Karachi: Siddiqsons Tin Plate Limited has reported a significant financial loss before tax amounting to Rs. 1.997 billion for the fiscal year 2023-24, as outlined in the company's recently released annual report. This figure includes a provision of Rs. 821 million related to the CISRI claim, reflecting a very large or significant move in the company's financial performance.

The company, which faced a challenging year, cited a confluence of adverse economic and political factors contributing to its financial struggles. High interest payments on CRM loans, unprecedented inflation, and the devaluation of the Pakistani Rupee were identified as primary stressors. Additionally, the high cost of imported raw materials, combined with low capacity utilization, resulted in an increased manufacturing cost per metric ton, further impacting profitability.

Throughout the year, the business environment remained uncertain, compounded by government policies that the company described as adverse. A major concern was the misuse of sales tax exemptions in the FATA/PATA regions, a policy issue that has been extended into the FY 2024-25. Furthermore, the unconventional use of Galvalume sheets in food packaging created market distortions, while the unrestricted import of secondary tinplate at lower prices severely affected the company's market position.

Despite these challenges, Siddiqsons Tin Plate Limited maintained compliance with the Listed Companies (Code of Corporate Governance) Regulations 2019 and the Companies Act, 2017. The Board of Directors emphasized transparency, accountability, and integrity, conducting an annual evaluation to uphold best governance practices.

According to information available from the Pakistan Stock Exchange (PSX), the company made efforts to mitigate potential adverse impacts through prudent management and strategic decision-making. The Board of Directors convened four times during the fiscal year, ensuring ongoing oversight of company operations through its sub-committees, namely the Audit Committee and Human Resources Committee.

The chairman expressed appreciation for the Board's dedication and the guidance provided to executive management. Acknowledging the support of shareholders, employees, and business partners, the chairman reiterated the company's commitment to advancing strategic goals and building a resilient organization.