profiitepaper pakistantoday 27th april, 2013
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BUSINESS
BSaturday, 27 April, 2013
KARACHI
iSMAil DilAWAR
DISENChANTED mi-nority shareholders ofthe loss-making NIBBank, which has beenposting losses for threeconsecutive years with-
out declaring a single rupee as dividend forthe equity stakeholders, have had enough itappears.
NIB Bank is owned by the Singaporeaninvestment giant Temasek holdings thatpossesses the bank’s controlling stakes(over 70 percent) since June 2005.
“For all clinical reasons NIB Bank canbe termed ‘a dead horse’,” claimed a letterwritten and sent by a 37-member group ofminority shareholders to the central bankon April 10. An NIB Bank spokesman,however, said the bank, after posting lossesfor years, had hit a “break-even” during thejust-concluded first quarter of 2013 thatsaw the bank posting a profit before tax(PBT) of Rs 145 million.
Not sure about the bank management’sability to transfer profits to shareholders,the spokesman said the current “turn-around” in the bank’s performance wouldcertainly relax the latter.
In the letter, the minority shareholdershave called upon Temasek Group to orderan internal enquiry, the central bank and theSecurities and Exchange Commission ofPakistan (SECP) to appoint forensic audi-tors and the federal finance ministry to in-tervene to save the bank’s minorityshareholders, “who are Pakistanis”.
The stakeholders, who claim to holdthe bank’s shares, worth Rs 2 billion atleast, are concerned over what they claimedwas a possible decrease by its management
in the banks’ capital.“Some of the banks face a daunting
outlook and amongst them is NIB Bank,”read the letter addressed to the State Bankof Pakistan (SBP) governor.
Alleging the bank for having “somehidden and apparent weaknesses,” theshareholders told the SBP governor that thebank had incurred accumulated losses of Rs56.156 billion during three consecutiveyears from 2010 to 2012.
Of the total, they said, Rs 44 billionwere lost in 2012, Rs 2.044 billion in 2011and a whopping Rs 10.112 billion in 2010.
2012’s losses, Rs 44 billion, constitutedabout 42 percent of the bank’s paid up cap-ital which, according to Karachi Stocks Ex-change data, amounted to Rs 103.028billion up to April 22, 2013.
Only the last quarter of 2012, the share-holders said, saw the bank losing over Rs1.31 billion, 34 percent of the first threequarters.
Questioning the ability of the bankmanagement to wipe out these accumulatedlosses, the stakeholders termed the bank’s“huge” administrative expense as thebiggest contributing factor for these losses.
They, in the letter, told the central bankthat during 2012, NIB Bank’s administra-tive expenses were estimated at Rs 5.173billion compared to 2011’s Rs 4.72 billion.
“The bank’s expenditures are extrava-gant to the extent that it has booked sevenfloors at the PNSC Building and is spend-ing millions to renovate the same,” a share-holder said while talking to Pakistan Today,requesting anonymity.
The bank was shifting its main office tothe building, he said, adding the manage-ment had replaced the old and seasonedstaff with those drawing large salaries with-out any productive results.
“The bank has not paid any dividendsince the Temasek took over six yearsback,” the shareholders claimed.
Recalling its pre-Temasek record, theysaid, the bank used to pay dividend, bonusand huge returns to shareholders everyyear. The NIB’s share value was around Rs80 when it was PICIC Commercial Bank.
Despite its claim to be a commercialbank with the largest paid up capital, thebank’s current share price at the KSE
ranges between Rs 1.50 and Rs 2.80.According to KSE quotations, on April
22 the bank’s share was priced at Rs 2.17,with its trading turnover standing at 287.7million. “Probability of any recovery canbe termed ‘hoping against hope’,” reads theshareholders’ letter to SBP.
Even the injection of millions of dollarsby its majority stakeholder, Temasek hold-ings, could not help the bank improve, theyadded. They went on to accuse the bank ofdepriving them of their “right to speak” bysetting up the bank’s head office in Islam-abad. “The minority shareholders cannotafford to travel to Islamabad to raise theirvoice,” they said.
