|
|
|
|
|
|
|
|
|
|
| Annual
Report 1996 |
|
| Ibrahim Leasing Limited |
|
|
|
| Pattern
of Shareholding as at June 30, 1996 |
|
|
|
|
FORM A |
|
|
| No of |
|
Having Shares |
|
Shares |
Percentage |
|
| Shareholders |
From |
To |
|
Held |
|
|
|
| 84 |
|
1 |
100 |
|
8400 |
0.0840 |
|
| 8168 |
|
101 |
500 |
|
4072900 |
40.7290 |
|
| 43 |
|
501 |
1000 |
|
43000 |
0.4300 |
|
| 117 |
|
1001 |
5000 |
|
374200 |
3.7420 |
|
| 15 |
|
5001 |
10000 |
|
140500 |
1.4050 |
|
| 1 |
|
10001 |
15000 |
|
15000 |
0.1500 |
|
| 13 |
|
15001 |
20000 |
|
260000 |
2.6000 |
|
| 2 |
|
20001 |
25000 |
|
50000 |
0.5000 |
|
| 1 |
|
25001 |
30000 |
|
27500 |
0.2750 |
|
| 2 |
|
35001 |
40000 |
|
80000 |
0.8000 |
|
| 4 |
|
45001 |
50000 |
|
200000 |
2.0000 |
|
| 1 |
|
50001 |
55000 |
|
50500 |
0.5050 |
|
| 6 |
|
75001 |
80000 |
|
480000 |
4.8000 |
|
| 2 |
|
85001 |
90000 |
|
180000 |
1.8000 |
|
| 5 |
|
95001 |
100000 |
|
500000 |
5.0000 |
|
| 1 |
|
145001 |
150000 |
|
150000 |
1.5000 |
|
| 3 |
|
155001 |
160000 |
|
478000 |
4.7800 |
|
| 1 |
|
195001 |
200000 |
|
200000 |
2.0000 |
|
| 1 |
|
245001 |
250000 |
|
250000 |
2.5000 |
|
| 1 |
|
435001 |
440000 |
|
440000 |
4.4000 |
|
| 4 |
|
495001 |
500000 |
|
2000000 |
20.0000 |
|
| -------- |
|
-------- |
-------- |
|
| 8475 |
|
10000000 |
100.0000 |
|
| ========= |
|
========= |
========= |
|
|
| Categories
of Shareholders |
|
|
Shareho- |
Shareho- |
Perce- |
|
| Particulars |
|
lders |
lding |
ntage |
|
|
| INDIVIDUALS |
|
8466 |
7,573,500 |
75.74 |
|
| INVESTMENT
COMPANIES |
|
4 |
1,251,000 |
12.51 |
|
| PRIVATE
COMPANIES |
|
1 |
500 |
0.01 |
|
| INSURANCE
COMPANIES |
|
1 |
25,000 |
0.25 |
|
| JOINT
STOCK COMPANIES |
|
1 |
150,000 |
1.50 |
|
| FINANCIAL
INSTITUTIONS |
|
1 |
500,000 |
5.00 |
|
| MODARABA
COMPANIES |
|
1 |
500,000 |
5.00 |
|
|
---------- |
---------- |
---------- |
|
|
8475 |
10,000,000 |
100.00 |
|
|
============ |
============ |
============ |
|
|
| Company
Information |
|
|
|
| Chief
Executive |
|
| Abdul
Aziz |
|
|
| Directors |
|
| Sheikh
Mukhtar Ahmed |
|
| Sheikh
Muhammad Yaseen |
|
| Mr.
Muhammad Naeem Mukhtar |
|
| Mr.
Muhammad Waseem Mukhtar |
|
| Mr.
Asim Yaseen |
|
| Mr.
Pervez Ifiikhar Khan |
|
| (Nominee
of Pakistan-Kuwait Investment |
|
| Company
(Pvt.) Ltd.) |
|
|
| Secretary |
|
| S.M.
Hasnain Rizvi |
|
|
| Auditors |
|
| M.
Yousuf Adil & Co. |
|
| Chartered
Accountants, |
|
| Karachi. |
|
|
| Tax
Consultants |
|
| F.R.
