August 13, 2020 (MLN): Ravi Textile Mills Limited (RAVT) via notification to Exchange has informed that Ali Cotton Industries which was to be purchased by RAVT, has refunded the security money of Rs 1 million which had been deposited after signing lease agreement between both parties.
To recall, in the meeting held on October 8, 2019, the BoDs of RAVT approved to obtain a cotton ginning factory in Basti Mithu, Tehsil Shujaabad, District Multan on lease.
As per the notification, the cotton ginning factory under reference was to be handed over to the RAVT on before March 31 2020 in time to make necessary repairs and maintenance for commencement of cotton ginning operations from the start of cotton ginning season commencing September 2020, as mentioned in the agreement. However, due to lockdown situation as a result of Covid-19 pandemic, the lessor failed to meet its commitment with its banks and creditors.
Keeping in view of this, the company searched to obtain another Cotton Ginning Factory situated in Haroonabad District Bahawalnagar on lease which would be able to start of cotton ginning season commencing September.
In this regard, the BoDs of RAVT has authorized CEO of the company to sign the lease agreement and make refundable security deposit to the lessor. The cotton ginning factory shall be handed over to the company on or before August 31, 2020 in time to make minor repairs and maintenance for the commencement of cotton ginning operations in September 2020.
Copyright Mettis Link News