Lahore: Kohinoor Textile Mills Ltd, a player in the textiles and apparel sector, convened its Annual General Meeting on September 17, 2026, at its registered office in Lahore. The meeting resulted in the adoption of several special resolutions aimed at bolstering the financial framework of its subsidiaries.
According to the resolutions passed, Kohinoor Textile Mills Ltd has been authorized to provide loans and advances to its subsidiaries, Maple Leaf Cement Factory Limited and Maple Leaf Capital Limited. Each subsidiary is set to receive up to 2.00 billion rupees for a one-year period starting September 18, 2026. This financial support is structured at a mark-up rate of one percent above the three-month KIBOR or one percent above the company's average borrowing cost, whichever is higher. Previously, the company was authorized to extend a similar facility to the extent of 1.00 billion rupees, valid until October 31, 2026.
Additionally, the shareholders approved a cross corporate guarantee amounting to 7.00 billion rupees for a five-year period in favor of Maple Leaf Capital Limited. This guarantee will facilitate financing facilities from banks, with Kohinoor Textile Mills Ltd pledging or creating liens on its assets as required. The company maintains the right to reclaim any amount paid under this guarantee from MLCL, with a mark-up of 0.5% per annum above its average borrowing cost.
According to information available from the Pakistan Stock Exchange (PSX), the company also ratified transactions with related parties as disclosed in its unconsolidated financial statements for the year ending June 30, 2026. Furthermore, the Board of Directors has been authorized to approve related party transactions on a case-by-case basis for the fiscal year ending June 30, 2027, subject to shareholder ratification in the subsequent annual meeting.
These resolutions underscore Kohinoor Textile Mills Ltd's strategic focus on financial stability and growth within its subsidiaries, ensuring robust support for their operations in the coming fiscal periods.