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

Condensed Interim Unconsolidated Financial InformationCondensed Interim Unconsolidated Balance Sheet .............................................................................................10Condensed Interim Unconsolidate Profit & Loss Account ...............................................................................11Condensed Interim Unconsolidated Statement of Comprehensive Income ....................................................12Condensed Interim Unconsolidated Cash Flow Statement .................................................................................13Condensed Interim Unconsolidated Statement of Changes in Equity ...............................................................14Notes to the Condensed Interim Unconsolidated Financial Information ................................................................................15

Condensed Interim Consolidated Financial InformationDirectors’ Review on Condensed Interim Consolidated Financial Information ................................................................................26Condensed Interim Consolidated Balance Sheet .............................................................................................28Condensed Interim Consolidate Profit & Loss Account ...............................................................................29Condensed Interim Consolidated Statement of Comprehensive Income ....................................................30Condensed Interim Consolidated Cash Flow Statement .................................................................................31Condensed Interim Consolidated Statement of Changes in Equity ...............................................................32Notes to the Condensed Interim Consolidated Financial Information ................................................................................33Investor’s Awareness

For the Quarter Ended 31 December 201701

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

The Directors of the Company are pleased to present the Company’s un-audited accounts for the quarter ended on 31 December 2017.

Financial results of the first quarter are never true representative of the results that Company will ultimately achieve but can give just an idea of the trend. The key indicators of operating and financial results are summarized below.

Gross turnover of the Company in the first quarter was Rs. 9.55 billion as compared to corresponding period of Rs. 11.85 billion, the gross turnover declined by 20% mainly due to 15% lower sales volume. Due to higher sugarcane cost and sharp decrease in sugar and molasses prices, Company sustained net loss after tax amounting to Rs. 40 million as compared to net profit after tax amounting to Rs. 762 million in the corresponding period, resultantly earnings per share was reduced from Rs. 12.74 to loss per share Rs. 0.67. Moreover, sugar sales tax fixed at higher price by the Government as compared to its actual market prices had also adversely affected our profitability in the current period. In these adverse circumstances for sugar industry, where industry projects heavy losses, our Company sustained insignificant loss because of better sucrose recovery increased in this season, comparatively more working days for co-generation plants and positive financial results of corporate farms.

The crushing season 2017-18 was started on 29 November, 2017 for all the four sugar units and on group basis up to 24 January 2018; produced 435,333 tons of sugar with average sucrose recovery of approx. 10%. Crop size this time seems higher than last crushing season despite reduction in yield per acre being experienced by the growers which would be only because of more area under sugar cane cultivation. Owing to more availability of sugar cane and improvement in sucrose recoveries it is expected that Company may achieve more sugar production this year as compared to last year. Expected production on country basis for 2017-18 is 7.5 million tons as against 7.1 million tons achieved last year.

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 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 has made export of 54,414 tons of sugar upto 24 January 2018 and is committed to export more provided the process of release of freight support is speed up by SBP.


The minimum notified support price of sugar cane for crushing season 2017-18 is unchanged in Punjab and Sindh provinces at Rs. 180 per 40 kg & Rs. 182 per 40 kg respectively. In December 2017, Honorable Sindh High Court in its order C.P.No.D-8666 of 2017 on Fixation Minimum Purchase Price of Sugarcane Rs.182 per 40 kg has provided relief to the Mills in Sindh and reduced the rate from Rs. 182 to Rs. 172 per 40 kg from 23 December, 2017 for the crushing season 2017-18. For remaining Rs. 10/40 kg an undertaking has been obtained by the Court from the mills that they will pay to growers in case of adverse decision.

The Company is fulfilling its financial obligations on time and enjoying cordial relationship with all the financial institutions it’s dealing with. As usual growers’ payment at notified support price has remained our top priority being one of main keys of our success and growers are being paid on time. We regularly provide financial and technical support to our growers. Due to these policies and preferential treatment to growers Company enjoys excellent relationship with them. Current year is relatively a difficult year for the sugar industry due to surplus production, unfavourable sugar prices and no timely release of fright support on export of sugar by 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 by-products, making its processes more efficient and saving more bagasse from the system.

Lahore:25 January 2018 Chief Executive Director


CONDENSED INTERIM UNCONSOLIDATED

FINANCIAL INFORMATION (UN-AUDITED)


Condensed Interim Unconsolidated Balance Sheet (Un-audited) AS AT 31 DECEMBER 2017

Chief Financial OfficerChief Financial Officer Chief Executive Director

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

SHARE CAPITAL AND RESERVES Share capital 6 597,766,610 597,766,610 Share premium reserve 678,316,928 678,316,928 Accumulated profit 7,112,671,994 7,152,880,785 8,388,755,532 8,428,964,323 NON-CURRENT LIABILITIES Redeemable capital - secured 7 – –Long term finances - secured 8 9,530,999,203 9,792,313,674 Liabilities against assets subject to finance lease - secured 9 124,625,414 153,047,674 Deferred taxation 1,604,050,552 1,818,467,413 Retirement benefits 32,379,869 29,618,756 11,292,055,038 11,793,447,517 CURRENT LIABILITIES Short term borrowings - secured 10 8,581,902,618 10,053,163,155 Current portion of non-current liabilities 3,510,048,063 3,368,757,109 Trade and other payables 11 12,052,586,586 8,375,050,128 Accrued profit / interest / mark-up 210,053,116 226,191,820 24,354,590,383 22,023,162,212 44,035,400,953 42,245,574,052CONTINGENCIES AND COMMITMENTS 12

