Mon. Nov 11th, 2024

Board of Directors Approves Loan

Fauji Foods Limited (FFL) has approved a loan of Rs. 350 million to its wholly-owned subsidiary, M/S Fauji Infraavest Foods Limited. This financial support is intended to help the subsidiary with its working capital requirements and certain capital expenditures. This move highlights FFL’s commitment to strengthening its subsidiary’s operational capabilities.

Loan Terms and Conditions

  • Loan Amount: Rs. 350 million
  • Mark-Up: 6 months KIBOR plus 1 percent, payable bi-annually
  • Approval Exemption: Under SECP SRO 1239(1)/2017, FFL is exempt from obtaining shareholder approval for this loan.

Overview of Fauji Foods Limited

FFL, a subsidiary of Fauji Fertilizer Bin Qasim Limited, is involved in the processing and sale of dairy products, including toned milk, milk powder, fruit juices, and other related food products. This financial support to Fauji Infraavest Foods Limited aligns with FFL’s broader strategy to enhance market presence and operational efficiency.

Support Independent Journalism

To maintain the delivery of independent journalism, consider supporting our mission. Your contributions help us share global news and maintain our commitment to open, independent journalism.

see Also:

Related FAQs

1. What is the purpose of the Rs. 350 million loan approved by FFL?
The loan is intended to support Fauji Infraavest Foods Limited in meeting its working capital requirements and covering certain capital expenditures.

2. What are the terms of the loan?
The loan includes a mark-up on the principal amount, payable bi-annually at 6 months KIBOR plus 1 percent.

3. Is shareholder approval required for this loan?
No, FFL is exempt from obtaining shareholder approval under SECP SRO 1239(1)/2017.

4. What are the main products of Fauji Foods Limited?
FFL primarily processes and sells toned milk, milk powder, fruit juices, and other allied dairy and food products.

5. How does FFL support its subsidiary?
FFL provides financial support to its subsidiary, M/S Fauji Infraavest Foods Limited, through strategic loans to enhance operational capabilities.

6. Who is the parent company of Fauji Foods Limited?
The parent company is Fauji Fertilizer Bin Qasim Limited.

7. What is the significance of the loan’s mark-up rate?
The mark-up rate ensures a structured repayment plan that benefits both FFL and its subsidiary.

8. How does this loan impact FFL’s strategic goals?
The loan supports FFL’s broader vision to enhance market presence and operational efficiency.

9. What regulatory exemptions apply to this loan?
FFL is exempt from obtaining shareholder approval under SECP SRO 1239(1)/2017.

10. How can individuals support independent journalism?
Individuals can support independent journalism by contributing on a monthly basis, helping maintain a commitment to open and independent news reporting.

Leave a Reply

Your email address will not be published. Required fields are marked *