GO CDMA - TeleCard

our vision
To be the quality telecommunications service provider of choice using sound
business practices while enhancing the quality of life of the community and providing
a strong return for our stakeholders.
our mission
Our goal is to be the leading telecommunications service provider in the market
and to make TeleCard a name which inspires pride and confidence. We will achieve
our goal by:
Making this company a customer driven organization providing quality telecommunication
products and services which meet and exceed customer expectations.
Valuing our employees and providing a satisfying, challenging and rewarding
work environment.
Maintaining mutually beneficial relations with our business partners.
Instilling pride of ownership by becoming a financially rewarding investment for stakeholders.
being are an exemplary corporate citizen which adds value to the community.
T
o
leverage our strong position in
Pakistan’s telecommunication sector and
to be the first choice of the people.To leverage
o u r s t r o n g p o s i t i o n i n P a k i s t a n ’s
telecommunication sector and to be the first choice of
the people. To leverage our strong position in Pakistan’s
telecommunication sector and to be the first choice
of the people. To leverage our
strong
p o s i t i o n i n P a k i s t a n ’s
telecommunication sector and
to be the first choice of the
people. To leverage our strong
position in Pakistan’s telecommunication
sector and to be the first choice of the
people. To leverage our strong position in
Pakistan’s telecommunication sector and to be the first
choice of the people. To leverage our strong position in
Pakistan’s telecommunication sector and to be the first choice
of the people. To leverage our strong position in Pakistan’s
telecommunication sector and to be the first choice of the
people. To leverage our strong position in Pakistan’s telecommunication
sector and to be the first choice of the people. To leverage our strong position
in Pakistan’s telecommunication sector and to be the first choice of the people. To
leverage our strong position in Pakistan’s telecommunication sector and to be the
first choice of the people. To leverage our strong position in Pakistan’s telecommunication
sector and to be the first choice of the people. To leverage our strong position
in Pakistan’s telecommunication sector and to be the first choice of the people.
leverage our strong position in Pakistan’s telecommunication sector and to be the first
our strategy to be
The one for all
T
o
choice of the people. To
leverage our strong position in Pakistan’s telecommunication sector and
to be the first choice of the people. To leverage our strong position in Pakistan’s telecommunication
sector and to be the first choice of the people. To leverage our strong position in Pakistan’s telecommunication
sector and to be the first choice of the people. To leverage our strong position in Pakistan’s telecommunication
sector and to be the first choice of the people. To leverage our strong position in Pakistan’s
telecommunication sector and to be the first choice of the people. To leverage our
strong position in Pakistan’s telecommunication sector and to be the first choice
of the people. To leverage our strong position in Pakistan’s telecommunication
sector and to be the first choice of the people. To leverage our strong
position in Pakistan’s telecommunication sector and to be the first choice
of the people. To leverage our strong position in Pakistan’s telecommunication
sector and to be the first choice of the people. To leverage our strong position in Pakistan’s
telecommunication sector and to be the first choice of the people. To leverage our strong position
in Pakistan’s telecommunication sector and to be the first choice of the people. To leverage our
strong position
i
n
Pakistan’s telecommunication sector and to be
the first choice of the people. To leverage our
strong position in Pakistan’s telecommunication
sector and to be the first choice of the people.
eleCard
2005
Wireless Phone C
A telecom company about to
launch & technologically advan
revolutionary phone system
ection
TeleCard launches
GO CDMA
launches
CDMA
ly, friends or office.
peed internet, SMS,
are part of the service
acility would connect
rld in a seamless way.
sion Sultan-ul-Arfeen
aid, “ I feel proud as
plishment of my goal
loser as we believe
expression of life and
o make it possible. I
for this day to happen
go. I would like to
having the farsighted
egulation process that
in to the Information
e first WLL service
way.”
res and service of GO
CEO Fazal Hussain
ment of pride and
e the lead in offering
he people of Pakistan.
e in Pakistan there is
yone, with immediate
mobility, SMS, Internet
all available with one
beatable price value.
KARACHI 12 January, 2005: TeleCard
Limited the first private company to offer
integrated telecommunication solutions in
the country has launched wireless local loop
(WLL) service under the brand name of GO
CDMA at a ceremony today. Federal
Minister for Information Technology and
Telecommunications, Mr. Awais Ahmed
Khan Leghari, chief guest on the occasion
made the first call to inaugurate the service.
Also present on the occasion were Major
General (Retd.) Shezada Alam, Chairman
Pakistan Telecommunications Authority
(PTA); Mr. Sultan-ul-Arfeen, Chairman
TeleCard; Mr. Fazal Hussain, CEO
TeleCard; Mr. Shahid Firoz and Mr. Javaid
Firoz, Members Board of Directors
TeleCard. The Federal Minister and
Chairman PTA also inaugurated the new
state of the art customer sales center of GO
CDMA.
