Thursday, 29 October, 2020
buSiNeSS 09
jAzz IsLAmABAD offIce seALeD oveR non-PAyment of tAxes
corporate corner
ISLAMABAD
LAHORE: Haleeb Foods has joined hands with Pink Ribbon to organize an awareness session for its female workforce. An engagement activity in this regard was held at the HFL Head Office, which was attended by the female employees of the group companies based in the city. PreSS reLeASe
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SHAHZAD PArACHA
HE Federal Board of Revenue (FBR) on Wednesday sealed an office of the Pakistan Mobile Communication Limited (PMCL) due to non-payment of income tax amounting to Rs25.3 billion. According to documents available with this scribe, the FBR's Large Taxpayers' Office-Islamabad has sealed PMCL's F-8 office over non-payment of Rs22.03 billion income tax (Rs3.3 billion default surcharge) for the tax year 2018. "PMCL is an existing taxpayer falling in the jurisdiction of this office [LTU Islamabad]. An income tax amount of Rs25,393,653,480 was outstanding against the said company, which has been refraining from clearing its liabilities deliberately, dishonestly and
without any lawful excuse, thus causing huge loss to the national exchequer," the documents read. "Therefore, on the basis of facts stated inter alia, I, Ahmad Shakeel Babar, Deputy Commissioner Inland Revenue, in exercise of the powers vested in me in terms of section 138 of the Income Tax Ordinance, 2001 read with section 48 of the Sales Tax Act, 1990, order to seal the business premises of the defaulter till the payment of outstanding dues in full or withdrawal of this order." It was further stated that any non-compliance/defiance to this order shall be tantamount to obstruction in discharge of functions of an income tax authority and shall be punishable on conviction with a fine or imprisonment for a term not exceeding one year or both under section 196 of the Income Tax Ordinance, 2001. As per documents, the LTU had earlier directed the PMCL CEO to clear the payable amount till Wednesday (today) and also produce necessary evi-
1QFY21: Nishat Mills’ profit up 2.5pc to Rs946m LAHORE ISLAMABAD: The Allied Bank Islamic Banking Group (ABL IBG) recently organized a seminar on the subject of Islamic Banking in Islamabad. The event was attended by notables from all walks of life including delegates from Islamabad Chamber of Commerce & Industries, renowned businessmen and leading existing and prospective clientele. PreSS reLeASe
ISLAMABAD: STEP has once again proved in supremacy in entry test preparation classes by bagging top three positions as well as 9 out of 10 top positions in NUMS Entry Tests 2020 Result. Nimra Afzal, Mohsin Rashid and Syeda Samar Hamdani secured1st, 2nd and 3rd positions with 190, 189 and 188 marks, respectively. PreSS reLeASe
DRAP notifies hike in prices of 94 lifesaving drugs BUSINESS DESK About a month after the federal cabinet announced to allow pharmaceutical companies to increase prices of 94 lifesaving medicines to end their chronic shortage in the market, the Drug Regulatory Authority of Pakistan (DRAP) on Wednesday issued a notification in this regard. Reportedly, the medicines that would witness price hikes included furosemide injections for emergency use in high blood pressure cases; acetazolamide tablets for glaucoma; hydralazine tablets to lower blood pressure and carbamazepine tablets for epilepsy. According to an earlier statement issued by the Ministry of Health, the designated maximum retail prices would remain in place until June 30, 2021. The government had in September announced that prices were increased only on drugs that were in the “hardship category,” as recommended by the Drug Pricing Committee under the Drugs Pricing Policy, 2018. The “hardship category” is a clause that allows increasing medicine prices for a company that stops the manufacturing of medicines by claiming its production has become non-viable due to the high cost of production.
HASSAN NAQVI
The Board of Directors of Nishat Mills Limited (NML) met on Wednesday to review the company’s performance and announce its financial results for the quarter ended September 30, 2020. As per details, the textile giant reported a net profit of Rs946.346 million (earnings per share: Rs2.69) for 1QFY21 as compared to the net profit of Rs923.702 million (EPS: Rs2.63) during the same period of last year, showing an increase of 2.5pc YoY.
