ISLAMABAD: This refers to the news item published in your esteemed newspaper dated 05.10.23 regarding M/s. Saudi Pak Leasing Company Limited (SPLC) needs clarifications.
The observation regarding legal charges of PKR 8 million spent during the financial year ended. These charges actually include accruals of Rs 1.9 million pertaining to last year i.e. 2022 and it also includes court fees and other misc. charges like newspaper publications and notices.
Issue of SPLC lands on MoF desk
Moreover, in comparison to the last year recovery of Rs 30 million, this year a total recovery of PKR 120 million has been made (i.e. PKR 89 million during the financial year 2023 and subsequently PKR 31 million in the month of August 2023).
It is pertinent to mention that this company which had a loss of PKR 64.6m has now secured profit of PKR 14.5m and whereas the total liabilities, which stood at PKR 1394m (2022) have come down to Rs 1380m. The company is in profit for last quarters and made profit of PKR 33 million as at 30.09.23.
Observation regarding change of status of the company from leasing company to Consultancy Company under the name of Synergy Consultancy Company. It may be noted that SPLC license of leasing has been cancelled by the SECP and hence the company cannot continue as a leasing company.
Hence, it is in the best interest of the company, to keep it operational in the absence of license.
The Board decided to change / Alter Memorandum and Article of Association of the company and deleted those functions which required a license so that the company remained functional as a non NBFC, instead of being liquidated.
Hence, the change in name and functions of the company to a consultancy company was necessary for its survival.
The proposed changes will be put up for approval in the forthcoming AGM of the company to the shareholders. If approved then will be submitted for final approval of the SECP.
It should be appreciated that the management due to its best efforts had made the company from a loss making to a profitable company. Management is striving hard to keep this company afloat by improving recovery and haircuts from the creditors.
It may also be noted that for settlement only one certificate of Investment (COI) holder remains for payment and three Banks‘ liabilities remain due for which negotiations are going on with them. It may also be noted that our assets over 880 million are in litigation and we are optimistic of the outcome.
Copyright Business Recorder, 2023
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