August 5, 2019 (MLN): Agritech Limited has incurred a loss before tax of Rs. 3,639.61 million (2017: Rs. 3,876.34 million) for the year ended 31 December 2018.
The company on Monday reported that its current liabilities had exceeded its current assets by Rs. 40,993.10 million, including Rs. 34,808.18.62 million relating to overdue principal and interest / mark-up thereon, and accumulated losses exceeded the shareholder's equity by Rs. 3,296.36 million.
‘These financial statements have however been prepared on a going concern basis as the management is confident that the Company will be able to continue as a going concern based on the expectation of continuous availability of gas and restructuring of its existing over-due long-term debts and related mark-up as per the rehabilitation plan approved by the shareholders and currently filed in the Honorable Lahore High Court as per the provisions of repealed Companies Ordinance, 1984’ the company stated in its result announcement.
The management of the Company has assessed the recoverability of deferred tax asset on tax losses and tested the impairment of goodwill based on five years business plan approved by the Board of Directors and asserts that no impairment is required.
However, it was unable to obtain sufficient appropriate audit evidence with respect to key assumptions used in the business plan i.e. operational days based on availability of natural gas and cost of raw material based on gas rates since approval from Government of Pakistan for supply of gas to the Company at subsidized rates is available only till October 2019. Management is however confident that supply of gas will be available on long term basis.
Profit and loss account for the year ended December 31, 2018 (Rupees)
Cost of sales
Gross (loss) / profit
Selling and distribution expenses
Administrative and general expenses
Other income – net
Operating (loss) / profit
Loss before taxation
Loss after taxation
Loss per share – basic and diluted
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