The launch of the GO CDMA WLL
service would revolutionize the way people
communicate as the quality of connectivity
is better than a normal landline and yet the
cost is the same. GO CDMA offers schemes
to suit every segment, be it a corporate level
the common man needing to be in touch
with his or her family and friends. Features
like High Speed Internet, SMS, Voice Mail
and Caller ID, are all part of the services
offered, connecting the subcribers to the
world seamlessly. Speaking on the occasion
Mr. Sultan-ul-Arfeen, Chairman TeleCard
said, “I feel proud, as today I see the
accomplishment of my goal of bringing
people closer, as we believe communication
is the expression of life and we work
endlessly to make it possible. I have waited
20 years for this day to happen and its a
long way to go. I would like to thank the
minister for having the farsighted vision to
start the deregulation process that will launch
Pakistan into the Information age. Now
TeleCard as the first WLL service provider
will lead the way.”
Highlighting the features and service of
GO CDMA TeleCard’s CEO Mr. Fazal
Hussain stated, “It’s a moment of pride and
satisfaction as we take the lead in offering
the WLL services to the people of Pakistan.
Now for the first time in Pakistan there is
truly a phone for everyone, with immediate
connection, wireless mobility, SMS, internet
access and a whole lot more, all available
with one connection at an unbeatable value”.
The architecture and functionality of
GO CDMA’s network is dynamic to keep
pace with the evolution of technology in
the future. The changing paradigm in the
telecom sector would not only connect
people but also improve the quality of life,
develop intellectual capital, enhance
productivity, create new businesses, build
partnerships and launch Pakistan into the
information age.
TeleCard Annual Report
TeleCard
GO C
KARACHI 12 Janu
Limited the first priv
an Integrated telecom
in the country has lau
loop (WLL) service u
of GO CDMA at a cer
Minister for Informa
Telecommunications
Leghari, Chief Guest
the first call to inaugu
present on the occasio
(Retd.) Shezada Alam
elecommunications Au
ul-Arfeen, Chairm
Hussain, CEO Tele
Member Board o
Javaid Firoz, Membe
Telecard. The Fed
Chairman PTA also
state of the art custom
CDMA.
The launch of th
service would Revolut
communicate as the q
is better than normal
is the same. GO CDM
suit every pocket, be it
or the common man n
with his or her fami
Features like high s
Voice mail, caller id,
offering. The WLL fa
subscribers to the wor
Speaking on the occa
Chairman Telecard s
today I see the accom
of bringing people c
communication is the
we work endlessly to
have waited 20 years
and its along way to
thank the minister for
vision to start the dere
will Launch Pakistan
age. Telecard as the
provider will lead the
TeleCard
2005
ard carries on the
on of innovation
ns of satisfied customers
ciate services
ection
TeleCard Annual Report
Sources have reveal
deployed State-of-the
Network, comprising
deliver the most advan
services in the region.
MPLS backbone over
it a leadership position
in enabling TeleCard
solutions to its custome
allow TeleCard to reduc
compared to the tr
TeleCard launches
next generation LDI service
ed that TeleCard has
-Art, Next Generation
of at least 20 POPs to
nced solutions for LDI
TeleCard’s use of IPOptical Fiber will give
and will be a key asset
o deliver best in class
mers. The architecture
reduce the cost by up
e traditional networks.
advanced NGN defines
become an integrated
tions provider of choice
mer and inter-carrier
o the traditional long
y services, the TeleCard
ll be able to offer to
s and services including
ons, SwitchLess Resale,
Rate services, Closed
s, Conferencing, Secure
ervices, collect calling,
international travelers
tomizable products and
tual Service Providers,
g companies, domestic
rriers, Call Centers,
Hotels, Banks, Airlines,
n companies and others.
he revolution and has
estment in leading edge
mbled an internationally
management team of
ts transformation from
networking operator to
ational integrated
vice provider of choice
of products and services
backed by world class
ed on the Pakistan Stock
leading private sector
KARACHI April 02, 2005: It has been reliably learnt that TeleCard Ltd,
(TCL) the leading national telecommunications service provider is set to
launch its Long Distance and International (LDI) calling services in the
country following the successful commencement of GO CDMA wireless
local loop network (WLL).
Sources have revealed that TeleCard has
deployed a state-of-the-art Next Generation
Network, comprising of atleast 20 POPs to
deliver the most advanced solutions for LDI
services in the region. TeleCard’s use of IPMPLS backbone over Optical Fiber will
give it a leading position and will be a key
asset in enabling TeleCard to deliver world
class solutions to its customers. The
architecture will allow TeleCard to reduce
the cost upto 80% as compared to the
traditional networks.
