AL-NOOR SUGAR MILLS LIMITED

BALANCE SHEET AS AT 31ST DECEMBER, 2006

Un-Audited Audited 2006 2006 September December (Rupees in thousand) 200,000 185,703 190,000 196,186 386,186 571,889 362,368 64,345 91,909 4,960 273,542 200,000 185,703 190,000 178,040 368,040 553,743 369,288 67,470 77,568 5,035 277,540

SHARE CAPITAL AND RESERVES Authorised Capital 20,000,000 ordinary shares of Rs. 10.00 each Issued, subscribed and paid-up capital Reserves: General revenue reserve Unappropriated profit

SURPLUS ON REVALUATION OF FIXED ASSETS NON CURRENT LIABILITIES Long term financing Liabilities against assets subject to finance lease Long term deposits Deferred liabilities CURRENT LIABILITIES AND PROVISIONS Trade and other payables Interest/markup accrued Short term borrowings Current portion of non current liabilities Provision for income tax CONTINGENCIES AND COMMITMENTS

496,913 21,595 505,779 114,536 10,532 1,149,355 2,518,368

187,470 25,138 397,809 105,139 7,460 723,016 2,073,660

FIXED ASSETS Properties, plant and equipments LONG-TERM INVESTMENTS LONG TERM DEPOSITS CURRENT ASSETS Stores, spares and loose tools Stock-in-trade Trade debts (unsecured and considered good) Loans and advances Trade deposits and short-term prepayments Other receivables Cash and bank balances

1,468,694 8,607 12,267

1,472,955 8,607 10,742

160,936 329,211 205,139 217,245 2,931 31,755 81,583 1,028,800 2,518,368

131,668 230,809 43,166 109,388 3,638 13,993 48,694 581,356 2,073,660

ISMAIL H. ZAKARIA Chief Executive Officer

SULEMAN AYOOB Director

AL-NOOR SUGAR MILLS LIMITED

PROFIT & LOSS ACCOUNT (UN-AUDITED) FOR THE PERIOD ENDED 31ST DECEMBER, 2006
SUGAR December 2006 376,144 (429,727) 78,049 (351,678) Gross profit Profit from trading activity Adminstration expenses Selling and distribution expenses 24,466 (13,950) (531) (14,481) Operating profit Other income 9,985 December 2005 436,754 (429,008) 54,837 (374,171) 62,583 (11,588) (593) (12,181) 50,402 December 2006 197,847 (143,287) (12,850) (156,137) 41,710 394 (12,297) (1,669) (13,966) 28,138 BOARD December 2005 154,898 (106,532) (17,078) (123,610) 31,288 602 (8,706) (1,203) (9,909) 21,981 December 2006 573,991 (573,014) 65,199 (507,815) 66,176 394 (26,247) (2,200) (28,447) 38,123 0 38,123 Financial charges Other charges (26,322) (1,228) (27,550) Profit before taxation Taxation Profit after taxation Unappropriated profit brought forward Unappropriated profit carried forward 10,573 653 11,226 178,040 189,266 (Rupees in thousand) TOTAL December 2005 591,652 (535,540) 37,759 (497,781) 93,871 602 (20,294) (1,796) (22,090) 72,383 287 72,670 (27,522) (3,102) (30,624) 42,046 1,057 43,103 119,554 162,657

Sales Cost of goods sold Cost of goods manufactured Difference of opening and closing inventory of finished products

ISMAIL H. ZAKARIA Chief Executive Officer

SULEMAN AYOOB Director

AL-NOOR SUGAR MILLS LIMITED

CASH FLOW STATEMENT FOR THE PERIOD ENDED 31ST DECEMBER, 2006 2006 2005 (UN-AUDITED)
December December (Rupees in thousand) CASH FLOW FROM OPERATING ACTIVITIES Profit before taxation Adjustment for non cash charges and other items: Depreciation Provision for employees compensated absences Financial charges Cash generated before working capital changes (Increase)/decrease in current assets Stores and spares Stock-in-trade Trade debts Loans, advances, prepayments and other receivables (excluding income tax) Increase in current liabilities Creditors accrued and other liabilities (excluding financial charges & unclaimed dividend) Cash generated from/(used in) from operations Taxes paid Financial charges paid Gratuity paid Net cash generated/(used in) operating activities CASH FLOW FROM INVESTING ACTIVITIES Fixed capital expenditure Net cash used in investing activities CASH FLOW FROM FINANCING ACTIVITIES Obligation under finance lease Long term deposits Repayment of redeemable capital and finance lease Short term running finance and borrowings Dividends Net cash generated from financing activities Net decrease in cash and cash equivalents Cash and bank balance at the beginning of the year Cash and bank balance at the end of period 34,014 (1,524) (13,400) 107,970 (27) 127,033 32,889 48,694 81,583 20,050 (34,052) (6,413) (20,415) 57,185 65,088 122,273 10,573 27,263 26,322 64,158 (29,824) (98,032) (161,973) (123,086) (412,915) 42,046 25,071 1 27,522 94,640 (15,755) (70,309) (48,970) 24,319 (110,715)

