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BUSINESS Tuesday, 26 February, 2013
Ufone attracts potential employees at the British Council Employers’ Fair ISLAMABAD: British Council Employers’ Fair concluded with its last event held in Islamabad after conducting one-day fairs in Karachi and Lahore. Ufone being the key participant remained the most sought after employer amongst the youth and students visiting the fair at all three stations, said a press release issued on Monday. The Ufone team present at the fair provided career guidance and resume writing tips in order to enhance the skills of fresh graduates. It also shared actual vacancies available at Ufone alongside the interviewers also interviewed potential candidates. Tahir Husain, a Master Trainer at Pitstop International, present at the event appreciated Ufone for offering Graduate CV Coaching services. “The students showed great interest, appreciated the help and guidance on best practices. They left motivated having learnt new techniques, and confident of their chances of getting a job brighter than before,” commented Tahir Hussain. Syed Zulfiqar Ali Zaidi GM Human Resources Ufone said, “Events like these help identify potential employers for returning graduates while at the same time nurture our commitment to giving talent a fair chance. It is indeed a very welcome initiative by the British Council.” Ufone believes that partnering with the British Council is a key step in reversing the brain drain, and bringing back our intellect to Pakistan, he further added. He interviewed several candidates to give maximum opportunity to the fresh graduates to gain experience at one of the largest and leading cellular companies of Pakistan. Nadia Kamran, Country Head Education UK at British Council Pakistan hoped to sustain and strengthen British Council’s partnership with Ufone for similar future events in 2014 and 2015. She said that such corporate initiative will help in bridging the gap between Pakistani students studying in the UK and potential employers in Pakistan. STAFF REPORT
UBL earning per share grows by 16pc in 2012 KARACHI: The United Bank Limited (UBL) announced 2012 unconsolidated EPS of Rs14.7 compared to EPS of Rs12.7 last year, up by 16%. The bank also announced final cash dividend of Rs3.5 per share, taking the total payout to Rs8.5 per share for the year, said the analysts at Topline Research Monday. Though the net interest income (NII) declined by 2% to Rs38.5.2bn, 35% jump in non-interest income to Rs17.1bn and lower provisioning (down 43%) to Rs4.1bn mainly contributed to the earnings growth, they said. Despite rising deposit, NII remained flat due to lower spreads on account of 1) decline in interest rates and 2) increase in minimum deposit rates at 6%. On the other hand, the analysts said, better dividend income related to treasury/trading led overall growth in non–interest income. Moreover, controlled lending along with improved paying capacity of borrowers after decline in interest rates led overall provisioning to decline from Rs6.2bn to Rs3.2bn. In 4Q212, UBL posted EPS of Rs3.23, down 17%QoQ due to declining spreads. STAFF REPORT
After signing memoranda of understanding with Russia and other countries, the production of Pakistan Steel Mills would be enhanced up to 50 percent. – Anwar Ali Cheema
Pakistani businesses amongst top five at UAE-based Ajman Free Zone: Fahmi
KARACHI STAFF REPORT
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AKISTANI investors are taking keen interest in setting up businesses in Ajman Free Zone Authority (AFZA) where the number of international investors is still increasing. Over 7,200 companies are already registered at AFZA from around the world and Pakistani businesses rank amongst top five AFZA’s registered businesses. This was stated by Ali Hussain Fahmi, AFZA’s head of customer service, while briefing media here at the Karachi Press Club Monday. Flanked by Abdalla Yehia Gohar and Rafeeah Al Suweidi, respectively the head of financial planning division and manager customer service at AFZA, Fahmi said a three-member high profile delegation from the Authority would meet Pakistani investors in a seminar on Tuesday, 26th February, to further explore the growing inward investments from Pakistan. “We want to enhance business relations, promote trade and strengthen ties with Pakistan’s business community. The road show is aimed at Pakistani businessmen, entrepreneurs and investors that would like to spread their operations in-
We want to enhance business with a tax free operation are some of the core subjects to relations, promote trade and be discussed with the strengthen ties with Pakistan’s prospective investors. Abdalla Yehia Gohar business community. The road show is said with cost-effective aimed at Pakistani businessmen, set-up packages, the regulations and procedures entrepreneurs and investors that would for investment at AFZA like to spread their operations have been kept simple to facilitate the investors. internationally especially in the Middle Highlighting the incenEastern region whereby the UAE serves tives for investment at the as a springboard and a centre point zone, he said free zone offers 100pc foreign ownership with to enter the regional the facility of 100pc repatriation terof capital and profit. “There is no markets nationa l l y especially in the Middle Eastern region whereby the UAE serves as a springboard and a centre point to enter the regional markets,” he quoted Mahmood Al Hashemi, Director General of AFZA, as saying. During their visit, the AFZA officials would meet investors from various industries, trade and service sector and showcase multiple facilities and business investment opportunities available for the Pakistan business community. The convenient set-up solutions, diverse range of licensing options along
personal income tax for investors at AFZA,” he added. Rafeeah Al Suweidi told reporters that having a diverse focus, the Zone offered a range of licenses to accommodate all business types, which helps us in accommodating companies form all fields, and we can provide a platform across the board in facilitating their business. He said AFZA offered Trading Licenses (Also known as commercial license) for import and export, service licenses, industrial license and national industrial license. Investors can benefit from array of facilities ranging from Smart Office (desk space), offices, Warehouse and Land.
