WhatsApp Logo Subscribe
For News Alert

News

Bolan Castings Ltd. halts production amid financial strain and drop in orders

By News Desk

August 23, 2024 07:36 PM


Twitter Share Facebook Share WhatsApp Share

Bolan Castings Limited, a subsidiary of Millat Tractors Limited, has announced a suspension of its production activities due to a significant drop in customer orders and severe financial difficulties resulting from delayed payments from its primary customers.

According to 24NewsHD TV channel, the development was disclosed in a notice sent to the Pakistan Stock Exchange (PSX) on Friday. The company manufactures and sells casting for tractors and automotive parts.

The notice, issued by Bolan Castings' Company Secretary Arafat Mushir, stated, "Due to a drastic drop in orders from our customers, the Company is facing a drop in sales.

Additionally, delays in payments from our main customer are also causing severe financial strain.

Hence, the management of the Company has decided to halt the production activities of the Company from Monday, August 26, 2024, till further notice."

Bolan Castings Ltd. has requested the PSX to inform the TRE Certificate holders about this material information and has also notified the Securities & Exchange Commission of Pakistan (SECP) regarding the situation.

The company, a public listed entity incorporated in Pakistan on July 15, 1982, under the Companies Act, 1913 (now the Companies Act, 2017), specializes in the manufacturing and sale of castings for tractors and automotive parts.

This announcement follows a similar decision by Millat Tractors Limited (MTL), which on Thursday declared the suspension of its production operations due to unresolved issues related to the Goods and Services Tax (GST) refunds.

MTL, in its notice to the PSX, highlighted that while the GST on tractors is set at 10%, the GST on input raw materials is 18%, leading to a growing accumulation of refund claims.

 Despite the company's efforts to seek clarification, the government has yet to establish a mechanism for processing these refunds, compelling Millat Tractors to cease production until further notice.

 


News Desk


Most Read

  1. KP CM Gandapur fires his information adviser Barrister Saif KP CM Gandapur fires his information adviser Barrister Saif
  2. Dania Shah’s husband Hakeem Shahzad claims Hiba Bukhari conceived after using his medicines Dania Shah’s husband Hakeem Shahzad claims Hiba Bukhari conceived after using his medicines
  3. Terrorists massacre 20 Pashtun workers at Duki coalmines in Balochistan Terrorists massacre 20 Pashtun workers at Duki coalmines in Balochistan
  4. Ramsha Khan and Ahad Raza Mir’s romantic strolls & shopping spree in London Ramsha Khan and Ahad Raza Mir’s romantic strolls & shopping spree in London
  5. 27 agreements will be signed during Pakistan visit, says Saudi minister 27 agreements will be signed during Pakistan visit, says Saudi minister
  6. England in sight of victory after Brook's triple hundred England in sight of victory after Brook's triple hundred