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THE PREMIER SUGAR MILLS & DISTILLERY CO., LIMITED.
MARDAN
MARDAN
MARCH 31, 2020

CONDENSED INTERIM
FINANCIAL INFORMATION
FOR THE HALF YEAR ENDED
& DISTILLERY CO. LIMITED,
THE PREMIER SUGAR MILLS
THE PREMIER SUGAR MILLS & DISTILLERY COMPANY LIMITED
THE PREMIER SUGAR MILLS & DISTILLERY COMPANY LIMITED
COMPANY INFORMATION
DIRECTORS REVIEW REPORT
The Directors are pleased to present the un-audited condensed interim financial information of the
Board of Directors Company for the six months' period that ended on March 31, 2020. This condensed interim financial
information is presented to the shareholders of the Company in compliance with the International Accounting
Mr. Aziz Sarfaraz Khan Chairman Standard No. 34 “Interim Financial Reporting”, the Code of Corporate Governance, under Section 237 of the
Mr. Abbas Sarfaraz Khan Chief Executive Companies Act, 2017 and the Listed Companies (Code of Corporate Governance) Regulations, 2019. The
Begum Laila Sarfaraz Director enclosed financial information has been reviewed by the external auditors, as required by the Code of
Corporate Governance.
Ms. Zarmine Sarfaraz Director
Ms. Najda Sarafaraz Director OPERATIONAL PERFORMANCE
The sugarcane crushing season 2019-20 commenced on November 09, 2019 and continued till
Mr. Iskander M. Khan Director February 11, 2020. The mills crushed 36,528 tons (2019: 154,414 tons) of sugarcane to produce 3,149 tons
Mr. Abdul Qadar Khattak Director (2019: 16,768 tons) of sugar having an average recovery of 8.77% (2019: 10.90%). We could not compete
Mr. Shahbaz Haider Agha Independent Director with the tax free Commercial Gur Producers, due to this, the entire sugarcane crop in the Peshawar valley
was diverted towards the tax free Gur manufacturing. We highlighted the matter at Federal and Provincial
level to provide us level playing field with the tax free Commercial Gur Producers, unfortunately, no
Company Secretary importance was given to the loss of 120,000 tons of sugar that was not produced because of the high prices
and smuggling of Gur to Afghanistan. The country lost sugar valuing Rs. 10 billion and Government of
Mr. Mujahid Bashir Pakistan (GoP) taxes of Rs. 1.5 billion.
Chief Financial Officer SUGAR PRICES HAVE REACHED BELOW THE COST OF PRODUCTION
The Company operated at only 10% of its capacity. Due to this, the Company has incurred losses. While, the
Mr. Rizwan Ullah Khan sugar selling prices have crashed because of the ongoing Sugar Inquiry and we foresee major losses to the
Sugar Industry and our Project in the light of statement of the Provincial Government's Cane Commissioner
in Sugar Advisory Board that “the Khyber Pakhtunkhwa government favors the tax free gur production not
Head of Internal Audit Sugar Industry”.
Mr. Zaheer Mir
FINANCIAL PERFORMANCE
The Company suffer loss after taxation of Rs. 20.271 million (2019: Profit after taxation Rs. 18.886 million)
Auditors during the six months' period that ended on March 31, 2020.
M/s. ShineWing Hameed Chaudhri & Co.,Chartered Accountants
DISTILLERY
The shifting (from Mardan to Ramak, Dear Ismail Khan), commissioning and trail testing of the Distillery Plant
Tax Consultants has been completed. The plant is facing problems because it is based on old technology having low
M/s. ShineWing Hameed Chaudhri & Co.,Chartered Accountants production.
REPLY TO AUDITORS' OBSERVATION (NOTE 12.2)

Legal Advisor The Company is representing / monitoring through CM No. 454/2011 in winding-up of proceedings filed by
SECP before Honorable Lahore High Court Lahore. The Court has appointed a liquidator by accepting the
Mr. Isaac Ali Qazi Advocate Winding up petition and Company has filed statement of claims before the court.
Shares Registrar EFFECT OF COVID-19

Due to prevailing pandemic situation caused by COVID-19 and continuous increase in no. of cases specially
M/s. Hameed Majeed Associates (Pvt.) Ltd. in Mardan region, the Company decided to postpone the EOGM schedule for March 31, 2020 in the best
H.M. House, 7-Bank Square, Lahore. interest of the shareholders, directors and employees of the Company.
Phone No.: 042-37235081 Fax No.: 042-37235083 ACCOUNTING POLICIES
The accounting policies adopted in the preparation of this quarterly condensed interim financial information
Bankers are the same as applied in the preparation of the preceding annual financial statements of the Company.
Bank Al-Habib Limited The Bank of Khyber ACKNOWLEDGEMENT
MCB Bank Limited United Bank Limited The Directors appreciate the spirit of good work done by the Company's staff at all levels.
Allied Bank Limited The Bank of Punjab
FOR AND ON BEHALF OF THE BOARD
Bank Al-Falah Limited Soneri Bank Limited
Habib Bank Limited National Bank of Pakistan
Registered Office Mardan: (AZIZ SARFARAZ KHAN) (ISKANDER M. KHAN)

Nowshera Road, Mardan, KPK June 26, 2020 Director Director
Phone: 0937-862051-52 Fax: 0937-862989
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Independent Auditors' Review Report to the Members of THE PREMIER SUGAR MILLS & DISTILLERY COMPANY LIMITED
The Premier Sugar Mills & Distillery Company Limited Unconsolidated Condensed Interim Statement of Financial Position
As At March 31, 2020
Un-audited Audited
March 31, Sep. 30,
Report on Review of Interim Financial Statements 2020 2019
Introduction Assets Note (Rupees in thousand)
Non-current Assets
We have reviewed the accompanying unconsolidated condensed interim statement of financial Property, plant and equipment 7 913,958 942,937
position of The Premier Sugar Mills & Distillery Company Limited as at March 31, 2020 and Investment property 26,205 26,647
the related unconsolidated condensed interim statement of profit or loss and other comprehensive Long term investments 8 170,006 170,006
income, unconsolidated condensed interim statement of changes in equity, and unconsolidated Long term loan to Subsidiary Company 9 99,390 124,239
Security deposits 1,263 1,263
condensed interim statement of cash flows, and notes to the unconsolidated condensed interim
1,210,822 1,265,092
financial statements for the six months period then ended (here-in-after referred to as the
Current Assets
"condensed interim financial statements"). Management is responsible for the preparation and Stores and spares 108,360 110,873
presentation of these condensed interim financial statements in accordance with accounting and Stock-in-trade 10 444,329 420,358
reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to Trade debts 20 0
express a conclusion on these condensed interim financial statements based on our review. Advances 5,174 6,842
Trade deposits and short term prepayments 2,600 1,347
The figures of the unconsolidated condensed interim statement of profit or loss and other Accrued profit on bank deposits 790 123
comprehensive income for the quarters ended March 31, 2020 and March 31, 2019 have not been Other receivables 11 29,766 10,546
reviewed, as we are required to review only the cumulative figures for the six months period Sales tax refundable 4,973 0
ended March 31, 2020. Income tax refundable, advance tax and tax deducted at source 21,568 6,099
Current portion of long term loan to Subsidiary Company 9 49,696 49,695
Scope of Review Bank balances 12 52,419 53,274
We conducted our review in accordance with International Standard on Review Engagements 719,695 659,157
2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Total Assets 1,930,517 1,924,249
Entity”. A review of condensed interim financial statements consists of making inquiries, primarily Equity and Liabilities
of persons responsible for financial and accounting matters, and applying analytical and other Share Capital and Reserves
review procedures. A review is substantially less in scope than an audit conducted in accordance Authorised capital 57,500 57,500
Issued, subscribed and paid-up capital 37,500 37,500
with International Standards on Auditing as applicable in Pakistan and consequently does not
Capital reserves
enable us to obtain assurance that we would become aware of all significant matters that might be
- share redemption 1 1
identified in an audit. Accordingly, we do not express an audit opinion. - revaluation surplus on property, plant and equipment 498,695 519,562
Basis for Qualified Conclusion General revenue reserve 900,000 900,000
Accumulated loss (463,003) (463,599)
Provision against deposits with a non-banking finance company amounting Rs.29 million has not Shareholders' Equity 973,193 993,464
been made in these condensed interim financial statements as fully detailed in note 12.2. Non-current Liabilities
Qualified Conclusion Liabilities against assets subject to finance lease 3,028 2,283
Staff retirement benefits - gratuity 16,561 15,139
Based on our review, except for the matter described in the Basis for Qualified Conclusion section Deferred taxation 1,473 14,352
of our report, nothing has come to our attention that causes us to believe that the accompanying 21,062 31,774
condensed interim financial statements are not prepared, in all material respects, in accordance Current Liabilities
with the accounting and reporting standards as applicable in Pakistan for interim financial Trade and other payables 13 49,939 185,447
Unclaimed dividends 7,511 7,636
reporting.
Accrued mark-up 28,453 31,645
Emphasis of Matter Short term borrowings 814,512 653,000
Current portion of liabilities against assets subject to finance lease 1,947 1,980
Without further qualifying our conclusion, we draw attention to note 14.3 to the condensed interim
Taxation 33,900 19,303
financial statements, which describes the matter regarding non-provisioning of Gas Infrastructure 936,262 899,011
Development Cess aggregating Rs.84.598 million. Total Liabilities 957,324 930,785
The engagement partner on the review resulting in this independent auditors' review report is Contingencies and Commitments 14
Nafees ud din. Total Equity and Liabilities 1,930,517 1,924,249
The annexed notes form an integral part of these unconsolidated condensed interim financial statements.
SHINEWING HAMEED CHAUDHRI & CO.,

