Mehran Sugar Mills Limited’s free reserves–issue of bonus shares

Karachi, June 03, 2013 (PPI-OT): In pursuance of the Bonus shares Announced by the Board of Directors of the Company, we are submitting herewith the Auditors’ Certificate in compliance of Rule 6 (iii) of the Companies (Issue of Capital) Rules 1996.

Following is the working of free reserves, you are requested to issue Certificate of Free Reserve accordingly to issue Bonus Shares as required under Rule 6 (iii) of Companies (Issue of Capital) Rules 1996.

Share Capital                             A               230,192,210
Proposed Bonus Share issued @ 10%         B                23,019,221
Enhanced Capital                        C=A+B             263,211,431
25% of Enhanced Capital                 D=C*25%            63,302,858
Capital Reserve                                            63,281,250
Revenue Reserve                                            85,000,000
Accumulated Profit                                        882,468,428
                                          E             1,030,749,678
Less: Proposed Bonus Issue                F                23,019,221
Less: Contingencies                       G                65,893,875
Free Reserve                            H=E-F-G           941,836,782

Ernst and Young Ford Rhodes Sidat Hyder

Free Reserves

As requested, we have examined the annexed computation of residual free reserves for the issue of bonus shares prepared by the Company on the basis of reviewed financial statements for the half year ended 31 March 2013. Based on our examination, we confirm that the residual “free reserves” of the Company, 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. 23,019,221/- would be higher than twenty five percent of the enhanced paid-up capital of Rs. 253,211,431/-.

This certificate is being issued at the request of the Company for the purpose of issue of bonus shares in accordance with Rule 6 of the companies (Issue of Capital) Rules, 1996.

For more information, contact:
Muhammad Hanif Aziz
Company Secretary
Mehran Sugar Mills Limited
Adamjee House, 8th Floor
I. I. Chundrigar Road,
Karachi-74000, Pakistan.
Tel: 92-(21) 3241-7131, 92-(21) 3242-3881
Fax: 92-(21) 3241-6477