AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi, Ansari Sugar Mills Limited disclosed its financial results for the first quarter ended December 31, 2021, revealing significant operational and financial challenges. The company reported a gross loss of PKR 1,681,137 and a pre-tax loss of PKR 125,732,599 for the quarter, compared to a pre-tax loss of PKR 70,974,511 in the same period the previous year. Sales also declined to PKR 81,608,600 from PKR 141,935,897.
According to information available from the Pakistan Stock Exchange (PSX), the company started the crushing season on December 21, 2021, with the provincial government setting the cane price at Rs. 265 per 40 kg. Despite this, the sugar mill produced less sugar and molasses compared to the previous year, with production figures standing at 1,745 metric tons and 435 metric tons, respectively.
The financial distress was exacerbated by legal and regulatory issues. An inquiry by the Federal Investigation Agency (FIA), which later transferred to the National Accountability Bureau (NAB), led to the freezing of the company’s bank accounts due to allegations of illicit transactions. This action, not endorsed by any court, severely restricted the company’s access to funds, forcing it to default on various financial obligations, including payments to banks, salaries, and vendors.
However, subsequent amendments to the NAB Ordinance resulted in the unfreezing of the company’s accounts, allowing some resumption of normal operations. The company is now focusing on diversifying its revenue streams and improving its financial position through the restructuring of debts and enhanced negotiations with bankers.
Despite these challenges, Ansari Sugar Mills is optimistic about its future prospects, particularly with the potential for improved government policies on sugar exports, which could stabilize local markets and support the industry’s growth.