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| Annual
Report 1996 |
|
| ENGLISH
LEASING LIMITED |
|
|
|
| EL to |
|
| PROGRESS
& PROSPERITY |
|
|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
| Sheikh
Javaid Mahmood |
|
Chairman & Managing
Director |
|
| Sheikh
Manzoor Elahi |
|
Chief Executive |
|
| Sheikh
Irshad Ahmad |
|
Director Marketing |
|
| Mr.
Muhammad Saad Munair |
|
|
|
| Mr.
Mohammad Rashid Zahir |
|
Nominee of SAPICO |
|
| Mr.
Shahid Ghaffar |
|
|
Nominee of NIT |
|
| Mrs.
Taskeen Javaid |
|
|
| COMPANY
SECRETARY |
|
| Mr.
Muhammad Ashfaque |
|
|
|
|
| BANKERS |
|
| Allied
Bank of Pakistan Limited |
|
| Muslim
Commercial Bank Limited |
|
| The
Bank of Khyber |
|
| Prudential
Commercial Bank Ltd, |
|
| Indus
Bank Ltd, |
|
| The
Bank of Punjab |
|
|
| AUDITORS |
|
| Rahim
Iqbal Rafiq & Co., |
|
| Chartered
Accountants |
|
|
|
|
| LEGAL
ADVISOR |
|
| Mr.
Azad Bin Holder |
|
|
|
|
| REGISTRARS
& SHARE |
|
| TRANSFER
OFFICE |
|
| C
& K Management Associates (Pvt,) Limited |
|
| 404,
Trade Tower, Abdullah Haroon Road, |
|
| Near
Metropole Hotel, Karachi, |
|
|
|
|
| REGISTERED
OFFICE |
|
| 627,
Mohammadi House |
|
| I.I.
Chundrigar Road, Karachi. |
|
| Tel:
2412608 - 2419274 - 2421962 |
|
| Fax:
9221-2427341 |
|
|
|
| PRINCIPAL
OFFICE |
|
| M.
K. Arcade |
|
| 32-Davis
Road, |
|
| Lahore. |
|
| Tel:
6303855-58 |
|
| Fax:
9242-6304251 |
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that Fifth Annual General Meeting of the shareholders of
English |
|
| Leasing
Limited will be held at Holiday Inn Crowne Plaza Karachi on Saturday,
December 28, |
|
| 1996
at 10:30 a.m. to transact the following business :- |
|
|
| 1.
To confirm Minutes of the Fourth Annual General Meeting held on December 28,
1995, |
|
|
|
|
| 2.
To receive, consider and adopt the Audited Accounts of the Company for the |
|
| period
ended June 30, 1996 together with the Directors' and Auditors' Report there- |
|
| on. |
|
|
|
| 3.
To appoint Auditors for the year 1996-97 and fix their remuneration. The
present |
|
| Auditors M/s Rahim Iqbal Rafiq & Co.
Chartered Accountants, retire and being eligible, |
|
| offer themselves for reappointment. |
|
|
| 4.
To transact any business which may be placed before the Meeting with the
permission |
|
| of
the Chair, |
|
|
|
|
| By
Order of the Board |
|
| (Sheikh
Manzoor Elahi) |
|
| Chief
Executive |
|
|
|
| Karachi:
December 07, 1996 |
|
|
|
|
| Notes: |
|
| 1.
The Share Transfer Books of the Company will remain closed from December 21, |
|
| 1996
to December 28, 1996 (both days inclusive). |
|
|
| 2.
A member entitled to attend and vote at this Meeting is entitled to appoint
another |
|
| member
as his/her proxy to attend and vote instead of him/her. Proxies, in order to
be |
|
| effective,,
must be received at the Registered office of the Company not less than 48 |
|
| hours
before the time for holding the Meeting. |
|
|
| 3.
Members are required to notify the change of address, if any, immediately. |
|
|
| 4.
As per CLA Notification dated May, 1991, no gift will be given to the
shareholders. |
|
|
| CHAIRMAN'S
REVIEW |
|
| On
behalf of the Board of Directors, I am pleased to present the Fifth Annual
Report of your |
|
| company
and place before you salient features of its operations for the period ended
June |
|
| 30,
1996. |
|
|
| ECONOMY
AT A GLANCE |
|
| The
period from July 1995 to June 1996 suffered economic and industrial
depression due to |
|
| fiscal
deficits, declining exports, escalating inflation, increase in local &
foreign bank borrow- |
| ings,
deficit in revenue collection, decline in GDP growth, imposition of new taxes
coupled |
|
| with
social dilemmas like law & order crises, public confrontation,
polarisation of masses. The |
| wobbling
economy of the country needs serious thoughts to tackle the situation.
Inspite of |
|
| big
claims, most of the growth targets have not been achieved and country is
heading |
|
| towards
turmoil. The new direct & indirect taxes levied during the year in shape
of General |
|
| Sales
Tax, Sales Tax on Import, Central Excise, Regulatory duty, enhanced Oil, Gas
and |
|
| Electricity
charges coupled with devaluation of Pak Rupee has driven the industrial and |
|
| commercial
classes alike to the stage of even suspending their operations, inflicting
colossal |
| loss
of revenue to the National Exchequer. Textile Sector on account of
consecutive crop |
|
| failures
was already in critical stage so much so that even a relief package offered
by the |
|
| Government
failed to bring any improvement. Cement, Polyester Fibre, Ghee, Engineering
& |
|
| Sugar
Industries which were performing well are now facing problems due to hike in |
|
| electricity,
furnace oil, gas prices, new taxation in the form of Sales Tax, regulatory
duty and |
| continued
devaluation of our currency raising the cost of imported machinery, spares
and |
|
| raw
material increasing the production costs unabsorbable for the local consumer.
How- |
|
| ever,
through the budgetary measures and fiscal policies adopted toward the end of
1995 |
|
| by
the Government. G.D.P. growth rate of around 6% for the year 1995-96 as
against 4.7% in |
|
| the
year 1994-95 has been achieved through improvement mainly in the Agriculture
Sector. |
|
| Capital
market has witnessed bearish sentiments, as a result Karachi Stock Exchange
index |
|
| shrinked
from 2049 level as at December 31, 1995 to 1730 as on June 30, 1996. The
trend is |
|
| considered
to be temporary being guided altogether by negative attitude compelling the |
|
| share
prices of otherwise financially sound companies lower than their actual break
up |
|
| value,
correction as such has to come with slightest improvement in the overall
country's |
|
| political
and economic climate. |
|
|
| REVIEW
OF OPERATIONS |
|
| Operating
in highly depressed conditions, your company has performed well and it is
gratify- |
|
| ing
that during the period from 1st July 1995 to 30th June, 1996, the company
made gross |
|
| lease
disbursements of Rs. 127.182 million raising total disbursement to Rs.
