1st quarter report 2010

8/8/2019 1st Quarter Report 2010

http://slidepdf.com/reader/full/1st-quarter-report-2010 1/26

PAKISTAN TELECOMMUNICATION COMPANY LTD.

st1 Quarter Report

CONTENTS

Board of Directors 2

3

4-5

8-9

10

11

12

13-15

18-19

20

21

22

23-25

Condensed Interim Financial Statements

Condensed Consolidated Interim Financial Statements




Naguibullah MalikChairman PTCL Board

Secretary (IT & Telecom Division)

Ministry of Information Technology

Government of Pakistan

Islamabad.

Abdulrahim A. Al Nooryani

Chairman & Chief Executive Officer

Etisalat International Pakistan L.L.C

Executive Vice President (Contracts & Administration)

Etisalat, UAE.

Mushtaq Ahmad BhattiMember (Telecom)

Ministry of Information Technology


Islamabad.

Khurshed Ahmed JunejoAmbassador

Embassy of Pakistan

Abu Dhabi, UAE.

Salman SiddiqueSecretary (Finance)

Ministry of Finance


Islamabad.

Abdulaziz A. Al Sawaleh

Chief Human Resources OfficerEtisalat, UAE.

Fadhil Al AnsariExecutive Vice President (Engineering)

Etisalat, UAE.

Abdulaziz H. TaryamGeneral Manager (Northern Emirates)

Etisalat, UAE.

Dr. Ahmed Al JarwanGeneral Manager/eRE

Etisalat, UAE.

Farah QamarCompany Secretary

Board of Directors

st1 Quarter Report

2



Walid IrshaidPresident & Chief Executive Officer

Muhammad Nehmatullah Toor S.E.V.P (Finance) / CFO

Syed Mazhar HussainS.E.V.P (HR / Admin & Procurement)

Sikandar NaqiS.E.V.P (Corporate Development)

Naveed SaeedS.E.V.P (Commercial)

Muhammad NasrullahChief Technical Officer (C.T.O)

Tariq SalmanS.E.V.P (Business Zone North)

Abdulla Yousef S.E.V.P (Business Zone South)

Hamid FarooqS.E.V.P (Special Projects)

Javed MushtaqChief Information Officer (C.I.O)

Management

Farah Qamar

Bankers Allied Bank Limited

Askari Bank Limited

Bank Alfalah Limited

Bank Al Habib Limited

The Bank of Punjab

Citibank, N.A.

Dubai Islamic Bank

Faysal Bank LimitedHabib Metropolitan Bank Limited

MCB Bank Limited

Meezan Bank Limited

National Bank of Pakistan

NIB Bank Limited

Royal Bank of Scotland

Silkbank Limited

SME Bank Limited

Standard Chartered Bank (Pakistan) Limited

United Bank Limited

Share Registrar

M/s FAMCO Associates (Pvt.) Limited

Ground Floor,

State Life Building No. 1-A,

I.I. Chundrigar Road, Karachi - 74000

Pakistan

Tel: +92-21-32422344, 32467406 &

32420755

Fax: +92-21-32428310

Corporate Information


st1 Quarter Report

3

Company Secretary

Zahida Awan

Ghulam Mustafa

Legal Affairs

Auditors

A.F. Ferguson & Co.Chartered Accountants

Ernst & Young Ford Rhodes Sidat Hyder

Chartered Accountants

Registered Office

PTCL Headquarters, Sector G-8/4,

Islamabad-44000, Pakistan.

Tel: +92-51-2263732 & 34

Fax: +92-51-2263733

E-mail: [email protected]

Web: www.ptcl.com.pk




st1 Quarter Report

5

infrastructure capabilities. A new Data Centre has been established inLahore which is similar to the one earlier set up in Karachi. Commensuratewith the launch of Rev-B technology for EVO wireless broadband, wherebythe internet speed has been tripled to 9.3 Mbps, the respective network in allthe major cities was upgraded. Further expansion in existing capacity of DSL Broadband was carried out. Country-wide availability of bandwidth tosupport the segment of Broadband (DSL and EVO) and Corporate Serviceswas enhanced by augmenting the Metro Ethernet Network. Major work onphase II of Optical fibre (OFC) network was completed besides increasingthe OFC resilience in smaller cities. The Access Network in Greenfieldareas was expanded to provide for increased PSTN and Broadband

connectivity. To curb the menace of grey traffic, the project of Revenue Assurance and Fraud Management based on latest available technologicalsolution is underway. Besides, work on various USF projects to providetelecommunication facilities in rural and under developed areas is beingcompleted in line with the contractual obligations.

