AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore: In their latest annual report, Sally Textile Mills Limited disclosed a year marked by operational shutdowns and deep financial losses, reflecting the ongoing struggles the company faces amidst financial and managerial upheavals. According to information available from the Pakistan Stock Exchange (PSX), these challenges are exacerbated by unresolved disputes with banking institutions and severe internal management crises.
The Lahore-based company reported a net loss of PKR 195.12 million for the year ending June 30, 2024, slightly less than double the loss reported in the previous year, which was PKR 96.17 million. The loss per share has steeply risen from PKR 10.96 to PKR 22.24.
Sally Textile Mills has not seen any turnover due to the halt in operations, with the mill remaining shut throughout the reporting period. The report highlighted the absence of business activities and noted that the board does not anticipate a revival of operations in the near future until issues with banking companies are resolved.
The financial statements reveal a grim picture: total assets have decreased to PKR 1.50 billion from PKR 1.57 billion the previous year. The company’s equity stands negatively at PKR 472.13 million, a significant drop from negative PKR 1.13 billion in the preceding year, mainly due to ongoing losses and a revaluation deficit.
Despite these challenges, the board has managed some cost-cutting measures, primarily in administrative expenses and other operational costs. However, these were not sufficient to stem the tide of losses or make a significant impact on the company’s financial health.
Internal financial controls remain a critical concern, with the audit report raising questions about the effectiveness of current measures under the strained operational conditions. The auditors’ inability to access essential financial data or verify the physical inventory has prevented a thorough assessment of the financial situation, leaving significant uncertainties in their report.
The company continues to face significant risks, particularly with regards to its liquidity and ongoing legal challenges with financial institutions. These factors cast a long shadow over the company’s ability to continue as a going concern.
This report underscores the dire financial health of Sally Textile Mills and the crucial need for a strategic overhaul if the company is to avoid liquidation and resume operations.
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