407.345 million |
|
| generating
total revenue of Rs. 36.928 million and inspite of high inflation,
expenditure was |
|
| kept
under tight control. Total expenditure of Rs. 22.029 million was incurred
against Rs. |
|
| 13.549
million of previous six months and thus earned net profit of Rs. 14.899
million (before |
| taxation). |
|
|
| Lease
Assets portfolio comprised mainly of Machinery (78%) with a view to invest
maximum |
|
| in
productive assets as a master of policy while the balance cares for Passenger
Vehicles |
|
| 18%,
office equipment and Commercial vehicle 2% each. Similarly financing in less
vul- |
|
| nerable
with minimum risk element, industrial and commercial sectors have been
preferred |
|
| avoiding
textile being presently problematic. During the period our exposure in the
textile |
|
| has
rather been significantly reduced to Textile Processing (13%) Textile Weaving
(8%) Textile |
| Spinning
(4%) from 18%, 13% & 6% respectively in the preceeding year. Lease
portfolio of |
|
| each
sector is closely watched to monitor the risk factor of each sector. Rest of
the portfolio |
| consists
of Synthetic Fibres (8%) Sugar (26%) Pharmaceutical and pesticides (13%)
Engineer- |
|
| ing
(4%) Rice (3%) Electrical Goods (3%) Plastic (3%) Food and Allied (2%) Paper
& Board |
|
| (1%)
Beverage (1%) Leather (2%) Trading (1%) and Miscellaneous (8%). |
|
|
| RECOVERIES: |
|
| Sluggish
economic conditions and depressed market behaviour have upset cash flows of |
|
| almost
every business and industry consequently entire Financial Sector is facing
acute |
|
| recovery
problems but inspite of difficult circumstances our recovery rate remained as
high |
|
| as
88.43% which has since improved to 91.46% as a result of our active follow up
and close |
|
| monitoring. |
|
|
| RESOURCE
MOBILIZATION & FUTURE OUTLOOK: |
|
| Resource
mobilization is most important for continued development and progress of
every |
|
| leasing
company. This area has always received our top priority. We have been
reclining so |
|
| far
on local credit lines from banks and DFIs and managed to secure 11 lines
aggregating |
|
| Rs.
129.00 million which is being repaid alongwith mark up periodically exactly
on time, |
|
| leaving
Rs. 42.314 million only with us. At this stage we undoubtedly need further
credit lines |
| to
maintain the pace of our developmental activities and progress but due to
liquidity |
|
| crunch,
availability of funds from local market and DFIs has become quite difficult.
Efforts |
|
| were
made side by side for some foreign credit lines which too was not easy on
account of |
|
| high
country risk in view of growing tension in the region as well as, law and
order situation & |
| political
conditions, but you will be pleased to know that your company succeeded in |
|
| materializing
one credit line of Asian Development Bank under Financial Sector Intermedia- |
|
| tion
Loan (FSIL) of 100 million Dollars on first come first serve basis. |
|
|
| CERTIFICATES
OF INVESTMENT (COl's): |
|
| Inspite
of tight economic conditions, funds aggregating Rs. 42.99 million as at 30th
June, |
|
| 1996
have been mobilized from the general public and institutions in COIs
reflecting investors |
| confidence
in English Leasing Limited. Presently deposit in COIs are both of short term
and |
|
| long
term maturities, ratio being 70% and 30% respectively. It is targeted to
focus more and |
|
| more
on long term funds to match our Assets / Liabilities position. We are hopeful
of achiev- |
|
| ing
good results under this avenue through public support and determined
collective efforts |
|
| of
our staff. We except overall conditions to improve in coming months and look
forward to |
|
| better
future. |
|
|
| ACKNOWLEDGMENT |
|
| I,
convey my thanks to the Ministry of Finance, State Bank of Pakistan,
Corporate Law |
|
| Authority,
Financial Institutions and our valuable customers as well as shareholders for
the |
|
| valuable
guidance and continued support extended to us. I also express my
appreciations |
|
| for
the dedication and hard work put in by all staff members of the Company. |
|
|
| (SHEIKH
JAVAID MAHMOOD) |
|
| Chairman |
|
|
| DIRECTORS'
REPORT |
|
| Your
Directors endorse the accompanying Chairman Review on the activities of the |
|
| Company
and feel pleasure in presenting the Fifth Annual Report together with the
Audited |
|
| Accounts
of the Company for the period ended June 30, 1996. |
|
|
| Financial
highlights of the Company are as follows: |
|
|
| Financial
Highlights: |
|
Rupees |
|
|
|
|
|
|
| Profit
after tax |
|
12,602,454 |
|
| Unappropriated
profit brought forward |
|
4,160,961 |
|
| Profit
available for appropriation |
|
16,763,415 |
|
|
|
|
|
|
| Appropriations |
|
| Transfer
to Statutory Reserve |
|
2,520,491 |
|
| Transfer
from General Reserve |
|
(1,000,000) |
|
| Transfer
to Contingencies Reserve |
|
952,632 |
|
| Proposed
dividend @ 17.50% |
|
14,000,000 |
|
|
|
|
----------- |
|
|
|
|
16,473, 123 |
|
|
|
|
|
|
|
----------- |
|
| Unappropriated
Profit Carried Forward |
|
290,292 |
|
|
=========== |
|
|
|
| Auditors: |
|
| The
present auditors, Messrs Rahim Iqbal Rafiq and Company, Chartered
Accountants, retire |
|
| and
being eligible offer themselves for reappointment. |
|
|
| Pattern
of Shareholding: |
|
| Pattern
of shareholding is annexed. |
|
|
| For
and on behalf of the Board |
|
|
| Sheikh
Manzoor Elahi |
|
| Chief
Executive |
|
|
| Dated
: November 02, 1996. |
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| We
have audited the annexed balance sheet of English Leasing Limited as at June
30, 1996 |
|
| and
the related profit and loss account and statement of changes in financial
position (cash |
|
| flow
statement) 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 and, after
due |
|
| verification
thereof, 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 |
|
| thereon
have been drawn up in conformity with the Companies Or- |
|
| dinance,
1984 and are in agreement with the books of account and are |
|
| further
in accordance with accounting policies consistently applied; |
|
|
| (ii)
the expenditure incurred during the year 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
explana- |
|
| tions given to us, the balance sheet,
