⚡ Flash Summary

Kohinoor Textile Mills Limited (KTML) held its Annual General Meeting on October 16, 2025, where shareholders approved special resolutions. The resolutions pertain to granting consent for investments in the form of loans/advances to its subsidiaries, Maple Leaf Cement Factory Limited and Maple Leaf Capital Limited, up to Rs. 1,000 million each. These loans will be offered at a markup rate of one percent above three months KIBOR or one percent above the average borrowing cost of the company, whichever is higher, for a one-year period. The board also ratified transactions with related parties as disclosed in the unconsolidated financial statements for the year ended June 30, 2025.

📌 Key Takeaways

• 🗓️ KTML’s AGM was held on October 16, 2025.
• ✅ Shareholders approved special resolutions regarding investments in subsidiaries.
• 💰 Up to Rs. 1,000 million is approved for loans/advances to Maple Leaf Cement Factory Limited.
• 💸 Up to Rs. 1,000 million is approved for loans/advances to Maple Leaf Capital Limited.
• 📅 Loan period: November 1, 2025 to October 31, 2026.
• 📈 Mark-up rate: 1% above 3-month KIBOR or 1% above KTML’s average borrowing cost.
• 🤝 CEO and Company Secretary are authorized to take necessary steps for loan transactions.
• 📜 Board ratified transactions with related parties for FY2025 as per Note 38 of the financial statements.
• 🏛️ Board authorized to approve related party transactions on a case-by-case basis for FY2026.
• ℹ️ Similar facility was authorized last year (October 28, 2024) to the extent of Rs. 1,000 million which is valid until October 31, 2025.

🎯 Investment Thesis

HOLD. The special resolutions are routine and reiterate KTML’s support for its subsidiaries. The financial impact is neutral as lending is at a market-related interest rate. Given the lack of significant impact, maintain a HOLD rating. No change to price target, current assumptions, and time horizon.