Hyderabad: Fateh Sports Wear Limited has announced plans to hold its 42nd Annual General Meeting (AGM) on October 27, 2025, at its registered office in Hyderabad. The meeting is set to address several key issues, including the confirmation of last year’s AGM minutes, the adoption of audited financial statements for the fiscal year ending June 30, 2025, and the appointment of auditors for the upcoming year.
The company, which has remained non-operational throughout the financial year, recorded no sales. Despite this, a profit before taxation of Rs. 7.03 million was reported, primarily due to a favorable foreign exchange rate difference on an amount of US$2.00 million that is currently inaccessible due to a restraining order by the Sindh High Court. The company incurred an operating loss of Rs. 3.03 million attributed to depreciation, utilities, and taxes.
According to information available from the Pakistan Stock Exchange (PSX), the company’s financial position remains precarious, with no material changes reported since the last fiscal year. The company’s share capital stands at Rs. 20.00 million, and total assets amount to Rs. 609.23 million. The directors have opted not to declare a dividend for the year, citing ongoing cash flow issues and the continued suspension of business operations.
The board of directors, whose overall performance was assessed as satisfactory, continues to grapple with the economic challenges posed by high inflation and a slowdown in economic activities. Despite these challenges, the board remains focused on restarting business operations once the stuck funds are released.
The company’s management has expressed confidence in a positive resolution to the legal proceedings surrounding the restrained funds. However, they acknowledge the significant uncertainties impacting the company’s ability to continue as a going concern. The board has assured stakeholders of ongoing efforts to mitigate risks and uncertainties, in compliance with the Listed Companies (Code of Corporate Governance) Regulations-2019.
The announcement of the AGM comes amidst a backdrop of financial difficulty and regulatory non-compliance. The independent auditor’s report included a qualified opinion due to unresolved issues concerning the valuation of assets and verification of liabilities. Furthermore, the company has not appointed the required number of independent directors, and some board members have not completed the mandatory directors’ training program.
Despite these challenges, Fateh Sports Wear Limited is committed to maintaining transparency with its shareholders and fostering a sustainable business environment. The AGM will provide a platform for stakeholders to discuss strategies for overcoming current challenges and planning for future growth.