Karachi: Kohat Cement Company Limited has disclosed key resolutions from its 45th Annual General Meeting, including the adoption of financial statements and appointments of new auditors, as well as the approval of various related-party transactions and a significant share buy-back initiative.
During the meeting held on October 15, 2024, shareholders ratified the financial outcomes for the year ended June 30, 2024. The audited financial statements alongside the Auditors’ and Directors’ Reports and Chairman's Review were approved and adopted. Additionally, KPMG Taseer Hadi and Co. was appointed as the external auditors replacing the former incumbents, tasked with overseeing the next fiscal audits at a contract value of PKR 3.90 billion.
In compliance with corporate governance norms, the meeting also sanctioned several transactions involving related parties, which were conducted in ordinary business terms and approved by the board. Notably, transactions included significant procurement from Ultra Pack (Private) Limited and Ultra Kraft (Private) Limited for packing supplies, amounting to PKR 1.62 billion and PKR 0.47 billion respectively.
According to information available from the Pakistan Stock Exchange (PSX), Kohat Cement has further empowered its CEO to sanction future related-party transactions until the next Annual General Meeting without any ceiling on the transaction values. This move aims to streamline operations and enhance flexibility in corporate dealings.
Moreover, a major strategic decision was the approval of a share buy-back program, where the company plans to repurchase up to 12 million shares from October 23, 2024, to April 12, 2025. This initiative reflects a proactive approach to enhance shareholder value, representing about 6.13% of the company’s issued ordinary shares.
The company has also secured approval for renewing short-term running finance facilities up to PKR 600 million with Ultra Kraft (Private) Limited to bolster its working capital needs at competitive borrowing rates.
These developments signify Kohat Cement's ongoing commitment to robust financial management and corporate governance, positioning it well in a competitive market landscape.