The management and employees of PTCL are committed to provide qualityservices at competitive prices through optimal use of resources forachieving enhanced revenue and improved shareholders' value.

On behalf of the Board,

Naguibullah Malik Walid Irshaid

Chairman PTCL Board President & CEO PTCL

Islamabad: October 27, 2010



feel the difference



Condensed

Interim Financial

Statements




st1 Quarter Report

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITIONAS AT SEPTEMBER 30, 2010 (UN-AUDITED)

The annexed notes from 1 to 13 form an integral part of these condensed interim financial statements.

8

September 30,

2010

Rs ‘000

(Un-audited)

June30,

2010

Rs ‘000

(Audited)Note

5



June30,

2010

Rs ‘000

(Audited)


st1 Quarter Report

9

September 30,

2010

Rs ‘000

(Un-audited)

Fixed assets




st1 Quarter Report

10

September 30,

2010

Rs ‘000

September 30,

2009

Rs ‘000

13

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME




st1 Quarter Report

11

September 30,

2010

Rs ‘000

September 30,

2009

Rs ‘000

13

Note

10

11

CONDENSED INTERIM STATEMENT OF CASH FLOWS




st1 Quarter Report

12

C O N D E

N S E D

I N T E R I M S

T A T E M E N T O F C H

A N G E S I N

E Q U I T

Y

F O R T H E Q U A R T E R

E N D

E D

S E P T E M B E R

3 0 , 2 0 1 0 ( U N - A U D I T E D )




st1 Quarter Report

13

1. The Company and its operations

Pakistan Telecommunication Company Limited ("the Company") wasincorporated in Pakistan on December 31, 1995 and commenced business onJanuary 01, 1996. The Company is listed on Karachi, Lahore and Islamabadstock exchanges. The Company was established to undertake thetelecommunication business formerly carried on by PakistanTelecommunication Corporation (PTC). The business was transferred to theCompany on January 01, 1996 under the Pakistan Telecommunication (Re-organization) Act, 1996 at which date the Company took over all the properties,

rights, assets, obligations and liabilities of PTC except those transferred toNational Telecommunication Corporation (NTC), Frequency Allocation Board(FAB), Pakistan Telecommunication Authority (PTA) and PakistanTelecommunication Employees' Trust (PTET). The registered office of theCompany is situated at PTCL Headquarters, G-8/4, Islamabad.

The Company provides telecommunication services in Pakistan. It owns andoperates telecommunication facilities and provides domestic and internationaltelephone services and other communication facilities throughout Pakistan.The Company has also been licensed to provide such services to territories of

Azad Jammu & Kashmir and Gilgit-Baltistan.

2. Basis of preparation

These condensed interim financial statements are unaudited and are beingsubmitted to the members in accordance with the requirements of Section 245of the Companies Ordinance, 1984 and International Accounting Standard(IAS) 34 'Interim Financial Reporting'. These condensed interim financialstatements do not include all the information and disclosures required in the

annual financial statements and should be read in conjunction with the annualaudited financial statements of the Company for the year ended June 30, 2010.

3. Significant accounting policies

The accounting policies adopted in the preparation of these condensed interimfinancial statements are the same as those applied in the preparation of annualaudited financial statements of the Company for the year ended June 30, 2010.

4. Accounting judgement and estimates

The preparation of financial statements in conformity with approved accountingstandards requires the use of certain critical accounting estimates. It alsorequires management to exercise its judgment in the process of applying theCompany's accounting policies. Estimates and judgements are continuallyevaluated and are based on historic experience including expectation of futureevents that are believed to be reasonable under the prevailing circumstances.

Estimates and judgements made by the management in preparation of thesecondensed interim financial statements are the same as those used in the

preparation of annual audited financial statements of the Company for the yearended June 30, 2010.

5. Contingencies and commitments

5.1 Contingencies

There has been no material change in contingencies since the last annualaudited financial statements of the Company.