ASSETS NON-CURRENT ASSETS Property, plant and equipment 13 21,414,687,585 21,058,980,010 Biological assets 29,710,749 14,595,399 Intangibles 620,379,083 620,889,016 Investment property 218,599,597 218,599,597 Long term investments 14 2,303,378,840 2,303,378,840 Long term advances – 3,272,223 Long term deposits 45,069,879 54,978,065 24,631,825,733 24,274,693,150 CURRENT ASSETS Stores, spare parts and loose tools 1,770,711,970 1,412,675,360 Stock-in-trade 10,059,670,663 7,939,757,487 Biological assets 2,068,919,645 2,282,737,798 Trade debts - unsecured considered good 2,595,262,779 3,234,430,508 Advances, deposits, prepayments and other receivables 15 1,800,353,655 2,182,572,665 Advance tax - net 800,749,847 784,949,809 Cash and bank balances 16 307,906,661 133,757,275 19,403,575,220 17,970,880,902 44,035,400,953 42,245,574,052

The annexed notes from 1 to 23 form an integral part of this condensed interim unconsolidated financial information.


Condensed Interim Unconsolidated Profit and Loss Account (Un-audited) FOR THE QUARTER ENDED 31 DECEMBER 2017

Chief Financial Officer Chief Executive Director

Note 31-Dec-17 31-Dec-16 Rupees Rupees

Gross sales 9,455,238,366 11,851,718,313 Sales tax and others (881,195,684) (1,016,610,315)Net sales 17 8,574,042,682 10,835,107,998

Cost of sales (8,197,478,511) (9,336,175,542)Gross profit 376,564,171 1,498,932,456 Administrative expenses (253,590,639) (252,103,560)Selling expenses (12,555,047) (9,828,921)Other income 18 98,856,307 60,367,812 Other expenses – (58,847,733) (167,289,379) (260,412,402)Profit from operations 209,274,792 1,238,520,054

Finance cost (391,542,847) (332,994,397)(Loss) / profit before taxation (182,268,055) 905,525,657 Taxation 142,059,264 (143,940,096)(Loss) / profit after taxation (40,208,791) 761,585,561

(Loss) / earnings per share - basic and diluted (0.67) 12.74 The annexed notes from 1 to 23 form an integral part of this condensed interim unconsolidated financial information.



31-Dec-17 31-Dec-16 Rupees Rupees

(Loss) / profit after taxation for the period (40,208,791) 761,585,561 Other comprehensive income for the period – – Total comprehensive (loss) / income for the period (40,208,791) 761,585,561 The annexed notes from 1 to 23 form an integral part of this condensed interim unconsolidated financial information.

Condensed Interim Unconsolidated Statement of Comprehensive Income (Un-audited) FOR THE QUARTER ENDED 31 DECEMBER 2017




CASH FLOW FROM OPERATING ACTIVITIES (Loss) / profit before taxation (182,268,055) 905,525,657 Adjustments for non cash and other items: Finance cost 391,542,847 332,994,397 Depreciation 276,169,099 271,024,579 Amortization 509,932 509,932 Staff retirement benefits 20,861,286 21,478,972 Gain on disposal of operating fixed assets (62,199,221) (5,342,422) Workers’ profit participation fund – 48,218,669 Workers’ welfare fund – 10,629,063 626,883,943 679,513,190 Operating profit before working capital changes 444,615,888 1,585,038,847 (Increase) / decrease in current assets: Stores, spare parts and loose tools (358,036,610) (40,460,619) Stock-in-trade (2,119,913,176) (3,670,099,758) Biological assets 198,702,803 600,046,898 Advances, deposits, prepayments and other receivables 401,724,698 554,278,068 Trade debts 639,167,729 (234,003,109) (1,238,354,556) (2,790,238,520)Increase in current liabilities: Trade and other payables 3,674,978,542 2,087,601,808 Cash generated from operations 2,881,239,874 882,402,135 Taxes paid (88,157,635) (131,763,056) Staff retirement benefits paid (20,171,609) (119,162,371) (108,329,244) (250,925,427)Net cash generated from operations 2,772,910,630 631,476,708 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditure (717,337,665) (1,020,249,886) Long term advances 5,722,222 11,375,308 Proceeds from sale of operating fixed assets 158,765,210 10,194,637 Long term deposits - net 9,908,186 (19,712,517)Net cash used in investing activities (542,942,047) (1,018,392,458) CASH FLOW FROM FINANCING ACTIVITIES Long term finances - net (119,144,330) (23,408,563) Short term borrowings - net (1,384,913,851) 3,632,091,100 Finance cost paid (377,893,990) (238,532,588) Dividend paid (27,229,645) (186,376) Lease rentals paid (60,290,695) (95,095,415)Net cash (used in) / generated from financing activities (1,969,472,511) 3,274,868,158 Net increase in cash and cash equivalents 260,496,072 2,887,952,408 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 (2,113,537,887) 682,045,108

Cash and cash equivalents comprise of the following: - Cash and Bank balances 307,906,661 979,619,096 - Running finances and morabaha finances (2,421,444,548) (297,573,988) (2,113,537,887) 682,045,108 The annexed notes from 1 to 23 form an integral part of this condensed interim unconsolidated financial information.

