Karachi April 1 2022: Agritech Limited (AGL) report profit of PKR 60 million during the last quarter of 2021 as per company filling to the exchange.
During 2021, AGL report loss of PKR 2.7 billion which is significantly lower when compared with PKR 4.3 billion loss of last year. Interestingly, company reported gain of PKR 409.5 million during the year 2021 compared to gross loss of PKR 1.2 billion in 2020.
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The Company due to the connued gas curtailment in the past many years could not meet the terms of most of the loan agreements executed with different financial instuons. Allied Bank Limited (ABL), Pak Libya Holding Company (Pvt.) Limited , Meezan Bank Limited, Bank Alfalah Limited, Soneri Bank Limited and Naonal Bank of Pakistan have filed cases for recovery of their respecve loans along with accrued mark-up and other related charges against the Company. All these banks had already given NOC for the restructuring scheme proposed in 2016 which is pending for the approval of the Honorable Lahore High Court. Based on legal opinions, the Board is fully confident that the likelihood of any liability is remote. The markup of these banks has already been recognized in these financial statements in accordance with terms of loan agreements and as referred in Note 2.4 to the financial statements. The company has filed the restructuring scheme with the Honorable Lahore High Court aer obtaining NOCs from all these banks.
Gas curtailment and gas/RLNG price to the Company’s Urea plant during the past few years was the major cause of non servicing of the debt of the Company and the accumulaon of mark-ups further increased its debt burden. In addion to this, few banks and financial instuons have filed cases for recovery of loans extended by them along with accrued markup and other related charges against the Company. In order to streamline this debt burden, a Capital Restructuring Plan was envisaged with the cooperaon of lenders to devise a sustainable capital structure, which included the conversion of its exisng long term debt including mark-ups into Preference Shares. The plan also includes sale of excess land to payoff long term lenders aer seeking the necessary approvals. The infrastructure developments plans of GOP around the Company’s both plants will likely to increase the value of its land. Parcularly, the parcipaon of the Company in CPEC project’s secon Hakla-Daudkhel-DI Khan through provision of land for the said project looks very excing and with the compleon of CPEC, the surplus land of the Company has potenal for commercial and industrial acvies for CPEC related trades in the future. Based on legal opinions, the Company is confident that likelihood of any addional liability is remote as markup has already been recognized in these financial statements in accordance with terms of loan agreements.
This Capital Rehabilitaon Plan was filed through a peon in Lahore High Court in June 2016 for the enforceability of the scheme under secon 284-288 of the Companies Ordinance, 1984. The hearings at the LHC are connued and the Company is confident to obtain decision through the court for the Rehabilitaon Plan and commied to implement the plan to improve the financial posion of the company.
The main business of the Company is the manufacturing and markeng of ferlizers. The Company owns and operates the country’s one of the newest and most efficient urea manufacturing plant at Mianwali, Punjab Province. The Company also operates the manufacturing facility of GSSP (Granular Single Super Phosphate) at Haripur Hazara, Khyber Pakhtunkhwa (KPK) Province. The Company markets its ferlizers from these plants under one of the most trusted brand name “TARA” in the ferlizer industry.
