Hyderabad: In its 39th Annual General Meeting held on October 28, 2024, Fateh Industries Limited addressed several key issues regarding its financial health and operational strategies. According to information available from the Pakistan Stock Exchange (PSX), the Hyderabad-based company convened to confirm the minutes of the previous meeting, review financial statements, and appoint auditors for the coming fiscal year.

During the gathering, audited financial statements for the year ended June 30, 2024, were presented, showcasing a challenging economic environment characterized by high inflation and political instability, impacting the company's operations. The directors did not recommend any dividends, citing cash flow difficulties and accumulated losses.

In terms of governance, the company highlighted compliance with the Listed Companies (Code of Corporate Governance) Regulations, 2019, except for specific deviations disclosed in their compliance statement. Notably, Fateh Industries has yet to fulfill the requirement of appointing the minimum number of independent directors, which has raised concerns about the board's compliance with regulatory standards.

The meeting also served as a platform for the management to express its intention to delist from the PSX, a proposal currently under review by the exchange. This move reflects the broader financial and operational challenges Fateh Industries faces, as detailed in the directors' and independent auditor's reports. The auditor's report raised several qualifications regarding the financial statements, including concerns about the company's ability to continue as a going concern.

Fateh Industries' financial difficulties are underscored by its negative equity position and the lack of significant operational revenue, leading to a reliance on stringent cost control measures and financial support from its management. The company's future strategies include focusing on minimizing negative impacts and navigating through Pakistan's complex economic landscape.