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| NatLease |
|
| NATIONAL
ASSET LEASING CORPORATION LIMITED |
|
| Annual
Report 1996 |
|
|
| CONTENTS |
|
| Company
Information |
|
|
1 |
|
| Notice
of Meeting |
|
|
2 |
|
| Directors'
Report |
|
|
3 |
|
| Auditors'
Report to the Members |
|
|
5 |
|
| Balance
Sheet |
|
|
6 |
|
| Profit
and Loss Account |
|
|
8 |
|
| Statement
of Changes in Financial Position |
|
9 |
|
| Notes
to the Accounts |
|
|
11 |
|
| Pattern
of Share Holding |
|
|
23 |
|
|
| COMPANY
INFORMATION |
|
|
| Chairman |
|
| Dr.
Khalid Iqbal |
|
|
| Chief
Executive/Managing Director |
|
| Mohammad
Ashiq Rehmani |
|
|
|
| Directors |
|
| Azhar
Tariq Khan |
|
| Syed
Naveed Zaidi |
|
| Rana
M. Abu Obaida |
|
| Shamira
I. Junejo |
|
| Sohail
Ali |
|
|
| Company
Secretary |
|
| Ayyaz
Ahmad |
|
|
| Bankers
of the Company |
|
| Crescent
Investment Bank Limited |
|
| Habib
Bank Limited |
|
| National
Development Finance Corporation |
|
| Muslim
Commercial Bank Limited |
|
|
| Auditors |
|
| Ford,
Rhodes, Robson, Morrow |
|
| Chartered
Accountants, |
|
| Finlay
House, I. I. Chundrigar Road, Karachi. |
|
|
| Share
Registrars |
|
| Noble
Computer Services (Private) Limited |
|
| 2nd
Floor, AI-Manzoor Building |
|
| Dr.
Ziauddin Ahmed Road, Karachi. |
|
|
| Registered
Office |
|
| l-B,
First Floor, All Plaza, |
|
| Khayaban-e-Quaid-e-Azam, |
|
| Blue
Area, Islamabad |
|
| Phones:
270626 & 822513 |
|
| Fax:
(92-51) 272506 |
|
|
| Head
Office |
|
| 9th
Floor, Lakson Square, Building No 1, |
|
| 265
R. A. Lines, Karachi. |
|
| Phones:
5687412, 5687419, 5689580 & 5682027 |
|
| Fax:
(92-21) 5684259 |
|
| Telex:
20538 ASSET PK. |
|
|
| NOTICE
OF MEETING |
|
| Notice
is hereby given that the Sixth Annual General Meeting of National Asset
Leasing |
|
| Corporation
Limited will be held at l-B, First Floor, All Plaza, Khayabon e Quaid-e-Azam,
Blue |
|
| Area,
Islamabad on Tuesday, December 31, 1996 at 11.00 a.m. to transact the
following business. |
|
| Ordinary
Business: |
|
| 1.
To confirm the Minutes of the Fifth Annual General Meeting held on July 20,
1995. |
|
|
|
|
| 2.
To receive, consider and adopt the Audited Accounts of the Company together
with |
|
| Directors'
and Auditors' report thereon for the eighteen months ended June 30, 1996. |
|
|
| 3.
To appoint Auditors and to fix their remuneration for the year 1996 97. M/s.
Ford, Rhodes, |
|
| Robson, Morrow, Chartered Accountants, the
present Auditors, retire and being eligible, |
|
| offer themselves for reappointment. |
|
|
| 4.
To transact any other business with the permission of the Chair. |
|
|
| By
Order Of the Board |
|
| AYYAZ
AHMAD |
|
| Company
Secretary |
|
|
|
|
| Islamabad:
December 3, 1996 |
|
|
| NOTES: |
|
| 1.
The Share Transfer Books of the Company will remain closed from December 24,
1996 |
|
| to
December 31, 1996 (both days inclusive). |
|
|
|
|
| 2.
A member entitled to attend and vote at this meeting may appoint another
member |
|
| as his/her proxy to attend and vote on
his/her behalf. Proxies in order to be effective |
|
| must be received at the Company's
Registered Office at Islamabad at least 48 hours |
|
| before the time of holding the meeting. |
|
|
|
| 3.
