Karachi, January 01, 2013 (PPI-OT): In compliance of Rule 6 of The Companies (Issue of Capital) Rules, 1996 we inform you that the Board of Directors of Mitchell’s Fruit Farms Limited (MFFL) in its meeting held on December 31, 2012 recommended to issue 25% bonus shares to the shareholders of the company.
A certificate from the auditors confirming that the free reserves and surpluses retained after the issue of bonus shares will not be less than twenty five percent of the increased capital is attached with this letter.
In compliance of regulation number 22 of Listing Regulations of Karachi Stock Exchange (Guarantee) Limited, we inform you that in the same meeting the Board of Directors also recommended increase in authorized share capital of the company from Rs. 100,000,000 (10,000,000 ordinary shares of Rs. 10 each) to 200,000,000 (20,000,000 ordinary shares of Rs. 10 each).
Free Reserves for the Issue of Bonus Shares
At your request we have ascertained from the Company’s financial statements for the year ended September 30, 2012 which have been approved by the Board of Directors, that the Company’s residual free reserves, in terms of the meaning given to free reserves in the Companies (Issue of Capital) Rules, 1996 after the proposed issue of the bonus shares of a face value of Rs. 12,600 thousand would be higher than twenty five percent of the enhanced paid up capital of the Company.
We have reviewed the contingent liabilities outstanding as at September 30, 2012 to determine the contingent loss, if any, falling within the scope of paragraph 14 of the International Accounting Standard 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ and confirm that no such liabilities are deductible from the aforementioned ‘Free Reserves’.
The Company’s `Free Reserves’ retained after the issue of bonus shares do not include any reserves created as a result of revaluation of fixed assets or any intangible or fictitious assets such as preliminary expenses, goodwill, brokerage or commission.
For more information, contact:
Mitchell’s Fruit Farms Limited
39-A, D-1, Gulberg III,
Lahore, Pakistan.
Ph: (042) 5872392-96
Fax: (042) 5872398
Website: www.mitchells.com.pk
E-mail: ho@mitchells.com.pk