Sitara Peroxide : Transmission of Quarterly Report for the Period Ended 31.03.2023

NINEMONTHSREPORT MARCH31

2023

Company Information
Board of Directors	Mr. Yasir Ahmed Awan	Chairman
	Mr. Imran Ghafoor	Chief Executive Officer
	Mr. Haroon Ahmed Zuberi (FCA)	Non-Executive Director
	Mr. Junaid Makda	Non-Executive Director
	Mrs. Sharmeen Imran	Non-Executive Director
	Mr. Saqib Anjum	Non-Executive Director
	Mr. Saim Bin Saeed	Independent Director
Chief Financial Officer	Mr. Shahid Irshad
Company Secretary	Mr. Mazhar Ali Khan
Head of Internal Audit	Mr. Zia-ul-Mustafa
Audit Committee	Mr. Saim Bin Saeed	Chairman
	Mr. Yasir Ahmed Awan Mr.	Member
	Haroon Ahmed Zuberi	Member
Human Resource and	Mrs. Sharmeen Imran	Chairperson
Remuneration Committee	Mr. Imran Ghafoor Mr.	Member
	Saqib Anjum		Member
External Auditors	M/s Yousuf Adil
Chartered Accountants
Legal Advisor Registered	Sahibzada Waqar Arif
Office	601-602, Business Centre, Mumtaz Hassan
	Road, Off. I. I. Chundrigar Road, Karachi - 74000
	Ph : (92 21) 32401373, 32413944
Company Website	www.sitaraperoxide.com
Bankers	Al Baraka Bank (Pakistan) Limited
	Askari Bank Limited
	Bank Alfalah	Limited
	Faysal Bank	Limited
	Habib Bank Limited
	MCB Bank Limited
	Meezan Bank Limited
	National Bank Limited
	Soneri Bank Limited
	Standard Chartered Bank (Pakistan) Limited
	Summit Bank Limited
	United Bank Limited
	JS Bank Limited
	First Women Bank Limited
	Bank Al Habib Limited
Share Registrar	THK Associates (Private) Limited
Plot No. 32-C, Jami Commercial Street 2,
	DHA, Phase VII, Karachi - 75500, Pakistan.
	UAN: (92 21) 111-000-322
	Ph:	(92 21) 35310183-84
	Fax:	(92 21) 35310191
Head Office & Project	26 - KM Sheikhupura Road, Faisalabad.
Location	Ph : (92 41) 2400900-2,2400904-5
Sitara Peroxide Limited // Nine Months March 31, 2023	1

Directors' Report

DIRECTORS REVIEW

I, on the behalf of Board of Directors of your Company, have pleasure in presenting you the un-audited condensed interim financial information for the half year ended March 31, 2023.

The quarter under review has been very testing period for your Company. The Company is facing challenge of unprecedented rise in tariff of RLNG . The Company uses RLNG as feedstock in manufacturing of Hydrogen Peroxide and its captive power house in also run on RLNG . Unlike exporters, fertilizer manufacturers etc which receive natural gas at subsidized rate, local Hydrogen Peroxide manufacturing industry is exposed to fluctuations in tariff of RLNG in international market. Global demand of RLNG has been on higher side and global supply has been facing bottlenecks; resulting in higher tariff of RLNG to hydrogen peroxide manufacturing industry.

Net sales during the nine months period under review remained Rs. 522 million against net sales of Rs. 1,545 million during the corresponding period of financial last year. Drop in turnover during the period is due to decrease in sales volume; and sales volume decreased due to lower capacity utilization

of plant. Cost of sales remained to Rs. 679 million as compared to Rs. 1,460 million. Due to lower capacity utilization and rising cost of production, gross margins of your Company remained negative. During first nine months, Company incurred net loss after tax of Rs. 303 million and loss per share of Rs. 5.50; as against net loss after tax of Rs. 142 million and loss per share of Rs. 2.57 in corresponding period of last financial year.

During quarter ended March 31, 2023, net sales remained Rs. 137 million against net sales of Rs. 500 million during the corresponding period of financial last year. Cost of sales remained Rs. 180 million as compared to 474 million. The Company incurred net loss after tax of Rs. 83 million and loss per share of Rs. 1.50 against loss after tax of Rs. 50 million and loss per share of Rs. 0.90 in comparative quarter of corresponding financial year.

Despite all challenges, management of the Company has been positive about future business outlook. Demand of hydrogen peroxide and its prices are expected to remain strong in future. We are confident of much improved financial performance in future.

The Board takes this opportunity to thank all stakeholders for their continued support. We also appreciate and acknowledge the continued commitment and hard work of our employees.

Allah may give us the courage to face the challenges ahead. Aameen

On behalf of Board of Directors

Faisalabad	HAROON AHMED ZUBERI	IMRAN GHAFOOR
April 29, 2023	Director	Chief Executive Officer

2	Sitara Peroxide Limited // Nine Months March 31, 2023

Directors' Report
Sitara Peroxide Limited // Nine Months March 31, 2023	3

Statement of Financial Position

Condensed Interim Statement of Financial Position (Unaudited) as at March 31, 2023

ASSETS	Note
NON-CURRENT ASSETS

March 31,	June 30,
2023	2022
(Un-audited)	(Audited)
……...…….	Rupees ……...…….

Property, plant and equipment	4
Long term deposits
CURRENT ASSETS
Stores, spare parts and loose tools
Stock-in-trade	5
Trade debts
Advances
Deposits and short term prepayments
Advance income tax
Tax refundable
Cash and bank balances
SHARE CAPITAL AND RESERVES
Share capital
Un-appropriated (loss) / profit
Surplus on revaluation of property, plant and
equipment
NON-CURRENT LIABILITIES
Long-term financing
Deferred liabilities
CURRENT LIABILITIES
Trade and other payables
Contract liabilities
Loan from Chief Executive Officer
Accrued markup
Running finance under markup
arrangement Current portion of long term
financing Provision for income tax
CONTINGENCIES AND COMMITMENTS	6

2,658,193,319

52,730,973

2,710,924,292

107,532,307

294,097,815

201,895,164

262,286,024

180,698,406

52,169,309

83,343,720

15,862,764

1,197,885,509

3,908,809,801

551,000,000

(86,738,455)

1,368,798,291

1,833,059,836

-

494,623,570

494,623,570

486,846,489

228,441,816

234,965,000

253,294,638

146,245,215

223,498,619

7,834,618

1,581,126,395

-

3,908,809,801

2,789,162,656

17,817,143

2,806,979,799

116,585,945

272,468,996

215,238,160

129,102,245

146,463,633

182,317,697

35,073,952

1,816,178

1,099,066,806

3,906,046,605

551,000,000

140,654,535

1,444,238,118

2,135,892,653

17,437,818

545,980,578

563,418,396

380,738,235

178,838,380

233,263,515

25,000,000

129,184,738

236,705,593

23,005,095

1,206,735,556

-

3,906,046,605

The annexed notes from 1 to 11 form an integral part of these condensed interim financial statements.

CHIEF EXECUTIVE OFFICER	CHIEF FINANCIAL OFFICER	DIRECTOR
Sitara Peroxide Limited // Nine Months March 31, 2023	4