Connect with us

Headlines

OGDCL headquarter stays closed in protest on second day

Published

on


ISLAMABAD: The OGDCL Officers Affiliation in collaboration with CBA Union on Tuesday once more saved the headquarter of the Oil and Gasoline Growth Firm (OGDCL) closed in protest and demanded a elevate of their salaries amid skyrocketing inflation.

Whereas addressing a peaceable demonstration OGDCL Officers Affiliation head Ghulam Murtaza Lashari and President CBA Union Raja Muhammad Saleem reiterated their stance that their peaceable protest will proceed and the OGDCL headquarter will stay closed until the decision of their calls for.

They mentioned it was unfair that the previous workers and officers haven’t been given any elevate of their salaries whereas not too long ago appointed blue eyed Government Administrators (EDs) have been given profitable packages. “These EDs are getting as much as Rs3 million salaries and different enticing perks and privileges whereas their induction can be a giant irregularity if investigated as a few of them are wanting expertise required to such essential place of the nation’s largest Exploration and Manufacturing (E&P) firm,” they added.

They demanded {that a} honest and simply investigation ought to be initiated towards the appointments of Atif Ghafoor, ED Joint Enterprise, Amir Saleem, ED Petroserv, Shahzad Safdar, ED Human Useful resource (HR), Zia Mohi Uddin, ED Providers, Farrukh, ED Exploration and Anas Farooq, Chief Monetary Officers  and held the MD and OGDCL board accountable for such irregular appointments.

“This protest will proceed until the decision of our calls for and if they aren’t heard then we are going to fully shut down discipline websites of the state-owned E&P firm,” they warned.



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Headlines

TCS shuts down eCommerce enterprise Yayvo.com, takes impairment lack of Rs1.2bn 

Published

on


LAHORE: After a sequence of half-hearted makes an attempt to unload its eCommerce enterprise, Yavo.com, TCS has lastly determined to tug the plug and shut down operations of the Daraz-style market, credible sources have confirmed to Revenue. 

Yavo.com’s shut down might show to be a giant hit for its guardian firm TCS, which is anticipated to face an impairment lack of Rs 1.2 billion — which interprets to a dip of 10-20% in valuation. Impairment is an accounting idea that applies when an entity considers that the steadiness sheet worth of its property is greater than the quantity which is recoverable from utilizing or promoting them — basically a fallout from a nasty mortgage on this case. 

TCS had made investments into Yayvo posted as loans in its accounts. 

At current, an easy Google seek for Yayvo will present the hyperlink to the Yayvo web site on the prime in search outcomes, together with a message: “Expensive valued clients, the web site might be offline from 1st October as a result of scheduled upkeep.” Nevertheless, sources have confirmed that Yayvo won’t be going reside once more. 

Screengrab from Google search on Yayvo

The state of affairs at Yavo.com has been dire for some time, and in current months had been hurtling in the direction of the inevitable. TCS has intermittently both laid off employees from Yavo.com or has been transferring them to different departments inside TCS because the eCommerce companies had been cash-strapped. The remaining core staff members, 17 in quantity, have been laid off final week, in response to a supply. One other supply stated that the corporate actually had no development within the final three years. 

The choice to close down Yayvo comes after a bumpy journey for TCS with monetary troubles on the firm choking funding for Yayvo, failure to lift funding and patrons backing out. Based in 2014, Yayvo was launched as an eCommerce market that aggregated merchandise from completely different sellers on one platform. The logic behind the idea was that since eCommerce marketplaces like Daraz had the eventual objective or forming a market after which going into logistics, a legacy firm like TCS with an present logistics infrastructure might merely arrange a market of its personal (which is the simple half) and get an enormous head begin and make some critical cash alongside the way in which.  

The success and logistics operations have been powered by TCS’ warehouse infrastructure and logistics fleet. Nevertheless, the eCommerce enterprise ended up being extra difficult than the administration at TCS had figured and the guardian firm needed to frequently bail out Yavo.com as a result of skinny margins. Yayvo wanted steady monetary assist due to the excessive cash-burn mannequin of a market enterprise – a dedication Yayvo’s guardian firm TCS didn’t see via. 

Due to these low margins on merchandise, marketplaces like Yayvo and Daraz must have tens of millions of {dollars} in funding to have the ability to preserve the enterprise operating till they discover extra worthwhile avenues or see the corporate via to a profitable exit. Daraz managed to try this via its acquisition by AliBaba.

A high-ranking former official of the corporate informed Revenue that by 2018, TCS had discovered itself in a money crunch in its courier enterprise and couldn’t fund the Yayvo enterprise any additional. “When the core enterprise itself began having quite a lot of points with cash, in fact they might not afford investing cash into Yayvo,” stated a supply aware of the matter. 

Troubles had begun for Yayvo quickly after TCS CEO MA Mannan left the corporate abruptly in 2018. In keeping with Revenue’s earlier report on TCS, folks within the pro-Mannan camp argue that the board of administrators didn’t enable the CEO to adequately fund that enterprise, on account of which it by no means stood an opportunity of succeeding. In addition they declare that Yayvo was the brainchild of Khalid Awan himself and Mannan was solely requested to implement his thought.

