SKRS-ANNUAL-2015

SAKRAND SUGAR MILLS LIMITED
TWENTY SEVENTH ANNUAL REPORT

2015
CONTENTS PAGE NO.
Company Profile 2
Notice of Annual General Meeting 3
Vision and Mission Statement 4
Directors' Report 5
Statement of Compliance with the Code of

Corporate Governance 9
Review Report to the Members on Statement of

Compliance with Best Practices of Code of
Corporate Governance 11
Pattern of Shareholding 12
Pattern of Shareholding as per requirements of

Code of Corporate Governance 13
Auditors' Report 14
Balance Sheet 16
Profit and Loss Account 17
Other Comprehensive Income 18
Cash Flow Statement 19
Statement of Changes in Equity 20
Notes to the Financial Statements 21
Six Years Review at a Glance 53
Form of Proxy
1
COMPANY PROFILE
BOARD OF DIRECTORS Mr. Dinshaw H. Anklesaria Chief Executive/ Director
Mr. Jamil Akberi Director
Syed Abid Hussain Director
Mr. Abdul Naeem Quraishi Director
Mr. Neville Mehta Director
Mrs. Fatma Gulamali Director
Dr. Jamshed H. Anklesaria Director
AUDIT COMMITTEE Mr. Abdul Naeem Quraishi Chairman

Mr. Jamil Akberi Member
Mr. Neville Mehta Member
HR & R COMMITTEE Syed Abid Hussain Chairman

Mr. Jamil Akberi Member
Mr. Neville Mehta Member
CHIEF FINANCIAL OFFICER Mr. Farhaj Badar
COMPANY SECRETARY Mr. Mustafa Kanani
BANKERS Allied Bank Limited

Habib Bank Limited
MCB Bank Limited
National Bank of Pakistan
Sindh Bank Limited
Summit Bank Limited
United Bank Limited
AUDITORS M/s. Haroon Zakaria & Co.

Chartered Accountants
LEGAL ADVISOR Abdul Naeem Quraishi, Adv.
REGISTRAR M/s Evolution Factor (Private) Limited

407-408, Al Ameera Centre
Shahrah-e-Iraq, Saddar
Karachi-74400
REGISTERED OFFICE 41-K, Block 6, P.E.C.H.S., Karachi.

Fax: 021-34546456
www.sakrandsugar.com
FACTORY Deh Tharo Unar, Taluka Sakrand,

District Shaheed Benazirabad, Sindh.
2
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the 27thAnnual General Meeting of the shareholders of SAKRAND
SUGAR MILLS LIMITED, will be held on Thursday, January 28, 2016 at 09:00 a.m. at the registered
office of the Company situated at 41-K, Block 6, P.E.C.H.S., Karachi for transacting the following
business.
ORDINARY BUSINESS:
1. To confirm the minutes of the Annual General Meeting held on January 31, 2015.
2. To receive, consider and adopt the audited accounts of the Company for the year ended September
30, 2015 together with the Directors' Report and Auditors' Report thereon.
3. To appoint Auditors and to fix their remuneration.
4. To elect Directors in place of retiring Directors. The Board of Directors has fixed the number of
Directors to be elected under Section 178(1) of the Companies Ordinance, 1984 at seven (7).
The retiring Directors are:
1. Mr. Dinshaw H. Anklesaria 2. Mr. JamilAkberi

3. Syed Abid Hussain 4. Mr. Abdul Naeem Quraishi
5. Mr. Neville Mehta 6. Mrs. Fatma Gulamali
7. Dr. Jamshed H. Anklesaria
5. To consider any other business with the permission of the Chair.
By order of the Board
(MUSTAFA KANANI)
Karachi Company Secretary
Dated : January 02, 2016
NOTES :
1. The Shares Transfer Books of the Company will remain closed from January 21, 2016 to January
28, 2016. (both days inclusive).
2. A member entitled to attend and vote at this meeting may appoint another member as his/her
proxy to attend the meeting and vote on his/her behalf. Proxies, in order to be effective, must
be received by the Company not less than 48 hours before the meeting.
3. A member who has deposited his/her shares into Central Depository Company of Pakistan
Limited, must bring his/her participant's ID number and CDC account/sub-account number
along with original Computerized National Identity Card (CNIC) or original Passport at the
time of attending the meeting.
4. Members who have not yet submitted photocopy of their CNIC are requested to send the same
to our Share Registrar at the earliest.
5. Members are requested to notify any change in their address immediately.
6. Kindly quote your folio number in all correspondence with the Company.
3
VISION & MISSION STATEMENT
VISION
To make a product of International Standard acceptable as a brand in

the world market. To explore business opportunities available under
the World Trade Organization regime.
MISSION
Sustained contribution to the National Economy by producing cost

effective product.
To ensure professionalism and healthy working environment.
To create a reliable product through adoption of latest technology/

advancement.
To promote research & development and provide technical know

how to the growers for improvement of sugarcane yield/recovery.
4
DIRECTORS' REPORT
We are pleased to welcome you to the 27th Annual General Meeting of the Company and present
the financial and operating results along with audited financial statements for the year ended
September 30, 2015 together with the auditors' report thereon.
INDUSTRY REVIEW
Pakistan has now crossed 5.0 million tonne mark in production of sugar. The industry commenced
season with a carry over stock of around 1.10 million tonne of sugar. This surplus production was
possible due to the bumper sugarcane crop in Pakistan. The farmers consider sugarcane as the most
viable cash crop owing to the continuing increase in sugarcane prices by the provincial governments.
The carry over stock of sugar, high sugar production, increase in sugarcane price, all led to a bearish
trend in the prices of sugar.
Global markets were also under tremendous pressure due to surplus stocks. International sugar
prices were trading at $725/- Ton in 2011, $575/- Ton in 2012, $440/- Ton in 2013, $370/- Tons in
2014 and presently is trading at $400/-. Local prices range is from 45 to 50 per kg.
The Mill started crushing season on December 05, 2014 and closed on March 12, 2015. During
the current season the mill operated for 98 days and crushed 441,621 metric tons of sugarcane and
produced 45,100 metric tons of sugar as compare to last season when it operated 142 days and crushed
770,516 metric tons of sugarcane to produce 70,864 metric tons of sugar. The recovery of sucrose
increased to 10.210% as against 9.188% last season. In current season the production of molasses
decreased to 18,700 metic tons as compare to 33,397 last year.
Current season 2014-15 started with lot of controversies, as Sindh Government unilaterally fixed
the sugarcane price as Rs.182/ 40kg which was unanimously rejected by most of the sugar
mills who demanded to fix the minimum price at Rs.155/40 kg. This increase would result
in increase in basic raw material of the product. The Government of Sindh promised to
fix the minimum sugarcane price at Rs.155/40 kg which was further confirmed by notification
No. 8(142) /S.O (Ext)95-XXIII dated 03-12-2014. But just after six (06) days this notification was
withdrawn on 09-12-2014 and inacted the first notification dated 07-11-2014 and fixed the sugarcane
support price for the season 2014 - 15 at Rs.182/40kg plus quality premium.
By aggrieved the decision taken by the Sindh Government most of the sugar mills filed the petition
before the Honble High Court. Which has ordered that the price should be Rs.172 per mound out
of which Rs.12 will be paid by the Sindh Government through sugar mills & Rs.10 per mound will
be paid subject to the order of Hon'ble Supreme Court which is under subjudices.
The Government of Sindh has paid Rs.12 per mound, which has further distributed to the Growers
during finanacial year.
Operationally, reports indicate average sugarcane crop during the season 2015-16. In financial terms,
continuing pressure on price (both nationally as well as internationally) will over burden the industry.
5
FINANCIAL RESULTS
The comparative financial results are as follows:
(Amount in '000')
2015 2014 Increase/ % age
(Decrease)
............................ Rupees ............................
Sales 2,613,738 3,486,661 (872,923) (25.04)

Cost of sales 2,616,495 3,690,363 (1,073,868) (29.10)
Gross (loss) /profit (2,756) (203,702) (200,946) (98.65)
Loss before tax (190,579) (424,328) (233,749) (55.09)
Net loss after tax (228,161) (186,426) 41,735 22.39
2015 2014 Increase/ % age

OPERATING RESULTS (Decrease)
Sugarcane crushed MT 441,621 770,516 (328,895) (42.69)

Sugar produced MT 45,100 70,864 (25,764) (36.36)
Molasses produced MT 18,700 33,397 (14,697) (44.01)
Sugar recovery % 10.21 9.188 1.02 11.12
Considering the downward trend of sugar prices, the Company basically focused on improving high
sucrose recovery. The financial limitation within the Company and the steady decline in sugar prices
have restricted the Company from incurring a profit.
AUDITORS' REPORT
The auditors have qualified the Annual Accounts on the following not recognizing the financial
liability of an amount of Rs. 17 million payable to IDBP & Rs. 224 million payable to HBL, the markup
against liability of IDBP and MCB Bank Ltd., and provision against trade debts of Rs. 184 million.
Financial liability of HBL

A settlement has been reached with HBL whereby Company has deposited the securities. The
Company has directly recorded the restructuring effect to its profit and loss account, instead of
amortising the same until the maturity of the agreements.
Liability of IDBP
The liability of IDBP is sub-judice before the High Court of Sindh. The Company has questioned the
markup on markup carried out by IDBP.
Liability of MCB Bank Ltd.

The issue is under discussion with the Bank.
Recovery of trade debts

The Company considers the entire amount as good and expects to recover the amount in due course
of time.
6
FUTURE OUTLOOK
The Company commenced its crushing season of 2015-16 on November 24, 2015, for the season
2015-16, the Government of Sindh has not fixed the sugarcane price yet and sales prices are on decline
trend. It was agitated that this inverse proportion will ultimately contribute towards operatational
difficulties, financial losses and outstanidng gowers' liabilities. The millers are again facing shortage
of sugarcane and price war amongst the sugar mills.
Beside all the harships facing by the industry the company is fully geared to steer through this hard
season of high expected sugarcane minimum support price, and low sugar prices.
LABOUR MANAGEMENT RELATIONS
The management / labour relations remained cordial and helpful. I take this opportunity to thank
and appreciate the spirit of understanding, good will and co-operation shown by the staff/workers
and hope that the same will continue in future.
I thank the executives, officers and all the staff members of the Company and wish to place on record
my appreciation for the devotion, sense of responsibility and loyalty.
AUDITORS
M/s. Haroon Zakaria & Co., Chartered Accountants retire and offer their services for the year
2015-2016.
STATEMENT ON CORPORATE AND FINANCIAL REPORTING FRAMEWORK
1 The financial statements, prepared by the Company, present fairly its state of affairs, the result
of its operation, cash flows and changes in equity.
2 Proper books of accounts of the Company have been maintained.
3 Appropriate accounting policies have been consistently applied in preparation of the financial
statements, changes if any have been adequately disclosed and accounting estimates are based
on reasonable and prudent judgment.
4 There is no doubt on the going concern of the Company.
5 The Company maintains Provident Fund account for its employees. The value of investment of
the fund as on June 30, 2015 is Rs. 44,750,000.
6 International Accounting Standards, as applicable in Pakistan, have been followed in preparation
of financial statements and departure there from if any, has been adequately disclosed.
7 The system of internal control is sound in design and has been effectively implemented and
monitored.
8 Key operating and financial data for last six years in summarized form is annexed.
9 There has been no material departure from the best practices of Corporate Governance except
those mentioned in the preamble of the statement.
7
10 During the year, seven meetings of the Board of Directors and four meetings of Audit Committee
were held as detailed below.
Name of Director Number of meetings attended

BOD Audit Committee
Mr. Dinshaw H. Anklesaria 6

Mr. Jamil Akberi 7 4
Mr. Abdul Naeem Quraishi 7 4
Mr. Neville Mehta 7 4
Syed Abid Hussain 7
Mrs. Fatma Gulamali 7
Dr. Jamshed H. Anklesaria 7
11 Orientation course for the Directors were arranged by the Company during the year 2015 to
appraise their duties and responsibilities. One Director has completed and obtained certification
under the Corporate Governance, Management and Administration of Company offered by
Executive Development Centre, University of Lahore. The Company intends to conduct directors'
training program for other directors during the year 2016.
12 During the year, trading of NIL number of shares were carried out by the directors and their
spouses and minor children.
13 During the year, the Company suffered loss as per reasons explained earlier and therefore could
not declare dividend for the shareholders.
PATTERN OF SHARE HOLDING
The pattern of share holding and additional information regarding pattern of shareholding as on
30th September, 2015 is annexed.
CONCLUSION
At the end, let us pray to Almighty ALLAH to guide us in our pursuits of national development and
for the betterment of your organization Ameen.
Thank you all,

for SAKRAND SUGAR MILLS LIMITED
Dinshaw H. Anklesaria
Chief Executive
Karachi: January 02, 2016
8
STATEMENT OF COMPLIANCE WITH THE CODE
OF CORPORATE GOVERNANCE
This statement is being presented to comply with the Code of Corporate Governance contained in
the Listing Regulations of Karachi and Lahore Stock Exchanges for the purposes of establishing a
framework of good governance, whereby a listed Company is managed in compliance with the best
practices of corporate governance.
The Company has applied the principles contained in the CCG (Revised Code 2012) in the following
manner:
1. The Company encourages representation of independent non-executive directors and directors

representing minority interests on its Board of Directors. At present the Board includes 5 (five)
non-executive directors and 2 (two) executive directors including the CEO.
Category Names
Executive Directors Mr. Dinshaw H. Anklesaria

