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CONTENTS

Corporate Information 2

Directors’ Review 3

Condensed Interim Balance Sheet 4

Condensed Interim Profit and Loss Account 5

Condensed Interim Cash Flow Statement 6

Condensed Interim Statement of Changes in Equity 7

Notes to the Condensed Interim Financial Information 8

CORPORATE INFORMATION

Board of Directors Mr. Naveed M. Sheikh - ChairmanMr. Waqar Ibn Zahoor Bandey - Director/CEOMian Muhammad Ali - DirectorMr. Muhammad Asghar - DirectorMr. Ahmed Haji Mussa - DirectorMr. Asad Ali - DirectorMs. Samina Gul - Director

Chief Financial Officer Mr. Saifullah Sheikh

Company Secretary Mr. Abdul Mansoor Khan

Audit Committee Mr. Muhammad Asghar - ChairmanMian Muhammad Ali - MemberMs. Samina Gul - Member

Executive Committee Mr. Naveed M. Sheikh - ChairmanMr. Waqar Ibn Zahoor Bandey - MemberMs. Samina Gul - Member

Financial Institutions National Bank of PakistanMCB Bank LimitedFaysal Bank LimitedKASB Bank LimitedThe Bank of PunjabAl-Baraka Bank (Pakistan) LimitedPak Oman Investment Company Limited

Auditors Naveed Zafar Husain Jaffery & Co.Chartered Accountants

Legal Advisors Imtiaz Siddiqui & AssociatesAdvocates & Solicitors

Registered Office Ismail Aiwan-e-Science Building, 205-Ferozepur RoadLahore - 54600 UAN # (042) 111-COLONY

Fax # (042) 3576-3247

Shares Registrar Drummonds (Pvt) LimitedSuit # 204-206, 2nd Floor, Al-Qadir Heights1-Babar Block, New Garden TownLahorePh # 042-35846644-5

Production Facilities Phalia Project Mian Chanu ProjectKarmanwala, Tehsil Phalia Chak # 84/15L, 15 KMDistt. Mandi Bahauddin. Vehari Road, Kacha KhooPh # (0546) 541-151/54 Tehsil Mian ChanuFax # (0546) 541-162 Distt. Khanewal.

Ph # (0652) 553-182Fax # (0652) 660-452

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DIRECTORS' REVIEW

Dear Members

Your directors are pleased to present the condensed un-audited interim financial information of the company

for the first quarter ended on December 31, 2011.

Turnover for the quarter under review is Rupees 976 Million (2010: Rupees 914 Million) whilst the cost of

sales stood at Rupees 780 Million (2010: Rupees 721 Million) bringing gross profit to Rupees 196 Million

(2010: Rupees 193 Million). After making provision for tax, profit for the quarter is Rupees 7 Million (2010:

Rupees 10 Million) and earnings per share is Rupees 0.07 as compared with Rupees 0.10 for the last

quarter. Despite several challenges like financial cost, inflationary pressure of inputs and depressed selling

price of sugar, company managed to be in profit.

Sugarcane cultivation was enhanced for the current crushing season mainly on account of healthy returns

to growers in prior years and high support price of sugarcane fixed by the Government for the current season

(Punjab Government increased sugarcane support price from Rupees 125 to Rupees 150 per 40 Kg). In

view of better availability of sugarcane coupled with increased recovery, we expect higher production for

the current year.

Board is thankful to the valuable Members, Growers, Banks and Government departments for their trust,

contribution, persistent support and patronage and would like to place on record its gratitude to all the

Employees of the company for their dedication and hard work.

