| Crescent Leasing Corporation Limited |
|
|
|
|
|
|
|
|
|
|
(Report and Accounts for the eighteen months |
|
|
ended June 30, 1996) |
|
|
|
| CONTENTS |
|
|
|
| Company
Information |
|
2 |
|
| Notice
of Meeting |
|
3 |
|
| Directors'
Report |
|
|
7 |
|
| Auditors'
Report |
|
|
11 |
|
| Balance
Sheet |
|
12 |
|
| Profit
And Loss Account |
|
14 |
|
| Statement
of Changes in Financial Position |
15 |
|
| Notes
to the Accounts |
|
16 |
|
| Pattern
of Shareholding |
|
29 |
|
| Form
of Proxy |
|
|
|
|
|
| COMPANY
INFORMATION |
|
|
|
| BOARD
OF DIRECTORS |
|
|
Mr. Aftab Ahmed Khan |
|
|
Chairman |
|
|
Mr. Abdul Jabbar Kasim |
|
|
Chief Executive |
|
|
|
|
|
Mr. A.K.M. Sayeed |
|
|
Mr. Altaf M. Saleem |
|
|
Mr. Manzurul Haque |
|
|
Mr. Nessar Ahmed |
|
|
Mr. Rashid Ahmed |
|
|
Mr. Stephen Potter |
|
|
|
| CORPORATE
SECRETARY |
|
|
Mr. Rashid Sadiq |
|
|
Mr. Zaheer A. Sheikh |
|
|
|
| AUDITORS |
|
|
|
Khalid Majid Husain
Rahman & Co. |
|
|
Chartered Accountants |
|
|
|
|
| LEGAL
ADVISORS |
|
|
|
Cornelius Lane &
Mufti |
|
|
Advocates &
Solicitors |
|
|
|
| REGISTERED
AND SHARE TRANSFER OFFICE |
|
| 83-Babar
Block, New Garden Town, Lahore. |
|
| Tel:
042-5881974-75 |
|
| Fax:
042-5839631 |
|
|
|
| HEAD
OFFICE |
|
| B-801
& 802, 8th Floor Lakson Square, Bldg.# 3, Sarwar Shaheed Road, Karachi. |
|
| Tel:
021-5661938-48-58 Fax: 021-5661988 |
|
|
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
| Notice
is hereby given that the 9th Annual General Meeting of the shareholders of
CRESCENT |
|
| LEASING
CORPORATION LIMITED will be held on Monday, October 21, ;1996 at 1500 hours |
|
| at
Registered Office, 83-Babar Block, New Garden Town, Lahore to transact the
following busi |
|
| ness: |
|
|
|
|
|
| ORDINARY
BUSINESS: |
|
| 1.
To confirm the Minutes of the 8th Annual General Meeting held on May 30,
1995. |
|
|
|
| 2.
To receive, consider and adopt the audited accounts of the company for the
eighteen |
|
| months
period ended June 30, 1996 together with Directors and Auditors Reports |
|
| thereon. |
|
|
|
|
|
|
|
| 3.
To approve payment of cash dividend. The Directors have recommended the
payment of |
|
| Cash
Dividend @ 15% i.e. Rs. 1.50 per share for the period ended June 30, 1996. |
|
|
|
|
| 4.
To appoint Auditors (for the year ending June 30, 1997) and fix their
remuneration. The |
|
| present
Auditors M/S Khalid Majid Husain Rahman, Chartered Accountants, retire and |
|
| being
eligible, offer themselves for re-appointment. |
|
|
|
|
| SPECIAL
BUSINESS: |
|
| 5.
To consider and if approved pass special resolution for increase in
authorised capital of the |
|
| company
from Rs. 200 million to Rs. 300 million. |
|
|
|
| 6.
To consider and if approved pass the following resolution as special
resolution under |
|
| section
208 of the Companies Ordinance, 1984. |
|
|
|
| Resolved: |
|
|
| That
the company be and is hereby authorised to invest in fully paid up ordinary
shares at |
|
| par
value of Rs. 10/- each of the following associated undertaking and its
disposal at such |
|
| time(s)
as deemed appropriate: |
|
| International Housing Finance
Limited |
|
Rs. 3.125 million |
|
| Trust
Investment Bank Limited |
|
|
Rs. 1.000 million |
|
|
|
|
|
|
|
| Resolved
Further: |
|
| That
the Chief Executive of the Company be and is hereby authorised to take or
cause to be |
|
| taken
any and all actions necessary to purchase the shares and to dispose of the
same as |
|
| deemed
appropriate. |
|
|
|
| Statement
under section 160(1)(b) |
|
| of
the Companies Ordinance, 1984 |
|
| This
statement sets out the material facts concerning the special business to be
transacted at |
|
| the
9th Annual General Meeting of the Company to be held on October 21, 1996. |
|
|
|
| INCREASE
IN AUTHORISED CAPITAL: |
|
| The
present paid-up capital of the company is Rs. 150 million as against
authorised capital of |
|
| Rs.
200 million. In order to meet the future growth in the company s capital, it
is appropriate to |
|
| increase
the authorised capital of the company to Rs. 300 million. Accordingly the
Memorandum |
|
| &
Articles of Association are sought to be amended to reflect the increase in
the amount of |
|
| authorised
capital appearing therein. The Directors of the company are not interested in
this |
|
| business.
The following resolution is proposed to be passed as Special Resolution: |
|
|
|
| Resolved: |
|
|
| That
the authorised capital of the company be increased from Rs. 200,000,000
(Rupees |
|
| two
hundred million) to Rs. 300,000,000 (Rupees three hundred million) by
creation of |
|
| 10,000,000
(Ten million) additional ordinary shares of Rs. 10/- each ranking in dividend |
|
| and
in all other respects pari passu with the existing 20,000,000 (twenty
million) ordinary |
|
| shares
of Rs. 10/- each in the capital of the company and the capital clauses of the |
|
| Memorandum
and Articles of Association be and are hereby altered accordingly to read as |
|
| under: |
|
|
|
| Clause
V of Memorandum of Association: |
|
| The
Authorised Capital of the company is Rs. 300,000,000 (Rupees three hundred
million) |
|
| divided
into 30,000,000 (thirty million) ordinary shares of Rs. 10/- each. |
|
|
|
| Article
4 Of Articles of Association: |
|
| The
authorised capital of the company is Rs. 300,000,000 (Rupees three hundred
million) |
|
| divided
into 30,000,000 (thirty million) ordinary shares of Rs. 10/- each. |
|
|
|
| Resolved
Further: |
|
| That
corporate secretary of the company be and is hereby authorised to do all
necessary |
|
| arrangements
including signing of all documents in this regard to alter the capital
clauses |
|
| of
the Memorandum and Articles of Association. |
|
|
|
| INVESTMENT
IN ASSOCIATED UNDERTAKINGS: |
|
| International
Housing Finance Limited (IHFL) is a housing finance company sponsored by |
|
| International
Finance Corporation (IFC), Commonwealth Development Corporation (CDC) and |
|
| Crescent
Investment Bank Limited (Cres Bank). The primary object of the company is to
provide |
|
| housing
finance facilities to individuals and corporate clients. The company has
issued right |
|
| shares
@ 100% which brings the total paid-up capital of IHFL to Rs. 125 million.
Crescent |
|
| Leasing
Corporation Limited (CLC) has agreed to subscribe to 312,500 shares at par |
|
| amounting
to Rs. 3.125 million. The authorised capital of IHFL is Rs. 150 million. |
|
|
|
| The
final structure of paid up capital is as under: |
|
|
No. of shares |
Rupees |
|
Ownership |
|
|
|
of Rs. 10/- each. |
|
|
Percentage |
|
| CDC |
|
3,750,000 |
|
37,500,000 |
|
30.0% |
|
| IFC |
|
2,500,000 |
|
25,000,000 |
|
20.0% |
|
| CRES BANK |
|
3,750,000 |
|
37,500,000 |
|
30.0% |
|
| PICIC |
|
1,875,000 |
|
18,750,000 |
|
15.0% |
|
| PILCORP |
|
312,500 |
|
3,125,000 |
|
2.5% |
|
| CLC |
|
312,500 |
|
3,125,000 |
|
2.5% |
|
|
|
--------- |
|
--------- |
|
--------- |
|
|
12,500,000 |
|
125,000,000 |
|
100% |
|
|
========= |
|
========= |
|
========= |
|
|
|
|
|
|
|
|
| Trust
Investment Bank Limited (TIBL) is an investment bank with authorised and
paid-up |
|
| capital
of Rs. 200 million and Rs. 100 million respectively. TIBL has been recently
listed on the |
|
| stock
exchanges. Although the public offer was under-subscribed, the bank offers
good invest |
|
| ment
opportunity and has potential for growth. CLC has agreed to take up shares
worth Rs. |
|
| 1.00
million out of public offer at par value of Rs. 10/- each. |
|
|
|
| The
following are material facts about the proposed investment: |
|
| 1.