5.2 Commitments

Commitments in respect of contracts for capital expenditure amount to Rs.15,280,902 thousand (June 30, 2010: Rs. 14,127,643 thousand).

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTSFOR THE QUARTER ENDED SEPTEMBER 30, 2010 (UN-AUDITED)



June 30,

2010

Rs ‘000

(Audited)

September 30,

2010

Rs ‘000

(Un-audited)


st1 Quarter Report

14

8. Long term loans

This includes unsecured loans of Rs. 11,000,000 thousand (June 30, 2010:Rs. 7,000,000 thousand) to Pak Telecom Mobile Limited, a wholly ownedsubsidiary of the Company, under subordinated debt agreements. Theseloans are recoverable in eight equal quarterly instalments commencing after agrace period of 3 to 4 years by 2015 and carry mark-up at the rate of threemonths KIBOR plus 82 to 180 basis points.

Property, plant and equipment6.

Operating assets7.

Transactions with related parties9.

September 30,

2010

Rs ‘000

(Un-audited)

September 30,

2009

Rs ‘000

(Un-audited)

September 30,

2010

Rs ‘000

(Un-audited)

June 30,

2010

Rs ‘000

(Audited)

7

7.1

9.1




st1 Quarter Report

15

12. Date of authorisation for issue of financial statements

These condensed interim financial statements were authorised for issue onOctober 27, 2010 by the Board of Directors of the Company.

13. General

Figures presented in these condensed interim financial statements have beenrounded off to the nearest thousand rupees.

Effect on cash flows due to working capital changes:

Cash generated from operations10.

Cash and cash equivalents11.

September 30,

2010

Rs ‘000

(Un-audited)

September 30,

2009

Rs ‘000

(Un-audited)

9.1 This represents PTCL's share of fee payable to Emirates TelecommunicationCorporation (Etisalat) under an agreement for technical services effectiveOctober 01, 2006 at the rate of 3.5% of PTCL group's consolidated annual

revenue.



T h e m o s t r o b u s t & c a p a b l e n e t w o r k

B i g g e s t N e t w o r k

– 1 0 0 0 c i t i e s

M o s t f l e x i b l e b a n d w i d t h p a c k a g e s

E c o n o m i c a l s t u d e n t p a c k a g e s f o r o n l i n e e d u c a t i o n

T h e l a r g e s t s a t i s

f i e d c u s t o m e r b a s e

1

.

2

.

3

.

4

.

5

.

O n l y s e r v i c e p r o v i d e

r t o i n t r o d u c e i n t e r a c t i v e I P T V

Q u a d p l a y p a c k a g e s o f f e r i n g I P T V , B r o a d b a n d , P S T N

& o n l i n e s e c u r i t y s u r v e i l l a n c e

O n l i n e “ B U Z Z ” g a m i n g a n d i n f o t a i n m e n t p o r t a l

“ E a s y L e a r n i n g ” - e d u c a t i o n p o r t a l w i t h i n t e r n a t i o n a l l y r e c o g n i z e d d i p l o m a

6

.

7

.

8

.

9

.

1 0 .

1 0 M b p s w i t h t r u e

d o w n l o a d & u p l o a d s p e e d s l i k e n o o n e e l s e

F o r s u b s c r i p t i o n o

r a c t i v a t i o n c

a l l 0 8 0 0

8

0 8 0 0

P a k i s t a n T e l e c o m m u n i c a t i o n C o m p a n y L t d .

w w w . p

t c l . c o m . p k

f e e l t h e

d i f f e r e n c e



Financial Statements Consolidated Interim

Condensed



PAKISTAN TELECOMMUNICATION GROUP

st1 Quarter Report

18

CONDENSED CONSOLIDATED INTERIM

AS AT SEPTEMBER 30, 2010 (UN-AUDITED)

STATEMENT OF FINANCIAL POSITION

September 30,

2010

Rs ‘000

(Un-audited)

June 30,

2010

Rs ‘000

(Audited)

5

The annexed notes from 1 to 10 form an integral part of these condensed consolidated interim financial statements.




st1 Quarter Report

19

September 30,

2010

Rs ‘000

(Un-audited)

June 30,

2010

Rs ‘000

(Audited)

Fixed assets

Note




st1 Quarter Report

20

CONDENSED CONSOLIDATED INTERIM

FOR THE QUARTER ENDED SEPTEMBER 30, 2010 (UN-AUDITED)

