Pkrevenue.com

Category: Corporate

  • Cement factory shuts down on financial challenges

    Cement factory shuts down on financial challenges

    KARACHI: A cement factory has been closed down completely owing to financial difficulties making, according to a notices send to Pakistan Stock Exchange (PSX) on Monday.

    The board of directors of directors (BoD) of Dandot Cement Company Limited in its resolution on October 30, 2019 decided to close down the factory completely while complying with all relevant laws in respect.

    The company in its communication said that the company had been facing serious challenges with respect to viable operations, adequate liquidity and had incurred huge financial losses for the last many years.

    “Further, the current operations of the existing plant are unable to meet the prescribed environmental standards as stipulated by the law.”

    Hence, a large amount of fresh capital needs to be invested for a comprehensive Balancing, Modernization and Replacement (BMR) of the project to achieve environment standards, energy efficiency with cost effectiveness and convert the process into automated to made the company financially viable and legally compliant.

    It said that the company had no finance of its own and needed to raise fresh capital to invest in the BMR project.

    After the relevant finances have been arranged, the project execution will also take more than 12 months, as the current plant needs to be dismantled before new equipment can be installed therein.

    This entire process will take an indefinite period of time to complete before operation can resume.

  • UBL pays Rs11.59 billion against tax demand

    UBL pays Rs11.59 billion against tax demand

    KARACHI: United Bank Limited (UBL) has paid Rs11.59 billion against tax demand created by Federal Board of Revenue (FBR) for past multiple years.

    According to financial statement submitted to Pakistan Stock Exchange (PSX) on Wednesday, the bank said that the income tax authorities had issued amended assessment orders for the tax years 2003 to 2018, and created additional tax demands (including disallowances of provisions made prior to Seventh Schedule) of Rs.11.591 billion (December 31 2018: Rs.13.119 billion), which had been fully paid as required under the law.

    However, the bank has filed appeals before the various appellate forums against these amendments, the bank said, adding that where the appellate authorities have allowed relief on certain issues, the assessing authorities have filed appeals before higher appellate forums.

    “Where the appellate authorities have not allowed relief the Bank has filed appeals before higher appellate forums. The management of the Bank is confident that the appeals will be decided in favor of the Bank.”

    According to the financial statement, the bank said that the tax returns for Azad Kashmir (AK) and Gilgit Baltistan (GB) Branches have been filed up to the tax year 2018 (financial year 2017) under the provisions of section 120(1) read with section 114 of the Ordinance and in compliance with the terms of the agreement between banks and the Azad Kashmir Council in May 2005.

    The returns filed are considered as deemed assessment orders under the law.

    The bank further said that the tax authorities have also carried out monitoring for Federal Excise Duty, Sales tax and withholding taxes covering period from year ended 2007 to 2017.

    Consequently various addbacks and demands were raised creating a total demand of Rs. 889 million (2018: Rs. 995 million).

    The Bank has filed appeals against all such demands and is confident that these would be decided in the favor of the bank.

    The tax returns for Yemen, Qatar and UAE branches have been filed upto the year ended December 31, 2018 under the provisions of the laws prevailing in the respective countries, and are deemed as assessed unless opened for reassessment.

    The bank has received corrective tax assessment of QAR 1 M (Rs: 42.946 million) from the General tax Authority (GTA) in respect of tax year 2004 with no supporting calculations from GTA.

    Management has requested details for 2004 assessment from GTA, however to date no response has been received. Management is confident that the matters will be decided in favour of the Bank and the possibility of any outcome against it is remote, the UBL said in its financial statement.

  • National Bank declares marginal growth in profit with over 20 percent high earnings in nine months

    National Bank declares marginal growth in profit with over 20 percent high earnings in nine months

    KARACHI: National Bank of Pakistan (NBP) has declared marginal growth in after tax profit of one percent for nine months period ended September 30, 2019. However, income of the bank posted over 20 percent increase for the period.

    According to a statement issued by the bank, after-tax profit for the nine-months period amounted to Rs 16.3 billion being marginally 1.0 percent higher than Rs 16.2 billion earned during the corresponding period of 2018.