For and on behalf of the Board

Lahore Naveed M. SheikhJanuary 30, 2012 Chairman

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4

CONDENSED INTERIM BALANCE SHEETAS AT DECEMBER 31, 2011

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorised capital100,000,000 (2011: 100,000,000)ordinary shares of Rupees 10/- each. 1,000,000 1,000,000

Issued, subscribed and paid up capital 8 990,200 990,200Unappropriated profit 541,610 534,743

1,531,810 1,524,943

NON-CURRENT LIABILITIESLong term finances 9 961,834 1,097,528Staff retirement benefits 12,642 12,943Deferred taxation 5,000 5,000

979,476 1,115,471

CURRENT LIABILITIESTrade and other payables 1,698,906 527,388Accrued finance cost 95,811 121,221Short term borrowings-secured 10 1,253,242 1,625,102Current portion of long term finances 232,430 137,500Provision for taxation 37,576 35,269

3,317,965 2,446,480

Contingencies and commitments 11 -)))) -))))

5,829,251 5,086,894

PROPERTY AND ASSETS

NON-CURRENT ASSETSProperty, plant and equipment 7 3,476,875 3,515,925

CURRENT ASSETSStores, spares and loose tools 157,331 135,899Stocks in trade 1,737,156 896,981Trade debts -)))) 324,547Advances, deposits, prepayments and other receivables 220,872 196,583Cash and bank balances 237,017 16,959

2,352,376 1,570,969

5,829,251 5,086,894

The annexed notes form an integral part of these condensed interim financial information.

Un-AuditedDecember 31,

2011

AuditedSeptember 30,

2011(Rupees in thousand)

Note

DirectorChief Executive Officer

Sales - net 13 976,121 914,334

Cost of sales 13 780,215 721,194

Gross profit 195,906 193,140

Administrative expenses 13 28,380 25,643Distribution and marketing expenses 13 45,766 44,614

74,146 70,257

Operating profit 121,760 122,883Other operating income 118 65

121,878 122,948

Finance cost 104,375 102,941Other operating expenses 875 1,000

105,250 103,941

Profit before taxation 16,628 19,007Provision for taxation 9,761 9,196

Profit for the period 6,867 9,811

Earnings per share - basic & diluted 0.07 0.10

The annexed notes form an integral part of these condensed interim financial information.

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DirectorChief Executive Officer

CONDENSED INTERIM PROFIT AND LOSS ACCOUNTFOR THE FIRST QUARTER ENDED DECEMBER 31, 2011 (Un-Audited)

December 31,2011

December 31,2010

(Rupees in thousand)Note

6

DirectorChief Executive Officer

CONDENSED INTERIM CASH FLOW STATEMENTFOR THE FIRST QUARTER ENDED DECEMBER 31, 2011 (Un-Audited)

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation 16,628 19,007Adjustments for non-cash and other items:

Finance cost 104,375 102,941Depreciation of property, plant and equipment 41,204 35,082Employees' retirement benefits - gratuity 226 200Workers' profit participation fund 875 1,000

146,680 139,223

Cash generated from operating activities beforeworking capital changes 163,308 158,230

Adjustments for Working Capital Changes(Increase)/Decrease in current assets:

Stores, spares and loose tools (21,432) 8,861Stocks-in-trade (840,175) (440,429)Trade debts 324,547 89,106Advances, deposits, prepayments and other receivables (16,488) 17,266

Increase in current liabilities:Trade and other payables 1,170,643 329,520

Net working capital changes 617,095 4,324

Finance cost paid (129,784) (144,763)Employees' retirement benefits - gratuity paid (527) (1)Income tax paid (15,256) 519

(145,567) (144,245)

Net cash generated from operating activities 634,836 18,309

CASH FLOWS FROM INVESTING ACTIVITIES

Net cash used in investing activities - fixed capital expenditure (2,154) (71)

CASH FLOWS FROM FINANCING ACTIVITIES

Short term borrowings (371,860) 161,807Long term finances-repaid (net) (40,764) (23,612)

Net cash (used)/generated in financing activities (412,624) 138,195

Net increase in cash and cash equivalents 220,058 156,433

Cash and cash equivalents at the beginning of the period 16,959 37,576

Cash and cash equivalents at the end of the period 237,017 194,009

The annexed notes form an integral part of these condensed interim financial information.