They also expressed concern over thebank’s plan to reduce its capital to Rs 2.50per share. “Temasek, an internationalgroup, can afford this luxury but the minor-ity shareholders cannot,” they warned anddemanded of the Singaporean firm to com-pensate them in buying their shares beforeproceeding with its reduction of capitalplan. The shareholders wondered as to whyregulators, SBP and SECP, quietly wit-nessed the “downfall” of NIB Bank and theequity of its shareholders.
Talking to Pakistan Today, a share-holder said the State Bank had not yet re-sponded to the shareholders’ letter. he saidif the regulator failed to address their con-cern, they would do all they can to maketheir voice heard.
When contacted a spokesman of NIBBank, Ali habib, conceded to have receivedthe shareholders’ letter saying it was truethat the bank was running in losses sincethe last five years. “It is public knowledgebecause the bank is a listed company,” hesaid. But, Ali said, the bank’s performanceduring first quarter of 2013, January-March, had seen a turnaround with the bank
posting a profit before tax of Rs 549 millioncompared to a loss before tax of Rs 98 mil-lion during the corresponding period of2012. Terming the bank’s results as “one ofthe best” in market, the spokesman said thebank, under its new management, that hadtaken over the bank in January 2012, hadstarted showing results.
Ali conceded that the bank’s ability tobenefit equity shareholders remained lim-ited in recent years but that the current pos-itive trend in the bank’s revenues wouldultimately relax stakeholders.
he, however, was uncertain whether ornot his management would now declare themost-awaited dividends for its shareholderson the stocks market. “We are getting es-tablished so the shareholders, I am sure,would be relaxed,” said the spokesman.
Responding to a question about thebank’s alleged extravagant expenditures,Ali said, the situation in fact was other wayround. In 2012, he recalled, the bank’s rev-enues increased by 25 percent compared toits 10 expenditure. In 2013, he said the firstquarter had seen revenues growing by 21percent against the bank’s 2 percent ex-penses. Asked if booking seven floors ofPNSC was an economical move by thebank, the spokesman replied in the affirma-tive. “We have moved to a cheaper prem-ises from one of Pakistan’s most expensiveplaces at I I Chundrigar Road,” he added.
he assured the protesting shareholdersthat the bank’s new management, led byPresident Badar Kazmi, who has servedStandard Chartered Bank for seven years asits CEO, would turn the bank’s businessaround. Running a countrywide network of179 branches, NIB Bank claims to be oneof the fastest growing banks in Pakistanhaving started operations in October 2003with a paid up capital of Rs 1.2 billion.
For all clinical reasons, loss-makingNIB Bank is a dead horse
Pakistan has neverdefaulted in its int’lobligations, saysfinance adviser
ISLAMABAD
Online
Adviser to Prime Minister on Finance Dr
Shahid Amjad Chaudhry said Pakistan has
never defaulted on an international
obligation since 1947 and will never
default in the future. During a meeting
with Ambassador of Japan to Pakistan
Hiroshi Oe, who called on him on Friday,
he said Pakistan’s economy is strong
enough to meet its international
obligations. He said Japan is a very
special country for Pakistan and its
contribution to Pakistan’s development is
fully acknowledged. Pakistan and Japan
should remain engaged continuously to
further consolidate economic ties, the
adviser said. Dr Shahid praised Japan for
extending funds for projects like Karachi
Circular Railways, Thar coal Project and
Lahore water project, declaring them as
pearls of Pakistan-Japan friendship. He
emphasised that exchange of academia
between Pakistan and Japan should also
be promoted to further strengthen
relations between the two countries.
Scholars in Japan working on Pakistan
should also be extended financial help by
Japan the adviser added. The ambassador
said Japan is quite optimistic over the
economic situation in Pakistan. He said
despite financial constraints in Japan, the
government of Japan will continue to
assist and invest in Pakistan, adding that
contribution in infrastructure development
in Pakistan is major priority of Japan. To
overcome the energy crisis in Pakistan,
Japan will assist Pakistan in short,
medium and long term projects, he said.