Syed Abid Hussain
Non-Executive Directors Mr. Jamil Akberi

Mr. Abdul Naeem Quraishi
Mr. Neville Mehta
Mrs. Fatma Gulamali
Dr. Jamshed H. Anklesaria
2. The directors have confirmed that none of them is serving as a director in more than 7 (seven)
listed companies, including this Company.
3. All the resident directors of the Company are registered as taxpayers and none of them has
defaulted in payment of any loan to a banking Company, a Development Financial Institution
or a Non-banking financial Institution or, being a member of a stock exchange, has been declared
as a defaulter by that stock exchange.
4. No casual vacancy occurred in the Board of Directors during the year under review.
5. The Company has prepared a Statement of Ethics and Business Practices which has been signed
by all the directors and senior employees of the Company.
6. The Board has developed a vision/mission statement, overall corporate strategy and significant
policies of the Company. A complete record of particulars of significant policies along with the
dates on which they were approved or amended has been maintained.
7. All the powers of the Board have been duly exercised and decisions on material transactions,
including appointment and determination of remuneration and terms and conditions of
employment of the CEO, other executive and non-executive directors, have been taken by the
Board/Shareholders.
8. The meetings of the Board were presided over by the Chief Executive and, in his absence, by a
director elected by the Board for this purpose. Written notices of the Board meetings, along with
agenda and working papers, were circulated at least seven days before the meetings. The minutes
of the meeting were appropriately recorded and circulated.
9. According to clause 11 of the revised Code 2012, "At least one director is required to have the
certification of directors' training program by June 30, 2013 and by June 30, 2016 every year at
least one director to acquire the said certification; thereafter all directors shall obtain it. However
9
individuals with a minimum of 14 years of education and 15 years of experience on the board
of a listed Company shall be exempted from the directors' training program". Four directors of
the Company have obtained the certification of directors' training program up to September 30,
2015 as per the requirement of this clause. The Company is planning to arrange Director's
Training for other directors too, in the next year.
10. The board has approved appointment of CFO, Company Secretary and Head of Internal Audit.
All these appointments were made before the revised CCG has taken effect.
11. The Directors' Report for this year has been prepared in compliance with the requirements of
the Code and fully describes the salient matters required to be disclosed.
12. The CEO and CFO have duly endorsed the financial statements of the Company before approval
of the Board.
13. The directors, CEO and executives do not hold any interest in the shares of the Company other
than that disclosed in the pattern of shareholding.
14. The Company has compiled with all the corporate and financial reporting requirements of the
code.
15. The Board formed an audit committee on 10/08/2009. It comprises of 3 (three) non-executive
directors including the Chairman.
16. The meetings of the audit committee were held at least once in every quarter prior to approval
of interim and final results of the Company and as required by the CCG. The terms of reference
of the committee have already been formed and advised to the committee for compliance.
17. The board has formed a Human Resource and Remuneration Committee (HR&R). It comprises
of three (03) members of whom two (02) are non-executive directors and the chairperson of the
committee is an executive director.
18. The Board has set-up an internal audit function. Its effectiveness has to be improved as to its
independence for which efforts are being made.
19. The statutory auditors or the persons associated with them have not been appointed to provide
other services except in accordance with the listing regulations and the auditors have confirmed
that they have observed IFAC guidelines in this regard.
20. The statutory auditors or the persons associated with them have not been appointed to provide
other services except in accordance with the listing regulations and the auditors have confirmed
that they have observed IFAC guidelines in this regard.
21. The 'closed period', prior to the announcement of interim/final results, and business decisions,
which may materially affect the market price of Company's securities, was determined and
intimated to directors, employees and stock exchange(s).
22. Material/price sensitive information, if any, is disseminated among all market participants at
once through stock exchange(s).
23. As there is no related party transaction, the statement regarding Transfer Pricing is not applicable
to our Company.
24. Our CFO meets the qualification required by the CCG. Our Internal Audit is headed by a qualified
Internal Auditor.
25. It is confirmed that all material principles contained in the Code have been duly complied with.
On behalf of Board of Directors
DINSHAW H. ANKLESARIA
Chief Executive
January 02, 2016
10
REVIEW REPORT TO THE MEMBERS ON STATEMENT OF COMPLIANCE
WITH BEST PRACTICES OF CODE OF CORPORATE GOVERNANCE
We have reviewed the Statement of Compliance with the best practices contained in the Code of
Corporate Governance (CCG) (Revised 2012) prepared by the Board of Directors of Sakrand Sugar
Mills Limited to comply with the relevant Listing Regulations of the Karachi Stock Exchange Limited
and Lahore Stock Exchange Limited where the Company is listed.
The responsibility for compliance with the Code of Corporate Governance is that of the Board of
Directors of the Company. Our responsibility is to review, to the extent where such compliance can
be objectively verified, whether the Statement of Compliance reflects the status of the Company's
compliance with the provisions of the Code of Corporate Governance and report if it does not. A
review is limited primarily to inquiries of the Company personnel and review of various documents
prepared by the Company to comply with the Code.
As part of our audit of financial statements we are required to obtain an understanding of the
accounting and internal control systems sufficient to plan the audit and develop an effective audit
approach. We are not required to consider whether the Board's statement on internal control covers
all risks and controls, or to form an opinion on the effectiveness of such internal controls, the
Company's corporate governance procedures and risks.
Further, Listing Regulations of Karachi and Lahore stock exchanges require the Company to place
before the Board of Directors for their consideration and approval of related party transactions
distinguishing between transactions carried out on terms equivalent to those that prevail in arm's
length transactions and transactions which are not executed at arm's length price recording proper
justification for using such alternate pricing mechanism. Further, all such transaction are also required
to be separately placed before the audit committee. We are only required and have ensured compliance
of requirement to the extent of approval of related party transaction by the Board of Directors and
placement of such transaction before the audit committee. We have not carried out any procedures
to enable us to express an opinion as to whether the related party transactions were carried out at
arm's length price or not.
Based on our review, except for the pending appointment of independent director and matter stated
in note 5 to Statement of Compliance, nothing has come to our attention which causes us to believe
that the Statement of Compliance does not appropriately reflect the status of Company's compliance,
in all material respects, with the best practices contained in the Code of Corporate Governance as
applicable to the Company for the year ended September 30, 2015.
Haroon Zakaria & Company Place: Karachi

Chartered Accountants Dated: January 2, 2016
11
PATTERN OF SHAREHOLDING
OF THE SHARES HELD BY THE SHAREHOLDERS
AS AT SEPTEMBER 30, 2015
NUMBER OF SHARE HOLDING TOTAL
SHAREHOLDERS FROM TO SHARES HELD
548 1 - 100 45,750
642 101 - 500 273,627
296 501 - 1000 216,968
215 1001 - 5000 526,335
74 5001 - 10000 584,473
27 10001 - 15000 352,358
8 15001 - 20000 147,400
9 20001 - 25000 203,676
6 25001 - 30000 160,376
3 30001 - 35000 102,500
4 35001 - 40000 156,300
1 40001 - 45000 40,640
9 45001 - 50000 426,080
2 50001 - 55000 107,700
1 55001 - 60000 60,000
1 60000 - 65000 60,700
2 65001 - 70000 136,200
1 75001 - 80000 79,800
1 95001 - 100000 100,000
1 105001 - 110000 107,300
1 120001 - 125000 121,848
1 125001 - 130000 127,420
1 145001 - 150000 149,300
1 155001 - 160000 157,500
4 195001 - 200000 792,744
1 200001 - 205000 201,000
1 205001 - 210000 207,092
1 295001 - 300000 300,000
1 310001 - 315000 313,956
1 320001 - 325000 321,900
1 340001 - 345000 340,700
1 395001 - 400000 400,000
2 465001 - 470000 937,680
1 495001 - 500000 500,000
2 500001 - 505000 1,006,974
1 895001 - 900000 900,000
1 1030001 - 1035000 1,031,500
1 1545001 - 1550000 1,545,826
1 1555001 - 1560000 1,559,960
1 1925001 - 1930000 1,927,978
1 5575001 - 5580000 5,576,439
1,877 22,308,000
No. of Total Shares Percentage

S.No. Category Shareholders Held %
1 INDIVIDUAL LOCAL 1846 19,062,658 85.46
2 FINANCIAL INSTITUTION 9 1,660,518 7.44
3 INSURANCE COMPANY 3 245,992 1.10
4 INVESTMENT COMPANY 5 176,632 0.79
5 JOINT STOCK COMPANY 9 610,508 2.74
6 MODARBA COMPANY 2 198,300 0.89
7 LEASING COMPANY 1 40 -
8 CO-OPERATIVE SOCIETIES 1 12,652 0.06
9 MUTUAL FUND 1 340,700 1.53
1,877 22,308,000 100
12
PATTERN OF SHAREHOLDING AS AT SEPTEMBER 30, 2015
AS PER REQUIREMENTS OF
THE CODE OF CORPORATE GOVERNANCE
Number of Category wise Category wise Percentage

Category shares held No. of shareholders shares held %
JOINT STOCK COMPANIES 9 610,508 2.74
INVESTMENT COMPANIES 5 176,632 0.79
DIRECTORS, CHIEF EXECUTIVE AND 8 9,252,383 41.48

THEIR SPOUSE AND MINOR CHILDERN
Mr. Dinshaw Hoshang Anklesaria 5,576,439

Mr. Jameel Akbari 500,500
Mr. Abid Hussain 543,444
Mrs. Fatima Gulmali 400,000
Mr. Abdul Naeem Qureshi 300,000
Mr. Neville Mehta 1,031,500
Dr. Jamshed Hoshanh Anklesaria 500
Mrs. Roxanne Mehta 900,000
EXECUTIVES 1 20,196 0.09
BANKS,DFIS,NBFIS,INSURANCE COMPANIES, 16 2,445,550 10.96

MODARADAS AND MUTUAL FUNDS
CO-OPERATIVE SOCIETIES 1 12,652 0.06
INDIVIDIALS 1837 9,790,079 43.89
1,877 22,308,000 100.00
Shareholders holding five percent or more voting interest in the company
Name of Shareholders No. of Shares held Percentage
Mr. Dinshaw Hoshang Anklesaria 5,576,439 25.00

Mr. Yasir Gul 1,927,978 8.64
Syed Shujaat Ali 1,559,960 6.99
Nasreen Shujaat 1,545,826 6.93
10,610,203 47.56
13
AUDITORS REPORT TO THE MEMBERS
We have audited the annexed balance sheet of Sakrand Sugar Mills Limited as at September 30, 2015 and the
related profit and loss account, statement of other comprehensive income, cash flow statement and statement
of changes in equity together with the notes forming part thereof, for the year then ended and we state that
we have obtained all the information and explanations which, to the best of our knowledge and belief, were
necessary for the purposes of our audit.
It is the responsibility of the Company's management to establish and maintain a system of internal control,
and prepare and present the above said statements in conformity with the approved accounting standards and
the requirements of the Companies Ordinance, 1984. Our responsibility is to express an opinion on these
statements based on our audit.
Except as given in note c & d below, we conduct our audit in accordance with the auditing standards as
applicable in Pakistan. These standards require that we plan and perform the audit to obtain reasonable
assurance about whether the above said statements are free of any material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the above said statements. An
audit also includes assessing the accounting policies and significant estimates made by management, as well
as, evaluating the overall presentation of the above said statements. We believe that our audit provides a
reasonable basis for our opinion and, after due verification, we report that:
a. The Company has derecognized bank liabilities of Rs.241.815 million in 2009, the waiver of which is
dependent on compliance with term of settlement and rescheduling arrangements. This result in
understatement of liabilities and losses by Rs.241.815 million.
b. Markup on IDBP loan liabilities is not recorded since 2010 owing to litigation. Currently its impact could
not be determined owing to non availability of accurate mark up rate. Further confirmation from IDBP
remain unresponded.
c. Confirmation from MCB remained un-responded and relevant facts are still unsubstantiated including
non accrual of markup.
d. Confirmation from trade debts of Rs. 132.538 million remained un-responded and relevant facts are not
substantiated by us
e. In our opinion except as discussed above, proper books of accounts have been kept by the Company as
required by the Companies Ordinance, 1984;
f. In our opinion subject to above matters:
i) the balance sheet and profit and loss account together with the notes thereon have been drawn up
in conformity with the Companies Ordinance, 1984, and are in agreement with the books of account
and are further in accordance with the accounting policies consistently applied except changes as
explained in note 3.2 with which we concur;
ii) the expenditure incurred during the year was for the purpose of the Company's business; and
iii) the business conducted, investments made and the expenditure incurred during the year were in
accordance with the objects of the Company;
g. In our opinion, except for the effects of matter stated in paragraphs (a) to (d) above, the balance sheet,
profit and loss account, statement of other comprehensive income, cash flow statement and statement of
changes in equity together with the notes forming part thereof conform with approved accounting standards
as applicable in Pakistan, and give the information required by the Companies Ordinance, 1984, in the
manner so required and respectively give a true and fair view of the state of the Company's affairs as at
September 30, 2015 and of the loss, its cash flows and changes in equity for the year then ended; and
14
h. in our opinion, no Zakat was deductible at source under the Zakat and Ushr Ordinance, 1980.
Emphasis of matter paragraph
We draw attention to the note 1.2 which indicates that the Company has incurred continuous losses and its
accumulated losses has reached to Rs. 881.714 million and its current liability has exceeded its current assets
by Rs. 1,120.745 million. These conditions indicate the existence of material uncertainty that may cause significant
doubt about the Company's ability to continue as a going concern and accordingly Company may not realize
its assets and discharge its liabilities at stated amount unless mitigating factors are materialized.
We further draw attention to note 2.2 which explains as to why compliance with relevant retirement of IAS
39 will produce misleading results
Our opinion is not qualified in respect of these matters.
Haroon Zakaria & Company Place: Karachi

