⚡ Flash Summary

Crescent Jute Products Limited reported a loss of PKR 1.48 million for the quarter ended September 30, 2025, compared to a loss of PKR 2.13 million in the corresponding period of 2024. The management cites maintaining minimum staff and legal fees related to ongoing cases with financial institutions as the primary reasons for the loss. The company’s closure plan, involving asset disposal, is underway, with all payments against asset disposals received. However, a future business plan cannot be implemented due to insufficient surplus funds after settling liabilities with the Bank of Punjab. The company is still in litigation with financial institutions.

📌 Key Takeaways

• 📉 Loss of PKR 1.48 million for Q1 2025, improved from PKR 2.13 million loss in Q1 2024.
• 🧑‍💼 Losses attributed to staff costs and legal fees related to financial litigations.
• 🏢 Closure plan with asset disposal is ongoing; all disposal payments received.
• 🚫 Future business plan cannot be implemented due to lack of funds post-liability settlement.
• ⚖️ Ongoing litigation with financial institutions.
• 🔍 Exploring alternative funding options to address outstanding liabilities.
• 🚫 No funds available for the future business plan at present.
• ✂️ Continued focus on cost control to minimize expenses.
• 🏦 Settlement with The Bank of Punjab completed.
• 📜 Company shares remain suspended from trading on the Pakistan Stock Exchange (PSX).
• ⚠️ Contingent liabilities exist regarding sales tax demands of PKR 34.022 million.
• 🏛️ Supreme Court dismissed the appeal related to sales tax, filed review petition.
• ❗Name included in a list of 222 entities with written-off loans by the Supreme Court
• 🤝 Out-of-court settlement reached with The Bank of Punjab, receiving PKR 138.6 million and waiving accrued markup
• 🗓️ Financial statements authorized for issue on October 28, 2025.

🎯 Investment Thesis

Given the significant financial challenges, negative equity, and ongoing litigation, a SELL recommendation is warranted. There is no clear path to profitability or sustainable operations. The company’s future is highly uncertain, and the risks far outweigh any potential upside.