Name of investee |
International Housing |
|
Trust Investment |
|
| company
or asso- |
|
Finance Limited |
|
Bank Limited |
|
| ciated
undertaking. |
|
|
|
|
|
|
|
| 2.
Nature, |
|
Investment in shares |
|
Investment in shares |
|
| amount
and |
|
Rs. 3,125,000 |
|
Rs. 1,000,000 |
|
| extent of |
|
|
(Rupees Three Million One |
(Rupees One Million only) |
|
| investment. |
|
Hundred Twenty Five |
|
|
Thousand only) |
|
|
|
|
|
| 3.
Price at which |
|
At par value |
|
At par value |
|
| shares
would |
|
i.e. Rs. 10/- |
|
i.e. Rs.10/ |
|
| be
purchased. |
|
per share. |
|
per share. |
|
|
|
|
|
|
|
|
| 4.
Source of funds |
|
Internal |
|
Internal |
|
| from
where shares |
|
generation. |
|
generation. |
|
| would
be purchased. |
|
|
|
|
|
|
|
|
|
| 5.
Period for which |
As deemed |
|
As deemed |
|
| investment
would |
|
appropriate |
|
appropriate |
|
| be made. |
|
|
|
|
|
| 6.
Purpose of |
|
To earn dividend |
|
To earn dividend |
|
| investment: |
|
& capital gain. |
|
& capital gain. |
|
|
|
|
| 7.
Benefits likely |
|
The company will |
|
The company will |
|
| to
accrue to the |
|
earn dividend and |
|
earn dividend and |
|
| company
and the |
|
capital gain to |
|
capital gain to |
|
| shareholders
from |
|
increase its profits |
|
increase its profits |
|
| the
proposed investment. |
|
|
|
|
|
|
| The
proposed investment in associated undertakings will be beneficial for CLC. It
is, therefore, |
|
| recommended
that the shareholders may pass the proposed resolution as special resolution |
|
| under
section 208 of the Companies Ordinance, 1984. Mr. Altaf M. Saleem and Mr.
Nessar |
|
| Ahmed
are Directors of IHFL. Mr. Altaf M. Saleem is Chairman of TIBL. The other
Directors of |
|
| the
company have no interest in the above investments. |
|
|
|
| Copies
of the Memorandum and Articles of Association of IHFL and TlBL are kept at
the |
|
| Registered
Office of the Company which can be inspected from 10.00 a.m. to 11.30 a.m. on
all |
|
| working
days upto October 14, 1996. |
|
| BOOK
CLOSURE: |
|
| The
share transfer books of the company will remain closed from October 16, 1996,
to October |
|
| 22,
1996, (both days inclusive). Transfer received in order at the Registered
Office by the close |
|
| of
business hours on October 15, 1996 will be treated in time for the
entitlement of cash |
|
| dividend. |
|
|
|
|
BY ORDER OF THE BOARD |
|
|
|
Zaheer A. Shaikh |
|
| Dated:
September 15, 1996 |
|
Corporate Secretary |
|
|
|
|
|
|
| NOTE: |
|
|
| 1.
A member eligible to attend and vote at this Meeting may appoint another
member as |
|
| his/her
proxy to attend and vote instead of him/her. |
|
|
|
| 2.
The instrument appointing a proxy and the power of attorney or other
authority under which |
|
| it
is signed or a notarially certified copy of the power of attorney must be
deposited at the |
|
| registered
office of the company at least 48 hours before the meeting. A form of proxy
is |
|
| enclosed. |
|
|
|
| 3.
Shareholders are requested to immediately notify the change in address, if
any. |
|
|
|
|
|
| DIRECTORS'
REPORT |
|
| Your
Directors have pleasure in presenting the Audited Accounts for the period
January 1995 to June 1996, |
|
| covering
a period of 18 months. Pursuant to the Finance Act 1995, your company changed
its account |
|
| ing
year from calendar to fiscal; to comply with the requirement. |
|
| The
financial results of the Company for the period under review are summarized
as follows: |
|
|
|
|
|
|
For eighteen months |
|
For the year |
|
|
|
ended June '96 |
|
ended Dec. '94 |
|
|
|
Rs. ('000) |
|
Rs. ('000) |
|
| Revenue |
|
|
80,862 |
|
24,131 |
|
| Expenditure |
|
36,540 |
|
14,172 |
|
|
|
|
-------- |
|
-------- |
|
| Profit
before taxation |
|
44,322 |
|
9,959 |
|
| Provision
for taxation |
|
653 |
|
406 |
|
|
|
|
-------- |
|
-------- |
|
| Profit
after taxation |
|
43,669 |
|
9,553 |
|
| Unappropriated
profit brought forward |
|
8,345 |
|
3,457 |
|
|
|
|
-------- |
|
-------- |
|
| Profit
available for appropriation |
|
52,014 |
|
13,010 |
|
|
|
|
|
|
|
|
| Appropriations |
|
| Transfer
to reserve under NBFI regulations |
8,734 |
|
1,911 |
|
| Transfer
to general reserve |
|
4,835 |
|
2,755 |
|
| Proposed
Dividend @ 15% |
|
22,500 |
|
- |
|
|
|
|
-------- |
|
-------- |
|
|
|
36,069 |
|
4,666 |
|
|
|
|
-------- |
|
-------- |
|
| Unappropriated profit carried
forward |
|
15,945 |
|
8,345 |
|
|
|
|
======== |
|
======== |
|
|
|
|
| OPERATING
RESULTS |
|
| By
the grace of Almighty Allah, your company has shown substantial improvement
in operating results |
|
| during
the period under review. All the figures show an upward trend. Net Investment
in Lease Financing |
|
| which
was Rs. 137 million at the end of December 1994, stands at Rs. 379 million as
on June 30, 1996. |
|
| On
an yearly basis it is an increase of around 117%. During the preceding six
months it went up by 50%. |
|
| Lease
finance income shows an increase of Rs. 40 million during the eighteen
months. Total income |
|
| went
by 237% from Rs. 24 million to Rs. 81 million. The Company Net Profit was Rs.
43.67 million up |
|
| by
4.57 times from a figure of Rs. 9.55 million, on a comparative basis. |
|
|
|
| Long-term
funds available through Commonwealth Development Corporation have been
successfully |
|
| utilized.
The remaining draw-down will be in October 1996. The funds from second right
issue were |
|
| available
for utilization in May 1995. The adjusted earning per share works to Rs. 3.38
per share. |
|
|
|
| Lease
disbursement and commitments during the review period were to the tune of Rs.
370 million. |
|
| The
company continuing with its strategy of prudent and judicious selection of
sectors and clients has |
|
| developed
a qualify portfolio. The emphasis is to support areas which have growth
potential and in the |
|
| process
select best users of lease financing. Judged from this view-point Lease
Portfolio by Type of |
|
| Asset
depict around 65% in Plant & Machinery followed by 22% in vehicles
(including commercial). |
|
|
|
|
|
|
|
| REVIEW
OF OPERATIONS |
|
| The
government over the last couple of years has had moderate success in bringing
down the budget |
|
| deficit.
Despite this the economy is experiencing a high current account deficit,
approaching six percent |
|
| of
GDP, a sluggish growth in manufacturing sector and a double digit inflation
fuelled by cost - push |
|
| factors
giving rise to high cost of imported inputs. |
|
|
|
| Economic
numbers are not very encouraging and would therefore leave scar on the
recovery |
|
| process.
Macroeconomic fundamentals will have to be substantially improved in order to
keep the tempo |
|
| of
industrialization and direct foreign investment up. In the emerging business
scenario the function of |
|
| financial
intermediation is demanding. The lessors will have to concentrate not only on
business |
|
| expansion
but focus to manage financial risk. |
|
|
|
|
| Our
strategy aims at providing services and products with long-term view in
perspective. This requires a |
|
| close
understanding of client's business, his performance and growth perspective.