Chartered Accountants Dated: January 02, 2016
Engagement Partner:
Farhan Ahmed Memon
15
BALANCE SHEET
AS AT SEPTEMBER 30, 2015
Note 2015 2014
............... Rupees ...............
ASSETS
Non-Current Assets
Property, plant and equipment 5 2,468,869,990 2,592,051,216
Long term investments 6 141,520,264 126,188,376
Long term loans 7 318,991 303,304
Long term deposits 8 1,431,282 1,596,366
Current Assets
Stores, spares and loose tools 9 29,109,445 29,686,694
Stock in trade 10 8,632,883 230,499,284
Trade debts - Unsecured (Considered good) 11 132,548,433 134,318,433
Loans and advances 12 45,872,861 65,625,705
Prepayments and other receivables 13 13,009,074 17,012,683
Taxation refundable 39,511,148 32,960,594
Cash and bank balances 14 7,353,819 31,600,756
276,037,663 541,704,149
Total Assets 2,888,178,190 3,261,843,410
EQUITY AND LIABILITIES
Share Capital and Reserves

Authorized capital
25,000,000 (2014 : 25,000,000) Ordinary shares
of Rs.10 each 250,000,000 250,000,000
Issued, subscribed and paid-up capital 15 223,080,000 223,080,000

Accumulated loss (881,713,717) (718,799,054)
(658,633,717) (495,719,054)
Surplus on revaluation of fixed assets 16 1,402,329,336 1,467,993,107
Non-Current Liabilities
Subordinate loan from directors 65,766,502 45,998,100
Deferred taxation 16 & 17 424,508,898 387,123,454
Long term finance - Secured

Markup bearing 18 (a) 236,326,479 275,519,036
Markup free 18 (b) 9,237,215 7,799,181
245,563,694 283,318,217
Provision for gratuity 19 11,861,268 9,338,111
Current Liabilities
Trade and other payables 20 1,085,767,117 1,060,290,269
Short term borrowings 21 124,996,633 323,906,899
Mark up accrued 22 29,292,326 40,493,024
Current portion of non current liabilities 18 (a) & (b) 156,726,133 139,101,283
1,396,782,209 1,563,791,475
Contingencies and Commitments 23
Total Equities and Liabilities 2,888,178,190 3,261,843,410
The annexed notes from 1 to 44 form an integral part of these financial statements
Dinshaw H. Anklesaria Syed Abid Hussain

Chief Executive/Director Director
16
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Note 2015 2014
............... Rupees ...............
Sales - Net 24 2,613,738,185 3,486,660,907

Cost of sales 25 (2,616,494,517) (3,690,363,349)
Gross Loss (2,756,332) (203,702,442)
Operating expenses
Administrative expenses 26 (143,852,632) (139,146,441)
Distribution cost 27 (4,283,311) (5,393,280)
(148,135,943) (144,539,721)
Operating loss (150,892,275) (348,242,163)
Other charges 28 (372,290) (955,089)

Other income 29 1,776,186 1,244,546
1,403,896 289,457
(149,488,379) (347,952,706)
Unrealised gain on loan amortisation 30 8,580,294 9,062,099
Finance cost 31 (49,670,656) (85,437,350)
Loss before taxation (190,578,741) (424,327,957)
Provision for taxation
Current - -
Deferred 17.2 (37,582,004) 237,901,891
(37,582,004) 237,901,891
Loss after taxation (228,160,745) (186,426,066)
Loss Per Share-Basic and Diluted 35 (10.23) (8.36)

17
OTHER COMPREHENSIVE INCOME
2015 2014
............... Rupees ...............
Loss after taxation (228,160,745) (186,426,066)
Other comprehensive income
Remeasurement of defined benefit liability (614,249) (2,700,825)
Deferred tax related to remeasurement of defined benefit liability 196,560 891,272
Transfer from surplus on revaluation of fixed assets on

account of incremental depreciation for the year net of
deferred taxation
65,663,771 38,900,133
Total Comprehensive loss (162,914,663) (149,335,485)

18
CASH FLOW STATEMENT
2015 2014
A. CASH FLOW FROM OPERATING ACTIVITIES ............... Rupees ...............
Loss before taxation (190,578,741) (424,327,957)
Adjustments for:
Depreciation 127,806,344 91,914,760

Financial cost 43,218,591 78,269,327
Interest expense-imputed 6,452,065 7,168,023
Provision for gratuity 2,271,340 1,710,913
Gain on disposal of property, plant & equipment (1,731,046) (1,196,485)
Effect of increase in KIBOR 6,751,594 4,608,777
Gain on amortisation of investment (15,331,888) (13,670,876)
169,437,000 168,804,439
Operating loss before working capital changes (21,141,741) (255,523,518)
Decrease / (increase) in current assets

Stores, spares and loose tools 577,249 (5,149,388)
Stock in trade 221,866,401 57,797,149
Trade debts 1,770,000 50,685,059
Loans and advances 19,752,844 (46,316,399)
Prepayments and other receivables 4,003,609 (8,970,912)
247,970,103 48,045,509
Increase in current liabilities
Trade and other payables 25,476,848 366,618,639
273,446,951 414,664,148
252,305,210 159,140,630
Taxes paid (6,747,114) (9,404,650)

Financial cost paid (54,419,289) (75,145,827)
Gratuity paid (165,872) (1,593,183)
(61,332,275) (86,143,660)
Net cash generated from operating activities 190,972,935 72,996,970
B. CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property , plant and equipment (9,382,379) (13,415,103)

Proceeds from disposal of property , plant and equipment 6,488,306 2,368,880
Long term deposits 165,084 (5,000)
Long term loans (15,687) (64,856)
Net cash used in investing activities (2,744,676) (11,116,079)
C. CASH FLOWS FROM FINANCING ACTIVITIES
Loan from directors 19,768,402 45,998,100

Repayment of long term loans (33,333,332) (24,999,999)
Net cash (used in) / generated from financing activities (13,564,930) 20,998,101
Net increase in cash and cash equivalents 174,663,329 82,878,992
Cash and cash equivalents at the beginning of the year (292,306,143) (375,185,135)
Cash and cash equivalents at the end of the year 36 (117,642,814) (292,306,143)

19
STATEMENT OF CHANGES IN EQUITY
Issued,
subscribed Accumulated Total
and paid-up Loss
capital
.............................. Rupees ..............................
Balance as at September 30, 2013 223,080,000 (569,463,569) (346,383,569)
Total Comprehensive loss
Net loss for the year (186,426,066) (186,426,066)
Other comprehensive income for the year 37,090,581 37,090,581

(149,335,485) (149,335,485)
Total Comprehensive loss
Other comprehensive income for the year 65,246,082 65,246,082

(162,914,663) (162,914,663)

20
NOTES TO THE FINANCIAL STATEMENTS
1 STATUS AND NATURE OF BUSINESS
1.1 Sakrand Sugar Mills Limited was incorporated in Pakistan as a Public Limited Company
on March 02, 1989 and its shares are quoted on Karachi and Lahore Stock Exchanges. The
registered office of the company is situated in 41-K, Block-6, P.E.C.H.S, Karachi. The principal
business of the Company is that of manufacturing and sale of sugar. The mill is located at Deh
Tharo Unar, Taluka Sakrand, District Nawabshah, Sindh.
1.2 The company has incurred net loss of Rs. 228.161 million (2014 : Rs.186.426 million). Its
accumulated losses amounted to Rs. 881.714 million (2014 : Rs. 718.799 million) and its current
liabilities exceeds its current assets by Rs. 1120.745 million (2014 : Rs. 1022.087 million). Final
outcome of the contingencies is also uncertain.
These factors indicate the existense of material uncertainities that may cast doubts regarding the
company's ability to continue as going concern and accordingly company may not be able to
realize its assets and discharge its liabilities at stated amount. However following mitigating
factors cause the company to prepare the financial statements on going concern basis.
The company filed suit against IDBP in 2010 in the High Court of Sindh Karachi. It has sought
settlement of the liability at an amount of Rs. 101.61 million on the ground that the restructured
loan includes markup on the capitalized markup amounting to Rs. 29 million which is wrongly
charged. Additionally, the Company has not charged markup for the year amounting to Rs.8.02
million (2014 : Rs.9.54 million) and cumulatively mark-up from 01 April, 2010 to September 30,
2015 amounting to Rs. 63.068 million and corresponding increase in current liabilities. The suit
is pending since 2010 and the amount of unbooked liability is expected to be reversed by the
bank as the same is disputed on merit.
Besides these, trade debts of company amounting to Rs. 132.538 million (2014: Rs. 133.8 million)
represents un-secured and overdue balance for which management expects subsequent recovery.
The company has strong support from directors' and NBP facilities as well as fertilizer trading
all are expected to result in meeting working capital requirements of the company. The Company
commenced crushing for the season 2015-2016 and have planned increased crushing for the
season with increase in its capacity utilization and expects to generate reasonable profit from
these operations.
In view of above, these financial statements have been prepared using going concern assumption.
2 STATEMENT OF COMPLIANCE
2.1 These financial statements have been prepared in accordance with approved accounting standards
as applicable in Pakistan except for IAS-39 (Refer note - 2.2 below). Approved accounting
standards comprise of such International Accounting Standards (IASs) / International Financial
Reporting Standards (IFRSs) issued by International Accounting Standard Board as are notified
under the Companies Ordinance, 1984, provisions of and directives issued under the Companies
Ordinance, 1984. In case requirements differ, the provision and directives of the Companies
Ordinance, 1984 shall prevail.
21
2.2 Had the treatment of IAS 39 been adopted, relevant impact on financial statements would have
been as follows:
Current year
Rupees
Increase in transacions with owners in equity 28,796,716

Increase in Other Charges & loss for the year 10,311,082
Reduction in carrying value of director loan through amortization by
allowance account 18,485,634
The departure as above said is made because compliance will be misleading for the purpose of
banking requiremnets as reduction by way of amortization will decrease the carrying value of
subordinate loan.
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 Basis of preparation
The financial statements have been prepared on the historical cost basis except for the following:
- Long term finances are measured at amortized cost using applicable interest rate.
- Property, plant equipment are measured at revalued amount less accumulated depreciation
and accumulated impairment loss, if any in period subsequent to the revaluation date.
- Investments held to maturity are measured at amortized cost using effective interest method
less any impairment loss, if any
3.2 Standards, amendments and interpretations which became effective during the year
During the year certain amendments to Standards and new interpretations became effective
however they did not have any material effect on the financial statements of the Company.
This change in accounting policy has no impact on the Statement of Cash Flows and on earnings
per share.
3.3 New / revised accounting standards, amendments to published accounting standards, and
interpretations that are not yet effective
The following standards, amendments and interpretations of approved accounting standards

are only effective for annual periods beginning from the dates specified below. These standards
are either not relevant to the Company's operations or are not expected to have significant impact
on the Company's financial statements, other than increased disclosures in certain cases:
22
Standards or interpretation (effective for annual periods
beginning on or after)
IFRS 10 Consolidated Financial Statements January 01, 2016
IFRS 10 Consolidated Financial Statements, IFRS 12

Disclosure of interests in other Entities IAS 27
Separate Financial Statements - Investment
Entities (Amendment) January 01, 2015
IFRS 10 Consolidated Financial Statements,

IFRS 12 Disclosure of interests in
other Entities IAS 27 Separate Financial
Statements - Investment Entities - applying
the consolidation exception (Amendment) January 01, 2016
IFRS 10 Consolidated Financial Statements,

IAS 28 Investments in Associates and
Joint Ventures-Sale or Contribution of
Assets Between an investor and its
associates or Joint venture (Amendment) January 01, 2016
IFRS 11 Joint Arrangements January 01, 2015
IFRS 11 Joint Arrangements - Accounting for

acquisition of interest in Joint operation
(Amendment) January 01, 2016
IFRS 13 Fair Value Measurement January 01, 2015
IAS 1 Presentation of Financial Statements -

