PAKISTAN TELEPHONE CABLES LTD.
Feb 19 - 25, 2001
The project was sanctioned in the year 1981 by Investment Promotion Bureau, under
Ministry of Industries, Government of Pakistan, for manufacturing of various type of
telecommunication cables for supply to M/s Pakistan Telecommunication Company Limited
The plant has capacity to produce 502,000 CCKM of various size of cables in single
shift per year.
PTCL was incorporated in the private sector as public limited company under companies
ordinance 1984 duly enlisted in the Karachi Stock Exchange and Lahore Stock Exchange. The
project is being run under technical collaboration with M/s Furukawa Electric Company
The project was financed by M/s Pakistan Industrial Credit and Investment Corporation
(PICIC) and M/s Bankers Equity Limited (BEL), for foreign currency components and local
currency components, respectively.
The commercial production started in July-1987, since then various contracts awarded
against international tenders for supply of Telecommunication Cables to M/s Pakistan
Telecommunication Company Limited and performed successfully.
Since July-1988, the project is owned and run by a well known Saudi Group namely
"AL-RAEE GROUP" having their industrial establishment in the city of Riyadh
& Jeddah Saudi Arabia and in various cities of Pakistan including Islamabad and
The company has announced its financial results for the year ended 30th June, 2000.
During the year the company earned a total profit after taxation of Rs. 37,014,689/-.
The management has declared a dividend @10% of the holding of the valued members.
Current year profit has reduced the accumulated loss of previous year. The
appropriation of the same is as follows:
Net Profit after provision of tax
Proposed for dividend
Accumulated loss brought forwarded
Accumulated loss carried forwarded
The management had disclosed in the preceding year annual report that
the company expected a tremendous increase in the sale, which it was able to achieve
accordingly this year as is reflected by an increase of 629% in net sale as compared with
net sale of Rs. 83.9 million of preceding year. Gross profit of Rs. 57.419 million was
achieved with a margin of 10.88% over the net sale value of Rs. 527.77 million.
Companys operation & prospects
Marketing: During the year ended 30th June 2000, the company has successfully executed
the following contracts awarded by M/s Pakistan Telecommunication Company Ltd.
Further contracts worth Rs. 256.00 million were subsequently completed
during July 2000 to January 2001, whereas the current contract worth Rs. 64.4 million is
under production and supply. The result of these activities will appear in the ensuing
Two bids submitted by the company are also under evaluation with the authority of M/s.
Pakistan Telecommunication Company Ltd., and hopefully we expect these will be finalized
by end Feb/Mar 2001 resulting in generating new orders to the tune of Rs 350.00 million
Settlement with financial institutions: The banks re-structured debts related to
L.T/T.F.C. of NBP, UBL & HBL alongwith R.F/T.R account of HBL are being paid in
regular installment and only 12 installments worth Rs. 9.4 million are outstanding for
payment by 31-12-2001. The company's achievement in settlement of banks loans has
reduced the financial cost to a great level from 17.2 million (1999) to 1.9 million
Funds injection: As against experience in the preceding year, Al-Hamdolillah company
was successful in meeting all its financing through its own business by generating
sufficient funds, consequently no further funds required to be injected by the Directors
as had been the practice since the past few years.
General: The company has made capital investment to the extent of Rs. 11.9 million
towards development of land and building, renovation/acquisition of plant and machinery,
vehicles and generators etc. Furthermore;
Issue of right shares has also been finalized.
Liquidity ratio between current assets to current liabilities has considerably
improved to 1.5:1 to satisfy the requirement as laid by SBPs in this respect.
Comments on auditors report
Auditors, for first time in the history of the project have not raised the issue of
going concern in their report. Significant achievement of the company made during the year
are highlighted as under.
The management raised equity through issuing of right shares of Rs
Bank debts have been liquidated except out-standing amount of Rs 9.4 million as
Generation of Net Fund for Rs. 38.20 million against operating activities.