Tandlianwala Sugar Mills : Transmission of Quarterly Report for the Period Ended

Half Yearly

REPORT

March 31, 2024

Directors' Review Report

"In the name of ALLAH, the most gracious and most merciful"

Dear Shareholders,

The Board of Directors are pleased to present the condensed financial statements of the company, as reviewed by the auditors for the half year ended March 31, 2024.

The provincial governments of Punjab and KPK, this season notified sugarcane support price as Rs 400 per 40 Kg. Both provincial governments, as per previous years' practice, took no measures to ensure the supply at the notified price and the mills, unwillingly bought sugarcane at massively high prices.

This season, we successfully transferred sugarcane juice directly to distilleries, during part of the season, for high productivity of Ethanol.

During these six months period under review, the Company has earned profit before taxation, amounting to Rs.1.668 billion, as compared to profit before taxation of Rs 1.545 billion in the same period of last year.

This profit earning spree is highly unlikely to continue since the government has not allowed export of sugar while the international ethanol market also do not look very lucrative, during the remaining part of the year.

The sugar sector this season has accumulatively achieved surplus production of around 1.5 million metric tons in the country, which can easily earn approximately US $ 1.2 billion in foreign exchange.

The Mills are currently selling sugar at less than their cost of production, leading to a huge financial crisis for the majority of the Mills. As such, we are asking the federal government to take a prudent view and allow the export of additional sugar without any subsidies or financial support and also help earn huge foreign exchange, for its starved foreign reserves.

The government of Pakistan, however, seems unmoved and reluctant to take advantage of this opportunity so far.

We are hopeful that our ethanol division will be in operations for the maximum part of this year, which definitely will also bring good results by the year end.

On behalf of Board of

Directors

Akbar Khan

(Chief Executive Officer)

May 29, 2024

HALF YEARLY REPORT MARCH 31, 2024

1

2	HALF YEARLY REPORT MARCH 31, 2024

INDEPENDENT AUDITOR'S REVIEW REPORT

To the members of Tandlianwala Sugar Mills Limited

Report on Review of Interim Financial Statements

Introduction

We have reviewed the accompanying condensed interim statement of financial position of

Tandlianwala Sugar Mills Limited ("the Company") as at March 31, 2024 and the related condensed

interim statement of profit or loss and other comprehensive income , condensed interim statement of

changes in equity and condensed interim statement of cash flows, and notes to the financial

statements for the six-month period then ended (here -in-after referred to as the "interim financial

statements") . Management is responsible for the preparation and presentation of these interim

financial statements in accordance with accounting and reporting standards as appli cable in Pakistan

for interim financial reporting. Our responsibility is to express a conclusion on these financial

statements based on our review. The figures of the condensed interim statement of profit or loss and

condensed interim statement of comprehensive income for the quarter ended March 31, 2023 and 2024

have not been reviewed , as we are required to review only the cumulative figures for the six-month

period ended March 31, 2024.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagement 2410,

"Review of interim Financial Information Performed by the Independent Auditor of the entity". A

review of interim financial statements consists of making inquiries, primarily of persons responsible

for financial and accounting matters , and applying analytical and other review procedures. A review

is substantially less in scope than an audit conducted in accordance with International Standards on

Auditing and consequently does not enable us to obtain assurance that we would become aware of all

significant matters that might be identified in an audit. Accordingly, we do not express an audit

opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the

accompanying interim financial statements is not prepared, in all material respects, in accordance

with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

The engagement partner on the review resulting in this independent auditor's review report is Mr.

Malik Arsalan Ahmed.

Place:	Lahore	UHY Hassan Naeem & Co.
Date:	29-05-2024	Chartered Accountants
UDIN:	RR2024103114oVRQWehM

HALF YEARLY REPORT MARCH 31, 2024

3

Condensed Interim Statement of Financial Position (Un-audited)

As at March 31, 2024

		(Un-audited)	(Audited)
		31 March	30 September
		2024	2023
EQUITY AND LIABILITIES	Note	Rupees	Rupees

Authorized capital 120,000,000 (2023: 120,000,000) ordinary shares of Rs. 10 each

Share Capital and Reserves

Issued, subscribed and paid-up share capital

Share premium

Un-appropriated profit

Loan from Sponsors - unsecured

Non- Current Liabilities
Long term finances - secured	5
Lease liability - secured	6
Deferred liabilities
- Staff retirement benefits
- Deferred taxation	7
Current Liabilities
Short term borrowings - secured	8
Current portion of non-current liabilities	9
Trade and other payables	10
Interest and mark-up accrued
Provision for taxation
Contingencies and commitments	11
Total Equity and Liabilities

