Refinery: BOSICOR PAKISTAN LIMITED - Year Ended 30-06-2004

The refinery of the company can produce Liquid Petroleum Gas (LPG) light Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels 1&4, High Speed Diesel and Furnace Oil. The company has a long term sale and purchase agreement with Pakistan State Oil for marketing Bosicor Pakistan's products. Until June 30, 2004, the closing date of the accounts under review, the refinery made trial runs only. During the trial operations the company had achieved a turn over Rs 2.112 billion (net of sales tax) but incurred a trial operation loss of Rs 131 million which was transferred to unallocated expenditure.
The trial operation loss was incurred due to damage of a crude oil heater during lasting period. This damage resulted in operations at lower capacity. However the crude oil heater subsequently repaired and after that it was operating smoothly. The company was in the process of finalising insurance claim to be lodged to the Insurance Company. The Bosicor Pakistan's shares are trading at Rs 16.55 per share carrying 65.5% premium.
Bosicor Pakistan Limited was incorporated in the province of Sindh as a public limited company on 9th January 1995. Its registered office is situated at 2nd Floor, Business Plaza Mumtaz Hassan Road Karachi.
The directors of the company hold 0.03% of its total 175.05 million paid-up shares of Rs 10 each. Its holding company Bosicor Corporation Limited holds majority shares at 63.87% of its total stock whereas its 3911 individual shareholders aggregate holding works out to 22.95% stock.
Its other sister concern is Premier Agglo Industries Ltd which was incorporated in 1996, which was set up with Breton S.p.a. Italy and specialises in the processing of superior quality natural agglomerated marble. Its other sister concern is Premier Shipping Services Ltd which was incorporated in 1985 to provide comprehensive services to clients. It is ISO 9002 certified company and maintains a 24 hour online computer link with agencies world over.
Premier Systems (Pvt) Limited is also its one of its sister concern which has entered into the field of information technology. It was formed in 1993. It is a systems integration company as it provides turnkey solutions based on LAN integration, Multi O/S integration, Multi protocol routing, online and critical database MP servers, Storage Area Network, Wireless Connectivity Network Management System, IP Telephony and provides end-to-end security solutions.
Its two more sister concerns are Premier Logistics (Pvt) Limited and Tudor Pakistan (Pvt) Ltd Premier Logistics is a FIATA Certified and locally based transportation integration. Tudor Pakistan provides trading facilities in the areas of various heavy equipment, maritime equipment and has agency representation of some of the world's renowned companies in industrial equity.
Bosicor Pakistan is primarily engaged in refining imported crude oil and selling of petroleum products. The designed annual capacity of the plant is 30,000 barrels per day. The company was granted a certificate of the commencement of business on March 13, 1995. It commenced commercial production from July 01, 2004 (after the date of the balance sheet under review). The plant is located in the province of Balochistan at Mouza Kund, Sub Tehsil Gadani, District Lasbella.
Under an agreement with Pakistan State Oil, Bosicor's refinery will supply its complete range of marketable refined petroleum products to PSO for a period of 10 years. The Ministry of Petroleum and Natural Resources also granted a marketing license to the company in March 2004 for the establishment of an oil marketing company.
Until the year ended June 30, 2004, the company had not started commercial production as such it did not draw profit and loss account so the appended performance statistics are based on the balance sheet of the company only. In this year they made trial operation.

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Performance Statistics                (Million Rupees)

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Balance sheet                                  -As At-

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                                  June 30

                                     2004         2003

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Share Capital Paid-up:           1,750.47     1,750.47

Shareholders Equity:             1,750.47     1,750.47

Loan From Sponsors & Associated

Undertakings Interest Free:        600.09       430.90

Other L T Debts:                   526.40       435.41

Term Finance Certificates:         291.00            -

Gratuity:                               -         0.24

Current Liabilities:             1,995.46       210.32

Tangible Fixed Assets:           3,148.34     2,737.90

Investment Property:                    -        29.00

L T Deposits & Deferred Cost:       13.87        16.02

Current Assets:                  2,001.21        44.42

Total Assets:                    5,163.42     2,827.34

Profit & Loss Account Not

 Drawn Because of Production Trial Run

Share Price (Rs) on 5-4-05:         16.55            -

Financial Ratios

Book Value Per Share:               10.00            -

Price/Book Value Ratio:              1.65            -

Debt/Equity Ratio:                  18:82        17:83

Current Ratio:                       1.00         0.21

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