contents year-ended 31 mar 18.pdf · 2018. 5. 30. · auditor’s report to the members on review...

ContentsCompany ReviewCorporate Information .................................................................................02Directors’ Review ...........................................................................................04

Condensed Interim Unconsolidated Financial InformationAuditor’s Report to the Members on Review of Interim Financial Information .................................................................................10Condensed Interim Unconsolidated Statement of Financial Position................................................................11Condensed Interim Unconsolidated Profit & Loss Account ...............................................................................12Condensed Interim Unconsolidated Statement of Comprehensive Income ....................................................13Condensed Interim Unconsolidated Cash Flow Statement .................................................................................14Condensed Interim Unconsolidated Statement of Changes in Equity ...............................................................15Notes to the Condensed Interim Unconsolidated Financial Information ................................................................................16

Condensed Interim Consolidated Financial InformationDirectors’ Review on Condensed Interim Consolidated Financial Information ................................................................................30Condensed Interim Consolidated Statement of Financial Position................................................................32Condensed Interim Consolidated Profit & Loss Account ...............................................................................33Condensed Interim Consolidated Statement of Comprehensive Income ....................................................34Condensed Interim Consolidated Cash Flow Statement .................................................................................35Condensed Interim Consolidated Statement of Changes in Equity ...............................................................36Notes to the Condensed Interim Consolidated Financial Information ................................................................................37Investor’s Awareness

For the Half Year Ended 31 March 201801

Corporate Information

Board Of DirectorsMr. Jahangir Khan TareenDirector

Mukhdoom Syed Ahmed MahmudDirector / Chairman

Mr. Raheal MasudDirector / Chief Executive

Mrs. Samira Mahmud

Mr. Ijaz Ahmed

Mr. Asim Nisar Bajwa

Mr. Qasim Hussain Safdar

Chief Operating OfficerRana Nasim Ahmed

Group Director (Finance), CFO & Company SecretaryMr. Muhammad Rafique

Audit CommitteeMr. Qasim Hussain SafdarChairman / Member

Mrs. Samira MahmudMember

Mr. Ijaz AhmedMember

HR & R CommitteeMr. Ijaz AhmedChairman / Member

Mrs. Samira MahmudMember

Mr. Asim Nisar BajwaMember / Secretary

RegistrarCorplink (Pvt.) Ltd.

Unit-IMauza Shirin, Jamal Din Wali, District Rahim Yar Khan.

Unit-IIMachi Goth, Sadiqabad. District Rahim Yar Khan.

Unit-IIIMauza Laluwali, Near Village Islamabad, District Ghotki.

Mills

JDW Sugar Mills Limited02

Bankers Conventional Faysal Bank LimitedMCB Bank LimitedThe Bank of PunjabNational Bank of PakistanStandard Chartered Bank (Pakistan) LimitedAllied Bank LimitedUnited Bank LimitedAskari Bank LimitedSoneri Bank LimitedHabib Bank LimitedHabib Metropolitan Bank Limited

IslamicNational Bank of Pakistan Askari Bank Limited Bank Alfalah LimitedMCB Islamic Bank LimitedMeezan Bank LimitedDubai Islamic Bank Pakistan LimitedBankIslami (Pakistan) Limited

Web Presencewww.jdw-group.com

Registered Office17-Abid Majeed Road, Lahore Cantonment,

Lahore.

AuditorsKPMG Taseer Hadi & Co.Chartered Accountants

Legal AdvisorCornelius, Lane & Mufti


Directors’ Review

Dear Shareholders,

We, on behalf of the Board of Directors of JDW Sugar Mills Limited, are pleased to present the Condensed interim financial information of the Company for the half year ended on March 31, 2018 which has been duly reviewed by the external Auditors.

During the period under review the Company has earned profit after tax amounting to Rs. 253 million with gross sales of Rs.17,183 million as compared to net profit after tax amounting to Rs.1,729 million with gross sales of Rs.21,010 million in the same period last year.

Other salient features of the period under review are summarized below:

• For crushing season 2017-18 which concluded on different dates for all the four units the following operating results were achieved:

Operating Results 2017-18 2016-17Description Unit JDW-I JDW-II JDW-III COMBINED JDW-I JDW-II JDW-III COMBINEDSugarcane Crushed M.Tons 3,753,175 2,428,571 2,240,689 8,422,435 3,528,599 2,373,561 2,016,687 7,918,847Sugar Production M.Tons 409,507 255,879 223,325 888,711 357,733 247,926 207,747 813,406Sucrose Recovery %age 10.91 10.54 9.97 10.55 10.14 10.45 10.30 10.27Molasses Production M.Tons 177,607 127,340 110,000 414,947 154,437 110,324 83,072 347,833Molasses Recovery %age 4.73 5.24 4.91 4.93 4.38 4.65 4.12 4.39

Sugarcane crushed this time was 6% higher than last crushing season whereas increase in sugar production was 9% more which can solely be attributable to 28 bps improvement in combined sucrose recovery. Though there was increase in area under cultivation but due to low yield per acre experienced by the growers the expected increase in cane crushing about 15% could not be achieved. Inadequate rains was the main reason which resulted in low yield per acre this time. Sucrose recoveries of unit-I and II were better than last season whereas reduction in recovery for unit-III was due to pest attack on the sugarcane crop.

• Deharki Sugar Mills (Pvt) Ltd. (DSML) being wholly owned subsidiary of the Company has achieved the following operating results during crushing season 2017-18.

2017-18 2016-17Sugarcane Crushed M.Tons 1,890,612 1,950,674Sugar Production M.Tons 205,788 205,041Sucrose Recovery %age 10.89 10.51Molasses Production M.Tons 77,701 81,187Molasses Recovery %age 4.11 4.16

Financial Results (unconsolidated)

31-Mar-18 31-Mar-17Gross Sales Rs. in million 17,183 21,010Gross Profit Rs. in million 348 3,754Gross Profit Ratio % age 2 19Profit After Tax Rs. in million 253 1,729 Earnings Per Share Rs. 4.24 28.92

• Gross sales of the Company in the current period was Rs. 17.183 billion as compared to corresponding period of Rs. 21.01 billion, the gross sales declined by 18% even after selling almost similar quantity of sugar in the current period due to decrease in average selling prices of sugar and molasses. Company earned profit after tax amounting to Rs. 253 million as compared to profit after tax of Rs. 1,729 million in the corresponding period, resultantly earnings per share has reduced from Rs. 28.92 to Rs. 4.24. Our group units have paid support prices of sugarcane in the Province of Punjab and notified prices in the Province of Sindh. Moreover, sugar sale rate fixed by FBR for sales tax purposes is much higher than the actual market price had also adversely affected our profitability in the current period. In these adverse circumstances for sugar industry, where industry projects heavy losses our Company has been able to escape negative results because of better sucrose recovery achieved and comparatively more working days for co-generation plants.

• Increase in selling expenses is attributable to freight on sugar export and substantial increase in other income is due to accrual of sugar export subsidy on exports made by the Company.


• There has been an increase of Rs. 123 million in the financial charges of the Company as compared to corresponding period due to more utilization of working capital lines in the current period to meet its working capital requirements and 50 bps increase in the base rate by the State Bank of Pakistan.

• The balance sheet size has increased to Rs. 66 billion from Rs. 35 billion. Accumulated reserves are approximately 13 times of the paid up capital of the Company.

• In view of the above referred financial results all key financial covenants’ have shown slight deterioration as compared to comparative period and year end financial results of 30 September 2017. The Company is fulfilling it’s all financial obligations on time and enjoys cordial relationship with all the financial institutions it’s dealing with.

• Honorable Sindh High Court had provided relief to the Mills in Sindh by reducing the sugarcane purchase rate from Rs. 182 per 40 kgs to Rs. 172 per 40 kgs from 23 December, 2017 for the crushing season 2017-18 through its order C.P.No.D-8666 of 2017. On 30 January 2018, Honorable Sindh High Court had further reduced the rate from Rs. 172 per 40 kgs to Rs. 160 per 40 kgs for the crushing season 2017-18 through its final order C.P. No.D-8666 of 2017, 7951 of 2017, 219 of 2018 and 440 of 2018 and stands modified the earlier order of December 2017. The group has strictly followed court orders for purchase and payment of sugarcane for its units located in the Province of Sindh.

• In view of the expected higher sugar production in the country the Federal Govt. has allowed

in December 2017 export of 1,500,000 tons of sugar for crushing season 2017-18 with freight support of Rs. 10.70/kg subject to the condition that the said amount of freight support will be given on a sliding scale between the international price of US$376/MT and $499/MT, i.e. once the price reaches at the level of $499/MT in international market, the State Bank of Pakistan would affect the stoppage of the freight support. Freight support will be shared by federal and provincial government on 50:50 basis. Company on group basis has made export of 191,098 tons of sugar up to 21 May 2018 but has not received even a single penny on account of subsidy from SBP so far for export allocation of 1.5 million tons. On overall sugar industry basis approx. Rs. 20 Billion is stuck up on account of export subsidies which has pushed the industry in severe cash flows problems causing delays in releasing growers payments by the mills.

• To bailout the sugar industry, Sindh Government also approved in its provincial cabinet meeting an additional cash freight support of Rs. 9.30/kg on export of sugar. This relief has been restricted to export of 20,000 tons of sugar for each mills located in the province. This subsidy is in addition to its share of 50% in the cash freight support of Rs. 10.70/kg allowed by the Federal Government. Company is in the process to collect all the required documents as per notification for submission of subsidy claims.

• As usual growers’ payment has remained our top priority being one of main keys of our success but this time there has been some delays in fully settling the growers’ payments. This has happened due to stuck up of huge funds with Government on account of export subsidy & sale of energy. Collapse of sugar prices owing to surplus sugar production had also played negative role. The Honorable Supreme Court has directed on 26 April, 2018 to all the mills to make balance payment of growers at support/notified prices latest by 31 May, 2018. We are trying our best and would hopefully be able to achieve this target. We are proud of the fact that we are among few sugar mills in Pakistan which have procured sugarcane at support price in Punjab and at notified price in Sindh in such a difficult season in which there is a big mismatch between the cost of sugar and prevailing sugar prices. Company regularly provides financial and technical support to its growers. Due to these policies and preferential treatment to growers Company enjoys excellent relationship with them.

