⚡ Flash Summary
Dewan Salman Fibre Limited (DSFL) held its Annual General Meeting on October 28, 2025, where the minutes of the previous meeting were confirmed, and the audited financial statements for the year ended June 30, 2025, were approved. The company’s statutory auditors, Feroze Sharif Tariq & Co., were re-appointed for the ensuing year. The meeting minutes revealed that the company’s operations remained closed during the year, resulting in nil turnover and a gross loss of Rs 283.045 million, primarily due to depreciation and fixed expenses. Auditors have expressed an adverse opinion on the financial statements due to the company’s use of the going concern assumption.
📌 Key Takeaways
- 🗓️ AGM held on October 28, 2025.
- ✅ Minutes of the preceding General Meeting held on September 26, 2025, were confirmed.
- 💰 Annual Audited Financial Statements for the year ended June 30, 2025, were approved.
- 🏢 Feroze Sharif Tariq & Co. re-appointed as Statutory Auditors.
- 🤝 CEO authorized to negotiate auditor remuneration.
- 🏭 Operations remained closed during the year ended June 30, 2025.
- 📉 Turnover was nil for the year ended June 30, 2025.
- 💔 Gross loss of Rs 283.045 million reported (vs. Rs 411.875 million in 2024).
- ⚠️ Auditors expressed an adverse opinion on financial statements.
- 🏦 Company is in negotiation with banks for restructuring proposals.
- 🌐 Import meets the shortfall of polyester fibre and acrylic fibre.
- 🚧 Restructuring proposals are under discussion with financial institutions but have not yet yielded positive outcomes.
- 📜 Auditors referred to Note 6.2 regarding non-valuation of leasehold land.
- 🚫 No provision for markup due to pending restructuring.
- 📊 Management confident restructuring with waiver of markup will be accepted.
🎯 Investment Thesis
Based on the information available, a SELL recommendation is warranted. The company’s operational shutdown, significant losses, and the auditor’s adverse opinion indicate a high risk of further financial deterioration. The reliance on restructuring proposals, without guaranteed success, adds further uncertainty. Price target is close to zero. The time horizon is short term.
Disclaimer: AI-generated analysis. Not financial advice.