Disclosure Initiative (Amendment) January 01, 2016
IAS 16 Property, Plant and Equipment and IAS 38

Intangible Assets - Clarification of
Acceptable Method of Depreciation and
Amortization (Amendment) January 01, 2016
IAS 16 Property, Plant and Equipment and

IAS 41 Agriculture : Bearer Plants
(Amendment) January 01, 2016
IAS 27 Separate Financial Statements - Equity

Method in Separate Financial Statements January 01, 2016
The Company expect that the adoption of the above standards and interpretation will not have
any material impact on its financial statements in the period of initial application.
Certain annual improvements have also been made to a number of IFRSs.
23
Further, the following new standards have been issued by IASB which are yet to be notified by
the Securities and Exchange Commission of Pakistan (SECP) for the purpose of applicability in
Pakistan.
Standards or interpretation (effective for annual periods

beginning on or after)
IFRS 9 Financial Instruments: Classification and

Measurement January 01, 2018
IFRS 14 Regulatory Deferral Accounts January 01, 2016
IFRS 15 Revenue from Contracts with Customers January 01, 2017
4 SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS
- The preparation of financial statements in conformity with approved accounting standards

requires the use of certain critical accounting estimates. It also requires management to exercise
its judgment, estimates and assumptions in the process of applying company's accounting
policies and the reported amounts of assets, liabilities, income & expenses. Actual results may
differ from these estimates.
- Estimates and underlying assumptions are reviewed on an on going basis. Revisions to

accounting estimates are recognized in the period in which the estimates are revised if the
revision affects only that period, or in the period of revision and future periods if the revision
affects both current and future periods.
- In the process of applying the Company's accounting policies, management has made the
following estimates and judgments, which are significant to the financial statements:
i. Property, plant and equipment note 4.1

ii. Taxation note 4.3
iii. Staff retirement benefits note 4.4
iv. Valuation of stock in trade note 4.10
v. Trade debts note 4.11
4.1 Property, plant and equipment
Operating fixed assets
These are stated at revalued amount less any subsequent accumulated depreciation and subsequent
accumulated impairment losses (if any). All expenditures connected to the specific assets incurred
during installation and construction period are carried under capital work - in - progress. These
are transferred to specified assets as and when assets are available for use.
Subsequent costs are included in the asset's carrying amounts or recognized as a separate assets,
as appropriate, only when it is probable that future benefits associated with the items will flow
to the Company and the cost of the item can be measured reliably.
Assets carrying amount is written down immediately to its recoverable amount if the carrying
amount of an asset is greater than its recoverable amount.
24
Depreciation is charged to profit and loss account using reducing balance method to write off
the cost of an asset over its estimated useful life in accordance with the rates specified in the
note 05 to these financial statements and after taking into account residual value, if any.
Depreciation on additions is charged from the quarter in which the assets become available for
use while on disposals depreciation is charged up to the quarter of deletion.
Repairs and maintenance are charged to profit and loss account as and when incurred. Major
renewals and improvements are capitalized and the assets so replaced, if any, are retired.
Gains/ losses on disposal of property, plant and equipment are charged to the profit and loss
account.
Capital work in progress
These are stated at cost less impairment, if any, and consist of expenditure incurred and advances
made in respect of tangible and intangible assets in the course of their erection, construction and
installation including salaries and wages that are directly attributable to assets under work in
progress. The assets are transferred to relevant fixed assets as and when they are available for
use.
4.2 Provisions
Provisions are recognized when the Company has a legal or constructive obligation as a result
of past events when it is probable that an outflow of resources will be required to settle the
obligation and a reliable estimate of the outflow can be made. Provision are reviewed at each
balance sheet date and adjusted to reflect the current best estimate.
4.3 Taxation
Current
Provision for current taxation is based on higher of tax on the basis of taxable income at the
current tax rates after taking into account tax credit and rebates available, if any or minimum
tax under section 113 of Income Tax Ordinance, 2001. The charge for the current tax also includes
adjustments where necessary, relating to prior years which arise from assessment framed/
finalized during the year.
Deferred
Deferred income tax is recognized using the balance sheet liability method on all temporary
differences arising between the carrying amount of assets and liabilities in the financial statements
and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities
are recognized for all taxable temporary differences. Deferred tax assets are recognized only to
the extent that it is probable that future taxable profits will be available against which deductible
temporary differences can be utilized (since the company has history of business losses the
company accounts for the deferred tax asset to the extent of unabsorbed depreciation). Deferred
tax is calculated at the rates that are expected to apply to the period when the differences reverse
based on the tax rates that have been enacted. Deferred tax is charged or credited to profit and
loss account except in the case of items credited or charged to equity in which case it is included
in equity.
25
4.4 Staff retirement benefits
The company operates following staff benefits plan:
4.4.1 Defined Contribution plan
Provident fund
The Company operates a defined contributory Provident Fund for all its employees eligible
under the scheme. The scheme has been approved under the Income Tax Ordinance, 2001.
Monthly contributions are made both by the Company and by the employee to the fund at a rate
of 8.33% of basic salary. During the year the contribution of Rs. 1,813,013 (2014 : Rs.1,860,915)
have been charged to profit and loss account.
4.4.2 Defined Benefit plan
Gratuity
The Company operates a defined gratuity fund for all of its permanent employees who attain
the minimum qualification period for entitlement to gratuity. Actuarial valuation is conducted
periodically using "Projected Unit Credit Method" and the latest actuarial valuation was carried
out at September 30, 2015 .The detail of valuation is given in note 19.1.
4.5 Impairment of assets
The carrying amount of the assets are reviewed at each balance sheet date to determine whether
there is any indication of impairment of any asset or group of assets. If any such indication exists,
the recoverable amount of such asset is estimated. The recoverable amount is the higher of an
asset's fair value less cost to sell and value in use and impairment loss is recognized whenever,
the carrying amount of the asset or its cash generating unit exceed its recoverable amount.
Impairment losses, if any, are recognized in the profit and loss account.
4.6 Financial Instruments
Financial assets and financial liabilities are recognized when the company becomes a party to
the contractual provisions of the instrument. Financial assets are derecognized when the contractual
right to the cash flow from the financial assets expire or is transferred. Financial liabilities are
derecognized when they are extinguished i.e. when the obligation specified in the contract is
discharged or cancelled or expires. Financial instruments carried on the balance sheet include
investments, trade debts and other receivables, loans and advances, cash and bank balances,
deposits, Long term and short term borrowings, trade and other payables and accrued and other
liabilities. The particular recognition methods adopted are disclosed in the individual policy
statements associated with each item.
4.7 Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are off set and the net amount is reported in the balance
sheet only when the company has a legally enforceable right to offset the recognized amount
and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
26
4.8 Held to maturity investments
Investments with a fixed maturity that the company has positive intent and ability to hold till
maturity are classified as held to maturity investments. Held to maturity investments are initially
recognized at fair value plus transaction cost attributable to acquisition and are subsequently
carried at amortized cost using effective interest rate method, less any impairment loss.
Profit and loss, gains and losses are recognized in the profit & loss account when the investments
are derecognized or impaired, as well as by amortization process.
4.9 Stores, spares and loose tools
These are valued as under:
In hand - At lower of moving average cost or NRV.

In transit - Actual cost incurred up to the balance sheet date
Provisions for obsolete and slow moving stock are duly made as when required. Net realizable
value signifies the estimated selling price in the ordinary course of business less cost necessarily
to be incurred in order to make the sale.
4.10 Stock in trade
The basis of valuation has been specified against each:
Sugar in process - At average cost of raw material consumed

Finished sugar - At lower of cost or net realizable value
Molasses - At net realizable value.
Fertilizers - FIFO
Provisions for obsolete and slow moving stock are made as and when required. Net realizable
value signifies the estimated selling price in the ordinary course of business less cost necessary
to be incurred in order to make the sale.
4.11 Trade debts and other receivables
Trade debts and other receivables are carried at original invoice amount less an estimate made
for doubtful receivables which is determined based on management review of outstanding
amounts and pervious repayment pattern. Balances considered irrecoverable are written off as
and when identified.
4.12 Loans and borrowings
These are initially recognized at cost, being the fair value of the consideration received net of
cost associated with the borrowings. Subsequently these are measured at amortized cost using
the effective interest rate method except as otherwise explained.
27
4.13 Trade and other payables
Trade and other payable are carried at cost, which is fair value of the consideration to be paid
for goods and services.
4.14 Cash and cash equivalent
Cash in hands and at banks, highly liquid short term investments and deposits and short term
running finance, if any are carried at cost. Cash and cash equivalents comprises of cash in hand,
balances with banks, short term investments and short term finance and they form an integral
part of company's cash management and are included as a component of cash equivalents for
the purpose of statement of cash flows.
4.15 Borrowing costs
Borrowing costs are recognized in profit and loss account in the period in which these are
incurred except that borrowing costs that are directly attributable to acquisition, construction
or production of qualifying asset are capitalized during the period of time it is completed and
prepared for its intended use.
4.16 Related party transactions
All transactions with related parties are priced on an arm's length basis. Prices for these transactions
are determined on the basis of comparable uncontrolled price method, which sets the price by
reference to comparable goods sold in an economically comparable market to a buyer unrelated
to the seller.
4.17 Dividend Distribution
Dividend distribution to the company's share holders is recognised as a liability in the period
in which dividend is declared/approved.
4.18 Foreign Currency transactions
Transactions in the foreign currencies are translated into rupees at exchange rate prevailing on
the date of the transaction. All assets and liabilities in foreign currencies are translated to exchange
rate prevailing at the balance sheet date. Exchange gains and losses are taken to profit and loss
account currently.
4.19 Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary
economic environment in which the company operates. The financial statements are presented
in Pakistani Rupees, which is the company's functional currency.
28
4.20 Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
company and the revenue can be measured reliably. Revenue is recognised as follows:
- Sales are recorded on dispatch of goods to customers.
- Commission and handling income is recognized on shipment of products.
- Return/Interest on bank deposits and investments are recognised on accrual basis.
5 PROPERTY, PLANT AND EQUIPMENT
Office
Free hold Factory Non factory Plant and Furniture & Tents and Tools and
equipment Vehicles Total
land building building machinery fixture tarpulins tackles
and others
------------------------------------------------------- Rupees -------------------------------------------------------
As at October 01, 2013
Cost / Revalued amount 255,675,000 273,068,262 232,881,320 1,631,875,422 9,818,259 6,538,614 52,900,127 1,934,244 4,342,876 2,469,034,124
Accumulated depreciation - (84,836,764) (79,799,966) (693,809,230) (6,844,306) (5,084,865) (25,554,114) (1,622,653) (3,169,802) (900,721,700)
Net book value 255,675,000 188,231,498 153,081,354 938,066,192 2,973,953 1,453,749 27,346,013 311,591 1,173,074 1,568,312,424
Year ended September 30, 2014

Opening net book value 255,675,000 188,231,498 153,081,354 938,066,192 2,973,953 1,453,749 27,346,013 311,591 1,173,074 1,568,312,424
Surplus on revaluation 66,475,500 85,386,333 97,792,607 853,806,404 - - - - 1,103,460,844
Additions(including transfers)
during the year - 15,560.64 23,957 - 435,300 1,209,880 11,344,005 386,400 - 13,415,103
Disposals / transfers
Cost - - - - - - 3,458,716 - - 3,458,716
Accumulated depreciation - - - - - - (2,236,321) - - (2,236,321)
Net book value - - - - - - (1,222,395) - - (1,222,395)
Depreciation for the year - (10,304,667) (17,190,711) (56,703,758) (318,737) (221,673) (6,589,640) (198,459) (387,114) (91,914,760)
Closing net book value 322,150,500 263,328,725 233,707,208 1,735,168,838 3,090,516 2,441,956 30,877,983 499,532 785,960 2,592,051,216
As at October 01, 2014

Cost 322,150,500 358,470,155 330,697,884 2,485,681,826 10,253,559 7,748,494 60,785,416 2,320,644 4,342,876 3,582,451,354
Accumulated depreciation - (95,141,431) (96,990,677) (750,512,988) (7,163,043) (5,306,538) (29,907,433) (1,821,112) (3,556,916) (990,400,139)
Net book value 322,150,500 263,328,725 233,707,208 1,735,168,838 3,090,516 2,441,956 30,877,983 499,532 785,960 2,592,051,216
Year ended September 30, 2015

Opening net book value 322,150,500 263,328,725 233,707,208 1,735,168,838 3,090,516 2,441,956 30,877,983 499,532 785,960 2,592,051,216
Additions(including transfers)
during the year - - 38,366 450,000 211,158 12,600 8,670,255 - - 9,382,379
Disposals / transfers
Cost - - - - 101,700 - 9,092,102 - - 9,193,802
Accumulated depreciation - - - - (46,076) - (4,390,466) - - (4,436,542)
Net book value - - - - (55,624) - (4,701,636) - - (4,757,260)
Depreciation for the year - (12,921,616) (22,511,640) (85,161,900) (306,835) (236,112) (6,293,697) (145,545) (228,999) (127,806,344)
Closing net book value 322,150,500 250,407,108 211,233,934 1,650,456,938 2,939,214 2,218,444 28,552,904 353,987 556,960 2,468,869,990
As at September 30, 2015

