Contents. Company Information Directors Report Condensed Interim Balance Sheet Condensed Interim Profit and Loss Account...

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2 10 Short Term Running Finances - Secured Note, September 30, 2012 Contents Company Information... 3 s Report... 4 Condensed Interim Balance Sheet... 6 Condensed Interim Profit and Loss Account... 7 Condensed Interim Statement of Comprehensive Income... 8 Condensed Interim Cash Flow Statement... 9 Condensed Interim Statement of Changes in Equity Condensed Interim Segment Results Condensed Interim Notes to e Accounts Short term running finances (Syndicate) Cash Finance Against Pledge (Syndicate) Cash Finance Against Pledge(NBP) Cash Finance Against Pledge (Summit Bank) Book over draft , , ,999 25, , , ,989-15,047 18, , , This amount represent RF facility of Rs million sactioned by e lenders as per Court order/compromising decree. The facility is secured by e way of first charge over current assets of e Company wi 20% margin. The mark-up of is facility is 3 mon KIBOR plus 0.75% per annum payable quarterly basis Amount represent Cash Finance (Pledge) facility of Rs.250 million sactioned by e lenders as per Court order/compromising decree. The facility is secured by e way of first charge over current assets of e Company wi 20% margin. The mark-up of is facility is 3 mon KIBOR plus 0.75% per annum payable quarterly basis The amount represent outstanding balance of fresh Cash Finance (Pledge) Facility to e extent of Rs.250 million sactioned by (NBP) for procurement of Molasses for furer reprocessing it. The facility will be expired on March 31, 2014 on rolover basis and secured against Molasses as well as Eenol wi 15% margin excluding sales tax. The markup of is facility is 3 mon KIBOR plus 1.75 per annum payable quarterly basis and markup rebate is also allowed on prompt payment of markup payment Amount represent Cash Finance (Pledge) facility of Rs.100 million sactioned by Summit Bank Ltd. The facility is secured by pledge of refined sugar stock of current season ( ) wi 10% margin. The mark-up of is facility is 3 mon KIBOR plus 3% per annum payable quarterly basis. 11 Continginencies & Commitments million performance cash guarantee given to Trading Corporation of Pakistan against supply of 4,920 tons of sugar. 12 Transaction Wi Related Parties During e period, e aggregate of e transactions made by e Company wi its associated companies in respect of purchases, sales & services were for Rs million (September 30, 2012: Rs million). 13 Date of Auorization for Issue These Financial Statements were auorized for issue on July 30, by e board of directors of e Company. 14 General Figures have been rounded off to e nearest ousand rupees. 15

3 7.1 This amount represent outstanding balance of rescheduled settled amount as per compromising decree dated February 18, 2011 granted by Honourable High Court of Sindh at Karachi. As per terms 32 quarterly instalments of principal loan ranging from Rs million to Rs million will be payable in ten years wi one year grace period wi no mark-up rough out e repayment period. The repayments of loan had been started from March 30, 2012 and last payment will be made on December 30, This amount represents principal outstanding rescheduled amount approved by e management of First National Bank Modaraba on June 15, The Principal amount will be paid in 32 quarterly un-equal instalments of Rs million to million repayable in 10 year including grace Period of one year instalments commencing from 16 June, 2012 and e last instalment will be paid on March 16, No mark up will be charged during e period of tenure. 7.3 This amount represents accumulated running balance of token mark up of Rs 450 million payable to Syndicated (Summit Bank & Oer) in 4 equal quarterly instalments of Rs million each. The mark-up will be accrued quarterly in ten years for 40 equal instalment of Rs million. 