In the circumstances, |
|
| we
aim to augment our role in the credit delivery, tapping new areas with
improved efficacy to achieve the |
|
| objective
of quality services to the clients. |
|
|
|
|
| Resource
mobilization is the mainstay of leasing companies to maintain a sustainable
growth rate. Local |
|
| funds
are not only expensive but also come with a tinge of short-term
characteristics. |
|
| According
to the State Bank Governor the financial intermediation cost of public
sectors banks was |
|
| in
the band of 7 to 8 percent, whereas it should be in the range of 2 to 3
percent. Obviously leasing |
|
| companies
borrowing from such sources, working on limited margins, have not much to
influence. |
|
| Long-term
funds, due various factors, now come expensive. One of the anxieties of
lessors is |
|
| arrangement
of matching funds. |
|
|
|
| The
state of affairs of commercial banks and DFls will provide opportunities to
leasing companies |
|
| to
play significant role in the capital formation of the economy. However, in
the coming years, leasing |
|
| companies
will have to be innovative both in the matter of soliciting business and
mobilization of |
|
| resources.
Leasing Companies for a variety of factors need to join hands, to complement
each other in |
|
| situation
of sectoral and client exposure and in the process giving credence that the
leasing companies |
|
| now
possess strength to arrange large ticket leasing to off-set domination of
DFls and commercial |
|
| banks.
Creslease has participated in syndicated lease financing with the objective
of manifesting its |
|
| transaction
capability. We have during this endeavour developed strength and have focused
on "market |
|
| need"
approach in the matter of seeking quality clients. |
|
|
|
| FUTURE
OUTLOOK |
|
| Our
strategy in the coming years is to further enhance and deepen our
understanding of target market, |
|
| simultaneously
to participate in syndication where the risk and reward are compatible to the
objective of |
|
| Creslease.
Furthermore we are closely looking at some innovation of lease products
whereby the |
|
| vendors
would be attracted to offer products through "a lease package", to
bring depth to the lease |
|
| market. |
|
|
|
| We
have set a target for the coming year that will enable us to penetrate the
market and maintain the |
|
| growth
tempo. Simultaneously we have arrangement in place for funds to meet our
targets. |
|
|
|
|
| The
renewed strategy and corporate commitment has given Creslease a stature in
the market. The |
|
| company
is now poised to attain new heights and will be looked favourably by
investors, lenders and |
|
| analyst.
Our long-term aim is to improve shareholders value. The directors recommend a
cash |
|
| dividend
of Rs. 1.50 per share for the period ended June 30, 1996. |
|
|
|
| ACKNOWLEDGMENT |
|
| The
Board acknowledges the support of the bankers, lending institutions and
Commonwealth |
|
| Development
Corporation, particularly, for the support to enable Creslease to attain new
heights. The |
|
| board
wishes to record its appreciation of the company personnel for hard work,
team effort and |
|
| achievements. |
|
|
|
| AUDITORS |
|
|
| The
auditors, Khalid Majid Husain Rahman, Chartered Accountants retire and being
eligible, offer |
|
| themselves
for re-appointment. |
|
|
|
| PATTERN
OF SHAREHOLDING |
|
| The
pattern of shareholding as on June 30, 1996, is annexed to this report. |
|
|
|
|
|
|
|
| AUDITORS
REPORT TO THE MEMBERS |
|
| We
have audited the annexed balance sheet of Crescent Leasing Corporation
Limited as at June |
|
| 30th,
1996, and the related profit and loss account and statement of changes in
financial |
|
| position,
together with the notes forming part thereof, for the eighteen months 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 and, after due
verification there |
|
| of,
we report that: |
|
|
|
| (a)
in our opinion, proper books of account have been kept by the company as
required by the |
|
| Companies
Ordinance, 1984; |
|
|
|
| (b)
in our opinion: |
|
| (i)
the balance sheet and profit and loss account together with the notes therein
have been |
|
| drawn
up in conformity with the Companies Ordinance, 1984, and are in agreement |
|
| with
the books of account and are further in accordance with accounting policies
con |
|
| sistently
applied; |
|
|
|
|
| (ii)
the expenditure incurred during the period was for the purpose of the company
s |
|
| business;
and |
|
|
|
| (iii)
the business conducted, investments made and the expenditure incurred during
the |
|
| period
were in accordance with the objects of the company; |
|
|
|
| (c)
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 and the statement of changes in
financial |
|
| position,
together with the notes forming part thereof, 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 June 30th, 1996 and of the profit
and the |
|
| changes
in financial position for the period then ended; and |
|
|
|
| (d)
in our opinion no zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
|
|
| KARACHI: September, 12, 1996 |
|
Khalid Majid Husain
Rahman |
|
|
|
Chartered Accountants |
|
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1996 |
|
|
|
|
June |
December |
|
|
|
|
1996 |
1994 |
|
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
| Authorised
Capital |
|
| 20,000,000
ordinary shares of Rs. 10/- each |
200,000,000 |
200,000,000 |
|
|
|
|
=========== |
=========== |
|
| Issued,
subscribed and paid-up capital |
3 |
150,000,000 |
75,000,000 |
|
|
|
|
|
|
|
| Capital
reserve |
|
|
|
| Premium
on issue of right shares |
|
56,250,000 |
|
| Revenue
reserves |
|
4 |
35,045,985 |
13,876,948 |
|
|
|
|
---------- |
---------- |
|
|
|
|
241,295,985 |
88,876,948 |
|
| LONG-TERM
FINANCES |
|
5 |
290,453,563 |
2,983,813 |
|
| LIABILITIES
AGAINST ASSETS SUBJECT |
|
|
| TO
FINANCE LEASE |
|
6 |
559,640 |
|
| LONG-TERM
DEPOSITS |
|
7 |
33,175,109 |
13,924,411 |
|
|
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Current
maturity of long-term liabilities 8 |
33,866,868 |
12,153,745 |
|
| Short-term
finance |
|
9 |
3,700,094 |
35,000,000 |
|
| Creditors,
accrued and other liabilities 10 |
13,418,789 |
1,859,123 |
|
| Proposed
dividend |
|
22,500,000 |
|
|
|
|
---------- |
---------- |
|
| COMMITMENTS |
|
11 |
|
|
|
|
|
|
|
|
|
|
---------- |
---------- |
|
|
|
|
638,970,048 |
154,798,040 |
|
|
|
|
=========== |
=========== |
|
|
|
|
| The
annexed notes form an integral part of these financial statements. |
|
|
|
|
|
|
|
| TANGIBLE
FIXED ASSETS |
|
|
|
|
|
| Operating
assets |
|
12 |
16,659,487 |
2,568,304 |
|
| Assets
subject to Finance lease |
13 |
995,435 |
|
|
|
|
---------- |
---------- |
|
|
|
17,654,922 |
2,568,304 |
|
|
|
|
|
| NET
INVESTMENT IN LEASES |
|
14 |
272,037,673 |
97,557,002 |
|
| LONG-TERM
DEPOSITS AND DEFERRED COST |
15 |
168,214,578 |
1,053,538 |
|
| LONG-TERM
LOAN |
|
16 |
499,994 |
164,103 |
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
|
| Current
maturity of net investment in leases 14.1 |
107,074,759 |
4O,132,946 |
|
| Investments |
|
17 |
40,935,000 |
8,925,037 |
|
| Advances, deposits, prepayments |
|
|
|
| and
other receivables |
|
18 |
32,281,658 |
2,952,464 |
|
| Cash
and bank balances |
|
19 |
271,464 |
1,444,646 |
|
|
|
|
---------- |
---------- |
|
|
|
180,562,881 |
53,455,093 |
|
|
|
|
---------- |
---------- |
|
|
|
|
638,970,048 |
154,798,040 |
|
|
|
=========== |
=========== |
|
|
|
|
|
|
|
|
|
|
PROFIT AND LOSS ACCOUNT |
|
|
|
|
FOR THE EIGHTEEN MONTHS
ENDED JUNE 30, 1996 |
|
|
|
|
|
|
For the 18 |
For the year |
|
|
|
months ended |
ended |
|
|
|
|
June |
December |
|
|
|
|
1996 |
1994 |
|
|
|
|
Note |
Rupees |
Rupees |