    Meeting of the Board of Directors (BoD) of the bank held on October 29, 2019 (Tuesday) at the bank’s Head Office in Karachi in which the BoD approved financial statements of the bank for the nine-months period ended June 30, 2019.

    For the nine-month period, total income of the bank amounted to Rs 79.4 billion which is 20.3 percent higher than Rs 66.0 billion YoY. While net interest income closed at Rs 53.9 billion, non-mark-up / interest income closed at Rs 25.6 billion, up by 23.7 percent and 13.7 percent respectively.

    With an increase of 26.2 percent YoY, the bank’s profit before taxation amounted to Rs 29.2 billion as against Rs 23.1 billion for September 2018.

    The drop in after-tax profit is mainly attributed to higher taxation charge of 44.0 percent as compared to 30.0 percent for the corresponding period last year. Net profit translates into earnings per share of Rs 7.68 as against Rs 7.60 for the corresponding nine-months period of prior year.

    Total assets of the bank amounted to Rs 3,025.4 billion which is 8.1 percent higher than Rs 2,798.6 billion as at December 31, 2018.

    These represent 13.8 percent of the banking industry total assets. The bank’s market share in deposits, advances and investment is around 14 percent, 12 percent, and 15 percent respectively.

    Representing 12.0 percent of the total industry loans, gross advances of the bank amounted to Rs 1,093.4 billion, marginally higher than Rs 1,059.5 billion as at December 31, 2018.

    However, compared to Rs 953.3 billion of September 2018, gross advances stand increased by Rs 140.1 billion or 14.7 percent. As of September 30, 2019 deposits of the bank amounted to Rs 1,938.0 billion, depicting a drop of Rs 73.3 billion or 3.6 percent as against Rs 2,011.4 billion as of December 31, 2018.

    Deposits constitute translate into ~13.5 percent share in total banking industry deposits. Customer deposits that form 87.5 percent of the bank’s total funding pool remained stable during the period and amounted to Rs 1,695.0 billion (2018: Rs 1,674.12 billion).

    Year 2019 is NBP’s 70th year of service to the Nation, and it continues to deliver strong results. Its business strategy is evolving to ensure a focus on inclusive development through reaching and supporting underserved sectors including SME, Microfinance, Agriculture Finance, and finance for Micro-Housing on a priority basis.

    This is in addition to the bank’s dominant role in dealing with public sector enterprises and its employees. Building a digital banking capability and a technology platform will be a central part of this strategy as will the inculcation of a performance driven culture within the institution.

    For achieving the strategic goals of the bank, certain functions at the Head Office level have been re-organized to create synergies and enhance risk controls.

  • PPL announces highest-ever Rs61.6 billion after tax profit with record 11 discoveries

    PPL announces highest-ever Rs61.6 billion after tax profit with record 11 discoveries

    KARACHI: Pakistan Petroleum Limited (PPL) has posted the highest-ever Rs61.6 billion after tax profit with a record number of 11 discoveries during financial year ended June 30, 2019.

    This was disclosed at the 68th Annual General Meeting of PPL that was held on Monday.

    Members approved financial statement for the fiscal year ended June 30, 2019 together with auditor’s report.

    Final Cash Dividend of 20 percent on ordinary and convertible preference shares besides 20 percent bonus shares to ordinary shareholders and 10 percent to convertible preference shareholders was also approved.

    Shamsul Islam, Chairman, BOD presided over the proceedings and shared that PPL continued to strengthen its position as a leading oil and gas company and created healthy returns for all stakeholders.

    Moin Raza, Managing Director and Chief Executive Officer of the company highlighted PPL’s progress during 2019/2019, and said that the most significant was the highest ever profit after tax of Rs61.6 billion along with a record number of 11 discoveries in a year in company and partner-operated assets.

    The company also drilled the first ever international exploratory well, Madain – I, in operated Block 8, Iraq, a first for a national company.

    Focusing on key operational highlights, Khan mentioned drilling of 30 exploratory and development wells, including Kekra-1 in partner-operated offshore Indus G Block which encountered excellent quality reservoir but was aborted due to difficulty in locating hydrocarbons.

    He also shared ongoing efforts for expanding the company’s exploration portfolio through farm in/out and acquisition of two new blocks at the recent bidding round, making a total of 47 blocks.