CFOs want new recruits to be complete finance professionals, finds new ACCA research ISLAMABAD STAFF REPORT
The majority of Chief Financial Officers (CFOs) looking to appoint new staff for their businesses say they should ideally have both a breadth and depth of finance expertise and capabilities, a new report from ACCA (the Association of Chartered Certified Accountants) reveals. ACCA asked CFOs what was important to them when it comes to appointing newly qualified accountants and what skills enable them to grow their business, particularly since the financial crisis. The resulting report, The Complete Finance Professional: Why breadth and depth of finance capability matter in today’s finance function http://www.accaglobal.com/content/dam/acc a/global/pdf-campaigns/cfo-survey.pdf outlines why broad-based finance qualifications remain valuable in economically turbulent times. Arif Masud Mirza, Head of ACCA Pakistan said: “ The environment in which finance professionals now work – one which is increasingly volatile, complex and competitive - requires them to have a broader range of finance skills and this is certainly the case in Pakistan. Finance functions have to excel in a wide range of capabilities, including supporting businesses, managing risk, developing effective strategies for growth, driving financial insight and ensuring statutory and regulatory responsibilities are met. Key findings from the 500 global finance professionals surveyed for the report show: 96% said newly qualified finance professionals should know about financial management; 94% said it was important to have a good understanding of professionalism and ethics. Management skills scored 73%. 61% said the best grounding for a newly qualified finance professional to become a future leader was a full appreciation of financial and management accounting. 89% said that understanding the links between all areas of finance enabled recruits to minimise future financial risks, with 88% saying it enabled them to deal with financial challenges. 80% said it would enable their new recruit to take their career in any direction they chose. When it comes to sustainable business growth, 76% said it ‘*really adds value to their business’ for finance professionals to have the complete finance knowledge and skills set, from both financial and strategic management accounting. Mirza said: “The fact that finance staff should have a broad range of skills and expertise is important to CFOs – should also ensure it is of equal importance to individuals looking to plan their careers and maximise their employability.” Adamjee Yakoob, FCCA and CFO of Citibank Pakistan, said: “A strong grounding in accountancy, finance and management as well as the regulatory and legal context is what gives me confidence in new hires.
