February 11, 2020 (MLN): Samin Textiles Limited has informed via notification to Pakistan Stock Exchange that the company’s new business plan has become unviable due to imposition of sales taxes on the textile sector and accordingly, it could not be implemented so far. It is also not possible to run the company at an economically viable level due to high finance costs.
It is prudent to mention that the company has incurred net profit amounting to Rs. 11.310 million during the half-year ended December 31, 2019. Whereas, in September 2018, the operations of the mill were suspended. Later on, members, through a special resolution, approved the disposal of all manufacturing-related assets of the company in an EOGM held on 26 October, 2018 and an alternate business plan for trading, import and export of textile products was adopted.
In view of the aforesaid reasons, the company is not considered a going concern. These financial statements have been prepared using the non-going concern basis of accounting on the basis of estimated realizable / settlement values of the assets and liabilities respectively.
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