profit and loss account and the statement |
|
| of changes in financial position (cash flow
statement) together with the notes |
|
| forming part thereof, give the information
required by the Companies Or- |
|
| dinance, 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 30, 1996 and of the profit |
|
| and the changes in financial position (cash
flow) for the year then ended; and |
|
|
| (d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr |
|
| Ordinance,
1980. |
|
|
| Rahim
Iqbal Rafiq & Co. |
|
| Chartered
Accountants |
|
|
|
|
| Lahore: |
|
| Dated
: November 02, 1996 |
|
|
| BALANCE
SHEET |
|
| AS
AT JUNE 30, 1996 |
|
|
|
(12 Months) |
(6 Months) |
|
|
|
|
|
1996 |
1995 |
|
|
|
|
NOTE |
RUPEES |
RUPEES |
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
|
| SHARE
CAPITAL |
|
| Authorised |
|
| 50,000,000
(1995: 10,000,000) |
|
|
|
| Ordinary
shares of Rs. 10 each |
|
|
500,000,000 |
100,000,000 |
|
|
|
|
|
============ |
============ |
|
|
|
|
| Issued,
subscribed and paid-up |
|
| 8,000,000
(1995: 8,000,000) Ordinary |
|
|
|
| shares
of Rs, 10 each fully paid in cash |
|
80,000,000 |
80,000,000 |
|
|
|
|
| Capital
reserves |
|
|
3 |
11,601,433 |
9,080,942 |
|
| Revenue
reserves |
|
|
4 |
17,883,737 |
17,931,105 |
|
| Unappropriated
profit |
|
|
290,292 |
4,160,961 |
|
|
|
|
------------ |
------------ |
|
|
|
|
109,775,462 |
111,173,008 |
|
|
|
|
|
|
| LONG
TERM FINANCE - |
|
|
5 |
19,928,989 |
24,673,369 |
|
|
|
|
|
|
|
| LONG
TERM DEPOSITS |
|
|
6 |
27,086,309 |
21,482,851 |
|
|
|
|
|
|
|
| LONG
TERM CERTIFICATES OF INVESTMENT |
|
7 |
12,666,305 |
100,000 |
|
|
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
| Current
maturity of long term liabilities |
|
32,806,741 |
32,407,210 |
|
| Short
term finance |
|
|
8 |
15,554,839 |
16,371,469 |
|
| Short
term certificates of investment |
|
7 |
30,300,000 |
1,080,000 |
|
| Creditors,
accrued and other liabilities |
9 |
4,573,681 |
2,369,564 |
|
| Taxation |
|
|
480,407 |
768,974 |
|
| Unclaimed
dividend |
|
|
137,129 |
139,777 |
|
| Proposed
dividend |
|
|
1,400,000 |
-- |
|
|
|
|
------------ |
------------ |
|
|
|
|
97,852,797 |
53, 136,994 |
|
|
|
|
|
|
| CONTINGENCY
AND COMMITMENT |
|
|
10 |
-- |
-- |
|
|
|
|
------------ |
------------ |
|
|
|
|
267,309,862 |
210,566,222 |
|
|
|
|
=========== |
=========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
| SHEIKH
MANZOOR ELAHI |
|
| Chief
Executive |
|
|
|
1996 |
1995 |
|
|
|
NOTE |
RUPEES |
RUPEES |
|
|
|
(12 Months) |
(6 Months) |
|
|
| FIXED
CAPITAL EXPENDITURE |
|
| Tangible
Fixed Assets |
|
11 |
4,567,012 |
5,390,498 |
|
| Advance
for-Office Premises |
|
|
1,857,000 |
1,657,000 |
|
|
|
|
------------ |
------------ |
|
|
|
|
6,424,012 |
7,047,498 |
|
|
|
|
|
|
| NET
INVESTMENT IN LEASES |
|
12 |
148,433,054 |
99,983,651 |
|
|
|
|
|
|
|
| LONG
TERM INVESTMENTS |
|
13 |
17,310,875 |
17,310,875 |
|
|
|
|
|
|
|
| LONG
TERM DEPOSITS AND DEFERRED COST |
|
14 |
504,603 |
1,245,091 |
|
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
| Current
portion of net investment |
|
|
| in
leases |
|
|
70,753,779 |
71,571,601 |
|
|
|
|
| Investment
in quoted shares against |
|
|
| sale
purchase contract |
|
|
2,805,149 |
2,603,271 |
|
|
|
|
| Short
term investments |
|
15 |
884,250 |
1,291,250 |
|
|
|
|
| Loans,
advances, prepayments and |
|
|
| other
receivables |
|
16 |
14,328,655 |
9,015,900 |
|
|
|
|
| Cash
and bank balances |
|
17 |
5,865,485 |
497,085 |
|
|
|
|
------------ |
------------ |
|
|
|
|
94,637,318 |
84,979,107 |
|
|
|
|
|
|
|
------------ |
------------ |
|
|
|
|
|
267,309,862 |
210,566,222 |
|
|
|
|
=========== |
=========== |
|
|
| SHEIKH
JAVAID MEHMOOD |
|
| MANAGING
DIRECTOR |
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE PERIOD ENDED JUNE 30, 1996 |
|
|
|
Six months |
|
|
|
|
Year ended |
ended |
|
|
|
NOTE |
June 30, |
June 30, |
|
|
|
|
1996 |
1995 |
|
|
|
|
RUPEES |
RUPEES |
|
|
| REVENUE |
|
| Income
from lease operations |
|
18 |
35,335,009 |
17,733,922 |
|
| Gain
on sale of securities |
|
|
514,181 |
500,621 |
|
| Other
Income |
|
|
19 |
1,079,486 |
450,145 |
|
|
|
|
------------ |
------------ |
|
|
|
|
36,928,676 |
18,684,688 |
|
| EXPENDITURE |
|
|
| Financial
and bank charges |
|
|
20 |
11,811,398 |
7,265,959 |
|
| Administrative
and operating expanses |
|
21 |
8,713,102 |
4,149,702 |
|
| Provision
for doubtful debts |
|
|
1,239,998 |
|
| Provision
for dmimnution in investment |
|
|
482,000 |
2,133,750 |
|
|
|
|
------------ |
------------ |
|
|
|
|
22,246,498 |
13,549,411 |
|
|
|
|
|
|
|
------------ |
------------ |
|
| PROFIT
BEFORE TAXATION |
|
|
14,682,178 |
5,135,277 |
|
|
|
|
|
|
| PROVISION
FOR TAXATION |
|
|
| Current
year |
|
|
22.1 |
515,225 |
230,568 |
|
| Prior
year |
|
|
|
1,564,499 |
-- |
|
|
|
|
------------ |
------------ |
|
|
|
|
2,079,724 |
230,568 |
|
|
|
|
|
|
|
|
|
------------ |
------------ |
|
| PROFIT
AFTER TAXATION |
|
|
12,602,454 |
4,904,709 |
|
|
|
|
|
|
|
| Unappropriated
profit brought forward |
|
4,160,961 |
1,168,299 |
|
|
|
|
------------ |
------------ |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
16,763,415 |
6,073,008 |
|
| APPROPRIATIONS |
|
|
| Transfer
to statutory reserve |
|
2,520,491 |
980,942 |
|
| Transfer
from general reserve |
|
(1,000,000) |
-- |
|
| Transfer
to contingencies reserve |
|
952,632 |
931,105 |
|
|
|
|
------------ |
------------ |
|
| Proposed
dividend @ 17,5% (1995: NIL) |
|
14,000,000 |
-- |
|
|
|
|
|
|
|
16,473,123 |
1,912,047 |
|
|
|
|
------------ |
------------ |
|
| UNAPPROPRIATED
PROFIT CARRIED FORWARD |
|
290,292 |
4,160,961 |
|
|
|
|
|
============ |
============ |
|
|
|
|
|
|
|
| The
annexed notes form an integral part of these accounts, |
|
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| FOR
THE PERIOD ENDED JUNE 30, 1996 |
|
|
|
Six months |
|
|
Year ended |
ended |
|
|
June 30, |
June 30, |
|
|
|
1996 |
1995 |
|
|
|
RUPEES |
RUPEES |
|
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
| Profit
for the year/period |
|
|
14,682,178 |
5,135,277 |
|
| Add:
Adjustment to reconcile profit to net cash |
|
| provided
by operating activities |
|
|
| Depreciation
and amortisation |
|
|
1,631,809 |
855,783 |
|
| Provision
for doubtful debts |
|
|
1,239,998 |
-- |
|
| Provision
for diminution of Investment |