|
|
|
|
|
|
| Income
from lease operations |
|
20 |
61,236,959 |
21,873,543 |
|
| Other
income |
|
21 |
19,624,819 |
2,257,827 |
|
|
|
|
---------- |
---------- |
|
|
|
|
80,861,778 |
24,131,370 |
|
|
|
|
|
|
| Administrative
and operating expenses |
22 |
13,656,391 |
6,501,144 |
|
| Financial
charges |
|
23 |
20,782,897 |
7,232,917 |
|
| Provision
for potential lease losses |
|
325,232 |
45,817 |
|
| Amortization
of deferred cost |
|
|
1,775,470 |
392,751 |
|
|
|
|
---------- |
---------- |
|
|
|
|
36,539,990 |
14,172,629 |
|
|
|
|
---------- |
---------- |
|
| Operating
profit |
|
44,321,788 |
9,958,741 |
|
| Taxation |
|
25 |
652,751 |
405,811 |
|
|
|
|
|
---------- |
---------- |
|
|
|
| Profit
after taxation |
|
|
43,669,037 |
9,552,930 |
|
|
|
|
|
|
|
|
|
|
|
| Unappropriated
profit brought forward |
|
8,344,899 |
3,457,270 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
52,013,936 |
13,010,200 |
|
|
|
| Appropriations |
|
|
|
|
| Transfer
to reserve under NBFI regulations |
8,733,807 |
1,910,586 |
|
|
| Transfer
to general reserve |
|
4,834,955 |
2,754,715 |
|
|
| Proposed
Dividend @ 15% |
|
22,500,000 |
|
|
|
|
|
|
---------- |
---------- |
|
|
|
|
36,068,762 |
4,665,301 |
|
|
|
|
---------- |
---------- |
|
| Unappropriated
profit carried forward |
|
15,945,174 |
8,344,899 |
|
|
|
=========== |
=========== |
|
|
|
| The
annexed notes form an integral part of these financial statements. |
|
|
|
|
|
STATEMENT OF CHANGES IN
FINANCIAL POSITION (CASH FLOW STATEMENT) |
|
|
FOR THE EIGHTEEN MONTHS
ENDED JUNE 30, 1996 |
|
|
|
|
|
For the 18 |
For the year |
|
|
|
months ended |
ended |
|
|
|
|
June |
December |
|
|
|
|
1996 |
1994 |
|
|
|
|
Rupees |
Rupees |
|
|
| Cash
flow from operating activities |
|
|
|
|
|
|
|
| Operating
profit before taxation |
|
44,321,788 |
9,958,741 |
|
|
| Adjustment
for: |
|
|
|
| Deferred
cost amortized |
|
1,775,470 |
392,751 |
|
|
| Depreciation |
|
2,460,683 |
578,872 |
|
|
| Provision
for doubtful debts/(written back) |
|
325,232 |
983,929 |
|
|
| Loss/(gain)
on disposal of fixed assets |
|
159,443 |
42,243 |
|
|
| Retirement
benefits |
|
101,301 |
|
|
|
|
|
--------- |
--------- |
|
|
| Operating
profit before working capital changes |
|
49,042,616 |
10,005,493 |
|
|
| Increase
in net investment in leases |
|
241,747,716 |
47,656,407 |
|
|
| Increase
in long-term deposits from customers |
|
21,020,261 |
5,148,985 |
|
|
| Increase
in accrued liabilities |
|
11,802,478 |
752,310 |
|
|
| Increase
in advances, deposits, prepayments and other |
|
|
| receivables |
|
13,870,812 |
1,591,870 |
|
|
|
|
--------- |
--------- |
|
|
| Cash
used in operations |
|
173,753,173 |
33,341,489 |
|
|
|
|
|
|
|
|
| Income
tax paid |
|
2,478,406 |
316,240 |
|
|
|
|
--------- |
--------- |
|
|
| Net
cash used in operating activities |
|
176,231,579 |
33,657,729 |
|
|
|
|
|
|
| Cash
flow from investing activities |
|
|
|
| Purchase
of fixed assets |
|
19,639,433 |
1,228,355 |
|
|
| Proceed
from sale of fixed assets |
|
1,932,665 |
195,225 |
|
|
| Long-term
loans (granted)/recovered |
|
470,255 |
38,290 |
|
|
| Addition
in long term deposits and deferred cost |
|
182,677,685 |
610,323 |
|
|
|
|
--------- |
--------- |
|
|
| Net
cash used in investing activities |
|
200,854,708 |
1,605,163 |
|
|
|
|
|
|
|
|
| Cash
flow from financing activities |
|
|
|
|
|
| Proceeds
from issue of share capital |
|
75,000,000 |
25,000,000 |
|
|
| Share
Premium |
|
56,250,000 |
|
|
| Proceeds
from long-term finances |
|
316,900,944 |
|
|
| Repayment
of long-term finance |
|
9,881,045 |
12,749,158 |
|
|
| (Repayment)/proceeds
of short-term finances |
|
31,299,906 |
25,000,000 |
|
|
| Proceed
from lease obligations |
|
1,303,800 |
|
|
|
| Repayment
of lease obligations |
|
350,725 |
|
|
|
|
|
--------- |
--------- |
|
|
| Net
cash flow from financing activities |
|
407,923,068 |
37,250,842 |
|
|
|
|
--------- |
--------- |
|
|
| Net
increase in cash and cash equivalents |
|
30,836,781 |
1,987,950 |
|
|
| Cash
and cash equivalents at beginning of the period |
10,369,683 |
8,381,733 |
|
|
|
--------- |
--------- |
|
| Cash
and cash equivalents at the end of the period (Note A) |
41,206,464 |
10,369,683 |
|
|
|
|
========== |
========== |
|
| Note
A. Cash and cash equivalents at the end of the period |
|
|
| Cash
and bank balances |
|
271,464 |
1,444,646 |
|
| Investments |
|
40,935,000 |
8,925,037 |
|
|
|
|
--------- |
--------- |
|
|
|
|
41,206,464 |
10,369,683 |
|
|
|
========== |
========== |
|
|
|
|
|
NOTES TO THE FINANCIAL
STATEMENTS FOR THE |
|
|
|
EIGHTEEN MONTHS ENDED
JUNE 30. 1996 |
|
|
|
|
|
| 1.
LEGAL STATUS AND NATURE OF BUSINESS |
|
|
| The
company was incorporated in Pakistan as a public limited company on April 7,
1987. |
|
| The
company commenced commercial operations in August 1989, and is listed on all
Stock |
|
| Exchanges
in Pakistan. Its prime business is leasing, and it is classified as a
Non-Banking |
|
| Financial
Institution (NBFI) by the State Bank of Pakistan. |
|
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
| 2.1
Accounting convention |
|
| These
financial statements have been prepared under the historical cost convention. |
|
|
|
|
| 2.2
Fixed Assets and Depreciation |
|
| (a) Owned |
|
| Fixed
assets are stated at cost less depreciation to date. Depreciation is charged |
|
| to
income by applying reducing balance method. Full years depreciation is |
|
| charged
on acquisitions during the year while no depreciation is charged on fixed |
|
| assets
disposed off during the year. |
|
|
|
|
| Normal
repairs and maintenance are charged to income as and when incurred. |
|
| Major
renewals and betterments are capitalized. |
|
|
|
|
| Gains
and losses on disposal of fixed assets, if any, are included in income
currently. |
|
|
|
| (b)
Assets Subject to Finance Leases |
|
| These
are stated at the lower of present value of minimum lease payments and |
|
| fair
value of assets acquired on lease. Assets so acquired are depreciated over |
|
| their
useful lives in the same manner as owned assets. Financial charge is |
|
| allocated
to accounting periods in a manner so as to produce a constant |
|
| periodic
rate of charge on the outstanding liability. |
|
|
|
| 2.3
Deferred Cost and Amortization |
|
| Deferred
costs are written off during a period not exceeding five years commencing |
|
| from
the year such costs are incurred. |
|
|
|
|
| 2.4
Investments |
|
| Investments
are valued at the lower of cost and market value determined on an |
|
| aggregate
portfolio basis. |
|
|
|
| 2.5
Taxation |
|
| (a)
Current |
|
| Provision
is made on taxable income at the prevailing rates of taxation after |
|
| taking
into account tax credits available, if any. |
|
| (b)
Deferred |
|
| The
company accounts for deferred taxation on all major timing differences like |
|
| ly
to reverse in the foreseeable future, using the liability method. |
|
|
|
|
| 2.6
Foreign Exchange Transactions |
|
| Transactions
in foreign currencies are accounted for in Rupees at the rate of exchange |
|
| ruling
on the date of transaction. Assets and liabilities in foreign currencies are |
|
| converted
into Rupees at the rate of exchange at the balance sheet date, except for |
|
| transactions
hedged for exchange risk, in such cases the difference on exchange is |
|
| allocated
until realized. |
|
|
|
| 2.7
Employees Retirement Benefits |
|
| The
company operates a contributory provident fund for all its confirmed
employees |
|
| and
contributions are made by the company and the employees in accordance with
the |
|
| fund
rules. |
|
|
|
| 2.8
Recognition of Lease Income |
|
| The
company follows the financing method in accounting for recognition of lease |
|
| income.
