KARACHI – The Engro Corporation Limited (ECL), one of the largest conglomerates listed at Karachi Stock Exchange, is planning to increase the company’s authorised capital by Rs 1.0 billion to Rs 4.5 billion. The fertiliser and power giant had calculated its existing authorised capital at Rs 3.5 billion as of December 31, 2010.
The ECL has notified its shareholders at the country’s three bourses in Karachi, Islamabad and Lahore about the company’s intention to increase its authorised capital to be effective after due approval is received from the stakeholders in the forthcoming annual general meeting scheduled on March 31st. According to the notice, the auditors had given a green signal to the company saying no contingent liabilities were deductible from the company’s ‘Free Reserves’.
“In the light of above, as requested, we have ascertained from the company’s audited financial statements… that the company’s residual free reserves in terms of the meaning given to free reserves in the Companies (Issue of Capital Rule) Rules, 1996 after the proposed issue of bonus shares of a face value of Rs 855.474 million would be higher than 25 percent of the enhanced paid up capital of Rs 3,932,843 thousand subject to the aforementioned increase in authorized capital,” the ECL quoted its auditors from AF Ferguson and Company as saying.