Condensed Interim Unconsolidated Cash flow Statement (Un-audited)FOR THE QUARTER ENDED 31 DECEMBER 2017


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Condensed Interim Unconsolidated Statement of Changes in Equity (Un-audited)FOR THE QUARTER ENDED 31 DECEMBER 2017


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

1990 as a private limited company under the Companies Ordinance, 1984 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.

2 BASIS OF PREPARATION2.1 Basis of accounting 2.1.1 This condensed interim unconsolidated financial information comprises the

condensed interim unconsolidated balance sheet of the Company as at 31 December 2017 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.

2.1.2 This condensed interim unconsolidated financial information of the Company for

the quarter ended 31 December 2017 has been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34 - Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed.

The Companies Ordinance, 1984 has been repealed after the enactment of the

Companies Act, 2017. However, as allowed by the SECP vide its circular no. 23 / 2017 dated October 4, 2017 and as clarified by the Institute of Chartered Accountants of Pakistan through its circular no. 17 / 2017 dated October 6, 2017, this condensed interim unconsolidated financial information has been prepared in accordance with the provisions of the repealed Companies Ordinance, 1984.

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 balance sheet numbers are extracted from the

annual audited unconsolidated financial statements of the Company 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 Company for the quarter ended 31 December 2016.

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 QUARTER ENDED 31 DECEMBER 2017



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 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.

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 sugar cane crushing season starts from November and lasts till April each year. (Un-audited) (Audited) 31-Dec-17 30-Sep-17 Rupees Rupees6 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. 27.78 million (30 September 2017:

Rs. 111.11 million) to TFC holders. Amounts due in next twelve months amounting to Rs. 55.56 million (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.


(Un-audited) (Audited) Note 31-Dec-17 30-Sep-17 Rupees Rupees8 LONG TERM FINANCES - SECURED

Markup bearing finances from conventional banks 8.1 7,491,838,932 7,621,383,792Islamic mode of financing 8.2 2,039,160,271 2,170,929,882 9,530,999,203 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 (587,380,780) (2,493,249,277) 10,375,036,124 10,428,383,065 Current portion presented under current liabilities (2,883,197,192) (2,806,999,273) 7,491,838,932 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 (73,250,000) (231,250,000) 2,457,910,271 2,495,929,882 Current portion presented under current liabilities (418,750,000) (325,000,000) 2,039,160,271 2,170,929,882

Profit / Interest Duration

Grace Amount basis period (Rupees)

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. The interest / markup is payable quarterly 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. 25.34 (30 September

2017: Rs. 76.50) and repaid principal amount of Rs. 54.62 (30 September 2017: Rs. 571.86). Amounts due in next twelve months amounting to Rs. 152.55 million (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 (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) Note 31-Dec-17 30-Sep-17 Rupees Rupees10 SHORT TERM BORROWINGS - SECURED

10.1 Type of short term borrowings Markup based borrowings from conventional banks Cash finances 10.1.1 2,820,380,000 6,393,802,000 Running finances 1,371,444,548 1,457,791,234 Inland bill discounting 899,999,998 884,999,998 Finance against trust receipts 732,041,981 266,569,923 5,823,866,527 9,003,163,155 Islamic mode of financing Salam / Istisna finances 1,708,036,091 – Morabaha finances 1,050,000,000 1,050,000,000 2,758,036,091 1,050,000,000 8,581,902,618 10,053,163,155

10.1.1 The Company 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 50 bps per annum (30 September 2017: one to six months KIBOR plus 20 to 50 bps per annum).

10.2 The markup rates, securities offered and facility limits of these short term borrowings are the same as disclosed in the audited unconsolidated financial statements of the Company for the year ended 30 September 2017.

11 TRADE AND OTHER PAYABLES This includes advances from customers aggregating Rs. 4,366.06 million (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.

(Un-audited) (Audited) 31-Dec-17 30-Sep-17 Rupees Rupees

Guarantees issued by banks on behalf of the Company in favour of various parties 83,000,000 83,000,000 12.2 Commitments Letters of credit for import of machinery and its related components 22,772,774 569,509,835

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

Operating fixed assets 13.1 19,167,626,460 19,183,947,822 Capital work in progress 2,247,061,125 1,785,030,726 Stores, spare parts and loose tools held for capital expenditures – 90,001,462 21,414,687,585 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 411,178,269 2,027,221,640 Disposals during the period / year - net book value (96,565,989) (51,194,369) Transfer to investment property – (38,288,435) Depreciation charged during the period / year (330,933,642) (1,287,635,387) Net book value at end of the period / year 19,167,626,460 19,183,947,822



(Un-audited) (Audited) Note 31-Dec-17 30-Sep-17 Rupees Rupees14 LONG TERM INVESTMENTS

Investment in subsidiary companies - unquoted 14.1 2,283,110,383 2,283,110,383Advances for future issuance of shares 14.2 20,268,457 20,268,457Investment in associated company - unquoted 14.3 – – 2,303,378,840 2,303,378,840