Observers exterior the corporate agree that an inadequately funded enterprise can be tantamount to burning money. “It takes $20-30 million to arrange a correct e-commerce enterprise in Pakistan, and no person except for Daraz has been prepared to try this,” Hamaad Ravda, former chief advertising and marketing officer at Daraz.pk had stated. “In the event you’re not prepared to try this, then you definitely’re losing time and assets.”

In keeping with a number of sources, TCS pumped roughly Rs2-2.5 billion into Yayvo between 2015 and 2018, when the corporate confronted a critical funding crunch. The corporate wouldn’t have been worthwhile by itself due to skinny margins in eCommerce and excessive prices.

Then again, scaling the corporate would have required additional cash burn at a time when the guardian firm was unwilling to place more cash into the enterprise. In keeping with sources, TCS had been actively looking for traders in early 2019 and by the center of 2019 managed to discover a Pakistani investor who would take the enterprise from TCS utterly, however at a value that might have turned TCS a web loss on the Yayvo sale, resulting in an impairment that the corporate took now. 

Yayvo had earlier obtained an roughly Rs1 billion valuation from the Jang Group for Yayvo, which the corporate  administration determined to not take. 

A supply indicated that whereas Yayvo had curiosity from patrons which included the AliBaba Group in addition to Pakistan’s Jang Group, Brainchild Communications acquired to the superior levels of the negotiations to accumulate Yayvo and proceeded forward with its due diligence. 

“The possible purchaser put a small value on the enterprise which might have turned a giant loss to TCS on its Yayvo funding,” a supply informed Revenue.  From the yr Yayvo began operations to the time this sale was proposed, TCS, in response to two sources, had invested about Rs2.5 billion in Yayvo. Brainchild Communications was providing solely Rs500 million for 100% of Yayvo, in response to the supply.

Moreover, TCS was unwilling to promote Yayvo below TCS E-Com Pvt Ltd, the corporate which owned the Yayvo model and which was owned by TCS. As an alternative, TCS needed to create a brand new subsidiary to park Yayvo property after which promote that subsidiary. 

Our supply speculates that TCS needed a buyout for Yayvo below this association as a result of TCS had made investments into TCS E-Com Pvt Ltd for Yayvo as loans on TCS’ accounts. 

The creation of a separate objective automobile (SPV) would contain the switch of property to a brand new firm which might finally be offered to an purchaser. The SPV would function a way to divest Yayvo from TCS E-com and shield the latter’s financials as an enormous loss is anticipated on the sale.  

To place it in easier phrases, the guide worth of Yayvo on TCS financials was in extra of what it might have been offered for. Due to this fact, as soon as a sale transaction takes  place, TCS must guide the huge variations as a loss in its books which might haven’t fared effectively with the corporate’s traders and lenders, therefore the necessity to do it via an SPV.

In an earlier report, Revenue lined that TCS owed as a lot as Rs5 billion to banks and different lenders, an quantity that constituted 75% of its capital construction in 2019. Posting a lack of billions of rupees on a portfolio firm would have spooked off its lenders, who can be sceptical of restructuring loans to TCS and reject any new loans. 

Banks often signal covenants whereas lending to company clientele. One such time period in these covenants is profitability which requires debtors to make sure a sure degree of profitability and in the event that they fail to take action, the loans change into repayable instantly. 

The investor, Brainchild Communications, rejected TCS’ association to course of the sale via a subsidiary, as a result of, in response to our supply, Brainchild needed to accumulate Yayvo and current it as a hit story as and the way its trajectory was and lift subsequent rounds. A brand new subsidiary would have eclipsed all of that.

The corporate had additional tried to lift funding from exterior traders however was by no means capable of efficiently full it. In keeping with our supply, the upper administration of the corporate attain superior levels of negotiations with exterior traders to maintain Yayvo, and after commitments from traders, the TCS administration would stall the increase. 

One of many circumstances that the traders put ahead in response to our supply was that traders would ask TCS highups to show over management of Yayvo to an expert administration that understands tech companies similar to eCommerce. 

TCS owned over 95% of TCS E-Com and Yayvo, and this fairness construction didn’t sit effectively with exterior traders. Our supply argued {that a} skilled staff that would have been given the helms to run the corporate couldn’t be adequately compensated on this association. 

Issues had been reported earlier with distributors TCS did deliveries for complaining that launching Yayvo created pure conflicts of curiosity after TCS’ eCommerce enterprise began changing into a contest for eCommerce distributors TCS did deliveries for. 

It has additionally been reported earlier that TCS started utilizing the money it collected on behalf of eCommerce distributors for cash-on-delivery orders and utilizing it to fund its personal working capital requirement, delaying funds by as much as a number of months to distributors who have been owed funds.

