August 03, 2023 (MLN): HASCOL’s corporate revival plan, based primarily on the restructuring of its bank debt is on track and it is expected that the company will be able to conclude its restructuring in the next few months, said a press release issued by the company today on PSX.
The core purpose of the revival plan is to lead toward the injection of required fresh equity by a potential investor.
The company posted a gross profit of Rs3.18 billion compared to Rs1.99bn in last year on account of better trading margins despite lower volumes.
However, due to the devaluation of foreign currency and high-interest rates, the company incurred a net foreign exchange loss of Rs4.83bn and an unpaid interest cost of Rs8.41bn, resulting in a net loss of Rs14.44bn compared to the previous year's loss of Rs7.59bn.
HASCOL in its notice states that both of the main factors attributable to the current year's loss are being properly addressed in the company's proposed restructuring to ensure that the company's earnings stay positive post-restructuring.
While the company had to grapple with the challenge of scarce working capital, the credit support from HASCOL's single majority shareholder, Vital, has continued to play a vital role in overcoming the supply needs of the company, hence underpinning its viability.
The management has worked tirelessly with the statutory auditors to satisfy their requirements under active guidance from the Board of Directors (BoD) to ensure that the company's financial statements have been prepared and presented in a way that gives a true and fair view of its affairs.