LAHORE; CHARTERED ACCOUNTANTS
June 27, 2020 DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER
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THE PREMIER SUGAR MILLS & DISTILLERY COMPANY LIMITED THE PREMIER SUGAR MILLS & DISTILLERY COMPANY LIMITED
Unconsolidated Condensed Interim Statement of Profit or Loss and Other Unconsolidated Condensed Interim Statement of Cash Flows (Un-Audited)
Comprehensive Income (Un-Audited) For The Half-Year Ended March 31, 2020
For the Quarter and Half-Year Ended March 31, 2020 Unconsolidated Condensed Interim Statement of Cash Flows (Un-audited) Half year ended
For The Half-Year Ended March 31, 2020 March 31, March 31,
2020 2019
Quarter ended Half-year ended (Rupees in thousand)
March 31, March 31, March 31, March 31, Cash flows from operating activities
2020 2019 2020 2019 (Loss) / profit for the period - before taxation (18,553) 31,066
Note -------------- Rupees in thousand -------------- Adjustments for non-cash charges and other items:
Depreciation on property, plant and equipment 38,837 42,711
Sales - local 68 64,592 312,538 568,901 Depreciation on investment property 442 481
Uncollectible receivable balances written-off 30 7
Less : sales tax (10) (5,225) (30,022) (51,264) Unclaimed payable balances written-back (552) (1,165)
Mark-up on loan to Subsidiary Company and profit on bank deposits (14,613) (15,247)
Sales - net 58 59,367 282,516 517,637 Gain on sale of vehicles (173) 0
Staff retirement benefits - gratuity (net) 1,422 1,174
Cost of sales (13,765) (59,200) (313,986) (454,927)
Dividends from Subsidiary Company and Associated Company (68,984) (20,626)
Finance cost 55,833 47,416
Gross (loss) / profit (13,707) 167 (31,470) 62,710
(Loss) / profit before working capital changes (6,311) 85,817
Distribution cost (299) (2,060) (1,743) (3,931) Effect on cash flows due to working capital changes
(Increase) / decrease in current assets:
Administrative expenses (16,373) (16,876) (28,643) (31,176) Stores and spares 2,513 (4,093)
Stock-in-trade (23,971) (391,926)
Other income 15 85,663 39,468 100,088 55,276 Trade debts (20) 104,383
Advances 1,638 6,228
Other expenses 16 (952) (2,292) (952) (4,397) Trade deposits and short term prepayments (1,253) 2,823
Other receivables (19,220) (879)
Profit from operations 54,332 18,407 37,280 78,482
Sales tax - net (4,973) 35,341
(Decrease) / increase in trade and other payables (134,956) 3,983
Finance cost (31,723) (26,966) (55,833) (47,416)
Decrease in unclaimed dividends (125) (31)
Profit / (loss) before taxation 22,609 (8,559) (18,553) 31,066 (180,367) (244,171)
Cash used in operations (186,678) (158,354)
Taxation 17 (1,104) (4,161) (1,718) (12,180) Income tax paid (15,469) (2,969)
Net cash used in operating activities (202,147) (161,323)
Cash flows from investing activities
Profit / (loss) after taxation 21,505 (12,720) (20,271) 18,886
Additions to property, plant and equipment (10,547) (43,147)
Sale proceeds of vehicles 862 0
Other comprehensive income 0 0 0 0 Dividends received 68,984 0
Mark-up / profit received on loan to Subsidiary Company and bank deposits 13,946 15,095
Total comprehensive income / (loss) 21,505 (12,720) (20,271) 18,886 Net cash generated from / (used in) investing activities 73,245 (28,052)
Cash flows from financing activities
---------------------- Rupees ---------------------- Long term finances repaid 0 (33,333)
Decrease in long term loan to a Subsidiary Company 24,848 42,829
Lease finances - net 712 (1,351)
Earnings / (loss) per share 5.73 (3.39) (5.41) 5.04
Short term borrowings - net 161,512 225,187
Finance cost paid (59,025) (44,455)
The annexed notes form an integral part of these unconsolidated condensed interim financial Net cash generated from financing activities 128,047 188,877
statements. Net decrease in cash and cash equivalents (855) (498)
Cash and cash equivalents - at beginning of the period 53,274 51,720
Cash and cash equivalents - at end of the period 52,419 51,222
The annexed notes form an integral part of these unconsolidated condensed interim financial statements.
DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER
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Unconsolidated Condensed Interim Statement Of Changes In Equity (Un-Audited) Notes to the unconsolidated condensed interim financial statements (Un-audited)
For The Half-Year Ended March 31, 2020 For The Half-Year Ended March 31, 2020
1. The Company and its operations
Reserves
Capital Revenue 1.1 The Premier Sugar Mills & Distillery Company Limited (the Company) was incorporated
Revaluation on July 24, 1944 as a Public Company and its shares are quoted on Pakistan Stock
Share
capital Share surplus on Total Exchange Ltd. The Company is principally engaged in manufacture and sale of white
Accumul-
redem- property, General sugar and spirit. The Company's Mills and Registered Office are located at Mardan
ated loss
ption plant and
equipment
(Khyber Pakhtunkhwa - KPK) whereas the Head Office is situated at King's Arcade, 20-
A, Markaz F-7, Islamabad.
----------------------------- Rupees in thousand -----------------------------
1.2 In recent weeks, Pakistan has enacted protection measures against COVID - 19 with a
Balance as at September 30, 2019 (audited) 37,500 1 519,562 900,000 (463,599) 993,464
significant impact on daily life and supply chain of goods. The evolution of COVID - 19 as
Total comprehensive loss for the well as its impact on Pakistan economy is hard to predict at this stage. The management
half-year ended March 31, 2020 0 0 0 0 (20,271) (20,271)
is monitoring the situation to ensure safety of its workers by introducing fool proof anti
Transfer from revaluation surplus on COVID - 19 measures and smooth operation of its business.
property, plant and equipment on
account of incremental depreciation As of the release date of these condensed interim financial statements, there has been
for the period - net of deferred taxation 0 0 (20,867) 0 20,867 0
no specifically material quantifiable impact of COVID - 19 on the Company's financial
Balance as at March 31, condition or results of its operations.
2020 (un-audited) 37,500 1 498,695 900,000 (463,003) 973,193
The Company, being engaged in production of food item, comes under the exemption
Balance as at September 30, 2018 (audited) 37,500 1 565,596 900,000 (510,281) 992,816 given by the Government of KPK vide its Notification dated March 24, 2020.
Total comprehensive income for the 2. Basis of preparation
half-year ended March 31, 2019 0 0 0 0 18,886 18,886
Transfer from revaluation surplus on These unconsolidated condensed interim financial statements have been prepared in
property, plant and equipment on accordance with the accounting and reporting standards as applicable in Pakistan for
account of incremental depreciation interim financial reporting. The accounting and reporting standards as applicable in
for the period - net of deferred taxation 0 0 (23,016) 0 23,016 0
Pakistan for interim financial reporting comprise of:
Balance as at March 31, 2019 (un-audited) 37,500 1 542,580 900,000 (468,379) 1,011,702
- International Accounting Standard ( IAS) 34, ''Interim financial reporting'', issued by
The annexed notes form an integral part of these unconsolidated condensed interim financial statements. the International Accounting Standards Board (IASB) as notified under the
Companies Act, 2017; and
- Provisions of and directives issued under the Companies Act, 2017.
Where the provisions of and directives issued under the Companies Act, 2017 differ with
the requirements of IAS 34, the provisions of and directives issued under the Companies
Act, 2017 have been followed.
3. Significant accounting policies
The accounting policies and methods of computation adopted in the preparation of these
unconsolidated condensed interim financial statements are the same as those applied in
the preparation of preceding unconsolidated annual financial statements of the Company
for the year ended September 30, 2019.
4. Standards, amendments to published standards and interpretations that are
effective in the current period
Certain standards, amendments and interpretations to IFRSs are effective for accounting
periods beginning on October 01, 2019 but are considered not to be relevant or to have
any significant effect on the Company’s operations (although they may affect the
accounting for future transactions and events) and are, therefore, not detailed in these
DIRECTOR DIRECTOR unconsolidated condensed interim financial statements, except for the following:
CHIEF FINANCIAL OFFICER
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(a) Amendments to IAS 19, ‘Employee benefits’ on plan amendment, curtailment or The lease liability is initially measured at the present value of the lease payments that
settlement’ are effective for periods beginning on or after January 01, 2019. These are not paid at the commencement date, discounted using the interest rate implicit in the
amendments require an entity to use updated assumptions to determine current service lease or , if that rate cannot be readily determined, the Company's incremental borrowing
cost and net interest for the remainder of the period after a plan amendment, curtailment rate. The lease liability is subsequently increased by the interest cost on the lease
or settlement; and recognise in statement of profit or loss as part of past service cost, or liability and decreased by lease payments made. It is re-measured when there is a
a gain or loss on settlement, any reduction in a surplus, even if that surplus was not change in future lease payments arising from a change in an index or rate, a change in
previously recognised because of the impact of the asset ceiling. The amendments do assessment of whether extension option is reasonably certain to be exercised or a
not have any material impact on the Company’s unconsolidated condensed interim termination option is reasonably certain not to be exercised.
financial statements.
5. These unconsolidated condensed interim financial statements are being submitted
(b) IAS 23, 'Borrowing costs' is effective for accounting periods beginning on or after to the shareholders as required by section 237 of the Companies Act, 2017.The
January 01, 2019. The amendment is part of the annual improvement 2015-2017 cycle. figures of the unconsolidated condensed interim statement of profit or loss & other
The amendment clarifies that the general borrowings pool used to calculate eligible comprehensive income for the quarters ended March 31, 2020 and 2019 have not
borrowing costs exclude only borrowings that specifically finance qualifying assets that been reviewed by the statutory auditors of the Company as the auditors have reviewed
are still under development or construction. Borrowings that were intended to specifically the cumulative figures for the six months period ended March 31, 2020. These
finance qualifying assets that are now ready for their intended use or sale - or any non- unconsolidated condensed interim financial statements do not include all the information
qualifying assets - are included in that general pool. The amendments do not have any and disclosures as required in the unconsolidated annual financial statements and
material impact on the Company’s unconsolidated condensed interim financial should be read in conjunction with the Company's unconsolidated financial statements
statements. for the year ended September 30, 2019.
(c) IFRIC 23, ‘Uncertainty over income tax treatments’ is effective for accounting periods 6. Accounting estimates, judgments and financial risk management
beginning on or after January 01, 2019. This IFRIC clarifies how the recognition and
measurement requirements of IAS 12 ‘Income taxes’, are applied where there is 6.1 The preparation of unconsolidated condensed interim financial statements in conformity
uncertainty over income tax treatments. The IFRIC explains how to recognise and with approved accounting standards requires management to make estimates,
measure deferred and current income tax assets and liabilities where there is uncertainty assumptions and use judgments that affect the application of policies and reported
over a tax treatment. An uncertain tax treatment is any tax treatment applied by an entity amounts of assets and liabilities and income and expenses. Estimates, assumptions and
where there is uncertainty over whether that treatment will be accepted by the tax judgments are continually evaluated and are based on historical experience and other
authority. The IFRIC applies to all aspects of income tax accounting where there is an factors, including reasonable expectations of future events. Revisions to accounting
uncertainty regarding the treatment of an item, including taxable profit or loss, the tax
estimates are recognised prospectively commencing from the period of revision.
bases of assets and liabilities, tax losses and credits and tax rates. The amendments do
not have any material impact on the Company’s financial statements. 6.2 Judgments and estimates made by the management in the preparation of these
unconsolidated condensed interim financial statements are the same as those that were
(d) IFRS 16, 'Leases' has introduced a single on-balance sheet accounting model for
applied to the unconsolidated financial statements as at and for the year ended
lessees. As a result, the Company, as a lessee has recognised right-of-use asset
September 30, 2019.
representing its rights to use the underlined assets and lease liabilities representing its
obligation to make lease payments. 6.3 The Company’s financial risk management objectives and policies are consistent with
those disclosed in the unconsolidated financial statements as at and for the year ended
The Company has applied IFRS 16 using the modified retrospective approach. Under
September 30, 2019.
this approach, the cumulative effect of initial application needs to be recognised in
retained earnings. Accordingly, the comparative information presented for the year 2019 6.4 The Company follows the practice of conducting actuarial valuation annually at the year-
has not been restated i.e. it is presented, as previously reported, under IAS 17 and end. Hence, the impact of remeasurement of staff retirement benefits - gratuity has not
related interpretations. The details of the changes in accounting policies are as follows. been incorporated in these unconsolidated condensed interim financial statements.
A contract is, or contains a lease if the contract conveys a right to control the use of an 7. Property, plant and equipment Un-audited Audited
Note March 31, 2020 Sep. 30, 2019
identified asset for a period of time in exchange for consideration. The Company mainly
(Rupees in thousand)
leases vehicles for management use. The Company recognises a right-of-use asset and
lease liability at the lease commencement date. The right-of-use asset is initially Operating fixed assets 7.1 801,777 837,371
measured at cost, and subsequently at cost less accumulated depreciation and Capital work-in-progress
impairment losses if any, and adjusted for certain remeasurements of the lease liability. - plant & machinery 78,010 78,010
The right-of-use asset is depreciated using the reducing balance method. The estimated - electric installation 21,571 21,571
useful lives of assets are determined on the same basis as that for owned assets. In - others 5,985 5,985
addition, the right-of-use asset is periodically reduced by impairment losses, if any. (a) 105,566 105,566
12 13
7. Property, plant and equipment Un-audited Audited
Note M arch 31, 2020 Sep. 30, 2019 10. Stock-in-trade Un-audited Audited
(Rupees in thousand) Note March 31, 2020 Sep. 30, 2019
Right-of-use assets 7.2 6,615 0 (Rupees in thousand)
Sugar-in-process 6,844 3,003