Accordingly, at the time of commencement of lease, the total unearned lease |
|
| finance
income consists of the excess of aggregate lease contracts receivable plus |
|
| any
residual value over the cost of the leased assets. This finance income is
then |
|
| allocated
over the lease term on a pattern reflecting a constant periodic return on the |
|
| company
s net investment outstanding in respect of the lease. |
|
| Front
end, commitment and other fees, if any, are taken to income when realized. |
|
|
|
|
| 3.
ISSUED, SUBSCRIBED AND PAID-UP CAPITAL |
|
|
|
| Ordinary
shares of Rupees 10/- each, fully paid in cash. |
|
|
|
|
| 1994 |
|
1996 |
|
|
June |
December |
|
| Number |
|
Number |
|
|
1996 |
1994 |
|
|
|
|
Rupees |
Rupees |
|
| 5,00O,OOO |
|
7,500,000 |
At beginning of the
period |
75,000,000 |
50,000,000 |
|
|
|
|
|
|
|
|
|
|
|
Issued during the |
|
|
|
| 2,500,000 |
|
7,500,000 |
period |
|
|
75,000,000 |
25,000,000 |
|
| ---------- |
|
---------- |
|
---------- |
---------- |
|
| 7,500,000 |
|
15,000,000 |
|
|
150,000,000 |
75,00O,000 |
|
| ============ |
|
============ |
|
|
============ |
============ |
|
|
|
|
|
|
|
|
| 4.
REVENUE RESERVES |
|
|
|
| Reserve
under NBFI regulations |
|
|
|
| Balance
at beginning of the period |
|
|
2,777,334 |
866,748 |
|
| Add:
Transfer during the period |
|
8,733,807 |
1,910,586 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
11,511,141 |
2,777,334 |
|
| General
Reserve |
|
|
|
| For
doubtful debts (Note 4.1) |
|
|
|
| Balance
at beginning of the period |
|
2,754,715 |
|
| Add:
Transfer during the period |
|
4,834,955 |
2,754,715 |
|
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
7,589,670 |
2,754,715 |
|
| Unappropriated
profit |
|
|
|
15,945,174 |
8,344,899 |
|
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
|
35,045,985 |
13,876,948 |
|
|
|
|
============ |
============ |
|
|
|
|
| 4.1
As a prudent business practice, amount is set aside out of profits to meet
future |
|
| business
losses, if any. |
|
|
|
|
|
|
|
|
| 5.
LONG-TERM FlNANCES-Secured |
|
|
|
|
|
|
June |
December |
|
|
|
1996 |
1994 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| Foreign
currency |
|
|
|
| From
Commonwealth Development |
|
| Corporation
(Note 5.1) |
|
164,893,317 |
|
|
|
| Local
currency |
|
| From
commercial and investment banks (Note 5.2) |
77,401,515 |
6,689,497 |
|
| From
a development financial institution (Note 5.3) |
664,739 |
4,129,813 |
|
| From
an investment company (Note 5.4) |
|
74,962,260 |
|
| From
a modaraba (Note 5.5) |
|
15,992 |
98,638 |
|
|
|
|
---------- |
---------- |
|
|
|
|
153,044,506 |
10,917,900 |
|
|
|
|
---------- |
---------- |
|
|
|
|
317,937,823 |
10,917,100 |
|
| Less:
Current maturity of long-term finances(Note 8) |
27,484,260 |
7,934,135 |
|
|
|
---------- |
---------- |
|
|
|
290,453,563 |
2,983,813 |
|
|
|
|
============ |
============ |
|
|
|
|
| 5.1
This represents the partial draw down of Pounds Sterling 5.000 million loan
obtained from |
|
| Commonwealth
Development Corporation, UK. The loan is repayable in twelve equal |
|
| semi-annual
installments commencing from May 1997. The rate of interest is 11.5% per |
|
| annum
and is secured by floating pari-passu charge, through hypothecation, over
certain |
|
| present
assets and first floating charge over certain present and all future assets
of the |
|
| company. |
|
|
|
| 5.2
The total sanctioned amount from commercial and investment banks under
mark-up |
|
| arrangements
amounted to Rupees 129.816 million (1994: Rupees 29.000 million). |
|
| These
loans carry mark-up ranging from paisas 0.036 to 0.049 (1994: paisas 0.043 to |
|
| 0.051)
per day. The commercial bank borrowing is repayable in twelve semi-annual |
|
| equal
installments commencing from May 1997, whereas only three consecutive |
|
| monthly
repayments are due against the investment bank borrowing. The commercial |
|
| bank
borrowing is secured against foreign currency deposits, included in note 15. |
|
| Investment
bank borrowing is secured by a floating pari-passu charge, through |
|
| hypothecation,
over certain assets of the company. |
|
|
|
| 5.3
The company has entered into sale and purchase agreement with a development |
|
| financial
institution. The repayment of the last installment is due in September 1996. |
|
| The
payment is secured against hypothecation of the related goods. |
|
|
|
| 5.4
This represents the sale and purchase agreement executed with an investment
company |
|
| with
purchase price payable under deferred payment plan and is secured against
foreign |
|
| currency
deposit, as shown in note 15. The payments due aggregate to Rupees 113.645 |
|
| million
repayable in twelve semi-annual installments commencing from May 1997. |
|
|
|
| 5.5
The company has entered into sale and purchase agreement with a modaraba. The
last |
|
| installment
of the purchase price is payable on August 1996. The payment is secured |
|
| against
hypothecation of the related goods. |
|
|
|
| 6.
LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE |
|
|
|
June |
December |
|
|
|
1996 |
1994 |
|
|
|
Rupees |
Rupees |
|
| Minimum
lease payments (Note 6.1) |
|
1,133,990 |
|
| Less:
Financial charges not yet due |
|
180,915 |
|
|
|
|
---------- |
---------- |
|
|
|
953,075 |
|
|
|
|
|
| Less:
Current maturity of liabilities against |
|
| assets
subject to finance lease (Note 8) |
393,435 |
|
|
|
---------- |
---------- |
|
|
|
559,640 |
|
|
|
============ |
============ |
|
| 6.1
The company has entered into lease agreements with leasing companies for
financing to |
|
| acquire
motor vehicles and office equipment. Payments under these agreements include |
|
| financial
charges ranging from 20% to 21.5% per annum, which are used as discounting |
|
| factors.
The future payments due are as follows: |
|
|
|
June |
December |
|
|
Year ending |
|
1996 |
1994 |
|
|
|
Rupees |
Rupees |
|
|
June
30, 1997 |
|
526,620 |
|
|
June 30, 1998 |
|
439,084 |
|
|
June
30, 1999 |
|
168,286 |
|
|
|
|
---------- |
---------- |
|
|
|
1,133,990 |
|
|
|
============ |
============ |
|
| 7.
LONG-TERM DEPOSITS |
|
|
| Security
deposits on leases (Note 7.1) |
39,164,282 |
18,144,021 |
|
| Less:
Current maturity of long-term |
|
| deposits
(Note 8) |
|
5,989,173 |
4,219,610 |
|
|
|
---------- |
---------- |
|
|
|
|
33,175,109 |
13,924,411 |
|
|
|
|
============ |
============ |
|
|
|
|
| 7.1
These represent security deposits received against lease contracts and are |
|
| repayable/adjustable
at the expiry/termination of the respective leases. |
|
|
|
| 8.