14.1 Investment in subsidiary companies - unquoted Deharki Sugar Mills (Private) Limited (“DSML”) 104,975,000 (2017: 104,975,000) fully paid shares of Rs. 10 each Equity held 100% (2017: 100%) 1,049,750,000 1,049,750,000 Faruki Pulp Mills Limited (“FPML”) 310,892,638 (2017: 310,892,638) fully paid ordinary shares of Rs. 10 each Equity held 57.67% (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 2,283,110,383 2,283,110,383


14.2 Advances for future issuance of shares Ghotki Power (Private) Limited 10,134,581 10,134,581 Sadiqabad Power (Private) Limited 10,133,876 10,133,876 20,268,457 20,268,457 14.3 Investment in associated company - unquoted JDW Power (Private) Limited(“JDWPL”) 9,000,000 (2017: 9,000,000) fully paid shares of Rs. 10 each 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. 5.76 million (30 September 2017: Rs. 6.32 million)

receivable from executives of the Company.

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

Current accounts Deposit with conventional banks 186,253,314 114,843,981 Deposit with Islamic banks 18,420,197 14,007,219 204,673,511 128,851,200 Saving accounts Deposit with conventional banks 16.1 15,309,496 2,264,620 219,983,007 131,115,820 Cash in hand 87,923,654 2,641,455 307,906,661 133,757,275 16.1 The balances in saving accounts carry markup at 3.75% per annum (2017: 3.75%

per annum).


17 NET SALES

Sugar 7,713,826,943 9,934,753,884 Electricity 1,094,433,236 861,235,255 Agriculture produce 270,697,592 558,841,463 Molasses - by product 320,069,859 496,887,711 Bagasse - by product 55,285,446 –Agri Inputs 925,290 – 9,455,238,366 11,851,718,313 Less: Sales tax and others (881,195,684) (1,016,610,315) 8,574,042,682 10,835,107,998 Sales include sugar export sales of Rs. 960 million (31 December 2016: Rs. nil).

18 OTHER INCOME

This mainly includes scrap sale of Rs. 12.43 million (31 December 2016: Rs. 26.60 million), sale of mud of Rs. 21.80 million (31 December 2016: Rs. 23.27 million) and gain on sale of operating fixed assets of Rs. 62.20 million (31 December 2016: Rs. 5.34 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:


Relationship Nature of Transactions

Subsidiary company Short term advances received - net 2,185,140,000 352,359,339 Markup income - Short term advances 7,088,190 – Markup expense - Short term advances 8,449,388 1,812,560 Sugarcane supplies 270,677,591 558,500,963 Purchase of bagasse 133,600,968 – Rent on land acquired on lease 5,008,092 – Reimbursement on use of Company’s aircraft 2,143,102 2,489,842 Proceeds from operating fixed assets – 2,792,037 Associated company Reimbursement of expenses 3,207,899 5,962,417 Post employment benefits plan Provident fund contribution 33,107,340 33,506,098 Payment to recognised gratuity fund 1,546,504 – Key management personnel Consultancy services 2,682,927 2,079,384 Directors’ remuneration and allowances 61,731,667 70,481,666


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20.2 Fair value measurement of biological assets In absence of active market for sugarcane standing crops, the fair value

measurement for the standing crop has been categorized as Level 3 fair value based on the inputs to the valuation techniques used. Fair value has been determined on the basis of a discounted cash flow model. The valuation model considers the present value of net cash flows expected to be generated by the plantation. The cash flow projections include specific estimates for next year which mainly include crop’s expected yield. The expected cash flows are discounted using a risk adjusted discount rate. The valuation technique and significant unobservable inputs include valued plantation, estimated yield per acre, estimated future sugarcane and risk-adjusted discount rate.

20.3 Fair value measurement of investment property carried at cost Fair value of investment property was determined based on estimated market

value. Rate per square acre represents significant unobservable input. The estimated fair value would increase / (decrease) if, expected market rental growth were higher / (lower), the occupancy rate were higher / (lower) or rent-free periods were shorter / (longer).

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 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 25 January 2018. 23 EVENTS AFTER THE BALANCE SHEET DATE There are no material subsequent events occurred after balance sheet date.





CONDENSED INTERIM CONSOLIDATED

FINANCIAL INFORMATION (UN-AUDITED)

JDW GROUP26

Lahore:25 January 2018 Chief Executive Director

The 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 quarter ended December 31, 2017.

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 manufacture 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 production 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 production 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 quarter ended December 31, 2017 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-Dec-17 31-Dec-16 (Rs. in Million)

Gross Sales 12,611 12,973Net Sales 11,258 11,791Operating (Loss) / Profit (306) 1,377(Loss) / Profit before Tax (787) 1,014(Loss) / Profit after Tax (470) 740

Director has given their detailed review report of affairs of the Holding Company as well as Subsidiary Companies in Directors’ review to the shareholders of Holding Company.

Directors’ Reviewon Condensed Interim Consolidated Financial Information

JDW GROUP28

Condensed Interim Consolidated Balance Sheet (Un-audited) AS AT 31 DECEMBER 2017


SHARE CAPITAL AND RESERVES Share capital 6 597,766,610 597,766,610 Share premium reserve 678,316,928 678,316,928 Accumulated profit 7,839,257,806 8,309,276,127 Equity attributable to owners of the Parent 9,115,341,344 9,585,359,665

Non-Controlling interests 482,796,107 483,176,144 9,598,137,451 10,068,535,809 NON-CURRENT LIABILITIES Redeemable capital - secured 7 – –Long term finances - secured 8 12,365,999,203 10,162,313,674 Liabilities against assets subject to finance lease - secured 9 124,625,414 153,047,674 Deferred taxation 1,378,974,328 1,808,456,552 Retirement benefits 39,134,048 36,372,935 13,908,732,993 12,160,190,835 CURRENT LIABILITIES Short term borrowings - secured 10 10,642,634,739 13,783,388,645 Current portion of non-current liabilities 3,650,048,063 3,606,729,189 Trade and other payables 11 12,541,575,664 9,359,222,449 Accrued profit / interest / mark-up 264,168,693 277,241,631 27,098,427,159 27,026,581,914 50,605,297,603 49,255,308,558 CONTINGENCIES AND COMMITMENTS 12

ASSETS NON-CURRENT ASSETS Property, plant and equipment 13 26,758,381,427 26,248,589,291 Biological assets 29,710,749 14,595,399 Investment property 218,599,597 218,599,597 Intangibles 1,075,499,095 1,076,016,261 Long term investments 14 – –Long term advances – 3,272,223 Long term deposits 45,133,879 55,042,065 28,127,324,747 27,616,114,836 CURRENT ASSETS Biological assets 2,068,919,645 2,282,737,798 Stores, spare parts and loose tools 2,108,056,653 1,712,412,677 Stock-in-trade 12,367,672,806 11,331,790,869 Trade debts - unsecured considered good 2,571,300,669 3,588,040,356 Advances, deposits, prepayments and other receivables 15 2,077,619,633 1,734,614,036 Advance tax - net 813,694,838 818,893,090 Cash and bank balances 16 470,708,612 170,704,896 22,477,972,856 21,639,193,722 50,605,297,603 49,255,308,558

The annexed notes from 1 to 24 form an integral part of this condensed interim consolidated financial information.



Condensed Interim Consolidated Profit and Loss Account (Un-audited) FOR THE QUARTER ENDED 31 DECEMBER 2017


Note 31-Dec-17 31-Dec-16 Rupees Rupees

Gross sales 12,610,575,135 12,973,433,941 Sales tax and others (1,351,639,468) (1,182,788,094)Net sales 17 11,258,935,667 11,790,645,847 Cost of sales (11,350,624,750) (10,132,868,830)Gross (loss) / profit (91,689,083) 1,657,777,017 Administrative expenses (305,587,020) (275,108,725)Selling expenses (14,272,046) (11,270,843)Other income 18 106,049,630 70,305,762 Other expenses (820,825) (64,648,258) (214,630,261) (280,722,064)(Loss) / profit from operations (306,319,344) 1,377,054,953 Finance cost (480,870,434) (363,185,248)(Loss) / profit before taxation (787,189,778) 1,013,869,705 Taxation 316,791,420 (273,639,944)(Loss) / profit after taxation (470,398,358) 740,229,761 Attributable to: Owners of the Company (470,018,321) 740,996,653 Non-controlling interests (380,037) (766,892) (470,398,358) 740,229,761 The annexed notes from 1 to 24 form an integral part of this condensed interim consolidated financial information.

JDW GROUP30



(Loss) / profit after taxation (470,398,358) 740,229,761 Other comprehensive income – – Total comprehensive (loss) / income for the period (470,398,358) 740,229,761

Attributable to: Owners of the Company (470,018,321) 740,996,653 Non-controlling interests (380,037) (766,892) (470,398,358) 740,229,761 The annexed notes from 1 to 24 form an integral part of this condensed interim consolidated financial information.

Condensed Interim Consolidated Statement of Comprehensive Income (Un-audited) FOR THE QUARTER ENDED 31 DECEMBER 2017




CASH FLOWS FROM OPERATING ACTIVITIES (Loss) / profit before taxation (787,189,778) 1,013,869,705 Adjustments for non cash and other items Finance cost 482,231,632 363,185,248 Depreciation 324,031,013 320,482,827 Amortisation 517,164 520,726 Staff retirement benefits 27,121,187 24,431,349 Workers’ profit participation fund – 54,019,194 Workers’ welfare fund – 10,629,063 Gain on disposal of operating fixed assets (60,509,110) (5,342,422) 773,391,886 767,925,985 Operating (loss) / profit before working capital changes (13,797,892) 1,781,795,690 (Increase) / decrease in current assets Biological assets 198,702,802 600,046,898 Stores, spare parts and loose tools (395,643,976) (52,419,236) Stock-in-trade (1,035,881,938) (5,471,584,958) Trade debts - unsecured considered good 561,941,328 (93,331,216) Advances, deposits, prepayments and other receivables 377,224,164 751,002,351 (293,657,620) (4,266,286,161)Increase in current liabilities Trade and other payables 3,648,392,328 2,524,066,212 Cash generated from operations 3,340,936,816 39,575,741 Taxes paid (105,332,902) (184,148,543) Staff retirement benefits paid (25,647,061) (124,606,678) (130,979,963) (308,755,221)Net cash generated from / (used in) operating activities 3,209,956,853 (269,179,480)CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditure (940,096,965) (1,039,217,483) Long term advances 5,722,222 11,375,308 Long term deposits - net 9,908,186 (19,712,517) Proceeds from sale of operating fixed assets 161,095,850 11,119,637 Net cash used in investing activities (763,370,707) (1,036,435,055) CASH FLOWS FROM FINANCING ACTIVITIES Long term finances - net 2,247,883,590 (156,380,643) Short term borrowings - net (3,612,226,223) 2,713,969,585 Finance cost paid (465,517,014) (264,041,537) Lease rentals paid (60,290,695) (127,652,270) Dividend paid (27,229,645) (186,376)Net cash (used in) / generated from financing activities (1,917,379,987) 2,165,708,759 Net (decrease) / increase in cash and cash equivalents 529,206,159 860,094,224 Cash and cash equivalents at beginning of the period (3,232,625,687) 31,740,654 Cash and cash equivalents at end of the period (2,703,419,528) 891,834,878

