Islamabad, 24, Apr, 2025: Fatima Fertilizer Company Limited (PSX: FATIMA) has received shareholder consent to prolong a Rs5 billion short-term finance facility for its affiliate, Reliance Commodities (Pvt) Limited, for another year.
The approval came through a special resolution endorsed during the company’s general meeting, aligning with the stipulations of Section 199 of the Companies Act, 2017, and the Companies (Investment in Associated Companies or Associated Undertakings) Regulations, 2017.
This decision permits the extension of the existing running finance arrangement for an additional 12-month period, maintaining its nature as a renewable facility subject to annual approval in subsequent general meetings.
Fatima Fertilizer emphasized that the renewal reflects the company’s commitment to supporting associated entities through structured financial backing while adhering strictly to regulatory frameworks.
The finance line enables Reliance Commodities to manage its operational cash flow efficiently and meet working capital demands under favorable terms.
As part of the resolution, the board has empowered the company’s top executives to independently oversee and execute all procedures connected to the renewal.
The Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, and Company Secretary have each been authorized to engage in discussions, finalize terms, sign documentation, and complete any necessary formalities to operationalize the facility.
This delegation ensures flexibility and expedites the completion of administrative and legal requirements.
Fatima Fertilizer reiterated that such financial arrangements are made in the best interest of both parties, ensuring continued operational support without compromising shareholder value or corporate governance standards.
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The move also underlines the company’s proactive approach to resource management and strategic alignment with its associated undertakings.
With this renewal, Fatima Fertilizer continues to reinforce its role as a key financial pillar within its group structure, fostering long-term stability and inter-company synergy.
The reaffirmed facility provides Reliance Commodities with a reliable credit line, positioning it to navigate market fluctuations and pursue business opportunities with added confidence.
