Karachi: Gulistan Spinning Mills Limited, in its latest financial disclosure, has reported a significant financial setback for the year ended June 30, 2026. This disclosure was presented at the company's Annual General Meeting, held on October 12, 2026.

The Director's Report, along with the Auditor's Report and audited Financial Statements, highlights an ongoing struggle for the company, which has been non-operational since May 1, 2014. The cessation of operations is attributed to financial liquidity challenges, substantial losses, asset depreciation, and adverse economic conditions prevailing in the country. These factors have collectively prompted the company to submit a Scheme of Arrangement to the Sindh High Court at Karachi under sections 279 to 283 and 285 of the Companies Act 2017. The court sanctioned this Scheme on October 30, 2023, and it is currently being implemented as per the court's directives.

The company's operating and financial performance for the fiscal year 2026 reveals a troubling financial landscape. According to information available from the Pakistan Stock Exchange (PSX), the financial cost has increased to (4,398) rupees from (2,051) rupees in 2025. The pre-tax loss has escalated to 20.32 million rupees from a loss of (5.94 million) rupees in the previous year, marking a very large or significant move. The provision for taxation remains non-existent, and the loss after taxation mirrors the pre-tax loss, amounting to 20.32 million rupees.

The Scheme of Arrangement, as sanctioned by the court, mandates the withdrawal of all pending litigation involving the company and its secured creditors, signaling a potential resolution path for the beleaguered company.