Lahore: Bilal Fibres Limited, a noted entity in the textile sector, faced significant challenges as reflected in their latest financial statements for the year ended June 30, 2024. The company's auditors, Mushtaq and Co. Chartered Accountants, issued a disclaimer of opinion, highlighting numerous issues that prevented a clear audit conclusion.

The auditors cited several reasons for their disclaimer, including the inability to physically verify inventory and fixed assets, which totalled Rs. 57.873 million and Rs. 44.481 million respectively. These assets were reported as pledged with the banks and without recent revaluations, the last of which was conducted on June 28, 2019. This lack of revaluation and physical verification raised concerns about the accuracy of the reported asset values.

According to information available from the Pakistan Stock Exchange (PSX), Bilal Fibres also failed to provide adequate documentation for various financial transactions, including long-term financial lease liabilities totaling Rs. 493.145 million and short-term borrowings of Rs. 136.365 million. Furthermore, the company is engaged in multiple litigations with banking institutions, which have not confirmed the financial balances, adding another layer of complexity to the financial reporting.

Additionally, the auditors were unable to obtain necessary information to verify contingent liabilities and trade deposits, complicating the assessment of the company's financial health. The discrepancies extended to the non-compliance with regulatory requirements such as Zakat and Usher Ordinance, where applicable deductions were not verified.

The company's ongoing litigation, unresolved financial audits, and significant operational halts since June 16, 2016, suggest a dire financial condition. The auditors expressed a material uncertainty regarding the company's ability to continue as a going concern, noting that the management has yet to provide feasible plans to resolve the liquidity issues.