|
|
482,000 |
2,133,750 |
|
|
|
|
------------ |
------------ |
|
| Operating
profit before working capital changes |
|
18,035,985 |
8,124,810 |
|
|
|
|
|
|
|
|
| Decrease/(Increase)
in current assets |
|
|
(5,589,633) |
3,940,832 |
|
| (Decrease)/Increase
in current liabilities |
|
30,607,487 |
(2,347,167) |
|
|
|
|
------------ |
------------ |
|
| Net
cash from operating activities before income tax |
43,053,839 |
9,718,475 |
|
| Income
tax paid |
|
|
|
(2,368,291) |
-- |
|
|
|
|
------------ |
------------ |
|
| Net
cash from operating activities |
|
|
40,685,548 |
9,718,475 |
|
|
|
|
|
| CASHFLOWS
FROM INVESTING ACTIVITIES |
|
|
| Investment
in leases - net |
|
|
(48,871,579) |
(7,333,950) |
|
| Long-term
investment |
|
|
-- |
(500,000) |
|
| Capital
expenditure |
|
|
(59,835) |
(694,000) |
|
| Advance
for Capital Expenditure |
|
|
(200,000) |
(1,657,000) |
|
|
|
|
------------ |
------------ |
|
| Net
cash used in investing activities |
|
|
(49,131,414) |
(10,184,950) |
|
|
|
|
|
| CASHFLOWS
FROM FINANCING ACTIVITIES |
|
|
| Long-term
loans |
|
|
12,500,000 |
-- |
|
| Certificate
of Investment |
|
|
12,566,305 |
100,000 |
|
| Deposits
from lessees |
|
|
8,586,087 |
4,199,493 |
|
| Repayment
of long term loans |
|
|
(19,827,478) |
(8,912,612) |
|
| Long-term
deposits and deferred cost |
|
|
(8,000) |
(3,600) |
|
| Payment
of Dividend |
|
|
(2,648) |
(1,510,576) |
|
|
|
|
------------ |
------------ |
|
| Net
cash (used) / generated from financing activities |
13,814,266 |
(6, 127,295) |
|
|
|
|
| Net
increase/(decrease)in cash |
|
|
5,368,400 |
(6,593,770) |
|
| Cash
and bank balances at beginning of the year |
|
497,085 |
7,090,855 |
|
|
|
|
------------ |
------------ |
|
| Cash
and bank balances at the end of the year |
|
5,865,485 |
497,085 |
|
|
============ |
============ |
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE PERIOD ENDED JUNE 30, 1996 |
|
|
| 1.
THE COMPANY AND ITS ACTIVITIES |
|
| English
Leasing Limited is a Public Limited Company incorporated in Pakistan and its |
|
| shares
are quoted on the Stock Exchanges of Pakistan. The Company is mainly |
|
| engaged
in the business of Leasing. |
|
|
|
|
| 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|
|
|
|
| 2.1
Accounting Convention |
|
| These
accounts have been prepared under the historical cost convention, |
|
|
|
|
| 2.2
Employee's provident fund |
|
| The
Company is in the process of establishing a provident fund scheme covering
all its |
|
| permanent
employees and working directors. Equal monthly contributions are made |
|
| both
by the company and employees @ 10% of the basic salaries to the fund. |
|
|
| 2.3
Tangible operating fixed assets and depreciation |
|
| Tangible
operating fixed assets are stated at cost less accumulated deprecia- |
|
| tion.
Cost of these assets consists of historical cost and directly attributable |
|
| cost
of bringing the assets to working conditions. |
|
|
| Depreciation
is charged to income applying the reducing balance method at |
|
| the
rate specified in the fixed asset Note-11 so as to write off the cost over |
|
| their
expected remaining useful life. |
|
|
|
|
| Full
year's depreciation is charged on additions, while no depreciation is |
|
| charged
on deletion during the year. |
|
|
|
|
| Repairs
and maintenance costs are expensed out as and when incurred, how- |
|
| ever,
major betterments are capitalised. |
|
|
|
|
| Gains
and losses on disposal of assets, if any, are included in income currently. |
|
|
|
|
| 2.4
Investments |
|
| Long
term Investments are stated at cost, provision for diminution in value of |
|
| investment
is made, if considered permanent. |
|
|
|
|
| Short
term investments are stated at lower of cost and market value. |
|
|
| 2.5
Deferred Cost |
|
| Deferred
cost is amortized over a period of 5 (Five) years from the year of
incurrance, |
|
|
| 2.6
Taxation |
|
| The
charge for the current taxation is based on taxable income at the current |
|
| tax
rates after taking into account tax credits and rebates available, if any or |
|
| 0.5%
of turnover which ever is higher. Deferred tax is accounted for by using the |
|
| liability
method on all major timing differences excluding tax effect on those |
|
| timing
differences which are not likely to reverse in the foreseeable future. |
|
|
|
|
| As
a matter of prudence, deferred tax debits are not accounted for. |
|
|
|
|
| 2.7
Revenue Recognition |
|
| The
company follows the "Finance Method" to recognize the Income on
lease i.e. |
|
| the
excess of aggregate lease rentals and the residual value over the cost of |
|
| leased
assets is deferred and then amortized to income over the lease term by |
|
| applying
the annuity method to produce a constant rate of return on the net |
|
| investment
in the lease. |
|
|
|
|
| Income
on bank accounts, loans and advances is recognised on a time |
|
| proportion
basis taking into account the principal/net investment outstanding |
|
| and
applicable rate of mark-up/profit thereon. |
|
|
|
|
| Income
from fees, commission, commitment charges, term deposits and in- |
|
| vestment
etc.; is recognised as and when received. |
|
|
|
|
| 2.8
Provision for Doubtful Debts |
|
| Provision
for doubtful debt is made/adjusted at the year end after review of |
|
| outstanding
lease and advances portfolio on the basis of State Bank of Pakis- |
|
| tan
prudential regulations as applies to leasing companies. |
|
|
|
|
|
1996 |
1995 |
|
|
|
|
RUPEES |
RUPEES |
|
| 3.
CAPITAL RESERVES |
|
| Statutory reserves:- |
|
|
| At
the beginning of the year |
|
9,080,942 |
8,100,000 |
|
|
|
|
|
|
| Movement
during the period |
|
|
|
| --
Appropriated from profit |
|
|
2,520,491 |
980,942 |
|
|
|
|
|
------------ |
------------ |
|
|
|
|
|
11,601,433 |
9,080,942 |
|
|
|
|
|
=========== |
=========== |
|
|
| 3.1
Statutory reserve has been created in pursuance of NBFI's regulations,
whereby |
|
| every
NBFI is required to create reserve fund with an amount not less than 20% of |
|
| its
after tax profit till such time the reserve equals the amount of paid up
capital, |
|
| thereafter,
5% of after Tax Profit will be credited to this reserve. |
|
|
|
|
| This
reserve is not considered as free reserve for distribution of dividend. |
|
|
| 4.
