Engro Corporation Limited’s financial results for the year ended december 31, 2011 – Consolidated and Stand Alone

Karachi: We have to inform you that the Board of Directors of our Company in their meeting held on February 16, 2012 recommended the following;

 

Cash Dividend

 

A final cash dividend for the year ended December 31, 2011 at Rs. 2 per share i.e. 20%. Interim dividends totaling Rs. 4 per share i.e. 40% have already been paid making a total of Rs. 6 per share or 60%.

 

Bonus Issue

 

It has also been recommended by the Board of Directors to issue Bonus shares in the ratio of 3 shares for every 10 shares held i.e. 30%. The said Bonus shares shall not be eligible for the dividend declared for the year ended December 31, 2011.

 

A certificate from our auditors A.F. Ferguson and Co is enclosed as required under clause 6(i) and (iii) of the Companies (Issue of Capital) Rules 1996.

 

The audited consolidated financial results of the Company for the year ended December 31, 2012 are as follows:

 

(Amounts in thousands except for earnings per share)

 

Jan-Dec Jan-Dec
2011 2010
       
Net sales 114,611,837 79,975,765  
Less: Cost of sales 82,530,581 59,702,130  
Gross profit 32,081,256 20,273,635  
Less: Administrative, selling and distribution expenses 10,176,534 8,289,680  
  21,904,722 11,983,955  
       
Add: Other income 2,056,545 897,321  
Less: Financial and other charges including WPP and WW      
funds 14,244,302 5,158,868  
Add: Share of income from joint venture 1,742,187 554,725  
Profit before taxation 11,459,152 8,277,133  
Less: Provision for taxation      
– Current 2,331,018 924,458  
– Deferred 1,316,743 911,673  
Profit after taxation 7,811,391 6,441,002  
Less: Profit/(loss) attributable to minority Interest (249,057) (349,047)  
Profit attributable to equity holders of Holding Company 8,060,448 6,790,049  
Earnings per share attributable to the equity holders of      
Holding Company      
  Restated    
  – basic 20.50 17.27
  Restated    
  – diluted 20.27 17.27
The audited stand alone financial results of the Company for the year ended December 31, 2011 are as follows:      
(Amounts in thousands except for earnings per share)      
  Jan-Dec Jan-Dec  
  2011 2010  
Dividend and royalty income 2,397,435 1,897,584  
Less: Administrative expenses 569,463 388,652  
Add: Other operating income 1,147,010 433,947  
Less: Financial and other operating charges including WW fund 1,524,121 130,904  
Profit before taxation 1,450,861 1,811,975  
Less: Provision for taxation      
  – Current (1,842) 135,618
  – Deferred 28,973 398
Profit after taxation 1,423,730 1,675,959  
  Restated    
Earnings per share – basic and diluted 3.62 4.26  
       
Add: Un-appropriated profit brought forward 8,722,156 9,250,972  
Lest Final Dividend 2010 @ Rs.2 per share (2009: 655,474 595,886  
Rs.2 per share) paid during the year      
Less: Issue of 1 bonus share for every 5 shares held 655,474 297,943  
issued during the year (2009: 1 bonus share for      
every 10 shares held)      
Less: Interim Dividend 2011 @ Rs.2 per share (2010: 786,569 655,473  
Rs.2 per share) paid during the year      
2nd Interim Dividend 2011 @ Rs.2 per share      
(2010: Rs.2 per share) paid during the year 786,569 655,473  
Profit available for appropriation 7,261,800 8,722,156  

 

The Annual General Meeting of the Company will be held at 10:00 a.m. on Friday, March 30, 2012 at the Karachi Marriott Hotel.

 

The final dividend and bonus shares if approved by the shareholders will be paid and issued to the shareholders whose names appear on the Register of Members on Friday, March 16, 2012.

 

The Share Transfer Hooks of the Company will be closed from Friday, March 16, 2012, to Friday March 30, 2012 (both days inclusive). Transfers received in order at the office of’ our Registrars, Messrs FAMCO Associates (Pvt.) Limited, State Life Building No. 1-A, 1st Floor, I.I. Chundrigar Road, Karachi-74000 upto the close of business (5:00 p.m.) on Thursday March 15, 2012 will be treated in time for the purpose of payment of dividend and the issue of bonus shares to the transferees.

 

Free Reserves as at December 31, 2011

 

The authorized capital intends to increase to Rs. 5,500,000 thousands to Rs. 4,500,000 thousands which the Company intends to increase to Rs. 5,500,000 thousands after due approval from the shareholders in the forthcoming annual general meeting.

 

In the light of above as requested, we have ascertained from the Company’s audited financial statements for the year ended December 31, 2011, which have been approved by the Board of Directors and on which the auditor’s report remain to be singed that the Company’s residual free reserves in terms of the meaning given to free reserves in the Companies (Issue of Capital Rule). Rules 1996 after the proposed Issue of Bonus Shares of a face value of Rs. 1,179,853 thousands would be higher than twenty five percent of the enhanced paid up capital of Rs. 5,112,696 thousands subject to the aforementioned increase in authorized capital.

 

We have reviewed the contingent liabilities outstanding as at December 31, 2011 to determine the contingent loss if any, failing within the scope of the paragraph 14 of the International Accounting Standard 37 Provisions, Contingent Liabilities and Contingent Assets and Confirm that no such liabilities are deductable from the aforementioned free Reserve of the Company.

 

The Company’s “Free Reserve” retained after the aforementioned proposed bonus issue do not Include any reserve created as a result of revaluation of fixed assets or any Intangible assets such as preliminary expenses or goodwill.

 

For more information, Contact:

Engro Corporation Limited

8th Floor, The Harbor Front Building,

HC-3, Marine Drive, Block 4,

Clifton, Karachi 7560 Pakistan

T: 00 92 (21) 35297501-10

T: 00 92 (21) 111-211-211

F: 00 92 (21) 35870669

Web: www.engro.com

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