Govt moves to facilitate foreign investors MINISTRY OF INTERIOR, SECP AGREE ON ONE-WINDOW SECURITY CLEARANCE OPERATION FOR FOREIGN INVESTORS KARACHI STAFF REPORT
In pursuance of its mandate to encourage and promote investment, the Securities and Exchange Commission of Pakistan (SECP) has been working on an initiative to provide a one-window operation to foreign entities for obtaining security clearance certificate for incorporation in Pakistan. In this regard, the SECP organized an important meeting on Monday with the con-
cerned officials representing the ministry of interior, corporate sector and legal fraternity. With Federal Interior Minister Abdul Rehman Malik in the chair, the meeting was attended among others by SECP Chairman Muhammad Ali and Commissioner Company Law Division Tahir Mahmood. The participants compared notes on devising a mechanism for expeditious security clearance for foreign-funded businesses. They also discussed the resolution of cases pending for processing of security clearance of foreign investors at the earliest. Prominent business leaders who attended the meeting expressed their concern to the interior minister regarding the lengthy procedure for obtaining security clearance. Currently, all foreign companies setting up businesses in Pakistan and foreign nationals interested in investing in local companies are required to obtain a security clearance (NoC) from the security agen-
cies, which is a prerequisite before registration and acceptance of statutory returns. Under the 1973 Rules of Business, the ministry of interior is primarily responsible for regulating entry and exit of foreigners; therefore, the SECP as a matter of policy forwards the cases to ministry of interior for security clearance. Besides, it is also incumbent on foreign companies to obtain a prior NOC from the Board of Investment before starting their business activities. The SECP in coordination with the interior ministry has been striving to streamline the process of obtaining security clearance and to remove unnecessary barriers in the way of foreign investment. The delay in security clearance is also exposed to public litigation and many complaints from the general public and chartered accountant firms have also been received. The SECP believes that due to rela-
tively lower domestic investment and resources, the Foreign Direct Investment (FDI) is critical to spurring country’s productivity and growth. The encouragement of foreign investment in the country and development of corporate sector and capital market in Pakistan is possible only through coordinated efforts of all stakeholders. To facilitate investors, the SECP chairman requested the interior ministry that the SECP may be allowed to proceed with incorporation of companies/registration of statutory returns having foreign investment/directors and appointment of foreign directors by making it mandatory to file all relevant documents necessary for security clearance along with an undertaking that in case of refusal of security clearance by the interior ministry, the relevant returns shall be de-registered forthwith and directorship cancelled.
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I will make efforts to put the country’s economy on the right track during my short term in office. — Finance Minister Saleem Mandviwalla Indus Motors announces financial results for first half FY 2012-13 KARACHI: The Board of Directors of Indus Motor Company Limited have announced the company’s financial and operating performance for the year ended December 31, 2012. After a record FY 2011-12, the sales and production of Indus Motor Company for the first half year of the current FY 2012-13 ended on a depressing note. The sales of Toyota brand (CKD and CBU) vehicles were down by 38% to 14,994 units compared to 24,341 units sold in the same period last year. The presence of used imported car models in the category of Corolla class also played a part in impacting the sales of the company and severely restricted IMC’s market share of locally manufactured vehicles that declined to 25% compared to 30% achieved for corresponding period last year. The sluggish market demand forced the Company to shut down the plant facility for 53 non-production days. However, the Company remained steadfast in its commitment to its employees and did not allow any worker layoff which was appreciated by the entire workforce and the government. The Company net sales revenue for first half year ended December 2012 decreased by 26% to Rs 24 billion as compared to Rs 33 billion for the same period last year, while profit after tax amounted to Rs 0.98 billion versus Rs 1.77 billion for the same period last year. PRESS RELEASE
PTCL holds Hepatitis awareness drive
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BUSINESS B Tuessday, 26 February, 2013
Major Gainers COMPANY Unilever Food UniLever Pak National Foods Sapphire Fiber XD Sunrays Textile
OPEN 4125.00 10518.18 315.00 166.26 181.00
HIGH 4255.00 10595.00 330.75 174.49 188.90