CURRENT MATURITY OF LONG-TERM LIABILITIES |
|
|
|
June |
December |
|
|
|
|
1996 |
1994 |
|
|
|
Rupees |
Rupees |
|
|
|
| Long-term
finances (Note 5) |
|
27,484,260 |
7,934,135 |
|
| Liabilities
against assets subject to finance |
|
|
|
| lease
(Note 6) |
|
393,435 |
|
|
| Security
deposits on leases (Note 7) |
|
5,989,173 |
4,219,610 |
|
|
|
---------- |
---------- |
|
|
|
33,866,868 |
12,153,745 |
|
|
|
============ |
============ |
|
| 9.
SHORT-TERM FINANCE - Secured |
|
|
|
| From
a commercial bank under mark-up |
|
|
|
|
| arrangement |
|
|
3,700,094 |
|
|
| From
investment banks and an |
|
| investment
company |
|
35,000,000 |
|
|
|
|
---------- |
---------- |
|
|
|
|
3,700,094 |
35,000,000 |
|
|
|
|
============ |
============ |
|
|
|
| This
represents finance facility sanctioned upto Rs. 7.500 million on yearly
renewal basis at |
|
| a
mark-up rate of paisas 0.045 per day and is secured by way of deposit of
Government |
|
| securities
included in note 17. |
|
|
|
| 10.
CREDITORS, ACCRUED AND |
|
| OTHER
LIABILITIES |
|
|
|
|
| Advance
lease rentals |
|
1,178,265 |
279,636 |
|
| Accrued
liabilities |
|
1,476,776 |
782,307 |
|
| Mark-up
payable on secured finances |
|
9,505,388 |
432,099 |
|
| Taxation |
|
|
|
242,812 |
|
| Cheques
issued but not presented |
|
965,015 |
|
|
| Other
liabilities |
|
293,345 |
122,269 |
|
|
|
|
---------- |
---------- |
|
|
|
|
13,418,789 |
1,859,123 |
|
| 11.
COMMITMENTS |
|
============ |
============ |
|
| Lease
proposals approved Rupees 30.000 million (1994: Rupees 5.000 million) |
|
|
|
|
| 12.
OPERATING ASSETS |
|
|
|
|
|
|
|
|
|
Cost as at |
Additions/ |
Cost |
Accumulated |
Written down |
Depreciation Depreciation |
|
|
|
|
January 1, |
(deletions)/ |
as at |
depreciation |
value as at |
for |
rate |
|
|
|
1995 |
(adjustments) |
June 30, |
as at June 30, |
June 30, |
the period |
% |
|
|
|
|
|
1996 |
1996 |
1996 |
|
|
|
|
|
|
|
-------------------------------- |
Rupees |
-------------------------------- |
|
|
|
|
| Office premises |
|
- |
11,809,442 |
11,809,442 |
787,422 |
11,022,020 |
787,422 |
5 |
|
|
|
|
| Furniture & fixtures |
584,972 |
876,661 |
1,014,461 |
173,968 |
840,493 |
169,749 |
15 |
|
|
|
|
(447,172) |
|
|
|
|
|
| Motor vehicles |
|
2,531,713 |
3,245,900 |
3,574,300 |
1,014,137 |
2,560,163 |
739,013 |
20 |
|
|
|
(2,203,313) |
|
|
|
|
| Office
equipment |
|
715,305 |
2,333,630 |
2,743,240 |
577,577 |
2,165,663 |
440,317 |
15 |
|
|
|
(305,695) |
|
|
|
|
| Computer software |
|
32,500 |
70,000 |
102,500 |
31,352 |
71,148 |
15,817 |
15 |
|
|
|
--------------------------------------------------------------------------- |
|
| 1996 Rupees |
|
3,864,490 |
18,335,633 |
19,243,943 |
2,584,456 |
16,659,487 |
2,152,318 |
|
|
|
(2,956,180) |
|
|
===================================================================================== |
|
| 1994 Rupees |
|
3,005,963 |
1,321,679 |
3,864,490 |
1,296,186 |
2,568,304 |
578,872 |
|
|
|
(238,378) |
|
|
|
|
(224,774) |
|
|
|
===================================================================================== |
|
| 12.1
Disposal of Fixed Assets |
|
|
|
|
|
|
|
| Particulars |
Cost |
Accumulated |
Written |
Sale |
Mode of |
|
Sold to |
|
|
depreciation |
down value |
proceeds |
disposal |
|
|
|
|
--- - ------- R u p e e
s---- --- ---- - |
|
| Motor
vehicle |
|
|
| Suzuki
Khyber |
288,750 |
96,030 |
|
170,720 |
173,000 |
By negotiation |
Mr. Faisal Yousaf
Karachi. |
|
| Suzuki
Khyber |
210,891 |
102,918 |
|
107,979 |
108,000 |
By negotiation |
Mrs. Siddiqui Karachi. |
|
| Suzuki
Margalla |
353,846 |
121,384 |
|
223462 |
227,000 |
By negotiation |
Mr. Taimur Ali, Karachi. |
|
| Toyota
Corolla |
592,820 |
213,415 |
|
379,405 |
341,465 |
By negotiation |
Mr. Javed A. Callea,
Karachi. |
| Honda
Civic EXI |
690,000 |
- |
|
690,000 |
680,000 |
By negotiation |
Abbas Sugar Mills
Limited, |
|
|
|
|
|
Karachi. |
|
| Motorcycle |
40,500 |
8,100 |
|
32,400 |
40,000 |
Insurance |
|
Adamjee Insurance Company |
|
|
|
|
|
Claim |
|
Limited, Karachi. |
|
| Motorcycle |
48,500 |
- |
|
48,500 |
48,500 |
Insurance |
|
Adamjee Insurance Company |
|
|
|
|
Claim |
|
Limited, Karachi. |
|
| Furniture
& Fixtures |
|
| Furniture |
|
100,000 |
27,750 |
|
72,250 |
33,333 |
By negotiation |
Mr. Javed A. Callea,
Karachi. |
| Furniture |
|
297,172 |
160,784 |
|
138,388 |
67,317 |
By negotiation |
Pacific Maritime (Pvt)
Limited |
|
|
|
|
Karachi. |
|
| Furniture |
|
25,000 |
3,750 |
|
21,250 |
16,687 |
By negotiation |
Mr. Kauhab Ansari,
Karachi. |
| Furniture |
|
25,000 |
- |
|
25,000 |
25,000 |
By negotiation |
Mr. Shahid A. Khan,
Karachi. |
|
|
|
|
|
| Office
equipment |
22,000 |
7,189 |
|
14,811 |
3,500 |
By negotiation |
FSA International,
Karachi. |
| Computer
equipment |
213,950 |
106,267 |
|
107,683 |
107,683 |
By negotiation |
Pacific Maritime (Pvt.)
Limited |
| Equipment |
|
|
|
Karachi. |
|
|
|
|
| Generator |
|
69,745 |
10,485 |
|
59,260 |
61,200 |
Insurance |
|
Adamjee Insurance Company |
|
|
|
Claim |
|
Limited, Karachi. |
|
|
-------------------------------------------- |
|
|
| 1996
Rupees |
2,956,180 |
864,072 |
2,092,108 |
1,932,665 |
|
|
|
================================================= |
|
|
| 1994
Rupees |
238,378 |
85,396 |
152,982 |
195,225 |
|
|
|
================================================= |
|
|
|
|
|
|
| 13.
ASSETS SUBJECT TO FINANCE LEASE |
|
|
|
|
|
|
|
|
Cost |
Additions |
Cost |
Accumulated |
Written |
Depreciation Depreciation |
|
|
|
as at |
|
as at |
depreciation |
down |
for the |
rate |
|
|
January |
|
June |
as at June |
value as at |
period |
% |
|
|
1, 1995 |
|
30, 1996 |
30, 1996 |
June |
|
|
|
|
|
|
|
30, 1996 |
|
|
--- - ------- R u p e e
s---- --- ---- - |
|
|
|
|
|
| Motor
vehicles |
- |
753,800 |
753,800 |
220,990 |
532,810 |
220,990 |
20 |
|
| Office
equipment |
- |
550,000 |
550,000 |
87,375 |
462,625 |
87,375 |
15 |
|
|
|
--------------------------------------------------------------------------- |
|
| 1996
Rupees |
- |
1,303,800 |
1,303,800 |
308,365 |
995,435 |
308,365 |
|
|
|
============================================================================ |
|
| 1994
Rupees |
- |
- |
- |
- |
- |
- |
|
|
============================================================================ |
|
|
|
|
| 14.
