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Ibrahim Energy Limited.

Located at Faisalabad, the company was incorporated as a private limited company on June 2, 1991 and later on converted into public limited company on February 26, 1992 at Lahore, with the basic object is to generation of electricity and its distribution to different units of the group. The company is being controlled and managed by the Ibrahim Group which is one of the large and well reputed industrial and trading groups of the country. The project envisages a new power generating unit of about 21.2 MW at Faisalabad. Based on heavy fuel oil, the unit will comprise of four sets of diesel generating sets.

The power generated will be utilized by the 6 textile units of the Group located in the close vicinity of the project. The imported plant and machinery comprises 4 x 5.3 MW Furnace Oil generating sets from Japan along with accessories, overhead travelling crane of 5 tons, cooling tower, accessories, spare parts and tools has been acquired from M/s. Nigata Engineering Co. Limited, Japan and LUWA Limited, Switzerland at a cost of Rs. 204.00 million. PICIC has financed machinery worth Rs. 194.76 million and the balance machinery worth Rs. 9.24 million has been financed through directors of the company. The trial operation is expected to start by September, 1992, while the commercial operation and supply of electricity is expected to start by October, 1993.

CAPITAL STRUCTURE: The Authorised Capital of the company is Rs. 100.00 million divided into ordinary shares of Rs. 10/- each, against which the Paid-up capital stood at Rs. 50.00 million. The company has now offered 5,000,000 ordinary shares of Rs. 10/- each at par value includes 750,000 ordinary shares for N IT, 500,000 ordinary shares for employees of the Group and 3,750,000 ordinary shares for general public. The company has received a slight below public subscription amounting to Rs. 48.69 million as against its public offer of Rs. 50.00 million. The company has applied for listing on Karachi and Lahore Stock Exchanges. The company shall stand listed provisionally for trading and for quotation of its shares on KSE from the next day of balloting i.e. April 22, 1993.

PROSPECTS: The industrial sector in particular and the common man in general are faced with the uncertainty of power supply, load shedding and high cost of power. The country faced its first systemised load shedding in 1980, when the demand of electricity overtook the generation. With all the industrialisation going on in the country and a marked change in the living standards of the people as a whole, the gap between the demand and generation of electricity in the last decade has been ever increasing. Fair estimates, by experts put the current power shortage at 2000 MW, which is further increasing at the annual rate of 700 to 1000 MW.

The Government apart from taking many short term and long term measures of its own, has invited the private sector to come forward and share its burden of bridging this gap. The various incentives offered to the private sector include the exemption of profits and gains of the company from income tax. The expected turnover for coming three years would be Rs. 181.41 million, Rs. 195.73 million and Rs. 205.05 million.
Financial Information As at December 31, 1992
 (Rs. in million)
Land - freehold - at cost 4.03
Capital work in progress 32.36
Unallocated capital
expenditure 0.03
Long Term Deposits
and Deferred Cost 0.08
Current Assets 15.76
TOTAL: 52.26
Issued, subscribed and
Paid-up Capital 50.00
Current Liabilities 2.26
TOTAL: 52.26

PRELIMINARY EXPENSES: The Preliminary expenses as on December 31, 1992 were Rs. 80,000 which have been paid by the company, while the expenses of the issue payable by the company inclusive of brokerage, commission to Bankers and other expenses are estimated not to exceed Rs. 2.50 million.

TAX EXEMPTION: The share of the company is approved under section 2(3A) of the Insurance Act, 1938. The profits and gains derived by the company are exempt from income tax under clause 176 of the second schedule to the Income Tax Ordinance, 1979. Investment not exceeding Rupees One lac is exempt from Wealth Tax for a period of two years commencing from the year in which stocks or shares are issued for public subscription.

Board of Directors: Sheikh Mukhtar Ahmed (Chief Executive), Sheikh Mohammad Yaseen, Mohammad Naeem Mukhtar, Mst. lqbal Begum, Mrs. Samina Yaseen, Mrs. Ghazala Naeem, and Mrs. Yasmeen Munawar.
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Publication:Economic Review
Article Type:Company Profile
Date:Apr 1, 1993
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