Barkat Frisian Agro Limited has issued a clarification regarding a deferred tax expense of PKR 74.46M recognized in its financial statements for the year ended June 30, 2026. This announcement aims to enhance understanding among shareholders and stakeholders about the nature and implications of this accounting charge.
- The deferred tax expense is primarily due to differences related to fixed assets, particularly at the Faisalabad Factory.
- The Company operates under a Special Economic Zone (SEZ) status, granting it a ten-year tax exemption from corporate income tax, valid until April 2029 for the Karachi Plant and June 30, 2035 for the Faisalabad Plant.
- The current income tax expense for FY2026 is reported as nil, reflecting the benefits of the tax exemption.
- The PKR 74.46M deferred tax expense is a non-cash accounting charge and does not represent a current cash outflow or tax payable.
- The Company reassures that this deferred tax liability is not expected to result in cash outflows during or after the exemption period.