1,200,000,000

1,177,063,000

290,741,640

8,617,038,714

3,635,214,057

13,720,057,411

-

389,087,977

885,598,078

-

1,274,686,055

18,629,310,318

274,839,466

15,525,892,935

851,610,898

546,126,242

35,827,779,859

50,822,523,325

1,200,000,000

1,177,063,000

290,741,640

7,495,117,955

3,635,214,057

12,598,136,652

-

314,238,148

886,288,209

-

1,200,526,357

8,433,218,407

761,092,236

6,664,033,363

359,291,779

790,976,460

17,008,612,245

30,807,275,254

The annexed notes 1 to 27 form an integral part of these condensed interim financial statements.

_______________________	_______________________
Chief Financial Officer	Chief Executive Officer

4	HALF YEARLY REPORT MARCH 31, 2024

ASSETS	Note
Non - Current Assets
Property, plant and equipment	12
Long term deposits

Current Assets
Stores, spare parts and loose tools
Stock-in-trade	13
Trade debts - considered good	14
Advances, deposits, prepayments and other	15
Tax refunds due from Government
Cash and bank balances	16

Total Assets

(Un-audited)

31 March

2024

Rupees

14,793,222,722

386,552,922

15,179,775,644

2,181,842,644

23,954,668,708

18,603,681

8,012,409,853

1,287,496,140

187,726,655

35,642,747,681

50,822,523,325

(Audited)

30 September

2023 Rupees

14,972,450,176

289,409,122

15,261,859,298

1,735,372,446

5,131,402,809

3,843,118

6,873,082,982

791,721,744

1,009,992,857

15,545,415,956

30,807,275,254

___________

Director

HALF YEARLY REPORT MARCH 31, 2024

5

Condensed Interim Statement of Profit or Loss (Un-audited)

For the three month and six month periods ended March 31, 2024

	Note
Sales - net	17
Cost of sales	18
Gross profit
Administrative expenses
Distribution expenses
Other income	19

Six months ended

31 March		31 March
2024	2023
Rupees		Rupees
26,482,495,775	26,084,686,560
(22,741,022,352)		(22,938,525,017)
3,741,473,423	3,146,161,543
(416,420,464)		(361,851,956)
(159,478,325)		(286,841,257)
61,585,585		274,414,286
(514,313,204)		(374,278,927)

Three months ended

31 March		31 March
2024	2023
Rupees		Rupees
19,808,841,172	17,583,948,511
(17,201,067,233)		(15,410,657,106)
2,607,773,939	2,173,291,405
(220,794,053		(211,047,847)
(141,553,846)		(266,983,309)
13,269,486		274,079,376
(349,078,413)		(203,951,780)

Profit from operations

3,227,160,219

2,771,882,616

2,258,695,526

1,969,339,625

Finance cost

(1,456,725,943)

(1,116,951,711)

(1,035,645,321)

(737,860,866)

Other expenses

(102,387,275)

(110,050,930)

(87,434,041)

(106,023,712)

		(1,559,113,218)		(1,227,002,641)		(1,123,079,362)		(843,884,578)
Profit before taxation		1,668,047,001	1,544,879,975	1,135,616,164	1,125,455,047
Taxation	20	(546,126,242)		(392,378,190)		(469,054,116)		(273,848,489)
Profit after taxation		1,121,920,759	1,152,501,785	666,562,048	851,606,558
Earnings per share - Basic and Diluted		9.53	9.79	5.66	7.24

The annexed notes 1 to 27 form an integral part of these condensed interim financial statements.

_______________________	_______________________	___________
Chief Financial Officer	Chief Executive Officer	Director

6	HALF YEARLY REPORT MARCH 31, 2024

Condensed Interim Statement of Other Comprehensive Income / (Loss) (Un-audited)

For the three month and six month periods ended March 31, 2024

	Six months ended		Three months ended
	31 March		31 March		31 March		31 March
	2024	2023	2024	2023
	Rupees		Rupees		Rupees		Rupees
Profit after taxation	1,121,920,759	1,152,501,785	666,562,048	851,606,558
Other comprehensive income	-	-	-	-
Total comprehensive income for the period
1,121,920,759	1,152,501,785	666,562,048	851,606,558

The annexed notes 1 to 27 form an integral part of these condensed interim financial statements.