Cost / Revalued amount 322,150,500 358,470,155 330,736,250 2,486,131,826 10,363,017 7,761,094 60,363,569 2,320,644 4,342,876 3,582,639,931
Accumulated depreciation - (108,063,047) (119,502,317) (835,674,888) (7,423,803) (5,542,650) (31,810,665) (1,966,657) (3,785,916) (1,113,769,941)
Net book value 322,150,500 250,407,108 211,233,934 1,650,456,938 2,939,214 2,218,444 28,552,904 353,987 556,960 2,468,869,990
Annual rate of depreciation 0% 5% 10% 5% 10% 10% 20% 33% 33%
29
2015 2014
............... Rupees ...............
5.1 Depreciation for the year has been allocated as under :-
Cost of sales 98,312,515 67,395,539

Administrative expenses 29,493,829 24,519,221
127,806,344 91,914,760
5.2 Details of disposal of property, plant & equipments are as under
Proceeds / (Gain) /
Accumulated
Cost Book Value Exchange Loss on Mode of
Depreciation Purchaser
Price disposal disposal
- - - - - - - - - - - - - - - - Rupees - - - - - - - - - - - - - -
Vehicle
Daihatsu Cuore ALF-068 292,523.00 210568 81955 229,906 (147,951) Negotiaotion AUN ALI
Daihatsu Cuore AVK-025 806074 388205 417869 665,000 (247,131) Negotiaotion ADNAN NAFEES
Suzuki Mehran AJZ-501 676610 238167 438443 600,000 (161,557) Negotiaotion TEHMINA BASHIR
Toyota Land Cruiser BD-7757 1916895 1641926 274969 1,500,000 (1,225,031) Negotiaotion WASEEM MUNIR
CHATAN
Toyota Hilux.Pick up KT-6969 5400000 1911600 3488400 3,488,400 -
Office Equipment
Laptop 101700 46076 55624 5,000 50,624 Negotiaotion Trade-in with
New Laptop
9,193,802.00 4,436,542.00 4,757,260.00 6,488,306.00 (1,731,046.00)
5.3 Had there been no revaluation , the figures of the revalued assets would have been as follows:
2015 2014
Accumulated Written down Written down
Particulars Cost depreciation value value
............................................. Rupees .............................................
Free hold land 7,601,840 - 7,601,840 7,601,840

Factory building 98,914,946 63,083,272 35,831,674 37,680,675
Non-factory building 20,271,521 18,669,008 1,602,513 1,733,954
Plant & machinery 1,091,833,652 665,154,653 426,678,999 448,240,977
1,218,621,959 746,906,934 471,715,025 495,257,447
6 INVESTMENT- Held to Maturity
This represents the DSCs purchased by the Company on June 11, 2009 and on November 11,
2009 with a maturity of 10 years from the date of purchase of DSC's having effective interest rate
of 12.15%, these have been pledged with National Bank of Pakistan and Habib Bank Limited
respectively (Refer note 18.2 and 18.4).
30
2015 2014
Note ............... Rupees ...............
Cost of Investment in DSC's 70,500,000 70,500,000

Unrealized gain on Investments
Opening balance 55,688,376 42,017,500
Income earned during the year 15,331,888 13,670,876
Closing balance 71,020,264 55,688,376
141,520,264 126,188,376
7 LONG TERM LOANS - Considered good
Vehicle loans to employees 7.1 404,255 415,012

Less: Current portion of long term loans
shown under current assets 85,264 111,708
318,991 303,304
7.1 These are interest free loans given to employees other than directors and executives of the
Company. The loan is recoverable in 60 to 84 installments from the date of disbursement and
is secured by registration of vehicles in the name of the Company.
8 LONG TERM DEPOSITS
Utilities 1,289,082 1,454,166

Rent 135,000 135,000
Others 7,200 7,200
1,431,282 1,596,366
9 STORES, SPARES AND LOOSE TOOLS
In hand
Stores 5,576,742 4,782,605
Spares 22,493,970 23,927,737
Loose tools 1,038,733 976,353
29,109,445 29,686,694
In transit - -
29,109,445 29,686,694
10 STOCK IN TRADE
Finished goods 10.1 459,170 226,492,593

Sugar in process 1,627,979 2,324,662
Molasses 1,970 1,682,030
Fertilizer 6,543,764 -
10.2 8,632,883 230,499,284
10.1 The Stock is valued at Cost, in the previous year stock is valued at NRV and the difference
between NRV and Cost recognized in finished stock and is included in cost of sales amounted
to Rs. Nil (2014 : Rs.20.25 million).
10.2 Stock pledged with bank against Cash Finance facility amounted to Rs. Nil (September 30, 2014:
Rs.248.76 million) at the balance sheet date.
31
2015 2014
Note ............... Rupees ...............
11 TRADE DEBTS - Unsecured
Considered good 11.1 132,548,433 134,318,433
11.1 This include trade debts due from a customer amounting to Rs. 132.538 million against sales of
molasses for the year 2009 to 2010. The terms of sales stipulated payment against delivery based
on which the amount is over due. The management expects to recover the amount in due course
of business based on the historical relationship with customer.
2015 2014
Note ............... Rupees ...............
12 LOANS AND ADVANCES
Current portion of vehicle loans 7 85,264 111,708
Unsecured considered good

Loan to growers 12.1 13,156,732 10,087,819
Advance to suppliers and contractors 13,401,064 7,340,353
Advance against expenses 123,931 316,276
Advance against salaries 3,105,870 2,859,751
Advance against LC 12.2 - 24,999,798
Margin against LG 12.3 16,000,000 19,910,000
45,787,597 65,513,997
45,872,861 65,625,705
Considered Doubtful
Loan to growers 12.1 2,575,000 2,575,000
Advance to supplier, contractors & others 17,472,544 17,472,545
20,047,544 20,047,545
Less: Provision for doubtful advances (20,047,544) (20,047,545)
45,872,861 65,625,705
12.1 This includes loan to growers for cultivation of cane over last several years. The recovery of the
amount was deferred by a company as a measure of incentive. These growers are supplying
cane to the company and considered good as the amount can be adjusted at any stage from
future supplies. The company has however retained a provision of Rs.2.575 million (2014 :
Rs.3.775 million) on prudent basis against these loans.
12.2 This represents margin of Rs. Nil (2014 : Rs. 24.99 million) given to Sindh Bank Limited against
in land LC of Rs. Nil (2014 : Rs 100 million) for purchase of fertilizers from Engro fertilizer Limited.
12.3 The guarantee of Rs. 80 million (2014 : Rs. 79.64 million) is given by Sindh Bank Limited for the
fulfillment of purchase of fertilizer from Pakarab Fertilizer Limited. Margin of Rs. 16 million
(2014 : Rs 19.91 million) given to Sindh bank for the said guarantee. The guarantee is secured
by 20% cash margin as above & making charge over present and future fixed assets of the
company to Rs. 133.334 millions and another charge over present & future current assets of the
company to Rs. 133.334 millions.
32
2015 2014
Note ............... Rupees ...............
13 PREPAYMENTS AND OTHER RECEIVABLES
Prepayments 173,761 -
Sales tax 13.1 6,464,996 6,464,996
Other receivables 13.2 6,370,317 10,547,687
13,009,074 17,012,683
13.1 This represents the amount of sales tax paid by the Company in the year ended 2001 against the
demand raised by the Collectorate of sales tax. The company had adjusted further sales tax paid
earlier by it on its sales against the output tax on its subsequent sales following the judgment
of High Court of Sindh on the issue declaring further tax charge as unlawful. The company's
suit for the recovery of the same is pending in the High Court of Sindh.
13.2 This include a sum of Rs. 1,017,398 paid subsequent to the decision of Supreme Court that held
the levy of sales tax on disposal of fixed assets as lawful with certain exceptions and set aside
the decision of the High Court of Sindh that had earlier declared the said levy as unlawful. The
payment was made so as to avail amnesty offered by the government and for avoiding additional
tax to provide against the risk from an unfavorable judgment.
2015 2014
Note ............... Rupees ...............
14 CASH AND BANK BALANCES
Cash in hand 169,569 142,635
Cash with banks:

in current account 7,174,250 31,448,120
in deposit account 10,000 10,000
7,184,250 31,458,120
7,353,819 31,600,756
15 ISSUED, SUBSCRIBED AND PAID-UP CAPITAL
2015 2014 2015 2014

Number of shares ............... Rupees ...............
16,900,000 16,900,000 Fully paid ordinary shares of Rs.10

each issued for cash 169,000,000 169,000,000
5,408,000 5,408,000 Fully paid ordinary shares of Rs.10

each issued as bonus shares 54,080,000 54,080,000
22,308,000 22,308,000 223,080,000 223,080,000
33
2015 2014
16 SURPLUS ON REVALUATION OF FIXED ASSETS ............... Rupees ...............
Surplus on revaluation:
As at October 01 2,058,850,855 1,014,329,608
Revaluation surplus on land - 66,475,500

Revaluation Surplus on Plant, Machinery and Building - 1,036,985,344
Transferred to retained earnings in respect of incremental
depreciation charged during the year (65,663,771) (58,939,596)
relevant deferred tax (30,900,598) -
(96,564,369) 1,044,521,248
As at September 30 1,962,286,486 2,058,850,855
Related deferred tax:

As at October 01 590,857,748 268,692,047
On revaluation surplus on Plant, Machinery and
Building arise during the year - 342,205,163
Reversal on incremental depreciation charged during the year (30,900,598) (20,039,463)
As at September 30 559,957,150 590,857,748
1,402,329,336 1,467,993,107
16.1 Non factory building, Factory building & plant and machinery of the Company were lastly revalued
on July 18 by an independent professional valuer M/s. Tracom (Private) Limited on the basis of
present value. The revaluation results in surplus of Rs. 1,103.460 million incorporated in the financial
statements for the year ended September 30, 2014.
17 TAXATION
- Current
Income tax assessment of the Company deemed finalized as per tax return filed up to the tax year
2014 which is subject to further assessment. The Company's carry forward loss amounted to Rs.787.75
million (tax year 2014 : Rs.1033.85 million) up to tax year 2015. The deductible temporary differences
are recognized only to the extent that it is probable that future taxable profit will be available to adjust
these differences. No current year tax is computed on the basis of minimum tax u/s 113 of Income
Tax Ordinance 2001 as the company suffered gross loss and have already paid advance tax.
17.1 Deferred Tax arises due to following elements: 2015 2014

............... Rupees ...............
Deferred tax liability arises due to :
Accelerated tax depreciation 653,462,329 704,314,001
Unrealized gain on amortization on loan 33,337,695 33,677,182
686,800,024 737,991,183
Deferred tax asset arises due to :
Loans & advances 6,415,214 6,615,690
Gratuity 3,795,606 3,081,577
Assessed Losses 252,080,306 341,170,463
262,291,126 350,867,729
Deferred tax liability 424,508,898 387,123,454
34
2015 2014
17.2 Reversal of taxable temporary differences includes: ............... Rupees ...............
Due to temporary differences arises during the year (25,850,990) 229,557,437

Due to change of tax rate (11,731,014) 8,344,455
(37,582,004) 237,901,891
17.3 Owing to accounting & tax losses, relationship among tax expenses and accounting profit is not
applicable.
18 LONG TERM FINANCE - Secured

18 (a) Mark-up bearing
PARTICULARS IDBP NBP NBP HBL MCB SEPTEMBER SEPTEMBER

BF-I LCY-I LTF LCY LCY 2015 2014
............................................................................................ Rupees ............................................................................................
Opening balance 117,499,000 63,810,863 83,333,338 111,292,000 31,654,194 407,589,395 422,095,227
Obtained during the year - - - - - - -
Interest expense
(Refer Note 30.1) - 5,749,359 - - - 5,749,359 6,387,340
117,499,000 69,560,222 83,333,338 111,292,000 31,654,194 413,338,754 428,482,567
Repaid during the year - - (33,333,332) - - (33,333,332) (24,999,999)
Effect of remeasurement
(Refer Note 29.1) - 6,016,266 - - - 6,016,266 4,106,827
117,499,000 75,576,488 50,000,006 111,292,000 31,654,194 386,021,688 407,589,395
Overdue installments 64,624,450 - 8,333,333 - 31,654,194 104,611,977 86,987,127

Current portion 11,749,900 - 33,333,332 - - 45,083,232 45,083,232
Closing liability as at
September, 30 2015 41,124,650 75,576,488 8,333,341 111,292,000 - 236,326,479 275,519,036
Significant terms and conditions:

Installments Semi DSCs of Rs. 35m Quaterly DSCs of Semi
annually have been Rs. 35.5m have annually
deposited that been deposited
are going to that are going to
mature after 4 mature after 4
years to settle the years to settle the
above liability above liability
No. of installments 20 - 24 - 9
Date of first installment 01-04-10 - 19-01-2011 - 31-03-01
Rate of mark-up per annum 13% Nil 3 months Kibor one year Kibor 10%
+ 2% with 7 % floor
Sub note number 18.1 18.2 18.3 18.4 18.5
35
18.1 Industrial Development Bank of Pakistan
This represents the liability determined in accordance with rescheduling agreement reached
between the company and I.D.B.P on October 17, 2009. Consequent there to total liability of
Rs.149.162 million at that date stood reduced to Rs.131.347 million (refer note 18a and 18b)
payable on the terms as stated in respective schedule. The difference amounting to Rs. 17.815
million was taken to profit and loss account for the year ended September 30, 2009. The
rescheduling was accepted by the Company under protest and appeal is pending before the
court (refer note 23(v)). The company has not paid the last 11 installments amounting to Rs.
64.624 million as per rescheduling agreement till September 30, 2015 which are overdue.
Security:
The finance is secured by way of :
- Mortgage of all immovable properties of the Company.