REVENUE RESERVES |
|
TOTAL |
TOTAL |
|
|
General |
Contingencies |
1996 |
1995 |
|
|
|
(Rupees) |
|
(Rupees) |
(Rupees) |
|
|
| At
the beginning |
|
| of
the year |
|
14,500,000 |
3,431,105 |
|
17,931,105 |
17,000,000 |
|
|
|
|
|
|
| Appropriated |
|
|
|
|
| from
profit |
|
(1,000,000) |
952,632 |
|
(47,368) |
931,105 |
|
|
|
---------- |
---------- |
---------- |
---------- |
|
|
|
13,500,000 |
4,383,737 |
|
17,883,737 |
17,931,105 |
|
|
|
=========== |
=========== |
|
=========== |
=========== |
|
|
| 4.1
Contingency reserve has been created to meet any potential lease losses on
lease |
|
| portfolio
that can be reasonably anticipated. |
|
|
|
|
|
1996 |
1995 |
|
|
|
|
RUPEES |
RUPEES |
|
| 5.
LONG TERM FINANCES - SECURED |
|
| -
Muslim Commercial Bank Ltd., (5.2) |
|
9,900,000 |
9,911,072 |
|
| -
Saudi Pak Industrial & Agricultural |
|
| Investment Company (Pvt) Ltd. (5.3) |
|
5,213,718 |
2,415,981 |
|
| -
First Allied Bank Modaraba (5.4) |
|
14,166,671 |
29,166,669 |
|
| -
Allied Bank of Pakistan Ltd. (5.5) |
|
5,748,081 |
8,362,226 |
|
| -
Prudential Commercial Bank Limited (5.6) |
|
7,500,000 |
-- |
|
|
|
|
---------- |
---------- |
|
|
|
|
42,528,470 |
49,855,948 |
|
| Less:
Current maturity |
|
|
22,599,481 |
25,182,579 |
|
|
---------- |
---------- |
|
|
|
19,928,989 |
24,673,369 |
|
|
|
=========== |
=========== |
|
|
| 5.1
All the above loans have been obtained for financing lease operations of the
company and |
|
| are
secured by pari passu floating charge on the present and future leased
assets, |
|
| hypothecation
of movable assets, demand promissory notes and personal guarantees of |
|
| the
directors. Muslim Commercial Bank Limited loan is further secured by
assignment of lease |
|
| agreements/rentals. |
|
|
| 5.2
Muslim Commercial Bank Ltd., loan carries mark-up rate of 17.50% p.a. on
reduc- |
|
| ing
balances and is repayable in 10 equal half yearly installments commencing |
|
| from
,June 27, 1993 while mark-up is payable quarterly, |
|
|
| 5.3
Loan from Saudi Pak Industrial & Agricultural Investment Co. (Pvt) Ltd.
carries |
|
| mark-up
rate of 18.50% and 20% p.a. on reducing balances and is repayable in |
|
| 12
quarterly installments (Principal and Mark--up) commencing from November |
|
| 28,
t993 and June 20, 1996 respectively. |
|
|
| 5.4
Loan from First Allied Bank Modaraba carries mark-up rate of 21% and 20% p.a.
on reducing |
|
| balances
and is repayable in 12 equal half yearly installments commencing from April
02, |
|
| 1994
and March 15, 1995, whereas mark-up is payable on quarterly basis. |
|
|
| 5.5
Loan from Allied Bank of Pakistan Ltd., carries mark-up rate 18.50% p.a. on
reduc- |
|
| ing balances, the principal and markup is
repayable in 14 quarterly installments |
|
| commencing from September 30, 1994. |
|
|
| 5.6
Loan from Prudential Commercial Bank Limited is secured against first
floating |
|
| charge
on companies lease assets, receivables and personal guarantees of |
|
| directors
ranking pari passu with other creditors. This facility carries mark-up rate |
|
| of
20% p.a. on reducing balances and is repayable in 12 quarterly installments |
|
| commencing
from August 15, 1996. |
|
|
1996 |
1995 |
|
|
|
|
RUPEES |
RUPEES |
|
| 6.
LONG TERM DEPOSITS |
|
| Security
deposit on leases |
|
|
37,293,569 |
28,707,482 |
|
| Less:
Repayable/adjustable within 12 months |
|
10,207,260 |
7,224,631 |
|
|
|
|
------------ |
------------ |
|
|
|
|
27,086,309 |
21,482,851 |
|
|
|
|
============ |
============ |
|
|
| These
represent interest free security deposits (Lease key money) received on lease |
|
| contracts
and are repayable/adjustable at the expriy of respective lease periods. |
|
|
| 7.
CERTIFICATES OF INVESTMENT |
|
| These
represent Registered Certificates of Investment (COl's) issued according to
the |
|
| permission
granted by the Government of Pakistan for raising funds directly from the
local |
|
| resources,
These COI's have been issued for maturity period ranging from three months to |
|
| five
years, The return on COl's is payable on uniform basis ranging from 15% to
19,5% p.a., |
|
|
|
|
|
1996 |
1995 |
|
|
|
|
RUPEES |
RUPEES |
|
| 8.
SHORT TERM FINANCES - SECURED |
|
| Running
Finance under mark-up arrangements |
|
| The
Bank of Khyber (8.2) |
|
|
2,500,000 |
10,000,000 |
|
| Allied
Bank Limited (8.3} |
|
|
5,054,840 |
6,371,469 |
|
| AI-Faysal
Investment Bank Ltd, (8.4) |
|
7,999,999 |
-- |
|
|
|
|
------------ |
------------ |
|
|
|
|
15,554,839 |
16,371,469 |
|
|
|
|
============ |
============ |
|
|
| 8.1
The above facilities have been obtained for financing lease operations. |
|
|
| 8.2
It is secured against floating charge on the undertaking or property of the |
|
| company including stock-in-trade and book
debts, carrying mark-up @ 19% |
|
| and 19.5% p.a. respectively. The facility
is obtained against a sanctioned limit |
|
| of Rs. 10 Million. |
|
|
| 8.3
It is secured against pari passu charge over the leased assets and personal |
|
| guarantees of directors. The rate of markup
is 18.50% p.a. and is repayable |
|
| periodically. The facility is obtained
against a sanctioned limit of Rs. 15 million, |
|
|
| 8.4
Its is secured against pari passu hypothecation charge over leased assets, |
|
| receivables/
lease rentals, The facility is obtained against a sanctioned limit of |
|
| Rs.
15 million and carry mark-up at the rate of 19.50% p.a. |
|
|
|
|
|
1996 |
1995 |
|
|
|
|
RUPEES |
RUPEES |
|
| 9.
CREDITORS, ACCRUED AND OTHER LIABILITIES |
|
| Creditors |
|
|
252,856 |
88,388 |
|
| Accrued
mark-up on long term finances |
|
|
3,345,052 |
1,914,316 |
|
| Accrued
mark-up on short term finances |
|
|
-- |
13,546 |
|
| Profit
payable on COl's |
|
|
362,589 |
36,730 |
|
| Accrued
charges |
|
|
489,298 |
142,377 |
|
| Provident
fund |
|
|
116,316 |
136,137 |
|
| Advance
lease rentals |
|
|
7,570 |
38,070 |
|
|
|
|
------------ |
------------ |
|
|
|
4,573,681 |
2,369,564 |
|
|
|
|
============ |
============ |
|
|
| 10.