The deployment of an advanced NGN
defines TeleCard’s vision to become an
integrated telecommunication solutions
provider of choice for the corporate,
consumer and inter-carrier markets. In
addition to the traditional long distance
voice telephony services, the TeleCard LDI
infrastructure will be able offer to specialized
applications and services including Virtual
Network Operations, Switch Less Resale,
Toll Free and Premium Rate services, Closed
User Group applications, Conferencing,
Secure Networks, On-Demand services,
Collect Calling, Follow-Me services for
international travelers and a range of other
customizable products and services catering
to Virtual Service Providers, Calling Card
marketing companies, domestic and
international carriers, call centers, payphone
companies, hotels, banks, airlines, logistics
and distribution companies; etc.
TeleCard has started the revolution and
has made considerable investment in
leading-edge technology and has assembled
an internationally recognized executive
management team of professionals to steer
its transformation from a payphone and data
networking operator to the leading national
integrated telecommunications service
provider of choice with an extensive
portfolio of products and services catering
to all markets and backed by world class
customer services.
TeleCard Limited, listed on the
Pakistan’s stock exchanges, is the leading
private sector telecom service provider and
is licensed for all telecommunications and
Wireless Local Loop services in all 14
telecom regions of the country.
The deployment of an
TeleCard’s vision to
telecommunication solu
for corporate, consu
markets. In addition t
distance voice telephon
LDI infrastructure w
specialized applications
Virtual Network Operati
Toll free and Premium
User Group application
networks, on demand s
follow-me services for
and a range of other cus
services catering to Vir
Calling Card marketin
and international ca
Payphone companies, H
Logistics and distributio
TeleCard has started t
made considerable inve
technology and has asse
recognized executive
professionals to steer it
payphones and data ne
the
leading,
na
telecommunication ser
with extensive portfolio
catering to all markets;
customer services.
TeleCard
2005
e
omers
TeleCard Annual Report 2005
“TeleCard creating opportunities for micro
businesses and alleviation of poverty”
KARACHI, September 2005:
foundation for mass communications has
“TeleCard is creating opportunities for
been laid and it is only a matter of time when
setting up micro businesses by providing
a large proportion of people become
Public Call Office (PCO) access to rural
empowered communication wise. Mr. Fazal
Pakistan as well as low income households
Hussain was also of the view that the trends
allowing for alleviation of poverty”, said
indicate that gradually landlines would be
Mr. Fazal Hussain, Group CEO TeleCard
replaced with wireless devices, there will be
at a PTA Forum recently.
continuous enhancements in voice and data
He stated that TeleCard by giving
capability along with free Broadband Internet
access to the rural poor and
Access and introduction of 3G technology.
households will facilitate its increase to
The common denominator behind all these
100 people to 1 PCO and provide earnings
revolutionary developments is the Wireless
of Rs. 5,000 per household. The company’s
Local Loop (WLL) acting as a catalyst.
plans for PCO evolution means rural
Whilst giving an insight into the future of
communication centers 200K broadband
telecommunications Mr. Fazal said personal
enabled telephones. Similar facilities may
information services, entertainment services,
be provided to schools and hospitals- for
multimedia teleconferencing, enhanced
less than US$ 200 each. Such developments
voicemail services, basic and enhanced voice,
will exponentially improve GNP and
multimedia content delivery, video streaming
productivity of Pakistan he said.
services, specialized information services,
He also stated that the telecom
e-commerce applications, location based
market trends were very dynamic, which
services, web based service orders, Data
are enabling the Teledensity to grow at an
Backup/Recovery Services, Voice Over IP
extremely fast pace. Furthermore, rates are
Services, Text to Voice services, Multimedia
being reduced drastically as calls today to
Bridging services. would all be the norm
United Kingdom cost less than those to
and readily available just SMS, MMS and
Lahore. He envisaged that during the course
GPRS are available currently. He also
of
the
cautioned that when computing various
telecommunications sector would start to
industry benchmarks, care must be taken in
consolidate. Furthermore, the
order to retain correct perspective as well as
PCO
the
next
six
months
or households. Mr. Fazal Hussain concluded
by saying that with the support of the
Government, TeleCard can do a great deal
more to alleviate poverty. Through MicroLevel Credit for people who have no source
of income and want to earn a decent living
it is possible. Also it is possible that with
the help of the Government all the schools
and hospitals may be internet enabled and
connect our next generation to the world.