• Year under review was relatively a difficult year for the sugar industry due to surplus production, unfavorable sugar prices and no timely support from the Govt. to bailout the industry. Imposition of 15% Regulatory Duty by the previous Government on export of molasses is causing loss of approx. Rs. 1,500 to Rs. 2,000 per ton of molasses at prevailing export price of molasses to each mill having no distillery set up which is discriminately and not giving level playing field. Abolishing of Regulatory Duty on export of molasses would help the sugar industry to get better prices of molasses.

• In view of maintaining continued good performance we want to focus more on value addition of its by-products, making its processes more efficient and saving more bagasse from the system.

Lahore:22 May 2018 Chief Executive Director


CONDENSED INTERIM UNCONSOLIDATED

FINANCIAL INFORMATION (UN-AUDITED)


Auditor’s Report to the MembersON REVIEW OF INTERIM FINANCIAL INFORMATION

IntroductionWe have reviewed the accompanying condensed interim unconsolidated statement of financial position of JDW Sugar Mills Limited (“the Company”) as at 31 March 2018 and the related condensed interim unconsolidated profit and loss account, condensed interim unconsolidated statement of comprehensive income, condensed interim unconsolidated cash flow statement, condensed interim unconsolidated statement of changes in equity and notes to the accounts for the six month period then ended (here-in-after referred as the “interim financial information”). Management is responsible for the preparation and presentation of this condensed interim unconsolidated financial information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on this condensed interim unconsolidated financial information based on our review.

Scope of review We conducted our review in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity.” A review of condensed interim unconsolidated financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim unconsolidated financial information is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.

Other mattersThe figures of the condensed interim unconsolidated profit and loss account and condensed interim unconsolidated statement of comprehensive income for the quarter ended 31 March 2018, have not been reviewed and we do not express a conclusion on them.

22 May 2018 KPMG Taseer Hadi & Co.Lahore Chartered Accountants (M. Rehan Chughtai)

Telephone + 92 (42) 111 576 484Fax + 92 (42) 3742 9907Internet www.kpmg.com.pk

KPMG Taseer Hadi & Co.Chartered Accountants351 Shadman-1, Jail Road Lahore, Pakistan.

KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistanand a member firm of the KPMG network of independent memberfirms affiliated with KPMG International Cooperative(‘‘KPMG International’’), a Swiss entity


Condensed Interim Unconsolidated Statement of Financial Position (Un-audited) AS AT 31 MARCH 2018

(Un-audited) (Audited) Note 31-Mar-18 30-Sep-17 Rupees Rupees

EQUITY AND LIABILITIESSHARE CAPITAL AND RESERVES Share capital 6 597,766,610 597,766,610 Share premium reserve 678,316,928 678,316,928 Accumulated profit 7,226,707,182 7,152,880,785 8,502,790,720 8,428,964,323 NON-CURRENT LIABILITIES Redeemable capital - secured 7 – –Long term finances - secured 8 8,416,256,143 9,792,313,674 Liabilities against assets subject to finance lease - secured 9 141,536,414 153,047,674 Deferred taxation 1,895,544,612 1,818,467,413 Retirement benefits 34,663,435 29,618,756 10,488,000,604 11,793,447,517 CURRENT LIABILITIESShort term borrowings - secured 10 20,702,565,153 10,053,163,155 Current portion of non-current liabilities 3,699,053,324 3,368,757,109 Trade and other payables 11 21,941,028,707 8,310,801,726 Unclaimed dividend 34,332,107 64,248,402 Accrued profit / interest / mark-up 324,828,575 226,191,820 46,701,807,866 22,023,162,212 65,692,599,190 42,245,574,052CONTINGENCIES AND COMMITMENTS 12

ASSETSNON-CURRENT ASSETS Property, plant and equipment 13 21,602,721,569 21,058,980,010 Biological assets – 14,595,399 Intangibles 619,869,151 620,889,016 Investment property 218,599,597 218,599,597 Long term investments 14 2,308,810,383 2,303,378,840 Long term advances – 3,272,223 Long term deposits 31,356,989 54,978,065 24,781,357,689 24,274,693,150 CURRENT ASSETS Stores, spare parts and loose tools 1,793,498,215 1,412,675,360 Stock-in-trade 30,250,130,805 7,939,757,487 Biological assets 549,856,217 2,282,737,798 Trade debts - unsecured considered good 3,748,167,253 3,234,430,508 Advances, deposits, prepayments and other receivables 15 3,237,002,571 2,182,572,665 Advance tax - net 956,478,834 784,949,809 Cash and bank balances 16 376,107,606 133,757,275 40,911,241,501 17,970,880,902 65,692,599,190 42,245,574,052

The annexed notes from 1 to 25 form an integral part of this condensed interim unconsolidated financial information.

Chief Financial Officer Chief Executive Director


Condensed Interim Unconsolidated Profit and Loss Account (Un-audited) FOR THE HALF YEAR AND QUARTER ENDED 31 MARCH 2018


Six months ended Three months ended Note 31-Mar-18 31-Mar-17 31-Mar-18 31-Mar-17 Rupees Rupees Rupees Rupees

Gross sales 17,183,480,882 21,009,975,635 7,970,525,816 9,158,257,322 Sales tax and others (1,171,216,304) (1,632,519,213) (290,020,620) (615,908,898)Net sales 17 16,012,264,578 19,377,456,422 7,680,505,196 8,542,348,424 Cost of sales (15,664,048,261) (15,623,749,096) (7,466,569,750) (6,287,573,554)Gross profit 348,216,317 3,753,707,326 213,935,446 2,254,774,870 Administrative expenses (561,678,832) (688,522,342) (308,088,193) (436,418,782)Selling expenses (146,503,870) (41,563,254) (133,948,823) (31,734,333)Other income 18 1,609,486,143 208,147,190 1,268,346,536 147,779,378 Other expenses (17,393,133) (152,415,212) (17,393,133) (93,567,479) 883,910,308 (674,353,618) 808,916,387 (413,941,216)Profit from operations 1,232,126,625 3,079,353,708 1,022,851,833 1,840,833,654 Finance cost (901,657,104) (778,348,024) (510,114,257) (445,353,627)Profit before taxation 330,469,521 2,301,005,684 512,737,576 1,395,480,027 Taxation (77,313,141) (572,242,612) (219,372,405) (428,302,516)Profit after taxation 253,156,380 1,728,763,072 293,365,171 967,177,511

Earnings per share - basic and diluted 4.24 28.92 4.91 16.18




Condensed Interim Unconsolidated Statement of Comprehensive Income (Un-audited) FOR THE HALF YEAR AND QUARTER ENDED 31 MARCH 2018

Six months ended Three months ended 31-Mar-18 31-Mar-17 31-Mar-18 31-Mar-17 Rupees Rupees Rupees Rupees

Profit after taxation for the period 253,156,380 1,728,763,072 293,365,171 967,177,511 Other comprehensive income for the period – – – – Total comprehensive income for the period 253,156,380 1,728,763,072 293,365,171 967,177,511




31-Mar-18 31-Mar-17 Rupees RupeesCASH FLOW FROM OPERATING ACTIVITIES Profit before taxation 330,469,521 2,301,005,684 Adjustments for non cash and other items: Finance cost 901,657,104 778,348,024 Depreciation 688,501,235 782,106,242 Amortization 1,019,864 1,019,864 Staff retirement benefits 47,940,927 46,093,141 Workers’ profit participation fund 17,393,133 122,671,045 Assets written off 130,447 – Gain on disposal of operating fixed assets (62,197,691) (6,903,459) Fair value gain on biological assets (21,669,571) (35,747,665) Workers’ welfare fund – 29,744,168 Provision for doubtful debts – 24,716,942 Gain on disposal of investment property – (21,280,886) 1,572,775,448 1,720,767,416 Operating profit before working capital changes 1,903,244,969 4,021,773,100 (Increase) / decrease in current assets: Stores, spare parts and loose tools (380,822,855) 16,237,495 Stock-in-trade (22,310,373,318) (22,057,062,445) Biological assets 1,769,146,551 1,637,317,271 Advances, deposits, prepayments and other receivables (1,012,181,525) (1,443,265,057) Trade debts - unsecured considered good (513,736,745) (844,131,622) (22,447,967,892) (22,690,904,358)Increase in current liabilities: Trade and other payables 13,620,407,050 9,862,918,609 Cash used in operations (6,924,315,873) (8,806,212,649) Taxes paid (171,764,967) (240,071,197) Workers’ profit participation fund paid (66,885,632) (124,461,119) Staff retirement benefits paid (46,164,141) (141,157,386) (284,814,740) (505,689,702)Net cash used in operations (7,209,130,613) (9,311,902,351)CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditure (1,302,803,259) (827,480,337) Long term advances 12,027,777 14,027,777 Advances for issuance of shares (5,431,543) (13,593,901) Proceeds from sale of operating fixed assets 158,849,209 17,243,381 Long term deposits - net 23,621,076 58,443,325 Proceeds from sale of investment property – 37,437,422Net cash used in investing activities (1,113,736,740) (713,922,333) CASH FLOW FROM FINANCING ACTIVITIES Long term finances - net (1,031,915,972) (794,930,196) Short term borrowings - net 11,041,276,681 14,466,974,984 Finance cost paid (743,707,918) (519,752,175) Dividend paid (209,246,278) (888,737,458) Lease rentals paid (99,314,146) (518,166,617)Net cash generated from financing activities 8,957,092,367 11,745,388,538 Net increase in cash and cash equivalents 634,225,014 1,719,563,854 Cash and cash equivalents at beginning of the period (2,374,033,959) (2,205,907,300)Cash and cash equivalents at end of the period (1,739,808,945) (486,343,446)

Cash and cash equivalents comprise of the following: - Cash and Bank balances 376,107,606 524,997,663 - Running finances and morabaha finances (2,115,916,551) (1,011,341,109) (1,739,808,945) (486,343,446)The annexed notes from 1 to 25 form an integral part of this condensed interim unconsolidated financial information.

