For business information, annual reports, laws, ordinances, regulations and articles.

	Web Paksearch.com

ORIX INVESTMENT BANK PAKISTAN LIMITED.
Contents
Company Information
Notice Of Meeting
Report of the Directo's & Chairman's Review
Auditor's Report to the Members
Statement Of Commpliance
Balance Sheet
Profit & Loss Account
Cash Flow Statement
Statement of changes in Equity
Notes to the Accounts
Pattern of Shareholding
Company Information
Board of Directors
Mr. Kunwar idris		Chairman
Mr.Yoshio Ono
Mr.Nagaaki Esaki
Mr. Benjamin Lee
Mr.Humayun Murad
Mr. Muhammad Rashid Zahir
Mr.Fahim Ahmed
Mr. Nairn Farooqui		Managing  Director & Chief Executive
Company Secretary
Mr.lntisar H.AIvi
Bankers
American Express Bank Limited
Habib Bank Limited
Mashreq Bankpsc
Muslim Commercial Bank Limited
Oman International Bank S.A.O.G .
Prime Commercial Bank Limited
Standard Chartered Bank
Standard Chartered Grindlays Bank Limited
The Bank of Tokyo - Mitsubishi Limited
Auditors
Sidat Hyder Qamar & Co., Chartered Accountants
Legal Advisors
Mohsin Tayebaly & Co.
Mandviwalla &Zafar
Registrar and Share Transfer Office
Noble Computer Services (Pvt) Limited,
14, BangloreTown Housing Society,
Shahrae Faisal, Karachi.
Tel: (021)4546978
Fax:(021)4314962
Registered Office
Overseas Investors Chamber of Commerce Building,
Talpur Road, Karachi - 74000, Pakistan.
Tel: (021) 2426020-9, UAN: 111 -24-24-24, Fax: (021') 2425897
Head Office
2nd Floor, Islamic Chamber of Commerce Building,
ST 2/A, Block # 9, Clifton, Karachi - 75600, Pakistan.
Tel: (021) 5861266 Fax: (021) 5868862
Audit Committee
Mr. Kunwar Idris
Mr.Humayun Murad
Mr.Fahim Ahmed
Mr. Nairn Farooqui
Notice of Meeting
Notice is hereby given that the Seventh Annual General Meeting of the shareholders of ORIX INVESTMENT BANK
PAKISTAN LIMITED will be held at 10:00 a.m. on Wednesday, 23 October, 2002 at Overseas Investors Chamber of
Commerce Building, Talpur Road, Karachi, to transact the following business:
Ordinary Business:
1. To receive, consider and adopt the audited financial statements together with the Directors' and Auditors'
reports for the year ended 30 June, 2002.
2. To approve the payment of cash dividend to the shareholders at the rate of Rs. 1.50 per share of Rs. 10/-each
for the year ended 30 June, 2002.
3. To appoint auditors and fix their remuneration for the year ending 30 June, 2002. The present Auditors,
Sidat Hyder Qamar & Co., Chartered Accountants, retire and being eligble, offer themselves for re-appointment.
4. To elect 8 Directors of the Company as fixed by the Board of Directors for a period of three years under section
178 of the Companies Ordinance, 1984.
The present Directors who will be retiring are :
1. Mr. Kunwar Idris
2. Mr.YoshioOno
3. Mr.Nagaaki Esaki
4. Mr. Benjamin Lee
5. Mr.Humayun Murad
6. Mr. Muhammad Rashid Zahir
7. Mr. Fahim Ahmed
8. Mr. Nairn Farooqui
Special Business:
1. To approve increase in Authorised Capital of the Company to Rs.500 million.
2. To consider any other business with the premission of the Chair.
By Order of the Board
Karachi: 26 September, 2002
Intisar H.AIvi
Company Secretary
NOTES:
1. The Members' Register will remain closed form 16 October, 2002 to 23 October, 2002 (both days inclusive).
Transfers received in order at the office of the share registrar of the Company by the close of business on
15 October, 2002 will be treated in time for the entitlement of dividend payment and issue of right shares.
2. A Member entitled to attend and vote at the General Meeting of Members is entitled to appoint a proxy to
attend and vote on his/her behalf. A proxy need not be a Member of the Company.
3. The instrument appointing a proxy and the power of attorney of other authority, under which it is signed or a
notarially certified copy of the power of attorney must be deposited at the office of Share Registrar of the
Company, Noble Computer Services (Pvt) Ltd., 14,BangloreTown Housing Society, Main Shahrae Faisal, Karachi
at least 48 hours before the meeting. A form of proxy is enclosed.
Notice of Meeting
4. Any individual Beneficial Owner of the Central Depository Company, entitled to vote at this meeting must
bring his/her National Identity Card with him/her as proof of his/her identity, and in case of proxy, must enclose
an attested copy of his/her National Identity Card. Representative of the corporate members should bring the
usual documents required for such purposes.
5. -Shareholders are requested to notify any change in their addresses immediately.
Statement pertaining to Special Business and Related Draft Resolution
Under Section 160 (1) (b) of the Companies Ordinance, 1984:
Increase in Authorised Capital and amendment in Memorandum and Articles of Association:
The shareholders'approval is required for the increase in Authorised Capital and amendment in Memorandum and
Articles of Association of the Company, as recommended by the Directors, and in this regard to pass the following
Special Resolution:
" Resolved that the authorised capital of the Company be and is hereby
increased from Rs. 300,000,000 (Rupees three hundred million only) divided
into 30,000,000 (thirty million) ordinary shares of Rs. 10/- (Rupees ten) each
to Rs. 500,000,000 (Rupees five hundred million only) divided into 50,000,000
(fifty million) ordinary shares of Rs. 10/- (Rupees ten) each and in that
connection the figures "Rupees 300,000,000 (Rupees three hundred million
only) divided into 30,000,000 (thirty million) shares" be substituted for the
figures "Rs. 500,000,000 (Rupees five hundred million only) divided into
50,000,000 (fifty million) shares" respectively appearing in clause VI of the
Memorandum and Articles of Association of the Company"
Report of the Directors'& Chairman's Review
The Directors are pleased to present the Seventh Annual Report together with the audited accounts of the bank
for the fiscal year ended June 30,2002.
Financial Highlights		Rupees
Gross Revenue		459,016,367
Profit for the year after expenses and allowances for potential losses		71,998,946
Less: Taxation		25,078,939
Profit after taxation		46,920,007
Total Assets		1,848,838,637
Earnings Per Share	Rs.	2.35
Dividend
The Directors propose a dividend of 15% for the year ended June 30,2002.
Business Environment
The year under review presented new opportunities with matching challenges. The national economic
indicators witnessed a substantial improvement. The GDP growth was 3.5%, exceeding the revised target of
3.3% and just 2.6% in the previous year. Pakistan's economic credibility rose with the successful completion of
an IMF assistance programme, increased remittances and other capital inflows, low inflation, strengthening of
the rupee and an expansionary monetary policy. Thus, on the back of consistent government policies and
overall improvement in the fundamentals, the outlook for Pakistan's economy appears promising.
Company Performance
The Bank has been able to significantly increase its profit over last year by following a risk averse approach. All
the budgeted targets were exceeded by the painstaking efforts of the staff.