He said that TeleCard would like to setup
small community centers where the voice
avoid confusion. For instance, he explained
and data services are available for the people
that Teledensity measures number of
at an extremely affordable cost, which will
terminals and not Teleaccess, or like in the
allow Pakistan to leapfrog other countries
mobile sphere the number of SIM cards are
in the development race.
being counted and not the subscribers
arries on the
innovation
atisfied customers
services
hi, Pakistan,
o Networks,
vider serving
countries,
NET Limited,
perator and
akistan, has
broadband
and is in the
n Lahore and
owned by
n’s leading
e provider.
-powered 3.5
be used to
nectivity for
to enhance
y across the
t amount of
in our quest
y, and most
m available
market, said
of Telecard
ess, Aperto’s
hands down
of service,
-- attributes
n excellent
customers
as surpassed
n Malik CEO
ommitted to
mmunications
al standards
ese are some
nabled us to
provider of
eet business
munications
TeleCard
2005
TeleCard Annual Report 2
Largest Pakistani ISP
SUPERNET Deploys Aperto
Network in Karachi
Milpitas, Calif, and Karachi, Pakistan,
September 30th, 2005 – Aperto Networks,
a leading WiMAX systems provider serving
over 200 operators in 65 countries,
announced today that SUPERNET Limited,
the largest Data Network Operator and
Internet Service Provider in Pakistan, has
deployed its PacketWave broadband wireless
systems in Karachi and is in the process of
deploying systems in Lahore and Islamabad
as well. SUPERNET is owned by TeleCard
Limited, Pakistan’s leading integrated
telecommunications service provider.
SUPERNET’s PacketWave-powered 3.5
GHz wireless network will be used to
provide high-speed data connectivity for
enterprises and banks and to enhance
SUPERNET’s service delivery across the
major urban areas in Pakistan.
“We invested a significant amount of
time, energy and due diligence in our quest
to secure the highest quality and most
flexible and feature-rich system available
on the wireless broadband market said
Mr. Fazal Hussain, Group CEO of Telecard
Limited. “At the end of the process, Aperto’s
PacketWave system was the hands down
favorite in terms of quality of service,
scalability, and functionality attributes that
are vital in delivering an excellent service
and in keeping our customers satisfied.
Aperto Network has surpassed our
expectations.”
Speaking on the occasion Mr. Imran Malik,
CEO SUPERNET said, “SUPERNET is
committed to providing cutting edge data
communication solutions and making
international standards as local industry
benchmarks. These are some of the major
factors that have enabled us to become the
leading service provider of solutions that
effectively meet the business community's
data and telecommunications requirements.”
“We were delighted to have been
selected by Pakistan’s leading telecom
service providers and we commend the
TeleCard/SUPERNET leadership team for
their unbridled desire to introduce leadingedge technology to the Pakistani marketplace
and for their enthusiastic commitment to
enhance their company’s scope of services
to better serve their customer’s evolving
needs”, remarked Dr. Reza Ahy, Chairman
and CEO of Aperto Networks.
About SUPERNET
SUPERNET Limited, a subsidiary of
TeleCard Limited, is the largest private
sector Data Network Operator in Pakistan.
Founded in 1994, it provides internet
access, Point-to-Point and Point-toMultipoint communication services using
radio and satellite access and integration
solutions.
Milpitas, Calif., an
September 30th, 2005
a leading WiMAX syst
over 200 operators
announced today that S
the largest Data Net
Internet Service Provi
deployed its PacketWav
systems in Karachi, an
deploying systems in L
SUPERNET is owned b
Pakistan’s leading integ
provider.
SUPERNET’s Pack
GHz wireless netwo
provide high-speed d
enterprises and bank
SUPERNET’s service
major urban areas in P
“We invested a sig
time, energy and due d
to secure the highest
flexible and feature-ri
on the wireless broadba
Hussain, Group CEO
“At the end of the
PacketWave system w
favorite in terms of
scalability, and functi
that are vital in deliv
service and in keep
satisfied. Aperto Netw
our expectations.”
Speaking on the occasio
Supernet said, “Super
providing cutting edge
solutions and make int
local industry benchma
of the major factors tha
become the leading s
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012
contents
01
02
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13
Company Information
Notice of Annual General Meeting
Director's Report to the Members
Six Year Financial Summary
Statement of Compliance With the Code of
Corporate Governance
Auditor’s Review Report on Statement of
Compliance With the Code of Corporate Governance
Auditor's Report to the Members (on Company’s Financial
Statements)
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Statements of Changes in Equity
Notes to the Financial Statements
Auditor's Report to the Members (on Consolidated
Financial Statements)
Consolidated Balance Sheet
Consolidated Profit and Loss Account
Consolidated Cash Flow Statement
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
Pattern of Shareholding
Form of Proxy
34
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16
17
19
20
21
22
52
53
55
56
57
58
92
95
89
company information
Board of Directors
Mr. Sultan-ul-Arfeen (Chairman)
Mr. Shahid Firoz
Mr. Javaid Firoz
Mr. Bo Ericsson
Mr. Peregrine Moncreiffe
Mr. Aamir Niazi
Syed Nizam Ahmed Shah
Board Audit Committee
Mr. Sultan-ul-Arfeen (Chairman)
Mr. Javaid Firoz
Mr. Aamir Niazi
Chief Executive Officer
Mr. Fazal Hussain
Chief Financial Officer
Mr. Haroon Iqbal
Company Secretary
Mr. Habib A. Farooqi
External Auditors
M/s Ford Rhodes Sidat Hyder & Co.