Condensed Interim Unconsolidated Cash flow Statement (Un-audited)FOR THE HALF YEAR ENDED 31 MARCH 2018


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Condensed Interim Unconsolidated Statement of Changes in Equity (Un-audited)FOR THE HALF YEAR ENDED 31 MARCH 2018


1 REPORTING ENTITY JDW Sugar Mills Limited (“the Company”) was incorporated in Pakistan on 31 May

1990 as a private limited company and was subsequently converted into a public limited company on 24 August 1991. Shares of the Company are listed on the Pakistan Stock Exchange Limited. The registered office of the Company is situated at 17-Abid Majeed Road, Lahore Cantonment, Lahore. The principal activity of the Company is production and sale of crystalline sugar, electricity and managing corporate farms. The production facilities of the Company are located at following geographical locations:

Unit-I Mauza Shirin, Jamal Din Wali, District Rahim Yar Khan Unit-II Machi Goth, Sadiqabad, District Rahim Yar Khan Unit-III Mauza Laluwali, Near Village Islamabad, District Ghotki 2 BASIS OF PREPARATION

2.1 Basis of accounting2.1.1 This condensed interim unconsolidated financial information comprises the

condensed interim unconsolidated statement of financial position of the Company as at 31 March 2018 and the related condensed interim unconsolidated profit and loss account, condensed interim unconsolidated statement of comprehensive income, condensed interim unconsolidated cash flow statement and condensed interim unconsolidated statement of changes in equity together with the notes forming part thereof for the period from 01 October 2017 to 31 March 2018.

2.1.2 This condensed interim unconsolidated financial information has been prepared

in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

– International Accounting Standard (IAS) 34, ‘‘Interim Financial Reporting,’’ issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;

– Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan 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 or IFAS, the provisions of and directives issued under the Companies Act, 2017 have been followed.

2.1.3 This condensed interim unconsolidated financial information does not include all of the information required for full annual financial statements and should be read in conjunction with the annual financial statements for the year ended 30 September 2017.

2.1.4 Comparative unconsolidated statement of financial position numbers are extracted

from the annual audited unconsolidated financial statements of the Company for the year ended 30 September 2017, whereas comparative figures of unconsolidated profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in equity are stated from unaudited condensed interim financial information of the Company for the six months period ended 31 March 2017.

2.1.5 This condensed interim unconsolidated financial information is unaudited and being

submitted to the shareholders as required under Section 237 of the Companies Act, 2017 and the Listing Regulations of Pakistan Stock Exchange Limited.

Notes to the Condensed Interim Unconsolidated Financial Information (Un-audited)FOR THE HALF YEAR ENDED 31 MARCH 2018


3 USE OF ESTIMATES AND JUDGMENTS The preparation of the condensed interim unconsolidated financial information requires

management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

In preparing the condensed interim unconsolidated financial information, the significant

judgements made by the management in applying accounting policies and the key source of estimation uncertainty are the same as those applied in the preparation of audited unconsolidated financial statements for the year ended 30 September 2017.

4 STATEMENT OF CONSISTENCY IN ACCOUNTING POLICIES

4.1 The accounting policies and the methods of computation adopted in the preparation of the condensed interim unconsolidated financial information are same as those applied in the preparation of the audited unconsolidated financial statements for the year ended 30 September 2017.

4.2 Effective 01 January 2018, the provisions of the Companies Act, 2017 relating

to the preparation of the financial statements have become applicable. However, there is no major impact of these provisions on the Company’s condensed interim unconsolidated financial information.

4.3 The following amendments and interpretations of approved accounting standards

will be effective for accounting periods as detailed below: Effective date (accounting periods Standard or interpretation beginning on or after)

IFRS 2 – Share-based Payments 01 January 2018 IAS 40 – Investment Property 01 January 2018 IAS 28 – Investments in Associates and Joint Ventures 01 January 2018 IFRIC 22 – Foreign Currency Transactions and Advance Consideration 01 January 2018 IFRIC 23 – Uncertainty over Income Tax Treatments 01 January 2019 IFRS 15 – Revenue from Contract with Customer 01 July 2018 IFRS 9 – Financial Instruments 01 July 2018 IAS 28 – Investments in Associates and Joint Ventures 01 January 2019 IFRS 3 – Business Combinations 01 January 2019 IFRS 11 – Joint Ventures 01 January 2019 IAS 12 – Income Taxes 01 January 2019 IAS 23 – Borrowing Cost 01 January 2019 5 SEASONALITY OF OPERATIONS Due to seasonal nature of sugar segment, operating results of sugar and co-generation

power are expected to fluctuate in the second half of the year.

The sugarcane crushing season normally starts from November and lasts till April each year.


(Un-audited) (Audited) 31-Mar-18 30-Sep-17 Rupees Rupees

6 SHARE CAPITAL

6.1 Authorized share capital 75,000,000 (30 September 2017: 75,000,000) 750,000,000 750,000,000 ordinary shares of Rs. 10 each 25,000,000 (30 September 2017: 25,000,000) preference shares of Rs. 10 each 250,000,000 250,000,000 1,000,000,000 1,000,000,000 6.2 Issued, subscribed and paid up share capital 32,145,725 (30 September 2017: 32,145,725) ordinary shares of Rs. 10 each fully paid in cash 321,457,250 321,457,250 27,630,936 (30 September 2017: 27,630,936) bonus shares of Rs. 10 each fully paid 276,309,360 276,309,360 597,766,610 597,766,610

7 REDEEMABLE CAPITAL - SECURED

During the period, the Company has repaid Rs. 55.55 million (year ended 30 September 2017: Rs. 111.11 million ) to TFC holders. Amounts due in next twelve months amounting to Rs. 27.77 million (year ended 30 September 2017: Rs. 83.33 million) are included in current portion presented under current liabilities. These carry mark-up at three months KIBOR plus 100 bps per annum.


8 LONG TERM FINANCES - SECURED

Markup bearing finances from conventional banks 8.1 6,543,897,156 7,621,383,792Islamic mode of financing 8.2 1,872,358,987 2,170,929,882 8.3 8,416,256,143 9,792,313,674 8.1 Markup bearing finances from conventional banks: Balance at beginning of the period / year 10,428,383,065 10,955,666,181 Finances received during the period / year 8.1.1 534,033,839 1,965,966,161 Repayments during the period / year (1,399,124,640) (2,493,249,277) 9,563,292,264 10,428,383,065 Current portion presented under current liabilities (3,019,395,108) (2,806,999,273) 6,543,897,156 7,621,383,792



Markup Duration

Grace Amount basis period (Rupees)

8.1.1 Finances received during the period Askari Bank Limited 3mk + 1.00 05 Years 01 Year 500,000,000 National Bank of Pakistan Limited (II) 3mk + 0.50 05 Years 01 Year 34,033,839 534,033,839


8.2 Islamic mode of financing: Balance at beginning of the period / year 2,495,929,882 1,264,000,000 Finances received during the period / year 8.2.1 35,230,389 1,463,179,882 Repayments during the period / year (146,500,000) (231,250,000) 2,384,660,271 2,495,929,882 Current portion presented under current liabilities (512,301,284) (325,000,000) 1,872,358,987 2,170,929,882

Profit / Interest Duration


8.2.1 Finances received during the period Bank Alfalah Limited 3mk + 0.90 05 Years 01 Year 35,230,389 * 3 mk i.e. 3 months KIBOR 8.3 The securities offered and facility limits of these long term finances are the same

as disclosed in the audited unconsolidated financial statements of the Company for the year ended 30 September 2017, except as disclosed in note 8.1.1. The interest / markup is payable quarterly / semi annually at a rate of three to six months KIBOR plus 50 bps to 100 bps per annum.

9 LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE - SECURED During the period, the Company availed leases aggregating Rs. 63.96 million (year

ended 30 September 2017: Rs. 76.50 million) and repaid principal amount of Rs. 89.31 million (year ended 30 September 2017: Rs. 569.85 million). Amounts due in next twelve months amounting to Rs. 139.58 million (year ended 30 September 2017: Rs. 153.42 million) are included in current portion presented under current liabilities. Lease rentals are payable on quarterly / monthly basis and include finance cost ranging from three months to one year KIBOR plus 100 bps per annum (year ended 30 September 2017: three months to one year KIBOR plus 100 to 300 bps per annum) which has been used as the discounting factor. The Company has the option to purchase the assets upon completion of lease period and has the intention to exercise such option.


(Un-audited) (Audited) 31-Mar-18 30-Sep-17 Rupees Rupees10 SHORT TERM BORROWINGS - SECURED

10.1 Type of short term borrowings 10.1.1 Markup based borrowings from conventional banks Cash finances 11,258,203,337 6,393,802,000 Running finances 1,815,916,551 1,457,791,234 Inland bill discounting 899,999,998 884,999,998 Finance against trust receipts 409,446,899 266,569,923 14,383,566,785 9,003,163,155 10.1.2 Islamic mode of financing Salam / Istisna finances 6,018,998,368 – Morabaha finances 300,000,000 1,050,000,000 6,318,998,368 1,050,000,000 20,702,565,153 10,053,163,155 10.2 The Company has obtained these facilities from various banks and financial

institutions. The markup rate applicable during the period ranges from one to six months KIBOR plus 0 (zero) to 135 bps per annum (year ended 30 September 2017: one to six months KIBOR plus 20 to 135 bps per annum).

10.3 The securities offered are the same as disclosed in the audited unconsolidated

financial statements of the Company for the year ended 30 September 2017 whereas facility limits have increased to Rs. 26,355 million (year ended 30 September 2017: Rs. 24,715 million).

11 TRADE AND OTHER PAYABLES This includes advances from customers aggregating Rs. 8,541.31 million (year ended 30

September 2017: Rs. 6,418.36 million).