December 31,2011

December 31,2010

(Rupees in thousand)

DirectorChief Executive Officer

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CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITYFOR THE FIRST QUARTER ENDED DECEMBER 31, 2011 (Un-Audited)

Balance as on September 30, 2010 990,200 469,032 1,459,232

Profit for the quarter -)))) 9,811 9,811

Balance as on December 31, 2010 990,200 478,843 1,469,043

Balance as on September 30, 2011 990,200 534,743 1,524,943

Profit for the quarter -)))) 6,867 6,867

Balance as on December 31, 2011 990,200 541,610 1,531,810

The annexed notes form an integral part of these condensed interim financial information.

(Rupees in thousand)

ParticularsSharecapital

Unappropriatedprofit

Totalequity

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SELECTED EXPLANATORY NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONFOR THE FIRST QUARTER ENDED DECEMBER 31, 2011 (Un-Audited)

1. THE COMPANY AND ITS OPERATION

Colony Sugar Mills Limited ("the Company") was incorporated in Pakistan on May 09, 2007 under theCompanies Ordinance, 1984. The shares of the company are quoted on Karachi Stock Exchange(Guarantee) Limited. The Company's registered office is situated in Lahore and its manufacturingfacilities are located at Tehsil Phalia, District Mandi Bahauddin and Tehsil Mian Channu, DistrictKhanewal. The company is engaged in manufacturing and sale of white refined sugar and ethanol.

2. STATEMENT OF COMPLIANCE

This condensed interim financial information has been prepared, in all material respects, in accordancewith the requirements of International Accounting Standard (IAS) 34, "Interim Financial Reporting",as applicable in Pakistan. This condensed interim financial information is un-audited and is beingsubmitted to the members as required by section 245 of the Companies Ordinance, 1984 and listingregulation of Karachi Stock Exchange.

3. BASIS OF PRESENTATION, MEASUREMENT AND ESTIMATIOIN

Estimates used in the preparation of these condensed interim financial information are reasonableunder the circumstances, continually evaluated and are based on historical experience. The basisof presentation and measurement adopted for the preparation of these condensed interim financialinformation are the same as those adopted in the preparation of the preceding annual publishedaudited financial statements for the year ended September 30, 2011.

4. SIGNIFICANT ACCOUNTIING POLICIES

The accounting policies adopted and applied for the preparation of this condensed interim financialinformation are the same as those applied in the preparation of preceding annual published auditedfinancial statements of the Company for the year ended September 30, 2011.

5. SEASONALITY OF OPERATION

The Company is inter-alia, engaged in manufacturing of sugar for which the season begins in Novemberand ends in April. Therefore, majority of expenses are incurred and production activities are undertakenin first half of the Company's financial year.

6. PROVISIONS

The provision in respect of staff retirement benefits, workers' profit participation fund and taxation areestimated and these are subject to final adjustments in the annual audited financial statements.

7. PROPERTY, PLANT AND EQUIPMENT

Opening book value 3,515,925 3,022,160Add: Additions during the period 7.1 2,154 655,593

3,518,079 3,677,753

Less:Depreciation charged during the period (41,204) (161,828)

3,476,875 3,515,925

Un-AuditedDecember 31,

2011

AuditedSeptember 30,

2011(Rupees in thousand)

7.1 Addition during the period

Company owned assetsBuilding on freehold land -)))) 6,340Plant and machinery 11 645,215Furniture, fixture and equipments 3 3,908Vehicles 2,140 130

2,154 655,593

8. ISSUED, SUBSCRIBED AND PAID UP CAPITAL

64,020,000 ( September 30, 2011: 64,020,000 )Ordinary shares of Rupees 10 each fully paid in cash 640,200 640,20035,000,000 ( September 30, 2011: 35,000,000 )Ordinary shares of Rupees 10 each issued as fullypaid for consideration other than cash 350,000 350,000

990,200 990,200

8.1 26,506,961 (2011: 26,506,961) ordinary shares of the Company are held by Colony Mills Limited.