    The company continued development activities to optimize production from existing fields that led to an average production of 977 MMscfde in 2018/2019. In this, he also mentioned commissioning of GPF-IV during phase I at Gambat South and Nashpa LPG plant as well as the highest-ever production of 228,310 tons barites from Bolan Mining Enterprises.

  • Meezan Bank declares net profit of Rs11 billion for nine months

    Meezan Bank declares net profit of Rs11 billion for nine months

    KARACHI: Meezan Bank has declared around Rs11 billion net profit (profit after tax) for the 11-month period ended September 30, 2019. The Board of Directors of Meezan Bank Limited, in its meeting, held October 24, 2019 approved the condensed interim unconsolidated financial statements of the bank and its consolidated financial statements for the nine months period ended September 30, 2019, a statement said on Friday.

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  • Mari Petroleum sets up subsidiary at Dubai Free Zone

    Mari Petroleum sets up subsidiary at Dubai Free Zone

    KARACHI: Mari Petroleum Company Limited (MPCL) has announced establishment of a wholly owned subsidiary company at Dubai Free Zone for expansion of operations.

    In a notice to Pakistan Stock Exchange (PSX) on Wednesday, the company said that its board of directors had approved establishment of a wholly owned subsidiary company of MPCL in Dubai Free Zone Area and investment of one million US dollars in the proposed subsidiary company as MPCL’s equity contribution.

    The board is of the view that formation of a foreign subsidiary company is imperative for MPCL for expanding its operations across other countries in oil, gas and allied services as well as other sectors.

    Further, activities related to foreign investment and arrangement of foreign financing can be handled more proactively through a company registered abroad.

    The company further said that transfer/investment of funds out of the country would be subject to approval by the State Bank of Pakistan.

  • Bank Alfalah declares Rs9.24 billion net profit for period ended Sept 30

    Bank Alfalah declares Rs9.24 billion net profit for period ended Sept 30

    KARACHI: Bank Alfalah Limited has declared net profit of Rs9.24 billion for the period ended September 30, 2019 as compared with Rs8.63 billion in the same period of last year, depicting an increase of 7.1 percent.

    The Board of Directors of Bank Alfalah Limited in its meeting held on October 18, 2019, in Abu Dhabi, approved the Bank’s unaudited interim financial statements for the period ended September 30, 2019, said a statement on Saturday.

    The bank’s pre-tax profits grew by 16 percent from a year ago, amidst challenging operating environment.

    The bank earned post-tax profit of Rs 9.242 billion or Rs. 5.20 per share, up from a profit of Rs 8.629 billion or Rs. 4.87 per share despite super tax charge levied for 2017 through the mini budget in 2019, the statement said.

    Revenue was up by 29 percent from a year earlier. Higher spreads along with improved average deposits, rising average advances and effective balance sheet management have contributed to a strong rise in net interest income. Fee and commission income stood 12 percent higher than same period last year. Gain realized on government securities last year and bearish stock market sentiments during the first half of 2019 are the reasons behind lower capital gains and impairment charge.

    Administrative expenses increased by 21 percent against the corresponding reporting period. Main factors behind this are technology, marketing, deposit protection insurance which is a new levy, new initiatives like branch openings along with overall impact of inflationary adjustments and PKR devaluation. The cost to income ratio of the Bank has improved to 53 percent from 56 percent for the same period last year, as a testament to Bank’s focus on cost control.

    The Bank continued its focus on increasing no cost deposits with CASA mix improved to 80 percent as at Sep 30, 2019 compared to 77 percent as at Dec 31, 2018.

    Credit performance remained strong across businesses. The bank’s gross advances were reported at Rs. 490.664 billion, down by 5 percent being seasonal impact. Alongside, we continue to optimize our usage of capital and liquidity across the Bank.

    At September end, the bank remains adequately capitalized with CAR at 16.87 percent.

    Commenting on the Bank’s performance over the quarter, Nauman Ansari, CEO, Bank Alfalah said, “Although, the importance of the branch in attracting and retaining customers would remain, however, the retail banking industry is fast embracing a mobile-centric customer experience. Bank Alfalah’s investment in both, branches and digital technologies, has increased meaningfully due to consumers’ constantly evolving demands.”