12 CONTINGENCIES AND COMMITMENTS 12.1 Contingencies There is no material change in contingencies from the preceding audited

unconsolidated financial statements of the Company for the year ended 30 September 2017, except for the guarantees and commitments as disclosed below:


Guarantees issued by banks on behalf of the Company in favour of various parties 443,187,500 83,000,000 12.2 Commitments Letters of credit for import of machinery and its related components 233,391,193 569,509,835



(Un-audited) (Audited) Note 31-Mar-18 30-Sep-17 Rupees Rupees13 PROPERTY, PLANT AND EQUIPMENT

Operating fixed assets 13.1 21,210,082,186 19,183,947,822 Capital work in progress 13.2 279,198,418 1,785,030,726 Stores, spare parts and loose tools held for capital expenditure 113,440,965 90,001,462 21,602,721,569 21,058,980,010 13.1 Operating fixed assets Net book value at beginning of the period / year 19,183,947,822 18,533,844,373 Additions during the period / year 2,819,077,762 2,027,221,640 Disposals during the period / year - net book value (96,781,965) (51,194,369) Transfer to investment property – (38,288,435) Depreciation charged during the period / year (696,161,433) (1,287,635,387) Net book value at end of the period / year 21,210,082,186 19,183,947,822 13.2 Capital work in progress Opening balance 1,785,030,726 924,081,851 Addition during the period / year 825,827,602 2,174,535,113 Transfers made duirng the period / year (2,331,659,910) (1,313,586,238) Closing balance 279,198,418 1,785,030,726


14 LONG TERM INVESTMENTS

Investment in subsidiary companies - unquoted 14.1 2,308,810,383 2,303,378,840Investment in associated company - unquoted 14.2 – – 2,308,810,383 2,303,378,840



14.1 Investment in subsidiary companies - unquoted Deharki Sugar Mills (Private) Limited (“DSML”) 104,975,000 (30 September 2017: 104,975,000) fully paid shares of Rs. 10 each Equity held 100% (30 September 2017: 100%) 1,049,750,000 1,049,750,000 Faruki Pulp Mills Limited (“FPML”) 310,892,638 (30 September 2017: 310,892,638) fully paid ordinary shares of Rs. 10 each Equity held 57.67% (30 September 2017: 57.67%) 3,154,426,383 3,154,426,383 Accumulated impairment allowance (1,921,066,000) (1,921,066,000) 1,233,360,383 1,233,360,383 Sadiqabad Power (Private) Limited (“SPL”) 1,000,100 fully paid shares of Rs. 10 each Equity held 100% (30 September 2017: nil) 10,001,000 – Advances for future issuance of shares 2,849,000 10,133,876 12,850,000 10,133,876 Ghotki Power (Private) Limited (“GPL”) 1,000,100 fully paid shares of Rs. 10 each Equity held 100% (30 September 2017: nil) 10,001,000 – Advances for future issuance of shares 2,849,000 10,134,581 12,850,000 10,134,581 2,308,810,383 2,303,378,840 14.2 Investment in associated company - unquoted JDW Power (Private) Limited (“JDWPL”) 9,000,000 (30 September 2017: 9,000,000) fully paid shares of Rs. 10 each Equity held 47.37% (30 September 2017: 47.37%) 90,000,000 90,000,000 Accumulated impairment allowance (90,000,000) (90,000,000) – –

15 ADVANCES, DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES This includes an amount of Rs. 5.44 million (year ended 30 September 2017: Rs. 6.32

million) receivable from executives of the Company.



(Un-audited) (Audited) Note 31-Mar-18 30-Sep-17 Rupees Rupees16 CASH AND BANK BALANCES

Current accounts Deposit with conventional banks 249,079,969 114,843,981 Deposit with islamic banks 38,749,540 14,007,219 287,829,509 128,851,200 Saving accounts Deposit with conventional banks 16.1 6,314,118 2,264,620 294,143,627 131,115,820 Cash in hand 81,963,979 2,641,455 376,107,606 133,757,275 16.1 The balances in saving accounts carry markup at 3.75% to 4.00% per annum

(year ended 30 September 2017: 3.75% per annum).


17 NET SALES

Sugar 12,956,703,744 16,192,668,711 5,485,160,101 6,257,914,827 Electricity 2,265,731,275 2,008,739,315 1,171,298,039 1,147,504,060 Agriculture produce 720,209,190 1,206,048,504 449,511,598 647,207,041 Molasses - by product 1,006,900,384 1,594,965,955 686,830,525 1,098,078,244 Bagasse - by product 63,195,880 7,553,150 7,910,434 7,553,150 Agri Inputs 170,740,409 – 169,815,119 – 17,183,480,882 21,009,975,635 7,970,525,816 9,158,257,322 Less: Sales tax and others (1,171,216,304) (1,632,519,213) (290,020,620) (615,908,898) 16,012,264,578 19,377,456,422 7,680,505,196 8,542,348,424 Sales include sugar export sales of Rs. 4,753 million (31 March 2017: Rs. 1,659 million). 18 OTHER INCOME This mainly includes subsidy aggregating Rs. 1,379 million (31 March 2017: Rs. nil) from

Federal Government and Provincial Government on export of sugar, scrap sale of Rs. 20.49 million (31 March 2017: Rs. 71.17 million), sale of mud of Rs. 93.72 million (31 March 2017: Rs. 63.68 million), fair value gain on biological assets of Rs. 21.67 million (31 March 2017: Rs. 35.75 million) and gain on sale of operating fixed assets of Rs. 62.20 million (31 March 2017: Rs. 6.90 million).


19 TRANSACTIONS WITH RELATED PARTIES The related parties comprise of subsidiary companies, associated company, other

related companies, directors of the Company and entities under common directorship, key management personnel and post employment benefit plans. Amount due from and due to related parties are shown under respective notes to this condensed interim unconsolidated financial information. Other significant transactions and balances with related parties except those disclosed elsewhere are as follows:

31-Mar-18 31-Mar-17 Rupees Rupees

Name of Company Relationship Transactions

i) Deharki Sugar Mills Subsidiary Company Short term (Pvt) Limited (Equity held 100 percent) advances - net 704,300,000 987,814,170 Markup expense on short term advances - net 12,025,630 1,812,560 Sale of sugarcane 716,277,476 1,177,778,578 Purchase of bagasse 133,600,968 – Rent on Land acquired on lease 5,008,092 – Reimbursement on use of Company’s aircraft 4,697,544 4,953,091 Proceeds from sale of operating fixed assets – 2,792,037 ii) Sadiqabad Power Subsidiary Company Investment in shares 10,001,000 – (Pvt) Limited (Equity held 100 percent) Advances for future issuance of shares 2,849,000 6,714,436 iii) Ghotki Power Subsidiary Company Investment in shares 10,001,000 – (Pvt) Limited (Equity held 100 percent) Advances for future issuance of shares 2,849,000 6,879,465 iv) JDW Aviation Associated Company Reimbursement of (Pvt) Limited (Due to common expenses 6,772,024 10,413,370 directorship) v) Post Employment Provident fund Benefits Plan contribution 78,838,676 74,306,206 Payment to recognised gratuity fund 3,476,910 101,168,252 vi) Key Management Consultancy services 5,824,128 7,129,691 Personnel Directors’ remuneration and allowances 145,796,668 168,213,335



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21 FINANCIAL RISK MANAGEMENT The Company’s financial risk management objective and policies are consistent with that

disclosed in the annual unconsolidated financial statements of the Company for the year ended 30 September 2017.

22 RECONCILIATION OF MOVEMENTS OF LIABILITIES TO CASH FLOWS ARISING FROM FINANCING ACTIVITIES

31 March 2018 Liabilities (long term and short term) Redeemable Long term Liabilities against assets Short term Accrued profit / capital - finances - subject to finance borrowings - interest secured secured lease - secured secured / markup Rupees

Balance as at 01 October 2017 83,333,333 12,924,312,947 306,472,177 10,053,163,155 226,191,820 Changes from financing cash flows Loans received during the period – 569,264,228 – 21,948,266,097 – Loan repaid during the period (55,555,556) (1,545,624,640) (89,312,604) (10,906,989,416) – (55,555,556) (976,360,412) (89,312,604) 11,041,276,681 – Other changes - Liability related Interest expense for the period – – – – 901,657,104 Interest paid during the period – – – – (803,020,349) Net change in cash and cash equivalent – – – (391,874,683) – Assets acquired on finance lease – – 63,956,000 – – Total liability-related other changes – – 63,956,000 (391,874,683) 98,636,755 Balance as at 31 March 2018 27,777,777 11,947,952,535 281,115,573 20,702,565,153 324,828,575 23 The Finance Act, 2017 introduced a tax at 7.5% under Section 5A of the Income Tax

Ordinance, 2001 on every public company other than a scheduled bank or modarba, that derives profits for tax year and does not distribute at least 40% of the after tax profit within six months of the end of said tax year through cash or bonus shares. However, subsequent to the period end, the Finance Act, 2018 has been promulgated and approved which has amended Section 5A and has reduced the limit of profit distribution in the form of cash dividend from 40% to 20% and the rate of tax from 7.5% to 5%.

The Board of Directors of the Company intends to distribute sufficient cash dividend

for the year ending 30 September 2018 to comply with the above stated requirements. Accordingly, no provision for tax on undistributed reserves has been made in this condensed interim unconsolidated financial information.

JDW GROUP28

24 DATE OF AUTHORIZATION This condensed interim unconsolidated financial information has been approved by the

Board of Directors of the Company and authorized for issue on 22 May 2018. 25 EVENTS AFTER THE BALANCE SHEET DATE Subsequent to the period end, the Finance Act, 2018 has been promulgated and

approved through which certain amendments were made in the income tax, sales tax, federal excise duty, custom act and other related laws. The amendments include super tax imposed through Finance Act, 2015 is extended upto tax year 2020 and corporate tax rate reduced to 29% for tax year 2019, thereafter, the rate will reduce by 1% annually until 2023.




CONDENSED INTERIM CONSOLIDATED

FINANCIAL INFORMATION (UN-AUDITED)

JDW GROUP30

22 May 2018 Chief Executive DirectorLahore

We, on behalf of the Board of Directors are pleased to present the Condensed Interim Consolidated Financial Information of JDW Sugar Mills Limited (the “Holding Company”) and its Subsidiary Companies Deharki Sugar Mills (Private) Limited, Faruki Pulp Mills Limited, Sadiqabad Power (Private) Limited and Ghotki Power (Private) Limited (“the Group”) for the half year ended March 31, 2018.

Deharki Sugar Mills (Private) Limited (“DSML”) was incorporated as a Private Limited Company. The Principal activity of Subsidiary Company is production and sale of crystalline sugar. The Holding Company Holds 100% shares of the Subsidiary Company.

Faruki Pulp Mills Limited (“FPML”) was incorporated as a Public Limited Company. The Company will be engaged in the manufacturing and sale of paper pulp. The Holding Company Holds 57.67% shares of the Subsidiary Company.

Sadiqabad Power (Private) Limited (“SPL”) was incorporated on 16 December 2016. The Company will be engaged in the generation of electricity under the expansion program of the Holding Company’s existing bagasse based co-generation power plants. The Holding Company holds 100% shares of the Subsidiary Company.

Ghotki Power (Private) Limited (“GPL”) was incorporated on 15 December 2016. The Company will be engaged in the generation of electricity under the expansion program of the Holding Company’s existing bagasse based co-generation power plants. The Holding Company holds 100% shares of the Subsidiary Company.

It is being confirmed that to the best of our knowledge, these condensed interim consolidated financial information for the half year ended March 31, 2018 give a true and fair view of the assets, liabilities, financial position and financial results of the Group and are in conformity with approved accounting standards as applicable in Pakistan.