Cash and cash equivalents comprise of the following: - Cash and bank balances 470,708,612 1,206,251,816 - Running finances and morabaha finances (3,174,128,140) (314,416,938) (2,703,419,528) 891,834,878 The annexed notes from 1 to 24 form an integral part of this condensed interim consolidated financial information.

Condensed Interim Consolidated Cash flow Statement (Un-audited)FOR THE QUARTER ENDED 31 DECEMBER 2017

JDW GROUP32

Condensed Interim Consolidated Statement of Changes in Equity (Un-audited)FOR THE QUARTER ENDED 31 DECEMBER 2017

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Notes to the Condensed Interim Consolidated Financial Information (Un-audited)FOR THE QUARTER ENDED 31 DECEMBER 2017

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 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 Subisdiary 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 manufacture 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 - “SPL” (“the Subsidiary Company”) was

incorporated in Pakistan on 16 December 2016. The Subsidiary Company will be engaged in the production 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 situtated at 17-Abid Majeed Road, Lahore Cantonment, Lahore. The Holding Company holds 100% shares of the Subsidiary Company.

1.5 Ghotki Power (Private) Limited - “GPL” (“the Subsidiary Company”) was

incorporated in Pakistan on 15 December 2016. The Subsidiary Company will be engaged in the production 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 situtated at 17-Abid Majeed Road, Lahore Cantonment, Lahore. The Holding Company holds 100% shares of the Subsidiary Company.

JDW GROUP34

2 BASIS OF PREPARATION This condensed consolidated interim financial information of the Group for the three

months period ended 31 December 2017 is un-audited and has been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34 - ‘Interim Financial Reporting’ and provisions of and directives issued under the repealed Companies Ordinance, 1984. In case where requirements differ, the provisions of or directives issued under the repealed Companies Ordinance, 1984 have been followed. This condensed interim financial information does not include all the information required for annual financial statements and therefore should be read in conjunction with the annual financial statements for the year ended 30 September 2017.

The Companies Ordinance, 1984 was repealed after enactment of the Companies Act,

2017. However, as allowed by the Securities and Exchange Commission of Pakistan vide its circular no. 23 / 2017 dated 4 October 2017 and as clarified by the Institute of Chartered Accountants of Pakistan through its circular no. 17 / 2017 dated 6 October 2017, this condensed consolidated interim financial information of the Group has been prepared in accordance with the provisions of the repealed Companies Ordinance, 1984.

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 POLICIES 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.

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 sugar cane crushing season starts from November and lasts till April each year. (Un-audited) (Audited) 31-Dec-17 30-Sep-17 Rupees Rupees6 SHARE CAPITAL

6.1 Authorized share 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 1,000,000,000




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. 27.78 million (30 September

2017: Rs. 111.11 million) to TFC holders. Amounts due in next twelve months amounting to Rs. 55.56 million (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.

(Un-audited) (Audited) Note 31-Dec-17 30-Sep-17 Rupees Rupees8 LONG TERM FINANCES - SECURED

Markup bearing finances from conventional banks 8.1 7,826,838,932 8,031,383,792Islamic mode of financing 8.2 4,539,160,271 2,130,929,882 12,365,999,203 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 (720,352,860) (3,083,109,677) 10,850,036,124 11,076,355,145 Current portion presented under current liabilities (3,023,197,192) (3,044,971,353) 7,826,838,932 8,031,383,792

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

JDW GROUP36


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 (73,250,000) (271,250,000) 4,957,910,271 2,455,929,882 Current portion presented under current liabilities (418,750,000) (325,000,000) 4,539,160,271 2,130,929,882

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

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. The interest / markup is payable quarterly 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. 25.34 (30

September 2017: Rs. 76.50) and repaid principal amount of Rs. 54.62 (30 September 2017: Rs. 618.84). Amounts due in next twelve months amounting to Rs. 152.55 million (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 (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.

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

10.1 Type of short term borrowings Markup based borrowings from conventional banks Cash finances 10.1.1 3,887,980,001 9,128,652,000 Running finances 1,374,128,140 1,603,330,583 Inland bill discounting 899,999,998 884,999,998 Finance against trust receipts 822,490,509 366,406,064 6,984,598,648 11,983,388,645 Islamic mode of financing Salam / Istisna finances 1,858,036,091 – Morabaha finances 1,800,000,000 1,800,000,000 3,658,036,091 1,800,000,000 10,642,634,739 13,783,388,645



10.1.1 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 100 bps per annum (30 September 2017: one to six months KIBOR plus 20 to 100 bps per annum).

