Karachi February 15 2023: Pakistan Stock Exchange (PSX) notified to all concerned that as a consequence of non-compliance of PSX regulation related to auditor opinion Shakarganj Limited will be placed in the Defaulters’ Segment, according to the notification issued by the exchange.
Shakarganj auditor has issued an adverse opinion in the audit report of the year ended September 30,2022.
The company will be placed in the Defaulter segment with effect from 16th February 2023.
The Auditors have given adverse opinion and reported that the situation of liquidity indicates that a material uncertainty exist that may cast significant doubt on the Company’s ability to continue as a going concern.
However, the Company has prepared its financial statements as a going concern, based on the Turn Around Plan of the Company. The Turn Around Plan is based on the statements provided by the company legal councils that the Stay Orders will be vacated after the hearing is started. The Company plans to sell its Bhone establishment and is hopeful that it will be able to pay off its liabilities during the next FY i.e. 2022-23.
Since last couple of years, the Company have faced huge losses and ultimately financial crunch. In current year, Company’s sugarcane crushing was increased by almost 34% as compared to last year but heavy increase in sugarcane procurement cost as discussed above impacted significantly. Sugar Plants capacity utilization was not at optimal level. Our Bio-fuel Division also had not been fully operational since couple of years
Shakarganj Limited is a public limited company incorporated on 20 September 1967 in Pakistan under the Companies Act, 1913 (Now Companies Act, 2017). It is principally engaged in manufacture, purchase and sale of sugar, biofuel and yarn.