FINANCIAL OVERVIEW

The consolidated financial results are as follows: 31-Mar-18 31-Mar-17 (Rs. in Million)

Gross Sales 21,028 23,815Net Sales 19,305 21,783Operating Profit 744 3,496(Loss) / Profit before Tax (314) 2,611(Loss) / Profit after Tax (322) 1,912

The Directors on behalf of the Board of Director have given their detailed review report of affairs of the Holding Company as well as Subsidiary Company in Directors’ review to the shareholders of Holding Company.

Directors’ ReviewON CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION

JDW GROUP32

Condensed Interim Consolidated Statement of Financial Position (Un-audited) AS AT 31 MARCH 2018


EQUITY AND LIABILITIESSHARE CAPITAL AND RESERVES Share capital 6 597,766,610 597,766,610 Share premium reserve 678,316,928 678,316,928 Accumulated profit 7,809,512,491 8,309,276,127 Equity attributable to owners of the Holding Company 9,085,596,029 9,585,359,665 Non-controlling interests 482,021,218 483,176,144 9,567,617,247 10,068,535,809 NON-CURRENT LIABILITIES Redeemable capital - secured 7 – –Long term finances - secured 8 10,991,256,143 10,162,313,674 Liabilities against assets subject to finance lease - secured 9 141,536,414 153,047,674 Deferred taxation 1,786,847,345 1,808,456,552 Retirement benefits 40,704,297 36,372,935 12,960,344,199 12,160,190,835 CURRENT LIABILITIES Short term borrowings - secured 10 25,269,538,599 13,783,388,645 Current portion of non-current liabilities 4,064,053,324 3,606,729,189 Trade and other payables 11 25,340,269,616 9,294,974,047 Unclaimed dividend 34,332,107 64,248,402 Accrued profit / interest / mark-up 377,258,206 277,241,631 55,085,451,852 27,026,581,914 77,613,413,298 49,255,308,558 CONTINGENCIES AND COMMITMENTS 12

ASSETS NON-CURRENT ASSETS Property, plant and equipment 13 26,886,388,705 26,248,589,291 Biological assets – 14,595,399 Investment property 218,599,597 218,599,597 Intangibles 1,074,982,089 1,076,016,261 Long term investments 14 – – Long term advances – 3,272,223 Long term deposits 31,420,989 55,042,065 28,211,391,380 27,616,114,836 CURRENT ASSETS Biological assets 549,856,217 2,282,737,798 Stores, spare parts and loose tools 2,180,658,744 1,712,412,677 Stock-in-trade 37,645,221,471 11,331,790,869 Trade debts - unsecured considered good 3,815,668,773 3,588,040,356 Advances, deposits, prepayments and other receivables 15 3,606,140,587 1,734,614,036 Advance tax - net 990,721,187 818,893,090 Cash and bank balances 16 613,754,939 170,704,896 49,402,021,918 21,639,193,722 77,613,413,298 49,255,308,558The annexed notes from 1 to 26 form an integral part of this condensed interim consolidated financial information.



Condensed Interim Consolidated Profit and Loss Account (Un-audited) FOR THE HALF YEAR AND QUARTER ENDED 31 MARCH 2018


Six months ended Three months ended Note 31-Mar-18 31-Mar-17 31-Mar-18 31-Mar-17 Rupees Rupees Rupees Rupees

Gross sales 21,028,344,795 23,814,664,872 8,660,052,960 10,841,230,931 Sales tax and others (1,723,426,667) (2,031,981,523) (371,787,199) (849,193,429)Net sales 17 19,304,918,128 21,782,683,349 8,288,265,761 9,992,037,502 Cost of sales (19,359,329,026) (17,506,669,606) (8,008,704,276) (7,373,800,776)Gross (loss) / profit (54,410,898) 4,276,013,743 279,561,485 2,618,236,726 Administrative expenses (667,796,105) (782,969,855) (362,209,085) (507,861,130)Selling expenses (150,443,742) (45,320,249) (136,171,696) (34,049,406)Other income 18 1,634,805,287 217,503,678 1,286,472,357 147,197,916 Other expenses (18,213,958) (168,920,160) (17,393,133) (104,271,902) 798,351,482 (779,706,586) 770,698,443 (498,984,522)Profit from operations 743,940,584 3,496,307,157 1,050,259,928 2,119,252,204 Finance cost (1,058,052,610) (885,784,981) (577,182,176) (522,599,733)(Loss) / profit before taxation (314,112,026) 2,610,522,176 473,077,752 1,596,652,471 Taxation (7,476,553) (698,251,825) (324,267,973) (424,611,881)(Loss) / profit after taxation (321,588,579) 1,912,270,351 148,809,779 1,172,040,590

Attributable to: Owners of the Holding Company (320,433,653) 1,913,946,207 149,584,668 1,172,949,554 Non-controlling interests (1,154,926) (1,675,856) (774,889) (908,964) (321,588,579) 1,912,270,351 148,809,779 1,172,040,590 The annexed notes from 1 to 26 form an integral part of this condensed interim consolidated financial information.

JDW GROUP34


Condensed Interim Consolidated Statement of Comprehensive Income (Un-audited) FOR THE HALF YEAR AND QUARTER ENDED 31 MARCH 2018


(Loss) / profit after taxation for the period (321,588,579) 1,912,270,351 148,809,779 1,172,040,590 Other comprehensive income – – – – Total comprehensive (loss) / income for the period (321,588,579) 1,912,270,351 148,809,779 1,172,040,590 Attributable to: Owners of the Holding Company (320,433,653) 1,913,946,207 149,584,668 1,172,949,554 Non-controlling interests (1,154,926) (1,675,856) (774,889) (908,964) (321,588,579) 1,912,270,351 148,809,779 1,172,040,590 The annexed notes from 1 to 26 form an integral part of this condensed interim consolidated financial information.


Condensed Interim Consolidated Cash flow Statement (Un-audited)FOR THE HALF YEAR ENDED 31 MARCH 2018


31-Mar-18 31-Mar-17 Rupees RupeesCASH FLOWS FROM OPERATING ACTIVITIES (Loss) / profit before taxation (314,112,026) 2,610,522,176 Adjustments for non cash and other items Finance cost 1,058,052,610 887,597,541 Depreciation 793,718,939 890,654,504 Amortisation 1,034,170 1,041,217 Staff retirement benefits 62,473,592 47,268,275 Workers’ profit participation fund 17,393,133 139,175,992 Assets written off 130,447 – Profit on disposal of operating fixed assets (61,376,866) (6,972,058) Fair value gain on biological assets (21,669,571) (35,747,665) Workers’ welfare fund – 29,744,168 Provision for doubtful debts – 24,716,942 Gain on disposal of investment property – (21,280,885) 1,849,756,454 1,956,198,031 Operating profit before working capital changes 1,535,644,428 4,566,720,207 (Increase) / decrease in current assets Biological assets 1,769,146,551 1,637,317,271 Stores, spare parts and loose tools (468,246,067) 38,338,231 Stock-in-trade (26,313,430,602) (28,480,286,793) Trade debts - unsecured considered good (509,537,110) (1,012,975,398) Advances, deposits, prepayments and other receivables (1,830,788,717) (1,558,540,395) (27,352,855,945) (29,376,147,084)Increase in current liabilities Trade and other payables 16,336,959,468 11,977,433,031 Cash used in operations (9,480,252,049) (12,831,993,846) Taxes paid (198,756,328) (292,539,012) Workers’ profit participation fund paid (69,801,450) (124,461,119) Staff retirement benefits paid (61,055,734) (154,242,075) (329,613,512) (571,242,206)Net cash used in operating activities (9,809,865,561) (13,403,236,052)CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditure (1,522,890,970) (868,977,763) Long term advances 12,027,777 14,027,777 Long term deposits - net 23,621,076 58,443,325 Proceeds from sale of operating fixed assets 161,179,849 20,321,381 Proceeds from sale of investment property – 37,437,422Net cash used in investing activities (1,326,062,268) (738,747,858) CASH FLOWS FROM FINANCING ACTIVITIES Long term finances - net 1,300,111,948 (962,902,276) Short term borrowings - net 12,257,718,556 19,096,178,914 Finance cost paid (898,723,606) (591,348,454) Lease rentals paid (99,314,146) (565,575,997) Dividend paid (209,246,278) (888,737,458)Net cash generated from financing activities 12,350,546,474 16,087,614,729 Net increase in cash and cash equivalents 1,214,618,645 1,945,630,819 Cash and cash equivalents at beginning of the period (3,232,625,687) (2,329,460,675)Cash and cash equivalents at end of the period (2,018,007,042) (383,829,856)

Cash and cash equivalents comprise of the following: - Cash and bank balances 613,754,939 732,931,201 - Running finances and morabaha finances (2,631,761,981) (1,116,761,057) (2,018,007,042) (383,829,856)The annexed notes from 1 to 26 form an integral part of this condensed interim consolidated financial information.

JDW GROUP36

Condensed Interim Consolidated Statement of Changes in Equity (Un-audited)FOR THE HALF YEAR ENDED 31 MARCH 2018

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Notes to the Condensed Interim Consolidated Financial Information (Un-audited)FOR THE HALF YEAR ENDED 31 MARCH 2018

1 STATUS AND NATURE OF BUSINESS

The Group comprises of:

– JDW Sugar Mills Limited (“the Holding Company”); and – Deharki Sugar Mills (Private) Limited - “DSML” (“the Subsidiary Company”); – Faruki Pulp Mills Limited - “FPML” (“the Subsidiary Company”); – Sadiqabad Power (Private) Limited - “SPL” (“the Subsidiary Company”); and – Ghotki Power (Private) Limited - “GPL” (“the Subsidiary Company”). 1.1 JDW Sugar Mills Limited (“the Holding Company”) was incorporated in Pakistan on

31 May 1990 as a private limited company and was subsequently converted into a public limited company on 24 August 1991. Shares of the Holding Company are listed on the Pakistan Stock Exchange Limited. The registered office of the Holding Company is situated at 17 - Abid Majeed Road, Lahore Cantonment, Lahore. The principal activity of the Holding Company is production and sale of crystalline sugar, electricity and managing corporate farms.

1.2 Deharki Sugar Mills (Private) Limited (“the Subsidiary Company”) was incorporated

in Pakistan on 14 July 2010 as a Private Limited Company. The registered office of the Subsidiary Company is situated at 17 - Abid Majeed Road, Lahore Cantonment, Lahore. The principal activity of the Subsidiary Company is manufacturing and sale of crystalline sugar. The Holding Company holds 100% shares of the Subsidiary Company.

