Samin Textiles requests PSX to shift to regular counter from defaulter

January 6, 2022 (MLN): Samin Textiles Limited has requested PSX to shift the company from defaulter to regular counter as it is now a going concern as per the audit report, company’s progress report issued to exchange said.

In the report, the company updated that it has already resumed operations since August 2021, which will further strengthen its acquisition of home appliances business from Waves Singer Pakistan Limited (WSPL).

To recall, on December 23, the board of Samin Textiles approved the draft Scheme of Arrangement between the company and WSPL as per which the company will acquire the Home Appliances Business of WSPL.

“In order to comply with the requirements of the Scheme of Arrangement, the Company engaged KPMG (Statutory Auditor of the Company) to conduct a special audit of the Company for the Period ended 31 August 2021. The accounts of the Company have now been prepared on Going Concern Basis with an unqualified/clean opinion received from the Auditors,” the notice stated.

To note, in September 2020, the management of Samin Textiles informed that the company is no longer a going concern as it was impossible to run the company at an economically viable level due to poor economic / market conditions for the textile sector and high energy costs.

This development emerged after the company dismissed the alternate business plan for being unviable due to the imposition of additional taxes on the textile sector.

The operations of the mills were suspended in September 2018, after the company reported accumulated losses of Rs401,651 million.

Later on, members, through a special resolution, approved the disposal of all manufacturing-related assets of the company in an EOGM held on October 26, 2018, and an alternate business plan for trading, import and, export of textile products was adopted.

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