Karachi: As already intimated vide this office letter # FCML/1488/G/327 and 328 respectively dated 07-10-2011, the Board of Directors of the Company in their meeting held on 05th October 2011 under the Chairmanship of SH. Naseem Ahmad at 129/1 Old Bahawalpur Road. Multan have recommended issuance of Bonus Shares in proportion of 2.05 bonus shares for every 10 ordinary shares held, i.e., 20.50%.
A copy of the Certificate issued by the Auditors of the Company regarding the free Reserves of the Company for issuance of Bonus Shares is enclosed as required under the law.
As requested, we have reviewed the computation of residual free reserves for the issue of bonus shares prepared by the Company and have ascertained from the Company’s audited financial statements for the year ended June 30, 2011 that the residual “free reserves” in terms of the meaning given to “free reserves” in the Companies (Issue of Capital) Rules, 1996 after the proposed issue of bonus shares of face value of Rs. 38.4 million would be higher than twenty five percent of the enhanced paid-up capital of Rs. 226.0 million.
We have reviewed the contingent liabilities outstanding as at June 30, 2011 to determine the contingent loss, if any, falling within the scope of paragraph 14 of the International Accounting Standard 37 Provisions, Contingent Liabilities and Contingent Assets” and confirm that there are no such liabilities that have not been recognized in the financial statements and would need to be deducted from aforementioned “free reserves” of the Company.
This certificate is being issued on request of the Company for the purpose of bonus shares in accordance with Rule 6 of the Companies (Issue of Capital) Rules, 1996.
For more information, contact:
A member of
Deloitte Touch Tohmatsu
Fazal Cloth Mills Limited
129-1, Old Bahawalpur Road,