Legal Advisor
Mohsin Tayebally & Co.
Banks
Union Bank Ltd.
Faysal Bank Ltd.
National Bank of Pakistan
Pak Oman Investment Company Ltd.
Orix Investment Bank Ltd.
Registered Office
3rd Floor, World Trade Center, 75 East Blue Area,
Fazal-ul-Haq Road, Islamabad, Pakistan.
Corporate Office
7th Floor, World Trade Center, 10-Khayaban-e-Roomi,
Clifton, Karachi, Pakistan.
02
Notice of Annual General Meeting
Notice is hereby given that the 12th Annual General Meeting of the Company will be held on
Tuesday November 15, 2005 at 10. am ,at 3rd Floor 75, East Blue Area , Fazal Ul Haq Road,
Islamabad to transact the following business.
Ordinary Business:
1. To confirm the minutes of last Annual General Meeting held on October 29, 2004.
2. To receive, consider and adopt the Audited Accounts of the Company for the year ended
June 30 , 2005 together with the Directors’ and Auditors’ report thereon.
3. To appoint Auditors of the Company and fix their remuneration.
Present Auditors M/s Ford Rhodes Sidat Hyder & Company –Chartered Accountants are retiring
and being eligible, offer themselves for re-appointment.
Special Business:
1. To alter clause 60 of Articles of Association of the Company by passing Special Resolution.
The number of Directors shall be changed from 7 to 9, and the Article clause 60 to read as
follows:
Article 60 of article of association of the company
The number of Directors shall be fixed from time to time by the Board, subject to the condition
that there shall not be less than 7 and not more than 9 directors, and until otherwise determined
by the Company in a general meeting the number of Directors shall be 7. The subscribers to
the Memorandum Of Association & Articles shall be the first Directors of the company
4. To transact any other business with the permission of the Chair.
By order of the Board
Habib A. Farooqi
Company Secretary Islamabad
October 25 , 2005
annual report 2005
Notes:
1. The share transfer book of the Company shall remain closed from November 9, 2005 to November 15, 2005 (Both
days inclusive).
2. A member of Company entitled to attend and vote may appoint another member as his / her proxy to attend and vote
instead of him / her. Proxy in-order must be received at the Registered Office of the Company not less than 48 hours
before the time of holding Annual General Meeting.
3. The members are requested to communicate with the Company of any change in their address.
director’s report
The Board of Directors of TeleCard
Limited are pleased to present the
Financial Statements and review of your
company’s performance for the year
ended June 30, 2005.
Mr. Sultan-ul-Arfeen, Chairman
the right investments
“Scaling up to meet the demands of our tremendous growth
opportunities is a multi-faceted challenge. It touches every
part of our business and every process we have.”
Review of Current Operations
The company has been able to achieve
enormous growth, posting an increase
in sales by 47% to Rs. 2,416 million from
Rs. 1,649 million last year. The sales
have shown their continuous increasing
trend, Gross Profit jumped by 99%
to Rs. 830 million from Rs. 443 million and Profit After Tax increased by 96% to
Rs. 244 million from Rs. 124 from last year. The EBITDA increased to 34% from
23% last year.
04
211
157
111
115
115
757
716
543
1,084
1,649
447
2,416
director’s report
2000 2001 2002 2003 2004 2005
2000 2001 2002 2003 2004 2005
Sales Rs. in millions
Admin. Exp. Rs in millions
Sales would have been much higher if there
of becoming the most technologically advanced
had not been delay a in awarding licenses.
integrated telecom solution provider as well as
This resulted in a delay as operations could
the alternate service provider in the country.
not be launched before the new license was
This will enable the company to provide its
issued. The increase in expense is mainly due
customers all the telecom services via an
to the fact that the company made massive
integrated and seamless process. The company
infrastructure investment to launch new services
has successfully achieved the financial closure
and rapidly expanded the network. This resulted
and raised funds of Rs. 4,400 million through
in increased depreciation charge, costs relating
a combination of Rs. 2,400 million debt and
to sites, provision of media charges,
Rs. 2,000 million equity.