Japan is taking a keen interest in
overcoming the energy crisis in Pakistan,
the ambassador added. He said Japan
wants to eradicate polio from Pakistan
and is already involved in the polio
eradication campaign.
ICCI a finalist inWorld ChambersCompetition 2013
ISLAMABAD: Islamabad Chamber of
Commerce and Industry (ICCI) reached
the finals of the World Chambers Compe-
tition 2013 by presenting its Best Youth
Entrepreneurship Project to an interna-
tional judging panel during a dedicated
Congress session. The 2013 World
Chambers Competition, which was held
at Doha, Qatar, received entries from 65
chambers of commerce and industry
from 42 countries and ICCI was among
the 25 finalists, who presented their in-
novative projects at the forum. This
World Chambers Congress plays a crucial
role in gearing up chambers of com-
merce to satisfy and go beyond the
needs of businesses and increases global
unity between chambers and opens up
new channels of dialogues. inP
ISLAMABAD
Online
Securities and Exchange Commission ofPakistan (SECP) on Friday initiated 122show-cause proceedings againsthigher-ups of various companies forfailing to comply with applicable pro-visions of laws. As part of its man-date to monitor listed and unlistedcompanies to safeguard investor in-terest, the enforcement department ofthe SECP started proceedings againstchief executives, directors, and auditorsof listed and unlisted companies.
Enforcement actions for breaches ofstatutory requirements related to: issuanceof auditors’ reports, takeover regulations, hold-ing of annual general meetings, inter-corporatefinancing, issuance of capital, misstatement offacts, employees’ provident funds, consolidationof financial statements, circulation of financial statements,disclosure of directors’ interests, and cost audit rules.
Penal proceedings against directors of listed companyconcluded on account of material misstatements whereby thedirectors siphoned off tax refunds disguising them as pro-ceeds from the false sale of its subsidiary.
In addition to the proceedings noted above, the depart-ment has concluded 79 proceedings against directors and au-ditors of companies either by penalising or by warning the
identified defaulters. In addition, the departmenthas also initiated inspections on affairs of four
companies while an investigation has beeninitiated into the matters of a private lim-ited company.
The department, addressinggrievances of investors, successfullyresolved nineteen complaints. Thesecomplaints were mainly pertainingto non-issuance of shares, non-veri-fication of transfer deeds, and non-
payment of dividends. Four companies have been di-
rected to hold their overdue annualgeneral meetings within a specifiedtime. To facilitate companies in prepa-
ration of their consolidated financial state-ments, six companies have been grantedexemption from requirements of consolidationof their annual financial statements. One com-pany has been accorded approval to appoint its
cost auditors under the Companies (Audit of Cost Accounts)Rules, 1998. In addition, three companies have been allowedto place their quarterly accounts on their respective websites,while one company has been allowed to change its websitesaddress. One company has been allowed to extend a loan fa-cility to its chief executive. Extension in time has beengranted to a company for making public announcement of“offer to shareholders for sale of their shares,” in relation toits intended acquisition of another company.
SECP takes punitive measures against companies’ executives
ISLAMABAD
APP
The World Intellectual Property Day (IP)2013 was observed on Friday across theglobe including Pakistan with its theme‘Creativity: The Next Generation’.
The event was established by WorldIntellectual Property Organisation(WIPO) in 2000 to “raise awareness ofhow patents, copyright, trademarks anddesigns impact daily life” and “to cele-brate creativity, and the contribution madeby creators and innovators to the develop-ment of societies across the globe”.
The aims of this special day also in-clude increasing understanding of how pro-tecting intellectual property (IP) rights helpspromote creativity and innovation, celebrat-ing creativity and the contribution made bycreators and innovators to the developmentof societies around the globe and to encour-age respect for IP rights of others.
WIPO works together with various
government agencies, non-governmentorganisations, community groups and in-dividuals and holds different events andactivities to promote World IntellectualProperty Day each year.
United Kingdom (UK) Minister forIntellectual Property Lord Younger said inhis message on the occasion: “I’m de-lighted to celebrate World Intellectual
Property Day today. World IntellectualProperty Day is a good time to reflect onwhat we have achieved and also look for-ward at the challenges ahead.”
