SHAHMURAD SUGAR MILLS LIMITED

SHAHMURAD SUGAR MILLS LIMITED 3rd Quarterly Results for the period 1st October 2016 to 30th June, 2017

COMPANY INFORMATION BOARD OF DIRECTORS MR. ISMAIL H. ZAKARIA MR. YUSUF AYOOB MR. SULEMAN AYOOB MR. A. AZIZ AYOOB MR. ZIA ZAKARIA MR. NOOR MOHAMMAD ZAKARIA MR. ZOHAIR ZAKARIA MR. NAEEM AHMED SHAFI MR. KHURRAM AFTAB BOARD AUDIT COMMITTEE MR. NAEEM AHMED SHAFI MR. SULEMAN AYOOB MR. ZOHAIR ZAKARIA HUMAN RESOURCE AND REMUNERATION COMMITTEE MR. SULEMAN AYOOB MR. YUSUF AYOOB MR. NOOR MOHAMMAD ZAKARIA Chairman Managing Director Resident Director Independent Director (N.I.T. Nominee) Chairman Member Member Chairman Member Member CHIEF FINANCIAL OFFICER MR. IQBAL UMER COMPANY SECRETARY MR. MOHAMMAD YASIN MUGHAL FCMA AUDITORS M/s. KRESTON HYDER BHIMJI & CO. Chartered Accountants LEGAL ADVISOR MR. ABDUL SATTAR PINGAR Advocate REGISTERED OFFICE 96-A, SINDHI MUSLIM HOUSING SOCIETY, KARACHI-74400 Tel: 34550161-63 Fax: 34556675 FACTORY JHOK SHARIF, TALUKA MIRPUR BATHORO, DISTRICT SUJAWAL (SINDH) REGISTRAR & SHARE REGISTRATION OFFICE C & K MANAGEMENT ASSOCIATES (PVT) LTD. 404-TRADE TOWER, ABDULLAH HAROON ROAD, NEAR METROPOLE HOTEL, KARACHI - 75530 WEBSITE www.shahmuradsugar.co 1

DIRECTORS' REPORT IN THE NAME OF ALLAH THE MOST GRACIOUS AND MOST MERCIFUL Dear members: Assalam-o-Alaikum On behalf of Board of Directors' it is my pleasure to present the un-audited financial statements of your Company for the period ended June 30, 2017. During the period under review, your company operated satisfactorily and earned an after-tax profit of Rs. 2.675 million as against Rs.83.397 million earned in the same period last year. Salient features of production and financial results for the nine months are summarized as under: PRODUCTION DATA 30-06-2017 30-06-2016 Crushing commenced on 28-11-2016 04-12-2015 Crushing completed on 18-03-2017 29-02-2016 Duration of crushing (days) 111 88 Sugarcane crushed (M. Tons) 672,747 496,109 Sugar produced (M. Tons) 72,755 52,578 Sugar recovery percentage 10.82 10.60 Molasses produced (M. Tons) 30,750 22,270 Ethanol produced (M. tons) 21,798 22,374 FINANCIAL DATA (Rs. in thousands) Sales 3,240,459 4,283,314 Cost of sales (2,888,570) (3,802,868) Gross profit 351,889 480,446 Administration expenses (155,235) (135,473) Selling and distribution expenses (119,872) (85,602) Other income net of other operating expenses 9,213 (5,095) Financial cost (147,076) (141,555) Profit / (loss) before taxation (61,081) 112,721 Provision for taxation 63,756 (29,324) Profit after taxation 2,675 83,397 Earnings per share Rs.0.13 Rs.3.95 PERFORMANCE REVIEW: During the current crushing season sugarcane crop was good specifically in Punjab and upper part of Sindh Province. Your company procured sugarcane from the franchise area and from upper part of Sindh as the cane crop in southern part of province was not good. Due to prudent planning the cane crushed was substantially more than the last year's crushing. The sugarcane crushed was 672,747 metric tons as against 496,109 metric tons crushed in the same period last year. The raw material was also procured from Punjab as there was bumper cane crop in Punjab. Due to higher volume of crushing the production of sugar was also increased to 72,755 metric tons as against 52,578 metric tons produced last year. However, due to procurement of raw material from far flung areas the cost of raw material increased to Rs.214.41 per forty kg as against Rs.182/= per forty kg fixed by the Government of Sindh. The recovery percentage also registered an increase to 10.82 percent as against 10.60 percent achieved last year. The growers also harvested the sugarcane crop as early as possible in order to avail the benefit of sowing other crops and dump the harvested cane 2