7.4 This amount represents accumulated running balance of token mark up of Rs million payable to First National Bank Modaraba in 4 equal quarterly instalments of Rs million each. The mark-up will be accrued quarterly in 9 years for 36 equal instalment of Rs million. Note 8 Liabilities Against Assets Subject to Finance Lease Present value of minimum lease payment Current Maturity 9 Deferred Liabilities Deferred Tax Liability for Staff Gratuity (Provision) Deferred Income Tax Liability, September 30, ,489 37,456 (1,883) (11,382) 24,606 26, ,726 31, ,709 21, ,435 52, The Company discontinued its policy for staff retirement benefits plan for gratuity on March 31, 2007 and provision for all its outstanding liabilities had been made until March 31, The payable amount of gratuity shall be transferred to provident fund scheme after deduction of income tax payable by each member as per income tax law. The Company has not yet paid to e Provident Fund Trust. However e Board of Trustee has ammended e said clause and now e said amount not to be transferred to provident fund trust. The amount will be paid to employees at e time of eir separation. COMPANY INFORMATION EXECUTIVE DIRECTORS Muhammad Baqir Jafferi NON-EXECUTIVE DIRECTORS Dewan Asim Mushfiq Farooqui Dewan Abdullah Ahmed Swaleh Dewan Abdul Baqi Farooqui Haroon Iqbal COMPANY SECRETARY Syed Muhammad Salahuddin CHIEF FINANCIAL OFFICER Muhammad Ilyas Abdul Sattar AUDITORS Feroze Sharif Tariq & Co. - Chartered Accountants COST AUDITORS Siddiqi & Company Cost & Management Accountants TAX ADVISOR Sharif & Company - Advocates LEGAL ADVISOR A.K. Brohi & Company Advocates AUDIT COMMITTEE Haroon Iqbal Muhammad Baqir Jafferi Chairman Member Member HUMAN RESOURCE & REMUNERATION COMMITTEE MEMBERS Haroon Iqbal Chairman Member Muhammad Baqir Jafferi Member BANKERS National Bank of Pakistan Summit Bank Limited Habib Bank Limited Standard Chartered Bank Limited Bank of Khyber Limited NIB Bank Limited Meezan Bank Limited Silk Bank Limited Bank of Punjab Limited REGISTERED OFFICER: CORPORATE OFFICE 7 Floor, Finance & Trade Centre, Block-A, Block-A, 2nd Floor Shahrah-e-Faisal, Karachi, Pakistan. Finance & trade Centre Shahrah-e-Faisal, Karachi, Pakistan. SHARE REGISTRAR / TRANSFER AGENT BMF Consultants Pakistan (Pvt.) Limited Annum Estate Building, Room No. 310 & 311, rd 3 Floor, 49, Darul Aman Society, Main Shahrah-e-Faisal, Adjacent Baloch Colony, Karachi, Pakistan. FACTORY Jillaniabad, Budho Talpur, Taluka: Mirpur Baoro District: Thatta Sindh, Pakistan. WEBSITE

4 DIRECTORS REPORT IN THE NAME OF ALLAH; THE MOST GRACIOUS AND MERCIFUL IF YE GIVE THANKS, I WILL GIVE YOU MORE (HOLY QURAN) Dear Shareholder(s), Assalam-o-Alaikum Your s take pleasure in presenting you e unaudited condensed interim financial statement of e Company for e period ended,. Financial Results. During e period under consideration, your Company has suffered after tax loss of Rs million, as compared to loss of Rs million in e corresponding period. Performance Review Sugar Segment The plant started its crushing on 14 December 2012 and operated for (82 days) till 5 March as compared to last year for 85 days. During is period your Company was able to crush 401,196 tons of sugar cane as against 544, tons last season, showing 26% decline, which was due to shortage of working capital as well as scarcity of raw material in our vicinity. During e period 40,245 tons of sugar was produced wi an average recovery of %, an improvement of 0.5% over last year. Sindh Govt. had fixed e minimum support price to Rs. 172/- per 40kg for is season as compared to Rs.154/- per 40 Kg. last season. This works out to approximately 12% higher an last season. However e prices of white refined sugar in local as well as international market remained depressed as compared to e same period in last period, and have no relationship wi minimum support price of sugarcane Distillery