- Hypothecation by way of floating charges on the Company's movable and immovable
properties both present and future.
- Pledge of shares
- Personal guarantees of the directors.
- Demand promissory notes.
18.2 NBP (formerly National Development Finance Corporation)
This represents the liability determined in accordance with the rescheduling agreement reached
between National Bank of Pakistan and the company on June 4, 2009 and consequent thereto
an amount of Rs.105.125 million was paid as full and final discharge of the outstanding liability
through DSCs of Rs.35 million pledged by the company with National Bank of Pakistan maturing
after 10 years on June 3, 2019 from the date of purchase of the DSC's having maturity value
equivalent to the amount of liability of Rs.105.125 million that will be realized by encashment
of DSC's on maturity date(s).
Since the rescheduled loan is interest free and payable after 10 years. It has been initially
recognized at cost amounting to Rs.105.125million (refer note 18(a) and subsequently measured
on amortized cost at each balance sheet date with effective interest rate prevailing at year end.
The difference was taken to profit and loss in the year ended September 30, 2009 (refer note 31).
Effective interest rate prevailing as for the year was 9.01% p.a accordingly imputed interest cost
is taken to profit and loss account for the year ended September 30, 2015 (refer note 31).
18.3 This represents loan obtained from NBP for the purpose of repayment of its outstanding
balance of growers liability for the year 2007-2008 and 2008-2009 at markup rate of 3 months
kibor + 2% on quarterly basis. Repayment of principal amount of loan commenced with effect
from 19-01-2010 in 24 quarterly installments of Rs. 8,333,333 each. The loan is secured as under.
36
Security
The above finance is secured by way of:
- First Parri Passu hypothecation charge over Plant, Machinery and Equipments of the company
for an amount of Rs 275,639,140 and Rs 17,983,360.
- First Equitable Mortgage over Land and Building of the company for an amount of
Rs. 275,639,140 and Rs. 17,983,360.
- Personal guarantees of directors of the company.
18.4 Habib Bank Limited
This represents the liability determined in accordance with the rescheduling agreement reached
between Habib Bank Limited and the company on September 15 , 2009 and consequent thereto
an amount of Rs. 111.292 million was paid as full and final discharge of the total outstanding
liability standing at that date of Rs. 336.018 million through DSCs of Rs. 35.5 million pledged
by the company with HBL bank limited maturing after 10 years from the date of purchase of
the DSC's having maturity value equivalent to the amount of liability of Rs. 111.292 million that
will be realized by encashment of DSC's on maturity date(s). The difference amount of Rs. 224
million was taken to profit and loss account for the year ended September 30, 2009.
The loan carries mark up at the rate of one year KIBOR with floor @ 7% per annum on Rs.
111.292 (M) till 2019 on quarterly basis . In case of default by the company in payment of mark
up for two consecutives quarters, HBL shall have right to withdraw the settlement package and
demand the balance decretal amount of Rs 327.49 million.
Security
The above finance is secured by way of :
- First charge on entire project assets at Deh Unar, Kazi Ahmed, Taluka Sakrand, Nawabshah,
ranking parri passu with other secured creditors.
- Hypothecation of stocks.
- Guarantee of the mill duly supported by resolution of Board of Directors.
- DSC's of Rs 35.5 (M).
18.5 MCB Bank Limited
This represents the amount of bank liability as rescheduled by the bank vide its letter
No.SAMG/PO/JPICUS/409, dated July 3, 2004 that are outstanding.
During the year 2009-2010, the Company approached to the bank for a negotiated settlement
of the said liabilities vide its letter number SSML/Acct/60/2010 on dated February 01, 2010
and proposed to settle the present principle liability by submitting DSC's to bank amounting
to Rs. 10 million with 10 years maturity having maturity value of Rs. 31 million and outright
payment of Rs. 5 million towards settlement of total mark up outstanding (refer note 18 b).
Security
Pari passu / second charge with other creditors on all assets of the Company and fresh personal
guarantees of sponsors / directors.
37
18 (b) Mark-up free - frozen mark-up
PARTICULARS IDBP MCB SEPTEMBER SEPTEMBER

BF-I LCY - 1 2015 2014
................................................... Rupees ...................................................
Opening balance 7,799,181 7,030,924 14,830,105 13,547,472
Interest Expense (Refer Note 31.1) 702,706 - 702,706 780,682

8,501,887 7,030,924 15,532,811 14,328,154
Effect of Remeasurement (Refer Note 30.1) 735,328 - 735,328 501,951

Effect in fluctuation in KIBOR 9,237,215 7,030,924 16,268,139 14,830,105
Overdue Installments - 7,030,924 7,030,924 7,030,924

9,237,215 - 9,237,215 7,799,181
Significant terms and conditions:

Installments Quarterly Semi annually
No. of installments 4 12
Date of first installment 01-01-2020 30-09-2004
Sub Note Number 18.6
18.6 This represents the amount of markup of I.D.B.P payable after 01.01.2020 in four quarterly
installments in terms of the rescheduling agreement with I.D.B.P as disclosed in note 18.1. Since
the loan is interest free and payable after 10 years. It was initially recognized at cost i.e. Rs.13.848
million and subsequently measured on amortized cost at each balance sheet date with effective
interest rate prevailing at year end. The difference was taken to profit and loss in the year ended
September 30, 2009. Effective interest rate prevailing as at September 30, 2015 was 9.01% p.a
and such interest expense is taken to profit and loss account (refer note 31).
Note 2015 2014

............... Rupees ...............
19 PROVISION FOR GRATUITY 19.1 11,861,268 9,338,111
19.1 Contributions to the fund are made based on actuarial recommendations. The most recent
actuarial valuation was carried out as at September 30, 2015 using the Projected Unit Credit
Method.
Principal assumptions 2015 2014
Discount rate 9.25% per annum 13.5% per annum
Expected rate of eligible salary increase in

future years - short term 15% per annum 12% per annum
Expected rate of eligible salary increase in

future years - Long term 8% per annum 12% per annum
38
Note 2015 2014
............... Rupees ...............
Changes in defined benefit liability are as follows:
Opening defined benefit obligation 9,338,111 6,519,556
Current service cost 825,331 1,024,157
Interest cost 1,249,449 686,756
Benefit paid directly by the company (165,872) (1,593,183)
Actuarial losses 614,249 2,700,825
Closing defined benefit obligation 11,861,268 9,338,111
Liability for gratuity arose in the following manner:

Opening net liability 9,338,111 6,519,556
Expense for the year 2,074,780 1,710,913
Benefit paid (165,872) (1,593,183)
Other Comprehensive income 614,249 2,700,825.00
Closing net liability 11,861,268 9,338,111
Charge to profit and loss account

Current service cost 825,331 1,024,157
Interest cost 1,249,449 686,756
Total amount chargeable to P&L account 2,074,780 1,710,913
20 TRADE AND OTHER PAYABLES
Trade payables
Quality premium 20.1 56,460,953 56,460,953
Sugar cane and others 944,635,652 752,238,816
1,001,096,605 808,699,768
Accrued expenses 31,100,735 27,446,950
Other payables
Advance from customers 36,997,274 182,387,789
Sales Tax and Excise duty payable 20.2 4,003,445 21,963,274
Unclaimed dividend 377,172 437,154
WWF - -
Sales tax penalty payable - 329,801
Others 12,191,886 19,025,534
53,569,777 224,143,551
1,085,767,117 1,060,290,269
20.1 This represents the outstanding amount of quality premium for the years 2003 and 2004 withheld
since the issue is pending for disposal with the Supreme Court of Pakistan. The Appellants,
including the company were granted leave to defend by the Supreme Court of Pakistan in the
year 2004 with the direction that no coercive action for recovery of quality premium from the
mills shall be taken till the disposal of the Appeal which continues to be in force. The provincial
government in its yearly notification since year 2004 onwards for minimum cane price fixation
refers to the direction of the Supreme Court as reason for suspending coercive recovery of the
quality premium from the mill until uniform formula subsequently is developed by the Ministry
of Food and Agriculture.
39
20.2 Sales tax liabilities are outstanding due to shortage of funds.
Note 2015 2014

21 SHORT TERM BORROWING - Secured ............... Rupees ...............
National Bank of Pakistan

Running finance 21.1 124,996,633 124,898,749
Cash finance 21.2 - 199,008,150
124,996,633 323,906,899
21.1 Running Finance Facility
Purpose:
To finance the working capital requirements of the Company and for procurement of
sugarcane.
Mark up rate:
3 months KIBOR + 2.5% p.a.
Security:
1. First pari passu hypothecation charge over plant, machinery & equipment of the
company with 25% margin.
2. First equitable mortgage over land and building of the Company of PKR 167 million
with 25% margin.
3. Personal Guarantees of the Directors of the Company.
21.2 Cash Finance Facility
Purpose:
To finance the working capital requirements of the Company and for procurement of
sugarcane.
Mark up rate:
3 months KIBOR + 2.5% p.a.
Security:
1. Pledge of refined sugar stock with 25% margin.
2. Personal guarantees of the Directors of the Company.
2015 2014
22 ACCRUED MARK UP ............... Rupees ...............
National Bank of Pakistan 1,572,798 4,552,930

MCB Bank Limited 17,228,787 17,228,787
Loan from others 5,518,824 5,518,824
National Bank of Pakistan - Running and Cash Finance 2,901,703 12,467,189
Summit Bank Limited - 725,294
Habib Bank Limited 2,070,214 -
29,292,326 40,493,024
40
23 CONTINGENCIES AND COMMITMENTS
23.1.1 Contingencies
i. Following Constitutional Petitions are pending for which outcome could not be determined:
a) Constitutional Petition No. 230 of 2013

b) Constitutional Petition No. 6416 of 2014
c) Constitutional Petition No. 554 of 2015
d) Constitutional Petition No. 5482 of 2014
ii. Appeal is pending in appellate tribunal (IR) regarding levy of FED of Rs. 18.66 million for
which favourable outcome is expected.
iii. Appeal is pending in appellate tribunal (IR) regarding alleged demand with penalty for
which favourable outcome is expected.
iv. Rent case" is pending for which outcome could not be determined.
v. In respect of restructured loan amounting to Rs.130 million of Industrial Development Bank
(refer in note 18a & 18b) the company filed a suit in the High Court of Sindh Karachi seeking
settlement of the liability at an amount of Rs. 101.61 million on the ground that the restructured
loan includes markup on the capitalized markup amounting to Rs. 29 million which is
wrongly charged though not permissible under the law. The Honorable Court has stayed
recovery proceedings till further order. Accordingly the Company has not charged markup
for the year amounting to Rs. 8.02 million (2014: 9.54 million) and cumulatively mark-up
from 01 April, 2010 to 30 Sep, 2015 amounting to Rs. 63.068 million on the outstanding
balance as per rescheduling package of IDBP for the reason that it expects that an amount
of Rs. 29 million would be reversible as a result of the final outcome court proceedings on
merit of case and this is hence not going to have any effect on these financial statements.
vi. Appeal against demand of Rs. 571,997 is filed with CIT . Appeal for which hearing is
pending and outcome can not be decided at this stage.
23.1.2 Guarantee given Rs. 80 million .(Refer note 12.3)
23.2 Commitments
During the year company has outstanding uplifted delivery orders of quantity Nil M.Ton
(2014 : 3478.4 M.ton) of Rs. Nil million (2014 : Rs.161.037 million).
2015 2014
24 SALES - Net ............... Rupees ...............
Sugar 2,464,086,760 3,438,743,039

Less : Brokerage and commission - (483,160)
2,464,086,760 3,438,259,879
Molasses 129,280,000 301,242,389
Fertilizer 240,094,786 -
Bagasse - 2,200,000
2,833,461,546 3,741,702,268
Less: Export Expenses - -
Less: Sales tax (219,723,361) (255,041,361)
2,613,738,185 3,486,660,907
41
Note 2015 2014
25 COST OF GOODS SOLD ............... Rupees ...............
Sugarcane consumed 25.1 1,880,805,228 3,324,937,029