in the open which also reduced the sucrose contents therein. Although the Government of Sindh fixed support price of sugarcane at Rs.182/= per 40 kg of cane but due to competition amongst the mills and procurements of sugarcane from far flung areas for which the mill had to pay transport charges to the transporters raised the raw material Rs.214.41 per 40 kg of the same. As per latest data made available by press the crushing volume of sugarcane was 70.155 million metric tons on overall country basis as against 49.921 million metric tons crushed during the last year depicting an increase of 20.234 million metric tons. The production of sugar was 6.923 million metric tons as against 5.076 million metric tons produced during 2015-16. During the period under review the recovery percentage of the country is 9.87 percent as against 9.44 percent achieved last year. The current year production of sugar and closing stock available with the sugar mills is in excess of the requirement of the country. Keeping in view the excess stock of sugar the Government allowed export of sugar but the same could not be utilized by the sugar mills due to depressed price of the product in the international market. The availability of sugarcane in Sindh was low when compared with Punjab due to non-availability of water in the desired volume from the irrigation system and there was also hardly any rain in the province. In Punjab the availability of water through irrigation system was available and there was also abundant rain in the upper part of the country. Due to non-availability of cane in the vicinity, the mills had to purchase cane from far flung areas and also from Punjab and heavy amounts were paid as transportation subsidy to the transporters which raised the cost of the raw material. DISTILLERY DIVISION: During the period under consideration the Distillery Division produced 21,798 metric tons of Ethanol as against 22,374 metric tons produced last year. The production is slightly lower than last year due to some maintenance of the plant. BOARD OF DIRECTORS: The Board in its meeting held on May 19, 2017 inducted Mr. Noor Mohammad Zakaria as director, in place of Mr. Ghulam Mohiuddin Zakaria who resigned from the directorship of the company, for remaining period of Board. The Board also appointed Mr. Noor Mohammad Zakaria as member on the Human Resource and Remuneration Committee of the Board for the remaining period of the Committee. FUTURE OUTLOOK: As always we look ahead with optimism that agriculture base in Pakistan will continue to grow. The new verities of cane, improved plantation techniques and expected improved monsoon rains should be beneficial to the sugar industry in the country. During the year 2017-18 bumper sugarcane crop is expected due to all favorable conditions in the country. STAFF RELATION: The management and Directors are pleased to place on record their appreciation for the dedicated and devoted efforts of officers, staff and workers of the company. Karachi: Dated: July 25, 2017 YUSUF AYOOB Managing Director 3

CONDENSED INTERIM BALANCE SHEET (UN-AUDITED) AS AT JUNE 30, 2017 Un-Audited June 2017 Audited September 2016 Note ASSETS NON CURRENT ASSETS Property, plant and equipment 4 2,556,188 2,541,075 Intangible asset 5 - - Long term investments in associate 3,097 3,097 Long term loans 1,605 2,190 Long term deposits 2,429 2,428 Deferred taxation 41,220-2,604,539 2,548,790 CURRENT ASSETS Stores, spare parts and loose tools 158,771 189,625 Stock-in-trade 3,785,096 991,768 Trade debts 19,682 31,455 Loans and advances 346,109 119,958 Short term prepayments 9,188 213 Other receivables 17 - Income tax refund due from Government-net 23,066 17,541 Cash and bank balances 50,475 57,363 4,392,404 1,407,923 6,996,943 3,956,713 EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Authorised Capital 25,000,000 ordinary shares of Rs. 10 each 250,000 250,000 Issued, subscribed and paid-up capital 211,187 211,187 General reserve 80,000 80,000 Share of associate's unrealized loss on re-measurement of investment (1,813) (1,813) Unappropriated Profit 830,889 859,026 1,120,263 1,148,400 SURPLUS ON REVALUATION OF PROPERTY, PLANT & EQUIPMENT 553,260 568,724 NON CURRENT LIABILITIES Long term financing 852,257 756,942 Deferred taxation - 53,862 852,257 810,804 CURRENT LIABILITIES Trade and other payables 1,230,189 685,879 Accrued finance cost 59,585 21,378 Short term borrowings 2,845,581 332,295 Current portion of long term financing and loan from related parties 335,808 389,233 4,471,163 1,428,785 CONTINGENCIES AND COMMITMENTS 6 - - 6,996,943 3,956,713 The annexed notes from 1 to 14 form an integral part of this condensed interim financial information. YUSUF AYOOB Managing Director 4 ZIA ZAKARIA Director