Merchant & Co. |
|
| Chartered
Accountants, |
|
| Karachi. |
|
|
| System
Consultants |
|
| KPMG
Peat Marwick Associates (Pvt) Ltd. |
|
| Karachi. |
|
|
| Bankers |
|
| Askari
Commercial Bank Ltd. |
|
| Al-Faysal
Investment Bank Ltd. |
|
| Al-Baraka
Islamic Investment Bank |
|
| The
Bank of Punjab |
|
|
| Registered
Office / |
|
| Share
Department |
|
| Ibrahim
Centre |
|
| GK-7/59, |
|
| Bagh-e-Zehra
Street, |
|
| Kharadar,
Karachi. |
|
|
| Head
Office |
|
| Ibrahim
Centre |
|
| I-A,
Ahmed Block, |
|
| New
Garden Town, |
|
| Lahore. |
|
|
| Notice
of Meeting |
|
| Notice
is hereby given that the 3rd Annual General Meeting of the shareholders of
the Company |
| will
be held on 31-12-1996 at 10:00 A.M., at Karachi Sheraton Hotel, Club Road,
Karachi to |
|
| transact
the following business:- |
|
|
| 1.
To confirm the minutes of the preceding meeting of the shareholders of the
Company. |
|
|
| 2.
To consider and approve the Annual Audited Accounts, comprising Balance
Sheet, |
|
| Profit
& Loss Account of the Company for the year ending June 30, 1996 together
with |
|
| Directors'
and Auditors' reports thereon. |
|
|
| 3.
To approve Cash Dividend @ 15% as recommended by the board of Directors. |
|
|
| 4.
To appoint Auditors for the year 1996/97 and to fix their remuneration. The
present |
|
| auditors
M/s. M. Yousuf Adil & Co., Chartered Accountants, being eligible for |
|
| appointment,
offer themselves for re-appointment. |
|
|
| 5.
To transact any other business with the permission of the chair. |
|
|
| By
Order of the Board |
|
| (S.M.
Hasnain Rizvi) |
|
| Company
Secretary |
|
|
| NOTES: |
|
| i)
The share transfer books of the Company shall remain closed from 24-12-1996
to |
|
| 31-12-1996
(both days inclusive) to determine the names of members entitled to |
|
| Dividend
payment and to attend the meeting. Transfers received in order at the |
|
| Registered
Office of the Company at the close of business on 23-12-I996 will be |
|
| treated
in time. |
|
|
| ii)
A member entitled to attend and vote at the meeting may appoint another
member as |
|
| his/her proxy to attend and vote on his/her
behalf. |
|
|
| iii)
The proxies, in order to be effective, must be received by the Company
atleast |
|
| 48 hours before the time for holding the
meeting. |
|
|
| Directors'
Report to the Shareholders |
|
| The
Board of Directors of Ibrahim Leasing Limited takes pleasure in presenting
the third annual |
| report
of your company together with audited accounts for the year ended June
30,1996. |
|
|
| Financial
results of your company for the period under review are summarized as
follows: |
|
|
|
For the |
For nine |
|
|
year ended |
months |
|
|
June 30, |
ended |
|
|
1996 |
June 30, |
|
|
|
1995 |
|
|
(Rupees) |
(Rupees) |
|
|
| Gross
revenue |
|
26,141,553 |
14,334,251 |
|
| Expenditure |
|
9,864,221 |
5,410,175 |
|
| Profit
before tax |
|
16,277,332 |
8,924,076 |
|
| Provision
for tax |
|
192,706 |
950,000 |
|
| Profit
after tax |
|
16,084,626 |
7,974,076 |
|
| Unappropriated
profit brought forward |
|
6,379,261 |
- |
|
| Profit
available for appropriation |
|
22,463,887 |
7,974,076 |
|
|
| Your
Directors are pleased to recommend 15%Cash Dividend i.e.Rs.l.5 per share out
of the |
|
| profits
earned. The appropriation of the profit will be. |
|
|
| Appropriation |
|
| Proposed
dividend |
|
15,000,000 |
- |
|
| Transferred
to special reserve |
|
3,216,925 |
1,594,815 |
|
| Unappropriated
profit carried forward |
