Category: Corporate

  • SECP issues guidelines for license renewal amid COVID-19

    SECP issues guidelines for license renewal amid COVID-19

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has issued guidelines for license renewal in order to facilitate companies considering difficulties due to COVID-19.

    The SECP issued Circular No. 19/2020 for extension in time for renewal of licenses due to COVID-19.

    The regulator said that the COVID-19 (coronavirus) had affected many businesses around the globe and had been declared as pandemic.

    In order to facilitate the shareholders/directors/employees during this ongoing pandemic, the SECP issued the guidelines regarding renewal of their licenses, issued in pursuance of section 42 of the Company Law.

    The SECP said that the companies whose license were due for renewal before the month of February 2020, and had not applied for renewal, their license shall be revoked in accordance with the provision of Section 42(5) of the Companies Act, 2017.

    The SECP further said that the companies whose license had been expired in the months of February, March, April and May 2020 but had not applied for its renewal would continue to carry on their business and their license would not be revoked till June 30, 2020. However, upon receipt of their applications, license shall be renewed from the date of expiry of their existing license.

    The regulator further said that the companies, which had applied for renewal of their license either before or after February 01, 2020 and certain deficiencies were also communicated to them, were required to respond to the quarries latest by May 30, 2020, failing which their license would be revoked.

    “Companies, which do not find any difficulty in complying with the requirements of the renewal of their license, may apply in a routine manner,” the SECP said.

  • PIA declares Rs56 billion after tax annual loss

    PIA declares Rs56 billion after tax annual loss

    KARACHI: The national flag carrier, Pakistan International Airline, has declared after tax loss of Rs56 billion for the year 2019, according to financial results submitted to Pakistan Stock Exchange (PSX) on Monday.

    The national flag carrier managed to reduce the annual loss by Rs10.66 billion from last year’s loss of Rs66.66 billion.

    The net revenue of the airline increased by around 40 percent to Rs164.64 billion in 2019 as compared with Rs118 billion in the preceding year.

    The cost of services including, cost of fuel, increased to Rs152 billion in 2019 as compared with Rs132.79 billion in the preceding year.

    The airline manage to post gross profit of Rs12.65 billion for the year 2019 as compared with around Rs15 billion loss in the previous year.

    The distribution costs of the airline increased to Rs7.33 billion from Rs6.3 billion. Administrative expenses of the airline also increased to Rs11.3 billion from Rs10.47 billion.

    The airline incurred losses to the tune of Rs11.69 billion due to depreciation of rupee. The exchange loss was Rs15 billion in the last year.

  • SECP facilitates companies in IAS 39 requirements

    SECP facilitates companies in IAS 39 requirements

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SEC) has allowed relief registered companies that are applying IAS 39/principles of IAS 39 (for Available for Sale equity instruments).

    The SECP issued S.R.O. 414 (I)/2020 and allowed following relief from the requirements contained in IAS 39 in relation to their Available for Sale (AFS) Equity Investments as follows:

    (a) The company/entity can opt to show impairment loss (if any, due to significant or prolonged decline in fair value of AFS equity investment portfolio), as at March 31, 2020, in the statement of changes in equity.

    (b) If the above short-term relief is opted, the company/entity shall disclose in the notes to the financial statements:

    (i) amount of impairment loss included in the statement of changes in equity under (a) above;

    (ii) amount of profit or loss after tax, arrived at by accounting for the impact of impairment loss in accordance with IAS 39; and

    (iii) Earnings per share based on the (ii) above.

    (c) The dividend income and actual realized gain/loss arising from the de-recognition of AFS equity instruments shall be recognised in the profit and loss account in accordance with the requirements of IAS 39.

    (d) The amount of loss taken to equity as per (a) above, shall be treated as a charge to profit and loss account for the purpose of distribution as dividend, where applicable.

    (e) The amount taken to equity as per (a) above for an AFS equity instrument, adjusted with the fair value change of this AFS equity instrument during the period from April 01, 2020 to June 30, 2020, shall be considered for impairment in accordance with the requirements of IAS 39.

    (f) The impairment loss (if any), as of June 30, 2020, as per (e) above shall be taken to the profit and loss account for the year/period ending June 30, 2020.

    The SECP said that companies/entities willing to follow the full requirements of IAS-39 as applicable are encouraged to do so.

  • PQGTL signs agreement with Gabitt

    PQGTL signs agreement with Gabitt

    KARACHI:  Pak-Qatar General Takaful Limited (PQGTL) has signed an agreement with Gabitt, a ride hailing service.

