		Mr. Abdul Wahid Khan	(Chairman)
REMUNERATION		Mr. Adnan Ahmed Khan	(Member)
COMMITTEE		Mr. Muhammad Khan	(Member)
RISK MANAGEMENT
COMMITTE		Mr. Abdul Wahid Khan	(Chairman)
		Mr. Muhammad Ashraf Khan Durani	(Member)
NOMINATION COMMITTEE		Mr. Abdul Wahid Khan	(Chairman)
		Mr. Muhammad Ashraf Khan Durani	(Member)
SHARE REGISTRAR		M/s. CORPLINK (Pvt) Ltd
		Wings Arcade, 1-K- Commercial
		Model Town, Lahore
		Tel: [phone]
		Fax: [phone]
REGISTERED OFFICE		23- Pir Khurshid Colony Gulgasht, Multan
		Tel: [phone]
		Fax: [phone]
HEAD OFFICE		2-D-1Gulberg-III, Lahore - 54600
		Tel: [phone]
		Fax: [phone]
FACTORY ADDRESSES		Unit 1: Layyah Sugar Mills, Layyah
		Tel: [phone]
		Fax: [phone]
		Unit 2: Safina Sugar Mills, Lalian District Chinniot.
		Tel: [phone]
		Fax: [phone]
WEBSITE		www.thalindustries.com

Half Yearly Report 2022 3

DIRECTORS' REVIEW

The Directors of your Company are pleased to present the Un-Audited Accounts of the Company for the Half Year Ended 31 March 2022 in compliance with the section 237 of the Companies Act, 2017.

INDUSTRY OVERVIEW

During the period under review, cultivated area of sugarcane crop remained higher and yield per acre being reported by the growers is also reportedly higher as compared to last year. Despite of early start of crop harvesting, we are expecting better sugar recoveries in the area as compared to last year due to extra ordinary efforts made by agri team to promote better varieties of sugar cane and good practices.

For current crushing season 2021-22, notified support price of sugarcane is Rs. 225/- per 40 kg in Punjab & KPK and Rs. 250/- per 40 kg in the province of Sindh. Due to early start of crushing season from 15 November 2021 tough competition has been observed in cane procurement that resulted into price war like situation in the region in the first half of crushing season. Average sugarcane purchase cost is higher than the support price.

OPERATING HIGHLIGHTS

As the crushing is in process and as on 31st March Company is able to crush 3,047,552 M. Tons sugarcane and produced 302,964.500 M. Tons white refined sugar at an average recovery of 9.991% during the half year ending March 31, 2022 as compared to corresponding period of last year sugarcane crushing of 2,374,601 M. Tons and production of 228,107 M. Tons white refined sugar at an average recovery of 9.609%.

Net sales were recorded at Rs. 7,229.398 million during the period under review as compared to Rs. 7,025.015 million against the corresponding period of last year.

The Company earned after tax profit of Rs. 781.160 million during the period under review as compared to after tax profit of Rs. 583.974 million in the corresponding period of last year. This substantial increase in profitability is attributed to favorable sugar prices in the first quarter and increase in sugarcane recovery.

All out efforts are being made to increase the production and profitability of the Company through process efficiency, installing modern and latest technology, reducing production cost by close supervision, developing good quality cane by providing the latest improved seed varieties, fertilizer, pesticides etc. and facilitating the cane growers constantly, which ultimately will result in higher sugar recovery and also financial benefit to the cane growers.

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, 2019 and the Rule Book of Pakistan Stock Exchange.

1. The total number of directors are seven as per the following:

• Male: Six
• Female: One

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