The Bank completed a number of advisory assignments relating to syndications and capital market
transactions.The trusteeship fee earned on TFC issues also generated income.The Bank during the year started
the Money Market and Foreign Exchange Brokerage Business on a promising note.
The pre-tax profit went up to Rs. 72 million from the previous years' Rs. 41.49 million and after tax profit to
Rs.46.92 million from Rs. 28.19 million in 2000-2001.The gross revenues increased to Rs. 459 million from Rs.322
million, an increase of 43%. Despite enhanced liquidity in the market because of 5% decline in the SBP discount
rate the Bank managed to marginally increase its income from finance provided. The total assets increased by
15% from Rs. 1,601 million in 2000-2001 to Rs. 1,849 million. Following a conservative lending approach the
provision for loan losses was increased by 115% to Rs. 28.07 million (Rs. 13.07 million in 2000-2001). The
administrative expenses though increasing from the previous year have declined as a percentage of total
expenditure from 13% in 2000-2001 to 11%.The decline in the administrative cost as a percentage of total
expenses with corresponding increase in the revenues and profit figures shows the management's firm grip on
routine expenses.
Auditors'Observation
The management consistently followed the practice of netting off Repo and Reverse Repo transactions for
balance sheet presentation purposes. The market practice varies for the treatment of these transactions as
some companies show these transactions at their gross values. To avoid major aberration and in order to be
consistent in its policies, the management feels it appropriate to follow the past practice.
Rights Issue
The State Bank of Pakistan (SBP) has directed all Investment Banks to increase their capital to Rs. 300 million. In
view of this requirement and further to strengthen the capital base of the Bank the directors are pleased to
announce a Rights Issue of 50% i.e. One share for every Two shares held at par value of Rs. 10/- each.
Authorised Capital
To accommodate future capital increases, the Directors recommend an increase in the Authorised Capital from
Rs. 300 million to Rs. 500 million.
Report of the Directors' & Chairman's Review
Future Outlook
With the macro economic indicators and Pakistan's investment rating improving, the year ahead is expected to
bring larger business and profit to the bank.
Compliance with Code of Corporate Governance
As required under the Code of Corporate Governance, the Board of Directors states that:
• The Financial Statements present fairly the state of affairs of the Company, the results of its operations. Cash
Flow Statement and Statement of Changes in Equity.
• Proper books of accounts of the company have been maintained.
• Accounting policies as stated in the notes to the accounts have been consistently applied in the preparation
of financial statements, and accounting estimates are based on reasonable and prudent judgment.
• International Accounting Standards, as applicable in Pakistan and as stated in the notes attached with the
accounts, have been followed in the preparation of the financial statements.
" The system of internal control is sound in design and has been effectively implemented and monitored. '
• The Company is financially sound and is a going concern.
• There has been no material departure from the best practices of corporate governance, as detailed in the
listing regulations.
Board Meetings
Three Board meetings were held during 2001-2002.The overseas Directors were unable to attend the meetings
but constantly followed the progress of the Bank and the Board proceedings:
Name of Director			Meetings attended
I.Mr.Kunwar Idris			3
2.Mr.YoshioOno*			0
3. Mr. Nagaaki Esaki*			0
4. Mr. Benjamin Lee*			0
5. Mr. Humayun Murad			3
6. Mr. Muhammad Rashid Zahir (Appointed in February 2002)			1
7. Mr. Fahim Ahmed			3
8. Mr. Nairn Farooqui			3
* Foreign Residents
Summarised Operating and Financial Data for the last six years
			Year Ended 30 June
	2002	2001	2000	1999	1998	1997
					Rupees in million
Gross Revenue	459	322	288	256	183	91
Profit Before Tax	72	41	44	32	12	11
Profit After Tax	47	28	28	20	8	7
Total Assets	1,849	1,601	1,466	1,497	1,524	1,106
Earnings Per Share	Rs. 2.35	Rs.1.41	Rs. 1.39	Rs.1.00	Rs.0.40	Rs.0.33
Report of the Directors' & Chairman's Review
Statement of Investments of Provident Fund
The company operates a contributory provident fund scheme covering all regular employees.The investment
balances are as follows:
			30 June 2002	30 June 2001
			Un audited	Audited
Amount of Investments of Provident Fund		Rupees	5,859,842	5,618,553
Credit Rating
Based on the results and financial position for the year ended June 30,2001 the Pakistan Credit Rating Agency
(PACRA) maintained the Bank's rating as A - for long-term debt and A 2 for short-term debt.
Directors
During the year Mr. Muhammad Rashid Zahir representing Saudi Pak Industrial and Agricultural Investment
Company (Pvt) Limited was reappointed as director on the Board.
Staff
The Board wishes to record its appreciation for the hard work put in by the staff members leading to new
business avenues and higher profits.
Auditors
The auditors Sidat Hyder Qamar & Co., Chartered Accountants, retire and being eligible, offer themselves for
reappointment.
Pattern of Shareholding
The pattern of shareholding as on June 30,2002 is shown on page 30.
On Behalf of The Board
Auditors' Report to the Member
We have audited the annexed balance sheet of ORIX INVESTMENT BANK PAKISTAN LIMITED as at 30 June, 2002 and
the related profit and loss account, cash flow statement and statement of changes in equity together with the notes
forming part thereof, for the year then ended and we state that we have obtained all the information and
explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit.
It is the responsibility of Company's management to establish and maintain a system of internal control and prepare
and present the above said statements in conformity with the approved accounting standards and the requirements
of Companies Ordinance, 1984. Our responsibility is to express an opinion on these statements based on our audit.
We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards
require that we plan and perform the audit to obtain reasonable assurance about whether the said statements are
free of any material misstatement. An audit includes examining on a test basis, evidence supporting the amounts
and disclosures in the above said statements. An audit also includes assessing the accounting policies and
significant estimates made by the management, as well as, evaluating the overall presentation of the above said
statements. We believe that our audit provides a reasonable basis for our opinion and, after due verification, we
report that: ,
a) as more fully explained in note 2.7 to the financial statements, the Company has accounted for Repo and
Reverse repo transactions as sale and purchase of securities respectively instead of treating them as
financing transactions.
b) in our opinion, proper books of account have been kept by the Company as required by the Companies
Ordinance, 1984;
c) in our opinion:
i) the balance sheet and profit and loss account together with the notes thereon have been drawn up in
conformity with the Companies Ordinance, 1984, and are in agreement with the books of account and
are furhter in accordance with accounting policies consistently applied;
ii) the expenditure incurred during the year was for the purpose of the Comnpany's business; and
iii) the business conducted, investments made and the expenditure incurred during the year were in
accordance with the objects of the Company;
d) except for the effects of such adjustments which would have been necessary in view of paragraph (a)
above in our opinion, and to the best of our information and according to the explanations given to us, the
balance sheet, profit and loss account, cash flow statement and statement of changes in equity together
with the notes forming part thereof, conform with approved accounting standards as applicable in
Pakistan and give the information required by the Companies Ordinance, 1984 in the manner so required
and respectively give a true and fair view of the state of the Company's affairs as at 30 June, 2002 and of
the profit, its cash flows and changes in equity for the year then ended; and
e) in our opinion, zakat deductible at source under the Zakat and Ushr Ordinance, 1980 was deducted by the
Company and deposited in the Central Zakat Fund established under Section 7 of that Ordinance.