913,958 942,937
Finished goods:
(a) These represent costs incurred for erection of distillery at Ramak, Dera Ismail Khan. - sugar 10.1 408,381 304,685
7.1 Operating fixed assets Un-audite d - molasses 29,104 112,670
Book value at beginning of the period - audited 837,371
` 437,485 417,355
Additions during the period
444,329 420,358
- plant and machinery 7,669
- furniture, fittings and office equipment 245 10.1 Sugar inventory as at March 31, 2020 has been stated at net realisable value; the
Book value of vehicles sold (689) amount charged to statement of profit or loss in respect of inventory write-drown to net
realisable value worked-out to Rs.188.864 million.
Depreciation charge for the period (38,297)
Transfer to right-of-use assets (4,522) 11. Other receivables
Sugar export subsidy 2,991 2,991
Book value at end of the period - un-audited 801,777
Gas infrastructure development cess paid
7.2 Right-of-use assets under protest - refundable 3,018 3,018
Opening balance 0 Due from related parties:
Transfer from operating fixed assets 4,522 - Chashma Sugar Mills Ltd. ( a Subsidiary Company) 20,242 0
- Premier Board Mills Ltd. (an Associated Company)
Additions during the period 2,633
(lease rentals receivable) 1,677 3,127
Depreciation for the period (540)
Others 1,838 1,410
6,615 29,766 10,546
8. Long term investments 12. Bank balances
Market values of the Company's quoted investments in Chashma Sugar Mills Ltd. (a 12.1 Period-end bank balances include deposits aggregating Rs.20 million (September 30,
Subsidiary Company) and Arpak International Investments Ltd. (an Associated Company) 2019: Rs.5 million), which are under lien of a bank against guarantees issued by it in
at period-end were Rs.856.687 million (September 30, 2019: Rs.550.040 million) and favour of Sui Northern Gas Pipelines Ltd. on behalf of the Company.
Rs.10.821 million (September 30, 2019: Rs.2.529 million) respectively.
12.2 (a) The period-end balance includes deposits lying with Innovative Investment Bank
9. Long term loan to Subsidiary Company Un-audited Ltd. (IIBL), Islamabad carrying profit at the rate of 5% per annum. The maturity
Balance as at September 30, 2019 173,934 dates of these deposits were as follows:
Less: instalment received during the period 24,848 Amount of

Date of maturity
deposit
Balance as at March 31, 2020 149,086
Rupees in
Less: current portion grouped under current assets 49,696 thousand
July 29, 2009 7,800
99,390
July 29, 2010 7,800
9.1 The Company and Chashma Sugar Mills Ltd., on February 09, 2017, have entered into a July 29, 2011 7,800
loan agreement whereby the Company has revised the repayment schedule. As per the
revised terms, the loan tenor is 3.5 years with grace period of 3 years; the principal July 29, 2012 15,600
balance of loan is receivable in 7 equal instalments commenced from February, 2020. 39,000
The loan carries mark-up at the rate of 1-month KIBOR+1.25% but not less than the
Less: amount realised during the financial
borrowing cost rate of the Company, the effective mark-up rates during the period
year ended September 30, 2018 (10,000)
ranged from 15.56% to 15.86% per annum. The loan is secured against a promissory
note of Rs.374 million. 29,000
14 15
(b) The realisibility of these deposits is doubtful of recovery as these could not be 14. Contingencies and commitments
encashed on their respective maturity dates; further, period-end balance 14.1 No commitments were outstanding as at March 31, 2020 and September 30, 2019.
confirmation certificate from IIBL was also not received. The Securities and 14.2 The Company's appeal filed before the Peshawar High Court (PHC) against order of the
Exchange Commission of Pakistan (SECP), in exercise of its powers conferred Customs, Sales Tax & Central Excise Appellate Tribunal is still pending adjudication.
under sections 282 E & F of the repealed Companies Ordinance, 1984, had The Department, during the financial year ended September 30, 2001, had raised sales
superseded the entire Board of Directors of IIBL and appointed an Administrator tax demand aggregating Rs.4.336 million along with additional tax. The Company,
with effect from January 28, 2010. SECP had also instituted winding-up however, during the financial year ended September 30, 2005, had paid sales tax
proceedings against IIBL before the Lahore High Court, Lahore (LHC). SECP had amounting Rs.2.123 million along with additional tax amounting Rs.0.658 million as per
sought liquidation on a number of counts including violation of the Scheme of the requirements of S.R.O. 247(I) / 2004 dated May 05, 2004.
Amalgamation approved by SECP under which IIBL took over all the rights /
liabilities of Crescent Standard Investment Bank Ltd. 14.3 The Company's petition filed before the Supreme Court of Pakistan (SCP) against
imposition of Gas Infrastructure Development Cess (GIDC) is still pending adjudication.
(c) The SECP winding-up petition has been decided by the LHC and LHC has
Sui Northern Gas Pipelines Ltd., along with gas bills for the month of March, 2020, has
appointed Joint Official Liquidator (JOL). The LHC, vide its order dated April 14,
raised GIDC demands aggregating Rs.84.598 million, which are payable in case of an
2018 has approved release of payment upto Rs.10 million in respect of principal
adverse judgment by the SCP. No provision for these GIDC demands has been made in
amount only subject to verification as per the laws. The amount of Rs.10 million,
the books of account as the management expects a favourable judgment by the SCP
as per the LHC order, has been received by the Company during August, 2018.
due to meritorious legal grounds.
The management, for the release of further amount, anticipates that JOL will
intimate in due course of time; no provision, therefore, for the remaining deposits 14.4 The Company's petition filed before the SCP against judgment dated October 24, 2019
aggregating Rs.29 million has been made in the books of account. passed by the PHC in the writ petition is pending adjudication. The said writ petition was
filed challenging the demand of further tax on supplies to unregistered persons under
section 3 (1A) of the Sales Tax Act, 1990 through show cause notice dated October 03,
(d) The Company has not accrued profit on these deposits during the current period
2018.
and preceding financial years.
14.5 The Company's petition filed before the PHC against the Government of Khyber
12.3 There has been no change in the status of matter as detailed in note 15.5
Pakhtunkhwa's notification dated August 12, 2015 in which minimum wages for unskilled
to the unconsolidated financial statements of the Company for the year ended
workers has been fixed at Rs.12,000 per month with effect from July 01, 2014 has been
September 30, 2019.
dismissed by the PHC vide its judgment dated April 02, 2019. The PHC has observed
13. Trade and other payables Un-audited Audited that the Company cannot challenge the revised rate of Rs.12,000 as it was fixed at its
March 31, 2020 Sep. 30, 2019 wish and will in line with rest of the country. The additional wage liabilities aggregate
(Rupees in thousand) Rs.2.359 million approximately.
Due to a related party - Chashma Sugar Mills Ltd. 0 107,157 14.6 A sales tax appeal is pending before the Commissioner Inland Revenue (Appeals)
Creditors 12,312 20,547 [CIR(A)], Peshawar against assessment order dated June 28, 2016 passed by the
Deputy Commissioner Inland Revenue [DCIR], Peshawar regarding the alleged stock
Bills payable 1,846 3,171 taking to the tune of Rs.5.592 million recoverable under section 14 of the Federal Excise
Accrued expenses 2,381 6,138 Act, 2005.
Due to employees 6,832 5,467 14.7 The sales tax appeal filed before the Appellate Tribunal Inland Revenue (ATIR),
Peshawar against ex-parte order passed by the CIR(A) has been succeeded vide order
Deposits from contractors and others 668 1,155 dated March 29, 2018. The assessment order dated June 23, 2016 was passed by the
DCIR, Peshawar in violation of SRO 488(I)/2004 dated June 12, 2014; the Company
Advances from customers - contract liabilities 20,064 12,105
claimed input tax to the tune of Rs.41.672 million against the supplies to unregistered
Income tax deducted at source 339 333 persons. A withdrawal application has been filed before the ATIR, Peshawar in
pursuance of the aforesaid rectification order.
Sales tax payable 9 24,007
14.8 The CIR(A) vide his order dated March 03, 2019 has vacated the demand of Rs.31.798
Workers' (profit) participation fund 1,625 1,625
million created vide impugned assessment order dated January 31, 2019 under section
Gratuity payable to ex-employees 3,304 3,304 11(2) of the Sales Tax Act, 1990.
Employees' provident fund payable 434 357
Others 125 81
49,939 185,447
16 17
14.9 The DCIR for the tax year 2013 initially has held the Company as taxpayer-in-default for 17.1 Provision for the current period represents tax due under sections 5 (Tax on dividends)
non-deduction of tax on certain supplies / services and tax demand was raised at and 113 (Minimum tax on the income of certain persons) of the Income Tax Ordinance,
Rs.77.750 million under section 161 (Failure to pay tax collected or deducted) along with 2001 (the Ordinance).
default surcharge of Rs.4.730 million under section 205 (Default surcharge) of the
Income Tax Ordinance, 2001 (the Ordinance). The Company filed rectification 17.2 The Company has filed a writ petition before the Peshawar High Court (PHC) against
application under section 221 of the Ordinance and the demand was reduced to selection for audit under sections 177 and 214C of the Ordinance; the PHC has stayed
Rs.237,360. Against the said demand, the Company has filed an appeal before the the Income Tax Department from finalising the proceedings. The petition is pending
CIR(A), who dismissed the Company's appeal. Presently, the Company's appeal against adjudication.
the CIR(A)'s order is pending before the ATIR, Peshawar. 18. Transactions with related parties
14.10 Guarantees given to Sui Northern Gas Pipelines Ltd. by a commercial bank on behalf of 18.1 The Company has related party relationship with its Subsidiary and Associated
the Company outstanding as at March 31, 2020 were for Rs.20 million (2019: Rs.20 Companies, employee benefit plans, its directors and key management personnel.
million).These guarantees are valid upto November 30, 2020. Transactions with related parties are carried-out on arm's length basis. There were no
15. Other income Un-audited transactions with key management personnel other than under the terms of employment.
March 31, 2020 March 31, 2019 Aggregate transactions with Subsidiary and Associated Companies during the period
were as follows:
Income from financial assets: Note (Rupees in thousand)
Un-audited
Profit on bank deposits and saving accounts 1,058 376 Half-year ended
March 31, March 31,
Mark-up on loan to a Subsidiary Company 13,555 14,871 2020 2019
Dividend from a Subsidiary Company 68,755 20,626 Subsidiary Companies: (Rupees in thousand)
- purchase of goods 8,364 8,844

