SECP holds seminar on online incorporation, eServices

The SECP held a seminar on online incorporation, eServices and measures to increase corporatization at the Rawalpindi- Islamabad Tax Bar Association, Rawalpindi.

Mr. Muhammad Siddique, Registrar of Companies, highlighted various measures of the SECP to facilitate the corporate entities and consultants.  He also explained that fast-track services would be launched shortly.

Mr. Shaukat Hussain, Additional Registrar, CRO, Islamabad, answered participants’ questions and sought their suggestions for further improvement.

A detailed presentation was made by Mr. Muhammad Akram Qureshi, Deputy Registrar, covering the relevant provisions of the Company Laws especially highlighting different aspects of incorporation of companies and post incorporation statutory compliance.

Mr. Muhammad Jamil Aamir, Assistant Registrar, explained various steps of online filing, creation of eServices accounts for availability of name and further steps/procedure for online incorporation and efiling of various statutory returns.

The participants included practicing chartered accountants, cost and management accountants, lawyers and corporate practitioners.

Mr Shaukat Baluch, President, Rawalpindi-Islamabad Bar Association, appreciated the efforts of the SECP and suggested that such seminars may be held on a regular basis for the benefits of the corporate sector and professionals.

Engro Foods announces profit of Rs 891 million

By Abdul Qadir Qureshi

 The Board of Directors of Engro Foods Limited has announced a profit after tax of Rs. 891 million for the year ended, December 31, 2011 as compared to Rs 176 million in 2010.

 Engro Foods’ revenue for 2011 recorded an increase of 43% and stood at Rs. 30 billion as compared to Rs. 21 billion in the 2010. The Company also announced an EPS of Rs. 1.22 (basic & diluted) for the year 2011 as compared to EPS of Rs 0.31 in the year 2010.

 Engro Foods continued to consolidate its growth through the year and during the first half of the year, in May 2011, the foods business raised Rs. 1.2 billion by issuing 48 million shares to the institutional investors – mainly the US & UK mutual funds – at a share price of Rs. 25 per share. The Company’s vision to enhance its footprint and pursue a focused growth strategy led to the first-ever public offering of 27 million shares of the business to the general public at a price of Rs. 25 per share, inclusive of a premium of Rs. 15 per share.

 The Company has continued its aggressive business strategy of growth and diversification and achieved volume growth of 22% in 2011. Building on its promise of elevating consumer delight, the business diversified into popularly priced, high quality product category with the launch of Dairy Omung – a nutritious and affordable dairy product for lower income consumers. Innovation remained at the core of the business’s product expansion strategies this year and we also introduced Olper’s variants of Badam Zafran and Rose flavors which were well received by the market.

 The year 2011 also marked the relaunch of the refreshing Olfrute brand which continues to reflect strong consistent growth in its volume base. With six invigorating flavors Olfrute registered a volume growth of 236% in 2011.

 Omore’s volume increased by 43% in 2011 and the company continued to investment in its brands, product development & diversification and cold chain infrastructure.

 The Company’s Nara Dairy Farm continued to remain a rich and nutritious source of raw material for its dairy segment. The Nara Farm produced over 5.8 million liters of milk in 2011 with a total herd size of over 3,000 animals.

 Mirroring its success in the local market, Engro Corp – the parent company – made its foray within the international arena with acquisition of Al-Safa – a leading halal meat brand in North America – at a total cost of US $6.3 million in April 2011. The business is owned by Engro Corp, but managed by Engro Foods.  During the first 8 months of operations (since the acquisition) till December 31, 2011, Al-Safa brand sales were US $5.3 million and the operational loss was US $ 1.2 million including the pre-commencement cost of US $0.33 million.

 Since Engro Corporation currently owns the equity stake in Engro Foods Canada these losses are not included in the Company’s financial performance. Engro Foods will buy the equity shares from the holding Company at the actual cost post-approval of the Regulator.

 The Board expressed confidence in the strategic vision and direction of the management and indicated a clear signal to pursue a long-term growth strategy by building an inherent cost-consciousness and product positioning for the business.

SECP facilitating corporate sector in collection of annual returns and accounts

ISLAMABAD, November 28: In order to facilitate the filing of annual statutory returns and accounts, the Company Registration Offices (CROs) of the Securities and Exchange Commission of Pakistan (SECP) is extending facilitation in collection of annual returns and accounts.

The last date of filing of Forms A/B for companies other than listed companies, which held their AGM on October 31, 2011, is November 30. The companies are required to file annual returns on Forms A/B within 45 days, in case of listed companies and 30 days in case of other companies, of holding of annual general meetings (AGMs). The annual audited accounts are required to be filed within 30 days of holding of AGMs.

The SECP has provided the facility for collection of returns and accounts, at the Chambers of Commerce and Industry, in the cities of Sialkot, Hyderabad, Gujranwala, Gujrat, Rawalpindi, Bahawalpur, Rahim Yar Khan and Sheikhupura and its representatives will be present at these chambers on due dates of filing of Forms A/B, for collection of annual returns and accounts.

Special facilitation desks have been established at the CROs to facilitate companies in submission of annual returns and accounts. The CROs shall also remain open until  8 pm p.m.., on November 29-30.

