motivated and talented people. They reflect our
strong customer relationship, quality service and market
leadership. Our mission is to create exceptional value for our
clients, investors and staff, through market leadership in providing
innovative Shariah compliant products and solutions, and by adopting
and living our core values".
Highlights of results
• Operating income up at Rs.552 million as
compared to Rs.518 million in the corresponding period last year.
• Net profit up at Rs.86 million as compared to
Rs.77 million in the corresponding period last year.
• Non-performing portfolio reduced from Rs.73.8
million to Rs.64.3 million.
The above performance, together with an efficient
asset and liability management process, has resulted in a stronger
balance sheet as at December 31, 2002. Shareholders' equity stood at
Rs.781 million. Medium-term funds raised, through a pioneering Islamic
Instrument Certificates of Musharika (COMs) form general public
aggregated Rs.414 million as at December 31, 2002. The growth and
success of COMs continues to add strength to the business.
FGM continues to maintain the highest 'Modaraba
Financial Strength' rating of A2 by Pakistan Credit Rating Agency (an
affiliate of Fitch Rating Ltd.) which represents 'a Modaraba in
outstanding financial condition with a consistent record of above
Standard Chartered worldwide is celebrating the
year 2003 to mark the 150 years of its existence in the world of
banking across 50 countries. Throughout the year, Standard Chartered
will be holding events for not only for its employees and families,
customers and dignitaries but also for the communities at large.
According to Mr. Azhar Hamid, Chief Executive
Officer, Standard Chartered Bank stated. "We're proud of our past
and confident of our future. 150 years with you is a testament of our
commitment to and our expertise in our chosen markets. During the year
and beyond, we will be celebrating our partnerships which make us
unique and which we have fostered since 1853. A true partnership is
based upon shared goals, as well as a deep and underlying trust. We
believe that how we are seen and how we act are key factors in keeping
and strengthening our relationships with our customers."
PSO DECLARES RS 6 PER SHARE DIVIDEND
The Board of Management, Pakistan State Oil (PSO),
met here on Thursday, January 23, 2003 to review the half-yearly
accounts of the public sector entity. Mr. M. Salim, Chairman, BoM, was
in the chair.
Mr Tariq Kirmani, Managing Director, PSO, briefed
the BoM members on the performance of the country's largest oil
marketing company during the period July 1, 2002 to December 31, 2002.
The Board observed that during July-December
general economic conditions of the country improved considerably
despite prevailing global uncertainty and escalating Gulf crisis. The
domestic economy recovered from the aftermath of September 11 incident
as indicated by increased foreign remittances and improved exports.
The investment climate also took a favorable turn owing to reduced
interest rates and investor-friendly government policies. Similar
trend was reflected in the POL industry, which depicted 7.8% growth in
white oil products (mogas, diesel, kerosene & jet A-1), while
black oil (fuel & light diesel oil) declined by 3.7% thus
registering an overall increase of 2.5% over same period last year.
During the review period, PSO sales volume increased from 5.2 million
tons to 5.4 million tons, up by 3.4% enabling the company to
successfully increase its market share in key products.
During the first half of FY-03, the BoM noted, the
PSO sales revenue soared to Rs. 101.3 billion, an all-time record
since the inception of the company, thus registering an impressive
growth of 17.5% over prior year period. For the period ended December
31, 2002, the company earned an all-time record profit after tax of Rs
2.06 billion, while the profit before tax stood at Rs. 2.9 billion.
Based on the unprecedented financial performance,
the Board of Management announced a cash dividend of Rs 6 per share
(60%) to its shareholders translating into a cash payout of Rs 1.029
billion, as against Rs. 3.00 per share resulting into a cash payout of
Rs 0.429 billion in the corresponding period last year.
The BoM also observed that the remarkable
profitability of the company was augmented significantly as a result
of the right steps taken by PSO management in the right direction in
terms of improved productivity and increased efficiencies, aggressive
marketing, business processes re-engineering coupled with the full
impact of enhanced margins. Increased profit for six months is also
attributed to the depressed earnings during the same period last year
owing to September 11 incident, which had not only affected the
consumption adversely but also resulted in hefty inventory losses to
The Board of Management commended remarkable
performance of the company and expressed confidence that PSO would set
newer landmarks in the following quarters and in years to come.
BIOMASS OPPORTUNITY IN PAKISTAN: GOING UP IN FLAMES
A recent survey indicates that thousands of tons of
agricultural residues on cultivated land in Pakistan go up in flame
after every harvesting season because there seems to no use for it.