CONTINGENCY AND COMMITMENTS |
|
| Contingencies |
|
| Company
has filed a suit amounting Rs. 2,715,717 for over due rentals against |
|
| M/s
Ahmad Textile Processing Industries in the Banking Tribunal, Faisalabad. |
|
|
| Company
has filed a winding up petition against M/s Hala Enterprises Limited |
|
| in
the Lahore High Court, Lahore as Hala is unable to pay its debts. |
|
|
| The
above cases are still pending in the respective courts. No adjustments have
been in these |
|
| accounts
for the above except provision for doubtful receivable as required by State
Bank of |
|
| Pakistan,
Company is very optimistic about the outcome of these cases, However, |
|
| company
is maintaining a "Contingencies reserves" (Note-4) amounting to |
|
| Rs.
4,383,737/- for any unpredicted losses in future, |
|
|
1996 |
1995 |
|
|
|
RUPEES |
RUPEES |
|
| Commitments |
|
| -- Lease approved but not
disbursed |
|
-- |
3,145,993 |
|
|
|
|
------------ |
------------ |
|
|
| --
A murabha financing facilities has been granted by Altowfeek Investment |
|
| Bank
Limited amounting to Rs. 10.000 million at the rate of 21% p.a. and repay- |
|
| able
quarterly from the date of disbursement. The facility is secured against |
|
| first
floating charge over the entire existing and future assets. |
|
|
| 11.
TANGIBLE FIXED ASSETS (RUPEES) |
|
|
COST |
|
|
| Particulars |
|
AS AT |
ADDITIONS/ |
AS AT |
Rate |
|
|
|
01.07.1995 |
(DELETIONS) |
30.06.1996 |
% |
|
|
|
|
| Leasehold
improvements |
|
603,184 |
-- |
603,184 |
20 |
|
|
| Furniture
and Fixture |
|
969,334 |
1,810 |
971,144 |
10 |
|
|
| Office.
Equipments |
|
942,930 |
-- |
942,930 |
10 |
|
|
| Electrical
Equipments |
|
39,300 |
56,000 |
95,300 |
10 |
|
|
| Electrical
Installations |
|
191,549 |
2,025 |
193,574 |
10 |
|
|
| Air-Conditioners |
|
589,160 |
-- |
589,160 |
10 |
|
|
| Vehicles |
|
4,567,361 |
-- |
4,567,361 |
20 |
|
|
|
|
---------- |
---------- |
---------- |
---------- |
|
|
| RUPEES |
|
7,902,818 |
59,835 |
7,962,653 |
-- |
|
|
|
|
---------- |
---------- |
---------- |
---------- |
|
|
| RUPEES
1995 |
|
7,208,818 |
694,000 |
7,902,818 |
-- |
|
|
|
|
---------- |
---------- |
---------- |
---------- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION |
|
|
|
|
|
VALUE |
|
|
| Particulars |
|
AS AT |
FOR THE |
AS AT |
AS AT |
|
|
|
01.07.1995 |
PERIOD |
30.06.1996 |
30.06.1996 |
|
|
|
|
|
| Leasehold
improvements |
|
325,236 |
55,590 |
380,826 |
222,358 |
|
|
| Furniture
and Fixture |
|
291,212 |
67,993 |
359,205 |
611,939 |
|
|
| Office.
Equipments |
|
|
199,366 |
74,356 |
273,722 |
669,208 |
|
|
| Electrical
Equipments |
|
4,853 |
9,045 |
13,898 |
81,402 |
|
|
| Electrical
Installations |
|
51,341 |
14,223 |
65,564 |
128,010 |
|
|
| Air-Conditioners |
|
|
177,888 |
41,127 |
219,015 |
370,145 |
|
|
| Vehicles |
|
|
|
1,462,424 |
620,987 |
2,083,411 |
2,483,950 |
|
|
|
|
---------- |
---------- |
---------- |
---------- |
|
|
| RUPEES |
|
2,512,320 |
883,321 |
3,395,641 |
4,567,012 |
|
|
|
|
---------- |
---------- |
---------- |
---------- |
|
|
| RUPEES
1995 |
|
2,030,781 |
481,539 |
2,512,320 |
5,390,498 |
|
|
|
|
---------- |
---------- |
---------- |
---------- |
|
|
|
|
|
|
|
|
|
|
|
1996 |
1995 |
|
|
|
|
|
|
RUPEES |
RUPEES |
|
|
| 12.
NET INVESTMENT IN LEASES |
|
| Minimum
lease payments receivables |
|
256,809,768 |
183,547,947 |
|
| ADD:
Residual value of leased assets |
|
37,293,569 |
28,707,482 |
|
|
|
---------- |
---------- |
|
| Lease
contract receivables |
|
294,103,337 |
212,255,429 |
|
| LESS:
Unearned finance income |
|
73,586,204 |
40,609,875 |
|
|
|
---------- |
---------- |
|
| Net
investment in leases |
|
220,517,133 |
71,645,554 |
|
|
|
|
|
|
|
---------- |
---------- |
|
| LESS: |
'- Current Portion |
|
70,753,779 |
71,571,601 |
|
|
- Provision for doubtful
debts |
|
|
|
- Opening balance |
|
90,302 |
90,302 |
|
|
- For the year |
|
1,239,998 |
- |
|
|
|
---------- |
---------- |
|
|
|
1,330,300 |
90,302 |
|
|
|
|
|
|
|
---------- |
---------- |
|
|
|
72,084,079 |
71,661,903 |
|
|
|
|
|
|
|
---------- |
---------- |
|
|
|
148,433,054 |
99,983,651 |
|
|
============ |
============ |
|
|
|
|
1996 |
1995 |
|
|
RUPEES |
RUPEES |
|
| 13.
LONG TERM INVESTMENTS |
|
| Quoted |
|
|
| Dewan
Salman Fibres Ltd. |
|
| (68,586
Ordinary shares of Rs. 10/- each) |
|
8,845,000 |
8,845,000 |
|
| Pakistan
Synthetics Ltd. |
|
|
| (125,000
Ordinary shares of Rs. 10/- each) |
|
7,865,875 |
7,865,875 |
|
|
|
|
---------- |
---------- |
|
|
|
|
16,710,875 |
16,710,875 |
|
| Federal
Investment Bonds |
|
|
600,000 |
600,000 |
|
|
|
|
---------- |
---------- |
|
|
|
|
17,310,875 |
17,310,875 |
|
|
============ |
============ |
|
|
|
|
| Aggregate
Market Value of investment |
|
|
4,337,190 |
7,994,400 |
|
|
============ |
============ |
|
|
| 13.1
The company's holding does not exceed 10 percent of equity of any investee |
|
| company. |
|
|
| 13.2
Provision for diminution in the value of investment amounting Rs.
12,973,685/- |
|
| (1995: Rs. 9,316,475/0 has not been made in
these accounts as this diminution |
|
| is considered a temporary phenomenon. |
|
|
|
|
1996 |
1995 |
|
|
|
RUPEES |
RUPEES |
|
| 14.