Working closely with stakeholder or-ganisations, the IP enforcement team is re-sponsible to coordinate a national policyfor the enforcement of Intellectual Prop-erty rights and provide the secretariat forthe IP Crime Group.
This year, an IP enforcement teammember and long standing IntellectualProperty Office staff member Miles Reesput great emphasis on the importance ofthe enforcement work that is carried out.
WORLD INTELLECTUALPROPERTY DAY 2013 OBSERVED
Despite its claim to bea commercial bank
with the largest paidup capital, the bank’scurrent share price at
the KSE rangesbetween Rs 1.50 and
Rs 2.80...Probability of anyrecovery can betermed ‘hoping against hope’
PRO 27-04-2013_Layout 1 4/27/2013 12:13 AM Page 1
BUSINESSSaturday, 27 April, 2013
LAHORE: State Life Chairman Shahid Aziz
Siddiqui presents a trophy to Muzafar Ahmed,
deputy general manager Corporate
Communication, on his best performance for
corporate advertising and multi-media
coverage of the corporation’s promotional
activities. PR
ISLAMABAD: Shafqat Sultana, president of the
First Women’s Bank, presides over a meeting
of the Board of Directors. PR
UMT hosts seminar on
using solar panel in homesLAHORE: Khan M Nazir, Assistant Professor at
University of Management and Technology (UMT),
Lahore, conducted a seminar on “Solar Panel for
Our Home”. The aim of the seminar was to
highlight various solar system options available for
domestic use. The seminar was widely attended in
view of the prevailing energy crisis and severe load
shedding that has made life so difficult for most
people. Mr. Khan highlighted and emphasized on
the need and importance of solar system. He
explained various types of solar panels and their
suitability, importance of charge controllers and
their types, battery types and their suitability, and
inverter types. He said that solar energy is
environmental friendly and suits our climate as
well. In his concluding remarks Khan M Nazir
suggested the most economical solutions to
address the problem of electricity shortage. PR
Samsung unveils new WB
250 SMART CAMERAsKARACHI: Samsung
Electronics Co., Ltd, a
global leader in digital
media and digital
convergence
technologies,
today announced
the launch of
upgraded SMART CAMERA and the first
devices to run on the new technology: the WB250F.
As new additions to the WB series of long-zoom
models, DV series of Dual View cameras, the new
devices combine high optical performance and
classic style with the enhanced connectivity of
SMART Camera. Samsung has evolved its innovative
Wi-Fi technology to enhance its acclaimed SMART
CAMERA, originally announced at CES 2012, by
creating SMART CAMERA 2.0. New functionalities
and upgrades allow users to shoot and share their
cherished photography instantly, revolutionizing the
connective camera experience and allowing
consumers to be in complete control across the
breadth of the SMART CAMERA portfolio. PR
The search for youngrock stars beginsLAHORE: Fanta, the most fun-filled Orange
Sparkling brand, has launched a talent hunt in
schools across Pakistan to find young gifted singers
for recording a Fanta song and music video. The
initiative, appropriately named ‘Fanta Rocks’ will be
spearheaded by renowned Rock Band Noori, and
will extend to nearly 250 schools, reaching out to
an estimated 250,000 school children between the
ages of 12 and 18. PR
CORPORATE CORNER
02
B
Major Gainers
COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVERRafhan Maize 4000.00 4200.00 4200.00 4200.00 200.00 1,300Bata (Pak) XD 1984.50 2083.72 2080.00 2083.72 99.22 7,650Unilever Food XD 5000.00 5090.00 5090.00 5090.00 90.00 20Wyeth Pak Ltd XD 1413.30 1483.96 1450.00 1483.96 70.66 2,150Shezan Inter. 435.00 456.75 440.00 456.75 21.75 162,200