  • SECP softens regulatory regime for rating companies

    SECP softens regulatory regime for rating companies

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has softened regulatory regime for credit rating companies through amendments in the Credit Rating Companies Regulations, 2016.

    A statement issued on Friday, the SEPC said that Credit Rating Agencies (CRAs) play vital role in development of financial markets and conduct independent, professional and impartial assessment of the credit risk associated with a particular instrument or a corporate entity.

    The Securities Exchange Commission of Pakistan, to provide more conducive regulatory environment to Credit Rating Companies (CRCs) has introduced amendments in the Credit Rating Companies Regulations, 2016.

    The amendments have been designed while considering the dynamics of local industry and international best practices. The changes in regulatory framework aim at providing ease of doing business and promoting rating business without compromising quality of ratings.

    To provide the ease of doing business and reduce cost of business, the SECP has abolished the requirements for disengagement period of two years for private ratings, submission of annual accounts of associated concerns and obtaining documents relating to default status of associated concern.

    In addition, the requirements for submission of industry specific studies, additional copies of application, submission of updated resume, and dissemination of the financial statements of CRCs on their website also removed. In order to reduce cost of doing business, the SECP has waived fee to be paid at the time of permission and renewal of license. Further, the fee at the time of grant of licnese has been reduced from Rs1,000,000 to Rs100,000 only.

    To encourage new professional entrants with extensive research experience, individuals have been allowed to hold 40% of shareholding of Credit Rating Company.

    To ensure that CRCs focus on their core function, CRCs have been allowed to outsource their internal audit and compliance functions to independent chartered accountants firms.

    The regulations would result in reducing regulatory burden on CRCs with special emphasis upon building structural strength leading to enhancing the credibility of processes and procedure associated with the credit rating.

  • PTCL declares 14.33 percent growth in after tax profit

    PTCL declares 14.33 percent growth in after tax profit

    KARACHI: Pakistan Telecommunication Limited (PTCL) on Wednesday declared 14.33 percent growth in profit after tax for the nine-month period ended September 30, 2019.

    The company announced profit after tax of Rs5.46 billion during January – September 2019 as compared with Rs4.78 billion in the same period of the last year.

    The company announced Rs1.07 as earnings per share (EPS) for the period under review as compared with Rs0.94 EPS of the same period in last year.

    The total revenue of the company was flat at Rs43.774 billion in January – September 2019 as compared with Rs53.55 billion in the corresponding period of the last year.

    PTCL posted gross profit of Rs13.179 billion during nine-month period ended September 30, 2019 as compared with Rs13.721 billion in the same period of the last year.

    The administrative, general and selling/marketing expenses of the company were at Rs8.73 billion during January – September 2019 as compared with Rs8.478 billion in the same period of the last year.

    Other income of the company increased to Rs3.82 billion as compared with Rs2.18 billion.

    The profit before tax for the period was at Rs8.03 billion as compared with Rs6.927 billion in the same period of the last year.

  • UBL posts 48 percent increase in after tax profit

    UBL posts 48 percent increase in after tax profit

    KARACHI: United Bank Limited (UBL) has announced 48 percent increase in after tax profit to Rs14.4 billion in nine-month period ended September 30, 2019.

    The net profit of the bank was Rs9.73 billion for the period January – September 2018, according to announcement on Wednesday.

    UBL also announced Rs11.77 earning per shares (EPS) for the period as compared with Rs7.95 EPS in the same period of the last year.

    Net mark-up / interest income of the bank registered increase to Rs45.34 billion during first three quarters of financial year 2019 as compared with Rs41.88 billion in the corresponding quarters of the last year.

    Total mark-up/interest expenses of the bank increased to Rs29.24 billion as against previous year’s Rs28.155 billion.

    UBL allowed provisioning and write-offs to the tune of Rs6.82 billion during the period under review as compared with Rs7.44 billion in the same period of the last year.

    Profit before taxation of the bank was Rs26.3 billion during January – September 2019 as against Rs16.49 billion.

    The bank discharged tax liability to the tune of Rs11.9 billion for nine-month period ended September 2019 as compared with Rs6.76 billion paid in the corresponding period of the last year.