Dividend from an Associated Company 229 0
- sale of goods 1,675 0
Income from other than financial assets:
- sale of molasses 105,920 22,617
Sale of press mud 594 1,776
- mark-up earned on long term loan 13,555 14,871
Un-claimed payable balances written-back 552 1,165 - dividend 68,755 20,626
Rent from: - rent 9,900 9,900
- an Associated Company 3,355 3,355 - Distillery relocation expenses paid by
- a Subsidiary Company 9,900 9,900 Chashma Sugar Mills Ltd. (CSM) adjusted by the
Company against long term loan advanced to CSM 0 42,829
Sale of agricultural produce - net 1,730 3,190
Associated Companies:
Gain on sale of vehicles 173 0 - purchase of goods 0 15,269
Miscellaneous 187 17 - rent received 3,355 3,355
100,088 55,276 - dividend 229 0
16. Other expenses
18.2 Receivables from and payables to Subsidiary and Associated Companies have been
disclosed in notes 11 and 13 respectively to these unconsolidated condensed interim
Workers' (profit) participation fund 0 1,635 financial statements.
Income tax paid of prior years under section 236G of
the Income Tax Ordinance, 2001 (Advance tax 18.3 Return has not been charged on the current account balances of Subsidiary and
on sales to distributors, dealers and wholesalers) 0 2,755 Associated Companies as these have arisen due to normal trade dealings.
Sales tax arrears paid 922 0 19. Corresponding figures
952 4,397
In order to comply with the requirements of IAS 34 'Interim financial reporting', the
17. Taxation unconsolidated condensed interim statement of financial position has been compared
Current 17.1 14,597 12,180 with the balances of annual audited financial statements of the preceding financial year,
whereas, unconsolidated condensed interim statement of profit or loss and other
Deferred (12,879) 0
comprehensive income, unconsolidated condensed interim statement of cash flows and
1,718 12,180 unconsolidated condensed interim statement of changes in equity have been compared
with the balances of comparable period of the immediately preceding financial year.
18 19
20. Date of authorisation for issue
These unconsolidated condensed interim financial statements were approved and

authorised for issue by the Board of Directors of the Company on June 26, 2020.
DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER
THE PREMIER SUGAR MILLS