Manufacturing expenses 25.2 293,554,398 307,629,171
Fertilizer Cost 220,268,489 -
2,394,628,115 3,632,566,200
Sugar in process
Opening 2,324,662 5,385,343
Closing (1,627,979) (2,324,662)
696,683 3,060,681
2,395,324,798 3,635,626,881
Finished goods
Opening 226,492,593 282,911,090
Closing (459,170) (226,492,593)
226,033,423 56,418,497
2,621,358,221 3,692,045,379
Molasses
Opening 1,682,030 -
Closing (1,970) (1,682,030)
1,680,060 (1,682,030)
2,623,038,281 3,690,363,349
Fertilizer
Opening - -
Closing (6,543,764) -
(6,543,764) -
2,616,494,517 3,690,363,349
25.1 This includes quality premium and subsidies for the year amounting to Rs. Nil million (2014:
Rs. Nil million) and Rs. 1.023 million (2014: Rs. 3.339 million) respectively.
25.2 Manufacturing expenses
Stores and spares consumed 40,860,437 64,551,080

Fuel and power 19,694,057 22,261,661
Salaries, wages including bonus
and staff amenities 25.3 80,198,204 77,048,392
Repairs and maintenance 42,050,164 60,389,662
Vehicle maintenance 1,099,925 1,359,914
Insurance 6,017,266 6,663,881
Depreciation 5.1 98,312,515 67,395,539
Bagasse, mud, Ash handling & Others 5,321,830 7,959,043
293,554,398 307,629,171
25.3 This includes Rs. 2,599,311 (2014: Rs. 1,703,958) in respect of contribution to provident fund
& gratuity.
42
Note 2015 2014
............... Rupees ...............
26 ADMINISTRATIVE EXPENSES
Salaries, including bonus and staff amenities 26.1 77,096,425 73,306,094

Rent, rates and taxes 1,040,762 1,053,620
Insurance 3,324,790 2,945,298
Water, gas and electricity 4,040,359 4,112,984
Printing and stationery 1,470,079 1,482,869
Postage, telephone, telegrams and telex 2,666,635 2,757,865
Vehicle maintenance 6,434,026 8,298,859
Repairs and maintenance 624,329 1,815,466
Traveling and conveyance 704,998 1,531,534
Newspaper, books and periodicals 87,620 75,104
Fee and subscription 448,375 1,086,071
Legal and professional 9,212,492 7,926,407
Auditors' remuneration 26.2 990,150 832,225
Entertainment 2,140,770 2,905,024
Computer maintenance 1,590,519 556,773
Advertisement 447,560 339,670
Charity and donation 26.3 152,450 191,100
Depreciation 5.1 29,493,829 24,519,221
Provision for bad debts - 1,120,869
Sales tax penalty - 329,801
Others 1,886,464 1,959,587
143,852,632 139,146,441
26.1 This includes Rs. 1,288,482 (2014: Rs. 939,280) in respect of contribution provident fund and
gratuity.
2015 2014
26.2 Auditors' remuneration comprises of : ............... Rupees ...............
Audit fees 602,500 550,000
Half yearly review 202,000 200,000
Certifications 140,000 50,000
Out of pocket expenses 45,650 32,225
990,150 832,225
26.3 The directors or his spouse had no interest in the donees fund.
27 DISTRIBUTION COST
Loading and stacking 4,173,661 5,237,880

Sampling charges 109,650 155,400
4,283,311 5,393,280
28 OTHER CHARGES
Loan processing fees 109,290 259,976

Mucaddam charges 263,000 695,113
372,290 955,089
43
Note 2015 2014
............... Rupees ...............
29 OTHER INCOME
Profit on PLS account - 411

Exchange Gain in Foreign Currency - -
Profit/(loss) on sale of fixed asset 1,731,046 1,196,485
Other 45,140 47,650
1,776,186 1,244,546
30 UN-REALIZED GAIN/(LOSS) ON AMORTIZATION

OF LOANS / INVESTMENTS
National Bank of Pakistan 18(a) & 30.1 (6,016,266) (4,106,827)

IDBP 18(b) & 30.1 (735,328) (501,951)
Income on amortization of Investment in DSC's 30.2 15,331,888 13,670,876
8,580,294 9,062,099
30.1 This represents effects of increase in KIBOR over the year and recognizing liability at fair value.
30.2 This represents amortization of investment in DSC's amounting to Rs 70.5 million at the rate
of 12.15%.
31 FINANCIAL COST 2015 2014

............... Rupees ...............
Mark-up on loans 42,330,041 74,603,485
Bank charges 888,550 3,665,842
Interest expense 31.1 6,452,065 7,168,023
49,670,656 85,437,350
31.1 This represents interest expense in respect of amortization of loan and frozen mark up liability
of NBP and I.D.B.P (refer 18(a) and 18(b)) using effective interest rate @ 9.01% (2014 : `10.5%
p.a).
32 REMUNERATION OF EXECUTIVES
(Amount in Rupees)
2 0 15 2 0 14
PARTICULARS Chief Executive Directors Executives Total Chief Executive Directors Executives Total
Remuneration 8,236,131 14,742,687 2,326,872 25,305,690 7,324,005 13,109,979 1,448,616 21,882,600
Company's contribution
to provident fund - - 129,742 129,742 - - 120,713 120,713
Perquisites, benefits - - - - - -
and utilities
Total 8,236,131 14,742,687 2,456,614 25,435,432 7,324,005 13,109,979 1,569,329 22,003,313
Number of Persons 1 6 2 9 1 6 2 9
44
2015 2014
............... Rupees ...............
33 PLANT CAPACITY AND PRODUCTION
Installed Production Capacity-Metric ton 86,400 86,400
Duration of Season-Days 98 142
Actual Production-Metric ton 45,100 70,865
Actual Crushing-Days 86 138
% of capacity attained 52% 82%
34 SEGMENT REPORTING
2015
Sugar Fertilizer Total 2014

Note ............................................. Rupees .............................................
Segment assets and liabilities
Segment assets 2,865,634,426 22,543,764 2,888,178,190 3,261,843,410

Segment liabilities 2,064,560,368 79,922,203 2,144,482,571 2,289,569,357
Segment profit and loss account
Sales-gross 24 2,593,366,760 240,094,786 2,833,461,546 3,741,702,268

Less: Sales Tax (182,524,946) (37,198,415) (219,723,361) (255,041,361)
Sales-net 2,410,841,814 202,896,371 2,613,738,185 3,486,660,907
Cost of sales 25 (2,389,682,264) (226,812,253) (2,616,494,517) (3,690,363,349)
Gross profit 21,159,550 (23,915,882) (2,756,332) (203,702,442)
Distribution cost 27 (4,283,311) - (4,283,311) (5,393,280)
Administrative expenses 26 (143,852,632) - (143,852,632) (139,146,441)
Segment wise operating profits (126,976,393) (23,915,882) (150,892,275) (348,242,163)
Other charges 28 (372,290) - (372,290) (955,089)
Finance cost 31 (48,908,371) (762,285) (49,670,656) (85,437,350)
Other income 29 1,776,186 - 1,776,186 1,244,546
Unrealised gain on loan
amortisation 30 8,580,294 - 8,580,294 9,062,099
Profit before taxation (165,900,574) (24,678,167) (190,578,741) (424,327,957)
Taxation 17.2 (37,582,004) - (37,582,004) 237,901,891
Profit after taxation (203,482,578) (24,678,167) (228,160,745) (186,426,066)
Depreciation
Cost of sales 25 98,312,515 - 98,312,515 67,395,539
Administrative expenses 26 29,493,829 - 29,493,829 24,519,221
127,806,344 - 127,806,344 91,914,760
45
34.1 Revenue reported in note number 24 has been generated from external customers.
34.2 The accounting policies of the reportable segments are the same as those described in note
number 3. Financial charges on long term, cash and running financing is allocated to sugar
where as commission on letter of guarantee and letter of credit is allocated to fertilizer. This
is the measure adopted management for the purposes of resource allocation and assessment
of segment performance.
35 LOSS PER SHARE - Basic / Diluted

2015 2014
............... Rupees ...............

Weighted average number of ordinary shares 22,308,000 22,308,000
Loss per share (10.23) (8.36)
36 CASH AND CASH EQUIVALENTS
Short term borrowing - Secured (124,996,633) (323,906,899)

Cash and bank balances 7,353,819 31,600,756
(117,642,814) (292,306,143)
37 FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
Interest/mark-up rate risk arises from the possibility that changes in interest/mark-up rates
will affect the value of financial instruments. In respect of income earning financial assets and
interest/mark-up bearing financial liabilities, the following table indicate their effective
interest/mark-up rates at the balance sheet date and the periods in which they will re-price
or mature:
2015 (Amount in Rupees)
Interest bearing Non-interest bearing
Maturity upto Maturity after Maturity upto Maturity after Total
one year one year one year one year
FINANCIAL ASSETS
Long term Investment - 70,500,000 - - 70,500,000
Long term loans - - 318,991 - 318,991
Long term deposits - - - 1,431,282 1,431,282
Trade debts - - 132,548,433 - 132,548,433
Cash and bank balances 10,000 - 7,343,819 - 7,353,819
10,000 70,500,000 140,211,243 1,431,282 212,152,525
FINANCIAL LIABILITIES
At Amortized Cost
Long term loans 149,695,209 236,326,479 7,030,924 9,237,215 402,289,827
Short term Borrowings 124,996,633 - - - 124,996,633
Trade and other payables - - 1,044,766,398 - 1,044,766,398
Mark up accured on loans - - 29,292,326 - 29,292,326
274,691,842 236,326,479 1,081,089,648 9,237,215 1,601,345,184
46
2 0 14 (Amount in Rupees)
Interest bearing Non-interest bearing
Maturity upto Maturity after Maturity upto Maturity after Total
one year one year one year one year
FINANCIAL ASSETS
Long term Investment - 70,500,000 - - 70,500,000

Long term loans - - 303,304 - 303,304
Long term deposits - 1,596,366 - - 1,596,366
Trade debts - - 134,318,433 - 134,318,433
Cash and bank balances 10,000 - 31,590,756 - 31,600,756
10,000 72,096,366 166,212,493 - 238,318,858
FINANCIAL LIABILITIES
At Amortized Cost
Long term loans 132,070,359 275,519,036 7,030,924 7,799,181 422,419,500
Short Term Borrowings 323,906,899 - - - 323,906,899
Trade and other payables - - 485,015,978 - 485,015,978
Mark up accured on loans - - 40,493,024 - 40,493,024
455,977,258 275,519,036 532,539,926 7,799,181 1,271,835,401
38 FINANCIAL RISK MANAGEMENT OBJECTIVES
The Company finances its operations through equity, borrowings and management of working
capital with a view to maintain a reasonable mix between the various sources of finance to
minimize risk. Taken as a whole, risk arising from the Company's financial instruments is
limited as there is no significant exposure to market risk in respect of such instruments.
The board of directors has overall responsibility for the establishment and the oversight of the
company's risk management framework. All treasury related transactions are carried out within
the parameters of these policies.
38.1 Credit risk and concentration of credit risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation
and cause the other party to incur a financial loss. Concentration of credit risk arises when a
number of counterparties are engaged in similar business. The financial assets that are exposed
to credit risk are as follows:
2015 2014
............... Rupees ...............
Long term loans 318,991 303,304

Trade debts - unsecured 132,548,433 134,318,433
Trade deposits and short term prepayments - -
Bank balances 7,184,250 31,458,120
140,051,674 166,079,857
47
37.1.1 Impairment losses
The aging of financial assets at the reporting date was:
2015 2014
Gross value Impairment Gross value Impairment
-----------------------------------------Rupees-----------------------------------------
Not past due - - - -
Past due < 1 year - - - -
Past due 1 year to 2 years - - - -
More than 2 years 132,538,832 - 133,808,833 -
More than 3 years 9,600 - 509,600 -
Total 132,548,432 - 134,318,433 -
The company believes that no impairment allowance is necessary in respect of financial assets
past due other than amount provided. Financial assets are essentially due from credit worthy
parties. The company is actively pursuing for recovery of debts and the company does not
expect these parties to fail to meet their obligations.
38.2 Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting its financial
obligations as they fall due. Liquidity risk arises because of the possibility that the Company
could be required to pay its liabilities earlier than expected or difficulty in raising funds to
meet commitments associated with financial liabilities as they fall due. The Companys approach
to manage liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Company's reputation. The following are the
contractual maturities of financial liabilities (including interest payments).
The table below summarizes the maturity profile of the Company's financial liabilities as at
Sept 30, 2015 based on contractual undiscounted payment dates and present market interest
rate:
2015
Carrying Contractual Twelve Two to

amount cash flows months or less five years
-----------------------------------------Rupees-----------------------------------------
Non-Derivative
Financial liabilities
Long term financing 402,289,827 402,289,827 156,726,133 245,563,694

Trade and other payables 1,081,763,672 1,081,763,672 1,081,763,672 -
Short Term Borrowings 124,996,633 124,996,633 124,996,633 -
Accrued mark-up 29,292,326 29,292,326 29,292,326 -
1,638,342,458 1,638,342,458 1,392,778,764 245,563,694
48
2014
Carrying Contractual Twelve Two to

amount cash flows months or less five years
-----------------------------------------Rupees-----------------------------------------
Non-Derivative
Financial liabilities
Long term financing 422,419,500 422,419,500 139,101,283 283,318,217