Similarly most of the bagasse, the left over of cane after it is
crushed and its juice extracted at the sugar mills is left to be
burned. All this adds to the pollution of the rural areas. Thick smoke
hangs over the agricultural land during and after every burning
This agricultural residue biomass, which is burned
after every crop, is a rich source of energy. Technology has been
developed to that extent that this rich source of energy, can be
converted into gas, which can be used for heating or cooking or for
generation of electricity.
Biomass is a renewable resource derived from the
carbonaceous waste of various human and natural activities. It is
derived from numerous sources including the by-products from the
agricultural crops, timber industry, raw material from the forest,
major parts of household wastes and wood.
Traditional use of biomass is much more than its
use in the modern application. In the developed world biomass is again
becoming important for applications such as production of gas and
power generation. Biomass is gaining significance as a source of clean
heat for domestic heating and community heating applications. In
countries like Finland, USA, Sweden, China and in India the per capita
biomass energy consumption is becoming higher and higher.
Biogas technology provides an alternative source of
energy in rural China and India. Indian sugar mills are rapidly
turning to bagasse to generate electricity. It is mainly being done to
retrieve the energy from waste and cut down power expense in addition
to earning additional revenue. Accordingly to a recent estimate in
India about 3,500 MW of power can be generated from bagasse in the
existing 430 sugar mills in the country. Around 270 MW of power has
already being commissioned and more units are under constructions.
Pakistan being an agricultural country has an
immense potential for production of gas and generation of electricity
from biomass right at the doorsteps of the rural communities instead
of burning it on the lands. In Pakistan Biomass Gasifier and
Generation System developed in China as the most sustainable and
appropriate equipment for developing country like Pakistan has been
introduced by Business Associates International (BAI) Karachi and
Islamabad based company, which represents the manufacturers. The
plants supplied by them is in used in several countries in Asia
including China, India, Malaysia, Thailand etc. Most recently a plant
of 200 KW has been installed at Eastern Malaysia. The fuel for these
plants are rice husk, cotton stalk, bagasse, empty fruit bunch in
coconut trees etc.
NEW PRESIDENT OF ICMAP
Sher Afgan Malik senior Fellow member of the
Institute of Cost & Management Accountants of Pakistan (ICMAP) has
been elected the new President of the ICMAP for the tenure 2003-2005
in 199th National Council Meeting.
Malik has 35 years extensive and diversified work
experience in managing, reorganizing and establishing new Industrial
and Trading Companies. He has worked in Saudi Arabia, USA, UAE and
Pakistan. He has served Chief Executive of a large business group in
Saudi Arabia and held several important positions prior to that. He
was responsible to create several ventures/joint ventures with
multinational companies like SSANG YONG group of South Korea,
Mitsubishi Corporation, Marubeni Corporation of Japan, Goodyear
corporation of U.S.A., Northrop Corporation of U.S.A., U.S. Corp. of
Engineers, Page Communications Inc., and U.S. Air Force etc. etc. He
has also held the position of the Managing Director of Pakistan
International Airlines Corporation.
Sher Afgan Malik became the 14th President of the
Institute since Institute's inception in 1951.
Following other Office Bearers were also elected
for the same term: Vice President, Muhammad Rafi, FCMA, Honorary
Secretary, Raheel Asghar Ginai, FCMA and Honorary Treasurer, Muhammad
Azam Khan Shad, FCMA.
TERADATA TO PROVIDE COCA-COLA COMPANY WITH EXPANDED
DATA WAREHOUSING CAPABILITY
Teradata, a division of NCR Corporation (NYSE:
NCR), announced recetly that the Coca-Cola Company, the world's
largest beverage company and leading producer and marketer of soft
drinks, has upgraded its Teradata® enterprise data warehouse to
further support its data warehousing strategy. With its Teradata
system, Coca-Cola Company will be able to expand its processing power
and make better, faster decisions based on actionable information.
"In today's competitive market, companies such
as Coca-Cola need technology that can address the most complex
business problems while rapidly delivering the highest return on
investment," said Rocky Blanton, vice president of Teradata's
national accounts division. Teradata, with its unrivaled strength, can
provide the data warehouse and analytical applications to meet their
needs now and in the future."
THE STANDARD CHARTERED CLASSIC GOLF TOURNAMENT 2003
Standard Chartered hosted its first-ever Classic
Golf Tournament at the Karachi Golf Club (KGC) on January 18-19, 2003.