1.3 Faruki Pulp Mills Limited (“the Subsidiary Company”) was incorporated in Pakistan

on 20 October 1991 as a Public Limited Company. FPML will be engaged in the manufacturing and sale of paper pulp. The production facility is situated 20 km from Gujrat and the registered office is situated at 13-B, Block -K, Main Boulevard Gulberg II Lahore. The Holding Company holds 57.67% shares of the Subsidiary Company.

1.4 Sadiqabad Power (Private) Limited (“the Subsidiary Company”) was incorporated

in Pakistan on 16 December 2016. The Subsidiary Company will be engaged in the generation of electricity under the expansion program of the Holding Company’s existing bagasse based cogeneration power plants. The registered office of the Subsidiary Company is situated at 17-Abid Majeed Road, Lahore Cantonment, Lahore. The Holding Company holds 100% shares of the Subsidiary Company.

1.5 Ghotki Power (Private) Limited (“the Subsidiary Company”) was incorporated in

Pakistan on 15 December 2016. The Subsidiary Company will be engaged in the generation of electricity under the expansion program of the Holding Company’s existing bagasse based cogeneration power plants. The registered office of the Subsidiary Company is situated at 17-Abid Majeed Road, Lahore Cantonment, Lahore. The Holding Company holds 100% shares of the Subsidiary Company.

JDW GROUP38

2 BASIS OF PREPARATION2.1 Basis of accounting2.1.1 This condensed interim consolidated financial information comprises the

condensed interim consolidated statement of financial position of the Group as at 31 March 2018 and the related condensed interim consolidated profit and loss account, condensed interim consolidated statement of comprehensive income, condensed interim consolidated cash flow statement and condensed interim consolidated statement of changes in equity together with the notes forming part thereof for the period from 01 October 2017 to 31 March 2018.

2.1.2 These condensed interim consolidated financial information have been prepared

in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

– International Accounting Standard (IAS) 34, ‘‘Interim Financial Reporting,’’

issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;

– Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan 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 or IFAS, the provisions of and directives issued under the Companies Act, 2017 have been followed.

2.1.3 This condensed interim consolidated financial information does not include all of the information required for full annual financial statements and should be read in conjunction with the annual financial statements for the year ended 30 September 2017.

2.1.4 Comparative consolidated statement of financial position numbers are extracted

from the annual audited consolidated financial statements of the Group for the year ended 30 September 2017, whereas comparative figures of profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in equity are stated from unaudited condensed interim financial information of the Group for the six months period ended 31 March 2017.

2.1.5 This condensed interim consolidated financial information is unaudited and being

submitted to the shareholders as required under Section 237 of the Companies Act, 2017 and the Listing Regulations of Pakistan Stock Exchange Limited.

3 USE OF ESTIMATES AND JUDGMENTS The preparation of the condensed interim consolidated financial information requires

management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

In preparing the condensed interim consolidated financial information, the significant

judgments made by the management in applying accounting policies and the key sources of estimation uncertainty are the same as those applied in the preparation of audited consolidated financial statements for the year ended 30 September 2017.



4 STATEMENT OF CONSISTENCY IN ACCOUNTING POLICIES4.1 The accounting policies and the methods of computation adopted in the preparation

of this condensed interim consolidated financial information are same as those applied in the preparation of the audited consolidated financial statements for the year ended 30 September 2017.

4.2 Effective 01 January 2018, the provisions of the Companies Act, 2017 relating

to the preparation of the financial statements have become applicable. However, there is no major impact of these provisions on the Group condensed interim consolidated financial information.

4.3 The following amendments and interpretations of approved accounting standards

will be effective for accounting periods as detailed below:

Effective date (accounting periods Standard or interpretation beginning on or after)

IFRS 2 – Share-based Payments 01 January 2018 IAS 40 – Investment Property 01 January 2018 IAS 28 – Investments in Associates and Joint Ventures 01 January 2018 IFRIC 22 – Foreign Currency Transactions and Advance Consideration 01 January 2018 IFRS 9 – Financial Instruments 01 July 2018 IFRS 15 – Revenue from Contract with customer 01 July 2018 IFRS 3 – Business Combinations 01 January 2019 IFRS 11 – Joint ventures 01 January 2019 IAS 12 – Income Taxes 01 January 2019 IAS 23 – Borrowing cost 01 January 2019 IAS 28 – Investments in Associates and Joint Ventures 01 January 2019 IFRIC 23 – Uncertainty over Income Tax Treatments 01 January 2019

5 SEASONALITY OF OPERATIONS Due to seasonal nature of sugar segment, operating results of sugar and co-generation

power are expected to fluctuate in the second half of the year. The sugarcane crushing season normally starts from November and lasts till April each

year.

JDW GROUP40


6 SHARE CAPITAL

6.1 Authorized capital 75,000,000 (30 September 2017: 75,000,000) ordinary shares of Rs. 10 each 750,000,000 750,000,000 25,000,000 (30 September 2017: 25,000,000) preference shares of Rs. 10 each 250,000,000 250,000,000 1,000,000,000 250,000,000 6.2 Issued, subscribed and paid-up capital 32,145,725 (30 September 2017: 32,145,725) ordinary shares of Rs. 10 each fully paid in cash 321,457,250 321,457,250 27,630,936 (30 September 2017: 27,630,936) voting bonus shares of Rs. 10 each fully paid in cash 276,309,360 276,309,360 597,766,610 597,766,610

7 REDEEMABLE CAPITAL - SECURED

During the period, the Holding Company has repaid Rs. 55.55 million (year ended 30 September 2017: Rs. 111.11 million ) to TFC holders. Amounts due in next twelve months amounting to Rs. 27.77 million (year ended 30 September 2017: Rs. 83.33 million) are included in current portion presented under current liabilities. These carry mark-up at three months KIBOR plus 100 bps per annum.


8 LONG TERM FINANCES - SECURED

Markup bearing finances from conventional banks 8.1 6,843,897,156 7,991,383,792Islamic mode of financing 8.2 4,147,358,987 2,170,929,882 8.3 10,991,256,143 10,162,313,674 8.1 Markup bearing finances from conventional banks: Balance at beginning of the period / year 11,036,355,145 12,193,498,661 Finances received during the period / year 8.1.1 534,033,839 1,965,966,161 Repayments during the period / year (1,567,096,720) (3,123,109,677) 10,003,292,264 11,036,355,145 Current portion presented under current liabilities (3,159,395,108) (3,044,971,353) 6,843,897,156 7,991,383,792



Markup Duration


8.1.1 Finances received during the period Askari Bank Limited 3mk + 1.00 05 Years 01 Year 500,000,000 National Bank of Pakistan Limited (II) 3mk + 0.50 05 Years 01 Year 34,033,839 534,033,839


8.2 Islamic mode of financing: Balance at beginning of the period / year 2,495,929,882 1,264,000,000 Finances received during the period / year 8.2.1 2,535,230,389 1,463,179,882 Repayments during the period / year (146,500,000) (231,250,000) 4,884,660,271 2,495,929,882 Current portion presented under current liabilities (737,301,284) (325,000,000) 4,147,358,987 2,170,929,882

Profit / Interest Duration


8.2.1 Finances received during the period Bank Alfalah Limited 3mk + 0.90 05 Years 01 Year 35,230,389 Al Baraka Bank (Pakistan) Limited 3mk + 0.85 05 Years 01 Year 1,000,000,000 MCB Islamic Bank Limited 3mk + 0.80 05 Years 01 Year 1,000,000,000 Faysal Bank Limited 3mk + 1.00 05 Years 01 Year 500,000,000 2,535,230,389 * 3 mk i.e. 3 months KIBOR 8.3 The securities offered and facility limits of these long term finances are the same

as disclosed in the audited consolidated financial statements of the Group for the year ended 30 September 2017, except as disclosed in note 8.1.1 and 8.2.1. The interest / markup is payable quarterly / semi annually at a rate of three to six months KIBOR plus 50 bps to 100 bps per annum.

9 LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE - SECURED During the period, the Holding Company availed leases aggregating Rs. 63.96 million

(year ended 30 September 2017: Rs. 76.50 million) and repaid principal amount of Rs. 89.31 million (year ended 30 September 2017: Rs. 618.84 million). Amounts due in next twelve months amounting to Rs. 139.58 million (year ended 30 September 2017: Rs. 153.42 million) are included in current portion presented under current liabilities. Lease rentals are payable on quarterly / monthly basis and include finance cost ranging from three months to one year KIBOR plus 100 bps per annum (year ended 30 September 2017: three months to one year KIBOR plus 100 to 300 bps per annum) which has been used as the discounting factor. The Holding Company has the option to purchase the assets upon completion of lease period and has the intention to exercise such option.

JDW GROUP42

(Un-audited) (Audited) 31-Mar-18 30-Sep-17 Rupees Rupees10 SHORT TERM BORROWINGS - SECURED

10.1 Type of short term borrowings 10.1.1 Markup based borrowings from conventional banks Cash finances 14,136,538,558 9,128,652,000 Running finances 1,881,761,981 1,603,330,583 Inland bill discounting 899,999,998 884,999,998 Finance against trust receipts 420,233,098 366,406,064 17,338,533,635 11,983,388,645

10.1.2 Islamic mode of financing Salam/Istisna finances 7,181,004,964 – Morabaha finances 750,000,000 1,800,000,000 7,931,004,964 1,800,000,000 25,269,538,599 13,783,388,645 10.2 The Group has obtained these facilities from various banks and financial

institutions. The markup rate applicable during the year ranges from one to six months KIBOR plus 0 (zero) to 135 bps per annum (year ended 30 September 2017: one to six months KIBOR plus 20 to 135 bps per annum).

10.3 The securities offered of these short term borrowings are the same as disclosed in

the audited consolidated financial statements of the Group for the year ended 30 September 2017 whereas the facility limits have increased to Rs. 33,805 million (year ended 30 September 2017: Rs. 31,665 million).

11 TRADE AND OTHER PAYABLES This includes advances from customers aggregating Rs. 9,595.44 million (year ended 30

September 2017: Rs. 7,202.67 million).

12 CONTINGENCIES AND COMMITMENTS 12.1 There is no material change in contingencies from the preceding audited

consolidated financial statements of the Group for the year ended 30 September 2017.


