Investment in associated companies by Dewan group of companies.

Annual General Meetings of M/s. Dewan Sugar Mills Limited, Dewan Mushtaq Textile Mills Limited, Dewan Khalid Textile Mills Limited and Dewan Textile Mills Limited were scheduled to be held on March 31, 2001. While examining the contents of the notices of the said AGMs, it was observed that the companies intended to seek approval of the shareholders for passing Special Resolutions pertaining to loans and advances to their associated companies. It was further checked that all the companies have already exceeded the limit of 30% as fixed under Section 208(1) of the Companies Ordinance, 1984 for making investment in associated companies

Since the proposed special resolutions were found in violation of the provisions of Section 208(1) of the Companies Ordinance, 1984, the companies were directed not to proceed further for getting approval of the shareholders.

On our direction, the management of the aforesaid companies have confirmed in writing that the proposed resolutions pertaining to the investments in associated companies will not be moved in the AGMs.

Korean Ambassador Visits New Automobile Plant

Korean Ambassador Visits New Automobile Plant

Mr. Yoon Jee-joon, Ambassador of the Republic of Korea recently visited the newly built Dewan Farooque Motors automobile plant in Sujawal. Mr. Yoon Jee-joon flew in for the occasion on a special Dewan Group helicopter along with Mr. See Young Lee, Consul General, Republic of Korea, and Mr. Ye Young Lee, Director & General Manager of Hyundai Corporation Co., Pakistan Liaison office. They were accompanied by Mr. Dewan M. Yousuf Farooqui, Managing Director, DFML, and Mr. Dewan Abdullah Ahmed, Deputy Managing Director of the company.

The plant will produce vehicles under license from Hyundai Motor Company and Kia Motors Corporation of Korea, bringing the latest automotive technology to Pakistan's automobile industry. Mr. Yoon Jee-joon appreciated the fact that the newly built plant has a capacity of assembling 10,000 units on single shift basis and 20,000 on double shift basis. The plant will have a state-of-the-art CED paint shop from Shindur. The plant will shortly start producing 1000cc, 1300cc and 1500cc passenger cars and a 4x4 sports utility vehicle made from the latest technology of R&D of Korea; like the recently launched one-ton pick-up, Shehzore.

The Korean ambassador then celebrated the event by planting a young tree at the site. He was also taken to the Dewan Sugar Mills, which is situated nearby, and then shown the school and zoo set up by the Dewan Group for the people of the area.