Dewan Farooque Motors Limited (DFML) has refuted recent social media claims alleging a default of over Rs. 1 billion in repayments, clarifying that no such default occurred during the period covered by its Audited Annual Financial Statements for the fiscal year ending June 30, 2024.
The allegations, shared on the social media platform X (formerly Twitter), also suggested that material uncertainties exist regarding the company’s ability to continue as a going concern. In response, DFML issued a notice to the Pakistan Stock Exchange (PSX), assuring stakeholders of its financial stability and expressing confidence in improved operational results for the upcoming fiscal year.
DFML clarified that the social media claims pertain to financial challenges from past years, dating back to 2008, and do not reflect the company’s current position. The company emphasized that it has since achieved significant milestones, including the resumption of vehicle manufacturing after a hiatus of more than a decade.
One of the key achievements highlighted was the launch of the KIA Shehzore on June 4, 2024, marking a major step forward for the company. DFML noted that its financial statements for the fiscal year ending June 30, 2024, covered an operational period of less than a month, as the accounts were finalized in November 2024.
DFML also shared positive updates regarding its financial restructuring, stating that its old debts are being rescheduled and restructured by banks, with step-up repayment plans in place for future years.
Additionally, the company revealed that it has begun local production of electric cars (Honri) for the first time in Pakistan’s history. These vehicles are being manufactured on a toll basis for a sister concern, further diversifying the company’s operations and revenue streams.
In its statement, DFML expressed gratitude for the continued support and confidence of its shareholders, emphasizing that the company is on a path of recovery and growth. “All of these factors are positive, and we value the support, patronage, and confidence posed by the shareholders on the affairs of the company,” the notice concluded.