Letters of guarantee in favour of various parties Holding Company - JDWSML 443,187,500 83,000,000 Subsidiary Company - DSML 49,756,000 7,500,000 12.2 Commitments Letters of credit for import of machinery and its related components Holding Company - JDWSML 233,391,193 569,509,835 Subsidiary Company - DSML – 17,449,232



(Un-audited) (Audited) Note 31-Mar-18 30-Sep-17 Rupees Rupees13 PROPERTY PLANT AND EQUIPMENT

Operating fixed assets 13.1 25,492,196,510 23,219,852,562Capital work in progress 13.2 1,280,751,230 2,938,735,267Stores, spare parts and loose tools held for capital expenditure 113,440,965 90,001,462 26,886,388,705 26,248,589,291 13.1 Operating fixed assets Net book value as at beginning of the period / year 23,219,852,562 22,151,628,694 Additions during the period / year 3,191,317,876 2,641,048,289 Disposals during the period / year - net book value (117,594,791) (89,841,962) Depreciation charged during the period / year (801,379,137) (1,482,982,459) 25,492,196,510 23,219,852,562 13.2 Capital work in progress Opening balance 2,938,735,267 1,968,331,366 Addition during the period / year 1,016,057,345 2,324,872,570 Transfers made during the period / year (2,674,041,382) (1,354,468,669) Closing balance 1,280,751,230 2,938,735,267

14 LONG TERM INVESTMENTS This represents investment of the Holding Company of 47.37% in the equity of JDW Power

(Private) Limited “JDWPL”, an unquoted associated company. The cost of investment is Rs. 90 million represented by 9 million shares of Rs. 10 each. The carrying value of the investment is Rs. nil (year ended 30 September 2017: Rs. nil) due to accumulated impairment allowance of Rs. 90 million charged in year ended 30 September 2012.

15 ADVANCES, DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES This includes an amount of Rs. 5.44 million (year ended 30 September 2017: Rs. 6.32

million) receivable from executives of the Holding Company.

JDW GROUP44

(Un-audited) (Audited) Note 31-Mar-18 30-Sep-17 Rupees Rupees16 CASH AND BANK BALANCES

Current accounts Deposit with conventional banks 461,878,778 146,274,759 Deposit with islamic banks 40,361,323 16,576,446 502,240,101 162,851,205 Saving accounts Deposit with conventional banks 16.1 7,585,977 3,740,446 509,826,078 166,591,651 Cash in hand 103,928,861 4,113,245 613,754,939 170,704,896 16.1 The balances in saving accounts carry markup at 3.75% to 4.00% per annum (year

ended 30 September 2017: 3.75% per annum).


17 NET SALES

Sugar 17,032,026,599 19,855,035,382 6,205,375,520 8,361,555,246 Electricity 2,265,731,275 2,008,739,315 1,171,298,039 1,147,504,060 Molasses - by product 1,341,371,438 1,915,067,099 968,331,281 1,296,689,049 Bagasse - by product 162,733,931 7,553,150 89,763,708 7,553,150 Agri inputs 222,549,839 – 221,372,699 – Agriculture produce 3,931,713 28,269,926 3,911,713 27,929,426 21,028,344,795 23,814,664,872 8,660,052,960 10,841,230,931 Less: sales tax and others (1,723,426,667) (2,031,981,523) (371,787,199) (849,193,429) 19,304,918,128 21,782,683,349 8,288,265,761 9,992,037,502 Sales include sugar export sales of Rs. 4,753 million (31 March 2017: Rs. 1,659 million). 18 OTHER INCOME This mainly includes subsidy aggregating Rs. 1,379 million (31 March 2017 : Rs. nil) from

Federal and Provincial Government on export of sugar, scrap sale of Rs. 28.53 million (31 March 2017: Rs. 74.47 million), sale of mud of Rs. 110.99 million (31 March 2017: Rs. 69.68 million), fair value gain on biological assets of Rs. 21.67 million (31 March 2017: Rs. 35.75 million) and gain on sale of operating fixed assets of Rs. 62.20 million (31 March 2017: Rs. 6.97 million).



19 B

USI

NES

S SE

GM

ENTS

INFO

RM

ATIO

N

19.1

The G

roup

’s re

porta

ble se

gmen

ts ar

e as f

ollow

s:

Re

porta

ble S

egme

nt

Oper

ation

s

Su

gar

Prod

uctio

n and

sale

of cry

stallin

e sug

ar an

d othe

r rela

ted jo

int an

d by-p

roduc

ts.

Co-G

enera

tion

Gene

ration

and s

ale of

elec

tricity

to C

PPA-

G.

Corpo

rate f

arms

Mana

ging c

orpora

te far

ms fo

r cult

ivatio

n of s

ugarc

ane a

nd th

e sma

ll qua

ntity

of co

tton,

mong

and w

heat.

Othe

r seg

ment

Proje

cts un

der c

onstr

uctio

n for

manu

factur

e / ge

nerat

ion an

d sale

of w

ood p

ulp an

d elec

tricity

.

19.2

Infor

matio

n reg

ardin

g the

Gro

up’s

repo

rtable

segm

ents

is pr

esen

ted be

low:

Suga

r Co

-Gen

erati

on

Corp

orate

Farm

s O

ther

Seg

ment

Int

er S

egme

nt R

econ

ciliat

ion

Total

31-M

ar-18

31

-Mar

-17

31-M

ar-18

31

-Mar

-17

31-M

ar-18

31

-Mar

-17

31-M

ar-18

31

-Mar

-17

31-M

ar-18

31

-Mar

-17

31-M

ar-18

31

-Mar

-17

Ru

pees

Ru

pees

Ru

pees

Ru

pees

Ru

pees

Ru

pees

Ru

pees

Ru

pees

Ru

pees

Ru

pees

Ru

pees

Ru

pees

19.2.

1 Se

gmen

t rev

enue

s & re

sults

Ne

t exte

rnal re

venu

es

17,23

3,910

,046

20,04

0,498

,510

2,06

7,076

,369

1,71

3,914

,912

3,93

1,713

28

,269,9

26

– –

– –

19,30

4,918

,128

21,78

2,683

,349

Int

er-se

gmen

t reve

nues

1,

309,3

73,07

9 1,

270,6

22,55

3 1,

068,5

44,50

2 1,

375,3

82,90

7 3,

001,0

99,60

9 3,

478,4

07,56

1 –

– (5

,379,0

17,19

0) (6

,124,4

13,02

1) –

–

Repo

rtable

segm

ent re

venu

e 18

,543,2

83,12

5 21

,311,1

21,06

3 3,

135,6

20,87

1 3,

089,2

97,81

9 3,

005,0

31,32

2 3,

506,6

77,48

7 –

– (5

,379,0

17,19

0) (6

,124,4

13,02

1) 19

,304,9

18,12

8 21

,782,6

83,34

9

Segm

ent (l

oss)

/ profi

t befo

re tax

(1

,058,4

69,86

7) 1,

138,7

34,82

3 1,

231,4

95,83

5 1,

323,4

18,77

0 (4

78,51

9,426

) 15

2,446

,092

(8,61

8,568

) (4

,077,5

09)

– –

(3

14,11

2,026

) 2,

610,5

22,17

6

19.2.

2 Int

er-se

gmen

t sale

s and

purc

hase

s

Inter-

segm

ent s

ales a

nd pu

rchas

es ha

ve be

en el

imina

ted fro

m tot

al fig

ures.

19.2.

3 Ba

sis of

inter

-segm

ent p

ricing

All

inter

-segm

ent tr

ansfe

rs are

mad

e at fa

ir valu

e. 19

.2.4

Segm

ent a

ssets

& lia

bilitie

s

Su

gar

Co-G

ener

ation

Co

rpor

ate Fa

rms

Oth

er S

egme

nt

Inter

Seg

ment

Rec

oncil

iation

To

tal

(Un-

audit

ed)

(Aud

ited)

(U

n-au

dited

) (A

udite

d)

(Un-

audit

ed)

(Aud

ited)

(U

n-au

dited

) (A

udite

d)

(Un-

audit

ed)

(Aud

ited)

(U

n-au

dited

) (A

udite

d)

31

-Mar

-18

30-S

ep-17

31

-Mar

-18

30-S

ep-17

31

-Mar

-18

30-S

ep-17

31

-Mar

-18

30-S

ep-17

31

-Mar

-18

30-S

ep-17

31

-Mar

-18

30-S

ep-17

Rupe

es

Rupe

es

Rupe

es

Rupe

es

Rupe

es

Rupe

es

Rupe

es

Rupe

es

Rupe

es

Rupe

es

Rupe

es

Rupe

es

To

tal as

sets

for re

porta

ble se

gmen

t 66

,181,7

49,88

9 37

,990,6

55,77

8 8,

606,9

13,37

6 8,

483,8

36,89

8 6,

030,1

07,44

4 7,

927,9

04,66

4 2,

173,6

59,77

9 2,

171,0

65,71

0 (5

,379,0

17,19

0) (7

,318,1

54,49

1) 77

,613,4

13,29

8 49

,255,3

08,55

9

Total

liabil

ities f

or rep

ortab

le se

gmen

t 68

,769,9

95,25

9 40

,002,6

71,39

5 4,

342,4

51,02

7 5,

733,7

69,71

9 26

7,233

,569

722,8

50,00

6 45

,133,3

86

45,63

6,120

(5,

379,0

17,19

0) (7

,318,1

54,49

1) 68

,045,7

96,05

1 39

,186,7

72,74

9

31-M

ar-18

31

-Mar

-17

Ru

pees

Ru

pees

19.3

Reco

ncilia

tion o

f rep

ortab

le se

gmen

t pro

fit an

d los

s

Total

(loss

) / pro

fit be

fore t

ax fo

r repo

rtable

segm

ents

(314

,112,0

26)

2,61

0,522

,176

Un

alloc

ated c

orpora

te ex

pens

es

(7,47

6,553

) (6

98,25

1,825

)

(Loss

) / pro

fit aft

er tax

ation

(3

21,58

8,579

) 1,

912,2

70,35

1

JDW GROUP46

20 F

AIR

VA

LUE

MEA

SUR

EMEN

T O

F FI

NA

NC

IAL

INST

RU

MEN

TSTh

e fo

llow

ing

tabl

e sh

ows

the

carry

ing

amou

nts

and

fair

valu

es o

f fina

ncia

l ass

ets

and

finan

cial

liab

ilitie

s in

clud

ing

thei

r lev

els

in th

e fa

ir va

lue

hier

arch

y fo

r fin

anci

al in

stru

men

ts m

easu

red

at fa

ir va

lue.