& DISTILLERY CO. LIMITED,
MARDAN
CONSOLIDATED CONDENSED INTERIM

FINANCIAL INFORMATION
FOR THE HALF YEAR ENDED
MARCH 31, 2020
20
Consolidated Condensed Interim Statement of Financial Position Consolidated Condensed Interim Statement of Profit or Loss
As At March 31, 2020 For The Quarter And Half Year Ended March 31, 2020
Un-audited Audited
March 31, Sep. 30, Quarter ended Half year ended
2020 2019
Note March 31, March 31, March 31, March 31,
Assets Note (Rupees in thousand)
Non-current assets 2020 2019 2020 2019
Property, plant and equipment 8 10,591,441 10,568,405 --------------------- Rupees in thousand ------------------
Right-of-use assets 9 225,285 0 Sales
Investment property 26,205 26,647
Long term investments 10 111,833 110,273 - local 3,649,065 2,439,770 5,923,490 4,611,879
Security deposits 16,439 16,439 - export 739,333 400,681 1,424,229 1,232,398
10,971,203 10,721,764
4,388,398 2,840,451 7,347,719 5,844,277
Current assets
Stores and spares 11 491,069 612,913 Less: sales tax, other government
Stock-in-trade 12 7,788,714 2,145,182 levies and discounts (525,797) (233,145) (879,564) (509,564)
Trade debts 524,268 57,011
Loans and advances 810,501 1,183,483 Sales - net 3,862,601 2,607,306 6,468,155 5,334,713
Trade deposits, short term prepayments and other receivables 13 347,709 353,099 Cost of sales (3,330,493) (2,149,728) (5,276,291) (4,538,950)
Accrued profit on bank deposits 790 123
Gross profit 532,108 457,578 1,191,864 795,763
Tax refunds due from the Government 23,682 54,714
Sales tax refundable 5,513 0 Selling and distribution expenses (175,096) (55,096) (309,337) (113,207)
Short term investments 14 24,935 28,837 Administrative expenses (187,497) (141,092) (332,483) (255,178)
Cash and bank balances 15 730,733 312,499
10,747,914 4,747,861 Other income 23 23,327 66,456 35,655 55,557
Total assets 21,719,117 15,469,625 Other expenses 24 (2,045) (10,910) (19,285) (13,075)
Equity and liabilities Profit from operations 190,797 316,936 566,414 469,860
Share capital and reserves
Authorised capital 57,500 57,500 Finance cost (313,271) (220,893) (492,614) (365,625)
Issued, subscribed and paid-up capital 37,500 37,500 (122,474) 96,043 73,800 104,235
Capital reserves
Gain on sale of long term
- share redemption 1 1
- revaluation surplus on property, plant and equipment 2,297,588 2,447,144 investments 25 0 15,806 0 20,088
General revenue reserve 1,010,537 1,010,537 Share of profit / (loss) from
Unappropriated profit 886,924 737,032 Associated Companies 10 1,658 (87) 1,658 (87)
Equity attributable to equity holders of the Holding Company 4,232,550 4,232,214 1,658 15,719 1,658 20,001
Non-controlling interest 3,211,221 3,192,360
7,443,771 7,424,574 (Loss) / profit before taxation (120,816) 111,762 75,458 124,236
Non-current liabilities Taxation
Long term finances 16 1,330,813 1,312,000
Group
Loans from related parties 17 206,825 163,089
Lease liabilities 109,435 97,253 - current 59,298 32,059 89,362 68,022
Deferred liabilities 18 1,000,709 1,108,251
- prior year 154 564 154 564
2,647,782 2,680,593
Current liabilities - deferred (78,774) (27,164) (105,030) (114,957)
Trade and other payables 19 2,447,223 787,798
(19,322) 5,459 (15,514) (46,371)
Unclaimed dividends 7,511 7,636
Accrued mark-up 326,017 225,094 Associated Companies 10 (48) (33) (48) (33)
Short term borrowings 8,216,422 3,650,993
Current portion of non-current liabilities 20 553,806 654,531
(19,370) 5,426 (15,562) (46,404)
Dividends payable to non-controlling interest 11,122 9,260 (101,446) 106,336 91,020 170,640
(Loss) / profit after taxation
Taxation - net 21 65,463 29,146
11,627,564 5,364,458 --------------------------- Rupees ---------------------------
Total liabilities 14,275,346 8,045,051 Combined (loss) / earnings per share (19.41) 10.40 0.15 18.58
Contingencies and commitments 22 The annexed notes form an integral part of these consolidated condensed interim financial statements.
Total equity and liabilities 21,719,117 15,469,625
The annexed notes form an integral part of these consolidated condensed interim financial statements.
22 23
Consolidated Condensed Interim Consolidated Condensed Interim
Statement of Other Comprehensive Income (Un-Audited) Statement of Cash Flows (Un-audited)
For The Quarter And Half Year Ended March 31, 2020 For The Half Year Ended March 31, 2020
For The Half Year Ended March 31, 2020 Half year ended
March 31, March 31,
Quarter ended Half year ended 2020 2019
March 31, March 31, March 31, March 31, (Rupees in thousand)
Cash flows from operating activities
2020 2019 2020 2019
----------------- Rupees in thousand ----------- Profit for the period - before taxation 75,458 124,236
Adjustments for non-cash charges and other items:
(Loss) / profit after taxation (101,446) 106,336 91,020 170,640 Depreciation on property, plant and equipment 426,113 441,288
Depreciation on right-of-use assets 24,497
Depreciation on investment property 442 481
Other comprehensive income / (loss) (Profit) / loss from Associated Companies (1,658) 87
Gain on sale of long term investments 0 (20,088)
Items that may be reclassified Mark-up / profit on bank deposits and saving accounts (3,879) (3,127)
Un-claimed payable balances written-back (552) (1,165)
subsequently to profit or loss: Gain on sale of operating fixed assets (1,669) (2,244)
Gain on redemption and re-measurement of short term
Share of other comprehensive income / investments to fair value (1,756) (372)
(loss) from Associated Companies 162 (1) 162 (1) Dividend (229) (609)
Finance cost 492,614 365,625
Adjustment of gain included in statement
Profit before working capital changes 1,009,411 904,119
of profit or loss upon sale of
Effect on cash flows due to working capital changes
available-for-sale investments 0 (19,671) 0 (19,671)
(Increase) / decrease in current assets
Other comprehensive income / (loss) 162 (19,672) 162 (19,672) Stores and spares 121,844 (7,744)
Stock-in-trade (5,643,532) (4,915,222)
Total comprehensive (loss) / income (101,284) 86,664 91,182 150,968 Trade debts (467,257) (126,651)
Loans and advances 372,952 (43,757)
Trade deposits, short term prepayments and other receivables 5,390 2,112
Attributable to: Sales tax refundable -net (5,513) 224,687
Advance sales tax 0 25,000
- Equity holders of the Holding Company (72,778) 39,001 548 69,659 Increase in trade and other payables 1,647,454 1,855,302
(3,968,662) (2,986,273)
- Non-controlling interest (28,506) 47,663 90,634 81,309 Cash used in operations (2,959,251) (2,082,154)
Taxation - net (22,167) (63,869)
(101,284) 86,664 91,182 150,968
Security deposits 0 (1,226)
Staff retirement benefits - gratuity (net) 2,529 1,465
The annexed notes form an integral part of these consolidated condensed interim financial Net cash used in operating activities (2,978,889) (2,145,784)
statements. Cash flows from investing activities
Additions to property, plant and equipment and right-of-use assets (602,915) (344,728)
Sale proceeds of operating fixed assets 6,538 5,901
Sale proceeds of long term investments 0 25,768
Dividend received 229 609
Short term investments redeemed 5,400 3,000
Mark-up / profit received on bank deposits and saving accounts 3,212 2,975
Net cash used in investing activities (587,536) (306,475)
Cash flows from financing activities
Long term finances - net (62,454) (8,012)
Loan from related parties - net 25,000 10,000
Lease finances - net (81,589) (3,519)
Short term borrowings - net 4,565,429 3,062,880
Finance cost paid (391,691) (331,507)
Dividends paid (70,036) (201)
Net cash generated from financing activities 3,984,659 2,729,641
Net increase in cash and cash equivalents 418,234 277,382
Cash and cash equivalents - at beginning of the period 312,499 360,878
Cash and cash equivalents - at end of the period 730,733 638,260
The annexed notes form an integral part of these consolidated condensed interim financial statements.
24 25
Consolidated Condensed Interim Notes to the Consolidated Condensed Interim
Statement Of Changes In Equity (Un-Audited) Financial Statements (Un-audited)
For The Half-Year Ended March 31, 2020 For The Half-Year Ended March 31, 2020
------- Attributable to equity holders of the Holding Company------
Reserves 1. The Group and its operations
Capital Non-
Share
Fair value
controlling Total equity 1.1 The Premier Sugar Mills & Distillery Company Ltd. (the Holding Company)
Revaluation reserve on Unappro- Total
capital Share General interest
surplus on available- priated
redem-
property, plant
revenue
for-sale profit The Holding Company was incorporated on July 24, 1944 as a Public Company and its
ption
and equipment investments
shares are quoted on Pakistan Stock Exchange Ltd. The Holding Company is principally
---------------------------------------------------------------------------- Rupees in thousand ---------------------------------------------------------------------------- engaged in manufacture and sale of white sugar and spirit. The Holding Company's Mills
Balance as at September 30, 2018 37,500 1 2,646,568 1,010,537 16,052 263,315 3,973,973 2,939,859 6,913,832
and Registered Office are located at Mardan (Khyber Pakhtunkhwa) whereas the Head
Transaction with owners:
- Cash dividend at the rate of Rs.1.50 Office is situated at King's Arcade, 20-A, Markaz F-7, Islamabad.
per ordinary share for the year
ended September 30, 2018 0 0 0 0 0 0 0 (21,532) (21,532) 1.2 Subsidiary Companies
Total comprehensive income / (loss):
Profit for the half-year (a) Chashma Sugar Mills Ltd. (CSML)
ended March 31, 2019 0 0 0 0 0 89,331 89,331 81,309 170,640
Other comprehensive loss 0 0 0 0 0 (1) (1) 0 (1) CSML was incorporated in Pakistan on May 05, 1988 as a Public Company, under the
0 0 0 0 0 89,330 89,330 81,309 170,639 Companies Ordinance, 1984 (which was repealed upon enactment of the Companies Act,
Effect of items directly credited in
equity by Associated Companies 0 0 0 0 0 1 1 0 1 2017 on May 30, 2017) and commenced its commercial production from July 09, 1988.
Adjustment of gain included in CSML has its shares quoted on the Pakistan Stock Exchange Ltd. CSML is principally
statement of profit or loss upon sale
of available-for-sale investments 0 0 0 0 (16,052) 0 (16,052) (3,619) (19,671) engaged in manufacturing, production, processing, compounding, preparation and sale of
Transfer from revaluation surplus on
property, plant and equipment
sugar, ethanol, other allied compound intermediates and by-products. CSML is a
(net of deferred taxation) 0 0 0 0 0 96,799 96,799 73,568 170,367 Subsidiary of The Premier Sugar Mills & Distillery Company Ltd.. The registered office of
- on account of incremental
depreciation for the half year 0 0 (96,799) 0 0 0 (96,799) (73,568) (170,367) CSML is located at Nowshera Road, Mardan, Khyber Pakhtunkhawa. The head office of
Balance as at March 31, 2019 37,500 1 2,549,769 1,010,537 0 449,445 4,047,252 2,996,017 7,043,269
CSML is situated at King's Arcade, 20-A, Markaz F-7, Islamabad and its manufacturing
Total comprehensive income:
Profit for the half-year ended
facilities are located in Dera Ismail Khan, Khyber Pakhtunkhawa.
September 30, 2019 0 0 0 0 0 193,392 193,392 206,276 399,668
Other comprehensive income 0 0 0 0 0 728 728 0 728
Whole Foods (Pvt.) Ltd. (WFPL) was incorporated in Pakistan as a Private Limited
0 0 0 0 0 194,120 194,120 206,276 400,396 Company under the Companies Act, 2017 on October 26, 2017. The principal activity of
Effect of items directly credited in
equity by Associated Companies 0 0 0 0 0 764 764 0 764 WFPL is to set-up, manage, supervise and control the storage facilities for agricultural
Transfer from revaluation surplus on produce. WFPL is a wholly owned Subsidiary of CSML and its ultimate holding company
property, plant and equipment
(net of deferred taxation) 0 0 0 0 0 92,703 92,703 69,525 162,228
is The Premier Sugar Mills and Distillery Company Ltd.
depreciation for the half-year 0 0 (92,703) 0 0 0 (92,703) (69,525) (162,228) WFPL's registered office is situated at 20-A, King's Arcade, F-7 Markaz, Jinnah Super,
Resultant adjustment due to Islamabad. WFPL currently has two storage facilities under construction located at:
reduction in tax rate 0 0 (9,922) 0 0 0 (9,922) (9,933) (19,855)
- Bhakkar at 12-KM Behal Road Hassan Khan, Bhakkar; and
Balance as at September 30, 2019 37,500 1 2,447,144 1,010,537 0 737,032 4,232,214 3,192,360 7,424,574
- Layyah at Chok No. 484 TDA Tehsil Choubara, District Layyah.
Transaction with owners:
- Cash dividend at the rate of Rs.5.00 The Holding Company directly and indirectly controls / beneficially owns more than fifty
per ordinary share for the year
ended September 30, 2019 0 0 0 0 0 0 0 (71,773) (71,773) percent of CSML's paid-up capital and also has the power to elect and appoint more than
Total comprehensive income: fifty percent of its directors; accordingly, CSML has been treated a Subsidiary with effect
Profit for the half-year 0 0 0 0 0 386 386 90,634 91,020 from the financial year ended September 30, 2010.
ended March 31, 2020
Other comprehensive income 0 0 0 0 0 162 162 0 162 (b) The Frontier Sugar Mills and Distillery Ltd. (FSM)
0 0 0 0 0 548 548 90,634 91,182
Effect of items directly credited in FSM was incorporated on March 31, 1938 as a Public Company and its shares were
equity by Associated Companies 0 0 0 0 0 (212) (212) 0 (212)
Transfer from revaluation surplus on
quoted on all the Stock Exchanges of Pakistan; FSM was delisted from the Stock
property, plant and equipment Exchanges as detailed in note 1.2 (c). The principal activity of FSM is manufacturing and
(net of deferred taxation) 0 0 0 0 0 149,556 149,556 128,692 278,248
sale of white sugar and its Mills and Registered Office are located at Takht-i-Bhai,
depreciation for the half year 0 0 (149,556) 0 0 0 (149,556) (128,692) (278,248) Mardan (Khyber Pakhtunkhwa). FSM is a Subsidiary of The Premier Sugar Mills &
Balance as at March 31, 2020 37,500 1 2,297,588 1,010,537 0 886,924 4,232,550 3,211,221 7,443,771 Distillery Company Ltd.
Theannexed
The annexed notes