CONDENSED INTERIM PROFIT & LOSS ACCOUNT (UN-AUDITED) FOR THE NINE MONTHS PERIOD ENDED JUNE 30, 2017 For the nine months October to June 2017 2016 For the Quarter April to June 2017 2016 Notes Cost of Sales 3,240,459 4,283,314 889,407 1,807,288 Cost of Sales 7 (2,888,570) (3,802,868) (898,172) (1,599,130) Gross profit/(loss) 351,889 480,446 (8,765) 208,158 Profit from trading activities 2,199-213 - 354,088 480,446 (8,552) 208,158 Distribution cost (119,872) (85,602) (10,697) (25,988) Administrative expenses (155,235) (135,473) (51,401) (42,727) Other operating charges (1,977) (10,585) 5,106 (6,160) (277,084) (231,660) (56,992) (74,875) Operating profit/(loss) 77,004 248,786 (65,544) 133,283 Other income 8,991 5,490 2,304 2,118 85,995 254,276 (63,240) 135,401 Finance cost (147,076) (141,555) (69,784) (57,138) Profit/(loss) before taxation (61,081) 112,721 (133,024) 78,263 Taxation -Current (26,918) (27,171) (10,240) (18,119) -Deferred 90,674 (2,153) 68,746 (7,329) 63,756 (29,324) 58,506 (25,448) Profit/(loss) after taxation 2,675 83,397 (74,518) 52,815 Earning/(loss) per share-basic and diluted - Rupees 0.13 3.95 (3.53) 2.50 The annexed notes from 1 to 14 form an integral part of this condensed interim financial information. YUSUF AYOOB Managing Director 5 ZIA ZAKARIA Director

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE NINE MONTHS PERIOD ENDED JUNE 30, 2017 For the nine months October to June 2017 2016 For the Quarter April to June 2017 2016 Profit/(loss) after taxation 2,675 83,397 (74,518) 52,815 Other comprehensive income - - - - Total comprehensive income/(loss) for the period 2,675 83,397 (74,518) 52,815 The annexed notes from 1 to 14 form an integral part of this condensed interim financial information. YUSUF AYOOB Managing Director ZIA ZAKARIA Director 6

CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED) FOR THE NINE MONTHS PERIOD ENDED JUNE 30, 2017 June June 2017 2016 A. CASH FLOW FROM OPERATING ACTIVITIES (Loss)/profit before taxation (61,081) 112,721 Adjustment for : Depreciation 4.1 99,469 96,623 Amortisation 5-508 Profit on disposal of property, plant and equipment (1,689) (232) Provision for obsolescence and slow moving items 1,200 1,090 Finance cost 147,076 141,555 246,056 239,544 184,975 352,265 (Increase) / decrease in current assets Stores, spare parts and loose tools 29,654 (12,834) Stock in trade (2,793,328) (432,889) Trade debts 11,773 55,769 Loans & advances (226,151) 64,586 Short term prepayments (8,975) (3,150) Other receivables (17) 77,500 (2,987,044) (251,018) Increase in current liabilities Trade and other payables 543,802 170,457 Short term borrowings 2,513,286 (81,828) 3,057,088 88,629 255,019 189,876 Decrease / (increase) in long term loan 585 147 (Increase) in long term deposits (1) (16) Income tax paid (32,443) (20,250) Finance cost paid (108,869) (137,654) (140,728) (157,773) Net cash inflow from operating activities 114,291 32,103 B. CASH FLOW FROM INVESTING ACTIVITIES Additions in property, plant & equipment (118,985) (215,143) Sale proceeds from disposal of property, plant and equipment 6,093 430 Net cash outflow from investing activities (112,892) (214,713) C. CASH FLOW FROM FINANCING ACTIVITIES Note Long term finance received 800,000 300,000 Repayment of long term financing (758,110) (125,799) Dividend paid (50,177) (121,200) Net cash inflow / (outflow) from financing activities (8,287) 53,001 Net increase / (decrease) in cash and bank balances (A+B+C) (6,888) (129,609) Cash and bank balance at the beginning of the period 57,363 306,585 Cash and bank balance at the end of period 50,475 176,976 The annexed notes from 1 to 14 form an integral part of this condensed interim financial information. YUSUF AYOOB Managing Director 7 ZIA ZAKARIA Director

