Karachi: Dewan Farooque Motors Limited has responded to circulating rumors on social media about its financial state, emphasizing recent developments and financial restructuring efforts. As reported, the rumors have been spreading via a Twitter account operated by Mr. Abdul Aziz Noman and WhatsApp groups.

The company, known for manufacturing the 'KIA Shehzore', clarified that the vehicle was launched on June 4, 2024. The financial statements for the fiscal year ending June 30, 2024, were finalized in November of the same year, covering an operational period of less than a month. Dewan Farooque Motors highlighted that the overdue amounts mentioned in the social media reports pertain to debts dating back to 2008.

According to information available from the Pakistan Stock Exchange (PSX), the company has achieved a significant milestone by resuming the manufacturing of its vehicles after a decade-long hiatus. Additionally, the company is engaged in local production of electric cars, branded as 'Honri', for the first time in Pakistan. This production is carried out on a toll manufacturing basis for a sister concern.

The company further explained that the old debts are being rescheduled and restructured by banks to allow for step-up repayments in the future. Dewan Farooque Motors assured that there is no default for the period covered by the audited financial statements ending June 30, 2024. The management expressed confidence in the consolidation and improvement of the company's operations, anticipating better results in the ensuing year's financial statements.

The company has requested that the TRE Certificate Holders of the Exchange be informed accordingly, underscoring its commitment to transparency and shareholder confidence.