Segment Current year Distillery unit started its operation on 24 December The operation remained suspended for annual repairs from 12 October 2012 to rd 23 December The plant produced 18,043 tons of Alcohol during e period under review as compared to 22,409 tons of Alcohol produced during e corresponding period. It is expected at e unit will remain operational till September subject to e availability of raw materials. Bearish trend has been observed in eanol prices globally as compared to high price of feed stocks, which will put pressure on eanol margins in e mons to come. The company had revalued its Factory building and Plant and Machinery which arises revaluation surplus amounting to Rs million revaluation carried by independent valuer M/s Asif Associates as on March 21,. Valuation made on e basis of Direct Meod i.e. Physical inspection and Allocating approximate fair value as per e inquires conducted by Asif associates from different sources and experience of such assignments. 5 Short Term Investment - Related Party The Market value of Dewan Farooque Motors Limited as at, Rs.4.49 per share and as of financial statement issuing date e market value of above share are Rs per share. Had e company account for e effect of change in market value of accounts issuing date e value of investment would have been decreased by Rs Million and e loss for e current period have been increased by Rs Million. 6 Sposors Loan - Un-Secured 7 Opening Balance Addition during e period Syndicated Long Term Finance - Secured Re-schedule Term Finance First Nationalk Bank Mdarabaha Principal Amount Mark up Payable Mark-up payable on Reschedule Term Finance Mark-up payable (First National Bank Modaraba) Less: Repayment during e period Note Less : Current Maturity on Long Term Loan, September 30, , , , , ,344 This represents interest/mark-up free unsecured loan obtained from sponsors of e Company from time to time for financial requirement needed by e Company for smoo running of Sugar Plant ,275,705 3,447, ,883 35, ,500 78, ,422,610 3,561, , ,417 3,230,330 3,388, , ,641 2,845,055 3,129,

5 Condensed Interim Notes to e Accounts (Un-Audited) For The Nine Mons Ended, 1 The Company and its Operations Dewan Sugar Mills Limited (e Company) was incorporated in Pakistan, as a public limited company on June 27, 1982, under e Companies Act, 1913 (Now e Companies Ordinance, 1984) and its shares are listed on e Karachi and Lahore Stock Exchanges in Pakistan. The registered office of e company is situated at 7 floor, block-a Finance and Trade Centre Shahara-e-faisal, Karachi, Pakistan; while its manufacturing facilities are located at Jillaniabad, Budho Talpur, Taluka: Mirpur Baoro, District: Thatta, Sindh, Pakistan, The Principal activity of e Company is production and sale of white crystalline refined sugar, processing and trading of byproducts, and oer related activities and allied products. 2 Statement of Compliance These condensed interim financial statements are un-audited are being submitted to e share holders under e requirement of section 245 of e Companies Ordinance These condensed interim financial statements of e company for e nine mons period ended, has been prepared in accordance wi e requirements of International Accounting Standard (IAS) -34 " InterimFinancial Reporting" and Provisions of and directives issued under e companies Ordinance, 1984, in case where e requirements differ, e provision of or directives issued under e Companies Ordinance, 1984 have been followed. 