3,689
administrative expenses, investment in brand
development and one time charges relating to
1,445
raising of debt and equity. These are investment
2000 2001 2002 2003 2004 2005
GP Rs. in millions
It is a great comfort to inform the share holders
820
269
2000 2001 2002 2003 2004 2005
Equity Rs. in millions
Regulation
The deregulation process in Pakistan has
provided a level playing field for the entire
Telecom sector to compete in an arena where
the fittest survive. TeleCard along with other
that your company has successfully launched
telecom operators and CDMA Development
it’s Wireless Local Loop, LDI and Broadband
group initiated building awareness of CDMA
Wireless Access (BWA) services all over the
technology, giving an ideal platform to all the
country and has made the dream come true
operators in the industry. As a regulator PTA
annual report 2005
412
354
288
264
178
830
219
by the company in the forthcoming years.
635
costs and the benefit of these will be reaped
244
05
director’s report
Net Profit 9%
Tax 7%
124
183
119
77
27
Fin. Cgs 4%
2000 2001 2002 2003 2004 2005
Profit After Tax Rs. in millions
COS 58%
Admin. Exp 16%
Other Income 6%
Revenue Breakup
should have taken the lead in providing an
Future Prospects
equal opportunity to WLL operators and
TeleCard is very well placed to take first mover
initiating the policies. PTA should drive the
advantage as an innovator and in fact is seen
procedures that would result in the benefit of
as the leader in its chosen segments. The main
both - the consumers and the investors. PTA
strategy has been to focus on high value
should ensure that investments made by the
segments, acquiring and retaining high quality
WLL operators are secured and the business
customers providing them with high ARPU in
module remains viable for all the operators.
the long term. Your company was the first to
launch WLL from the Karachi region in January
The government has given an initial moratorium
2005, with the GO CDMA brand. With the
by deferring the payment of spectrum and
grace of Allah, the GO CDMA brand has
subsequent staggering over the license term,
become one of the most recognized brands
to the cellular operators. The WLL operators
in the country within a span of a few months.
have requested for a level playing field by giving
The Company’s strategy to adopt CDMA as
a similar treatment to the WLL operators. The
its choice of technology for its already
WLL operators have already paid fifty percent
established WLL network contributes to
spectrum charges and have made
TeleCard’s unique positioning in the sector. The
representations to the relevant departments,
following points highlight and give an overview
in this regard. As huge investments are involved,
of TeleCard’s strategic positioning and
this concession will allow the company to go
aggressive rollout plan:
for aggressive rollout. This would result in
acquiring subscribers, giving low cost telephony
to the customers and increasing the teledensity
a2nual report 2005
in the country.
TeleCard Limited already has the largest wireless
infrastructure on the ground spread all over
Pakistan
Equivalent to around 1.2 M subscribers the
company has acquired an initial subscriber
base which generates relatively higher revenue
as compared to the industry average.
With the launch of WLL under the new regime,
TeleCard’s moving forward strategy is:
we have been able to increase the margins
To be the largest WLL player in the market with
rapidly by converting our existing base to the
200k PCO and 0.5M residential subscribers by
new regime and aggressively acquiring high
the next year
ARPU (Average Revenue Per User) PCO
To have the largest wireless networks in the
customers. In addition we are offering wholesale
country
services to Virtual Network Operators which
To implement the Long Distance and
has resulted in very fast growth.
International business with a primary focus on
We have built up a strong management team
captive traffic generated by the group companies
of fully trained professionals in all departments
To emerge as the truly integrated telecom
in addition to the nationwide Operations and
solution provider of the country
06
director’s report
Maintenance Team who have many years of
170
experience of installing and running a CDMA
135
network in the country and
100
Strategic relationships with vendors are in place
with the biggest CDMA manufactures in the
world such as Lucent Technologies and ZTE
22
Corporation
The company is committed to enhance its
market leadership in the telecom sector of
Pakistan. The Company aims to increase its
wireless subscriber’s base to 1 million in the
next two years with a total increase to a
minimum of 2 million subscribers over the
coming five year period.
itself as the number one alternative telecom
services provider and a leading
telecommunications multi-services operator,
share of the PCO market. The deregulation of
telecom market in Pakistan offers ample
150,000
opportunities to players with existing operations
100,000
Wireless
Wireline
TCL not only has the requisite experience but
also a sound track record which will reduce
the exposure of its investments and new lenders
annual report 2005
and significant experience of the local market.
50,000
2001 2002 2003 2004 2005
No. of Subscribers
TeleCard has been successful in positioning
and also has been able to take the largest
200,000
0
Jun 03 Jun 04 Jun 05 Target
Stations Covered
285
56
135
225
500
07
director’s report
Jun 03 Dec. 04 Jun 04 Jun 05 Target
Cell Sites
i.e., residential, corporate, payphones, internet,
data communications, etc. and can benefit
from synergies and cross selling in the
deregulated market.
