Karachi June 22 2023: Lucky Cement Limited reclassified a sum of PKR 116 billion reserves, or 88 percent, to separate capital reserves account which are not distributable by way of dividend, according to the notification issued by the company.
The Board of Directors of Lucky Cement Limited in their meeting held yesterday discussed that, over the years the Company has continued with its expansion and diversification strategy and has made significant investments which have enhanced enterprise value for the shareholders. In addition, the Company has carried out buyback of its shares in the past and continues to do the same at present. The Board noted that because of these reasons, the general reserves of the Company have been utilized and are not entirely available for distribution as dividend.
Lucky cement revenue reserve is equivalent to PKR 421 per share
The Board, therefore, decided to reclassify a sum of PKR 116 billion reserves from the revenue reserves of PKR 132 billion to separate capital reserves, un-distributable by way of dividend, to more accurately reflect the nature of these reserves.
Out of these PKR 40 billion each are reclassified as Capital reserve against long-term investments and Capital reserve against capacity expansions while PKR 36 billion are held under Capital redemption reserve u/s 88 of the Companies Act, 2017.