Without further qualifying our report we draw your attention to the matter relating to compliance of
minimum capital requirement specified by State Bank of Pakistan as described in note 1.2 to the financial
statements.
Karachi:		Sidat Hyder Qamar & Co.
26 September, 2002 Sidat Hyder Qamar & Co.		Sidat Hyder Qamar & Co.
with the Code of Corporate Governance
The Company is in the process of implementing the requirements of the Code of Corporate Governance issued by
the Securities and Exchange Commision of Pakistan and adopted by the Stock Exchanges. The provisions of the
code, relevant for the year ended 30 June, 2002 have been duly complied with by the Company.'
Karachi:
17 September, 2002
Nairn Farooqui
Managing Director & Chief Executive
on behalf of Board of Directors
Review Report to the Members on Statement of Compliance with best Practices of Code of Corporate
Governance
We have reviewed the Statement of Compliance as at 30 June, 2002 with the best practices contained in the Code
of Corporate Governance prepared by the Board of Directors of ORIX Investment Bank Pakistan Limited to comply
with the Listing Regulation No. 37 of the Karachi Stock Exchange and chapter XIII of the Lahore Stock Exchange
where the Company is listed.
The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the
Company. Our responsibility is to review, to the extent where such compliance can be objectively verified, whether
the Statement of Compliance reflects the status of the Company's compliance with the provisions of the Code of
Corporate Governance and report if it does not. A review is limited primarily to inquiries of the Company personnel
and review of various documents prepared by the Company to comply with the Code.
As part of our audit of financial statements we are required to obtain an understanding of the accounting and
internal control systems sufficient to plan the audit and develop an effective audit approach. We have not carried
out any special review of the internal control system to enable us to express an opinion as to whether the Board's
statement on internal control covers all controls and the effectiveness of such internal controls.
Based on our review, nothing has come to our attention which causes us to believe that the Statement of
Compliance does not appropriately reflect the Company's compliance, in all material respects, with the best
practices contained in the Code of Corporate Governance, as applicable to the Company during the period under
review.
Karachi;
26 September, 2002
Sidat Hyder Qamar & Co.
Chartered Accountants
Balance Sheet as at 30 June, 2002
			Note	2002	2001
ASSETS
Fixed assets - tangible			3	11,560,669	9,653,936
Long term investment			4	25,282,236	21,150,537
Long term loans and term finances - net			5	190,879,426	217,487,988
Long term security deposits			6	2,300,760	2,250,760
Deferred costs			7	3,305,556	697,866
Current Assets
Short term investments			8	551,417,504	269,784,289
Funds placement with financial institutions			9	165,000,000	310,000,000
Short term finances - net			10	721,180,007	638,804,202
Advances, prepayments and other receivables			11	119,556,333	84,263,240
Advance taxation			12	22,092,520	23,172,260
Cash and bank balances			13	36,263,626	24,093,518
				1,615,509,990	1,350,117,509
			Rupees	1,848,838,637	1,601,358,596
SHARE CAPITAL AND LIABILITIES
Share capital and reserves
Authorised capital
30,000,000 (2001:30,000,000) ordinary shares of Rs.10/- each				300,000,000	300,000,000
Issued, subscribed and paid-up capital
20,000,000 (2001:20,000,000) fully paid ordinary shares of
Rs.10/- each issued for cash				200,000,000	200,000,000
Statutory reserve				27,582,031	181,198,030
Unappropriated profit				255,328,134	17,792,128
				252,910,165	235,990,158
Surplus / (deficit) on revaluation of securities - net			14	1,316,536	(950,899)
Long term certificates of investment			15	44,501,707	248,421,600
Long term loans			16	204,782,791	5,215,974
Current Liabilities
Current maturity of long term loans			16	36,313,979	18,767,292
Short term loans			17	100,000,000	50,000,000
Short term certificates of investment			15	1,037,007,341	839,441,466
Short term borrowings			18	57,041,949	111,739,559
Accrued expenses and other liabilities			19	57,964,169	60,183,446
Provision for taxation			12.1	24,000,000	12,550,000
Proposed dividend				30,000,000	20,000,000
				1,342,327,438	1,112,681,763
Contingencies and commitments			20
			Rupees	1,848,838,438	1,601,358,596
Auditors' Report Annexed
The annexed notes form an integral part of these financial statements.
Profit and Loss Account
for the year ended 30 June, 2002
			Note	2002	2001
INCOME
Income from loans, term finances and credit facilities			21	198,226,412	196,612,752
Income from investments			22	208,322,145	93,091,890
Net gain on sale of investments				33,603,388	21,159,254
Fee, commission and brokerage			23	17,735,186	10,579,402
Other income			24	1,129,236	846,923
				459,016,367	322,290,221
EXPENDITURE
Return / mark-up on deposits and borrowings			25	330,845,231	241,374,053
Administrative and operating expenses			26	41,172,190	34,924,116
				372,017,421	276,298,169
Profit before provision and taxation				86,998,946	45,992,052
Provision for losses on term finances / credit facilities			2.8,5.5 & 10.4	15,000,000	4,500,000
Profit before taxation				71,998,946	41,492,052
Provision for taxation - current			12.1	24,000,000	12,550,000
- prior			12.2	1,078,939	745,000
				25,078,939	13,295,000
Profit after taxation				46,920,007	28,197,052
Unappropriated profit brought forward				17,792,128	15,234,486
Profit available for appropriations				64,712,135	43,431,538
APPROPRIATIONS
Transfer to statutory reserve				9,384,001	5,639,410
Proposed cash dividend Rs. 1.50 per share (2001: Re. 1/- per share)				30,000,000	20,000,000
				39,384,001	25,639,410
Unappropriated profit carried forward			Rupees	25,328,134	17,792,128
Earnings per share			27	Rs.2.35	Rs.1.41
The annexed notes form an integral part of these financial statements.
Cash Flow Statement
for the year ended 30 June, 2002
			Note	2002	2001
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation				71,998,946	41,492,052
Adjustments for non cash and other items
Depreciation on fixed assets			3.1	3,417,875	3,491,621
Financial charges on leased assets			26	.	7,123
Provision for losses on term finances / credit facilities			5,5 & 10.4	15,000,000	4,500,000
Amortisation of deferred costs			7	1,642,310	137,904
(Gain) / loss on sale of fixed assets			3.2	(68,034)	353,448
				19,992,151	8,490,096
Long term security deposits				(50,000)	3,244,652
Deferred costs				(4,250,000)	(835,770)
Cash flows from operating activities before working capital changes				87,691,097	52,391,030
Effect on cash flows due to working capital changes			28	(79,864,100)	2,383,010
Income tax paid				(7,860,570)	(26,170,113)
Net cash (outflow) / inflow from operating activities				(33,573)	28,603,927
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure				(5,529,241)	(3,621,027)
Long term investment				(2,215,626)	(3,429,100)
Long term loans and term finances				26,196,687	(163,263,741)
Sale proceeds from disposal of fixed assets				272,667	68,754
Net cash inflow / (outflow) from investing activities				18,724,487	(170,245,114)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of finance lease obligation				-	(143,227)
Certificates of investment - net				(203,919,893)	148,397,893
Long term loans				217,113,504	(15,813,050)
Dividend paid				(19,714,417)	(19,756,787)
Net cash (outflow) / inflow from financing activities				(6,520,806)	112,684,829
Net increase / (decrease) in cash and cash equivalents				12,170,108	(28,956,358)
Cash and cash equivalents at the beginning of the year				24,093,518	53,049,876
Cash and cash equivalents at the end of the year			Rupees	36,263,626	24,093,518
The annexed notes form an integral part of these financial statements.