Long Distance and International business has
been successfully been implemented, which
who wish to invest in the wake of these
attractive new opportunities.
is the third biggest LDI operation in the country,
with a primary focus on captive traffic generated
by TeleCard’s own retail customers as well as
TeleCard’s strategy for the future and
implementation program is:
by Instaphone and Paktel having a preferential
To be an integrated telecom service provider
relationship.
in the market. The company is committed to
consolidate and maintain its market leadership
in the telecom sector of Pakistan. Currently
TeleCard has a subscriber base which is
generating traffic equivalent to almost 1.4 million
cellular subscribers. The company aims to
aggressively increase its wireless subscriber’s
base to 1 million in the next two years and set
Opening of an International TeleCard office in
London is yet another step showcasing the
long sighted management vision of emerging
as the leading solution providers of the country.
The idea is to setup a wholesale office which
can provide better value for the LDI customers
in Pakistan
a target to achieve more than 2 million
Associated Company
subscribers over the next five year period.
Supernet, the wholly owned subsidiary of
annual report 2005
TeleCard is showing a continued improvement
TeleCard has a number of advantages over
in performance and increasing customer base.
other potential new entrants. TeleCard has
It was the management’s strategic decision to
been able to leverage its existing ForeeFone
make the long term investment and the
brand in the PCO segment, develop a
management feels that with the closer
wholesale business unit selling to other
integration, there will be tremendous
operators and to establish a strong GO CDMA
opportunities to leverage synergies. This will
brand in the WLL segment. TeleCard has many
open new avenues for the company in the post
years of operational experience of running a
deregulation environment including leveraging
CDMA network. It has a presence in all
the existing customer base of Supernet in the
segments of the telecom sector in Pakistan,
corporate sector and reselling of Internet and
BWA services. The launching of BWA and
08
director’s report
1 The financial statements prepared by the
Broadband Internet recognizes the synergies
management of TeleCard Limited presents
provided by Supernet and justifies the
fairly its state of affairs, the results of its
investment made in the subsidiary company.
operations, cash flows and changes in equity.
2 Proper books of accounts of TeleCard Limited
PTCL Suit
Government of Pakistan awarded a relief
have been maintained.
3 Appropriate accounting policies have been
package to the payphone companies operating
consistently applied in preparation of financial
in Karachi against the Karachi closure in 1995
statements and accounting estimates are
and 1996. PTCL started paying TeleCard the
based on reasonable and prudent judgment.
relief rebate starting from Jan. 1997 as per the
4 International Accounting Standards, as
award of GOP. In the year 1998 PTCL
applicable in Pakistan, have been followed
unilaterally stopped paying the rebate.
in preparation of financial statements.
The company filed a suit in Jan. 2000 against
5 The system of internal control is sound in
the decision of PTCL, as all the efforts to
design and has been effectively implemented
convince PTCL to resume paying the relief
and monitored.
rebate failed. Subsequent to that the Honorable
High Court of Sindh appointed AF Fergusons
to calculate the liability of PTCL. It is expected
6 There are no doubts at all upon TeleCard’s
ability to continue as a going concern.
7 There has been no material departure from
that the suit will be decided within the next
the best practices of Corporate Governance
financial year, which will be in the favor of the
as detailed in the listing regulations.
company “Inshahallah”.
Other Information
Transfer Pricing
1 Key operating and financial data for last six
The company has fully complied with the best
years in summarized form is given on page
practices on transfer pricing as contained in
number 10
the listing regulations of the Stock Exchanges.
2 There are no statutory payments on account
of taxes, duties, levies and charges, which
The Directors confirm compliance with the
corporate and financial framework of the code
of corporate governance for the following:
are outstanding and have not been disclosed
in the Financial Statements.
annual report 2005
Directors Declaration on Corporate and
Financial reporting Framework
09
director’s report
During the year, six Board of Directors meetings were held and attended as follows:
Name of Director
No. of
Meetings Attended
Name of Director
No. of
Meetings Attended
Mr. Sultan-ul-Arfeen
6
Mr. Aamir Niazi
2
Mr. Shahid Firoz
6
Mr. Nizam Shah
1
Mr. Khalid Firoz
5
Mr. Bo Ericsson
1
Mr. Javaid Firoz
6
Mr. Peregrine Moncreiffe 1
Total resolution by circulation made by the Company 26
During the financial year the trading in shares of the company by the Directors, CEO, and their
spouses is as follows:
Directors,
CEO and
Their spouses
Sultan-ul-Arfeen
Shahid Firoz
Javaid Firoz
Samina Shahid
Nausheen Javaid
Nighat Sultana
Aamir Niazi
Bo Ericsson
Opening
Balance
01.07.2004
Right Shares
subscribed
Closing
Balance
30.06.2005
925,346
841,106
892,265
150,000
150,000
128,000
1,901,106
1,732,536
1,846,853
300,000
300,000
210,000
500
10,000
2,826,362
2,573,642
2,745,118
450,000
450,000
338,000
500
10,000
Consolidate Financial Statements
Consolidate Financial Statements of the company as on June 30, 2005 are annexed.
