KARACHI: Lucky Cement Ltd said on Thursday it’ll reclassify Rs116 billion from its revenue reserves to separate capital reserves — which aren’t distributable by way of dividend — to reflect their nature “more accurately”.

Set aside to pay future obligations, reserves are retained earnings of a company and appear on its balance sheet as liabilities.

As opposed to capital reserves that are meant for financing long-term projects, revenue reserves are generally used for meeting short-term financial needs.

Unlike capital reserves, revenue reserves can be used for the distribution of dividends.

A regulatory filing with the Pakistan Stock Exchange said that the company has over the years continued with its expansion and diversification strategy, making significant investments to enhance the enterprise value for its shareholders.

Published in Dawn, June 23rd, 2023