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) FOR THE NINE MONTHS PERIOD ENDED JUNE 30, 2017 Balances as at October 01, 2015 (Audited) 211,187 80,000 (1,773) 779,798 1,069,212 During the nine months period ended June 30, 2016 Issued, Subscribed & paid up capital Share of Associate's General unrealised Un-appropriated Total reserves (loss)/gain on profit remeasurement of investment Transactions with owners Final Dividend for 30-September-2015 @ Rs. 3.50 Per Share - - - (73,916) (73,916) Total Comprehensive Income for the nine months period ended June 30, 2016 - - - 83,397 83,397 Transfer from surplus on revaluation of property, plant and equipment on account of incremental depreciation -net of deferred tax - - - 20,497 20,497 Balances at June 30,2016 211,187 80,000 (1,773) 809,776 1,099,190 Balances as at October 01, 2017 (Audited) 211,187 80,000 (1,813) 859,026 1,148,400 During the nine months period ended June 30, 2017 Transactions with owners Final Dividend for 30-September-2016 @ Rs. 2.40 Per Share - - - (50,685) (50,685) Total Comprehensive Income for nine months period ended June 30, 2017 - - - 2,675 2,675 Transfer from surplus on revaluation of property, plant and equipment on account of incremental depreciation -net of deferred tax - - - 19,654 19,654 Transfer from revaluation surplus on account of disposal of propery, plant and equipment net of deferred tax - - - 219 219 - - - 19,873 19,873 Balances at June 30, 2017 211,187 80,000 (1,813) 830,889 1,120,263 The annexed notes from 1 to 14 form an integral part of this condensed interim financial information. YUSUF AYOOB Managing Director ZIA ZAKARIA Director 8

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED) FOR THE PERIOD ENDED JUNE 30, 2017 1 The Company and its Operations The Company was incorporated in Pakistan as a public limited company on April 9, 1979. Its shares are quoted at the Pakistan Stock Exchange Limited. The Company owns and operates Sugar and Ethanol manufacturing units which are located at Jhoke Sharif, District Sujawal in the province of Sindh. The Company's registered office is located at 96-A, Sindhi Muslim Cooperative Housing Society, Karachi, Sindh. 2 Basis of Preparation 2.1 This condensed interim financial information is being submitted to the shareholders as required under section 245 of Companies Ordinance, 1984 and have been prepared in accordance with the requirements of the International Accounting Standard-34 "Interim Financial Reporting" as applicable in Pakistan and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differs, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed. The condensed interim financial information does not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Company's annual financial statements for the year ended September 30, 2016. 3 Significant accounting policies and disclosures 3.1 The accounting policies and methods of computation followed for the preparation of this condensed interim financial information are consistent with those followed in the preparation of the company's annual financial statements for the year ended September 30, 2016. 3.2 Due to the seasonal availability of sugarcane, the manufacture of sugar is carried out during the period of availability of sugarcane and costs incurred/accrued up to the reporting date have been accounted for. Accordingly, the costs incurred/accrued after the reporting date will be reported in the subsequent interim and annual financial statements. 3.3 Certain new IFRSs and amendments to existing IFRSs, effective for periods beginning on or after July 1, 2016, do not have any impact on the condensed interim financial information, and are therefore not disclosed. 3.4 The preparation of this condensed interim financial information requires management to make estimates, assumptions and use judgements that affect the application of policies and reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgements are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting extimates are recognized prospectively commencing from the period of revision. Judgements and estimates made by the management in the preparation of this condensed interim financial information are the same as those that were applied to financial statements as at and for the year ended September 30, 2016. 9