The tournament was well attended with approximately 250 participants
belonging to the Karachi Golf Club.
"Standard Chartered believes in activities
that foster a participatory feeling within the community. In this
respect, the Bank believes that sport is the best form of such
activity as it brings people together in a forum where people interact
in an environment of good, healthy, competitive fun. Above all it
allows for a much needed physical exercise and break from the
stressful daily life," stated Mr. Azhar Hamid, Chief Executive
Officer, Standard Chartered Bank.
A prize distribution ceremony was held with Vice
Admiral Muhammad Haroon HI (M), T.Bt, Chief of Staff, Pakistan Navy,
presiding as the Chief Guest. Prizes distributed included: a Honda
Civic, Rs. 75,000 cash prize, Callaway Golf Sets for a hole-in-one for
other categories, and other attractive prizes for different golfing
The Classic's sponsorship is also the official
launch of the Bank's 150th year celebrations. Standard Chartered
worldwide is celebrating the year 2003 to mark the 150 years of its
existence in the world of banking across 50 countries. Throughout the
year, Standard Chartered will be holding events for not only for its'
employees and families, customers and dignitaries but, also for the
communities at large. Launching the bank's celebrations in Pakistan,
Mr. Azhar Hamid, Chief Executive Officer, Standard Chartered Bank
stated, "We're proud of our past and confident of our future. 150
years with you is a testament of our commitment to and our expertise
in our chosen markets. During the year and beyond, we will be
celebrating our partnerships which make us unique and which we have
fostered since 1853. A true partnership is based upon shared goals, as
well as a deep and underlying trust. We believe that how we are seen
and how we act are key factors in keeping and strengthening our
relationships with our customers."
The bank's association with Karachi Golf Club,
arguably the premium and the oldest golf club in the city, is an old
and a cherished one. On the fairways, the 2nd Hole is sponsored by
In Pakistan, Standard Chartered is the largest
foreign bank and the only one with a presence in every province.
Customers of the Bank can enjoy access to a wide network of 21
branches and over 120 ATMs across Pakistan.
"The merger of Grindlays with Standard
Chartered Bank has created the premier international bank in Pakistan
and put us in a position to deliver significant benefits in terms of
network, products and customer service. The significant value that the
Grindlays franchise has brought to the Standard Chartered Banking
Group was clearly reflected in our annual results for the year
2001-2002 and Pakistan is now a key market for growth within the
Group," said Azhar Hamid, Chief Executive Officer, Standard
Worksite Marketing is the sale of financial service
products and other services to employees, and in some cases their
dependents, through the workplace where, participation is entirely on
a voluntary basis and an employee pays for products, generally through
Worksite Marketing represents a huge opportunity
for Allianz in Asia. It has the potential to become a core competence
within many markets. With higher levels of persistency and lower cost
per sales than traditional agency distribution, Worksite Marketing
offers great potential for those who are interested in exploring new
revenue streams with minimum risk and impact on their existing
operation. Therefore, there is now a window of opportunity, which may
present a unique competitive advantage for Allianz in Asia Pacific and
Allianz EFU in Pakistan.
In general, due to the rising healthcare cost and
unfavourable economic circumstances in the region, a large percentage
of employers are finding it difficult to offer or contribute to their
employees' medical benefits. Following are some of the recent
Around 50% of all the employers do not and cannot
offer medical benefits to their employees.
More than 50% of the employers say that the major
reason they don't offer benefits is because of cost.
Two-thirds of small business owners say that
offering medical benefits has an impact on their business.
Almost 95% of low wage full time workers have been
uninsured till 2001.
More than 75% of all employees agree that they
would buy health insurance through payroll deduction if it is
available, affordable and endorsed by their organization.
Allianz EFU, Pakistan's first specialized health
insurer took this as a challenge. After introducing health insurance
for companies and individuals, Allianz EFU now brings for the very
first time, Health Insurance Through The Work Place. As Worksite
Marketing gives an opportunity to the employers to offer medical
benefits to its employees through payroll deduction, this scheme
brings numerous advantages for both employer and the employee. By
endorsing Allianz EFU and its products/services and agreeing to
payroll deduction (premium) the employer can arrange for medical
benefits for its employees without any financial commitment and
obligation. On the other hand, the employees will have the advantage
of paying the premium in installments without any mark-up making the
scheme attractive and affordable to them.
With employers moving towards voluntary benefits,
Worksite Marketing offers an exciting opportunity for Allianz,
globally and locally, to offer something distinctive in a marketplace
to a ready, captive audience.