Dewan Farooque denies Rs1bn default claim

December 05, 2024 (MLN): In response to a media claim stating that Dewan Farooque Motors Limited (DFML) has defaulted on over Rs1 billion in repayments, the company has clarified that there was no default during the period covered by the Audited Annual Financial Statements for the year ended June 30, 2024.

The claim, made on the social media platform X (formerly known as Twitter), further alleged that there are material uncertainties casting doubt on the company’s ability to continue as a going concern.

In a notice to PSX, DFML assured that the management is confident that the results of the company's operations will be consolidated and improved in the Financial Statements for the ensuing year.

It highlighted that the social media post pertains to the past years (since 2008). Since then, the company achieved the major milestone of resuming manufacturing of its own vehicles after a period of more than 10 years.

Highlighting the positive factors, the company shared that the launch of our 'KIA Shehzorel occurred on June 4, 2024.

Its financial statements for the fiscal year ended June 30, 2024, were signed in November 2024 and the operation period of less than a month till June 30, 2024 was covered in such accounts.

Secondly, the old debts of the Company are going to be rescheduled/restructured by the Banks for step-up repayments in future years.

Moreover, the company has been locally producing the Electric Cars (Honri) in its factory, for first time in the history of Pakistan, for its sister concern on toll manufacturing basis.

"All of these factors are positive and we value the support, patronage and confidence posed by the Shareholders on the affairs of the company," the notice concludes.

Copyright Mettis Link News