10.2 The markup rates, securities offered and facility limits 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.

11 TRADE AND OTHER PAYABLES This includes advances from customers aggregating Rs. 5,008.57 million (30 September

2017: Rs. 7,202.67 million).

12 CONTINGENCIES AND COMMITMENTS12.1 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 83,000,000 83,000,000 Subsidiary Company - DSML 7,500,000 7,500,000 12.2 Commitments Letters of credit for import of machinery and its related components Holding Company - JDWSML 22,772,774 569,509,835 Subsidiary Company - DSML 5,420,800 17,449,232

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

Operating fixed assets 13.1 23,166,323,085 23,219,852,562 Capital work in progress 3,592,058,342 2,938,735,267 Stores spare parts and loose tools, held for capital expenditure – 90,001,462 26,758,381,427 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/ Adjustments during the period / year 442,644,893 2,641,048,289 Disposals/ Adjustments during the period / year (117,378,814) (89,841,962) Depreciation charged during the period / year (378,795,556) (1,482,982,459) 23,166,323,085 23,219,852,562

JDW GROUP38

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

Power (Private) Limited “JDW Power”, 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 (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. 5.76 million (year ended 30 Sep 2017: Rs. 6.32 million)

receivable from executives of the Holding Company. (Un-audited) (Audited) Note 31-Dec-17 30-Sep-17 Rupees Rupees16 CASH AND BANK BALANCES

Current accounts Deposit with conventional banks 321,822,805 146,274,759 Deposit with islamic banks 20,794,212 16,576,446 342,617,017 162,851,205 Saving accounts Deposit with conventional banks 16.1 16,748,928 3,740,446 359,365,945 166,591,651 Cash in hand 111,342,667 4,113,245 470,708,612 170,704,896 16.1 The balances in saving accounts carry markup at 3.75% per annum (30 September

2017: 3.75% per annum).


17 SALES - NET

Sugar 11,068,934,379 11,493,480,136 Electricity 1,094,433,236 861,235,255 Molasses - by product 373,040,157 618,378,050 Bagasse - by product 72,970,223 – Agri inputs 1,177,140 – Agriculture produce 20,000 340,500 12,610,575,135 12,973,433,941 Less: Sales tax and others (1,351,639,468) (1,182,788,094) 11,258,935,667 11,790,645,847

This includes sugar export sales of Rs. 959.57 million (31 December 2016: Rs. nil).

18 OTHER INCOME This mainly includes scrap sale of Rs. 12 million (31 December 2016: Rs. 29 million),

sale of mud of Rs. 29 million (31 December 2016: Rs. 29 million) and gain on sale of operating fixed assets of Rs. 62 million (31 December 2016: Rs. 5 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

-Gen

eratio

n Ge

nerat

ion an

d sale

of el

ectric

ity to

CPP

A-G.

Corpo

rate f

arms

Mana

ging c

orpora

te far

ms fo

r cult

ivatio

n of s

ugar

cane

and t

he sm

all qu

antity

of co

tton.

Ot

her s

egme

nt Pr

oject

unde

r con

struc

tion f

or ma

nufac

ture a

nd sa

le of

wood

pulp.

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-D

ec-17

31

-Dec

-16

31-D

ec-17

31

-Dec

-16

31-D

ec-17

31

-Dec

-16

31-D

ec-17

31

-Dec

-16

31-D

ec-17

31

-Dec

-16

31-D

ec-17

31

-Dec

-16

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

10,26

1,003

,236

11,02

8,183

,220

997,9

12,43

1 76

2,122

,127

20,00

0 34

0,500

–

11

,258,9

35,66

7 11

,790,6

45,84

7

Inter-

segm

ent re

venu

es

587,0

10,60

2 49

0,830

,700

328,9

10,62

2 47

4,236

,882

844,5

89,66

6 1,

370,6

99,45

4 –

(1,

760,5

10,89

0) (2

,335,7

67,03

6) –

–

Re

porta

ble se

gmen

t reve

nue

10,84

8,013

,838

11,51

9,013

,920

1,32

6,823

,053

1,23

6,359

,009

844,6

09,66

6 1,

371,0

39,95

4 –

11

,258,9

35,66

7 11

,790,6

45,84

7

Segm

ent p

rofit/ (

loss)

befor

e tax

(1

,299,7

69,99

9) 44

9,630

,704

479,9

21,57

3 49

0,842

,820

33,58

3,312

75

,262,0

99

(924

,664)

(1,86

5,918

) –

–

(787

,189,7

78)

