Karachi: Ghandhara Automobiles Limited is scheduled to hold its Annual General Meeting (AGM) on October 24, 2024, at S.I.T.E., Karachi. The agenda is poised to cover significant financial resolutions, including the ratification of past transactions with related parties and the renewal of a substantial cash advance facility for its subsidiary. This meeting, which will also be accessible electronically, reflects the company's compliance with corporate governance norms under the Companies Act 2017 and will transact several key items as per the agenda circulated to shareholders.
The primary focus will be on approving the audited financial statements for the year ended June 30, 2024, alongside the customary appointment of auditors and their remuneration. Notably, the financial statements have been made available on the company's website, ensuring transparency and shareholder accessibility.
A critical item on the agenda is the proposed renewal of a PKR 800 million cash advance to Ghandhara DF (Pvt.) Limited (GDFPL), a wholly-owned subsidiary, aimed at bolstering its working capital for another three years. This facility, initially established to support GDFPL's operational needs, carries a markup rate of 6-month KIBOR+1.85%, and its renewal underscores the ongoing strategic support Ghandhara provides to its subsidiary entities.
Moreover, the AGM will address transactions with associated companies conducted during the financial year ending June 30, 2024. According to information available from the Pakistan Stock Exchange (PSX), these transactions have been carried out in the normal course of business and require ratification from the shareholders. This procedural compliance is critical as the directors involved have common directorships and shareholdings in the associated companies, highlighting a potential conflict of interest that necessitates shareholder approval.
The AGM is set against the backdrop of Ghandhara Automobiles' robust financial performance, as evidenced by their latest financial statements. The company reported a net profit after tax of Rs. 581 million, on revenues of Rs. 4,172 million. This financial health is critical as it ensures the company's ability to sustain and extend significant financial support to its subsidiaries.
Furthermore, the company has emphasized the importance of shareholder participation in the AGM, offering electronic voting and proxy voting options to maximize engagement. All resolutions, including those pertaining to financial dealings and the authorization of the Chief Executive Officer to handle transactions with related parties for the upcoming year, are poised for shareholder vote.
Ghandhara Automobiles continues to demonstrate a commitment to corporate governance and shareholder transparency by placing all pertinent financial information and reports online for shareholder review and by facilitating robust participation mechanisms at its AGM.