Umer Farooq, an investment analyst at AKD Securities Limited, said that Nishat Mills’ profit of Rs946 million for 1QFY21 was 34pc ahead of AKD’s estimate. He stated that the company’s earnings came on the back of higher than expected "other income", which was up 13pc YoY despite absence of dividend from the MCB (AKD awaits clarity from the management on this). "While core earnings were broadly in line with our (AKD) expectations, slightly higherthan-expected topline and lower-than-expected sales & administration (S&A) offset
the impact of weaker gross margin," he said. Farooq said the company's topline remained flat on a yearly basis when compared to double-digit growth posted by listed peers. "The margins at gross level remained weak (down 211bps YoY/34bps QoQ), possibly on account of a tough operating environment in the low valueadded segment." He said that company's below the line expenses were down 5pc YoY, signifying cost rationalization during the pandemic. Its finance cost was down 8pc YoY due to interest rate cuts, he added.
Lack of coordination between Centre, provinces hampering CPEC progress ISLAMABAD GHULAM ABBAS
A parliamentary committee on Wednesday observed that the lack of coordination between centre and provinces was hampering the progress on China-Pakistan Economic Corridor (CPEC) projects. It directed the concerned departments to expedite the provision of utilities to expedite the process of industrialization and to attract foreign direct investment in the multi-billion-dollar corridor. "Enhancing export-led growth, reducing imports, strengthening local industries and creating jobs for the people of Pakistan can be achieved by timely provision of basic services," said MNA Sher Ali Arbab, chairman of the National Assembly’s Standing Committee on CPEC. The meeting was held in camera to discuss the provision of basic utilities such as gas, electricity and roads etc. As per a statement issued after the meeting, the chairman, while assuring committee’s complete support, directed concerned ministries, divisions and other quarters to attach top priority to CPEC projects. In his view, the CPEC framework was of pivotal national importance and should be completed timely and effectively. "This project is important if we, as a nation,
are to collectively move towards economic stability and prosperity," Sher Ali Arbab emphasized. However, the committee members observed a lack of coordination between federal government and provincial government departments on CPEC projects. "Correspondence between federal and provincial governments takes too long. The best solution to this problem is to make all relevant officials sit together and settle matters amicably," the committee chairman stated. Speaking on the occasion, the concerned officials assured the committee members that their recommendation to include Torkham to Peshawar ML-1 in the CPEC project would be taken up in the 10th Joint Cooperation Committee (JCC). The committee chairman said representatives from various industries would be invited in the upcoming meeting to discuss elaborate CPEC-related business plans. Meanwhile, the Board of Investment sought the committee’s assistance in 53 different areas concerning Special Economic Zones, whereas secretaries of various ministries/divisions also briefed the members regarding issues pertaining to the corridor.
dence to that effect at the FBR's office. The PMCL was also warned that if the company does not comply in this regard, the tax department "could attach and sale the company's moveable or immoveable property, and arrest and detain the concerned for a period not exceeding six months" as specified under clauses (a), (ca) and (d) of sub-section (I) of section 48 of the Sales Tax Act, 1990. Meanwhile, Jazz spokesperson maintained that the company "is a law-abiding and responsible corporate citizen, with significant contribution to Pakistan's economy over the past 25 years". "We have received a notice from FBR this afternoon. Jazz has made tax submissions based on legal interpretations of the tax owed. We will review and take measures under our legal obligations and will collaborate with all concerned institutions for an early resolution of this issue," he added.
