Karachi: The Directors of Gulshan Spinning Mills Limited presented their annual report, alongside the Auditor's Report and audited Financial Statements, to the shareholders at the company's Annual General Meeting for the year ending June 30, 2026.

The report highlights that due to the company's ongoing financial challenges, there has been a strategic move to address existing financial liabilities through a Scheme of Arrangement under sections 279 to 283 and 285 of the Companies Act 2017. This legal arrangement, filed with the Sindh High Court in Karachi under J.C.M. Petition No. 14/19, was sanctioned by the court on February 06, 2020, and is currently in the process of implementation. The scheme also includes the withdrawal of pending litigation involving the company and various financial institutions. However, the cessation of the company's operations has led to a notable depreciation in the value of its assets.

According to the financial performance detailed in the report, Gulshan Spinning Mills Limited recorded no sales and no cost of goods sold for the fiscal year 2026, consistent with the previous year. The financial cost for 2026 was reported at Rs 162,229, a decrease from Rs 10,220 in 2025. More significantly, the company's pre-tax loss for the year 2026 increased dramatically to Rs 44.39 million, up from Rs 8.03 million in the previous year. This represents a very large or significant move in the company's financial losses. There was no provision for taxation in either year.

According to information available from the Pakistan Stock Exchange (PSX), these figures highlight the pressing financial difficulties faced by Gulshan Spinning Mills Limited. The loss after taxation mirrored the pre-tax loss figures, with the company reporting a loss of Rs 44.39 million in 2026 compared to Rs 8.03 million in 2025.

The company's financial outlook remains uncertain as it continues to implement the court-sanctioned Scheme of Arrangement aimed at addressing its debt obligations.