In keeping with sources aware of the matter, TCS, again in 2019, owed as a lot as Rs100 million to eCommerce distributors on account of cash-on-delivery funds, which pushed distributors to start out utilizing different supply companies like Leopard Courier, M&P and others, affecting TCS’ eCommerce logistics enterprise.

For the final three years, one other supply which had been affiliated with the corporate, stated that the corporate actually had no development within the final three years.  “They have been paying salaries of all of the employees on a well timed foundation.”

Our supply additional stated that following Mannan’s departure, the highest administration of the corporate confirmed much less enthusiasm in taking the enterprise ahead and regardless of a number of methods and strategies supplied to excessive managers like taking an impairment loss in early days of Yayvo or spinning it off to a special mannequin, the administration confirmed lethargy in taking any resolution. 

The fast impression on TCS from this saga is that the banks will begin inquiring concerning the loans to TCS, in response to a supply, which insinuates that TCS’ troubles might be compounded. “The corporate had proven projections based mostly on which financial institution loans had been restructured, that the corporate [Yayvo] might be doing very well over the subsequent two to 5 years. Now you’ve gotten taken the impairment, no matter rescheduling had been finished, lenders would ask to reverse it,” the supply says. 

 



Continue Reading

Headlines

ITFC delegation to go to Pakistan to debate Annual Financing Plan

Published

on


ISLAMABAD: A 5 member delegation of Worldwide Islamic Commerce Finance Company (ITFC) headed by its Chief Working Officer (COO) will go to Pakistan from October 3 to five, 2022 to debate Annual Financing Plan and operational and technical points with stakeholders.

As per particulars, ITFC mission will include Nazeem Noordali, COO, Abdul Aleem Mohamed, Division supervisor Commerce Finance, Athar Khalil Division supervisor Monetary Establishments, Ahmed Ali Mohamoud Senior supervisor Commerce Finance and Bilal Tipoo Senior supervisor Credit score Evaluate Danger.    

Throughout this three day go to of ITFC delegation to Pakistan, the delegation will maintain conferences with EAD, State Financial institution of Pakistan (SBP), Finance Division, Petroleum Division, PSO, PARCO and PLL.   

Financial Affairs Division (EAD) in a letter dated September 26, 2022 has requested the petroleum division to kindly make it handy to carry a gathering with ITFC mission on October 4, 2022 at 10:00 hrs. The dealing officers of Pakistan State Oil (PSO), Pak Arab Refinery Restricted (PARCO) and Pakistan LNG Restricted might also be suggested to take part within the assembly.

It’s pertinent to say that the Worldwide Islamic Commerce Finance Company (ITFC), a member of the Islamic Improvement Financial institution had earlier permitted a $1.2 billion financing below the annual plan to supply Pakistan built-in commerce options to help the power and agriculture sectors.

The annual plan was signed in February 2022 throughout a ceremony in ITFC headquarters in Jeddah between ITFC and a delegation of the Ministry of Financial Affairs.

The ITFC annual plan settlement with Pakistan for calendar 12 months 2022 consists of financing for the import of important commodities resembling crude oil, refined petroleum merchandise, Liquefied Pure Fuel (LNG), meals and agricultural merchandise along with implementing trade-related technical help intervention to make sure commerce growth affect.

 



Continue Reading

Headlines

FBR denies giving obligation waiver for military personnel on imported vehicles

Published

on


LAHORE: The Federal Bureau of Income (FBR) has issued an announcement dismissing media hypothesis that it had issued a Statutory Regulatory Order (SRO) on Friday to exempt senior military personnel from paying duties levied on automobiles upto 6,000cc. The assertion itself was issued by Asad Tahir Jappa Chief PR/Director Media, FBR. 

The FBR’s assertion is as follows “FBR categorically denies reviews showing in some sections of media that it has issued an SRO permitting taxes and obligation free import of bullet proof automobiles. Federal Cupboard had allowed such facility in 2019 however no notification to this impact has been issued to this point.” 

Quite a few media reviews cited over the course of the previous twenty-four hours acknowledged that FBR had issued an SRO stating that “the Federal authorities is happy to exempt customs duties, gross sales tax, federal excise obligation and withholding tax on import of bullet proof automobiles falling beneath PCT Code 87.03 for Lieutenant Generals and above on retirement by the involved authorities” 

The reviews prompt that the import of two automobiles for 4 star Generals (Chairman Joint Chief of Workers Committee and Companies Chiefs) and one automobile for Lieutenant Generals had been sanctioned.

The reviews had prompt that the notification had been permitted by the Legislation Division, and that it was with the Prime Minister Secretariat awaiting imminent approval. Nonetheless, neither of the 2 had issued any assertion concerning the matter. In view of their silence and FBR’s assertion makes it doubtless that the aforementioned two have used the FBR as a conduit to dismiss the hypothesis. 

The immediate nature of the assertion is probably going because of the truth that many noticed this as a method to avoid the numerous duties and taxes that the federal government had levied on the import of vehicles as a part of its coverage to stem the outflow of overseas change.



Continue Reading

Trending

Exit mobile version