Karachi February 8 2022: Shakarganj limited has suffered loss after tax of PKR 1,387.9 million during the financial year 2021 and has accumulated losses of PKR 3,661.8 million as the reporting date owing to losses mainly due to underutilization of production capacities, higher purchase price of sugarcane as compared to sugar sale price, relatively low recovery from the sugarcane and production of low quality yarn.
The current liabilities of the company exceeded its current assets by PKR 3,654.0 million.
A L S O || R E A D
PRL negative equity of PKR 16.73 billion cast a significant doubt as a going concern
These conditions along with other matters indicate the existence of material uncertainty which may cast significant doubt on the company’s ability to continue as a going concern. Auditor review is not modified in this respect.
The stock hit lower lock with drop of 7.44 percent or PKR 2.97 per share to PKR 36.93 to close the trading at Pakistan Stock Exchange in today’s trading session.
Shakarganj Limited was incorporated in Pakistan in 1967 as a Public Limited Company and is listed on the Pakistan Stock Exchange. Shakarganj is a leading manufacturer of food products, biofuel, as well as textiles. We transform renewable crops such as sugarcane and cotton into value added products including refined sugar, biofuel and textiles etc. Our registered office is in Lahore with regional offices in Faisalabad and Karachi
Shakarganj Limited, through its strategic shareholding in Shakarganj Food Products Limited, is also active in production of dairy and fruit products.
Sugar Business: We have two manufacturing facilities, which are both located in District Jhang. We produce different types of sugar comprising pharmaceutical, beverage and commercial grades sugar as well as soft brown sugar, castor and icing sugar, sugar cubes, sachets and retail packs. Our combined crushing capacity is of 16,000 Tons of Cane per Day (TCD) which is extendable to 20,000 TCD.
Biofuel Business: We have six distillation plants of which three are located at our Jhang facility and the remaining three are located at our Bhone facility where various grades of biofuel are produced. Our products include Rectified Ethanol (REN) for industrial and food grades, Anhydrous Ethanol for fuel grade, and Extra Neutral Alcohol (ENA) for pharmaceutical and perfume grades. The combined capacity of our distilleries is 350,000 litres per day.
Textile Business: This cotton spinning unit produces carded cotton and PC yarn ranging from 10/s to 33/s. The installed capacity is 24,960 spindles for cotton spinning.
Farming & Allied Business: This comprises different parcels of land mainly located in Jhang District near our manufacturing facilities. Total area for farming is 1,285 acres which is our owned land. The main crops include sugarcane, wheat, gram, maize, fodder and seasonal vegetables. A dairy farm located at Jhang has been developed, with a herd of around 200 milking and fattening cattle. Shakarganj has also launched a new product in the area of nonchemicals fertilizers under the brand name of “Shakarganj Tiger Compost”. The product as organic fertilizer has been developed using aerobic decomposition process with addition of standardised microbial culture in filter cake. The compost is a rich source of organic matter, with macro and micro nutrients to help improve soil and it is very useful for better growth, yield and quality of all field crops in general and specifically for sugarcane. This is at its initial stage and would grow up in the farmer’s community with the practical exposures.
Shakarganj Food Products Limtied (subsidiary of Shakarganj Limited) comprises of three divisions – Dairy, Juices and Pulp & Pulp concentrates.