Sui Southern Gas Company declares 25pc cash dividend, 5pc bonus

Sui Southern Gas Company  has earned a net profit of Rs. 4,724 million for financial year 2010-11 as compared to Rs. 4,399 million during the last corresponding period. In addition, the Company’s earnings-per-share for the period under review increased to Rs. 5.63 from Rs. 5.24 in FY 2009-10. The Board of Directors of SSGC, in its meeting held on 29 September 2011, approved the final accounts for the year ended 30 June 2011 and proposed a 25% cash dividend for its shareholders; in addition, 5% bonus shares was also declared by the Board.

FBR's Clarification regarding Payment of surcharge at 15% under section 4A of the Income Tax Ordinance 2011—levied vide Income Tax (Amendment) Ordinance 2011

The Federal Board of Revenue has announced that the 15@ surcharge under section 4A of the Income Tax Ordinance 2011 is payable by all tax payers of their tax liability for the Tax year 2011, irrespective of whether their tax year ends on 31st December 2010 or 30th June 2011 or any other date.

In a circular issued here today, the FBR has made certain clarifications to the 15% Surcharge under section 4A of the ordinance in view to address the queries being received by the Board suggesting multiple interpretations of this Section and to streamline the implementation of this time bound provision.The circular further clarifies that the Tax Liability for the entire Tax Year 2011 may not be subjected to the imposition of surcharge and the same be levied on the proportionate liability for a period of three and a half month.It may hence be noted again that the surcharge is to be computed @ 15% of the Income Tax payable for three months and a half on pro-rata basis and the tax liability inclusive of 15% surcharge so calculated is to be set off against the taxes withheld or collected in the tax year.

SECP tells holding companies to enhance public disclosure

ISLAMABAD: Group Companies Registration Regulations, 2008, were issued by the Securities and Exchange Commission of Pakistan in 2008 to provide a regulatory framework for the formation of group companies, comprising a holding company and its subsidiaries and to streamline the group ownership structures.

The Regulations provided a registration mechanism of holding companies along with their subsidiaries as a group with the SECP, and also provided an enabling framework for the group companies intending to avail themselves of tax relief from the FBR.

In order to further enhance the public disclosure of intra-group shareholding and financial position of the group companies, it has now been required that all the holding companies registered under the Regulations shall maintain their websites and place thereon the annual audited financial statements of their group along with their directors’ report and the auditors’ report. SRO No. 640(I)/2011 was issued on June 22, 2011, mandating the aforesaid requirement, and the holding companies have been required to report the compliance by intimating the SECP of their website address within 15 days of the issuance of the notification.

SECP proposes changes in NBFC Regulations, 2008

The Securities and Exchange Commission of Pakistan (SECP), vide S.R.O. 350 (I)/2011 dated May 5, 2011, has proposed certain amendments to the NBFC & Notified Entities Regulations, 2008 (the “Regulations”) and have also placed these amendments on its website to solicit comments from the public and concerned quarters.

While allowing operational flexibility to fund managers, measures have also been introduced to ensure investor protection. It is a step forward by the regulator for a more conducive regulatory framework to help the industry participants to benefit from growth opportunities.

The significant amendments encompass:

1. Replacement of seed capital requirements with minimum fund size to offer flexibility to fund managers in launching new mutual funds;

2. Restricting annual equity brokerage paid by a mutual fund to a single broker to 10% of its total brokerage expense, for promoting competitive brokerage services. Besides minimizing concentration risk posed to mutual funds, such measures are also aimed at encouraging other financial market participants to benefit from the diversified brokerage services rather than routing bulk transactions through single or a few brokers.

3. Empowerment of unit holders for decisions on material aspects of a mutual fund including transfer of its management rights;

4. Enhancement of role of trustees of mutual funds to ensure better safeguarding of unit holder interests and prohibiting them from investing in mutual funds for which they act as trustee.

5. Imposition of 5% cap on investment by a single unit holder in a mutual fund with the objective to contribute towards broadening the investor base.

6. Removal of minimum lease period for any lease to provide operational flexibility to leasing companies;

The SECP, as part of its continuous efforts for development of the capital markets has proposed the amendments in accordance with the best international practices and are aimed at encouraging the growth of mutual funds.

Any suggestions or comments on the proposed amendments may be submitted by May 21, 2011 at NBFC.Comments@secp.gov.pk

SECP registered 323 companies in January

The Securities and Exchange Commission of Pakistan (SECP) registered 323 companies in January.

The highest share in new incorporations was of private companies totaling 290. Other companies include 20 single-member companies, 2 public unlisted companies, 6 non-profit associations, 4 foreign companies and one trade organization.

Of 323 companies, the highest incorporation of 53 companies each was witnessed in the services and trading sector, followed by 18 in Hajj and Umrah services, 17 in I.T., 16 in construction, 12 each in textile and communications, 11 in engineering, 10 in pharmaceuticals, 9 each in chemical, education, transport, and food and beverages, 8 each in power generation and fuel and energy, and 7 each in auto and allied, and corporate agricultural farming.

During January the Company Registration Office (CRO), Lahore, registered highest new incorporation of 108 companies followed by the CRO in Islamabad and Karachi registering 93 and 75 companies, respectively. The CROs of Peshawar, Multan and Faisalabad registered 17, 14 and 12 companies each while CROs in Quetta and Sukkur registered 3 and 1 company respectively.

The authorized capital and paid-up capital of 323 companies, is Rs1,774 million and Rs 712.08 million respectively. During the month, 51 companies increased their authorized capital with the aggregate authorized capital increment of Rs8.46 billion and 74 companies raised their paid-up capital with the total paid-up capital increment amounting to Rs13.6 billion.