notes form formpart
an integral anofintegral part ofcondensed
these consolidated these consolidated condensed
interim financial statements. interim financial statements. FSM has been suffering losses over the years and during the current period and prior
years had not carried-out manufacturing operations due to non-availability of raw
materials. The management, however, anticipates that manufacturing operations will
resume in the foreseeable future as necessary steps are being taken to ensure smooth
supplies of sugar cane to FSM. The condensed interim financial statements of FSM,
DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER therefore, have been prepared on the 'going concern basis'.
26 27
(c) Delisting of FSM 4.1 Amendments to IAS 19, ‘Employee benefits’ on plan amendment, curtailment or
The Holding Company, the majority shareholder of FSM, had decided to purchase all the settlement’ are effective for periods beginning on or after January 01, 2019. These
ordinary and preference shares of FSM held by Others. The shareholders of FSM had amendments require an entity to use updated assumptions to determine current service
passed a special resolution for de-listing of FSM from the Stock Exchanges at the annual cost and net interest for the remainder of the period after a plan amendment, curtailment
general meeting held on January 30, 2010. The shareholders also passed a special or settlement; and recognise in statement of profit or loss as part of past service cost, or a
resolution for purchase of 263,134 ordinary shares at a price of Rs.190.20 per share and gain or loss on settlement, any reduction in a surplus, even if that surplus was not
26,970 preference shares at a price of Rs.18.60 per share by the Holding Company in the previously recognised because of the impact of the asset ceiling. The amendments do not
extra ordinary general meeting held on June 10, 2010. have any material impact on the Group’s consolidated condensed interim financial
statements.
The purchase agent of the Holding Company (Invest Capital Investment Bank Ltd.) had
completed the buying of 36,209 ordinary shares and 150 preference shares within the 4.2 IAS 23, 'Borrowing costs' is effective for accounting periods beginning on or after
initial period of 60 days and after the submission of an undertaking to the Stock January 01, 2019. The amendment is part of the annual improvement 2015-2017 cycle.
Exchanges to purchase the remaining shares upto August 26, 2011, FSM was de-listed The amendment clarifies that the general borrowings pool used to calculate eligible
from all the Stock Exchanges with effect from October 25, 2010. The purchase agent, borrowing costs exclude only borrowings that specifically finance qualifying assets that
during the financial year ended September 30, 2011, had further purchased 19,884 are still under development or construction. Borrowings that were intended to specifically
ordinary shares and 20,014 preference shares. finance qualifying assets that are now ready for their intended use or sale - or any non-
1.3 In recent weeks, Pakistan has enacted protection measures against COVID - 19 with a qualifying assets - are included in that general pool. The amendments do not have any
significant impact on daily life and supply chain of goods. The evolution of COVID - 19 as material impact on the Group’s consolidated condensed interim financial statements.
well as its impact on Pakistan economy is hard to predict at this stage. The management
4.3 IFRIC 23, ‘Uncertainty over income tax treatments’ is effective for accounting periods
is monitoring the situation to ensure safety of its workers by introducing fool proof anti
beginning on or after January 01, 2019. This IFRIC clarifies how the recognition and
COVID - 19 measures and smooth operation of its business.
measurement requirements of IAS 12 ‘Income taxes’, are applied where there is
As of the release date of these consolidated condensed interim financial statements, there uncertainty over income tax treatments. The IFRIC explains how to recognise and
has been no specifically material quantifiable impact of COVID - 19 on the Group's measure deferred and current income tax assets and liabilities where there is uncertainty
financial condition or results of its operations. over a tax treatment. An uncertain tax treatment is any tax treatment applied by an entity
The Group, being engaged in production of food item, comes under the exemption given where there is uncertainty over whether that treatment will be accepted by the tax
by the Government of KPK vide its Notification dated March 24, 2020. authority. The IFRIC applies to all aspects of income tax accounting where there is an
uncertainty regarding the treatment of an item, including taxable profit or loss, the tax
2. Basis of preparation
bases of assets and liabilities, tax losses and credits and tax rates. The amendments do
These consolidated condensed interim financial statements have been prepared in not have any material impact on the Group's consolidated condensed interim financial
accordance with the accounting and reporting standards as applicable in Pakistan for statements.
interim financial reporting. The accounting and reporting standards as applicable in
Pakistan for interim financial reporting comprise of: 4.4 The Group has adopted IFRS 16, 'Leases' with effect from October 01, 2019, which
- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by replaces existing guidance on accounting for leases, including lAS 17 'Leases', IFRIC 4
the International Accounting Standards Board (IASB) as notified under the 'Determining whether an Arrangement contains a Lease', SIC-15 'Operating Leases -
Companies Act, 2017; and Incentive' and SIC-27 'Evaluating the substance of transactions involving the legal form of
a Lease'. IFRS 16 introduces a single, on-balance sheet lease accounting model for
- Provisions of and directives issued under the Companies Act, 2017. lessees. A lessee recognises a right-of-use asset representing its right-of-use of the
Where1 the provisions of and directives issued under the Companies Act, 2017 differ with underlying asset and a lease liability representing its obligations to make lease payments.
the requirements of IAS 34, the provisions of and directives issued under the Companies Lessor accounting remains similar to the current standard i.e. lessors continue to classify
Act, 2017 have been followed. leases as finance or operating leases. The accounting polices relating to Group's right-of-
use assets and lease liabilities are as follows:
3. Significant accounting policies
The accounting policies and methods of computation adopted in the preparation of these Lease liabilities and right-of-use assets
consolidated condensed interim financial statements are the same as those applied in the At the inception of a contract, the Group assesses whether a contract is, or contains, a
preparation of preceding consolidated financial statements of the Group for the year lease based on whether the contract conveys the right to control the use of an identified
ended September 30, 2019 except for the adoption of new standards as set-out below. asset for a period of time in exchange for consideration. Lease terms are negotiated on an
individual basis and contain a wide range of different terms and conditions.
4. Standards, amendments to published standards and interpretations that are
effective in the current period Effective from October 01, 2019, leases are recognised as right-of-use assets and
corresponding liabilities at the date at which the leased assets are available for use by the
Certain standards, amendments and interpretations to IFRSs are effective for accounting
Group.
periods beginning on October 01, 2019 but are considered not to be relevant or to have
any significant effect on the Group’s operations (although they may affect the accounting The lease liabilities are initially measured at the present value of the remaining lease
for future transactions and events) and are, therefore, not detailed in these consolidated payments at the commencement date, discounted using the interest rate implicit in the
condensed interim financial statements, except for the following: lease, or if that rate cannot be readily determined, the Group's incremental borrowing rate.
28 29
Lease payments include fixed payments, variable lease payments that are based on an The change in accounting policy affected the classification of following items in the
index or a rate, amounts expected to be payable by the lessee under residual value statement of financial position on October 01, 2019:
guarantees, the exercise price of a purchase option if the lessee is reasonably certain to
exercise that option, payments of penalties for terminating the lease, if the lease term As
Impact of
reflects the lessee exercising that option, less any lease incentives receivable. The originally Restated
IFRS 16
extension and termination options are incorporated in determination of lease term only presented
when the Group is reasonably certain to exercise these options. -----Rupees in thousand-----
The lease liabilities are subsequently measured at amortised cost using the effective Non-current Assets:
interest rate method. They are remeasured when there is a change in future lease Property, plant and equipment:
payments arising from a change in fixed lease payments or an index or rate, change in the
Leased vehicles 151,113 (151,113) 0
Group's estimate of the amount expected to be payable under a residual value guarantee,
or if the Group changes its assessment of whether it will exercise a purchase, extension Right of use assets 0 180,929 180,929
or termination option. The corresponding adjustment is made to the carrying amount of Current Assets:
the respective right-of-use asset, or is recorded in the statement of profit or loss if the
carrying amount of that right-of-use asset has been reduced to zero. Short-term prepayments 9,240 (9,240) 0
Right-of-use assets are initially measured based on the initial amount of the lease Non-current Liabilities
liabilities adjusted for any lease payments made at or before the commencement date, Lease liabilities (97,253) (17,446) (114,699)
plus any initial direct costs incurred and an estimate of costs to dismantle and remove the
underlying asset or to restore the underlying asset or the site on which it is located, less Current Liabilities
any lease incentive received. The right-of-use assets are depreciated on a straight line Lease liabilities (43,482) (12,370) (55,852)
method over the lease term as this method most closely reflects the expected pattern of
consumption of future economic benefits. The recognised right-of-assets relate to following type of assets:
Un-audited Audited
The Group has adopted IFRS 16 retrospectively, effective from October 01, 2019, but has
March 31, September
not restated comparatives for prior reporting period, as permitted under the specific
2020 30, 2019
transitional provisions in the standard. The cumulative impact of adoption of this standard
Rupees in thousand
is, therefore, recognised in current period in the statement of financial position with effect
from October 01, 2019. Vehicles 172,431 0
On adoption of IFRS 16, the Group recognised lease liabilities which had previously been
Plant and machinery 30,194 0
classified as 'operating leases' under the principles of lAS 17 Leases. These liabilities
were measured at the present value of the remaining lease payments, discounted using Buildings 22,660 0
the lessee's incremental borrowing rate as of October 01, 2019. The weighted average 225,285
Total right-of-use assets 0
lessee's incremental borrowing rate applied to the lease liabilities on October 01, 2019
was 14.5% per annum. The following summary reconciles the Group's operating leases at September 30, 2019 to
In the previous year, the Group only recognised lease assets and lease liabilities in the lease liabilities recognised on initial application of IFRS 16 at October 01, 2019.
relation to leases that were classified as 'finance leases' under lAS 17 Leases. The assets Rupees
Rupees inin
were presented in property, plant and equipment and the liabilities as part of the Group's thousand
thousand
liabilities. On adoption of IFRS 16, the carrying amount of the right-of-use assets and the Operating leases as at September 30, 2019 62,402
lease liabilities at the date of initial application is the carrying amount of the lease assets
Discounted using the lessee's incremental borrowing rate
and lease liabilities immediately before that date measured applying lAS 17. For such
at the date of initial application 3,448
leases, the Group recognises right-of-use assets and the lease liabilities applying this
Standard from the date of initial application. (Less): short-term leases recognised on a straight-line basis as expense 29,138
In applying IFRS 16 for the first time, the Group has used the following practical (Less): low value leases recognised on a straight line basis as expense 0
expedients permitted by the standard:
Lease liabilities recognised as at October 01, 2019 29,816
- the accounting for operating leases with a remaining lease term of less than 12
months as at October 01, 2019 as short term leases; Of which are:
- the use of hindsight in determining the lease term where contract contains option to 12,370
Current lease liabilities
extend or terminate the lease; and
- the exclusion of initial direct costs for the measurement of the right-of-use assets at Non-current lease liabilities 17,446
the date of initial application. 29,816
30 31
The statement of profit or loss shows the following amounts relating to leases: 8. Property, plant and equipment Un-audited Audited
Un-audited March 31, September 30,
March 31, 2020 2019
2020 Note (Rupees in thousand)
Rupees in
thousand Operating fixed assets - tangible 8.1 9,895,576 10,045,946
Interest expense on lease liabilities 10,755