LOW 4255.00 10361.00 323.00 174.00 188.90
CLOSE 4255.00 10550.00 323.60 174.49 188.90
CHANGE 130.00 31.82 8.60 8.23 7.90
TURNOVER 20 120 20,200 500 500
1520.00 290.00 309.01 190.12 96.70
1520.00 266.39 300.00 185.00 96.70
1520.00 266.39 301.01 185.00 96.70
-80.00 -14.02 -8.00 -5.12 -5.05
50 17,900 1,300 700 1,000
8.10 55.90 24.59 19.18 8.69
7.25 52.80 23.30 18.56 7.75
7.96 54.74 23.64 18.74 8.59
0.86 1.35 -0.33 0.12 0.90
35,048,500 31,380,000 27,841,000 21,070,500 17,566,000
Major Losers Colgate Palmolive Clariant Pak MithchellsFruit XDXB Pak Services AL-Abbas Sugar XD
1600.00 280.41 309.01 190.12 101.75
Volume Leaders Telecard Limited National Bank Pak P.T.C.L.A Jah.Sidd. Co. Azgard Nine
7.10 53.39 23.97 18.62 7.69
Interbank Rates ISLAMABAD: Pakistan Telecommunications Company Limited (PTCL) organized a seminar on ‘Prevention and Awareness of Hepatitis’ at a local school in Karachi as part of the company’s Corporate Social Responsibility (CSR) initiatives. PTCL is organizing a nation-wide drive to create awareness about Hepatitis and its preventive measures. Dr. Tariq Saeed of PTCL Medical Services while giving information to students said, “Hepatitis is growing at an ever alarming rate now, with women and children at an increasing risk”. “More than 12 million Pakistanis are infected with hepatitis due to frequent use of therapeutic injections, re-use of syringes, inappropriate sterilization practices and poor hospital waste management,” Dr Tariq said. “At the commu-
nity and individual level, certain behavioral practices increase the risk of these infections substantially and it is the responsibility of every single one of us to confront this disease”, Dr. Tariq added. Syed Mazhar Hussain, PTCL Senior Executive Vice President (SEVP) HR commented, “PTCL believes in empowering the youth of the country and the current drive is a continuation of this vision. The company believes in conducting its business in a manner where it is positively contributing towards the growth and development of the society.” It is worth mentioning here that the PTCL is one of few companies in Pakistan which has dedicated medical centers catering to the health needs of its employees and their families nationwide. PRESS RELEASE
USD GBP JPY EURO
PKR 98.1863 PKR 148.6344 PKR 1.0458 PKR 129.9496
Forex US Dollar Australian Dollar Canadian Dollar UK Pound Sterling Euro Japanese Yen Saudi Riyal UAE Dirham China Yuan
BUY
SELL
99.1 102.5 98.1 153 132.5 1.055 26.35 27.05 13.5
99.25 105 98.6 154.2 133.3 1.11 26.6 27.3 14
CORPORATE CORNER NBP announces profit and payout ratio of 97.2% for FY 2012 KARACHI: Board of Directors’ of National Bank of Pakistan in their meeting held on February 25, 2012 at the bank’s Head Office Karachi approved the financial statements of the Bank for the year ended December 31, 2012 and announced a payout of 15 % Bonus shares and 70% (Rs. 7.0 per share) cash dividend to the shareholder’s as final dividend for the year 2012 which translates into payout ratio of 97.2%. The Central bank reduced its policy rate by 250 bps in 2012 making reduction of 450 bps in the last 15 months. The State Bank of Pakistan increased the minimum profit rate on deposit from 5% to 6%. Due to these factors the bank’s interest margin like all other banks remained under pressure. This reduction was partially offset through volume growth and improving deposit mix. After tax profit stood at Rs. 16.2 billion, consequent to the adjustment in discount rate. Total assets of the bank increased to Rs.1.31trillion at the year end, up by 14% from year end 2011, an appreciable growth given the competition and growth in overall banking sector. The bank’s total deposits increased by Rs. 110 billion or 12%. Despite the economic challenges the bank’s non performing loans (NPL) remained at the year 2011 level with NPL ratio improving to 12.2% from 14.9% last year. Provision coverage is at 82% which improved from 76% of year 2011. During 2012 several major I.T. initiatives were undertaken including conversion of almost all the branches to the online network, expansion of ATM network, establishment of full fledge 24/7 call center .The benefits of the said I.T. initiatives coupled with ongoing I.T. improvement will be further explored in 2013 in the form of further market penetration and product development. Going forward the bank will emphasize on reducing administrative and manpower cost, increasing Current & Saving (CASA)
KARACHI: Tara Uzra Dawood, president of Dawood Global, addresses a press conference to announce the 5th Ladies Fund Women’s Award for Pakistan. STAFF PhOTO
deposit ratio, reduction in NPLs, increase in agriculture, SME and consumer advances, capturing more trade business, and further improvement of I.T. infrastructure etc. PRESS RELEASE