The members are requested to please notify to the Company any change in their
addresses. |
|
|
|
| DIRECTORS'
REPORT |
|
| On
behalf of the Board of Directors of National Asset Leasing Corporation
Limited, I am pleased |
| to
present the Fifth Annual Report together with the audited accounts for the
period ended |
|
| June
30, 1996. |
|
|
| Financial
Results |
|
| Faced
with trying circumstances of economic environment and scarcity of funds we
are grateful |
|
| as
ever for Allah's boundless mercy to enable NatLease to meet the challenge and
maintain |
|
| reasonable
financial results for the period ended June 30, 1996, as appended below: |
|
|
|
|
Rupees |
|
|
|
|
| Gross
Income |
|
57,315,287 |
|
| Expenditure |
|
48,679,217 |
|
|
|
|
----------- |
|
| Profit
before provisions |
|
8,636,070 |
|
| Provisions |
|
910,021 |
|
|
|
|
----------- |
|
| Net
profit after provisions |
|
7,726,049 |
|
| Unappropriated
profit brought forward |
|
1,555,301 |
|
|
|
|
----------- |
|
| Profit
available for appropriations |
|
9,281,350 |
|
|
|
|
=========== |
|
|
|
|
|
|
| Appropriations: |
|
| Transfer
to reserve fund |
|
1,545,210 |
|
| Unappropriated
profit carried forward |
|
7,736,140 |
|
|
|
|
----------- |
|
|
|
9,281,350 |
|
|
=========== |
|
|
|
| Operations: |
|
| During
the eighteen months ended June 30, 1996 the major sources of revenue include; |
|
|
| Income
from leasing operations |
|
89.80% |
|
| Income
from bank deposits |
|
2.98% |
|
| Income
from investment |
|
3.15% |
|
| Capital
gain |
|
3.90% |
|
| Others |
|
|
0.17% |
|
|
| The
operations of the period under review reflect our untiring efforts to achieve
a desirable |
|
| performance
despite continued recession in the economy hampering broad business base |
|
| and
constrains of resource mobilization. |
|
|
| Despite
all above, NatLease had posted Rs. 7.726 million profit for the .period ended
30th June |
| 1996. |
|
|
| We
do acknowledge that due to our assessment of the present times, we have been
very |
|
| conservative
on comparative basis. We have laid more stress on recovery efforts and paying |
|
| off
liabilities rather than enchanting our operations. |
|
|
| Our
management made extra efforts to minimise expensive borrowing and work with
selectivity |
|
| and
caution and minimise sensitive exposure to maintain profitability, |
|
|
| Future
Prospects |
|
| NatLease
continues to concentrate on its core business of lease finance and enhance
its facility |
| to
operating leases and consumers durables as part of future plans, we have
enchanced and |
|
| geared
up professionals ability to meet the requirement of newly evolved marketing
strategy |
|
| for
better profitability in future. |
|
|
| We
have to restrict sensitive exposure, evolve innovative modes and professional
techniques |
|
| and
gear-up funding requirement at reasonable cost to meet this challenge and
give the |
|
| expected
results. |
|
|
| Management
is confident that it will come up with the expectations of its share holders
and |
|
| achieve
the self-assigned challenge in shape of better results. |
|
|
| Acknowledgment |
|
| We
wish to place on record our gratitude to our valuable clients, financial
institutions, Corporate |
| Law
Authority, State Bank of Pakistan and our share holders for their continued
valued support, |
| guidance
and cooperation. |
|
|
| The
contribution of all staff members is note-worthy and we take pride in their
devotion, hard- |
| work
and dedication. We earnestly feel that nothing was possible without Allah's
blessings and |
|
| infinite
mercy. |
|
|
| We
pray for Allah's blessing, mercy and guidance for achieving better results in
years to come |
|
| (Ameen). |
|
|
| M.
A. Rehmani |
|
| Managing
Director |
|
|
| Islamabad:
December 3,1996 |
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| We
have audited the annexed balance sheet of NATIONAL ASSET LEASING CORPORATION |
|
| 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 statement of
accounting policies |
| and
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
thereof, we |
|
| report
that: |
|
|
| (a)
in our opinion, proper books of account have been kept by the company a,~
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 eighteen months was for the purpose of
the |
|
| company's
business; and |
|
|
| (iii)
the business conducted, investments made and the expenditure incurred during |
|
| the
eighteen months 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 (cash flow statement),
together with the statement of accounting policies |
|
| and notes forming part thereof, give the
information required by the Companies Ordi- |
|
| nance, 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 for the eighteen
months then ended; and |
|
|
| (d)
in our opinion Zakat deductible at source, under the Zakat and ushr
Ordinance, 1980, |
|
| was
deducted by the company and deposited in the Central Zakat Fund established |
|
| under
section 7 of that Ordinance, |
|
|
| Sd/- |
|
|
| FORD,
RHODES, ROBSON, MORROW |
|
| Chartered
Accountants |
|
|
| Karachi:
December 3, 1996 |
|
|
| BALANCE
SHEET |
|
| AS
AT JUNE 30, 1996 |
|
|
|
June 30, |
December 31, |
|
|
|
|
1996 |
1994 |
|
|
|
Note |
Rupees |
Rupees |
|
|
| Share
Capital And Reserves |
|
|
| Authorised |
|
| 10,000,000
ordinary shares of |
|
| Rs.