NET INVESTMENT IN LEASES |
|
|
|
|
|
|
June |
December |
|
|
|
|
|
1996 |
1994 |
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| Minimum
lease payments receivable |
|
461,564,760 |
160,626,944 |
|
| Add:
Residual value |
|
46,676,472 |
18,144,021 |
|
|
|
---------- |
---------- |
|
|
|
508,241,232 |
178,770,965 |
|
| Less:
Unearned finance income |
|
128,757,751 |
41,035,200 |
|
|
|
---------- |
---------- |
|
| Net
investment in leases |
|
379,483,481 |
137,735,765 |
|
| Less:
Current maturity of net investment |
|
| in
leases (Note 14.1) |
|
107,445,808 |
40,178,763 |
|
|
|
---------- |
---------- |
|
|
|
272,037,673 |
97,557,002 |
|
|
|
============ |
============ |
|
|
|
|
|
| 14.1
Current maturity of net investment in leases |
107,445,808 |
40,178,763 |
|
| Less:
Provision for potential lease losses |
371,049 |
45,817 |
|
|
|
|
---------- |
---------- |
|
|
107,074,759 |
40,132,946 |
|
|
============ |
============ |
|
|
|
| 15.
LONG-TERM DEPOSITS AND DEFERRED COST |
|
|
|
|
|
|
|
| Long-term
deposits (Note 15.1) |
|
165,033,647 |
- |
|
| Less:
Current maturity of long term |
|
|
|
|
|
deposits (Note 18) |
|
13,741,175 |
- |
|
|
|
---------- |
---------- |
|
|
|
|
151,292,472 |
- |
|
| Deferred
cost (Note 15.2) |
|
|
|
| At
beginning of the period |
|
|
1,053,538 |
2,021,845 |
|
| Add:
Addition during the period |
|
19,222,668 |
610,323 |
|
|
|
|
---------- |
---------- |
|
|
|
|
20,276,206 |
2,632,168 |
|
| Less:
Amortization to date |
|
|
3,354,100 |
1,578,630 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
|
16,922,106 |
1,053,538 |
|
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
168,214,578 |
1,053,538 |
|
|
|
|
============ |
============ |
|
|
| 15.1
This includes placement of foreign currency deposits with different financial
institutions |
|
| amounting
to Rupees 164.893 million at profit/mark-up rates declared by State Bank of |
|
| Pakistan
from time to time. |
|
|
|
|
|
|
|
|
|
| 15.2
The balance at end of the period represents: |
|
|
|
|
|
|
|
|
|
June |
December |
|
|
|
|
1996 |
1994 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| Fund
utilization expenses (Note 15.3) |
15,967,761 |
— |
|
| Right
issue expenses |
|
814,639 |
533,882 |
|
| Share
floatation expenses |
|
123,386 |
493,544 |
|
| Others |
|
|
16,320 |
26,112 |
|
|
|
---------- |
---------- |
|
|
|
16,922,106 |
1,053,538 |
|
|
|
============ |
============ |
|
|
|
| 15.3
This includes expenses incidental to foreign currency borrowing. |
|
|
|
| 16.
LONG-TERM LOAN - Considered good |
|
|
|
|
| Loan
to Chief Executive |
|
699,998 |
229,743 |
|
| Less:
Current maturity of long-term |
|
|
| loan
(Note 18) |
|
200,004 |
65,640 |
|
|
|
|
---------- |
---------- |
|
|
|
499,994 |
164,103 |
|
|
|
============ |
============ |
|
| Outstanding for periods
exceeding |
|
|
| three
years |
|
99,984 |
- |
|
| Others |
|
|
400,010 |
164,103 |
|
|
|
|
| This
represents balance outstanding on house building loan granted in accordance
with |
|
| terms
of appointment, repayable in monthly installments over four years. The loan
carries |
|
| 2%
service charges. Maximum aggregate amount due from Chief Executive at the end
of |
|
| any
month during the period was Rupees 0.800 million (1994: Rupees 0.262
million). |
|
|
|
|
|
| 17.
INVESTMENTS |
|
| Certificates
of investments (Note 17.1) |
31,000,000 |
7,516,807 |
|
| Government
securities (Note 17.2) |
9,935,000 |
1,408,230 |
|
|
|
---------- |
---------- |
|
|
|
40,935,000 |
8,925,037 |
|
|
|
============ |
============ |
|
|
|
|
|
|
|
| 17.1
These represent Certificates of Investments (Cols) of different financial
institutions and |
|
| carry
return ranging from paisas 0.051 to 0.053 per day. |
|
|
|
| 17.2
These represent investments in Federal Investment Bonds carried as per NBFI
regulations |
|
| issued
by the State Bank of Pakistan. |
|
|
|
| 18.
ADVANCES, DEPOSITS, PREPAYMENTS AND |
|
| OTHER
RECEIVABLES |
|
|
|
June |
December |
|
|
|
1996 |
1994 |
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| Current
maturity of long-term loans (Note 16) |
200,004 |
65,640 |
|
|
Advance - Considered good |
|
|
- to staff (Note 18.1) |
|
178,180 |
18,139 |
|
|
- against expenses |
|
124,733 |
49,489 |
|
|
- against leases |
|
1,499,000 |
- |
|
|
- others |
|
9,250 |
2,165,000 |
|
| Current
maturity of long-term deposits (Note 15) |
13,741,175 |
- |
|
| Taxation |
|
|
1,582,843 |
- |
|
| Prepayments |
|
177,807 |
413,353 |
|
| Receivable
against sale of shares |
|
3,125,000 |
- |
|
| Mark-up
due from lessees |
|
3,663,612 |
73,594 |
|
| Mark-up
due on certificates/securities |
|
6,107,111 |
- |
|
| Other
receivables |
|
1,872,943 |
167,249 |
|
|
|
|
---------- |
---------- |
|
|
|
|
32,281,658 |
2,952,464 |
|
|
|
|
============ |
============ |
|
|
|
| 18.1
Aggregate amount due by the executives Rupees 0.158 million (1994: Nil).
Maximum |
|
| amount
due from executives at the end of any month during the period aggregated to |
|
| Rupees
0.198 million (1994: Nil) |
|
|
|
|
| 19.
CASH AND BANK BALANCES |
|
| Cash
in hand |
|
7,999 |
10,067 |
|
| Cash
with banks on |
|
| -
current accounts (Note 19.1) |
|
205,722 |
1,162,434 |
|
| -
deposit accounts |
|
1,905 |
33,418 |
|
| - collection accounts |
|
538 |
238,727 |
|
| -
foreign currency accounts |
|
55,300 |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
271,464 |
1,444,646 |
|
|
|
============ |
============ |
|
|
|
|
| 19.1
This includes Rupees 0.020 million (1994: Nil) in current account maintained
with State |
|
| Bank
of Pakistan under NBFI regulations. |
|
|
|
|
| 20.
INCOME FROM LEASE OPERATIONS |
|
| Income
on lease contracts |
|
59,029,912 |
21,476,381 |
|
| Front
end fee |
|
1,755,438 |
377,162 |
|
| Documentation
charges |
|
451,609 |
20,000 |
|
|
|
---------- |
---------- |
|
|
|
61,236,959 |
21,873,543 |
|
|
|
============ |
============ |
|
| 21.
OTHER INCOME |
|
| Profit/return
earned (Note 21.1) |
|
19,281,310 |
1,040,528 |
|
| (Loss)
/ Gain on disposal of fixed assets |
159,443 |
42,243 |
|
| Provision
for doubtful debts written back |
- |
1,029,746 |
|
| Miscellaneous |
|
502,952 |
145,310 |
|
|
|
|
|
---------- |
---------- |
|
|
|
19,624,819 |
2,257,827 |
|
|
|
|
============ |
============ |
|
|
| 21.1
Profit/return Earned |
|
|
|
|
|
| Foreign
currency deposits |
|
3,954,332 |
- |
|
|
| Certificates
of Investments |
|
10,002,811 |
863,804 |
|
|
| Government
securities |
|
5,314,834 |
176,724 |
|
|
| Others |
|
9,333 |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
19,281,310 |
1,040,528 |
|
|
|
|
|
============ |
============ |
|
|
|
|
| 22.