				2002	2001
Share capital			Rupees	200,000,000	200,000,000
Statutory reserve
Beginning balance				18,198,030	12,558,620
Transfer during the year				9,384,001	5,639,410
Ending balance			Rupees	27,582,031	18,198,030
Unappropriated profit
Beginning balance				17,792,128	15,234,486
Net profit for the year				46,920,007	28,197,052
Transfer to statutory reserve				(9,384,001)	(5,639,410)
Proposed cash dividend •				(30,000,000)	(20,000,000)
Ending balance			Rupees	25,328,134	17,792,128
Total shareholders' equity
Beginning balance				235,990,158	227,793,106
Increase - net				16,920,007	8,197,052
Ending balance			Rupees	252,910,165	235,990,158
The annexed notes form an integral part of these financial statements.
ANNUAL REPORT 2002
for the year ended 30 June, 2002
1. LEGAL STATUS AND NATURE OF BUSINESS
1.1 ORIX Investment Bank Pakistan Limited was incorporated as a public limited company in Pakistan
under the name of ORIX Investment Finance Company Pakistan Limited. Subsequently, the name of the
company was changed to ORIX Investment Bank Pakistan Limited. The Company is licensed to carry
out investment finance activities as detailed in SRO 585 (1)/87 dated 13 July, 1987 issued by the
Ministry of Finance, Government of Pakistan. The Company is listed on the Karachi and Lahore Stock
Exchanges. Since November 2001 the Company has also commenced money market brokerage
operations.
1.2 The State Bank of Pakistan (SBP) through BSD Circular No. 23 dated 01 June, 2001 has enhanced the
minimum capital requirement (MCR) threshold requiring investment banks to raise their capital to
Rs. 300 million by 01 January, 2002 and Rs. 500 million by 01 January, 2003. However, SBP has extended
the time for compliance of MCR upto 30 June, 2002 for the Company vide its letter No. BSD (RU) /
(Orix)/4212/2002 dated 21 March, 2002.The Company is actively pursuing the matter and has applied
for further extention to SBP for meeting the capital requirement by 01 January, 2003. Subsequent to
the balance sheet date, the Board of Directors of the Company in their meeting held on
17 September, 2002 have approved the issue of 10,000,000 right shares of Rs. 10/-each at par in order
to raise the capital of the Company to the statutory limit.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis for preparation of the financial statements
These financial statements have been prepared in accordance with the requirements of the
Companies Ordinance, 1984 and International Accounting Standards as applicable in Pakistan except
for the requirements of IAS-39 'Financial Instruments: Recognition and Measurement' in view of the , ^»
SBP's BSD Circular Letter No. 11 dated 11 September, 2002. | 3
2.2 Accounting convention
These financial statements have been prepared under the historical cost convention except for the
measurement of marketable securities at market value.
2.3 Operating fixed assets and depreciation
Operating fixed assets are stated at cost less accumulated depreciation. Depreciation is charged to
income applying the straight-line method whereby the cost of an asset is written-off over its estimated
useful life. In respect of additions and deletions of assets during the year, depreciation is charged from
the month of acquisition and upto the month preceding the deletion respectively.
Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written
down to its recoverable amount.
Maintenance and normal repairs are. charged to income as and when incurred. Major renewals and
improvements are capitalised and assets so replaced, if any, are retired.
Gains and losses on disposal of fixed assets, if any, are included in current income.
2.4 Assets subject to finance lease
Assets subject to finance lease are carried at the lower of present value of minimum lease payments
under the lease agreements and the fair value of the assets acquired on lease. The related obligations
under the lease agreements are accounted for as liabilities. Assets acquired under the finance lease are
• depreciated over the useful life of the assets applying the straight-line method. Such depreciation is
charged to income from the month in which the leased assets are acquired.
Notes to the Accounts
for the year ended 30 June, 2002
3.2 Disposal of Fixed Assets
		Accumulated	Book	Sale		Mode of
	Cost	Depreciation	value	proceeds	Gain/(Loss)	Disposal	Particulars of Buyer
Airconditioners	631,274	448,308	182,966	251,000	68,034	Negotiation	Moghal Traders,
							Karachi
Office equipment	25,000	3,333	21,667	21,667		Company	Mr. S.H. Irtiza Kazmi, Karachi
						policy	(Ex-employee)
Rupees	656,274	451,641	204,633	272,667	68,034
2001 - Rupees	907,906	485,704	422,202	68,754	(353,448)
		2002		2001
		Cost	Market	Cost	Market
			value		value
4. LONG TERM INVESTMENT
Investment in Unit Trust of Pakistan
4,123 Units (2001:3,697 Units) at
market value Rupees		254,209,262	5,282,236	23,205,300	21,150,537
Represents investment made in 4,123 Units (2001:3,697 Units) of Unit Trust of Pakistan (UTP),an open ende<
mutual fund.The market value at 30 June, 2002 is Rs. 6,132/- (2001 :Rs. 5,72V-) per unit.
			Note	2002	2001
5. LONG TERM LOANS AND TERM FINANCES - net
Secured, considered good
Due from:
- Chief Executive			5.1	5,855,886	6,438,271
- Employees			5.2	11,425,030	2,364,832
- Others				869,750	869,750
				18,150,666	9,672,853
Less: Current portion				1,558,523	2,369,525
				16,592,143	7,303,328
Long term finances			5.3	382,912,257	259,035,834
Less: Current portion				204,966,218	45,604,293
				177,946,039	213,431,541
Less: Provision for losses on term finances			5.5	3,658,756	3,246,881
				174,287,283	210,184,660
			Rupees	190,879,426	217,487,988
5.1 Represents house loan provided as per the Company's policy. The loan is secured against equitable
mortgage on the property,the title documents of which are held by the Company. The loan is repayable
within a period of 10 years or retirement date whichever is earlier and carries mark-up at the rate of
10.00 percent per annum. Maximum amount outstanding at the end of any month during the year
against loan to Chief Executive was Rs. 6,391,923/- (2001:Rs.6,897,730/-).
5.2 Represents house, car and other loans provided as per the Company's employee loan policy. These
loans carry mark-up rates ranging from 5.00 to 10.00 percent per annum and are repayable within
20 years. The maximum amount due from employees at the end of the month during the year was
Rs.11,692,486/- (2001: Rs. 2,528,431 /-).
5.3 Represents finances provided both at fixed interest rate and floating interest rate. Floating interest rate
is weighted average yield rate of treasury bills auctioned during the past six months plus lending cost
or the minimum rate as mutually agreed whichever is higher. The mark-up rate ranges from 13.00 to
20.00 percent per annum.The term finances are repayable within a period of 2 to 5 years from the date
of financing and are secured against charge over fixed assets, trade receivables, pledge/hypothecation
of stocks, lien on foreign currency certificates of investment and personal guarantees of directors etc.