LONG TERM DEPOSITS AND |
|
| DEFERRED
COST |
|
|
| Security
deposits |
|
|
130,355 |
122,355 |
|
| Deferred
cost (Note :14.1 ) |
|
|
374,248 |
1,122,736 |
|
|
---------- |
---------- |
|
|
|
|
504,603 |
1,245,091 |
|
|
============ |
============ |
|
|
| 14.1
Deferred cost |
|
| Preliminary
expenses |
|
|
172,945 |
172,945 |
|
| Share
issue expenses |
|
|
1,638,389 |
1,638,389 |
|
| Pre-operating
expenses |
|
|
1,931,118 |
1,931,118 |
|
|
|
|
---------- |
---------- |
|
|
|
|
3,742,452 |
3,742,452 |
|
| Less:
Amortized to date |
|
| -
Opening balance |
|
|
2,619,716 |
2,245,472 |
|
| - For the year |
|
|
748,488 |
374,244 |
|
|
|
|
---------- |
---------- |
|
|
|
|
3,368,204 |
2,619,716 |
|
|
|
|
|
|
|
|
|
---------- |
---------- |
|
|
|
|
374,248 |
1,122,736 |
|
|
============ |
============ |
|
|
|
|
|
1996 |
1995 |
|
|
|
|
RUPEES |
RUPEES |
|
|
| 15.
SHORT TERM INVESTMENTS |
|
| Quoted: |
|
|
| Fidelity
Investment Bank Ltd. |
|
| (57,500
Ordinary shares of Rs. 10/- each) |
|
2,871,500 |
2,796,500 |
|
| The
Bank of Punjab |
|
|
| (26,000
Ordinary shares of Rs.. 10/- each) |
|
1,688,250 |
1,688,250 |
|
|
|
|
---------- |
---------- |
|
|
|
|
4,484,750 |
4,559,750 |
|
|
| Less:
Provision for Diminution in Value of Investment |
|
|
- Opening balance |
|
|
3,193,500 |
1,059,750 |
|
|
- For the year |
|
|
482,000 |
2,133,750 |
|
|
|
|
---------- |
---------- |
|
|
|
|
3,675,500 |
3,193,500 |
|
|
|
|
|
|
|
|
|
---------- |
---------- |
|
|
|
|
884,250 |
1,291,250 |
|
|
============ |
============ |
|
|
| Aggregate
Market Value of Investment |
|
884,250 |
1,291,250 |
|
|
============ |
============ |
|
|
| The
company's holding does not exceeds 10 percent |
|
| of
equity of any investee company. |
|
|
| 16.
LOANS, ADVANCES, PREPAYMENTS AND |
|
| OTHER
RECEIVABLES |
|
|
| Loan
(Secured: Considered good) |
|
-- |
119,878 |
|
| To
non listed Companies/Individuals |
|
|
| Lease
rentals due from lessees |
|
12,237,401 |
7,574,959 |
|
|
|
|
| Advances: |
|
|
|
| Employees |
|
45,400 |
18,500 |
|
| Income
tax |
|
1,384,004 |
354,644 |
|
| Telephone |
|
17,785 |
19,302 |
|
| Purchase
of assets-- |
|
349,550 |
|
| Prepayments |
|
|
432,433 |
516,536 |
|
| Profit
on bank deposits |
|
174,693 |
4,764 |
|
| Mark
up on short term advances |
|
-- |
6,804 |
|
| Stamps
in hand |
|
|
5,943 |
7,242 |
|
| Other
receivables |
|
|
30,996 |
43,721 |
|
|
---------- |
---------- |
|
|
|
14,328,655 |
9,015,900 |
|
|
============ |
============ |
|
|
| Loan
to non listed companies were secured against demand promissory note, |
|
| hypothecation
of stocks and floating charge on book debts/stocks/property and |
|
| Directors
personal guarantees, The rate of mark-up ranges between Re. 0,74 to Re, |
|
| 0.77
per thousand per day, |
|
|
1996 |
1995 |
|
|
|
RUPEES |
RUPEES |
|
|
| 17.
CASH AND BANK BALANCES |
|
| Cash
in hand |
|
|
541,470 |
67,285 |
|
|
|
|
| Cash
with banks |
|
|
| -
Current account |
|
|
4,624,015 |
429,800 |
|
| -
Deposit account |
|
|
700,000 |
-- |
|
|
---------- |
---------- |
|
|
|
|
5,865,485 |
497,085 |
|
|
============ |
============ |
|
|
|
|
|
Six months |
|
|
|
Year ended |
ended |
|
|
|
June 30, |
June 30, |
|
|
|
1996 |
1995 |
|
|
|
RUPEES |
RUPEES |
|
|
| 18.
INCOME FROM LEASE OPERATIONS |
|
| Lease
income |
|
|
35,061,999 |
17,677,927 |
|
| Front
end fees |
|
|
238,295 |
40,995 |
|
| Documentation
& other fees |
|
|
34,715 |
15,000 |
|
|
|
|
---------- |
---------- |
|
|
|
|
35,335,009 |
17,733,922 |
|
|
============ |
============ |
|
|
|
| 19.
OTHER INCOME |
|
| Income
from bank deposits |
|
|
446,261 |
278,780 |
|
| Profit/Mark-up
on short term advances |
|
266,715 |
146,365 |
|
| Dividend
income |
|
|
238,560 |
-- |
|
| Miscellaneous
Income |
|
|
127,950 |
25,000 |
|
|
|
|
---------- |
---------- |
|
|
|
|
1,079,486 |
450,145 |
|
|
============ |
============ |
|
|
|
|
| 20.
FINANCIAL AND BANK CHARGES |
|
| Mark-up
on long /short term finance |
|
11,087,672 |
7,228,370 |
|
| Bank
charges |
|
|
11,800 |
24,043 |
|
| Loan
processing fee |
|
|
197,500 |
-- |
|
| Excise
Duty on loans |
|
|
94,167 |
-- |
|
| Mark-up
on COIs |
|
|
420,259 |
13,546 |
|
|
|
|
---------- |
---------- |
|
|
|
|
11,811,398 |
7,265,959 |
|
|
============ |
============ |
|
|
| 21.
ADMINISTRATIVE & OPERATING EXPENSES |
|
| Director's
remuneration |
|
|
1,910,241 |
939,653 |
|
| Staff
salaries and other benefits |
|
1,443,295 |
738,082 |
|
| Legal
and professional |
|
|
107,269 |
79,583 |
|
| Registrar's
services |
|
|
126,000 |
63,000 |
|
| Rent |
|
|
535,220 |
246,110 |
|
| Travelling
and conveyance |
|
|
562,632 |
273,511 |
|
| Postage,
telephone and telex |
|
293,515 |
165,177 |
|
| Electricity |
|
|
171,899 |
60,678 |
|
| Stationery
and other supplies |
|
133,103 |
144,201 |
|
| Vehicles
running |
|
|
423,908 |
211,447 |
|
| Auditors'
remunation (Note 21.1 ) |
|
80,000 |
15,000 |
|
| Newspapers
& periodicals |
|
|
4,699 |
3,301 |
|
| Insurance |
|
|
342,679 |
106,944 |
|
| Entertainment |
|
|
74,779 |
45,413 |
|
| Repairs
& maintenance |
|
|
109,874 |
55,719 |
|
| Fees
& subscriptions |
|
|
674,500 |
81,500 |
|
| Depreciation |
|
|
883,321 |
481,539 |
|
| Amortization
of deferred cost |
|
748,488 |
374,244 |
|
| Advertisement |
|
|
77,880 |
64,600 |
|
| Penelty
- SBP |
|
|
9,800 |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
8,713,102 |
4,149,702 |
|
|
============ |
============ |
|
|
|
|
|
|
|
| 21.1
Auditors Remuneration |
|
|
| Audit
fee |
|
|
30,000 |
15,000 |
|
| Tax
consultancy |
|
|
25,000 |
-- |
|
| Special
audit fee |
|
|
25,000 |
-- |
|
|
|
|
---------- |
---------- |
|
|
|
|
80,000 |
15,000 |
|
|
============ |
============ |
|
|
|
|
| 22.
