Ansari Sugar Mills : Transmission of Quarterly Report for the Period Ended June 30, 2022

Third

Quarter Accounts

June 30, 2022

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
	M13, Progressive Plaza, Civil Lines Quater,
	near P.I.D.C. Beaumont Road, Karachi-75530,
	Pakistan.
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 third quarter ended June 30, 2022 along with Directors' Report for the period ended.

	June 30,	June 30,
	2022	2021
FINANCIAL RESULTS	Pakistani Rupees (PKR)
Sales	967,206,351	405,166,581
Gross profit	262,098,667	130,870,720
Pre-tax (loss)	(187,863,258)	(221,659,399)

The crushing season 2021-22 started on December 21st 2021. The provincial government announced price of cane at Rs. 265 per 40 kg for the season 2021-22

Season started		21-12-2021	11-11-2020
Actual	Days	84	104
Sugar Cane Crushed	M.Tons	137,912	61,472
Sugar produced	M.Tons	13,392.5	6,313
Sugar recovery	%	9.880	9.296
Molasses produced	M.Tons	6,984	3,130
Molasses recovery	%	5.100	4.837

The mill commenced its crushing operations on 21st December, 2021.The gross profit worked out to Rs 262.0 million as against a gross profit of Rs. 130.9 million during the comparable period in corresponding period. Loss before tax worked out to Rs. 187.9 million, in comparison to last period loss of Rs. 221.7 million Company posted net loss after tax of Rs.

111.4 million compare to a net loss Rs. 101.02 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 (Alhamdulillah).

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: May 20 ,2024

BALANCE SHEET

AS AT JUNE 30, 2022

ASSETS	Note
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

Un-Audited

June 30,

2022

4,218,672,537

170,387

-

-

1,236,600

4,220,079,524

3,272,363,435

28,113,000

1,246,267,736

318,413,508

4,865,157,679

9,085,237,203

900,000,000

561,365,550

Audited

September 30,

2021

4,262,646,593

226,429

-

-

1,236,600

4,264,109,622

2,794,699,295

61,979,631

1,504,016,134

360,598,616

4,721,293,675

8,985,403,297

900,000,000

561,365,550

Capital reserve

Share premium

Surplus on revaluation of fixed assets Equity reserves

Revenue reserves

Dividend equalization reserve Accumulated losses

NON CURRENT LIABILITIES

317,293,570

1,748,499,650

336,000,000

2,401,793,220

27,000,000

(1,727,916,588)

(1,700,916,588)

1,262,242,182

317,293,570

1,768,642,109

336,000,000

2,421,935,679

27,000,000

(1,636,696,006)

(1,609,696,006)

1,373,605,221

Financial liabilities Deferred liabilities Provision for quality premium

CURRENT LIABILITIES

523,772,843

533,794,935

264,108,125

1,321,675,903

931,302,738

627,386,964

264,108,125

1,822,797,827

Trade and other payables	345,535,019		462,280,162
Financial liabilities	3,958,891,568		3,551,361,673
Accrued mark-up	2,154,749,214		1,750,287,567
Unclaimed dividend	2,196,784		2,196,784
Current tax liability	39,946,533		22,874,062
	6,501,319,118	5,789,000,248
CONTINGENCIES AND COMMITMENTS		-
	9,085,237,203	8,985,403,297

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

STATEMENT OF PROFIT AND LOSS (UN-AUDITED) FOR THE PERIOD ENDED JUNE 30, 2022

		Quarter ended		Nine months Period Ended
	Note
		June 30,		June 30,		June 30,		June 30,
	2022	2021	2022	2021
Sales - net	-	-	967,206,351	405,166,581
Cost of sales		-		-		(705,107,683)		(274,295,861)
Gross profit	-	-	262,098,667	130,870,720

Operating expenses

Selling and distribution expenses Administrative expenses

Finance cost

Loss before taxation

Taxation

Loss after taxation

-			-			(1,203,633)
(12,995,715)			(12,006,106)			(44,296,645)
(12,995,715)	(12,006,106)	(45,500,278)
(12,995,715)	(12,006,106)	216,598,389
(153,536,363)	(104,927,817)	(404,461,647)
(166,532,078)	(116,933,923)	(187,863,258)
29,084,474	40,786,447	76,500,217
(137,447,604)	(76,147,476)	(111,363,041)

(5,056,066)

(38,029,672)

(43,085,738)

87,784,982

(309,444,381)

(221,659,399)

120,631,180

(101,028,219)

Loss per share - basic and diluted	(2.45)		(1.36)		(1.98)
The annexed notes form an integral part of these financial statements.