These include finances aggregating to Rs.94,992,755/- provided to leasing companies / modarabas at
mark-up rates ranging from 13.00 to 18.50 percent per annum. The finances are repayable within a
period of 1 to 4 years and are secured against lease receivables of the leasing companies / modarbas
under specified lease contracts and corporate guarantees of the respective leasing companies /
modarabas.
			Note	2002	2001
5.4 Long term loans and term finance due for
payments after a period of 12 months from
the balance sheet date comprises:
Outstanding for periods - less than three years				181,228,279	206,318,252
- three years and more				13,309,903	14,416,617
			Rupees	194,538,182	220,734,869
5.5 Particulars of provision for losses on term finances
Opening balance				3,246,881	575,407
Charge for the year				411,875	2,671,474
Ending balance			Rupees	3,658,756	3,246,881
6. LONG TERM SECURITY DEPOSITS
Office premises				1,542,960	1,542,960
Others				757,800	707,800
			Rupees	2,300,760	2,250,760 .
7. DEFERRED COSTS
Balance as at 01 July			7.1	697,866
Cost incurred during the year
- office rentals				-	835,770
- brokerage licence cost			7.2	4,250,000	-
				4,250,000	835,770
				4,947,866	835,770
Less: Amortised during the year				1,642,310	137,904
			Rupees	3,305,556	697,866
7.1 This represents the unamortised balance of rentals for the period from October 2000 to
December 2000 when the premises were being renovated. The management has decided to fully
charge off this amount in the current year.
7.2 This represents cost of acquisition of money market brokerage licences.
Notes to the Accounts for the year ended 30 June, 2002
			Note	2002	2001
8. SHORT TERM INVESTMENTS
Government Securities			8.1	321,215,324	109,936,817
Quoted Securities
-Term Finance Certificates			8.2	198,092,113	139,700,587
- Equity Investments			8.3	25,923,867	20,146,885
- Investment in Mutual Funds			8.4	6,186,200	-
				230,202,180	159,847,472
			Rupees	551,417,504	269,784,289
8.1 Represents investment in Pakistan Investment Bonds and Federal Investment Bonds, which carry mark
up at the rate of 15.00 percent per annum.These are valued using PKRV (Reuters Page) rates.
8.2 Term Finance Certificates - Listed
		Profit				2002		2001
		Payment	Rate	Year of	Cost	Market	Cost	Market
		frequency	%	Maturity		Value		Value
Gatron (Industries) Ltd.		Semi-annually	18	2003	6,858,397	7,231,112	13,680,201	13,984,927
ATLAS Investment Bank Ltd. I		Semi-annually	15	2005	1,998,800	1,998,800	1,999,600	1,999,600
ATLAS Investment Bank Ltd. II		Semi-annually	15	2006	959,808	959,808		-
Dewan Salman Fibre Ltd. I		Semi-annually	19	2004	19,976,000	21,574,021	19,984,000	20,783,360
Dewan Salman Fibre Ltd. 11		Quarterly	16	2005	9,992,000	9,992,000	9,992,000	10,000,000
Pakistan (PTA) Ltd.		Semi-annually	13.19	2006	21,175,764	21,175,764
First International Investment		Quarterly	17.8O	2003	499,400	499,400	749,200	749,200
Bank Limited
National Development Leasing		Semi-annually	17	2004	19,980,000	21,178,800	19,988,000	19,988,000
Corporation Limited
Nishat Mills Ltd.		Semi-annually	14.5	2004	15,991,801	15,991,801
Paramount Leasing Ltd.		Semi-annually	16.25	2004	8,800,000	9,152,000	9,800,000	9,800,000
PILCORP 1		Semi-annually	18	2004	7,492,500	7,492,500	7,495,500	7,495,500
PILCORP 11		Semi-annually	15.6	2004	3,333,340	3,400,007	5,000,000	5,000,000
Shakarganj Mills Limited		Semi-annually	15	2005	19,992,000	19,992,000	20,000,000	20,000,000
Sui Southern Gas Co. Ltd.		Semi-annually	14.15	2006	20,991,600	20,991,600	25,000,000	25,400,000
Dawood Leasing Co. Ltd.		Semi-annually	13.5	2006	500,000	500,000	-	- .
Engro Chemical Pakistan Ltd.		Semi-annually	13	2006	4,999,000	4,999,000		-
Crescent Leasing Corporation Ltd.		Semi-annually	14.5	2006	4,999,000	4,999,000
Security Leasing Corporation Ltd.		Semi-annually	14.75	2005	4,999,500	4,999,500		-
Reliance Weaving Mills Ltd.		Semi-annually	15.25	2007	4,500,000	4,500,000
Union Leasing Ltd.		Semi-annually	14.5	2005	5,000,000	5,000,000
Shahmurad Sugar Mills Ltd.		Semi-annually	15.5	2006	3,785,000	3,785,000
. Sitara Chemical Industries Ltd.		Semi-annually	12	2007	7,680,000	7,680,000
Sigma Leasing Corporation Ltd.		Semi-annually	17	2003			4,500,000	4,500,000
				Rupees	94,503,910	198,092,113	138,188,501	139,700,587
Notes to the Accounts
for the year ended 30 June, 2002
8.3 Equity investments - Listed
		2002		2001
		Cost	Market value	Cost	Market value
Meezan Bank Limited		12,362,385	12,416,135	12,362,385	12,362,385'
Hub Power Company Limited		5,806,387	5,345,959	1,595,797	1,436,250
Pakistan Telecommunication
Company Limited		1,339,748	1,286,250	3,618,427	3,500,250
Fauji Fertilizer Company Limited		7,274,485	6,841,780	2,970,498	2,848,000
National Bank of Pakistan		16,436	33,743	-	-
Rupees		26,799,441	25,923,867	20,547,107	20,146,885
8.4 Investments in Mutual Funds - Listed
. .		2002		2001
		Cost	Market value	Cost	Market value
Pakistan Income Fund		5,000,000	5,182,000	-	-
Pakistan Stock Market Fund		1,000,000	1,004,200	-	-
Rupees		6,000,000	6,186,200	-	-
				2002	2001
9. FUNDS PLACEMENT WITH FINANCIAL INSTITUTIONS
Unsecured - considered good
Clean placement				125,000,000	310,000,000
Certificates of investment				40,000,000	-
			Rupees	165,000,000	310,000,000
9.1 Represents amounts placed with financial institutions carrying-mark-up rate ranging from 10.00 to
20.90 percent per annum.
			Note	2002	2001
10. SHORT TERM FINANCES - net
Secured - considered good
Current portion of:
- Loans to employees			5	1,558,523	2,369,525
- Long term finances			5	204,966,218	45,604,293
				206,524,741	47,973,818
Short term finances			10.1	513,625,986	554,591,876
Bills purchased			10.2	12,162,047	29,506,129
Musharika Financing			10.3	13,278,477	16,555,498
Less: Provision for losses			10.4	24,411,244	9,823,119
				514,655,266	590,830,384
			Rupees	721,180,007	638,804,202
Notes to the Accounts
for the year ended 30 June, 2002
10.1 These represent short-term loans provided by the Company for working capital finances, which carry
mark-up ranging from 13,00 to 20.00 percent per annum.These are secured by charge on assets of the
borrower.
