Karachi: Gulshan Spinning Mills Limited, based in Karachi, Pakistan, disclosed its unaudited financial performance for the quarter ending September 30, 2024, with significant financial restructuring underway to address its long-standing liabilities. The company reported a substantial pre-tax loss of PKR 97.96 million for the recent quarter, indicating a reversal from a profit of PKR 2.61 billion in the same period last year.

In the most recent financial disclosures, the company outlined a bleak performance with no sales recorded and a consequent pre-tax loss of PKR 97.96 million. According to information available from the Pakistan Stock Exchange (PSX), these results come in stark contrast to the financial figures reported in the corresponding quarter of 2023, where the company enjoyed a robust profit after taxation of PKR 2.61 billion.

Gulshan Spinning Mills Limited is currently engaged in a significant legal and financial restructuring process. This includes a scheme of arrangement sanctioned by the Sindh High Court in Karachi under various sections of the Companies Act 2017, aimed at addressing and settling the company's liabilities. The restructuring plan was initiated due to several compounding issues that have severely impacted the company’s operational viability and asset value.

Further details reveal that the legal proceedings with the banks will be discontinued as per the terms of the scheme of arrangement, suggesting a hopeful outlook for the company’s future financial structuring. The board expressed gratitude towards the employees for their continued dedication during these challenging times and plans to develop a more sustainable operational model moving forward.

As part of the restructuring, Gulshan Spinning Mills Limited anticipates better positioning itself in the market, with the potential withdrawal of ongoing legal challenges and a strategic focus on asset management and operational stability.