Trade and other payables 1,038,326,995 1,038,326,995 1,038,326,995 -
Short Term Borrowings 323,906,899 323,906,899 323,906,899 -
Accrued mark-up 40,493,024 40,493,024 40,493,024 -
1,825,646,418 1,825,646,418 1,542,328,201 283,318,217
38.3 Market risk
Market risk means that the future cash flows of a financial instrument will fluctuate because
of changes in market prices such as foreign exchange rates and interest rates. The objective
is to manage and control market risk exposures within acceptable parameters, while optimizing
the return. The Company's market risk may comprises of two types of risk: foreign exchange
or currency risk and interest/mark up rate risk. The market risks associated with the
Company's business activities are discussed as under:
38.3.1 Foreign exchange risk management
Foreign currency risk arises mainly where balances exist due to the transactions with foreign
undertakings. The Company is was not exposed to foreign exchange risk as at September
30, 2015 as no balances existed at the said date due to transactions with foreign undertakings.
38.3.2 Mark-up rate risk
Markup rate risk is the risk that the value of the financial instrument will fluctuate due to
changes in the mark-up rates. Sensitivity to mark-up rate risk arises from mismatches of
financial assets and liabilities that mature or reprice in a given period. The Company manages
these mismatches through risk management strategies where significant changes in gap
position can be adjusted. The Company's exposure to the risk of changes in market interest
rates relates primarily to the long-term loans and short-term finances with floating interest
rates.
The mark-up rate on the financial assets and liabilities are disclosed in their respective notes
to the financial statements.
38.3.3 Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest
rates, with all other variables held constant, of the Company's profit/ (loss) before tax
(through impact on floating rate borrowing). There is only immaterial impact on Company's
equity. The analysis excludes the impact of movement in market variables on the carrying
values of employees retirement obligation, provision and on non-financial assets and liabilities
of the Company. Further, interest rate sensitivity does not have an asymmetric impact on
the Company's result.
49
2015 2014
............... Rupees ...............
Increase / decrease in basis points 100 100
Effect on profit before tax 5,110,183 6,758,264
38.4 Equity price risk
Equity price risk is the risk arising from uncertainties about future values of investments
securities. As at balance sheet date, the Company is not exposed to equity price risk.
38.5 Fair value of financial instruments
Fair value is the amount for which an asset could be exchanged, or a liability settled, between
knowledgeable, willing parties in an arm's length transaction. Consequently, differences can
arise between carrying values and the fair value estimates.
Underlying the definition of fair value is the presumption that the company is a going concern
without any intention or requirement to curtail materially the scale of its operations or to
undertake a transaction on adverse terms.
Fair value of all financial assets and financial liabilities are estimated to approximate their
respective carrying amount.
39 CAPITAL RISK MANAGEMENT
The companys objectives when managing capital are to safeguard the companys ability to
continue as a going concern in order to provide returns for shareholders and benefits for other
stakeholders and to maintain an optimal capital structure.
In order to maintain or adjust the capital structure, the company may adjust the amount of
dividends paid to shareholders, return capital to shareholders or issue new shares or sell assets
to reduce debt.
Consistent with others in the industry, the company manages its capital risk by monitoring its
debt levels and liquid assets and keeping in view future investment requirements and expectation
of the shareholders. Debt is calculated as total borrowings.
There were no changes to the Companys approach to capital management during the year
and the Company is not subject to externally imposed capital requirements.
The Company monitors capital using a debt equity ratio, which is net debt divided by total
capital plus net debt. Equity comprises of share capital, capital and revenue reserves. During
the year, the Company's strategy was to maintain leveraged gearing. The gearing ratios as at
September 30, 2015 and 2014 were as follows:
50
2015 2014
............... Rupees ...............
Long term finance 402,289,827 422,419,500

Short term Borrowings 124,996,633 323,906,899
Total debt 527,286,460 746,326,399
Less: Cash and bank balances 7,353,819 31,600,756
Net debt 519,932,641 714,725,644
Total Equity (658,633,717) (495,719,054)
Total Capital (138,701,076) 219,006,590
Gearing Ratio (375%) 326%
The company finances its operations through equity, borrowings and management of working
capital with a view to maintain an appropriate mix between various sources of finance to
minimize risk. The management of the Company continuing with operational and infrastructure
rehabilitation program with the objective of converting the Company into profitable entity
and has taken financial measures to support such rehabilitation program. In calculating
above gearing ratio surplus on revaluation on fixed assets was not taken into account, had
such reserves was considered gearing ratio would have improved to 41% (2014: 42%).
40 TRANSACTIONS WITH RELATED PARTIES
The related parties comprise directors, key management personnel and post employment
benefit plans. The Company in the normal course of business carries out transactions with
related parties. Amounts due from and to related parties are shown under receivables and
payables, remuneration of directors and key management personnel is disclosed in relevant
note. During the year there is no significant transactions with related parties except contribution
paid to the post employment benefits as disclosed in respective note.
2015 2014
41 NUMBER OF EMPLOYEES
Total employees during the year 192 193
Average number of employees during the year 191 192
42 DISCLOSURES RELATING TO PROVIDENT FUND
Size of the fund 72,075,772 60,890,331

Cost of investment made 44,750,000 42,000,000
Percentage of investments made 95.6% 97.2%
Fair value of investments 68,892,637 59,185,114
Breakup of Investment - At Fair Value

- Shares in listed companies 6,250,000 4,500,000
- Investment in deposit certificates 38,500,000 37,500,000
44,750,000 42,000,000
51
2015 2014
Percentage
Shares in listed companies 14.0% 10.7%
Investment in deposit certificates 86.0% 89.3%
100.0% 100.0%
These figures are based on the unaudited financial statements of the provident fund as at
June 30, 2015.
43 DATE OF AUTHORIZATION
The financial statements were authorized for issue on January 02, 2016 by the board of
directors of the Company.
44 GENERAL
- Figures have been rounded off to the nearest rupee.
- Figures have been rearrange and reclassified where necessary.

52
SIX YEARS REVIEW AT A GLANCE
FINANCIAL RESULTS 2015 2014 2013 2012 2011 2010

(Rs. in 000)
Sales 2,613,738 3,486,661 2,560,803 2,463,907 3,125,044 3,193,219
Gross (loss) / profit (2,756) (203,702) (133,830) 56,038 41,208 217,471
Operating (loss) / profit (150,892) (348,242) (263,950) (59,064) (61,978) 126,643
Profit/ (loss) before taxation (190,579) (424,328) (330,535) (151,870) (133,211) 47,753
Profit/(loss) after taxation (228,161) (186,426) (332,289) (134,858) (148,545) 46,405
Accumulated loss for the year (881,714) (718,799) (569,464) (291,516) (192,351) (76,324)
OPERATING RESULTS 2015 2014 2013 2012 2011 2010

(Rs. in 000)
Sugarcane crushed (tonnes) 441,621 770516 516,227 559,968 615,017 543,353
Sugar recovery (%) 10.21 9.188 9.89 9.75 8.66 9.155
Sugar produced (tonnes) 45,100 70864 51,050 54,575 53,250 49,702
Molasses recovery (%) 4.236 4.330 4.322 4.251 4.193 4.563
Molasses produced (tonnes) 18,700 33,397 22,306 23,800 25,766 23,625
Operating period ( days ) 98 142 109 108 149 107
ASSETS EMPLOYEED 2015 2014 2013 2012 2011 2010

(Rs. in 000)
Fixed capital expenditure 2,468,870 2,592,051 1,568,312 1,641,428 1,177,285 1,225,657
Long term loans and deposits 1,750 1,900 1,830 1,665 783 812
Investments 141,520 126,188 112,517 100,328 89,458 79,766
Current assets 276,038 541,704 553,704 707,817 674,273 484,621
Total assets employed 2,888,178 3,261,843 2,236,364 2,451,238 1,941,800 1,790,855
FINANCED BY 2015 2014 2013 2012 2011 2010

(Rs. in 000)
Shareholders' equity (658,634) (495,719) (346,384) (68,436) 30,729 146,756
Revaluation on fixed assets 1,402,329 1,467,993 746,140 781,462 411,440 432,577
Subordinate loan from directors 65,767 45,998 - - -
Long term liabilities 245,564 283,318 316,625 353,255 383,291 422,473
Deferred liabilities 436,370 396,462 289,729 308,302 220,848 248,930
Current liabilities 1,396,782 1,563,791 1,230,254 1,076,656 895,491 540,120
Total funds invested 2,888,178 3,261,843 2,236,364 2,451,238 1,941,799 1,790,856
Break-up value per share ( Rupees ) (29.52) (22.22) (15.53) (3.07) 1.38 6.58
Earning per share ( Rupees ) (10.23) (8.36) (14.90) (6.05) (6.66) 2.08
53
FORM OF PROXY
The Company Secretary

SAKRAND SUGAR MILLS LIMITED
41-K, Block 6, P.E.C.H.S.
Karachi-75000
I/We____________________________________________________________________________________
of_______________________________________________________________________________________
being a Member of Sakrand Sugar Mills Limited and holder of _____________________________________
Ordinary Shares, as per Register Folio No. _______________________________________________________
hereby appoint _____________________________________________________________________________
who is also a Member of the Company of as my/our Proxy to vote for me/us and on my/our behalf
at the 27th Annual General Meeting of the Company to be held on January 28, 2016 and at any
adjournment thereof.
Signed _______________________________________________________________________ day of 2016.
RUPEES FIVE
REVENUE STAMP
(Signature should agree with

the specimen signature
registered with the Company)
NOTE :
1. This form of proxy duly completed and signed, must be depostied at Company's Registered
Office not later than 48 hours before the meeting.
2. This form should be signed by the Member or by his/her attorney duly authorized in writing.
If the member is a corporation, its common seal should be affixed to instrument.
3. If a proxy is granted by a member who has deposited his/her shares in Central Depository
Company of Pakistan Limited, the proxy must be accompanied with participant's ID number
and CDC account/sub-account number alongwith attested photocopies of Computerized National
Identity Card (CNIC) or the passport of the beneficial owner. Representatives of corporate
members should bring the usual documents required for such purpose.

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SAKRAND SUGAR MILLS LIMITED

TWENTY SEVENTH ANNUAL REPORT

CONTENTS PAGE NO.

Notice of Annual General Meeting 3

Vision and Mission Statement 4

Statement of Compliance with the Code of

Review Report to the Members on Statement of

Pattern of Shareholding as per requirements of

Profit and Loss Account 17

Other Comprehensive Income 18

Cash Flow Statement 19

Statement of Changes in Equity 20

Notes to the Financial Statements 21

Six Years Review at a Glance 53

AUDIT COMMITTEE Mr. Abdul Naeem Quraishi Chairman

HR & R COMMITTEE Syed Abid Hussain Chairman

CHIEF FINANCIAL OFFICER Mr. Farhaj Badar

COMPANY SECRETARY Mr. Mustafa Kanani

BANKERS Allied Bank Limited

AUDITORS M/s. Haroon Zakaria & Co.

LEGAL ADVISOR Abdul Naeem Quraishi, Adv.

REGISTRAR M/s Evolution Factor (Private) Limited

REGISTERED OFFICE 41-K, Block 6, P.E.C.H.S., Karachi.

FACTORY Deh Tharo Unar, Taluka Sakrand,

3. To appoint Auditors and to fix their remuneration.

1. Mr. Dinshaw H. Anklesaria 2. Mr. JamilAkberi

5. To consider any other business with the permission of the Chair.

By order of the Board

5. Members are requested to notify any change in their address immediately.

To make a product of International Standard acceptable as a brand in

 Sustained contribution to the National Economy by producing cost

 To ensure professionalism and healthy working environment.

 To create a reliable product through adoption of latest technology/

 To promote research & development and provide technical know

The comparative financial results are as follows:

Sales 2,613,738 3,486,661 (872,923) (25.04)

2015 2014 Increase/ % age

Sugarcane crushed MT 441,621 770,516 (328,895) (42.69)

Financial liability of HBL

Liability of MCB Bank Ltd.

Recovery of trade debts

LABOUR MANAGEMENT RELATIONS

STATEMENT ON CORPORATE AND FINANCIAL REPORTING FRAMEWORK

Name of Director Number of meetings attended

Mr. Dinshaw H. Anklesaria 6

PATTERN OF SHARE HOLDING

Thank you all,

1. The Company encourages representation of independent non-executive directors and directors

Executive Directors Mr. Dinshaw H. Anklesaria

Non-Executive Directors Mr. Jamil Akberi

On behalf of Board of Directors

Haroon Zakaria & Company Place: Karachi

No. of Total Shares Percentage

Number of Category wise Category wise Percentage

JOINT STOCK COMPANIES 9 610,508 2.74

INVESTMENT COMPANIES 5 176,632 0.79

DIRECTORS, CHIEF EXECUTIVE AND 8 9,252,383 41.48

Mr. Dinshaw Hoshang Anklesaria 5,576,439

Six Years Review at a Glance 53

Sustained contribution to the National Economy by producing cost

To ensure professionalism and healthy working environment.

To create a reliable product through adoption of latest technology/

To promote research & development and provide technical know