Dolmen Group, HBL join hands to develop construction, housing sectors
KARACHI: The Dolmen Group and HBL’s Islamic Banking arm have signed a Memorandum of Understanding (MOU). The MOU was signed in Karachi by Nadeem Riaz, Chairman & CEO -Dolmen Group and Muhammad Aurangzeb, President & CEO – HBL. HBL and Dolmen Group have entered into a strategic partnership to develop innovative financial solutions. Under the MOU, HBL’s Islamic Banking team will work on offering unique banking solutions to Dolmen Group, its customers, its retailers and its affiliates to cater to their financial needs. This will include, but is not limited to, providing developer financing to purchasers of Dolmen Group’s residential developments, and consumer financing to its customers on preferential rates. Under this arrangement, HBL Islamic Banking and Dolmen Group have agreed to develop unique products that can benefit the end customers of both parties. HBL will also work on developing new concepts and ideas to increase Islamic Banking awareness and market space, for which Dolmen Group will be enabling time to time promotions and advertising of HBL’s Shariah-compliant products. "This is a natural partnership between two of the most trusted brands in their respective areas to the benefit of the industry and the end consumer. It will provide greater accessibility to quality residential developments particularly for salaried individuals and young entrepreneurs. It will also grow the retail market with the introduction of technology led payment solutions and loyalty programs. HBL’s market position and vision for the future will be a key enabler in helping us achieve these goals." - Nadeem Riaz, Chairman & CEO Dolmen Group. Commenting on this strategic partnership, Muhammad Aurangzeb, President & CEO - HBL said, “This agreement will enable HBL to support the construction industry while benefitting the very end consumer through customized product propositions. Simultaneously, this will help increase the market space for Shariah-compliant products. HBL recognizes the pioneering role, such as the launch of the first Islamic REIT in the country, being played by the Dolmen Group in spearheading the two strategic imperatives of Construction & Housing Finance and Islamic Banking solutions.” The Dolmen Group is the pioneer of shopping malls and office complexes in Pakistan. The Group is now expanding its presence into residential developments. HBL is Pakistan’s largest bank. PreSS reLeASe
MARKET DAILY
Stocks tumble 194 points on rising virus cases KARACHI STAFF rePOrT
Bears extended their control on the Pakistan Stock Exchange (PSX) on Wednesday, with the indices failing to sustain morning gains and closing in the red amid fears of another Covid lockdown. Global equity markets displayed a mixed trend, whereas crude oil prices dipped lower from the previous close; WTI crude price declining 4.60pc to $37.75 while Brent crude price falling 3.70pc to $40.08. "The investors have lately been discounting good corporate results due to con-
cerns of rising Covid cases, as another lockdown might be imposed in future," said a report issued by AHL Ltd. Gaining 305.50 points in early trade, the benchmark KSE-100 Index recorded intraday high at 41,687.33. It, however, failed to maintain its flight and dropped to intraday low at 41,069.68 (-312.15 points). The index finally settled lower by 194.97 points at 41,186.86. Among other indices, the KMI-30 Index plunged 695.80 points to end at 65,698.37, while the KSE All Share Index lost 137.33 points, closing at 28,976.13. The overall market volumes fell from 481.02 million shares in the previous session
to 368.42 million shares (-23pc). Average traded value also declined by 18pc, from $114.8 million to $94.3 million. Unity Foods Ltd (UNITY +2.82pc), Pakistan International Bulk Terminal Ltd (PIBTL -0.38pc) and Hascol Petroleum Ltd (HASCOL +1.34pc) led the volume chart, exchanging 60.25 million, 31.27 million and 26.88 million shares, respectively. Sectors that dragged the benchmark index lower included banking (-84.66 points), cement (-66.72 points) and textile composite (43.88 points). Among the companies, Lucky Cement Ltd (LUCK -48.47 points), The Searle Company Limited (SEARL -39.35
CMYK
points) and United Bank Ltd (UBL -29.71 points) dented the index the most. Losing 1.44pc from its cumulative market capitalization, the pharmaceutical sector ended as session’s top loser, with The Searle Company Limited (SEARL -6.62pc), GlaxoSmithKline Consumer Healthcare Ltd (GSCKH -4.45pc) and Ferozsons Laboratories Limited (FEROZ -1.06pc) posting significant losses. Meanwhile, in a notification to the exchange, Treet Corporation Ltd (TREET 0.65pc) announced that the company will enhance the capacity of “hygiene razor”. The board of directors has approved a CAPEX of
Rs250 million for this capacity enhancement. On the financial side, Indus Motor Company Ltd (INDU -3.15pc) announced earnings per share of Rs23.48 for 1QFY21 (Rs16.78 last year); Atlas Honda Ltd (ATLH +0.61pc) declared an EPS of Rs8.08 for 2QFY21 (Rs4.60 in 2QFY20); Hub Power Company Ltd (HUBC +5.46pc) recorded an EPS of Rs2.51 for 1QFY21 (Rs1.24 in 1QFY20); Abbot Laboratories (Pakistan) Ltd (ABOT +1.64pc) posted an EPS of Rs10.07 for 3QFY19 (Rs2.71 last year); while Pakistan Stock Exchange Ltd (PSX +0.68pc) registered an EPS of Rs0.19 for 1QFY21 (Rs0.04 last year).