3 Significant Accounting Policies and Disclosures The accounting policies and meod of computation adopted in e preparation of ese financial statements are e same as ose applied in e preparation of e annual financial statements of e Company for e preceding year ended September 30, Property, Plant and Equipment, September 30, 2012 Chip Board Segment At e very outset of e current year, Chip Board unit is operating on single shift basis produced 130,520 sheets as against annual production of 15,465 sheets during e last year. Alough e production is better an last year, however production was hampered due to extremely poor supply of electricity from WAPDA, and e production to be shifted to diesel power generator, which puts a serious stress on profitability. Management is focused on producing some value added products which will enable chip board unit to improve its profitability. Polypropylene Segment Polypropylene segment remained non-operative. The management anticipates at operation of e is segment will be regularized in e following season, as working capital lines from e banks will be available. Wi e grace of Almighty Allah, we are timely meeting our debt servicing commitment despite difficulty. Till to date e Company has repaid more en 375 million and Insha'Allah, remaining installments will also be paid on time. Company whilst aggressively improving e contribution to e government exchequer, is also positively contributing towards economic development of e country. In conclusion, we bow, beg and pray to Almighty Allah, Rahman-o-Ar-Rahim, in e name of our beloved Prophet Muhammad (peace be upon him) for e continued showering of his blessings, guidance, streng, heal, and prosperity to us, our company, country and nation; and also pray to Almighty Allah to bestow peace, harmony, broerhood, and unity in true Islamic spirit to whole of e Muslim Ummah; Ameen; Summa Ameen. LO-MY LORD IS INDEED HEARER OF PRAYER (HOLY QURAN) By and under Auority of e Board of s Written Down Value Opening Addition during e period Add: Surplus on Revaluation during e period Depreciation for e period Capital work in progress 2,967,558 3,112,880 15,217 93, ,876 - (185,030) (238,537) 3,318,621 2,967,558 7,572 2,740 3,326,193 2,970,298 Karachi, July 30,. Chairman / Chief Executive 12 05

6 Condensed Interim Balance Sheet As At, ASSETS NON-CURRENT ASSETS (Un-Audited) (Audited) Sep 30, 2012 Notes Property, Plant and Equipment 4 3,326,193 2,970,298 CURRENT ASSETS Stores, Spares and Loose Tools 416, ,561 Stock-in-Trade 997, ,478 Trade Debts - Unsecured, Considered Good 320, ,567 Loans and Advances - Unsecured, Considered Good 1,078, ,756 Trade Deposits, Short-Term Prepayments and Current Balances wi Statutory Auorities 25,896 11,798 Oer Receivables -Unsecured Considered Good - 37 Income Tax Refunds and Advances 54,169 34,711 Short Term Investment - Related Party 5 61,289 33,715 Cash and Bank Balances 34,599 22,188 2,989,295 2,612,811 6,315,488 5,583,109 EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Auorized Capital 50,000,000 (Sept 2012: 50,000,000) Ordinary Shares of Rs. 10/- each 500, ,000 Issued, Subscribed and Paid-up Capital 365, ,120 Reserves and Surplus (672,130) (635,574) (307,010) (270,454) Surplus on Revaluation of Property, Plant & Equipment (Net) 988, ,370 NON-CURRENT LIABILITIES Sponsors Loan - Unsecured 6 443, ,344 Re-shedule Term Finance 7 2,845,055 3,129,025 Liabilities Against Assets Subject to Finance Lease -Secured 8 24,606 26,074 Deferred Liabilities 9 190,435 52,983 CURRENT LIABILITIES Trade and Oer Payables - Unsecured 961,773 1,008,502 Interest, Profit, Mark-up Accrued on Loans and Oer Payables 4,644 13,562 Short Term Finances - Secured , ,380 Current Portion of Non-Current Liabilities 7 & 8 387, ,023 Provision for Taxation 89,399 67,300 2,131,030 1,730,767 Contingencies & Commitments ,315,488 5,583,109 Condensed Interim Segment Results For The Nine Mons Ended, Sugar Segment Polypropylene Segment Board and Panel Segment Distillery Segment Total Jun-13 Jun-12 Jun-13 Jun-12 Jun-13 Jun-12 Jun-13 Jun-12 Jun-13 Jun-12 1,513,428 1,756, ,189-9,578 43,574 1,583,195 1,799, , ,635,411 1,476,579 2,266,182 1,476,579 Gross Sales Local Exports 2,144,199 1,756, ,189-1,644,989 1,520,153 3,849,377 3,276,280 3,301 1, ,012 7,463 11,313 8,608 85, , ,368-1,321 5,891 95, ,974 88, , ,368-9,333 13, , ,582 Sales Commission Sales Tax /Special Excise Duty 2,055,263 1,624, ,821-1,635,656 1,506,799 3,742,740 3,131,698 Net Sales 2,106,042 1,812,963 3,566 3,616 52,644 8,791 1,446,603 1,153,899 3,608,855 2,979,269 (50,779) (188,064) (3,566) (3,616) (823) (8,791) 189, , , ,429 COST OF SALES Gross Profit / (Loss) 44,718 40, ,001 1,301 51,971 41,676 31,288 1, ,390 76, ,678 78,971 76,006 42, ,391 78, , ,647 (126,785) (230,258) (3,671) (3,738) (970) (8,826) 82, ,604 (48,764) 31,782 Administrative Expenses Selling and Distribution Costs Segment Results 06 11