4. Property, Plant and Equipment Un-Audited June 2017 Audited September 2016 Operating fixed assets 4.1 2,497,564 2,483,345 Capital work in progress 4.2 58,624 57,730 4.1 OPERATING FIXED ASSETS 2,556,188 2,541,075 Opening book value 2,483,345 2,344,078 Direct additions during the period / year Furniture, Fixture and Fittings 23 965 Office Equipment 1,322 3,737 Vehicle 8,423 12,800 9,768 17,502 Transfer from CWIP during the period / year Owned Non Factory building 20,165 - Plant and Machinery 88,158 254,438 108,323 254,438 Disposals - Operating assets (net book value) Plant and Machinery (650) (1,316) Vehicles (3,753) (785) (4,403) (2,101) Depreciation Charged for the period / year (99,469) (130,572) Closing book value 2,497,564 2,483,345 4.2 CAPITAL WORK IN PROGRESS Opening balance 57,730 80,197 Additions during the period / year Civil Works 5,128 7,578 Plant & Machinery 104,089 224,393 109,217 231,971 Capitalization during the period/year Civil Works (20,165) - Plant & Machinery (88,158) (254,438) (108,323) (254,438) Closing balance 58,624 57,730 10

Un-Audited June 2017 Audited September 2016 5. INTANGIBLE ASSET ERP Software Cost 5,917 5,917 Accumulated amortization Opening balance (5,917) (5,409) Amortization charged during the period / year - (508) Cost of ERP software has been amortized over the period of three years on straight line basis as per company policy: However the software is still in use of the company. 6. CONTINGENCIES AND COMMITMENTS 6.1 Contingencies There is no material change in status of contingencies as disclosed in note No. 25 (a) of the annual financial statements for the year ended September 30, 2016. 6.2 Commitments Un-Audited June 2017 Audited September 2016 Commitments for capital expenditure 204,339 20,247 Commitments for stores and spares 19,026 2,411 223,365 22,658 Bank Gurantees in favor of Excise and Taxation Department 500 500 7. COST OF SALES For the Nine Month October to June 2017 2016 For the Quarter April to June 2017 2016 Openign stock of finished goods 851,715 1,577,261 3,158,431 2,785,148 Cost of goods manufactured 4,830,946 3,937,283 533,832 525,658 5,682,661 5,514,544 3,692,263 3,310,806 Closing stock of finished goods (Note 7.1) (2,794,091) (1,711,676) (2,794,091) (1,711,676) 2,888,570 3,802,868 898,172 1,599,130 7.1 Finished goods costing Rs. 2,686.645 million (June 2016: Rs. 24.439 million) have been written down to their net relaizable value of Rs. 2,468.973 million (June, 2016 : Rs. 21.813 million). At period end stock pledged against short term borrowings amounted to Rs.1,870 million (June 2016 : 362 million). 11

8. TRANSACTION WITH RELATED PARTIES. Related parties comprise of associated entities, staff retirement funds, directors and key management personnel. The transactions with balances of related parties during the period/as at period end are given below: Transactions: Relationship with the Company Nature of Transactions Associates Al-Noor Sugar Mills Limited Purchase of Goods 416,142 313,091 Reliance Insurance Company Ltd Insurance premium 14,230 13,607 ======do====== Insurance claim 780 1,000 Other related parties Directors' and key management personnel Directors remuneration 18,098 19,055 Executive remuneration 48,487 39,756 Directors' meeting fee 95 120 Staff provident fund Company's Contribution during the period 3,625 3,272 Balances: Relationship with the Company Nature of Transactions 9. RELATIONSHIP WITH THE ISLAMIC AND CONVENTIONAL FINANCIAL INSTITUTION The Company in the normal course of business deals with sole Islamic financial institutions as well as the financial institutions who operate both the conventional side and Islamic window. The details segregation between Shariah complaints and conventional assets/liabilites and income/expenditure are given below: As at June 30, 2017 Rupees in thousand Islamic Mode Conventional Total June 2017 June 2017 As at September 30, 2016 Rupees in thousand June 2016 September 2016 Associates Al-Noor Sugar Mills Limited Loans and advances 29,411 - Reliance Insurance Company Ltd Trade & other payables 3,881 - Other receivables - - Staff provident fund Trade & other payables 915 679 Islamic Mode Conventional Total Long term financing-musharka and others finance 737,500 114,757 852,257 277,775 479,167 756,942 Current portion of long term finance 62,500 273,308 335,808 100,925 288,308 389,233 800,000 388,065 1,188,065 378,700 767,475 1,146,175 Trade and other payables -Murabaha/Istisna 881,178-881,178 120,000-120,000 Accrued finance cost 22,774 36,811 59,585 8,457 12,921 21,378 Short term borrowings - 2,845,581 2,845,581-332,295 332,295 Cash at banks (8,521) (41,954) (50,475) (3,153) (54,210) (57,363) 1,695,431 3,228,503 4,923,934 504,004 1,058,481 1,562,485 Nine months ended June 30, 2017 Rupees in thousand Islamic Mode Conventional Total Nine months ended June 30, 2016 Rupees in thousand Islamic Mode Conventional Total Finance cost 57,957 89,119 147,076 45,130 96,436 141,566 Income from PLS bank account - - - - (11) (11) 57,957 89,119 147,076 45,130 96,425 141,555 12

