⚡ Flash Summary

Maple Leaf Cement Factory Limited’s (MLCF) AGM on October 16, 2025, adopted special resolutions, primarily concerning investments in the form of loans/advances to related parties. The company will provide up to Rs. 1,000 million to Kohinoor Textile Mills Limited (the holding company) and another Rs. 1,000 million to Maple Leaf Capital Limited (an associated company). These loans will span from November 1, 2025, to October 31, 2026, at a markup rate linked to KIBOR or the company’s borrowing cost. These resolutions mirror similar authorizations from the prior year, indicating a continuation of intra-group financial activities.

📌 Key Takeaways

• ✅ MLCF’s AGM approved special resolutions for loans/advances to related parties.
• 🏢 Up to Rs. 1,000 million can be loaned to Kohinoor Textile Mills Limited.
• 💰 Another Rs. 1,000 million can be loaned to Maple Leaf Capital Limited.
• 🗓️ The loan period is from November 1, 2025, to October 31, 2026.
• 📈 Markup rate is pegged to KIBOR or the company’s borrowing cost, whichever is higher.
• 📜 Approvals are in line with Section 199 of the Companies Act, 2017.
• 🔒 The CEO and Company Secretary are authorized to complete the transactions.
• 📑 Statutory filings and documentation are required for these transactions.
• 🔄 The previous authorization for similar facilities was valid until October 31, 2025.
• 🤝 Transactions with related parties for the year ending June 30, 2025, were ratified.
• 💼 The Board is authorized to approve related party transactions on a case-by-case basis for FY 2026.
• 🗓️ These transactions will be presented for formal ratification/approval at the next AGM.

🎯 Investment Thesis

Given the information available, a HOLD recommendation is appropriate. The continuation of intra-group lending suggests a stable financial strategy, but the lack of detailed information on the performance of the related parties makes it difficult to assess the overall impact on MLCF’s valuation. Further analysis is needed to determine if these loans are beneficial for shareholders. Current information does not provide any price movement.