Lahore: Shakarganj Limited has reported significant financial challenges as detailed in its financial results for the second quarter and six-month period ended March 31, 2025. During a board meeting held on May 29, 2025, via video link, the Board of Directors announced no cash dividends, bonus shares, or right shares for the period, indicating the company's ongoing financial difficulties.

The auditors' review report highlighted a loss after taxation amounting to Rs. 1,655.77 million for the half-year period, increasing the accumulated loss to Rs. 6,707.07 million as of the reporting date. The textile segment of the company remained closed throughout the period and the previous year, further compounding the financial strain. Additionally, the company faces overdue statutory obligations and legal challenges delaying the disposal of certain assets.

According to information available from the Pakistan Stock Exchange (PSX), Shakarganj Limited's current financial state reflects an adverse current ratio and a lack of written commitment from directors or shareholders to finance its essential obligations and working capital needs. The auditors have expressed concern over the company's ability to continue as a going concern, citing unresolved material uncertainties.

Despite these challenges, Shakarganj Limited has prepared its financial statements on a going concern basis, as referenced in Note 1.2 of the statements. The company's unconsolidated and consolidated financial reports for the period will be transmitted through the Pakistan Unified Corporate Action Reporting System (PUCARS) within the specified timeline.

The company's persistent financial difficulties raise questions about its future stability and operational viability, particularly in light of the ongoing closure of the textile segment and the need for funds to upgrade its plant and machinery at Jhang.