1,01

3,869

,705

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

-Dec

-17

30-S

ep-17

31

-Dec

-17

30-S

ep-17

31

-Dec

-17

30-S

ep-17

31

-Dec

-17

30-S

ep-17

31

-Dec

-17

30-S

ep-17

31

-Dec

-17

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 37

,330,9

45,25

5 37

,990,6

55,77

8 7,

587,1

73,30

4 8,

483,8

36,89

8 5,

278,3

29,84

0 7,

927,9

04,66

4 2,

169,3

60,09

3 2,

171,0

65,71

0 (1

,760,5

10,89

0) (7

,318,1

54,49

1) 50

,605,2

97,60

2 49

,255,3

08,55

9

Total

liabil

ities f

or rep

ortab

le se

gmen

t 3

8,143

,261,5

99

40,00

2,671

,395

3,98

3,960

,608

5,73

3,769

,719

594,8

12,71

4 72

2,850

,006

45,63

6,120

45

,636,1

20

(1,76

0,510

,890)

(7,31

8,154

,491)

41,00

7,160

,151

39,18

6,772

,749

31-D

ec-17

31

-Dec

-16

Ru

pees

Ru

pees

19.3

Reco

ncilia

tion o

f rep

ortab

le se

gmen

t pro

fit an

d los

s

Total

profi

t befo

re tax

for re

porta

ble se

gmen

ts

(7

87,18

9,778

) 1,

013,8

69,70

5

Unall

ocate

d corp

orate

incom

e / (e

xpen

ses)

316,7

91,42

0 (2

73,63

9,944

)

Profi

t afte

r taxa

tion

(470

,398,3

58)

740,2

29,76

1

JDW GROUP40

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:

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 F

inan

cial In

stru

men

ts

Fi

nanc

ial as

sets

not

mea

sure

d at

fair

valu

e

Cash

and b

ank b

alanc

es

47

0,708

,612

– 47

0,708

,612

– –

–

Ad

vanc

es, d

epos

its an

d othe

r rec

eivab

les

21

6,648

,296

– 21

6,648

,296

– –

–

Tr

ade d

ebts

- uns

ecur

ed co

nside

red g

ood

2,

571,3

00,66

9 –

2,57

1,300

,669

– –

–

Lo

ng te

rm de

posit

s

45,13

3,879

–

45

,133,8

79

– –

–

31 D

ecem

ber 2

017 (

un-a

udite

d)

20.1

3,30

3,791

,456

– 3,3

03,79

1,456

–

–

–

30 S

epte

mbe

r 201

7 (au

dite

d)

3,

881,7

89,31

5 –

3,88

1,789

,315

– –

–

Fi

nanc

ial lia

biliti

es n

ot m

easu

red

at fa

ir va

lue

Re

deem

able

capit

al - s

ecur

ed

–

5

5,555

,552

55,55

5,552

–

–

–

Lo

ng te

rm fin

ance

s - se

cure

d

– 15

,807,9

46,39

5 15

,807,9

46,39

5 –

– –

Liabil

ities a

gains

t ass

ets su

bject

to fin

ance

leas

e - se

cured

– 27

7,170

,733

277,1

70,73

3 –

– –

Trad

e and

othe

r pay

ables

– 2,

572,4

44,81

2 2,

572,4

44,81

2 –

– –

Shor

t term

borro

wing

- se

cure

d

– 10

,642,6

34,73

9 10

,642,6

34,73

9 –

– –

Accru

ed pr

ofit /

inter

est /

mark-

up

–

264,1

68,69

3 26

4,168

,693

–

– –

31 D

ecem

ber 2

017 (

un-a

udite

d)

20.1

–

29,61

9,920

,924

29,61

9,920

,924

– –

–

30

Sep

tem

ber 2

017 (

audi

ted)

–

29,88

6,307

,639

29,88

6,307

,639

–

–

–

20.1

Th

e Gr

oup

has n

ot d

isclos

ed th

e fa

ir va

lues o

f the

se fin

ancia

l ass

ets a

nd lia

bilitie

s as t

hese

are

for s

hort

term

or r

epric

ed o

ver s

hort

term

. The

refo

re, t

heir

carry

ing a

mou

nts

are

reas

onab

le ap

prox

imat

ion o

f fair

value

.



20.2 Fair value measurement of biological assets In absence of active market for sugarcane standing crops, the fair value

measurement for the standing crop has been categorized as Level 3 fair value based on the inputs to the valuation techniques used. Fair value has been determined on the basis of a discounted cash flow model. The valuation model considers the present value of net cash flows expected to be generated by the plantation. The cash flow projections include specific estimates for next year which mainly include crop’s expected yield. The expected cash flows are discounted using a risk adjusted discount rate.

20.3 Fair value measurement of investment property carried at cost Fair value of investment property is determined based on estimated market value.

Rate per square acre represents significant unobservable input. The estimated fair value would increase / (decrease) if expected rental growth were higher / (lower); the occupancy rate were higher / (lower); or rent free periods were shorter / (longer).

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:


Relationship Nature of Transactions

Associated Companies Reimbursement of expenses 3,207,899 5,962,417 Key Management Personnel Consultancy services 2,682,927 2,079,384 Directors’ remuneration and allowances 61,731,667 70,481,666 Post employment contribution plan Provident fund contribution 44,359,336 39,410,852 Payment to recognised gratuity fund 1,546,504 –

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 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.

JDW GROUP42

23 DATE OF AUTHORIZATION The condensed interim consolidated financial information for the three months ended 31

December 2017 was authorized for issue by the Board of Directors on 25 January 2018. 24 EVENTS AFTER BALANCE SHEET DATE There are no material subsequent events occurred after balance sheet date.



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:

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