Karachi: Faran Sugar Mills Limited has announced historical losses for the past fiscal year, attributing the downturn primarily to inconsistent government policies that have created an uncertain business environment for the sugar industry. The announcement was made public in the company’s Chairman’s Review Report, dated October 2023.

The company’s leadership cited multiple factors contributing to these losses, which were largely beyond their control. A significant rise in the Minimum Cane Support Price by 41%, coupled with high inflation, soaring financial costs, and delays in export quotas, were highlighted as key issues impacting the company’s performance.

Despite the challenging year, the company’s chairman expressed optimism for the ongoing season, pointing to several positive developments. These include a substantial cut in the discount rate, as well as the absence of fixing the minimum support price due to conditions imposed by the International Monetary Fund (IMF). Additionally, a decrease in inflation and political stability are expected to contribute positively to the company’s fortunes.

According to information available from the Pakistan Stock Exchange (PSX), the company’s market performance is closely watched within the designated market category. The chairman also took the opportunity to commend the Board of Directors for their effective role in achieving the organization’s goals and objectives. The Board’s diverse composition, which includes experience in business, finance, banking, and regulations, has been a crucial asset.

The Board of Directors conducted an annual self-assessment review to evaluate its effectiveness and performance, ensuring compliance with all regulatory requirements. The Audit Committee plays a key role by reviewing financial statements and ensuring that the company’s accounts accurately reflect its financial position. The HR Committee oversees the human resources policy framework and makes recommendations regarding the selection and compensation of senior management.

In his closing remarks, the chairman acknowledged the dedication and hard work of the company’s senior executives, staff members, and workers, emphasizing their collective efforts in navigating a challenging fiscal year.