The Employees Old-Age Benefit Institution (EOBI) has approved a loan worth Rs 50 million for Universal Leasing Corporation (ULCL) to meet the capital adequacy requirement.
The ULCL board of directors approved the half-yearly (reviewed) un-audited accounts for the period ended December 31, 2003.
EOBI Chairman Muhammad Shafi Malik, NIC Chairman Lodhi, Slic Chairman Rasool Bakhsh Baloch, BOT Director Nazim F. Haji, EOBI Farooq A. Awan DG (Inv) EOBI, Saeed Akhtar of Apico, Muhammad Talha Querishi, chief executive officer, attended the meeting.
The company earned a net profit of Rs 6.32 million in last six months. During the period, the board approved fresh leases of Rs 35 million out of which the company disbursed Rs 2.5 million.
Muhammad Shafi Malik informed the board that EOBI has approved a subordinate loan of Rs 50 million for the company to meet the capital adequacy requirement.
He said in order to maximise gain on strategic investment of EOBI in ULCL, the investment committee had appointed a consultant to suggest various options, including sale, merger and revival of the company.
An agreement was signed with AMZ Securities after due process and consultants had already started their job. The EOBI will carefully examine each option, including retention, merger divestment, etc, and the option yielding maximum gain shall be adopted.
The EOBI chairman stressed that while consultants do their jobs, the management should try to improve recoveries, bring good business of leases and also try to improve the systems and procedures where needed.
He said efforts should be made to maximise profit to pay dividend to the shareholders at the earliest.