Major LosersSanofi-Aventis XD 458.99 441.01 440.00 440.67 -18.32 300MithchellsFruit 369.00 360.00 360.00 360.00 -9.00 200Mehmood Tex 98.00 93.50 93.10 93.23 -4.77 400Searle Company 82.16 84.90 78.06 78.06 -4.10 273,500Thal Limited 135.81 135.25 131.10 133.30 -2.51 58,500
Volume Leaders
TRG Pakistan Ltd. 10.30 11.30 10.75 11.30 1.00 27,542,000Lotte Chemical 7.35 7.60 7.11 7.54 0.19 16,432,000Maple Leaf Cement 19.36 19.65 18.81 18.95 -0.41 11,817,000Pervez Ahmed 2.57 3.43 2.61 3.29 0.72 11,502,500NIB Bank Limited 2.29 2.46 2.29 2.41 0.12 11,419,000
Interbank RatesUSD PKR 98.4244GBP PKR 152.0361JPY PKR 0.9979EURO PKR 128.2076
ForexBUY SELL
US Dollar 99.70 99.95 Euro 128.80 129.04 Great Britain Pound 152.79 153.06 Japanese Yen 1.0043 1.0147 Canadian Dollar 96.59 98.29 Hong Kong Dollar 12.58 12.82 UAE Dirham 26.95 27.20 Saudi Riyal 26.45 26.70
CoLoMBo
Online
PAKISTANI highC o m m i s s i o n e r(hC) Maj GenQasim Qureshi, onFriday, emphasisedon exploring ways
and means to further enhance busi-ness connectivity and volume of bi-lateral trade between Sri Lanka andPakistan.
During his visit to Galle districtin southern Sri Lanka, Qureshi at-tended a meeting with officials ofthe Galle District Chamber of Com-merce & Industry. The meeting re-
viewed the prevailingbusiness environ-ment between thetwo friendlycountries.
Q u r e s h inoted that thetwo countrieshad put in placean overarchingeconomic frame-work to facilitatebusinessmen of bothcountries to set-up andstrengthen commercial andinvestment ventures.
The hallmark of this frameworkis the Free Trade Agreement (FTA),
which has been opera-tional since 2005, he
added. he furtherstated that Pak-istan and SriLanka alsohave a Bilat-eral Invest-ment Treaty(BIT) and an
MoU on Cus-toms co-operation.
Qureshi high-lighted that Pakistan of-
fered extremely attractiveopportunities to the Sri Lankantraders and consumers to benefitfrom abundant raw materials, avail-
able at competitive prices and lowfreight costs.
he explained that Pakistan pro-duces various varieties of rice, veg-etables and fruits, which ifimported from Pakistan to SriLanka, can considerably reduce theinflation on food items, at the sametime providing a wide choice ofconsumables.
Later in the day, the high Com-missioner also met SouthernProvince Governor Kumari Bala-suriya, Southern Naval CommanderRear Admiral Piyal harischandra DeDilva and Jamiat Ulema Islam (JUI)Galle District chief Mustafa Mo-hammad Awn.
Envoy urges enhanced bilateral trade between Pakistan, Sri Lanka
KARACHI: Engro Foods’ flagship brand
Olper’sunveiled new and innovative packaging
formats using holographic technology to create a 3D
simulation at a local shopping mall. The new
packaging formats include a new format for the
region that employs Ecoleantechnology for 250ml,
and Tetra Edge for 1 liter pack. Ecolean also referred
to as Olper’s Mini Jug is a specialized and convenient
jug-shaped pouch that offers ease of pouring and
handling the pack. It is an eco-friendly and
biodegradable packaging with microwaveable
capabilities. Tetra Edge, on the other hand, is a
premium-packaging format with benefits of a tilted
head and a heli cap, which controls milk spillage,
increases the usability of the pack and keeps the
milk smell-free. Both these are newest innovations in
milk packaging, not just in Pakistan but worldwide.
Olper’sis Engro Foods’ flagship dairy brand and has
emerged as the leading dairy product in the market
since its launch in 2006 after gaining preference over
other established brands and securing a loyal
consumer base all across Pakistan. Olper’s Milk is
sheer indulgence in every sip and is backed by its
high nutrition content and invigorating freshness that
have become synonymous with the Olper’s brand.