|
4,246,962 |
6,379,261 |
|
|
| Inspite
of adverse economic conditions, the performance of your company was
satisfactory and |
| the
net profit after tax has increased by 102% as compared to the previous
period. |
|
|
| The
company continued its prudent policy in selection of the sector and clientage
for granting |
| lease
facilities. Net investment in lease finance of Rs. 86.5 million as at June
30, 1995 recorded |
| an
increase of 96.5% and amounted to Rs. 169.98 million as on June 30, 1996 and
the |
|
| composition
of lease portfolio is as under: |
|
|
| Sector |
|
1996 |
1995 |
|
|
% age |
% age |
|
|
Rs. (000) |
Rs. (000) |
|
|
| Textile |
|
41,816 |
24.60 |
35,821 |
41.42 |
|
| Pharmaceuticals/chemicals |
|
32,720 |
19.25 |
11,888 |
13.74 |
|
| Cement |
|
29,505 |
17.36 |
7,657 |
8.85 |
|
| Fuel
& energy |
|
21,638 |
12.73 |
10,456 |
12.09 |
|
| Paper & board |
|
14,395 |
8.47 |
16,953 |
19.60 |
|
| Auto
& allied engineering |
|
8,096 |
4.76 |
- |
- |
|
| Engineering |
|
6,987 |
4.11 |
- |
- |
|
| Sugar |
|
3,918 |
2.31 |
260 |
0.30 |
|
| Electrical
goods |
|
802 |
0.47 |
1,168 |
1.35 |
|
| Miscellaneous |
|
10,099 |
5.94 |
2,286 |
2.65 |
|
|
---------- |
---------- |
---------- |
---------- |
|
|
169,976 |
100 |
86,489 |
100.00 |
|
|
---------- |
---------- |
---------- |
---------- |
|
|
|
| The
recovery of your company is satisfactory which is attributed to the effective
monitoring |
| efforts
at all levels of the Management and Staff. |
|
|
| During
the period under review the company obtained credit lines of Rs.55 million
from |
|
| different
local financial institutions. The management of the company is in constant
contact |
| with
local financial institutions for further facilities and also in the process
of negotiating for |
| long
term credit facilities from foreign lending institutions. |
|
|
| The
company is planning, in addition to industrial creditworthy customers to
diversify lease |
| operations
to small industries, consumer products and equipment to the professionals for
broad |
| based
and better yield portfolio. This will assist to counterbalance the adverse
effects of |
|
| problems
like high cost of borrowing and levy of excise duty, being faced by leasing
sector |
|
| these
days. |
|
|
| We
wish to place on record our thanks to all regulatory bodies for their
guidance and support, |
| banks/financial
institutions for extending credit lines. We would also like to thank the |
|
| management
and staff of the company for their devotion, dedications and concerted
efforts |
|
| towards
the steady growth of the company. |
|
|
| On
behalf of the Board |
|
| Abdul
Aziz Khan |
|
| Chief
Executive |
|
|
| Auditors'
Report to the Member |
|
| We
have audited the annexed balance sheet of IBRAHIM LEASING
LIMITED as at |
|
| June
30, 1996 and the related profit and loss account and statement of changes in
financial |
|
| position,
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 purpose of 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 |
|
| Ordinance,
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 year 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 and 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 Company's affairs as at June 30, 1996 and of the profit and the |
|
| changes
in the financial position for the year then ended; and |
|
|
| d)
in our opinion, no zakat was deductible at source under the Zakat and Ushr |
|
| Ordinance,
1980. |
|
|
| M.