It d

oes

not i

nclu

de fa

ir va

lue

info

rmat

ion

for fi

nanc

ial a

sset

s an

d fin

anci

al li

abilit

ies

not m

easu

red

at fa

ir va

lue

if th

e ca

rryin

g am

ount

is a

reas

onab

le a

ppro

xim

atio

n of

fair

valu

e:

31 M

arch

2018

(un-

audit

ed)

Ca

rrying

Amo

unt

Fair V

alue

Lo

ans a

nd

Othe

r fina

ncial

rec

eivab

les

liabil

ities

Total

Le

vel 1

Le

vel 2

Le

vel 3

No

te (R

upee

s)

On-B

alanc

e she

et fi

nanc

ial in

stru

men

ts

Fi

nanc

ial as

sets

not

mea

sure

d at

fair

valu

e

Cash

and b

ank b

alanc

es

61

3,754

,939

– 61

3,754

,939

– –

–

Adva

nces

, dep

osits

and o

ther r

eceiv

ables

320,1

29,15

7 –

32

0,129

,157

– –

–

Trad

e deb

ts - u

nsec

ured

cons

idere

d goo

d

3,81

5,668

,773

–

3,81

5,668

,773

– –

–

Long

term

adva

nces

– –

– –

– –

Lo

ng te

rm de

posit

s

31,42

0,989

–

31

,420,9

89

– –

–

20.2

4,78

0,973

,858

–

4,78

0,973

,858

– –

–

Fina

ncial

liabi

lities

not

mea

sure

d at

fair

valu

e

Rede

emab

le ca

pital

- sec

ured

–

27,77

7,773

27

,777,7

73

– –

–

Lo

ng te

rm fin

ance

s - se

cure

d

–

14,88

7,952

,535

14,88

7,952

,535

– –

–

Lia

bilitie

s aga

inst a

ssets

subje

ct

to fi

nanc

e lea

se -

secu

red

–

281,1

15,57

3 28

1,115

,573

– –

–

Trad

e and

othe

r pay

ables

–

15,55

5,153

,323

15,55

5,153

,323

– –

–

Shor

t term

borro

wing

s - se

cure

d

– 25

,269,5

38,59

9 25

,269,5

38,59

9 –

– –

Ac

crued

profi

t / int

eres

t / ma

rkup

–

37

7,258

,206

377,2

58,20

6 –

– –

20

.2 –

56,39

8,796

,009

56,39

8,796

,009

– –

–



20.1

Fa

ir va

lue

mea

sure

men

t of fi

nanc

ial i

nstr

umen

ts

30 S

eptem

ber 2

017 -

(aud

ited)

Carry

ing A

moun

t Fa

ir Valu

e

Loan

s and

Ot

her fi

nanc

ial

receiv

ables

lia

bilitie

s To

tal

Leve

l 1

Leve

l 2

Leve

l 3

Note

(Rup

ees)

On

-Bala

nce s

heet

fina

ncial

inst

rum

ents

Fi

nanc

ial as

sets

not

mea

sure

d at

fair

valu

e

Cash

and b

ank b

alanc

es

17

0,704

,896

– 17

0,704

,896

– –

–

Adva

nces

, dep

osits

and o

ther r

eceiv

ables

64,72

9,775

–

64,72

9,775

–

– –

Trad

e deb

ts - u

nsec

ured

cons

idere

d goo

d

3,58

8,040

,356

–

3,58

8,040

,356

– –

–

Long

term

adva

nces

3,27

2,223

–

3,27

2,223

–

– –

Lo

ng te

rm de

posit

s

55,04

2,065

–

55,04

2,065

–

– –

20

.2 3,

881,7

89,31

5 –

3,

881,7

89,31

5 –

– –

Fina

ncial

liabi

lities

not

mea

sure

d at

fair

valu

e

Rede

emab

le ca

pital

- sec

ured

–

83,33

3,333

83

,333,3

33

– –

–

Long

term

finan

ces -

secu

red

–

13,53

2,285

,027

13,53

2,285

,027

– –

–

Liabil

ities a

gains

t ass

ets su

bject

to fi

nanc

e lea

se -

secu

red

–

306

,472,1

77

306,4

72,17

7 –

– –

Tr

ade a

nd ot

her p

ayab

les

–

1,

903,5

86,82

6 1,

903,5

86,82

6 –

– –

Sh

ort te

rm bo

rrowi

ng -

secu

red

–

13,78

3,388

,645

13,78

3,388

,645

– –

–

Accru

ed pr

ofit /

inter

est /

mark-

up

–

277

,241,6

31

277,2

41,63

1 –

– –

20.2

– 2

9,886

,307,6

39

29,88

6,307

,639

– –

– 20

.2 Th

e Gro

up ha

s not

disclo

sed t

he fa

ir valu

es of

thes

e fina

ncial

asse

ts an

d liab

ilities

as th

ese a

re fo

r sho

rt ter

m or

repr

ice ov

er sh

ort te

rm. T

here

fore,

their c

arryi

ng am

ounts

are r

easo

nable

ap

prox

imati

on of

their

fair v

alues

. 20

.3 Fa

ir va

lue m

easu

rem

ent o

f bio

logi

cal a

sset

s

In ab

senc

e of

activ

e ma

rket f

or s

ugar

cane

stan

ding

crops

, the

fair

value

mea

sure

ment

for th

e sta

nding

cro

p ha

s be

en c

atego

rized

as

Leve

l 3 fa

ir va

lue b

ased

on

the in

puts

to the

va

luatio

n tec

hniqu

es us

ed. F

air va

lue ha

s bee

n dete

rmine

d on t

he ba

sis of

a dis

coun

ted ca

sh flo

w mo

del. T

he va

luatio

n mod

el co

nside

rs the

pres

ent v

alue o

f net

cash

flows

expe

cted

to be

gene

rated

by th

e plan

tation

. The

cash

flow

proje

ction

s inc

lude s

pecifi

c esti

mates

for n

ext y

ear w

hich m

ainly

includ

e cro

p’s ex

pecte

d yiel

d. Th

e exp

ected

cash

flows

are d

iscou

nted

using

a ris

k adju

sted d

iscou

nt ra

te.

20.4

Fair

valu

e mea

sure

men

t of i

nves

tmen

t pro

perty

carri

ed at

cost

Fa

ir va

lue o

f inv

estm

ent p

rope

rty is

dete

rmine

d ba

sed

on e

stima

ted m

arke

t valu

e. Ra

te pe

r squ

are

acre

repr

esen

ts sig

nifica

nt un

obse

rvable

inpu

t. Th

e es

timate

d fai

r valu

e wo

uld

incre

ase /

(dec

reas

e) if

expe

cted r

ental

grow

th we

re hi

gher

/ (low

er);

the oc

cupa

ncy r

ate w

ere h

igher

/ (low

er);

or re

nt fre

e per

iods w

ere s

horte

r / (lo

nger

).

JDW GROUP48

21 TRANSACTIONS WITH RELATED PARTIES The related parties comprise of associated company, other related companies, directors

of the Group and entities under common directorship, key management personnel and post employment benefit plans. Amounts due from and due to related parties are shown under respective notes to these consolidated financial statements. Other significant transactions with related parties except those disclosed elsewhere are as follows:

31-Mar-18 31-Mar-17 Rupees Rupees Name of Company Relationship Transactions

JDW Aviation Associated Company Reimbursement of (Pvt) Limited expenses 6,772,024 10,413,370 Key Management Consultancy services 5,824,128 7,129,691 Personnel Directors’ remuneration and allowances 145,796,668 168,213,335 Post Employment Contribution Plan Provident fund contribution 92,416,066 86,528,924 Payment to recognised gratuity fund 3,476,910 101,168,252

22 FINANCIAL RISK MANAGEMENT The Group’s activities expose it to a variety of financial risks: market risk (including

currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.

The condensed interim consolidated financial information does not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual financial statements as at 30 September 2017.

There have been no changes in the risk management policies since the year end. 23 RECONCILIATION OF MOVEMENTS OF LIABILITIES TO CASH FLOWS ARISING FROM FINANCING ACTIVITIES

31 March 2018 Liabilities (long term and short term) Redeemable Long term Liabilities against assets Short term Accrued profit / capital - finances - subject to finance borrowings - interest secured secured lease - secured secured / markup Rupees

Balance as at 01 October 2017 83,333,333 13,532,285,027 306,472,177 13,783,388,645 277,241,631 Changes from financing cash flows Loans received during the period – 3,069,264,228 – 27,526,350,011 – Loan repaid during the period (55,555,556) (1,713,596,720) (89,312,604) (15,268,631,455) – (55,555,556) 1,355,667,508 (89,312,604) 12,257,718,556 – Other changes - Liability related Interest expense for the period – – – – 1,058,052,610 Interest paid during the period – – – – (958,036,035) Net change in cash and cash equivalent – – – (771,568,602) – Assets acquired on finance lease – – 63,956,000 – – Total liability-related other changes – – 63,956,000 (771,568,602) 100,016,575 Balance as at 31 March 2018 27,777,777 14,887,952,535 281,115,573 25,269,538,599 377,258,206


24 The Finance Act, 2017 introduced a tax at 7.5% under Section 5A of the Income Tax Ordinance, 2001 on every public company other than a scheduled bank or modarba, that derives profits for tax year and does not distribute at least 40% of the after tax profit within six months of the end of said tax year through cash or bonus shares. However, subsequent to the period end, the Finance Act, 2018 has been promulgated and approved which has amended Section 5A and has reduced the limit of profit distribution in the form of cash dividend from 40% to 20% and the rate of tax from 7.5% to 5%.

The Board of Directors of the Holding Company intends to distribute sufficient cash dividend for the year ending 30 September 2018 to comply with the above stated requirements. Accordingly, no provision for tax on undistributed reserves has been made in this condensed interim consolidated financial statements.

25 DATE OF AUTHORIZATION The condensed interim consolidated financial information for the half year ended 31

March 2018 was authorized for issue by the Board of Directors on 22 May 2018.

26 EVENTS AFTER BALANCE SHEET DATE Subsequent to the period end, the Finance Act, 2018 has been promulgated and

approved through which certain amendments were made in the income tax, sales tax, federal excise duty, custom act and other related laws. The amendments include super tax imposed through Finance Act, 2015 is extended upto tax year 2020 and corporate tax rate reduced to 29% for tax year 2019, thereafter, the rate will reduce by 1% annually until 2023.


INVESTOR’S AWARENESSIn pursuance of SRO 924(1)/2015 dated 09 September 2015 issued by the Securities and Exchange Commission

of Pakistan (SECP), the following informational message has been reproduced to educate investors:

contents year-ended 31 mar 18.pdf · 2018. 5. 30. · auditor’s report to the members on review...

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