Lahore November 5 2024: Hascol Petroleum has no plans to file for liquidation for at least one year despite net shareholder deficit soars to PKR 86.25 billion, according to company financials.
During the period September 30 2024, the Company incurred a net loss of PKR 7.27 billion (September 30, 2023: PKR 13.05 billion), resulting in net shareholders deficit of PKR 86.25 billion (December 31, 2023: PKR 78.98 billion) as of the unconsolidated statement of financial position date.
Further, as of that date the current liabilities of the Company exceeded its current assets by PKR 102.86 billion (December 31, 2023: PKR 94.08 billion) and has defaulted in majority of its outstanding loans with banks.
These conditions may cast significant doubt on the Company’s ability to continue as a going concern.
However, in order to ensure the Company’s ability to operate as a going concern, certain plans and measures have been taken to improve its liquidity and financial position which includes, but not limited to, the following:
a) The Board of Directors (the board) have carried out a detailed review of the profitability and cashflow forecast of the company for the twelve months following the date of balance, at the date of approval of these financial statements.
b) The inflow from the IFEM pool and the assurance of supply continuity was taken into account by the board to arrive at a conclusion that the company will continue to operate as a going concern and there are no current plans to file for liquidation for at least one year (12 months) from the date of the statement of financial position being authorised for issue.
c) Except for, where a regulatory action from government department or proceedings of liquidation from a creditor(s) are initiated, wherein, the banking accounts of the company are attached and / or seized by the relevant action of the regulator or creditor. In such case, the company may face disruptions in its operations and may come to a halt of business operations thus challenging the going concern of the company.