7 Condensed Interim Statement of Changes in Equity (Un-Audited) For The Nine Mons Ended, Balance as on October 01, , ,000 (833,183) (278,063) Total comprehensive Loss for e period (48,018) (48,018) Transfer of incremental depreciation on e revalued items of property, plant and equipment, from e Surplus account (Net of Tax) ,538 57,538 Balance as on, , ,000 (823,663) (268,543) Balance as on October 01, , ,000 (825,574) (270,454) Total comprehensive (Loss) for e period (98,466) (98,466) Transfer of incremental depreciation on e revalued items of property, plant and equipment, from e Surplus account (Net of Tax) Issued, Subscribed & Paid-up Capital General Reserve Accumulated Profit/( Loss) ,910 61,910 Balance as on, 365, ,000 (862,130) (307,010) Total Condensed Interim Profit and Loss Account (Un-Audited) For The Nine Mons Ended, Nine Mons Ended 2012 Quarter Ended 2012 Sales 3,742,740 3,131,698 1,197, ,971 Cost of Sales (3,608,855) (2,979,269) (1,241,880) (648,324) Gross Profit / (Loss) 133, ,429 (44,703) 33,647 Administrative and General Expenses (51,971) (41,676) (17,245) (14,230) Distribution and Selling Costs (130,678) (78,971) (44,620) (30,605) Oer Operating Income 3,923 3, (Loss) / Profit from Operations (44,841) 35,355 (106,256) (10,323) Finance Cost (76,535) (70,297) (31,095) (29,203) Loss before Income Tax (121,376) (34,942) (137,351) (39,526) Taxation (4,663) (518) (4,582) 3,489 Loss for e period (after Income Tax) (126,039) (35,460) (141,933) (36,037) Loss per Share - Basic (3.45) (0.97) (3.89) (0.99) 10 07

8 Condensed Interim Statement of Comprehensive Income - (Un-Audited) For The Nine Mons Ended, (Loss) for e Period (126,039) (35,460) (141,933) (36,037) Oer Comprehensive Income: Available for Sale Financial Assets: Nine Mons Ended (Rs. in '000') Quarter Ended Changes in Fair Value 27,573 (12,558) 10,511 (4,231) Total Comprehensive (Loss) for The Period (98,466) (48,018) (131,422) (40,268) Condensed Interim Cash Flow Statement (Un-Audited) For The Nine Mons Ended, 2012 Cash Flow from Operating Activities (Loss) Before Taxation (121,376) (34,942) Adjustment for Non-Cash and Oer Items: Depreciation 185, ,522 Financial Charges 76,535 70, , , , ,877 Changes in Operating Assets and Liabilities (Increase) / Decrease in Current Assets Stores and Spares (8,334) (563) Stock in Trade (67,343) (841,809) Trade Debts (99,461) 6,372 Loans and Advances (127,843) (37,073) Trade Deposits, Prepayments & Oer Balances (14,098) (3,660) Oer Receivables 37 3,556 Increase / (Decrease) in Current Liabilities Trade and Oer Payables (46,729) 467,569 Short Term Finances 317, ,504 (46,094) (16,104) Taxes paid (35,360) (54,406) Financial Charges Paid (51,510) (36,354) Gratuity Paid (11,518) (1,536) (98,388) (92,296) Net Cash Flows from Operating Activities (4,293) 107,477 Cash Flow from Investing Activities Fixed Capital Expenditure (20,048) (2,502) Net Cash Out Flows from Investing Activities (20,048) (2,502) Cash Flow from Financing Activities Sponsors Loan 240, Syndicated Term Finance Secured (190,503) (114,200) Morabaha Payment (1,777) (558) Lease Finance (10,968) (2,097) Net cash out flows from financing activities 36,752 (116,855) Net Increase/(Decrease) in Cash and Bank Balances 12,411 (11,880) Cash and Bank Balances at Beginning of e period 22,188 37,170 Cash and Bank Balances at e end of e period 34,599 25,