Capital work-in-progress 8.2 695,865 522,459
Expense related to short term leases 22,725
Expense related to leases of low value assets 0
10,591,441 10,568,405
5. These consolidated condensed interim financial statements are being submitted to
the shareholders as required by provisions of the Companies Act, 2017. These 8.1 Operating fixed assets - tangible
consolidated condensed interim financial statements do not include all the information and
disclosures as required in the consolidated annual financial statements and should be Book value at beginning of the period - audited 10,045,946
read in conjunction with the Group's consolidated financial statements for the year ended
September 30, 2019. Additions during the period:
6. Accounting estimates, judgments and financial risk management
- buildings and roads 36,357
6.1 The preparation of consolidated condensed interim financial statements in conformity with
approved accounting standards requires management to make estimates, assumptions - plant and machinery 344,843
and use judgments that affect the application of policies and reported amounts of assets
and liabilities and income and expenses. Estimates, assumptions and judgments are - electric installations 33,778
continually evaluated and are based on historical experience and other factors, including
reasonable expectations of future events. Revisions to accounting estimates are - furniture, fixtures and office equipment 6,966
recognised prospectively commencing from the period of revision.
6.2 Judgments and estimates made by the management in the preparation of these - vehicles-owned 4,932
6.2 Judgments
consolidatedand estimates
condensed madefinancial
interim by the statements
management are inthethe preparation
same as those ofthat
these
were
consolidated condensed interim financial statements are the same as those that were
applied to consolidated financial statements as at and for the year ended September 30, 426,876
applied to consolidated financial statements as at and for the year ended September 30,
2019.
2019.
6.3 The
The Group's
Group's financial
financial risk
risk management
management objectives
objectives and
and policies
policiesare
areconsistent
consistentwith
withthose
those Book value of operating fixed assets
6.3
disclosed in the consolidated financial statements as at and for the year ended disposed-off during the period (4,869)
disclosed in the consolidated financial statements as at and for the year ended
September 30, 2019.
September 30, 2019.
6.4 The Holding Company follows the practice of conducting actuarial valuation annually at Depreciation charge for the period (426,113)
the year-end. Hence, the impact of remeasurement of staff retirement benefits - gratuity
has not been incorporated in the books of account of the Holding Company. Transfer to right-of-use assets (4,522)
7. Principles of consolidation
Impact of adoption of IFRS 16 (146,591)
These consolidated condensed interim financial statements include the condensed interim
financial statements of the Holding Company, consolidated condensed interim financial Transfer from right-of-use assets 9 4,849
statements of CSML & its Subsidiary Company and the condensed interim financial
statements of FSM as at and for the period ended March 31, 2020. The Holding
Book value at end of the period - un-audited 9,895,576
Company's direct interest, as at March 31, 2020, in CSML was 47.93% (2019: 47.93%)
and in FSM was 82.49% (2019: 82.49%).
8.2 Capital work-in-progress
Investments in Associated Companies, as defined in the Companies Act, 2017, are
accounted for by the equity method. At beginning of the period / year 522,459 472,983
Non-controlling interest is calculated on the basis of their proportionate share in the net
assets of the Subsidiary Companies. Add: Additions during the period / year 8.3 656,742 994,781
Subsidiary is fully consolidated from the date on which control is transferred to the Group Less: Capitalised during the period / year (483,336) (733,097)
and deconsolidated from the date on which control ceases.
All significant inter-company transactions, balances, income and expenses on Less: Adjustment against long term loan -PSML 0 (212,208)
transactions between Group Companies are eliminated. Profits and losses resulting from
inter-company transactions that are recognised in assets are also eliminated.
Balance at end of the period / year 695,865 522,459
32 33
Un-audited
March 31, 12. Stock-in-trade Un-audited Audited
2020 March 31, September 30,
Rupees in 2020 2019
thousand (Rupees in thousand)
8.3 Additions during the period Finished goods:
Buildings on freehold land 77,327 - sugar 5,501,613 1,688,849
Plant and machinery 441,173 - molasses 1,944,899 333,242
Electric installations 25,724 110,948
- ethanol 324,679
Office equipment 7,792
7,771,191 2,133,039
Leased vehicles 32,282
Work-in-process 17,523 12,143
Leased plant and machinery 132
7,788,714 2,145,182
Advances to contractors 72,312
13. Trade deposits, short term prepayments and other receivables
656,742
Sugar export subsidy receivable 308,510 308,510
9. Right-of-use assets
Opening book value 0 Prepayments 8,902 6,312
Transfer from operating fixed assets 4,522 Excise duty deposits 136 136
Impact of adoption of IFRS 16 176,407
Gas infrastructure development cess
Additions during the period 73,702
paid under protest - refundable 3,018 3,018
Transfer to owned assets 8.1 (4,849)
Lease rentals receivable from an Associated
charge for
Depreciation charged forthe
theperiod
period (24,497)
Company ( Premier Board Mills Ltd.) 1,677 3,127
Book value
Book value at
at end
end of
of the
the period
period 225,285
225,285 Guarantees issued 19,000 19,000
10. Long term investments Trade deposits 2,480 33
Investments in equity instruments Letters of credit 0 9,726
of Associated Companies
Other receivables 3,986 3,237
Balance at beginning of the period - cost 5,638
347,709 353,099
Add: post acquisition profit brought forward 104,635
110,273 14. Short term investments - At fair value through profit or loss
Add: share for the period: First Habib Cash Fund
- profit 1,658
Opening balance - 284,785 Units (2019: 127,050 Units) 28,837 12,939
- other comprehensive income 162
Investments made during the period / year - Nil Units
- items directly credited in equity (212)
(2019: 209,330 Units) 0 21,000
Less: taxation (48)
1,560 Gain on redemption / re-measurement to fair value 1,756 1,898
Balance at end of the period 111,833 Bonus received during the period / year - 14,570 Units
(2019: 17,656 Units) 0 0
11. Stores and spares
FSM has not carried-out manufacturing operations during the current period and prior Units redeemed during the period / year - 53,404 Units
years and in the absence of an exercise to identify obsolete / damaged stores and spares (2019: 69,251 Units) (5,400) (7,000)
inventory, carrying values of the period-end stores and spares inventory amounting
Rs.32.328 million have not been adjusted for any potential impairment loss. Withholding tax (258) 0
11.1 Stores and spares include items which may result in fixed capital expenditure but are not Closing balance - 245,951 Units (2019: 284,785Units) 24,935 28,837
distinguishable.
34 35
15. Cash and bank balances
16. Long term finances - secured Un-audited Audited
15.1 Period-end bank balances include deposits aggregating Rs.20 million (September 30, March 31, September 30,
2019: Rs.5 million), which are under lien of a bank against guarantees issued by it in 2020 2019
favour of Sui Northern Gas Pipelines Ltd. on behalf of the Holding Company. Note (Rupees in thousand)
Bank Al-Habib Ltd. 223,944 297,710
15.2 (a) Period-end bank balances include deposits aggregating Rs.58 million of the Holding
Soneri Bank Ltd. 706,868 538,852
Company and FSM lying with Innovative Investment Bank Ltd. (IIBL), Islamabad
carrying profit at the rate of 5% per annum. The maturity dates of these deposits The Bank of Punjab 58,239 103,166
were as follows: Dubai Islamic Bank Pakistan Ltd. 584,959 682,452
MCB Bank Ltd. 277,029 291,313
Amount of
Date of maturity 16.1 1,851,039 1,913,493
deposit
Rupees in Less: amounts payable within next 12 months
grouped under current liabilities - principal 490,710 579,813
thousand
Less: deferred benefit of below market rate
July 29, 2009 15,600
of interest on refinance facility grouped
July 29, 2010 15,600 under deferred liabilities 18 29,516 21,680
520,226 601,493
July 29, 2011 15,600
Amount due after March 31, 2021 16.2 1,330,813 1,312,000
July 29, 2012 31,200
16.1 These represent term and demand finances obtained by CSML and WFPL from the
78,000 aforementioned banks and are repayable in 3-5 years with varied grace period. The rate
of mark-up ranges from KIBOR + 1.1% per annum to KIBOR + 2% per annum and are
Less: amounts realised during the year ended September 30, 2018 (20,000) secured against first / joint pari passu hypothecation charge over all present and future
58,000 movable fixed assets of CSML and WFPL and first / joint pari passu charge by way of
equitable mortgage on all present and future immovable fixed assets of CSML and WFPL,
(b) The realisibility of these deposits is doubtful of recovery as these could not be pledge of sugar stocks and lien on export contract / LC.
encashed on their respective maturity dates; further, period-end balance 16.2 In case of various loan arrangements, the concerned lenders have waived the
confirmation certificates from IIBL were also not received. The Securities and requirements of certain covenants of the respective loan agreements. Accordingly, the
Exchange Commission of Pakistan (SECP), in exercise of its powers conferred liabilities under those loan agreements have been classified as per the repayment
under sections 282 E & F of the repealed Companies Ordinance, 1984, had schedule applicable in respect of the respective loan agreements.
superseded the entire Board of Directors of IIBL and appointed an Administrator with 17. Loans from related parties - secured
effect from January 28, 2010. SECP had also instituted winding-up proceedings
Premier Board Mills Ltd. 17.1 90,575 65,575
against IIBL before the Lahore High Court, Lahore (LHC).
Arpak International Investments Ltd. 17.2 43,750 43,750
(c) The SECP winding-up petition has been decided by the LHC and LHC has Azlak Enterprises (Pvt.) Ltd. 17.3 85,000 85,000
appointed Joint Official Liquidator (JOL). The LHC, vide its order dated April 14,
2018 has approved release of payment upto Rs.20 million in respect of principal 219,325 194,325
amount only subject to verification as per the laws. The amounts of Rs.20 million, as Less: current portion grouped under current liabilities (12,500) 31,236
per the LHC order, have been received by the Group during August, 2018. The
206,825 163,089
management, for the release of further amount, anticipates that JOL will intimate in
due course of time; no provision, therefore, for the remaining deposits aggregating 17.1 The principal repayments are restructured during the current period and the principal is
Rs.58 million has been made in the books of account of the Holding Company and now repayable in 7 semi annual instalments commencing November 2022. The rate of
FSM. mark-up is one month KIBOR + 1.25%, provided the mark-up charged by the associated
company is not less than its borrowing cost.
(d) The Group has not accrued profit on these deposits during the current period as
17.2 The principal repayments are restructured during the current period and the principal is
well as preceding financial years.
now repayable in 7 semi annual instalments commencing November 2022. The rate of
15.3 There has been no change in the status of matter as detailed in note 17.6 to the mark-up is one month KIBOR + 1.25%, provided the mark-up charged by the associated
consolidated financial statements of the Group for the year ended September 30, 2019. company is not less than its borrowing cost.
17.3 The principal is repayable in 8 semi annual instalments commencing December 2021.
The rate of mark-up is one month KIBOR + 1.25%, provided the mark-up charged by the
associated company is not less than its borrowing cost.
36 37
18. Deferred liabilities Un-audited Audited 20. Current portion of non-current liabilities Un-audited Audited
March 31, September 30, March 31, September 30,
Deferred taxation 2020 2019 2020 2019
Note (Rupees in thousand) Note (Rupees in thousand)
- The Holding Company 1,473 14,352 Long term finances 16 490,710 579,813
Loans from related parties 17 12,500 31,236
- CSML 945,292 1,050,320
Lease liabilities 50,596 43,482
946,765 1,064,672
Staff retirement benefits - gratuity 553,806 654,531
- The Holding Company 16,561 15,139
- FSM 178 178 21. Taxation
- CSML 7,689 6,582 The Holding Company
24,428 21,899 21.1 Provision for the current period represents tax due under sections 5 (Tax on dividends)
Deferred benefit of below market rate and 113 (Minimum tax on the income of certain persons) of the Income Tax Ordinance,
of interest on refinance facility 16 29,516 21,680 2001 (the Ordinance).
21.2 The Holding Company has filed a writ petition before the Peshawar High Court (PHC)
1,000,709 1,108,251
against selection for audit under sections 177 and 214C of the Ordinance; the PHC has
stayed the Income Tax Department from finalising the proceedings. The petition is
19. Trade and other payables pending adjudication.
Creditors 1,203,946 251,054 22. Contingencies and commitments
Bills payable 1,846 3,171
The Holding Company
Due to Associated Companies 19.1 58,738 19,145
22.1 No commitments were outstanding as at March 31, 2020 and September 30, 2019.
Accrued expenses 111,072 78,033
22.2 The Holding Company's appeal filed before the Peshawar High Court (PHC) against
Retention money 20,595 13,981 order of the Customs, Sales Tax & Central Excise Appellate Tribunal is still pending
Security deposits 985 2,070 adjudication. The Department, during the financial year ended September 30, 2001, had
raised sales tax demand aggregating Rs.4.336 million along with additional tax. The
Advances from customers 498,746 275,407 Holding Company, however, during the financial year ended September 30, 2005, had
Income tax deducted at source 52,416 23,127 paid sales tax amounting Rs.2.123 million along with additional tax amounting Rs.0.658
Sales tax payable 379,890 24,007 million as per the requirements of S.R.O. 247(I) / 2004 dated May 05, 2004.
Gratuity payable to ex-employees 5,139 5,139 22.3 The Holding Company's petition filed before the Supreme Court of Pakistan (SCP)
against imposition of Gas Infrastructure Development Cess (GIDC) is still pending
Advance received against sale of scrap 2,024 2,024 adjudication. Sui Northern Gas Pipelines Ltd., along with gas bills for the month of March,
Payable for workers' welfare obligations 61,809 46,537 2020, has raised GIDC demands aggregating Rs.84.598 million, which are payable in
case of an adverse judgment by the SCP. No provision for these GIDC demands has
Workers' (profit) participation fund 1,625 0
been made in the books of account as the management expects a favourable judgment by
Payable to provident fund 3,212 2,955 the SCP due to meritorious legal grounds.
Payable to employees 42,102 35,535 22.4 The Holding Company's petition filed before the SCP against judgment dated October
24, 2019 passed by the PHC in the writ petition is pending adjudication. The said writ
Others 3,078 5,613
petition was filed challenging the demand of further tax on supplies to unregistered
2,447,223 787,798 persons under section 3 (1A) of the Sales Tax Act, 1990 through show cause
notice dated October 03, 2018.
19.1 This represents amounts due to:
- Azlak Enterprises (Pvt.) Ltd. 24,442 18,202 22.5 The Holding Company's petition filed before the PHC against the Government of Khyber
Pakhtunkhwa's notification dated August 12, 2015 in which minimum wages for unskilled
- Syntronics Ltd. 8,122 943
workers has been fixed at Rs.12,000 per month with effect from July 01, 2014 has been
- Syntron Ltd. 26,036 0 dismissed by the PHC vide its judgment dated April 02, 2019. The PHC has observed that
- Phipson & Company Pakistan (Pvt.) Ltd. 138 0 the Holding Company cannot challenge the revised rate of Rs.12,000 as it was fixed at its
wish and will in line with rest of the country. The additional wage liabilities aggregate
58,738 19,145
Rs.2.359 million approximately.
38 39
22.6 A sales tax appeal is pending before the Commissioner Inland Revenue (Appeals) 23. Other income Un-audited
[CIR(A)], Peshawar against assessment order dated June 28, 2016 passed by the Deputy Half year ended
Commissioner Inland Revenue [DCIR], Peshawar regarding the alleged stock taking to March 31, March 31,
the tune of Rs.5.592 million recoverable under section 14 of the Federal Excise Act, 2005. 2020 2019
Income from financial assets: Note (Rupees in thousand)
22.7 The sales tax appeal filed before the Appellate Tribunal Inland Revenue (ATIR), Profit on bank deposits and saving accounts 3,879 3,127
Peshawar against ex-parte order passed by the CIR(A) has been succeeded vide order
dated March 29, 2018. The assessment order dated June 23, 2016 was passed by the Gain on redemption and remeasurement of
DCIR, Peshawar in violation of SRO 488(I)/2004 dated June 12, 2014; the Holding short term investments to fair value 1,756 372
Company claimed input tax to the tune of Rs.41.672 million against the supplies to Exchange fluctuation gain 0 15,768
unregistered persons. A withdrawal application has been filed before the ATIR, Peshawar
in pursuance of the aforesaid rectification order. Dividend 229 609
Income from other than financial assets:
22.8 The CIR(A) vide his order dated March 03, 2019 has vacated the demand of Rs.31.798
million created vide impugned assessment order dated January 31, 2019 under section Rent from - an Associated Company 3,355 3,355
11(2) of the Sales Tax Act, 1990. - other 0 134
22.9 The DCIR for the tax year 2013 initially has held the Holding Company as taxpayer-in- Sale of scrap 671 16,176
default for non-deduction of tax on certain supplies / services and tax demand was raised
Sale of press mud - net 11,335 6,433
at Rs.77.750 million under section 161 (Failure to pay tax collected or deducted) along
with default surcharge of Rs.4.730 million under section 205 (Default surcharge) of the Unclaimed payable balances written-back 552 1,165
Income Tax Ordinance, 2001 (the Ordinance). The Holding Company filed rectification Gain on sale of operating fixed assets 1,669 2,244
application under section 221 of the Ordinance and the demand was reduced to
Rs.237,360. Against the said demand, the Holding Company has filed an appeal before Sale of seeds, agricultural produce and
the CIR(A), who dismissed the Holding Company's appeal. Presently, the Holding gain on sale of fertilizer / pesticide 11,023 5,473
Company's appeal against the CIR(A)'s order is pending before the ATIR, Peshawar. Sale of fusel oil - net 999 696
22.10 Guarantees given to Sui Northern Gas Pipelines Ltd. by a commercial bank on behalf of Miscellaneous 187 5
the Holding Company outstanding as at March 31, 2020 were for Rs.20 million (2019: 35,655 55,557
Rs.20 million).These guarantees are valid upto November 30, 2020. 24. Other expenses
FSM Donations-without directors' interest 545 218
22.11 There has been no significant change in the status of contingencies as disclosed in notes Uncollectible receivable balances written-off 30 7
29.10 to 29.12 to the audited consolidated financial statements of the Group for the year Workers' (profit) participation fund 12,773 1,635
ended September 30, 2019.
Income tax paid of prior years under section 236G of
CSML the Income Tax Ordinance, 2001 (Advance tax
on sales to distributors, dealers and wholesalers) 0 2,755
22.12 There has been no significant change in the status of contingencies as disclosed in notes
29.14 to 29.22 to the audited consolidated financial statements of the Group for the year Workers' (welfare) fund 5,015 0
ended September 30, 2019.
Sales tax arrears paid 922 0
22.13 Commitments Un-audited Audited Others 0 8,460
March 31, September 30,
2020 2019 19,285 13,075
Commitments in respect of : (Rupees in thousand)
25. FSM, during the preceding period, had sold all the shares of Ibrahim Fibres Limited
- foreign letters of credit for purchase of plant & machinery 0 79,403 against aggregate consideration of Rs.25.768 million. Gain arisen on these sales
aggregating Rs.20.088 million was credited to consolidated condensed interim statement
- local letters of credit for purchase of plant & machinery 69,031 0 of profit or loss.
- capital expenditure other than for letters of credit 59,687 94,034
40 41
26.1 Segment assets and liabilities of CSM
Un-audited Audited
March 31, 2020 September 30, 2019
------------------- Rupees in thousand ----------------
Assets Liabilities Assets Liabilities
Sugar 14,201,927 9,235,235 9,263,004 3,283,262
Ethanol 5,402,282 2,558,689 4,263,337 2,403,240
Total for reportable segment 19,604,209 11,793,924 13,526,341 5,686,502
Others 0 1,443,109 0 1,518,380
CSM's total assets / liabilities 19,604,209 13,237,033 13,526,341 7,204,882
27. Transactions with related parties
27.1 The Group has related party relationship with its Associated Companies, employee
benefit plans, its directors and key management personnel. Transactions with related
parties are carried-out on arm's length basis. There were no transactions with key
management personnel other than under the terms of employment. Aggregate
transactions with Associated Companies during the period were as follows:
Un-audited
Half year ended
March 31, March 31,
2020 2019
(Rupees in thousand)
- services 14,787 13,157
- expenses paid by Associated Companies 60,714 251
- purchase of goods 88,733 137,768
- expenses paid on behalf of Associated Companies 992 0
- dividend paid 26,804 8,041
- rent received 3,355 3,355
- dividend received 229 0
- post employment benefit -