    The ceremony, which was held recently, was attended by Nasir Ali Syed, CEO Pak-Qatar General Takaful Limited and Farhan Ahmed, CEO L1 Solution Private Limited along with other senior officials from both the companies.

    Through this strategic alliance, the users and driving partners of Gabitt will have an opportunity to avail various coverage solutions specifically designed and developed by Pak-Qatar General Takaful.

    While speaking on the occasion, Nasir Ali Syed said: “This agreement with Gabitt will surely bring a positive change in the life of the driving partners as they are more prone to risks when they are out on the roads.

    “Offering complementary Takaful Coverage will give them the much needed comfort and peace of mind that will eventually translate into a better performance, required social security and enhanced loyalty.

    “Moreover, the optional coverage solutions, available to them online, will allow driving partners and users of Gabitt to avail coverage needs efficiently without any hassle.”

    Farhan Ahmed on the occasion said, “We realize how important our driving partners are to us and we consider them as our family members.

    “Therefore, their protection and comfort has been our top priority.

    “I hope this collaboration will be beneficial for both Pak-Qatar Takaful and Gabitt which will further lead to a long-term business relationship.”

  • Engro signs pact with Bill & Melinda Gates Foundation to support poverty alleviation in Pakistan

    Engro signs pact with Bill & Melinda Gates Foundation to support poverty alleviation in Pakistan

    KARACHI: Engro Foundation has signed a three-year agreement with the Bill & Melinda Gates Foundation to promote the well-being of vulnerable and marginalized segments of the society in Pakistan.

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  • Engro Corp declares Rs5.94 billion after tax quarterly profit

    Engro Corp declares Rs5.94 billion after tax quarterly profit

    KARACHI: Engro Corporation has declared profit after tax at Rs5.94 billion for the quarter ended March 31, 2020. The after tax profit fell by nine percent when compared with Rs6.56 billion in the same quarter last year.

    Engro’s consolidated revenue grew by 11 percent in comparison to the prior period, mainly driven by energy projects in Thar coming online during July 2019 and offset by lower turnover of Fertilizers and Petrochemicals businesses.

    Profit attributable to the owners was recorded at Rs3,317 million compared to Rs4,010 million for the prior period.

    On a standalone basis, the Company posted a profit after tax of Rs780 million against Rs3.832 billion for the same period last year, translating into an earning per share of Rs1.35 per share.

    This decrease is primarily attributed to delays in receipts of dividends from subsidiaries as their Annual General Meetings (AGMs) have been postponed on account of the COVID-19 lockdown.

    This is, therefore, a temporary timing difference between quarters and not reflective of underlying performance of the Company.

    The company announced an interim cash dividend of Rs6 per share for the first quarter. Like in the past, the Board has endeavored to maximize dividends on a quarterly basis, however, the future dividends for the year would be based upon prevailing situation and earnings for the year.

    The portfolio of Engro Corporation is resilient in these difficult times and the Company remains confident that despite challenging circumstances, it will be able to maintain a healthy performance in upcoming quarters.

  • SECP shuts registration offices, facilitation centers amid coronavirus outbreak

    SECP shuts registration offices, facilitation centers amid coronavirus outbreak

    The Securities and Exchange Commission of Pakistan (SECP) has announced the closure of Companies Registration Offices (CROs) and facilitation centers until further notice as a preventive measure against the spread of coronavirus disease (COVID-19).

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  • SECP extends insurance license renewal date

    SECP extends insurance license renewal date

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has extended license renewal date for insurance brokers in the wake of coronavirus outbreak.

    The SECP issued Circular No. 12 on Monday to extend the date for license renewal for insurance business.

    The SECP said that considering the gravity of the pandemic coronavirus (COVID-19) on public health and lockdown situation in the country, insurance brokers, insurance surveyors and authorized surveying officers are facing difficulties while ensuring compliance with regulatory requirements related to renewal of license under the Insurance Ordinance, 2000.

    The SECP said that in order to facilitate the insurance brokers, insurance surveyors and ASOs during the ongoing pandemic, the regulator issued following guidelines regarding renewal of licenses:

    (i) Any insurance brokers/insurance surveyor/ASO whose license has expired or will expire during the period from March 15, 2020 to May 15, 2020 shall continue to carry on its business without renewal of its current license with the commission;

    (ii) The above relaxation shall be effective for a period of two months i.e. it shall end on May 15. The respective insurance brokers, insurance surveyors, and ASOs shall be bound to file their applications prior to the deadline of May 15, 2020.