10.2 Represents purchase of bills / invoices for providing finance facility. These are secured by charge on
receivables and stocks / stores and spares and carry mark-up at rates ranging between 16.00 to 18.00
percent per annum.
10.3 Represents musharika financing provided by the Company for trade finances. These are based on
mutual profit sharing depending upon the terms and conditions of the agreement. These are secured
by security deposit and charge over the assets of the venturer.
10.4 Particulars of provision for losses:
				2002	2001
Opening balance				9,823,119	7,994,593
Charge for the year				14,588,125	1,828,526
Ending balance			Rupees	24,411,244	9,823,119
			Note	2002	2001
. ADVANCES, PREPAYMENTS AND
OTHER RECEIVABLES
Advances
Income tax refundable				-	(8,161,574)
Advances - unsecured, considered good
- for purchase of vehicle				1,169,000	-
- for expenses				62,328	156,578
				1,231,328	8,318,152
Prepayments
Exchange risk cover fee				-	8,554,924
Office rentals				771,480	835,770
Others				546,740	283,984
				1,318,220	9,674,678
Other receivables
Accrued profit / mark-up on:
- Investments				51,362,109	25,314,862
-Term finances				18,672,289	24,464,030
- Funds placement				2,130,832	6,985,351
- Bills purchased				590,176	747,078
Interest receivable on FIBs				39,088,691	8,364,626
Income tax			12.2	3,472,944	-
Brokerage receivable				1,307,074	-
Others				382,670	394,463
				117,006,785	66,270,410
			Rupees	119,556,333	84,263,240
for the year ended 30 June, 2002
12. TAXATION
12.1 Current
The charge for current taxation is based on taxable income at the current rates of taxation after taking
into account applicable tax credits, rebates and exemptions available, if any.
12.2 Prior years
The income tax assessments of the Company have been finalized up to the assessment year 2001 -
2002. While finalizing the assessment for the assessment year 2001-2002 the Income Tax Department
has made certain disallowances on account of profit and loss account expenses and excess perquisites
for which the Company has filed an appeal before the Commissioner of Income Tax. Full provision
rela'ting to such disallowances amounting to Rs. 1,078,9397- has been made in these financial
statements.
Furthermore, for the aforesaid assessment year, the department has treated the Company as an
assessee in default under section 52 of the Income Tax Ordinance, 1979 and has raised tax demand
amounting to Rs. 3,472,944/-. The Company has filed an appeal against the said order of the
department. The management is confident, based on the merits of the case, that the decision of the
appeal would be favourable and therefore no provision for the said tax demand has been made in
these accounts. However, pending the decision of the appeal, full payment for the said tax demand has
been made.
			Note	2002	2001
13. CASH AND BANK BALANCES
Balances with banks on:
Deposit accounts			13.1	33,970,361	21,690,892
Current accounts				2,122,286	2,376,662
				36,092,647	24,067,554
Cash in hand				170,979	25,964
			Rupees	36,263,626	24,093,518
13.1 Includes a deposit of Rs. 6,050,000/- (2001: Rs. 10,250,000/-) with the State Bank of Pakistan (SBP) as
required under the relevant provisions of the SBP's Rules for Non-Banking Financial Institutions (NBFIs)
to maintain liquidity reserve against certain liabilities.
				2002	2001
14. SURPLUS / (DEFICIT) ON REVALUATION OF SECURITIES - net
Government Securities				1,554,697	-
Equity Investments				(873,933)	(400,222)
Unit Trust of Pakistan				(138,690)	(2,054,763)
Term Finance Certificates				3,588,262	1,504,086
Investment in Mutual Funds				186,200	-
Rupees				4,316,536	(950,899)
This represents the difference between the carrying value and revalued amount of marketable
securities arising on revaluation of such securities in accordance with SBP's BSD Circular No. 20 dated
04 August, 2000.
			Note	2002	2001
15. LONG TERM CERTIFICATES OF INVESTMENT
Local currency deposits				1,081,509,048	937,149,466
Foreign currency deposits				-	150,713,600
			15.1	1,081,509,048	1,087,863,066
Less: Certificates due within one year shown as
current liability
- Local Currency				1,037,007,341	839,441,466
			Rupees	44,501,707	248,421,600
15.1 These represent deposits received from customers under Registered Certificates of Investment
Schemes both in local as well as in foreign currency.The maturity period is ranging between one month
to five years for local currency certificates and three months to five years for foreign currency
certificates. The expected rate of return payable on these deposits ranges from 7.50 to 18.00 percent
per annum for local currency deposits and approximately 6.10 to 6.30 percent per annum for foreign
currency deposits.
			Note	2002	2001
16. LONG TERM LOANS
Secured
Saudi Pak Industrial & Agricultural Investment
Company (Private) Limited			16.1	91,096,770	23,983,266
Unsecured
The Bank of Khyber			16.2	150,000,000	-
				241,096,770	23,983,266
Less: Current maturity				36,313,979	18,767,292
			Rupees	204,782,791	5,215,974
16.1 Represents long term loans from Saudi Pak Industrial and Agricultural Investment Company (Private)
Limited which carry mark-up at the rates ranging from 13.00 to 17.50 percent per annum.The loans are
secured by way of hypothecation, demand promissory notes and floating charge over book debts and
receivables of the Company and are repayable in twelve quarterly instalments by 30 September, 2004.
16.2 Represents long term loan obtained frorrrThe Bank of Khyber and carries mark-up at the rate of 11.07
percent per annum subject to a floor and ceiling rate of 10.07 and 12.07 percent per annum
respectively. This loan is repayable by 28 July, 2003.
17. SHORT TERM LOANS-Secured -
Represents short term rupee loans obtained from a commercial bank and carries mark-up ranging from
7.75 to 9.00 percent per annum. These loans are secured by way of hypothecation over loans and
advances of the Company and are repayable by 14 August, 2002.
Notes to the Accounts
for the year ended 30 June, 2002
				2002	2001
18. SHORT TERM BORROWINGS
Secured
Securities sold under agreement to repurchase at mark-	up
rates of 15.00 percent per annum (2001:14.50 to
15.00 percent per annum)				2,868,998	11,739,559
Unsecured
Clean borrowings from financial institutions at mark-up
rates ranging between 6.50 to 7.90 percent per annum
(2001:8.50 to 17.00 percent per annum)				54,172,951	100,000,000
			Rupees	57,041,949	111,739,559
19. ACCRUED EXPENSES AND OTHER LIABILITIES
Accrued return / mark-up on:
- Loans and borrowings
- Secured				25,493,120	21,880,222
- Unsecured				297,721	128,083
				25,790,841	22,008,305
- Certificates of investment				25,238,312	31,839,420
- Security deposits				3,500,000	3,814,350
Accrued expenses				2,501,745	905,982
Unclaimed dividend				836,805	551,222
Others				96,466	1,064,167
			Rupees	57,964,169	60,183,446
20. CONTINGENCIES AND COMMITMENTS
Contingencies
Guarantees issued on behalf of customers			Rupees	8,127,280	7,500,000
Commitments
Purchase and resale transactions			Rupees	50,000,000	101,900,000
Sale and repurchase transactions			Rupees	2,365,000,000	965,000,000
Forward foreign exchange purchase contracts with
State Bank of Pakistan against foreign currency COIs			Rupees	-	150,713,600
Underwriting commitments			Rupees	30,000,000	-
As at the balance sheet date, the Company has commitments to sell government securities having face value
of Rs. 2,000 million (2001: Rs. 630 million) at contracted prices.
