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Kohinoor Power Company Limited.

Located at Kohinoor Nagar, Faisalabad, the company was incorporated as a private limited company on December 8, 1991 and later on converted into a public limited company on April 25, 1992 with the basic object to produce and supply electricity on commercial basis. The imported plant and machinery for the project comprised of two generating sets of 5080 KW with rated capacity of 10 MW along with accessories has been acquired under supplier's credit, guaranteed by Faysal Islamic Bank of Bahrain at a cost of Rs. 124.73 million. The locally manufactured machinery comprising of switchgears, fuel and chemical tanks have been procured valuing Rs. 28.32 million. The plant and machinery has been installed. The company has also a plan to increase its capacity by 5 MW. A contract for suppliers credit has been signed in this regard with M/s. Tomen Corporation at a cost of Rs. 146.28 million including a foreign exchange component of Rs. 91.35 million. The existing plant has started its commercial production and supply of electricity form January 1992, while the additional 5 MW Power Plant will start commercial production from 1st October, 1993.

CAPITAL STRUCTURE: The Authorised Capital of the company is Rs. 80 million divided into ordinary shares of Rs. 10/- each. against which the Paid-up Capital stood at Rs. 40.00 million. The company offered 4,000,000 ordinary shares of Rs. 10/- each at a premium of Rs. 10.00 includes 570,000 ordinary shares for NIT, 75,000 ordinary shares for employees of the company. 200,000 ordinary shares for foreign Fund and 3,155,000 ordinary shares for the general public. The company has received public subscription of Rs. 51.00 million as against its public offer of Rs. 40.00 million which was 27.50% higher of the original offer. The company has been listed on KSE and LSE. The issue was underwritten by Faysal Islamic Bank of Bahrain and Mr. M. Naseem Saigol - Chief Executive of the company.
Financial Information
As At September 30, 1992
 (Rs. in million)
Fixed Assets at Cost
Less Depreciation 161.84
Deferred Cost 0.10
Current Assets 46.52
Less: Current Liabilities 44.39
Financed By:
Issued. Subscribed &
Paid-up Capital 40.00
Reserve 10.00
Unappropriated Profit 10. 13
Long Term Loan 103.94

OUTLOOK: The power generation project of Kohinoor Power Company Limited, the very first of its type on private sector, has been set up with a view of providing industries, electricity supply, which is uninterrupted, constant in rating, has minimum of the losses and is available throughout the year. The company has started supply of electricity of Kohinoor Industries Limited which has switched over its total load from WAPDA. The demand of Kohinoor Industries Limited alone stands at some 8.75 MW. This demand will be increased to 12.75 MW by the end of June 1993 when the BMR of the Kohinoor Industries Limited will be commissioned. The company is thus assured of ready consumer of its total generation capabilities from a single consumer only.

Presently the plant is operating successfully at 90% capacity. 5% output is utilised by the plant itself. The additional 5MW Power Plant which has to be installed will meet the increased demand of the Kohinoor Industries Limited. The plant will be operated at 90% capacity because it is the safest capacity. The expected turnover for coming 3 years would be Rs. 123.504. Rs. 167.429 and Rs. 182.059 million.

PRELIMINARY EXPENSES: The preliminary expenses of the company as on 30th September, 1992 amounting to Rs. 98,955 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: Mr. M. Naseem Saigol (Chief Executive) Mr. Yousuf Saigol, Mr. Azam Saigol, Mr. Khalil A. Malik, Mrs. Razia Begum, Mrs. Sehyr Saigol, and Mrs. Amber Saigol.

BANKERS OF THE COMPANY: Faysal Islamic Bank of Behrain E.C., Union Bank Limited and Habib Bank Limited.

BANKERS TO THE ISSUE: Allied Bank of Pakistan Ltd., Bank of America NT & SA. Emirates Bank International Ltd., Faysal Islamic Bank of Behrain E.C., First Women Bank Ltd., Habib Bank Ltd., Muslim Commercial Bank Ltd., National Bank of Pakistan, The Bank of Punjab, United Bank Limited and Union Bank Limited.

AUDITORS: Manzoor Hussain Mir & Co., Chartered Accountants, Al-Noor Building, Bank Square, Lahore.

REGISTERED OFFICE: 6-Egerton Road, Lahore.

PROJECT: Inside Kohinoor Industries Limited, Kohinoor Nagar, Faisalabad.
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Publication:Economic Review
Article Type:Company Profile
Date:Apr 1, 1993
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