Karachi: Reliance Cotton Spinning Mills Limited has successfully completed the issuance of shares to the Central Depository Company (CDC) as part of a court-approved scheme of arrangement. This development is in compliance with the procedures set forth by the CDC for both listed and unlisted companies. The statutory auditors of Reliance Cotton Spinning Mills Limited have issued a certificate confirming the compliance with CDC regulations for the issuance of these shares.

The certificate was requested by the management of Reliance Cotton Spinning Mills Limited, ensuring the company's adherence to the guidelines laid out for the input of paid-up capital and total issuance in the Central Depository System (CDS). The auditors' scope of verification was limited to specific procedures, including a review of the calculation of share capital before and after the issuance, the court-approved scheme, reconciliation for issuing shares in the name of the CDC, and the relevant company filings.

Prior to the allotment of shares under the scheme, the company's paid-up capital stood at 102.92 million rupees, represented by 10,292,000 shares. Following the issuance of 360,000 new shares, the paid-up capital increased to 106.52 million rupees, with a total of 10,652,000 shares now in circulation. According to information available from the Pakistan Stock Exchange (PSX), this represents a minor move in the company's share capital structure.

The company has fulfilled all necessary requirements under section 282 of the Companies Act, 2017, for the allotment of shares in the name of the CDC. No additional conditions were imposed by the court on the company, other than those mentioned in the scheme. While the transfer of movable assets has been completed, the transfer of immovable assets will be finalized in due course.

The certificate, issued by the statutory auditors, is intended solely for submission to the Central Depository Company of Pakistan Limited, as per the management's request. The auditors have restricted the use and distribution of this certificate to prevent any dissemination beyond the intended recipients. This step marks a significant move in the restructuring efforts of Reliance Cotton Spinning Mills Limited, as it aligns its operations with regulatory requirements and strengthens its market position.