21. INCOME FROM LOANS, TERM FINANCES
AND CREDIT FACILITIES
Mark-up on loans and term finances				154,888,470	130,818,207
Profit on Musharika				38,232	1,412,928
Income from bills purchased				4,803,423	4,385,633
Return on funds placement with financial institutions				38,496,287	59,995,984
			Rupees	198,226,412	196,612,752
Notes to the Accounts
for the year ended 30 June, 2002
			Note	2002	2001
22. INCOME FROM INVESTMENTS
Return on securities				202,442,462	88,048,155
Dividend income				5,879,683	5,043,735
			Rupees	208,322,145	93,091,890
23. FEE, COMMISSION AND BROKERAGE
Brokerage commission				3,535,636	.
Trusteeship, underwriting and advisory fee				14,199,550	10,579,402
			Rupees	17,735,186	10,579,402
24. OTHER INCOME
Interest on employee loans				1,059,292	970,758
Gain / (loss) on sale of fixed assets				68,034	(353,448)
Other income				1,910	229,613
			Rupees	1,129,236	846,923
25. RETURN / MARK-UP ON DEPOSITS AND BORROWINGS
Mark-up / interest on:
- Certificates of Investment - (COIs)				132,037,824	131,121,194
- Loans and borrowings
- Short term				181,311,754	96,066,353
- Long term				8,940,729	5,512,402
				190,252,483	101,578,755
Exchange risk fee on COIs				8,554,924	8,674,104
			Rupees	330,845,231	241,374,053
26. ADMINISTRATIVE AND OPERATING EXPENSES
Salaries, allowances and benefits			26.1	21,918,509	17,972,208
Staff training				218,530	485,384
Office rent				3,330,210	4,710,805
Travelling and vehicle maintenance				1,493,966	1,232,513
Insurance				1,233,419	1,015,109
Legal and professional charges				1,078,047	1,042,154
Communication				1,711,819	1,020,197
Electricity, Water and Gas				745,171	812,324
Subscriptions				852,130	411,958
Auditors' remuneration			26.2	622,290	465,499
Advertising and promotional expenses				558,296	231,402
Printing and stationery				704,405	658,110
Depreciation			3	3,417,875	3,491,621
Office repairs and maintenance				362,193	242,419
Financial charges on leased assets				-	7,123
Deferred costs amortised			7	1,642,310	137,904
Books, periodicals and newspapers				42,857	44,741
Office general expenses				1,166,163	880,645
Donations			26.3	74,000	62,500
			Rupees	41,172,190	34,924,116
26.1 These include retirement benefits of Rs. 914.867/-(2001: Rs.1,056,887/-) in respect of provident fund of
the employees.
				2002	2001
26.2 Auditors' Remuneration
Audit fee				200,000	160,000
Audit fee for employees' provident fund				11,000	10,000
Tax and corporate advisory services				350,154	270,499
Out of pocket expenses				61,136	25,000
Rupees				622,290	465,499
26.3 Recipients of donation do not include any donee in whom any director or his spouse had an interest.
27. EARNINGS PER SHARE - Basic and diluted
During the year, the number of shares remained constant at 20,000,000 (2001:20,000,000), earnings per
share were Rs. 2.35 (2001: Rs. 1.41).There were no subscription rights outstanding and therefore, there
are no dilutive potential shares.
28. WORKING CAPITAL CHANGES
(Increase) / decrease in current assets
Short term investments				(278,281,853)	(82,272,638)
Funds placement with financial institutions				145,000,000	97,000,000
Short term finances				(96,963,930)	21,188,732
Advances, prepayments and other receivables				(39,981,722)	(16,215,652)
				(270,227,505)	19,700,442
Increase / (decrease) in current liabilities
Short term loans				50,000,000	(50,000,000)
Certificates of Investment				197,565,875	171,607,737
Short term borrowings				(54,697,610)	(154,944,245)
Accrued expenses and other liabilities				(2,504,860)	16,019,076
				190,363,405	(17,317,432)
			Rupees	(79,864,100)	2,383,010
29. REMUNERATION OF CHAIRMAN, CHIEF EXECUTIVE
AND EXECUTIVES
		Chairman		Chief Executive		Executives
		2002	2001	2002	2001	2002	2001
Managerial remunaratior		600,000	600,000	2,320,000	2,320,000	8,423,005	7,296,573
Housing and utilities		-		1,160,000	1,160,000	3,523,677	3,740,317
Retirement benefits		-	-	232,000	232,000	595,995	720,150
	Rupees	600,000	600,000	3,712,000	3,712,000	12,542,677	11,757,040
Number of persons		1	1	1	1	27	25
The Chairman, Chief Executive and certain Executives are provided with free use of Company maintained cars.
30. FINANCIAL INSTRUMENTS
30.1 Credit risk and concentration of credit risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and
cause the other party to incur a financial loss. The Company attempts to control credit risk by
monitoring credit exposures, limiting transactions with specific counter parties, and continually
assessing the credit worthiness of the same.
Notes to the Accounts
for the year ended 30 June, 2002
Concentrations of credit risk arise when a number of counterparties are engaged in similar business
activities, or have similar economic features that would cause their ability to meet contractual
obligations to be similarly affected by changes in economic, political or other conditions.
Concentrations of credit risk indicate the relative sensitivity of a Company's performance to
developments affecting a particular industry.
The Company has established certain policies and procedures to manage credit exposure, including
initial credit approvals, credit limits, collateral and guarantees requirement, continuous monitoring and
adopting a prudent approach in managing its assets. Due diligence is exercised in selection of risk
assets for investment of funds.
The Company is exposed to credit risk on loans, term finances and funds placement with financial
institutions. The Company seeks to minimise its credit risk exposure through having exposures only to
customers considered creditworthy and obtaining securities where applicable.
A sectoral break-up of term finances and other advances is as follows:
		2002	Percent	2001	Percent
Chemicals		62,822,636	7	57,486,759	6.68
Electrical and Electronic goods		26,770,835	3	35,500,000	4.12
Energy		29,711,522	3	50,000,000	5.82
Food and Beverages		58,466,750	6	24,000,000	2.79
Glass and Ceramics '		9,862,500	1	19,506,134	2.27
Health Care		477,206	0	-	-
Steel and Engineering		27,003,620	3	33,000,000	3.84
Sugar and Allied		120,000,000	13	110,000,000	12.8
Textile		231,985,480	26	314,486,384	36.58
Transport and Communications		18,571,964	2	4,000,000	0.47
Financial Institutions		117,092,755	13	14,345,615	1.67
Trading		-	-	16,555,498	1.93
Miscellaneous		182,535,027	20	178,108,950	20.72
Individuals		23,400,000	3	2,700,000	0.31
Rupees		908,700,295	100	859,689,340	100
Interest / mark-up rate risk exposure
The Company has financial instruments with both fixed and floating interest rates as specifically
disclosed in the respective notes. The Company while dealing in the financial instruments negotiate
attractive fixed interest rates, which reduce the interest rate price risk.
Non-interest bearing financial instruments with maturity over one year may have an exposure of
interest rate price risk.