10. SEGMENT INFORMATION The Company's operating businesses are organized and managed separately according to the nature of products produced with each segment representing a strategic business unit that offer different products and serves different markets. The sugar segment is the manufacturer of the sugar and ethanol segment is a manufacturer of ethanol. The following tables represents revenue and profit information regarding business segment for the nine months period ended June 30, 2017 and June 30, 2016 and assets and liabilities information regarding business segments as at June 30, 2017 and September 30, 2016. Sugar Ethanol Consolidated Nine months period ended June 30, Nine months period ended June 30, Nine months period ended June 30, 2017 2016 2017 2016 2017 2016 REVENUE External Sales 1,699,077 2,804,625 1,541,383 1,478,689 3,240,460 4,283,314 Inter segment transfer 261,375 176,565 - - 261,375 176,565 Total 1,960,452 2,981,190 1,541,383 1,478,689 3,501,835 4,459,879 RESULTS Profit from operation (200,907) 129,018 279,888 130,353 78,981 259,371 Other operating expenses (1,977) (10,585) Other income 8,991 5,490 Finance cost (147,076) (141,555) Profit before tax (61,081) 112,721 Taxation 63,756 (29,324) Profit for the period 2,675 83,397 SEGMENT ASSETS AND LIABILITIES June 2017 September 2016 June 2017 September 2016 June 2017 September 2016 Assets Segment assets 4,261,372 2,242,097 2,596,809 1,581,379 6,858,181 3,823,476 Un-allocated assets 135,665 130,140 Long term investment 3,097 3,097 Total assets 6,996,943 3,956,713 Liabilities Segment liabilities 4,130,553 1,705,835 1,189,382 531,604 5,319,935 2,237,439 Unallocated liabilites 3,485 2,150 5,323,420 2,239,589 Nine Month June 30, Nine Month June 30, Nine Month June 30, 2017 2016 2017 2016 2017 2016 Additions to property, plant and equipment 81,507 146,617 37,478 68,526 118,985 215,143 Depreciation 55,995 53,539 43,474 43,084 99,469 96,623 Amortization - 294-214 - 508 13

Revenue from major customers During the period external sales to major customers amounted to Rs. 1,491 million. (June 2016: Rs. 1,049 million) Geographical information All non-current assets of the Company are located in Pakistan. Company's local external sales represent sales to various external customers in Pakistan as well as outside Pakistan as follows: Pakistan 993,916 2,804,314 Asian countries other than Pakistan 1,428,846 312,000 Europe 817,698 1,167,000 3,240,460 4,283,314 11. WORKERS PROFIT PARTICIPATION FUND, WORKERS WELFARE FUND AND TAXATION Allocation to the Worker's Profit Participation Fund, Worker's Welfare Fund and provision for taxation are provisional. Final Liability would be determined on the basis of annual results. 12. FAIR VALUES Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly observable or estimated using another valuation technique. The Company while assessing fair values uses calcuation techinques that are appropriate in the circumstances using relevant observable data as far as possible and minimizing the use of unobservable inputs. Fair values are categorized into following three levels based on the input used in the valuation techinques: - Level 1: Quoted prices in active markets for identical assets or liabilities that can be assessed at measurement. - Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) - Level 3: Inputs are unobservable inputs for the asset or liability. Inputs for the asset or liability that are not based on observation market data (that is, unobservable inputs). Financial assets and liabilities of the Company are either short term in nature or are repriced periodically therefore; their carrying amounts approximate their fair values. 14

13. AUTHORIZATION This condensed interim financial information was authorized for issue on July 25, 2017 by the Board of Directors of the Company. 14. GENERAL 14.1 Figures have been rounded off nearest to thousand rupees. YUSUF AYOOB Managing Director ZIA ZAKARIA Director 15

2017 16

17

2016 2017 18

BOOK POST PRINTED MATTER If undelivered please return to : SHAHMURAD SUGAR MILLS LTD. 96-A, SINDHI MUSLIM SOCIETY, KARACHI-74400.