STATEMENT OF COMPREHENSIVE INCOME

September 30,

2010

Rs ‘000

September 30,

2009

Rs ‘000




st1 Quarter Report

21


September 30,

2010

Rs ‘000

September 30,

2009

Rs ‘000Note

6

7


CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

FOR THE QUARTER ENDED SEPTEMBER 30, 2010 (UN-AUDITED)




st1 Quarter Report

22

C O N D E N S E D

C O N S O L I D

A T E D

I N T E R I M S T

A T E M E N T O F C H A N G E S I N

E Q U I T Y

T h e a n n e x

e d n o t e s f r o m 1

t o 1 0 f o r m a

n i n t e g r a l p a r t o f t h e s e c o n d e

n s e d c o n s o l i d a t e d i n t e r i m f i n

a n c i a l s t a t e m e n t s .



st1 Quarter Report

23

1. Constitution and ownership

The consolidated financial statements of the Pakistan TelecommunicationGroup ("the Group") comprise of the financial statements of:

Pakistan Telecommunication Company Limited (PTCL)

PTCL owns and operates telecommunication facilities and provides domesticand international telephone services and other communication facilities

throughout Pakistan. PTCL has also been licensed to provide such services toterritories of Azad Jammu & Kashmir and Gilgit-Baltistan.

Pak Telecom Mobile Limited (PTML)

PTML provides cellular mobile telephony services throughout Pakistan underthe brand name of Ufone.

Maskatiya Communications (Private) Limited (MAXCOM)

MAXCOM provides broadband services in the cities of Karachi & Hyderabad.

2. Basis of preparation

These condensed interim financial statements are unaudited and are beingsubmitted to the members in accordance with the requirements of Section 245of the Companies Ordinance, 1984 and International Accounting Standard(IAS) 34 'Interim Financial Reporting'. These condensed interim financialstatements do not include all the information and disclosures required in the

annual financial statements and should be read in conjunction with the annualaudited financial statements of the Group for the year ended June 30, 2010.

3. Significant accounting policies

The accounting policies adopted in the preparation of these condensed interimfinancial statements are the same as those applied in the preparation of annualaudited financial statements of the Group for the year ended June 30, 2010.

4. Accounting judgement and estimates

The preparation of financial statements in conformity with approved accountingstandards requires the use of certain critical accounting estimates. It alsorequires management to exercise its judgment in the process of applying theGroup's accounting policies. Estimates and judgements are continuallyevaluated and are based on historic experience including expectation of futureevents that are believed to be reasonable under the circumstances.

Estimates and judgements made by the management in preparation of thesecondensed interim financial statements are the same as those used in the

preparation of annual audited financial statements of the Group for the yearended June 30, 2010.

5. Contingencies and commitments

5.1 Contingencies

There has been no material change in contingencies since last audited financialstatements of the Group.

5.2 Commitments

Commitments in respect of contracts for capital expenditure amount toRs.26,584,279 thousand (June 2010: Rs. 18,967,439 thousand).

NOTES TO AND FORMING PART OF THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTSFOR THE QUARTER ENDED SEPTEMBER 30, 2010 (UN-AUDITED)





st1 Quarter Report

24

Effect on cash flows due to working capital changes:

8. Segment Information

For Management purposes, the group is organized into business units basedon their services and has two reportable operating segments. Transfer prices

between operating segments are on an arm's length basis in a manner similar totransactions with third parties.

8.1 Revenue information regarding the Group's operating segments for the quarterended September 30, 2010 and 2009 is tabulated below:

8.1.1 Inter segment revenues are eliminated on consolidation.

Rs ‘000 Rs ‘000 Rs ‘000

non-cash charges & other items:

September 30,

2010

Rs ‘000

September 30,

2009

Rs ‘000




9. Date of authorisation for issue of financial statements

These condensed interim financial statements were authorised for issue onOctober 27, 2010 by the Board of Directors of the Group.

10. General

Figures presented in these condensed interim financial statements have beenrounded off to the nearest thousand rupees.

Rs ‘000 Rs ‘000 Rs ‘000

st1 Quarter Report

25

8.2 Assets & liabilities of the Group's operating segments as at September 30,2010 and June 30, 2010 are tabulated below.



Notes

1st quarter report 2010

Documents