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Name: Muhammad Shan

Semester: 3rd BBA (Hons)

Roll No.: 61

Assignment: Engro Rupiya Certificate

Subject: Money, Banking and Finance

Teacher: Sir Asif Mehmood

University of Peshawar
Engro rupiya certificates are the first retail Term Finance
Certificates (TFC) issued by Engro Corporation. These certificates were
announced and issued on 15 Oct, 2010. These certificates were issued to get
a subscription of Rs. 4 billion of which the initial amount was Rs. 2 billion.
Its last date of subscription is 15 Jan, 2011.

Investment criteria and offers:

The investment should be a minimum of Rs. 25,000 with the
increments of Rs. 5,000. This amount should be invested for a period of
three years. The company will give the investors a profit on annual basis for
their investment in these certificates. This profit includes a 2.5 % of Zakat
deduction as well as 10 % of with-holding tax (only applicable for amount
more than Rs. 150,000).
The company is offering a total profit of 14.5 % per year which will
be given in two installments in a year i.e. after every six months. For the
convenience, they are also offering any time encashment of the certificates
with a deduction of 2 % of the invested amount.

Reason for issuing Engro Rupiya Certificates:

The main reason for issuing these certificates is to meet the capital
needs of the company and for the expansion of their business activities.
Some reasons are given below:
 To meet capital needs for their working operations
 To get investment capital for investment in fertilizers, foods, power
generation and other businesses.
 Trust of investors on the company due to its good market reputation
 To encourage small investors and thus getting a fast subscription of
the targeted amount
 To avoid the high interest rates and strict loan policies of banks
 To attract the general public for investment and encouraging saving,
thus building a more solid image among them

Major partners:
Engro Corporation has partnered with 15 companies, of which there
are 11 banks and 4 other financial institutions.
The names of these partners are given as:
 Standard Chartered Bank
 MCB ltd.
 United Bank ltd.
 Habib bank ltd.
 Bank Al-Habib
 Askari bank
 Bank Alfalah
 Allied bank ltd.
 Citi bank
 JS bank
 United funds manager
 BMA financials