Lahore: Pakistan Engineering Company Limited, in its financial report for the six-month period ending December 31, 2021, has announced substantial losses, marking a challenging period for the company. The report, released on June 8, 2026, following a board meeting held on June 6 in Lahore and via Zoom, provided an overview of the company’s financial performance.
The directors of the company declared that no cash dividend, bonus shares, or right shares would be distributed for the period. Furthermore, no other entitlements or price-sensitive information were disclosed in the announcement. The financial statements, which include the statement of profit and loss, financial position, changes in equity, and cash flows, were attached to the report.
The statement of profit and loss highlighted the financial difficulties faced by the company. For the six-month period ended December 31, 2021, sales were reported at 68.75 million rupees, a decline from 166.92 million rupees during the same period in 2020. The cost of sales stood at 126.01 million rupees, resulting in a gross loss of 57.27 million rupees, compared to a loss of 16.39 million rupees in the previous year.
Operating losses were further exacerbated by selling and distribution expenses of 5.97 million rupees and administrative expenses of 36.64 million rupees. After factoring in finance costs and taxation, the company reported a loss after taxation of 81.93 million rupees, a significant move from the 65.06 million rupees loss reported in the same period of the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the company's share capital remained unchanged at 56.90 million rupees, while accumulated losses grew to 1.90 billion rupees from 1.83 billion rupees at the end of June 2021. The total assets of the company were valued at 15.35 billion rupees as of December 31, 2021, slightly down from 15.38 billion rupees at the end of June 2021.
The report also detailed the company’s liabilities, with non-current liabilities totaling 174.47 million rupees and current liabilities amounting to 787.28 million rupees. The company's equity and liabilities were noted to be impacted by an ongoing provision for taxation and accrued mark-up.
Despite these challenges, the directors have committed to transmitting the half-yearly report through PUCARS within the specified time, fulfilling their obligations under the Securities Act, 2015. The designated market category for the company remains unchanged as the company navigates these financial difficulties.