expense charged in respect of retirement benefit plan 1,563 1,300
- key management personnel -

salaries and other benefits 67,564 31,419
27.2 Receivables from and payables to Associated Companies have been disclosed in notes
13, 17 and 19 respectively to these consolidated condensed interim financial statements.
27.3 Return has not been charged on the current account balances of Associated Companies
as these have arisen due to normal trade dealings.
28. Corresponding figures

In order to comply with the requirements of IAS 34 'Interim financial reporting', the
consolidated condensed interim statement of financial position has been compared with
the balances of annual audited consolidated financial statements of the preceding
financial year, whereas, consolidated condensed interim statement of profit or loss,
consolidated condensed interim statement of other comprehensive income, consolidated
condensed interim statement of cash flows and consolidated condensed interim statement
of changes in equity have been compared with the balances of comparable period of the
immediately preceding financial year.
42 43
29. Date of authorisation for issue
These consolidated condensed interim financial statements were approved and

authorised for issue by the Board of Directors of the Holding Company on June 26, 2020.
.
DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER
44

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MARCH 31, 2020

REPLY TO AUDITORS' OBSERVATION (NOTE 12.2)

Shares Registrar EFFECT OF COVID-19

Registered Office Mardan: (AZIZ SARFARAZ KHAN) (ISKANDER M. KHAN)

SHINEWING HAMEED CHAUDHRI & CO.,

- Provisions of and directives issued under the Companies Act, 2017.

Right-of-use assets 7.2 6,615 0 (Rupees in thousand)

Sugar-in-process 6,844 3,003

Less: instalment received during the period 24,848 Amount of

Employees' provident fund payable 434 357

- purchase of goods 8,364 8,844

These unconsolidated condensed interim financial statements were approved and

DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER

THE PREMIER SUGAR MILLS

CONSOLIDATED CONDENSED INTERIM

Interest expense on lease liabilities 10,755

- capital expenditure other than for letters of credit 59,687 94,034

27. Transactions with related parties

- services 14,787 13,157

- expenses paid by Associated Companies 60,714 251

- purchase of goods 88,733 137,768

- expenses paid on behalf of Associated Companies 992 0

- dividend paid 26,804 8,041

- rent received 3,355 3,355

- dividend received 229 0

- post employment benefit -

- key management personnel -

28. Corresponding figures

These consolidated condensed interim financial statements were approved and

DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER

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