Faisalabad: Chenab Limited, a textile company based in Faisalabad, reported a significant increase in sales and services revenue for the half-year period ending December 31, 2023, despite facing financial losses. According to the company's un-audited financial statements, the revenue for this period reached Rs.1.580 billion, compared to Rs.734 million in the same period of the previous year.

The financial results indicated a loss of Rs.135.670 million before taxation, attributed to unfavorable business circumstances. According to information available from the Pakistan Stock Exchange (PSX), the company has been exploring ways to improve its financial standing amidst these challenges.

Chenab Limited's directors expressed optimism about the future, citing potential demand in international markets for Pakistani textile products. However, they emphasized the need for adequate financial support from financial institutions to capitalize on this potential. The management remains committed to implementing cost-effective measures and cost-saving strategies to turn the company profitable.

The directors' report also addressed several observations from auditors. A significant number of preference shareholders have opted to convert their shares into ordinary shares, but this process is pending court approval, affecting the calculation of diluted earnings per share. The company is also working on creating a deferred tax asset and adjusting liabilities accordingly.

Despite being non-operational for a considerable period, Chenab Limited has circulated confirmation letters to all parties selected by the auditor, though some parties have not responded. The management has disclosed all outstanding liabilities and is actively pursuing the recovery of outstanding amounts from customers.

The board of directors expressed appreciation for the support received from shareholders, government agencies, and financial institutions, acknowledging their vital role in the company's operations.