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

Table of

Contents

Corporate Information	02
Financial Highlights	03
Directors' Report	04
Directors' Report (Urdu)	05
Condensed Interim Statement of Financial Position	06
Condensed Interim Statement of Profit or Loss	08
Condensed Interim Statement of Comprehensive Income 09
Condensed Interim Statement of Cash Flows	10
Condensed Interim Statement of Changes in Equity	12
Notes to the Condensed Interim Financial Statements	13
Jama Punji Information

Corporate Information

Board of Directors

Mr. Syed Anwar Hussain Shahid	Chief Executive
Mr. Farhan Ilyas	Independent Director
Mr. Muhammad Aamir Beg	Independent Director
Ms. Faiza Iftikhar	Independent Director
Mr. Ghias-ul-Hasan	CPL Nominee
Mr. Kamran Zahoor	CPL Nominee
Mr. Saif-ur-Rehman	CPL Nominee

Audit Committee

Mr. Farhan Ilyas	Chairman
Mr. Muhammad Aamir Beg	Member
Mr. Kamran Zahoor	Member

Human Resource Committee

Mr. Muhammad Aamir Beg	Chairman
Mr. Syed Anwar Hussain Shahid	Member
Mr. Ghias-ul-Hasan	Member

Chief Financial Officer

Mr. Imran Ilyas

Company Secretary

Mr. Al-Yousuf

Head of Internal Audit

Mr. Syed Muhammad Usman Afzaal

Auditors

UHY Hassan Naeem & Co. (Chartered Accountants)

193-A, Shah Jamal

Lahore, Pakistan Phone No. 042 35403550 Fax No. 042 35403599

E-mail:[e-mail]

Share Registrar

Corplink (Pvt.) Limited

Wings Arcade, 1-K Commercial

Model Town, Lahore, Pakistan

Phone No. 042 35916714

Fax No. 042 35869037

E-mail: [e-mail]

Legal Advisor

Siddiqui Bari Kasuri & Co.

Advocates & Corporate Legal Consultants 179/180-A, Scotch Corner, Upper Mall, Lahore Phone No. 042-35758573-74, Fax No. 042-35758572

Registered Address

125-B,Quaid-e-Azam Industrial Estate Kot Lakhpat, Lahore, Punjab, Pakistan Phone No. 042 35213491

Fax No. 042 35213490 E-mail: [e-mail]

Mills

Jauharabad, District Khushab, Punjab, Pakistan Phone No. 0454 720063-6, Fax No. 0454 720880

Bankers of the Company

Askari Bank Limited	JS Bank Limited
Soneri Bank Limited	Habib Metropolitan Bank Ltd.
MCB Bank Limited	Samba Bank Limited
United Bank Limited	National Bank of Pakistan
Habib Bank Limited	Bank Alfalah Limited
Allied Bank Limited

Islamic Bankers of the Company

Albaraka Bank Pakistan Limited

MCB Islamic Bank Limited

Dubai Islamic Bank Limited

Faysal Bank Limited

National Tax Number

0225972-9

Sales Tax Registration Number

0409170300137

Company Website

www.jsml.com.pk

Financial Highlights

ToplineAcid Test

FY2022 3151.41 M	FY2022 0.20x
FY2021 0.87x
FY2021 2124.45 M

	ROCE
Gross Profit	FY2022 6.36%	Net Profit
FY2021 4.33%
FY2022 15.37%	FY2022 1.84%
FY2021 16.06%		FY2021 1.73%

Bottomline	Price Earning
FY2022 58.11 M	FY2022 10.00x
FY2021 36.84 M	FY2021 24.68x

3rd Quarter 2022

03

Directors' Report

For the nine month ended June 30, 2022

Dear Members, Assalam-O-Alaikum

On behalf of the Board of Directors and myself, I am pleased to present before you the un-audited financial statements of the Company for the nine-months ended June 30, 2022.

Sector Overview

The current year turned-out to be more challenging as, for the third year in a row, Government of Punjab had increased the support price of sugarcane to Rs. 225 per maund [CY2020/21: Rs. 200 per maund) and implemented strict administrative policies related to payment to growers. This, ultimately, resulted in higher cost of production of sugar in the country. Moreover, sugar production for the current season is estimated to be in surplus by 0.500 million tons above historical demand. Sugar prices during the ensuing period has remained depressed mainly due to surplus produce available within the country coupled with continuous Government intervention through controlled sugar pricing and supply management policies. The government, in principle, has approved the industry's proposal to export this surplus stock and, in return, to fetch valuable foreign exchange. However, the current political uncertainty within the country may result in further delay in issuance of formal export policy by the government. The company is closely monitoring the whole situation and is hopeful to successfully manage through the present scenario.

Operational Performance

Your Company had started crushing season 2021/22 on November 18, 2021 [CY2020/21: November 15, 2020]. The plant operated for 146 days in comparison to 124 days during last year and total effective crushing hours utilization has increased to 77.95% [FY2020: 77.3%]. During the current crushing season, BMR and maintenance impact was evident due to which stoppage hours other than no cane was reduced to 10% in comparison to last year which was approximately 12%. Intense competition was witnessed between the regional mills right from the start of the season. Despite this, your company has managed to crush 63.43% of additional cane in comparison to last year crushing.

Jauharabad Sugar Mills Limited, driven by the organization commitment and corporate responsibility, maintained its stance of timely payment to its growers and the same has been published in local newspaper after closure of the crushing season.

Financial Performance

The Company has posted top line of Rs. 3,151 million (FY2021: 2,124 million) with an overall increase of 48% mainly due to sale of by-products. Bottom line has shown significant improvement of approximately 57% despite increase of financial expense by more than 61% in comparison to corresponding period last season. Sale price is currently in lower spectrum and is anticipated to escalate to compensate for the manufacturing cost. Government is also intervening to stabilize the market rate that is acceptable to both the consumer and manufacturers. The Company has fulfilled all its financial commitments and has a healthy relationship with all financial institutions.

The credit rating, issued by PACRA, dated April 05, 2022, has been upgraded to Stable, depicting your Company's ability to provide optimal return on investment.

Acknowledgement

The Directors of the Company would like to thank all stakeholders for their commitment and continued support for the betterment and prosperity of the Company.

For & Behalf of Board

Syed Anwar Hussain Shahid

Chief Executive

04	Jauharabad Sugar Mills Limited