    (iii) Upon receipt of the application, license shall be renewed effective from the date of expiry of the previous license.

    (iv) Insurance brokers, insurance surveyors and ASOs facing difficulties to arrange documents, required under the Ordinance for renewal of license may avail the above mentioned relaxation.

    (v) While surveyors/ASOs can file applications online through e-services, insurance brokers may send their applications to the commission via email until the expiry of the lockdown; and

    (vi) All insurance companies/ general takaful operators shall continue to do business with insurance brokers /insurance surveyors/ASOs considering the grace period of two months for any license expired after March 15, 2020.

  • Engro Fertilizers sets up quarantine facility to prevent coronavirus spread

    Engro Fertilizers sets up quarantine facility to prevent coronavirus spread

    Engro Fertilizers has set up a 60-bed quarantine facility at its Technical Training College (TTC) in Daharki as part of its ongoing efforts to support the district authorities and local community amid the coronavirus outbreak, a statement from the company said on Thursday.

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  • Emirates uplifts record cargo from Pakistan amid coronavirus pandemic

    Emirates uplifts record cargo from Pakistan amid coronavirus pandemic

    DUBAI: Emirates SkyCargo completed an industry record uplift of 62 tonnes in a Boeing 777-300 operating from Karachi to Dubai, surpassing its own previous record of 56 tonnes achieved earlier in the week, a statement said on Thursday.

    Amid these unprecedented times in the wake of the COVID-19 pandemic, Emirates SkyCargo continues to underline its commitment to Pakistan by breaking not just one but two records last week to transport essential supplies.

    Exports from Pakistan included perishables like meat, fish and vegetables while imports were mainly pharmaceuticals, testing machines, other medical accessories, industrial machinery, drilling equipment and general courier.

    Given the current challenges with global air cargo capacity due to restrictions on passenger flights, Emirates SkyCargo continues to ensure that commodities such as food and medical supplies are transported to and from Pakistan with four weekly cargo flights each from Karachi and Lahore.

    The much needed capacity will help connect and reach essential commodities to places that need them most, keep global supply chains open, and support communities and businesses in Pakistan and worldwide.

    In recent weeks, Emirates SkyCargo has transported close to 100 tonnes of relief material, including hospital equipment to Milan, and over 55 tonnes of highly temperature-sensitive pharma to New York.

    In March and April, the cargo airline will operate nine charter freighters to Budapest to transport face masks and equipment. Emirates SkyCargo is also playing a vital role in transporting food across the Middle East, and its special flights from the subcontinent and Africa are bringing in tonnes of perishables to Dubai and onwards to other destinations within the Middle East.

    Nabil Sultan, Emirates’ Divisional Senior Vice President, Cargo said: “In these trying times, we more than ever stand by our commitment for Emirates SkyCargo to act as a conveyor belt for the transport of much needed commodities such as food and medicines and also for flying in equipment, machinery and other components which are vital for business continuity across essential industries in Pakistan.

    “As an extremely agile and customer-focused business, we have been able to establish a new network and schedule for our cargo operations within a very short period of time, utilising lower deck capacity on our wide-body Boeing 777 passenger aircraft which supplement the cargo capacity we offer on our freighter aircraft.

    “Additionally, in order to consolidate operations and reduce costs, we have also temporarily shifted all our cargo handling operations to Dubai International Airport (DXB). Taken together, we are making sure that we react more quickly to requests coming in from every part of the globe from our customers.”

    Emirates SkyCargo’s new flight schedule for its global cargo operations also includes cargo flights operated on its Boeing 777 passenger aircraft.

    These flights will offer around 40 tonnes of lower deck cargo capacity per flight and will supplement the cargo capacity being offered on Emirates’ fleet of freighters.

    These cargo only flights are scheduled to operate to over 30 destinations across the Middle East, Africa, Asia, Europe and Australia with a majority of destinations being served with multiple weekly and daily flights.

    From 1 April 2020, Emirates SkyCargo will consolidate all its cargo handling operations at Dubai International airport, temporarily suspending operations at Emirates SkyCentral DWC, the terminal handling its freighters, the statement said.

    The move will help streamline cargo operations between its freighters and the new dedicated cargo flights on Emirates’ passenger aircraft.