9. LONG TERM FINANCES-Secured

Outstanding balance 1,194,264 1,235,028Current portion shown under current liabilities (232,430) (137,500)

961,834 1,097,528

10. SHORT TERM BORROWINGS-Secured

The aggregate facility of short term borrowings available from commercial banks is Rupees 1,650million (September 30, 2011: Rupees 2,000 million). These facilities are secured against pledge overstocks, current assets and personal guarantee of a director. The rates of mark up range from 11.00%to 16.73% (September 30, 2011: 9.00% to 17.30%) per annum.

11. CONTINGENCIES AND COMMITMENTS

ContingenciesThere are no significant changes in contingencies since the last published annual audited financialstatements.

CommitmentsNil - ( December 31, 2011: Nil)

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Un-AuditedDecember 31,

2011

AuditedSeptember 30,

2011(Rupees in thousand)

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12. TRANSACTIONS WITH RELATED PARTIESDURING THE QUARTER UNDER REFERENCE

Colony Mills Limited Long term musharika finance - outstanding -)))) 87,626Profit on long term musharika finance charged 3,494 3,549

Colony Industries (Private) LimitedLong term musharika finance - outstanding 246,696 309,070Profit on long term musharika finance charged 12,542 12,519

December 31,2011

December 31,2010

(Rupees in thousand)

For the first quarter ended December 31, 2011Sugar Ethanol Total

(Rupees in thousand)

For the first quarter ended December 31, 2010Sugar Ethanol Total

(Rupees in thousand)

13. BUSINESS SEGMENTS INFORMATION

Revenue

Local 694,300 9,031 703,331 584,801 5,614 590,415Export -)))) 325,524 325,524 -)))) 335,339 335,339inter-segment 123,477 -)))) -)))) -)))) -)))) -))))

817,777 334,555 1,028,855 584,801 340,953 925,754Less:Sales tax, excise duty

and commission 51,488 1,246 52,734 2,383 9,036 11,420

766,289 333,309 976,121 582,418 331,916 914,334

Segment expenses

Cost of salesExternal 617,475 162,740 780,215 387,458 333,736 721,194Inter-segment -)))) 123,477 -)))) -)))) -)))) -))))

617,475 286,217 780,215 387,458 333,736 721,194

Gross profit 148,814 47,092 195,906 194,960 (1,820) 193,140

Administrative and generalexpenses 25,703 2,677 28,380 23,129 2,514 25,643Distribution and marketingexpenses 3,434 42,332 45,766 2,548 42,066 44,614

29,137 45,009 74,146 25,677 44,580 70,257

Operating profit 119,677 2,083 121,760 169,283 (46,400) 122,883

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As at December 31, 2011

Sugar Ethanol Total

(Rupees in thousand)

As at September 30, 2011

Sugar Ethanol Total

(Rupees in thousand)

13.3 Segment assets 4,768,902 1,060,349 5,829,251 3,871,050 1,215,843 5,086,893

13.4 Segment liabilities 3,451,439 841,003 4,292,442 2,606,989 949,962 3,556,951

13.5 Depreciation onproperty, plant andequipment 28,772 12,432 41,204 113,972 47,856 161,828

14. DATE OF AUTHORIZATION FOR ISSUE

This condensed interim financial information was authorized for issue on January 30, 2012 by theBoard of Directors of the Company.

15. GENERAL

15.1 Corresponding figures in the balance sheet comprise of balances as per the annual auditedfinancial statements for the year ended September 30,2011, whereas corresponding figures inthe profit and loss account, cash flow statement and statement of changes in equity comprisebalances of the comparable period of immediatly preceding financial year.

15.2 Corresponding figures have been rearranged wherever necessary to facilitate comparison.However, no material re-arrangement has been made in these condensed interim financialstatements.

15.3 Figures in this condensed interim financial information have been rounded off to the nearestthousand rupees.

DirectorChief Executive Officer

13.1 Inter-segment sales and purchases

Inter-segment sales and purchases have been eliminated from total figures.

13.2 Basis of inter-segment pricing

All inter -segment transfers are made at cost.