Dewan Forooque Motors Denies Claims of Rs.1 Billion Default

Dewan Farooque Motors Limited (DFML) has refuted a social media claim alleging a default of over Rs. 1 billion. The company clarified to the Pakistan Stock Exchange (PSX) that no such default occurred during the period covered by its audited financial statements for the year ending June 30, 2024. The claim, which appeared on X (formerly Twitter), also suggested uncertainties about DFML’s ability to continue operating. However, DFML management expressed confidence in improved financial performance in the coming year. According to DFML, the social media post referenced the company’s history since 2008, though after more than a decade, the company celebrated the restart of its vehicle manufacturing operations. On a positive note, the company announced the June 4, 2024 launch of the ‘KIA Shehzore’. The financial statements, signed in November 2024, cover the short operational period ending June 30, 2024. This period covers less than one month of operations. The company also announced the restructuring of existing debt with banks, setting up a step-up repayment plan for coming years. Another milestone highlighted was the start of local production of Honri electric vehicles. This is the first time electric cars have been manufactured in Pakistan. This production is done for a sister company on a toll manufacturing basis. The notice concluded by thanking shareholders for their continued support and confidence, emphasizing the positive nature of these developments. Here are the exact words from the notice: