Lahore: Zahur Cotton Mills Limited has released its unaudited condensed interim financial statements for the half-year ending December 31, 2024. The prolonged suspension of its commercial operations has resulted in a lack of sales activity during this period.

The company reported a net loss of Rs. 0.426 million for the first half of the fiscal year, a slight improvement from the Rs. 0.490 million net loss recorded in the same period of the previous year. This financial performance translates to a loss per share of Rs. (0.05), consistent with the loss per share reported for the corresponding period last year.

As disclosed in the Director's Review Report, the company's operations remained suspended, leading to no reported sales revenue. The financial statements reflect this ongoing challenge, with the total equity standing at Rs. (41.01) million, while total liabilities amount to Rs. 41.08 million.

According to information available from the Pakistan Stock Exchange (PSX), the company is in the final stages of a strategic business merger with Itanz Technology Private Limited, a recognized entity in the Information Technology sector. The merger is awaiting a sanctioning order from the Lahore High Court, Lahore, which is anticipated to facilitate the company's revival.

The successful completion of this merger is expected to mark a significant turning point for Zahur Cotton Mills Limited. The company aims to leverage the synergies from this partnership to resume operations and achieve a financial turnaround. Additionally, it is expected to transition from the defaulter counter to the regular counter on the PSX, thereby restoring investor confidence.

The Board of Directors expressed gratitude to the shareholders for their continued support and underscored their commitment to maximizing the opportunities presented by the merger. They anticipate that this strategic move will unlock new growth avenues, expand service capabilities, and fortify market positioning.

As the company awaits the court's decision, stakeholders remain optimistic about the long-term sustainability and value creation potential that the merger with Itanz Technology could bring.