Yousuf Adil & Co. |
|
| Chartered
Accountants |
|
|
| Balance
Sheet as at June 30, 1996 |
|
|
|
1996 |
1995 |
|
|
Note |
Rupees |
Rupees |
|
| CAPITAL
AND RESERVES |
|
| Authorized |
|
| 10,000,000
ordinary shares of Rs. 10/- each |
|
100,000,000 |
100,000,000 |
|
|
============ |
============ |
|
|
| Issued,
subscribed and paid-up |
|
| 10,000,000
ordinary shares of Rs. 10/- each |
|
| fully
paid in cash |
|
100,000,000 |
100,000,000 |
|
| Special
reserve |
|
3 |
4,811,740 |
1,594,815 |
|
| Unappropriated
profit |
|
4,246,962 |
6,379,261 |
|
|
------------ |
------------ |
|
|
109,058,702 |
107,974,076 |
|
|
| REDEEMABLE
CAPITAL |
|
4 |
2,500,000 |
-- |
|
| LIABILITIES
AGAINST ASSETS |
|
| SUBJECT
TO FINANCE LEASE |
|
5 |
115,530 |
293,736 |
|
| LONG
TERM SECURITY DEPOSITS |
|
6 |
21,068,217 |
9,992,133 |
|
| DEFERRED
LIABILITIES |
|
| Gratuity |
|
303,046 |
74,466 |
|
|
| CURRENT
LIABILITIES |
|
| Short
term bank borrowings |
|
7 |
29,743,703 |
-- |
|
| Current
portion of long term liabilities |
8 |
15,178,206 |
143,292 |
|
| Creditors,
accrued and other liabilities |
9 |
611,858 |
114,626 |
|
| Proposed
dividend |
|
15,000,000 |
-- |
|
| Provision
for taxation |
|
1,142,706 |
950,000 |
|
|
------------ |
------------ |
|
|
61,676,473 |
1,207,918 |
|
|
| CONTINGENCIES
AND COMMITMENTS |
|
10 |
-- |
-- |
|
|
|
------------ |
------------ |
|
|
194,721,968 |
119,542,329 |
|
|
============ |
============ |
|
|
|
|
| The
annexed notes from 1 to 27 form an integral part of these accounts. |
|
|
|
|
1996 |
1995 |
|
|
Note |
Rupees |
Rupees |
|
|
| TANGIBLE
OPERATING FIXED ASSETS |
|
11 |
1,067,502 |
1,266,153 |
|
| NET
INVESTMENT IN LEASE FINANCE |
|
12 |
135,191,838 |
73,336,776 |
|
| LONG
TERM INVESTMENTS IN SECURITIES |
|
13 |
16,066,800 |
16,066,800 |
|
| LONG
TERM DEPOSITS AND DEFERRED COSTS |
14 |
2,028,787 |
2,636,777 |
|
|
|
| CURRENT
ASSETS |
|
| Short
term investment in securities |
|
15 |
4,926,500 |
4,926,500 |
|
| Current
portion of net investment |
|
|
|
|
| in
lease finance |
|
16 |
34,784,411 |
13,152,397 |
|
| Advances, deposits, prepayments |
|
|
|
|
| and
other receivables |
|
17 |
586,102 |
697,962 |
|
| Cash
and bank balances |
|
18 |
70,028 |
7,458,964 |
|
|
------------ |
------------ |
|
|
40,367,041 |
26,235,823 |
|
|
|
------------ |
------------ |
|
|
194,721,968 |
119,542,329 |
|
|
============ |
============ |
|
|
| Profit
and Loss Account for the year ended June 30, 1996 |
|
|
|
1996 |
1995 |
|
|
Note |
Rupees |
Rupees |
|
| REVENUE |
|
| Income
from lease operations |
|
19 |
25,600,812 |
8,667,362 |
|
| Profit
on bank deposits and short term placements
20 |
235,631 |
5,566,889 |
|
| Gain
on sale of securities |
|
287,350 |
|
| Other
income |
|
21 |
17,760 |
100,000 |
|
|
------------ |
------------ |
|
|
26,141,553 |
14,334,251 |
|
| EXPENDITURE |
|
| Financial
charges |
|
22 |
5,444,760 |
133,029 |
|
| Administrative
and operating expenses |
23 |
3,811,471 |
2,482,653 |
|
| Diminution
in value of securities |
|
15 |
-- |
2,338,500 |
|
| Deferred
cost amortized |
|
14.1 |
607,990 |
455,993 |
|
|
------------ |
------------ |
|
|
9,864,221 |
5,410,175 |
|
|
|
------------ |
------------ |
|
| PROFIT
BEFORE TAXATION |
|
16,277,332 |
8,924,076 |
|
|
|
| PROVISION
FOR TAXATION |
|
| For
the year |
|
192,706 |
950,000 |
|
|
------------ |
------------ |
|
| NET
PROFIT AFTER TAXATION |
|
16,084,626 |
7,974,076 |
|
| UNAPPROPRIATED
PROFIT BROUGHT FORWARD |
|
6,379,261 |
-- |
|
|
------------ |
------------ |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
22,463,887 |
7,974,076 |
|
|
|
| APPROPRIATION |
|
| Proposed
dividend 15% |
|
150,000,001 |
-- |
|
| Transferred
to special reserve |
|
3,216,925 |
1,594,815 |
|
|
------------ |
------------ |
|
|
18,216,925 |
1,594,815 |
|
|
|
|
|
------------ |
------------ |
|
| UNAPPROPRIATED
PROFIT CARRIED FORWARD |
|
4,246,962 |
6,379,261 |
|
|
|
============ |
============ |
|
|
| The
annexed notes from 1 to 27 form an integral part of these accounts. |
|
|
| Statement
of Changes in financial Position (Cash Flow Statement) for the year ended
June 30, 1996 |
|
1996 |
1995 |
|
|
Rupees |
Rupees |
|
| A.