ADMINISTRATIVE AND OPERATING EXPENSES |
|
|
| Salaries
and allowances including |
|
|
|
| directors
remuneration (Note 24) |
|
6,381,207 |
3,323,234 |
|
| Staff
training expenses |
|
|
48,792 |
11,800 |
|
| Rent,
rate and taxes |
|
|
392,407 |
220,969 |
|
| Travelling
and conveyance |
|
462,399 |
111,615 |
|
| Vehicle
running expenses |
|
514,069 |
315,529 |
|
| Utilities |
|
469,363 |
99,682 |
|
| Telephone
and Fax |
|
356,398 |
233,831 |
|
| Insurance |
|
421,914 |
204,456 |
|
| Fee,
subscriptions and periodicals |
|
212,263 |
175,889 |
|
| Printing
and stationery |
|
483,955 |
205,717 |
|
| Postage,
stamps and telegrams |
|
141,749 |
82,003 |
|
| Legal
and professional charges |
|
294,798 |
328,152 |
|
| Auditors
remuneration (Note 22.1) |
|
135,000 |
55,000 |
|
| Repairs
and maintenance |
|
462,735 |
220,060 |
|
| Depreciation |
|
2,460,683 |
578,872 |
|
| Advertisement |
|
236,999 |
245,574 |
|
| Miscellaneous |
|
181,660 |
88,761 |
|
|
|
---------- |
---------- |
|
|
|
13,656,391 |
6,501,144 |
|
|
|
============ |
============ |
|
| 22.1
Auditors remuneration |
|
|
|
| Statutory
audit fee |
|
35,000 |
25,000 |
|
| Half
year audit fee |
|
17,500 |
|
| Special
Audit fee |
|
15,000 |
25,000 |
|
| Taxation
charges |
|
60,000 |
|
| Out-of-Pocket
expenses |
|
7,500 |
5,000 |
|
|
|
---------- |
---------- |
|
|
|
135,000 |
55,000 |
|
|
|
============ |
============ |
|
| 23.
FINANCIAL CHARGES |
|
|
|
| Mark
up on long-term finances |
|
15,107,178 |
3,290,659 |
|
| Mark
up on short-term finances |
|
4,727,384 |
3,906,536 |
|
| Bank
& other charges |
|
|
948,335 |
35,722 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
20,782,897 |
7,232,917 |
|
|
|
|
|
============ |
============ |
|
|
|
|
| 24.
REMUNERATION OF CHIEF EXECUTIVE AND OTHER EXECUTIVES |
|
|
|
|
|
|
For the Eighteen Months |
For the year ended |
|
|
|
June 30. 1996 |
|
December. 31 1994 |
|
|
|
------------------------- |
------------------------- |
|
|
|
Chief |
Executive |
Total |
Chief |
Executive |
Total |
|
|
|
Executive |
|
Executive |
|
|
|
-------- |
R u p e e s |
-------- |
-------- |
R u p ee s |
-------- |
|
|
|
| Managerial |
|
|
|
| remuneration |
|
995,000 |
1,123,320 |
2,118,320 |
510,000 |
564,000 |
1,074,000 |
|
| Housing
and utility |
365,000 |
655,266 |
1,020,266 |
255,000 |
282,000 |
537,000 |
|
| Company
s contribution |
|
|
|
|
| to
provident fund |
|
73,000 |
97,190 |
170,190 |
51,000 |
56400 |
107,260 |
|
| Leave
fare assistance |
662,440 |
116,940 |
779,380 |
|
|
|
|
-------------------------------- |
-------------------------------- |
|
| Total
Rupees |
|
2,095,440 |
1,992,716 |
4,088,156 |
816,000 |
902,400 |
1,718,400 |
|
|
|
=============================== |
=============================== |
|
| Number
of Persons |
|
1 |
5 |
|
1 |
4 |
|
|
|
|
======================== |
|
======================== |
|
|
|
|
| In
addition, the Chief Executive and executives were provided with free use of
company |
|
| cars.
Directors were paid Rupees 7,500 for attending board meetings during the
period. |
|
|
|
|
| 25.
TAXATION |
|
|
|
|
June |
December |
|
|
1996 |
1994 |
|
|
Rupees |
Rupees |
|
| Current |
|
|
|
For the period |
652,751 |
276,271 |
|
|
For prior years |
|
129,540 |
|
|
|
|
---------- |
---------- |
|
|
|
652,751 |
405,811 |
|
|
|
|
============ |
============ |
|
|
|
|
|
|
| Deferred |
|
|
There is no liability on
account of deferred taxation as at June 30, 1996. |
|
|
|
|
| 26.
GENERAL |
|
| Certain
prior year s figures have been re-arranged wherever necessary for the purpose
of |
|
| comparison. |
|
|
|
|
| ABDUL
JABBAR KASIM |
|
NESSAR AHMED |
|
| CHIEF
EXECUTIVE |
|
DIRECTOR |
|
|
|
|
|
|
PATTERN OF HOLDING OF
SHARES HELD |
|
|
BY THE SHAREHOLDERS AS AT
30TH JUNE, 1996 |
|
|
|
|
|
|
SHARE HOLDING |
|
| No.
of Shareholders |
From |
To |
Total Shares Held |
|
|
|
|
|
|
2 |
|
1 |
100 |
|
180 |
|
|
20 |
|
101 |
500 |
|
7530 |
|
|
39 |
|
501 |
1000 |
|
32670 |
|
|
95 |
|
1001 |
5000 |
|
214560 |
|
|
19 |
|
5001 |
10000 |
|
152850 |
|
|
13 |
|
10001 |
15000 |
|
150180 |
|
|
5 |
|
15001 |
20000 |
|
82640 |
|
|
10 |
|
20001 |
25000 |
|
238500 |
|
|
2 |
|
25001 |
30000 |
|
56800 |
|
|
2 |
|
30001 |
35000 |
|
60960 |
|
|
3 |
|
35001 |
40000 |
|
112000 |
|
|
1 |
|
40001 |
45000 |
|
43200 |
|
|
1 |
|
50001 |
55000 |
|
52000 |
|
|
4 |
|
55001 |
60000 |
|
233800 |
|
|
1 |
|
60001 |
65000 |
|
63950 |
|
|
1 |
|
75001 |
80000 |
|
78400 |
|
|
1 |
|
95001 |
100000 |
|
96000 |
|
|
1 |
|
140001 |
145000 |
|
143500 |
|
|
1 |
|
195001 |
200000 |
|
197800 |
|
|
1 |
|
445001 |
450000 |
|
448300 |
|
|
1 |
|
500001 |
505000 |
|
504000 |
|
|
1 |
|
640001 |
645000 |
|
644800 |
|
|
1 |
|
825001 |
830000 |
|
825600 |
|
|
1 |
|
1055001 |
1060000 |
|
1059100 |
|
|
1 |
|
1075001 |
1080000 |
|
1077000 |
|
|
1 |
|
1450001 |
1455000 |
|
1454000 |
|
|
1 |
|
1695001 |
1700000 |
|
1696880 |
|
|
1 |
|
2270001 |
2275000 |
|
2272800 |
|
|
1 |
|
2995001 |
3000000 |
|
3000000 |
|
|
-------- |
|
|
-------- |
|
|
231 |
|
|
15000000 |
|
|
======== |
|
|
======== |
|
|
|
|
|
|
| ------------------------------------------------------------- |
|
|
| Categories
of Shareholders |
Number |
Shares Held |
Percentage |
|
|
| ------------------------------------------------------------- |
|
|
| Individuals |
|
204 |
1278520 |
8.523 |
|
|
| Investment
Companies |
3 |
144640 |
0.964 |
|
|
| Insurance
Companies |
2 |
71200 |
0.474 |
|
|
| Joint
Stock Companies |
6 |
3014300 |
20.095 |
|
|
| Financial
Institutions |
7 |
3620200 |
24.136 |
|
|
| Modaraba
Companies |
|
1 |
644800 |
4.299 |
|
|
| Others |
|
|
8 |
6226340 |
41.509 |
|
|
| ------------------------------------------------------------- |
|
|
| T o t a 1 |
|
|
231 |
15000000 |
100.000 |
|
|
| ============================================================= |
|
| Others |
|
|
|
| Modarabas |
|
|
6 |
2400740 |
16.005 |
|
|
| Non
Residents |
|
2 |
3825600 |
25.504 |
|
|
| ------------------------------------------------------------- |
|
| T o t a 1 |
|
|
8 |
6226340 |
41.509 |
|
| ============================================================= |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