314,377 (34,380) (2,484) (34,006) (271) (71,141) (23,003) (23,003)

161,260 145,185 (10,930) (28,555) (561) 105,139 (27,539) (27,539)

ISMAIL H. ZAKARIA Chief Executive Officer

SULEMAN AYOOB Director

AL-NOOR SUGAR MILLS LIMITED

STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31ST DECEMBER, 2006
(Rupees in thousand)
Issued, subscribed & paid up General capital reserves Unrealized loss on Unapprorevaluation priated of investment profit

Particulars December 31, 2005 Balance as at September 30, 2005 Net profit for the period Reversal of diminution in value of investment Amount of incremental depreciation arising due to surplus on revaluation of fixed assets Balance as at December 31, 2005 December 31, 2006 Balance as at September 30, 2006 Net profit for the period Amount of incremental depreciation arising due to surplus on revaluation of fixed assets Balance as at December 31, 2006

Total

185,703 185,703

100,000 100,000

5,087 4,950 10,037

119,554 43,103 7,608 170,265

410,344 43,103 4,950 7,608 466,005

185,703 185,703

190,000 190,000

178,040 11,226 6,920 196,186

553,743 11,226 6,920 571,889

EARNING PER SHARE - BASIC Earning after taxation before the effect of reversal of incremental depreciation due to revalued fixed assets. Weighted average number of ordinary shares 18,570,252 (2005: 18,570,252) ordinary shares Earning per share There is no dilutive effect on the basic earning per sahre.

2006 2005 December December (Rupees in thousand) 11,226 43,103

0.60

2.32

ISMAIL H. ZAKARIA
Chief Executive Officer

SULEMAN AYOOB Director

AL-NOOR SUGAR MILLS LIMITED

FOR THE PERIOD ENDED DECEMBER 31, 2006 (UNAUDITED)
1. SELECTED EXPLANATORY NOTES TO THE ACCOUNTS 1.1 The Company and its Operations The Company was incorporated in Pakistan as a public limited company under Companies Act, 1913 (now Companies Ordinance, 1984). The shares of the company are quoted on Karachi and Lahore Stock Exchanges in Pakistan. The principal business of the company is manufacture and sale of sugar and medium density fiber board. The Company's manufacturing facilities are located at Shahpur Jahania, District Nawabshah in the province of Sindh. 1.2 Accounting Connvention These financial statements have been prepared under 'historical cost convention', except that certain fixed assets have been included at revaluation, exchange differences have been incorporated in the cost of relevant assets and investments have been valued at fair value.

1.3 Basis of Preparation 'These financial statements are unaudited but subject to limited scope review by auditors and are being submitted to the shareholders as required under Section 245 of the 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. 1.4 Accounting Policies The accounting policies and methods of computation followed in the preparation of these financial statements are the same as those of the published annual financial statements for the year ended September 30, 2006.

1.5 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 upto the reporting date have been accounted for. Accordingly, the costs incurred / accrued after the reporting date will be reported in subsequent interim and annual financial statements. 2. CONTINGENCIES AND COMMITMENTS 2.1 Contingencies There is no material change in the status of contingencies as disclosed in the published annual financial statements for the year ended September 30, 2006. Unaudited Audited December 31, September 30, 2006 2006 Rupees in '000 2.2 Commitment Letters of credit 25,371 Unaudited 70,585 Audited

December 31, September 30, 2006 2006 ------- Rupees in '000 ------3. PROPERTY, PLANT AND EQUIPMENT Operating fixed assets Opening book value Add: Additions during the period Transfer from capital work in progress Less: Disposal during the period Less: Depreciation for the period / year Capital work in progress Opening book value Add: Additions during the period Less:Transfer during the period

1,443,502 5,921 1,449,423 1,449,423 (27,263) 1,422,160 29,455 17,079 46,534 1,468,694

1,372,402 10,084 170,355 1,552,841 (30) 1,552,811 (109,311) 1,443,500 83,701 116,109 (170,355) 29,455 1,472,955

4.

5.

Trade debtors include Rs.13.392 million (2006: nil) due from an associated company in respect of sales. Unaudited Unaudited December 31, December 31, 2006 2005 ------- Rupees in '000 ------TRANSACTION WITH RELATED PARTIES Associates Sales 13,392 15,246 Insurance premium paid 1,355 2,668 Term of transactions with associates The transaction with related parties are made at commercial terms. Outstanding balances at the period end represents the insurance premum payable to, and account receivables from, associated undertakings. There have been no guarantees provided or received for any related party receivables or payables. Key management personnel Directors' remuneration Executives' remuneration Terms of transactions with key management personnel Remuneration and benefits to the key management personnel are under the term of their employment. Contribution made to provident fund 90 68 725 1,963 725 1,440

6.

APPROVAL OF FINANCIAL STATEMENTS These financial statements were authorized for issue on 26th January, 2006 by the Board of Directors of the Company. GENERAL Figures have been rounded off nearest to thousand rupee.

7.

ISMAIL H. ZAKARIA Chief Executive

SULEMAN AYOOB Director