10 each |
|
|
100,000,000 |
100,000,000 |
|
|
|
|
=========== |
=========== |
|
|
|
|
| Issued,
subscribed and paid-up |
|
| 9,536,800
(1994: 9,536,800) ordinary |
|
| shares
of Rs. 10 each fully paid in cash |
|
95,368,000 |
95,368,000 |
|
|
|
|
| Reserves |
|
|
|
| Reserve
fund (capital reserve) |
|
3 |
8,848,215 |
7,303,005 |
|
| Unappropriated
profit |
|
|
7,736,140 |
1,555,301 |
|
|
|
|
----------- |
----------- |
|
|
|
|
|
16,584,355 |
8,858,306 |
|
|
|
|
----------- |
----------- |
|
|
|
|
111,952,355 |
104,226,306 |
|
|
|
|
|
|
| REDEEMABLE
CAPITAL-SECURED |
|
4 |
27,987,978 |
7,026,664 |
|
| LONG
TERM FINANCE-SECURED |
|
5 |
20,000,000 |
1,866,374 |
|
| OBLIGATION
UNDER FINANCE LEASE |
|
6 |
612,828 |
413,318 |
|
| LEASE
KEY MONEY |
|
7 |
19,457,073 |
22,888,931 |
|
| CERTIFICATES
OF INVESTMENT |
|
8 |
7,800,000 |
9,300,000 |
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
| Current
portion of redeemable capital |
|
|
5,976,029 |
5,596,580 |
|
| Current
portion of long term finance |
|
|
17,994,685 |
4,907,229 |
|
| Current
portion of obligation under |
|
|
| finance
leases |
|
|
422,542 |
342,498 |
|
| Current
portion of lease key money |
|
|
5,624,744 |
3,939,146 |
|
| Certificates
of investment |
|
8 |
33,500,000 |
20,000,000 |
|
| Short
term finance |
|
9 |
19,506,562 |
43,732,177 |
|
| Book
overdraft with banks/DFI |
|
|
29,082,779 |
16,038,889 |
|
| Accrued
and other liabilities |
|
10 |
15,387,727 |
5,727,172 |
|
| Proposed
dividend |
|
|
-- |
14,305,200 |
|
|
|
|
----------- |
----------- |
|
|
|
|
127,495,068 |
114,588,891 |
|
| COMMITMENTS
AND CONTINGENCIES |
|
|
11 |
|
|
|
|
----------- |
----------- |
|
|
|
|
315,305,302 |
260,310,484 |
|
|
|
|
=========== |
=========== |
|
|
|
|
|
June 30, |
December 31, |
|
|
|
|
1996 |
1994 |
|
|
|
Note |
Rupees |
Rupees |
|
|
| TANGIBLE
FIXED ASSETS |
|
12 |
6,317,481 |
4,701,690 |
|
| NET INVESTMENT IN LEASE |
FINANCE |
|
13 |
154,698,238 |
103, 511,421 |
|
| LONG
TERM INVESTMENTS |
|
14 |
43,581,048 |
27,667,281 |
|
| LONG
TERM DEPOSITS, PREPAYMENTS |
|
|
| AND
DEFERRED COSTS |
|
15 |
1,750,596 |
628,416 |
|
|
|
| CURRENT
ASSETS |
|
| Current
portion of net investment |
|
| in
lease finance |
|
|
13 |
89,079,020 |
73,927,020 |
|
|
|
|
| Advances,
deposits, prepayments |
|
| and
other receivables |
|
|
16 |
18,290,647 |
37,635,028 |
|
|
|
|
| Cash
and bank balances |
|
|
17 |
1,588,272 |
12,239,628 |
|
|
|
|
----------- |
----------- |
|
|
|
108,957,939 |
123,801,676 |
|
|
|
|
|
----------- |
----------- |
|
|
|
315,305,302 |
260,310,484 |
|
|
|
|
=========== |
=========== |
|
|
| The
annexed notes form an integral part of these accounts, |
|
| The
auditors' report is annexed hereto, |
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE EIGHTEEN MONTHS ENDED JUNE 30, 1996 |