The new packaging were unveiled by Olper’s Brand
Ambassador Marina Khan. Olper’s created a high
definition, extremely intelligent holographic 3D
content iGhost to create a jaw dropping virtual world
to interact with audience and to take them on a
journey which they have never seen or experienced
before.iGhost is a technique which creates three-
dimensional images. It involves the use of a laser,
interference, diffraction, light intensity recording and
suitable illumination of the recording. Olper’sprimary
reason for introducing the new packaging is to
augment a differentiated marketing strategy based
on innovation and providing consumers with greater
choice.Olper’s aims to be a part of people’s lifestyle
choices, as aptly encapsulated in our tagline
‘MeraIntikhab’. Speaking at the occasion, Afnan
Ahsan – CEO, Engro Foods said, “Olper’s is a brand
that has believed in innovation and recognizing the
needs and choices of our target consumers. We
continue to focus our efforts on providing increased
choices to our consumers and the introduction of this
new packaging technology is a testament to this
effort that will further preserve the nutrition and
goodness of our products and provide maximum
utility to our consumers.” Olper’s new packaging
style has synced well with its revised communication
strategy and will help to break through the clutter on
the dairy shelf and enhance Olper’s visibility
amongst the target audience. PR
Olper’sunveils new packaging formats using 3D technology
KCCI urges Germanyto invest in PakistanKARACHI: Karachi Chamber of Com-merce & Industry President Muhammadharoon Agar urged the German Ambassa-dor to Pakistan Dr Cyrill Nunn to invitenew German investment in Pakistan as thecountry is the most promising land in theregion for investment and many Germancorporations are operating successfully andexpanding their businesses across Pakistanand beyond. Exchanging views with theambassador during his visit to KCCI, Agarsaid within EU, Germany has become Pak-istan’s biggest trading partner. Germanyranks as the 9th largest trading partnerahead of UK even, he stated. There aremany opportunities and there is a lot of po-tential between the two friendly countrieswhich can be further developed, he added.Pakistan’s exports to Germany in 2012were worth $ 1,151 million while importswere $ 1,174 million. nni
Chairman OGRA signals reduction in POL prices
ISLAMABAD : OGRA Chairman Saeed Ahmad Khan has signaled
reduction in petrol prices in days to come. The OGRA chief said in a
statement issued from Islamabad on Thursday that prices of crude oil are
coming down globally and it is expected that they would continue dropping
further during the next few days. Local prices of oil will be brought down
in proportion to the global reduction and efforts would be made to
render maximum relief to consumers, added the OGRA chief. Online
KARACHI
STAFF RePORT
The federal government appointed Tahir Mah-mood as acting chairman of Securities and Ex-change Commission of Pakistan (SECP), saida statement issued by the apex regulator on Fri-day.
The Finance Division issued a notificationin this regard. Mahmood, currently the com-missioner of SECP’s law division, representsthe category of commissioners who are beingappointed from within the SECP under section5 of SECP Act, 1997.
he is a regular employee of the SECP andjoined the service through Federal Public Serv-ice Commission (FPSC) as a Grade-18 officerin the former Corporate Law Authority (CLA)in 1989. he is a chartered accountant and car-ries a rich experience of over 25 years withCLA and the SECP.
he is fellow member of ICMAP and ICSPand also has a degree in law. he possesses ex-tensive experience in company law administra-tion, takeover laws, corporate restructuring,mergers, corporate finance and judicial orderwriting. he has in his credit about four hundredjudicial orders passed by him in his capacity asadjudicating officer and member of appellatebench while working as executivedirector/commissioner at SECP.
A significant number of such orders arepublished in CLD and referred by the legalcommunity in corporate cases. he is also mem-ber of Company Law Review Commissionbeaded by former chief justice of PakistanAjmal Mian.
he has worked on drafting of various lawsduring his tenure with the SECP. his expertisein corporate law, especially company law andtakeovers laws, are largely acknowledged bythe legal fraternity.
Mahmood appointed acting SECP chief
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