Karachi: Suhail Jute Mills Limited, in its 45th Annual Report for the financial year ending June 30, 2026, disclosed ongoing operational challenges as it continues to struggle with financial and economic hurdles. The report highlights the company's inability to resume commercial production due to a lack of working capital finance, resulting in the company not being considered a 'going concern' and presenting its financial statements on a 'realizable basis'.
The annual report, released on October 6, 2026, outlines the difficulties faced by the company, which has not been operational since 2010 after unprecedented floods severely damaged its manufacturing facilities. Efforts to dispose of surplus assets intended to finance a restart of operations have faced delays, exacerbated by the prevailing economic and political instability in the country.
According to information available from the Pakistan Stock Exchange (PSX), Suhail Jute Mills Limited incurred a loss of RS.57.507 million, translating to a loss of RS.13.27 per share during the year, compared to a loss of RS.55.135 million, or RS.12.72 per share, in the previous financial year. This represents a significant move in the company's financial performance.
The report details that the company's board of directors experienced changes during the year due to the passing of CEO Sohail Farooq Shaikh. His position was filled by Mohammed Shahmeer Shaikh, who also took on the role of CEO, while Suriya Sohail Shaikh joined the board as a director.
Despite financial setbacks, the principal shareholders have continued to support the company by funding essential administrative expenses. The report emphasizes the ongoing efforts to implement the merger plan approved by the Court, which involves asset disposal to repay creditors and provide necessary working capital.
The company's auditors reported no adverse qualifications, although they presented the accounts on a 'realizable basis' due to the company's non-operational status. The company remains domiciled in Pakistan and has no subsidiaries.
In conclusion, the report underscores the critical need for successful asset disposal to enable the company to overcome current challenges and resume operations. However, it acknowledges that the timing and success of these efforts remain uncertain, given the broader economic and political environment.