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ICI Pakistan Limited.

ICI Pakistan Limited during the year ended December 31, 1992 performed exceedingly well. Sales volume surged, profitability improved and more funds were available for appropriation. The shareholders were paid handsomely and a large chunk was transferred towards general reserves. Shareholders equity showed marked increase, earnings per share and gross assets employed also boosted showing the corporate strength. The improved law and order situation coupled with structural economic reforms introduced by the federal government have encouraged growth while the company's cost effective and well planned policies along with cooperation received from the workers were the hallmark for outstanding performance.

The company is engaged in manufacture of polyester fibre, soda ash, paints specially chemicals, formulation of agrochemicals, toll manufacturing of pharmaceuticals and animal health products, merchanting of general chemicals and pharmaceutical products. The operating profit for 1992 was 18 per cent higher than last year. It rose to Rs. 590.754 million from Rs. 500.472 million. Cost control and the benefits of full year production from the expanded soda ash plant made this significant increase possible. Short term financial charges were lower than last year because of better cash management. The higher total financial charge was due to an increase in excise duty, full year's mark-upon borrowing for the soda ash expansion and an increase in the financial charges on leased assets. The company had to pay Rs. 89.935 million as financial charges and Rs. 40,236 million as other charges totalling Rs. 130.171 million. An interim dividend of 20 per cent has already been paid and the directors have further recommended to pay final dividend of 22.5 per cent amounting to Rs. 93.196 million (interim Rs. 82.841 million and proposed final dividend Rs. 93.196 million) which payment is higher by about Rs. 10 million under interim dividend head.

The company earned a handsome pretax profit amounting to Rs. 491.640 million against Rs. 420.168 million last year, out of which Rs. 209.916 million being almost 50 per cent of the total, was paid towards taxes which by all standard is a massive contribution towards government exchequer made by any multinational after meeting all expenses. A sum of Rs. 333.865 million was available for appropriation and Rs. 75,000 million was transferred to general reserves after paying dividend to the shareholders.

The company during the review year provided funds amounting to Rs. 733.346 million (Rs. 731.243 million) which were utilised towards capital expenditures Rs. 132.603 million, long term investment Rs. 89,000 million, dividend Rs. 176.545 million, taxes Rs. 178.117 million and rest for repayment of loans and other heads as provided in the report. As mentioned businesses of all items except agrochemicals showed remarkable progress. The production of polyester created new record and sales volume also was highest even new high quality super bright terylene fibre. The company faced difficulties in marketing the product as another competitor Dewan Salman was not paying sales tax and still enjoying a benefit of Rs. 180 million over and above 8 years tax holiday. The case is pending with government but the company has suffered a setback on this ground. Soda ash production and marketing also remained satisfactory and 20 per cent increase in sales was witnessed. In paints, the company did well and growing trends both in production and marketing proved that ICI paints are superior as these have outclassed the other makes. Business in pharmaceuticals, consumers products and chemicals also continued growing.
Financial Information at a Glance
(Rs. in million
 1992 1991
Turnover 4,153.98 3,814.82
Profit before tax 491.64 420.17
Taxation 209.92 169.20
Profit after tax 281.72 250.97
Dividend 176.04 165.58
Gross assets employed (excluding
capital work-in-progress) 2,460.00 2,393.48
Paid-up Capital 414.21 414.21
Shareholders' equity 972.69 866.63
Earning per share
before tax - Rs. 11.87 10.14
Number of employees 1,828 1,833

The company apart from production and marketing also continued concentrating on development of human resources providing security and safety to workers and contributing towards sports, flood reliefs and other social benefits to the society. ICI Pakistan as part of the ICI group worldwide has always pursued the policy of improving the quality of life of its workers, the communities it operates within and the country at large. To this end, the company dedicates its personnel and other resources to a continuing endeavour of evolving new products and technologies that will benefit society. In all 5,334 shareholders own 41,420,663 shares. Of these 5,234 are the individuals who own 10.7 per cent equity interest while ICI Omicron BV continues to hold 61.46 per cent. The highest and lowest market prices of share during 1992 were Rs. 146.00 and Rs. 78.50.

Imperial Chemical Industries plc announced in 1992 that it is considering proposals which when implemented would lead to the division of group into two separate companies, ICI and Zeneca. The new ICI would deal with paints materials, industrial chemicals toxide and explosive businesses. Zeneca will include pharmaceuticals, agrochemicals and seeds and specially chemicals, but these businesses will continue to be operated by ICI Pakistan under distribution agreements that have already been finalised satisfactorily with Zeneca.
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Publication:Economic Review
Article Type:Company Profile
Date:Mar 1, 1993
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