TAXATION |
|
|
|
|
|
| 22.1
Current year |
|
|
515,225 |
230,568 |
|
|
|
|
---------- |
---------- |
|
|
| This
represents the minimum tax due under section 80(d) of the Income tax Or- |
|
| dinance,
1979, |
|
|
| 22.2
Deferred |
|
| Deferred
taxation arising due to timing differences between book and income tax |
|
| revenue
or charges is estimated at Rs, 10,050 million (1995: Rs, 12,100 million), As
of |
|
| June
30, 1996 no provision has been made for these timing differences as these are |
|
| not
expected to reverse within the next three years, |
|
|
|
|
|
| 23.REMUNERATION
OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES |
|
|
|
|
|
|
CHIEF EXECUTIVE |
DIRECTOR |
EXECUTIVE |
|
|
|
1996 |
1995 |
1996 |
1995 |
1996 |
1995 |
|
|
|
|
| Managerial
Remuneration |
276,000 |
138,000 |
469,200 |
234,600 |
241,000 |
156,000 |
|
| Bonus |
|
23,000 |
- |
39,100 |
- |
13,000 |
- |
|
| House
Rent & Utilities |
162,982 |
77,224 |
300,180 |
135,811 |
105,890 |
84,389 |
|
| Personal
Staff |
|
168,000 |
84,000 |
336,000 |
168,000 |
- |
- |
|
| Reimbursement
of medical |
1,072 |
2,192 |
60,187 |
62,626 |
17,546 |
12,996 |
|
| expenses |
|
| Provident
fund |
|
27,600 |
13,800 |
46,920 |
23,400 |
18,100 |
15,600 |
|
|
----------- |
----------- |
----------- |
----------- |
----------- |
----------- |
|
|
658,654 |
315,216 |
1,251,587 |
624,437 |
395,536 |
268,985 |
|
|
=========== |
=========== |
=========== |
=========== |
=========== |
=========== |
|
| No.
of Person |
|
1 |
1 |
2 |
2 |
2 |
2 |
|
|
| In
addition, the Chief Executive two Directors and two Executive are provided
with free use |
|
| of
company maintained cars, While Chief Executive and Directors are also
provided with |
|
| reimbursement
of residential telephone bills. |
|
|
|
|
| Directors
fee totaling Rs. 2,000/- (1995: Rs. 1,500/-) was paid to two Directors for
attending |
| two
Board meetings (1994: 2 Meetings) held during the year. |
|
|
| 24.
GENERAL |
|
|
|
| 24.1
Figures have been rearranged wherever necessary for comparision purposes |
|
| 24.2
Figures have been rounded off to the nearest rupee |
|
| 24.3
Figures for 1996 represent 12months period while the comparative figures
for |
|
| 1995 represent 6 months period. |
|
|
|
|
| PATTERN
OF SHAREHOLDING |
|
| AS
AT JUNE, 30, 1996 |
|
|
| NUMBER |
|
SHARE |
|
TOTAL |
|
|
| OF |
|
HOLDING |
|
SHARES |
|
|
| SHARE |
FROM |
|
TO |
HELD |
|
|
| HOLDERS |
|
|
|
|
|
|
| 100 |
1 |
-- |
100 |
10,000 |
|
|
| 849 |
101 |
-- |
500 |
394,600 |
|
|
| 120 |
501 |
-- |
1000 |
117,900 |
|
|
| 119 |
1001 |
-- |
5000 |
307,700 |
|
|
| 38 |
5001 |
-- |
10000 |
322,400 |
|
|
| 9 |
10001 |
-- |
15000 |
108,500 |
|
|
| 9 |
15001 |
-- |
20000 |
176,300 |
|
|
| 2 |
20001 |
-- |
25000 |
41,700 |
|
|
| 7 |
25001 |
-- |
30000 |
198,300 |
|
|
| 1 |
30001 |
-- |
35000 |
35,000 |
|
|
| 3 |
35001 |
-- |
40000 |
118,000 |
|
|
| 4 |
45001 |
-- |
50000 |
200,000 |
|
|
| 1 |
70001 |
-- |
75000 |
71,000 |
|
|
| 1 |
75001 |
-- |
80000 |
76,200 |
|
|
| 1 |
95001 |
-- |
100000 |
100,000 |
|
|
| 1 |
145001 |
-- |
150000 |
150,000 |
|
|
| 1 |
160001 |
-- |
165000 |
164,800 |
|
|
| 1 |
245001 |
-- |
250000 |
250,000 |
|
|
| 1 |
255001 |
-- |
260000 |
256,700 |
|
|
| 1 |
345001 |
-- |
350000 |
350,000 |
|
|
| 1 |
445001 |
-- |
450000 |
450,000 |
|
|
| 1 |
450001 |
-- |
455000 |
450,700 |
|
|
| 1 |
480001 |
-- |
485000 |
480,500 |
|
|
| 1 |
495001 |
-- |
500000 |
500,000 |
|
|
| 1 |
595001 |
-- |
600000 |
600,000 |
|
|
| 1 |
715001 |
-- |
720000 |
715,900 |
|
|
| 1 |
1350001 |
-- |
1355000 |
1,353,800 |
|
|
| --------- |
|
--------- |
|
|
| 1276 |
|
8.000.000 |
|
|
| ========= |
|
========= |
|
|
|
|
CATAGORIES |
|
NUMBER |
TOTAL |
|
|
| S.NO. |
OF |
|
OF |
SHARES |
PERCENTAGE |
|
|
SHAREHOLDERS |
|
SHARE |
HELD |
|
|
|
|
HOLDERS |
|
|
|
| 1. |
INDIVIDUALS |
|
1259 |
3,842,600 |
48.03 |
|
| 2. |
INVESTMENT COMPANIES |
9 |
2,107,700 |
26.35 |
|
| 3. |
INSURANCE COMPANIES |
1 |
480,500 |
6.01 |
|
| 4. |
JOINT STOCK COMPANIES |
2 |
17,200 |
0.22 |
|
| 5. |
FINANCIAL INSTITUTIONS |
3 |
1,501,000 |
18.76 |
|
| 6. |
MODARABA COMPANIES |
|
1 |
1,000 |
0.01 |
|
| 7. |
LEASING COMPANIES |
|
1 |
50,000 |
0.62 |
|
|
|
---------- |
---------- |
---------- |
|
|
|
1276 |
8,000,000 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
