Karachi: A significant financial milestone was achieved by Faran Sugar Mills Limited (FSM) as the company completed the subscription process for its right shares, according to an auditors' certificate issued by Russell Bedford Rahman Sarfaraz Rahim Iqbal Rafiq. The audit firm was tasked with verifying the subscription amount received, as required by the Pakistan Stock Exchange Limited (PSX) and the Central Depository Company of Pakistan (CDC). The certification confirms that FSM has adhered to all necessary regulatory and agreement requirements.
The management of FSM has demonstrated responsibility in ensuring the subscription amount's receipt aligns with applicable regulations and agreements. Additionally, they have guaranteed that the right issue of share capital complies with the Companies Act 2017, CDC regulations, and PSX requirements, as stipulated in the letter from PSX. This meticulous adherence ensures all obligations are met.
The audit firm's responsibility was to certify the full receipt of the subscription amount against the right shares based on specific procedures. Verification included reviewing documents such as the Board of Directors' resolution dated August 26, 2024. This resolution approved the issuance of 14.50 million ordinary shares at Rs. 10 each, offered as right shares at a price of Rs. 35 each, which includes a Rs. 25 premium. Shareholders were provided 58 right shares for every 100 ordinary shares held.
The auditors confirmed that the subscription amount of Rs. 507.64 million was deposited by January 20, 2025, into the designated bank account at Meezan Bank Limited. The subscription money was received through CDC’s online payment option, ensuring a streamlined process and compliance with modern financial practices.
According to information available from the Pakistan Stock Exchange (PSX), FSM has honored all allotment-related requirements, as represented by the company's management. This successful completion of the right shares subscription is a testament to FSM's robust financial management and strategic planning, marking a pivotal moment in its market category.