Karachi: Dewan Farooque Spinning Mills Limited held its Annual General Meeting on October 27, 2025, where significant resolutions were passed, including the approval of the Annual Audited Financial Statements for the year ending June 30, 2025. The meeting, chaired by Director Mehmood-ul-Hassan Asghar, addressed the company's financial performance and future strategies amidst ongoing challenges.
The company's net revenue saw a decline to Rs. 219.249 million from the previous year's Rs. 446.380 million. The gross loss was recorded at Rs. 239.680 million, down from Rs. 441.078 million in the prior year. Operating expenses decreased to Rs. 34.460 million compared to Rs. 41.495 million. During the financial year, the company upgraded its technology by replacing outdated ring spinning machines with Auto Coro Spinning, aiming to improve production efficiency and cost-effectiveness.
The meeting also highlighted the company's ongoing financial difficulties, particularly related to past settlement agreements and the restructuring of liabilities. According to information available from the Pakistan Stock Exchange (PSX), the management is actively negotiating with lenders for further restructuring without markup, which is in advanced stages and anticipated to conclude soon.
The company's auditors, M/s. Feroze Sharif Tariq & Co., expressed a qualified opinion regarding the default in repayment of restructured liabilities and emphasized doubts about the company's ability to continue as a going concern. Despite these challenges, the management is confident in its efforts to reduce production costs and secure necessary lender agreements. The financial statements have been prepared on a going concern basis, reflecting the management's optimism about future prospects.
The meeting also resolved to reappoint M/s. Feroze Sharif Tariq & Co. as the Statutory Auditors for the ensuing year. The Chief Executive Officer was authorized to negotiate and set the remuneration for the auditors. No further business was proposed, and the meeting concluded with prayers for the company's prosperous future.