KARACHI, April 10: Usman Textile Mills Limited announced on Monday that the board of directors had decided to ask shareholders for approval of winding up of the company voluntarily.
An extraordinary general meeting of the members has been called on April 29, which would be asked to pass the following special resolution, with or without modification: “Resolved that Usman Textile Mills Limited be and is hereby wound up voluntarily by the members under section 35B of the Companies Ordinance, 1984.”
In a statement under section 160 of the Ordinance, pertaining to the special business, the company stated that during the past several years, operating results of Usman Textile Mills Limited, had been unsatisfactory and the company had to cease operations in 1998 in view of continued losses.
The directors lamented that the goods manufactured by the company could not be sold at prices to break even due to high cost of production; the huge amounts of loans could not be paid-back for want of funds and the debt/liabilities of the company kept on increasing due to high rate of mark-up.
The statement said that in view of such circumstances, the company in its Extraordinary General Meeting held on May 5, 1999, had passed a resolution to sell the undertakings of the company to pay off the liabilities. “All the fixed assets of the company have now been sold and the liabilities discharged except for contingent liability, unclaimed dividends and provisions,” the statement said, and added that the company had funds available against the shareholders’ equity which could not be paid to the shareholders unless the company was wound up. “In view of the scenario and having ceased its business, there is now no alternative for the company but to wind up voluntarily,” the company said.
Meanwhile, on Monday, Usman Textile Mills Limited also released financial figures for the half-year ended March 31, 2002, posting an after tax profit of Rs0.272 million. In the same period in 2001, the company had made loss of Rs10.6 million. That year, the company had incurred loss of Rs12.2 million on sale of fixed assets, which had wiped out the income of Rs4.1 million. For the six months to end-March 31, 2003, the company is shown to have earned income of Rs2.4 million. Including the profit of Rs0.272 million for the six months under review, the company carried accumulated profit of Rs115.5 million, available for appropriation. Interim dividend at 300 per cent was shown to have claimed Rs111.8 million.