(1.80)

CASH FLOW STATEMENT (UN-AUDITED) FOR THE PERIOD ENDED JUNE 30, 2022

Loss before taxation

Adjustments for :

Depreciation

Amortization

Finance cost

Provision for gratuity

Workers' welfare fund

Workers' profit participation fund

Gain on disposal of assets

Profit On DSC investment

Operating (loss) / profit before working capital changes

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

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

Taxes paid

Gratuity paid

Finance cost paid

Net cash used in operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Property, plant & equipment Capital work in progress Intangible Assets

Long term investments Long term loans Long term deposits

Proceeds from disposal of property plant and equipment

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Un-Audited

June 30,

2022

(187,863,258)

43,974,056

56,042

404,442,308

-

-

-

-

-

448,472,405

260,609,147

(477,664,140)

33,866,631

257,748,398

-

(116,745,143)

(302,794,254)

(42,185,107)

-

-

-

(42,185,107)

-

-

-

-

-

-

-

-

Un-Audited

June 30,

2021

(221,659,399)

41,998,410

83,644

309,407,220

-

-

-

-

-

351,489,274

129,829,875

(60,842,837)

(183,081,591)

145,671,683

-

935,504

(97,317,241)

32,512,633

-

-

-

32,512,633

-

-

-

-

-

-

-

-

long term loans-net	-	-
share capital	-	-
Share premium	-	-
Subordinated Loan	-		-
Net cash flow from financing activities	-	-
Net decrease in cash and cash equivalents	(42,185,107)	32,512,633
Cash and cash equivalents at the beginning of the year	(1,275,881,898)		(1,308,150,993)
Cash and cash equivalents at the end of the year	(1,318,067,005)	(1,275,638,360)

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

STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE PERIOD ENDED JUNE 30, 2022

	Quarter ended		Nine months Period Ended
	June 30,		June 30,		June 30,	June 30,
	2022	2021	2022		2021
(Loss) after taxation	(137,447,604)	(76,147,476)	(111,363,041)	(101,028,219)
Incremental depreciation arising from revaluation
of property, plant and equipment	2,207,350	2,323,526	20,142,458		19,573,049
Total comprehensive loss for the period	(135,240,254)		(73,823,950)		(91,220,583)		(81,455,170)

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

STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)

FOR THE PERIOD ENDED JUNE 30, 2022

			Capital Reserves				Revenue Reserve
	Issued,
	subscribed and	Share	Equity	Revalauation	Sub Total		General	Unappropriated profit /	Sub Total	Grand Total
	paid-up capital	Premium	Reserve	Surplus on PPE		reserve	(Accumulated loss)
	---------------------------------------------------------------			-----------------------	(Rupees)	--------------------------------------------------------------------------------------
As at Septemer 30, 2020	561,365,550	317,293,570	336,000,000	1,790,538,684	2,443,832,254		27,000,000	(1,403,548,337)	(1,376,548,337)	1,628,649,468
Loss for the year	-	-	-	-	-		-	(256,560,976)	(256,560,976)	(256,560,976)
Issue of Shares at premium	-	-	-	-	-		-	-	-	-
Re-measurement of define benefit liability	-	-	-	-	-		-	1,516,731	1,516,731	1,516,731
Incremental depreciation on revalued fixed assets
- net of tax	-	-	-	(21,896,576)	(21,896,576)		-	21,896,576	21,896,576	-
Balance as at September 30, 2021	561,365,550	317,293,570	336,000,000	1,768,642,108	2,421,935,678		27,000,000	(1,636,696,006)	(1,609,696,006)	1,373,605,221

Loss for the period

Issue of Shares at premium

Re-measurement of define benefit liability

Incremental depreciation on revalued fixed assets - net of tax

Balance as at June 30, 2021

-	-	-	-	-	-	(111,363,041)	(111,363,041)	(111,363,041)
-	-	-	-	-	-	-	-	-
-	-	-	-	-	-	-	-	-
-	-	-	(20,142,458)	(20,142,458)	-	20,142,458	20,142,458	-
561,365,550	317,293,570	336,000,000	1,748,499,650	2,401,793,220	27,000,000	(1,727,916,588)	(1,700,916,588)	1,262,242,180

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