Emirates says ‘Hello Russia’ to promote flights to Moscow, St Petersburg KARACHI: Emirates, one of the world’s fastest growing airlines, and The Consulate of the Russian Federation have joined together to promote Pakistani tourism in Russia. The ‘Hello Russia’ event was organized at the Russian Center of Science & Culture - Friendship House, Karachi to showcase the attractions of the two biggest cities in Russia, Moscow & St. Petersburg. From the historical landmarks of the capital city of Russia to the renowned museums and exquisite art galleries of St. Petersburg, the event highlighted the mixture of culture and history which the two cities offer, making visitors’ stays unique and memorable. PRESS RELEASE
Sindh Bank earns Rs 1.290b operating profit KARACHI: The Board of Directors of the Bank has approved the financial results for the year ended Dec 31, 2012. During the year the bank earned a profit before tax for Rs 1.290 Billion registering an increase of 13% over the profit of Rs 1.140 Billion in the last period comprising of fourteen months. Profit-after-tax and earnings per share was reported at Rs 887 Million and Rs 0.89 respectively. The bank’s deposits on Dec 31, 2012 stand at Rs 31.469 Billion as compared to Rs 23.517 Billion on Dec 31, 2011 registering an increase of 33.8%. Total no of accounts stand at 77,365 of which 79% are current accounts as on Dec 31, 2012. The banks focus during the year 2012 was on expansion of network and to expand business volumes. A total of 110 branches were opened during the year 2012. Sindh Bank now has a presence in 80 cities across the country with 160 real time on-line branches providing innovative products and services. Further approval of 40 branches across the country has been received from the State Bank of Pakistan (SBP) for the year 2013 making a total network of 200 branches. The Credit portfolio has also registered a commendable growth and amounted to Rs 19.282 Billion as on December 31, 2012 as compared to Rs 7.259 Billion as on Dec 31, 2011. During the year the Board of Directors had approved an interim cash dividend of Rs 0.60 per share. Such dividend amounting to Rs 600 million was paid to the sole owner of the bank i.e. Government of Sindh (GoS) in July 2012. PRESS RELEASE
Samsung UHD TV mesmerizes MENA participants KARACHI: Samsung Electronics Co. Ltd., a global leader in digital media and convergence technologies, unveiled numerous innovative products at the Samsung Middle East and North Africa (MENA) Forum 2013. Among these, the revolutionary UHD TV has completely redefined the concept of home-entertainment, as it emerges from a new vision for the consumerelectronics industry. Samsung has introduced its first 85-inch Ultra High Definition Television (UHD TV) – the 85S9, which presents a stunning, Timeless Gallery design, and sets a new standard for Television craftsmanship. The UHD TV appears to float within its frame and juxtaposes its classic minimalism with the imposing 85-inch display screen. UHD TV 85S9 offers four times the resolution of Full HD displays to deliver unmatched picture detail and clarity. It also includes an up-scaling engine that can automatically up-convert HD and Full HD content to UHD resolution, offering a whole new world of viewing experiences. PRESS RELEASE
Etihad Cargo posts record January tonnage KARACHI: Etihad Cargo, a division of United Arab Emirates flag carrier Etihad Airways, has posted record monthly uplift figures for January of 32,613 tonnes, a 27 per cent increase on January 2012 (25,600 tonnes). In its annual results announced two weeks ago, Etihad Cargo reported annual tonnage growth of 19 per cent for 2012 on the back of a capacity increase of 14 per cent in Available Tonnage Kilometres. Etihad Airways’ Chief Strategy and Planning Officer, Kevin Knight, said: “2012 was a recordbreaking year for Etihad Cargo and based on projections, demand will be greater again in 2013. The impressive tonnage figures for
January were driven largely by increased demand into and out of China and India. “Looking ahead, our forecasts point to continued strong demand in key exporting and importing markets such as China, India, Southeast Asia and Europe, and we remain confident that we have the right product and fleet strategy to match customers’ expectations.” PRESS RELEASE
Establishment of Industrial chair at QAU
ISLAMABAD: Dr Salim-uz-Zaman Siddiqui, renowned Scientist of Earth Sciences Department of Quaid-e-Azam University, Islamabad has been honoured by establishing a chair in recognition of his services by OGDCL and Government Holding Private Limited (GHPL) here today at Islamabad. Dr. Asim Hussain advisor to Prime Minister was the Chief Guest to grace the occasion, the ceremony was organized at Quaide-Azam University, Islamabad. Masood Siddiqui MD OGDCL and Vice Chancellor inked the Memorandum of Understanding (MOU) in the presence of Chief Guest. The chair was sponsored by OGDCL and GHPL with donation of RS 3.58 million. The objective of chair is to bridge gap between industry and university and to initiate research activities in earth sciences department. PRESS RELEASE
KARACHI: The senior management of DHL Global Forwarding Pakistan at the induction ceremony of six 50-footer trucks. PR