THE SCHEDULE: THE SCHEDULE

THE SCHEDULE (See section 14) Principles and the manner for payment of compensation in respect of the shares or proprietary interests of an establishment acquired by the Federal Government. 1. Where the whole or a portion of the shares of such an establishment is acquired by the Federal Government, the value of the compensation for the shares so acquired shall be assessed— (a) in the case of shares not quoted on any of the stock exchanges, at the Break Up Value; and (b) in the case of shares quoted on any of the stock exchanges, at the Break­up Value or the Market Value, whichever is less. 2. Where the whole or a portion of the proprietary interests in such an establishment is acquired by the Federal Government, the value of the compensation for the interests so acquired shall be assessed— (a) in the case of an establishment which has been in commercial production for less than 5 years, at the Net Worth Value of the proprietary interests of such establishment; and (b) in the case of an establishment which has been in commercial production for more than 5 years, at the Net Worth Value or the Times Value of the proprietary interests, whichever is less, of such establishment. 1[3. The compensation payable in accordance with the principles indicated above shall be paid by the Federal Government in cash or in the form of Government Bonds redeemable at any time at the option of the Federal Government within a period of fifteen years and carrying, with effect from the date of acquisition, a rate of interest one per cent above the bank rate as notified by the State Bank of Pakistan from time to time. The Bonds shall be negotiable and shall also be eligible as security for advances.] 4. Definitions.—In this Schedule— (a) “Break­up Value” shall mean the value of the shares of a company as determined by the auditors of such­company on the basis of its latest audited annual Balance Sheet, in accordance with clause (c) of 2[sub­rule (2) of] rule 8 of the Wealth­Tax Rules; (b) “Market Value” shall mean the average value of the shares of a company as quoted on the stock exchange nearest to the Head Office of the company on closing on the six working days prior to the date of order of acquisition of such shares under the Act, or, if, on the date of such order, dealings or business relating to such shares is prohibited under the Act, the six days prior to the date on which the dealings or Business is so prohibited; 1Subs. by the Hydrogenated Vegetable Oil Industry (Control and Development) (Amdt.) Act, 1975 (10 of 1975), s. 4, for the origional paragraph 3. 2Ins. ibid. (c) “Net Worth Value” shall mean the value of the proprietary interests of a company or other person in an establishment, which are acquired under the Act, as determined by the auditors appointed by the Federal Government on the basis of the latest annual audited balance sheet or, where no audited Balance Sheet is available, on the basis of the latest annual Balance Sheet of such establishment to be verified by the auditors appointed by the Federal Government for the purpose. The Net Worth Value shall be determined by valuing the fixed Tangible Assets appearing in the Balance Sheet at their written down values, and valuing the Current Assets e.g., stocks, inventory work in progress advances and prepayments, cash and bank balances, at their cost or market value, whichever is lower. From the sum total of the fixed and the current assets so valued as aforesaid, all the outstanding liabilities appearing in the Balance Sheet shall be deducted, thereby arriving at the Net Worth Value of the proprietary interests in such establishment; (d) “Times Value” shall mean the value of the proprietary interest of a company or other person in an establishment, where such establishment has been in commercial production for a period of not less than 5 years and shall be determined by multiplying the average net profits of the last 3 completed years on account of such an establishment by the figure 7; and (e) “Net Profits” shall mean the net profits as defined in sub­section (3) of section 87C of the Companies Act, 1913 (VII of 1913).

Effective date: 1973-01-01

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