Karachi January 17 2022: Zahur Cotton Mills Limtied (ZHCM) management has received an in principal inquiry from a Multinational Information Technology Company through their financial advisor’s M/S Frontline Advisory Private Limited for the proposed merger with the company.
Trading in shares of Zahur Cotton Mill is currently in suspension mode by Pakistan Stock Exchange due to suspended commercial production / business operations in its principle line of business, noninduction of its Ordinary Shares into CDS, adverse opinion in the audit report, and Show Cause Notice has been issued by SECP for initiating Winding-up proceeding.
The Company has also applied for Voluntarily Delisting from the Pakistan Stock Exchange on 8th May, 2017 but decision is still pending
The principal activity of the Company is manufacturing and selling of grey fabric which continued to remain suspended during the Year.
The auditors have raised doubts regarding the Company's ability to continue business as a going concern due to the working capital constrains, closure of business operations since long and unfavorable business conditions. The management is hopeful that the favorable business opportunities will be found in the near future which will enable the company to come out of this situation. We are further confident that continued support from directors / sponsors / other related parties will enable the company to remove working capital constraints.
The qualification in audit report regarding trade creditors, accrued liabilities and advances from customers are the balances as on June 30, 2021. The company is planning to restart the operations after getting delisted from Pakistan Stock Exchange. These liabilities will be settled in full once the Company earns sufficient income either from its ordinary operations or rental business. We requested legal advisor to reply the auditors direct confirmation, however, he had not replied till the date of authorization of financial statements.
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