Staff
extended by them in all the areas and all the
I would like to put on record the appreciation
financial institutions, banks and leasing
for all the staff whose dedication and hard work
companies in showing confidence in the
has resulted in achieving the aggressive plans
company and the management.
annual report 2005
of the company and putting the company on
the right path to success. Without their tiring
Dividend
efforts this would not have been possible and
Keeping in view heavy expansions under taken
I personally would like to thank them.
by the company, the BOD decided not to pay
any dividends during the current year.
General
I would like to thank MOITT, PTA, PTCL, other
operators, and suppliers for the cooperation
10
director’s report
Auditors
The present auditors, Ford Rhodes Sidat Hyder & Co Chartered Accountants, retire and being
eligible, offer themselves for re-appointment.
Pattern of Shareholding
The pattern of shareholding as on June 30, 2005 is shown on page number 92
On behalf of the Board
October 14, 2005
Fazal Hussain
Chief Executive
Six Year Financial Summary
Telecard Limited Profit And Loss Account
Financial Analysis
(Rs. in thousands)
Financial charges
Net profit before taxation
Taxation
Net profit after taxation
Accumulated Profit
/(loss) b f
Appropriation:
Proposed Dividend @
Rs. Nil (2001: Rs.1.00)
per Ordinary share of
Rs. 10 each
Accumulated Profit
carried forward
EPS (Rupees)
June
2004
June
2003
June
2002
June
2001
June
2000
2,416,304
1,585,894
830,410
1,649,193
1,37,440
411,753
1,083,878
730,311
353,566
757,646
469,338
288,307
715,774
451,498
264,276
543,377
365,631
177,746
446,658
383,752
160,019
543,771
111,673
432,098
187,758
244,340
211,172
200,580
26,626
227,207
46,482
180,724
56,376
124,348
157,161
196,404
17,744
214,148
20,554
193,593
10,950
182,643
111,305
177,001
9,114
186,116
30,213
155,902
37,202
118,699
114,646
149,629
7,554
157,183
37,674
119,508
43,890
75,618
115,065
62,680
3,011
65,692
35,909
29,783
2,750
27,032
444,841
320,4921
444,841
37,849
320,492
19,150
137,849
(31,468)
44,150
(58,501)
(31,468)
-
-
-
-
25,000
689,181
444,841
320,492
137,849
19,150
(31,468)
1.13
1.27
2.65
3.94
3.02
1.08
annual report 2005
Sales
Cost of sales
Gross profit
Administrative and
selling expenses
Operating profit
Other income
June
2005
company’s financial statements
consolidated financial statements
95
Form of Proxy
I/We _______________________S/o____________________________________________________
of ________________being a member of TeleCard Limited and holding ______________________
ordinary shares as per Share Register Folio No : ______________and/or CDC participant I.D.
No_____________ and Sub-Account No ___________________________________hereby appoint
_______________________of _____________________ or failing him ___________________________of
_____________________ as my proxy to vote for me and on my behalf at the Annual General
Meeting of the Company to be held on Tuesday November 15, 2005 at 10:00 a.m. at 3rd Floor,
World Trade Centre, 75-East Blue Area , Fazal-ul-Haq Road, Islamabad. Pakistan and at any
adjournment thereof.
Signed this __________ day of _______________ 2005.
Witness 1
Signature: _________________________________
Name : ____________________________________
Address: __________________________________
NIC or ____________________________________
Signature on
rupees five
revenue
stamp
Passport No _______________________________
Witness 2
Signature: _________________________________
Name : ____________________________________
Address: __________________________________
NIC or ____________________________________
The Signature should
agree with the specimen registered
with the Company.
Passport No _______________________________
annual report 2005
Note:
Proxies in order to be effective, must be received at the Company’s Registered Office not less than 48 hours before the
meeting. No person shall be appointed a proxy who is not a member of the Company qualified to vote except that a
corporation being a member may appoint as proxy a person who is not a member.
CDC Shareholders and their Proxies are each requested to attach an attested photocopy of their National Identity Card
or Passport with this proxy from before submission to the Company.