The range on the weighted average of effective interest rates is disclosed in the respective notes to the
financial statements.
Financial Assets
		Intrest Bearing
		Maturity		Non- Intrest	Total
		Within One Year	Over One Year	Bearing
Long term investments		-	-	25,282,236	25,282,236
Long term loan & term finances		-	190,879,426	-	190,879,426
Long term security deposits		-	-	2,300,760	2,300,760
Short term investment		551,417,504			551,417,504
Funds placement -		165,000,000			165,000,000
Short term finances		707,901,530		13,278,477	721,180,007
Advances and other receivables		1,558,523	16,592,143	101,405,667	119,556,333
Cash and bank balances		33,970,361		2,293,265	36,263,626
Rupees		1,459,847,918	207,471,569	144,560,405	1,811,879,892
2001 - Rupees		1,233,547,004	207,664,869	108,629,831	1,549,841,704
Financial liabilities
		Intrest Bearing
		Maturity		Non- Intrest	Total
		Within One Year	Over One Year	Bearing
Certificates of investment		1,037,007,341	44,501,707	-	1,081,509,048
Long term loans		36,313,979	204,782,791	-	241,096,770
Short term ioans		100,000,000	-	-	100,000,000
Short term borrowings		57,041,949	-	-	57,041,949
Accrued expenses and other liabili	ties	-	-	57,964,169	57,964,169
Proposed dividend		-	-	30,000,000	30,000,000
Rupees		1,230,363,269	249,284,498	87,964,169	1,567,611,936
2001 - Rupees		1,019,948,317	253,637,574	60,183,446	1,333,769,337
30.3 Fair Values
The fair values of the financial instruments approximates their values as disclosed in the respective
notes to the accounts.
30.4 Foreign exchange risk management
Foreign exchange risk is managed by the Company through obtaining forward cover from State Bank
of Pakistan.
				2002	2001
Currency risk exposure
Foreign currency financial assets			Rupees	22,684	19,148
31. TRANSACTIONS WITH ASSOCIATED
UNDERTAKING
Brokerage fee			Rupees	252,167	-
Underwriting / arrangement fee			Rupees	80,000	1,931,376
Underwriting ofTFC issue (non fund based)			Rupees	30,000,000
32. TRUST ACTIVITIES
The Company has been appointed as trustee by various Term Finance Certificate - (TFC) issuers for their
respective issues. The trust deeds entered into, intend to secure the issuer's obligation to redeem the
TFCsatthe maturity on behalf of the TFC holders and envisage that the trustee holds the i:.
security-in-trust on their behalf.
33. NUMBER OF EMPLOYEES
The number of employees at the balance sheet date was 56 (2001:40).
34. CORRESPONDING FIGURES
The significant prior year's figures which have been reclassified consequent upon certain changes in current
year's presentation are as follows:
Reclassification			Nature		Rupees
From	To
Income from investments	Income from loans, term finances		Income from funds placement with financial
	and credit facilities		institutions and Musharika transactions		61,408,912
Advance taxation	Provision for taxation		Tax provision for the year ended 30 June, 2001		12,550,000
Other income	Net gain on sale of investments		Capital gain		21,159,254
35. DATE OF AUTHORISATION FOR ISSUE
These financial statements were authorised for issue on 17 September, 2002 by the Board of Directors of
the Company.
NUMBER OF	SHARE HOLDINGS		NUMBER OF
SHARE HOLDERS	FROM	TO	SHARES HELD
54	1	100	504
1,278	101	0.5	638,750
179	501	1000	179,000
256	1001	5000	738,250
73	5001	10000	591,500
20	10001	15000	266,000
13	15001	20000	241,500
8	20001	25000	190,500
6	25001	30000	169,000
2	30001	35000	67,500
1	35001	40000	37,000
1	40001	45000	41,500
3	45001	50000	147,500
2	50001	55000	101,001
2	55001	60000	117,500
2	60001	65000	126,000
7	70001	75000	521,000
5	75001	80000	382,500
1	80001	85000	84,500
2	95001	100000	199,000
2	105001	110000	220,000
1	125001	130000	130,000
1	145001	150000	147,500
1	205001	210000	207,500
1	235001	240000	239,500
1	335001	340000	335,500
1	375001	380000	380,000
3	995001	1000000	3,000,000
1	1495001	1500000	1,499,999
1	1995001	2000000	2,000,000
1	2995001	3000000	2,999,998
1	3995001	4000000	3,999,998
1,930			20,000,000
There are no shareholdings in the slabs which have not been included above.
CATEGORIES OF	NUMBER OF	SHARES HELD	PERCENTAGE
SHAREHOLDERS	SHAREHOLDERS		%
Individuals	1,876	5,045,503	25.23
Investment Companies	6	2,464,000	12.32
Insurance Companies	3	163,000	0.81
Joint Stock Companies	31	3,629,498	18.15
Financial Institutions	5	1,003,000	5.01
Modaraba	1	27,500	0.14
Foreign Investors	6	7,509,999	37.55
Others	2	157,500	0.79
Total	1,930	20,000,000	100
CATEGORY OF		NUMBER OF	CATEGORY WISE NO. OF	CATEGORY WISE	PERCENTAGE
NO. SHARE HOLDERS		SHARES HELD	FOLIOS / CDC ACCOUNTS	SHARES HELD	%
1 ASSOCIATED COMPANIES, UNDERTAKINGS			1	2,999,998	15
AND RELATED PARTIES
ORIX Leasing Pakistan Limited		2,999,998
2 NIT/ICP			3	67,000	0.34
National Bank of Pakistan, Trustee Deptt.		1,500
Investment Corporation of Pakistan		65,500
3 DIRECTORS, CHIEF EXECUTIVE OFFICER AND			9	125,008	0.62
THEIR SPOUSE AND MINOR CHILDREN
Mr. Kunwar Idris		50,001
Mr.Yoshio Ono		1
Mr. Nagaaki Esaki		1
Mr. Benjamin Lee		1
Mr.Humayun Murad		1
Mr. Muhammad Rashid Zahir		1
Mr. Fahim Ahmed		1
Mr. Nairn Farooqui		1
Mrs. Faryal Murad W/0 Mr. Humayun Murad		75,000
4 BANKS, DFIs, NBFIs, INSURANCE COMPANIES,			10	1,590,500	7.95
MODARABAS & MUTUAL FUNDS
5 FOREIGN INVESTORS			4	7,509,997	37.55
6 INDIVIDUALS			1,869	4,920,497	24.6
7 INVESTMENT COMPANIES			2	2,000,000	10,00
8 JOINT STOCK COMPANIES			30	629,500	3.15
9 OTHERS			2	157,500	0.79
TOTAL			1,930	20,000,000	100
SHARE-HOLDERS HOLDING TEN PERCENT OR MORE VOTING INTEREST IN THE LISTED COMPANY
		NO. OF SHARES	PERCENTAGE
NUMBER OF	SHARE HOLDER(S)	HELD	%
1' ORIX CORPORATION		3,999,998	20
2 ORIX LEASING PAKISTAN LIMITED		2,999,999	15
3 INTERNATIONAL FINANCE CORPORATION		2,000,000	10
TOTAL		8,999,996	45

	Web Paksearch.com

Home | About Us | Contact | Information Resources