_______________________	_______________________	___________
Chief Financial Officer	Chief Executive Officer	Director

HALF YEARLY REPORT MARCH 31, 2024

7

8

Condensed Interim Statement of Changes in Equity (Un-audited)

For the six month period ended March 31, 2024

			Reserves
	Capital		Revenue		Loan from
Share capital						Total
	Share		Un-appropriated	Total reserves	Sponsors
	premium		profit
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - Rupees	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

HALF YEARLY

Balance as at October 01, 2022 (Audited)

Transactions with owners of the Company

Amount received during the period - net

Total comprehensive profit for the period

Profit for the period ended March 31, 2023

Other comprehensive income for the period ended March 31, 2023

Balance as at March 31, 2023 (Un-audited)

Balance as at October 01, 2023 (Audited)

Transactions with owners of the Company

Amount received during the period - net

Total comprehensive loss for the period

Profit for the period ended March 31, 2024

Other comprehensive income for the period ended March 31, 2024

1,177,063,000

-

-

-

-

1,177,063,000

1,177,063,000

-

-

-

-

290,741,640

-

-

-

-

290,741,640

290,741,640

-

-

-

-

5,963,048,710

-

1,152,501,785

-

1,152,501,785

7,115,550,495

7,495,117,955

-

1,121,920,759

-

1,121,920,759

6,253,790,350

-

1,152,501,785

-

1,152,501,785

7,406,292,135

7,785,859,595

-

1,121,920,759

-

1,121,920,759

3,635,214,057

129,156,663

-

-

-

3,764,370,720

3,635,214,057

-

-

-

11,066,067,407

129,156,663

1,152,501,785

-

1,152,501,785

12,347,725,855

12,598,136,652

-

1,121,920,759

-

1,121,920,759

REPORT MARCH 31, 2024

Balance as at March, 31 2024 (Unaudited)

1,177,063,000

290,741,640

8,617,038,714

8,907,780,054

3,635,214,057

13,720,057,411

The annexed notes 1 to 27 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive Officer

Director

_____________________________________________________

Condensed Interim Statement of Cash Flows (Un-audited)

For the six month period ended March 31, 2024

	31 March	31 March
	2024	2023
Note	Rupees	Rupees

Cash flow from operating activities

Profit before taxation
Adjustments:
Finance cost
Depreciation on property, plant and equipment
Provision for staff retirement benefits
Provision for worker's profit participation fund
Return on bank deposits	19

Operating profit before working capital changes

(Increase) / decrease in current assets: Stores, spares parts and loose tools Stock-in-trade

Trade debts - considered good

Advances, deposits, prepayments and other receivables

Increase / (decrease) in current liabilities:

Trade and other payables

Cash used in operations

Finance cost paid

Staff retirement benefits paid

Taxes paid

Long term deposits - net

Net cash used in operations

1,668,047,001		1,544,879,975
1,456,725,943			1,116,951,711
387,199,722				389,998,560
-
102,387,275				80,734,209
(52,998,849)				(5,118,260)
1,893,314,091					1,582,566,220
3,561,361,092		3,127,446,195
(446,470,198)			(294,501,066)
(18,823,265,899)				(10,139,906,982)
(14,760,563)				(2,477,516)
(1,139,326,871)				(935,403,670)
(20,423,823,531)				(11,372,289,234)
8,759,472,297		7,260,052,762
(8,102,990,142)		(984,790,277)
(964,406,824)			(1,042,404,064)
(690,131)				(3,939,093)
(1,286,750,860)				(561,477,112)
(97,143,800)				(75,775,401)
(2,348,991,615)					(1,683,595,670)
(10,451,981,757)		(2,668,385,947)

Cash flow from investing activities

Capital expenditure - net

Income received from bank deposits

Net cash used in investing activities

Cash flow from financing activities
Lease liabilities - net
Short term borrowings - net
Loan from sponsors
Long term finances
Net cash generated from financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
Cash and cash equivalents comprise of the following:
Cash and bank balances	16
Short term borrowings -RunningFinance	8

The annexed notes 1 to 27 form an integral part of these condensed interim financial statements.

(207,972,268)					(73,175,987)
52,998,849				5,118,260
(154,973,419)						(68,057,727)
(19,301,955)			38,010,584
10,196,091,915				2,588,840,999
-				129,156,663
(392,100,986)				(491,921,814)
9,784,688,974						2,264,086,432
(822,266,202)		(472,357,242)
910,490,702		545,275,190
88,224,500			72,917,948
187,726,655		172,420,103
(99,502,155)			(99,502,155)
88,224,500		72,917,948

_______________________	_______________________	___________
Chief Financial Officer	Chief Executive Officer	Director

HALF YEARLY REPORT MARCH 31, 2024

9