PSMC warns of equity impact in FY23 over unpaid liabilities
March 20, 2023
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March 20, 2023 (MLN): Pak Suzuki Motor Company Limited (PSX: PSMC) on Monday warned that if the foreign currency liability of the company is not paid due to the restrictions imposed by the State Bank of Pakistan (SBP), the exchange loss of the company would further enhance which will adversely impact the equity of the company in the financial year 2023, the company's filing on PSX showed.
PSMC has outstanding foreign liabilities equivalent to $184 million at year-end December 31, 2022, which increased to the equivalent of $218mn subsequent to the year-end.
Up to December 31, 2022, the company incurred an exchange loss of Rs3.55 billion on foreign currency transactions and balances.
Subsequent to year-end PKR to USD parity has further deteriorated and resulted in a huge unrealized loss of approximately Rs9bn which may impact the equity of the company in the year 2023.