CASH FLOW FROM OPERATING ACTIVITIES |
|
| Profit
before taxation |
|
16,277,332 |
8,924,076 |
|
| Changes
not affecting working capital |
|
| Provision
for diminution in value of securities |
-- |
2,338,500 |
|
| Provision
for gratuity |
|
228,580 |
74,466 |
|
| Amortization
of deferred costs |
|
607,990 |
455,993 |
|
| Financial
charges |
|
5,444,760 |
133,029 |
|
| Depreciation |
|
201,791 |
244,347 |
|
|
------------ |
------------ |
|
|
6,483,121 |
3,246,335 |
|
|
|
|
|
------------ |
------------ |
|
| Operating
profit before working capital changes |
22,760,453 |
12,170,411 |
|
|
|
|
| Changes
in working capital |
|
| (Increase)/decrease
in current assets |
|
|
| Advances,
deposits, prepayments and other receivables |
150,954 |
(160,888) |
|
| Increase/(decrease)
in current liabilities |
|
|
| Loan
from associated companies |
|
-- |
(1,044,116) |
|
|
| Creditors,
accrued and other liabilities |
|
(46,840) |
(675,093) |
|
|
|
------------ |
------------ |
|
|
(46,840) |
(1,719,209) |
|
|
|
|
|
|
------------ |
------------ |
|
| Net
(Increase)/decrease in working capital |
|
104,114 |
'(1,880,097) |
|
| Financial
charges paid |
|
(4,900.688) |
'(133,029) |
|
| Tax paid |
|
(39,094) |
'(508,305) |
|
|
------------ |
------------ |
|
| Net
cash from operating activities |
|
17,924,785 |
9,648,980 |
|
|
|
=========== |
=========== |
|
|
|
|
| B.
CASH FLOW FROM INVESTING ACTIVITIES |
|
| Investment
in lease - Net |
|
(83,487,076) |
(86,489,173) |
|
| Investments
in securities - Net |
|
-- |
'(23,331,800) |
|
| Capital
expenditure |
|
(3,140) |
'(1,506,360) |
|
| -Deferred expenditure |
|
(50,095) |
|
| Long
term security deposit |
|
(52,820) |
|
|
------------ |
------------ |
|
| Net
cash used in investing activities |
|
(83,490,216) |
'(111,430,248) |
|
|
|
=========== |
=========== |
|
|
|
1996 |
1995 |
|
|
Rupees |
Rupees |
|
|
| C.
CASH FLOW FROM FINANCING ACTIVITIES |
|
| Share
capital |
|
-- |
50,000,000 |
|
| Long
term security deposits |
|
11,076,084 |
9,992,133 |
|
| Redeemable
capital |
|
22,500,000 |
-- |
|
| Repayment
of' redeemable capital |
|
(5,000,000) |
|
|
| Short
term bank borrowings |
|
29,743,703 |
-- |
|
| Finance
lease |
|
-- |
528,206 |
|
| Share
deposit money |
|
-- |
(800,000) |
|
| Repayment
of lease liability |
|
(143,292) |
(91,178) |
|
|
------------ |
------------ |
|
| Net
cash from financing activities |
|
58,176,495 |
59,629,161 |
|
|
|
=========== |
=========== |
|
|
| NET
INCREASE/(DECREASE)IN CASH AND BANK BALANCES (A+B+C) |
(7,388,936) |
(42,152,107) |
|
| CASH
AND BANK BALANCES AT THE BEGINNING OF THE YEAR |
7,458,964 |
49,611,071 |
|
|
------------ |
------------ |
|
| CASH
AND BANK BALANCES AT THE END OF THE YEAR |
|
70,028 |
7,458,964 |
|
|
|
=========== |
=========== |
|
|
| Notes
to the Accounts for the year ended June 30, 1996 |
|
| |
|
| 1.
STATUS AND ACTIVITIES |
|
| The
Company was incorporated as a public limited company on July 26, 1993 and is |
|
| listed
on the Stock Exchanges in Pakistan. |
|
|
| The
Company is classified as a non-banking financial institution by the State
Bank of |
|
