Packages Limited’s accounting year ended 31 December 2011

Karachi: We are pleased to inform you that the Board of Directors of the Company in their meeting held at 11.30 A.M. today recommended a cash dividend to the shareholders for approval at the Annual General Meeting as follows -

i) To the preference shareholder (International Finance Corporation) at the rate of Rs. 19.00 (10%) per preference share/convertible stock of Rs. 190.00 in terms of the Subscription Agreement between Packages Limited (PKGS) and International Finance Corporation; and

ii) To the ordinary shareholders at the rate of 15% i.e. Rs. 1.50 per ordinary share of Rs. 10.000 (2010: cash dividend 32.5% i.e. Rs. 3. 25 per ordinary share of Rs. 10.00).

Financial Results

The financial results of the Company are as follows:-

 

Year ended Year ended
31.12.2011 31.12.2010
Rs. in ‘000′ Rs. in ‘000′
Local sales 22,887,852 20,598,198
Export sales 213,967 1,239,235
———- ———-
23,101,819 21,837,433
Less: Sales tax and excise duty 3,708,201 3,266,556
Commission 18,256 34,969
———- ———-
3,726,457 3,301,525
———- ———-
C/F 19,375,362 18,535,908
Cost of sales (18,993,362) (17,732,996)
———- ———-
Gross profit 382,000 802,912
Administrative expenses (619,947) (511,238)
Distribution and marketing costs (562,668) (579,349)
Projects expenditure (55,768) (3,791)
Other operating expenses (555) (15,185)
Other operating income 358,679 202,368
———- ———-
Loss from operations (498,259) (104,283)
Finance costs (1,626,598) (1,210,323)
Investment income 1,040,290 997,260
Impairment charged on investments (391,189) -
———- ———-
Loss before tax (1,475,756) (317,346)
Taxation (92,196) (15,079)
———- ———-
Loss for the year (1,567,952) (332,425)
———- ———-
Loss per share
- basic Rupees (18.58) (3.94)
- diluted Rupees (18.58) (3.94)

 

The Annual General Meeting of the Company is proposed to be held at Karachi on Monday, 30 April 2012 at 10.30 A.M., the date which has already been cleared by your office.

The Share Transfer Books of the Company will be closed from 21 April 2012 to 30 April 2012 (both days inclusive).

We will be sending you 300 copies of the printed accounts for distribution amongst the members of the Exchange in due course of time, Additionally, the accounts shall also be e-mailed to the Exchange by this evening at aqfs@kse.com.pk in Portable Document Format (PDF) to enable the Exchange to place the same on its website. The accounts shall also be placed on the Company’s website (http://www.packagcs.com.pk/periodieal_reports.hum).

Please convey the above information to the members of your Stock Exchange.

Packages Limited hereby announces that its Board of Directors has resolved, to transfer the Company’s paper and board and corrugated businesses into a separate 100% owned subsidiary through the process of hive down of fixed assets subject to all necessary corporate and regulatory approvals. Once the said transfer is duly approved, the assets and liabilities of the paper and board and corrugated businesses would be transferred to and vested in Bulleh Shah Paper Mill (Private) Limited, a 100% owned subsidiary of Packages Limited against the issue of shares by Bulleh Shah Paper Mill (Private) Limited in favour of the Company.

The paper and board and corrugated businesses are industrial businesses which are integrally linked and have different capital and technology requirements as well as market focus as compared to packaging and tissue businesses.

The hive down of the paper and board and corrugated businesses into a separate legal entity will enable Packages to more clearly focus on the separate business unit and enable its development and growth.

The above matter was discussed and final decision was taken at the meeting of the Board of Directors held on 21 March 2011.

For more information, contact:
Adil J. Cawasji
Company Secretary
Packages Limited
Shahrah-e-Roomi, P.O. Amer Sidhu,
Lahore- 54760, Pakistan
Ph: 35811541-46
Fax: (042) 35811195

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