|
|
|
Eighteen |
Year |
|
|
|
|
months ended |
ended |
|
|
|
|
June 30, |
Dec. 31, |
|
|
|
1996 |
1994 |
|
|
|
Note |
Rupees |
Rupees |
|
|
|
| REVENUE |
|
| Income
from leasing operations |
|
18 |
51,471,095 |
23,274,677 |
|
| Profit
on sale of investments |
|
|
2,235,117 |
10,348,163 |
|
| Other
income from investments/ |
|
|
| Government
securities |
|
|
1,804,238 |
729,288 |
|
| Income
from bank deposits |
|
|
1,709,118 |
2,005,778 |
|
| Profit/(Loss)
on disposal of fixed assets |
|
95,719 |
25,324 |
|
| Other
income |
|
|
-- |
65,486 |
|
|
|
|
----------- |
----------- |
|
|
|
|
57,315,287 |
36,448,716 |
|
| EXPENDITURE |
|
|
| Return
and financial charges |
|
19 |
33,030,822 |
13,748,464 |
|
| Administrative
and operating expenses |
|
20 |
15,185,775 |
7,350,775 |
|
| Amortisation
of deferred costs |
|
|
462,620 |
408,945 |
|
|
|
|
----------- |
----------- |
|
|
|
|
48,679,217 |
21,508,184 |
|
|
|
|
|
|
|
|
|
----------- |
----------- |
|
| PROFIT
FOR THE YEAR BEFORE PROVISIONS |
|
|
8,636,070 |
14,940,532 |
|
|
| PROVISIONS |
|
| For
doubtful debts |
|
|
410,021 |
353,285 |
|
| For
diminution in value of investments |
|
-- |
(348,185) |
|
|
|
|
----------- |
----------- |
|
|
|
|
410,021 |
5,100 |
|
|
|
|
|
|
|
|
|
----------- |
----------- |
|
| PROFIT
FOR THE YEAR BEFORE TAXATION |
|
|
8,226,049 |
14,935,432 |
|
|
|
|
|
|
|
| PROVISION
FOR TAXATION |
|
| Current |
|
|
|
500,000 |
715,496 |
|
| Prior |
|
|
|
-- |
551,951 |
|
|
|
|
----------- |
----------- |
|
|
|
|
500,000 |
1,267,447 |
|
|
|
|
|
|
|
|
|
----------- |
----------- |
|
| NET
PROFIT FOR THE YEAR AFTER TAXATION |
|
|
7,726,049 |
13,667,985 |
|
|
|
|
|
|
|
| UNAPPROPRIATED
PROFIT BROUGHT FORWARD |
|
|
1,555,301 |
4,926,113 |
|
|
|
|
----------- |
----------- |
|
|
|
|
9,281,350 |
18,594,098 |
|
| APPROPRIATIONS |
|
| Transfer
to reserve fund |
|
|
1,545,210 |
2,733,597 |
|
| Proposed
dividend |
|
14,305,200 |
|
|
|
|
----------- |
----------- |
|
|
|
|
|
|
1,545,210 |
17,038,797 |
|
|
|
|
|
|
|
|
|
|
|
----------- |
----------- |
|
| UNAPPROPRIATED
PROFIT CARRIED FORWARD |
|
|
7,736,140 |
1,555,301 |
|
|
|
|
=========== |
=========== |
|
|
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| (CASH
FLOW STATEMENT) |
|
| FOR
THE EIGHTEEN MONTHS ENDED JUNE 30, 1996 |
|
|
Year |
Eighteen |
|
|
ended |
months ended |
|
|
Dec, 31, |
June 30, |
|
|
1994 |
1996 |
|
|
|
Rupees |
Rupees |
|
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
|
| Net
Profit for the period/year before tax |
|
8,226,049 |
14,935,432 |
|
|
|
|
| Adjustments
for: |
|
|
| Depreciation
on fixed assets |
|
|
1,651,459 |
863,402 |
|
| Amortisation
of deferred costs |
|
462,620 |
408,945 |
|
| Income
from long term investments |
|
(1,402,917) |
(685,098) |
|
| (Gain)/Loss
on sale of fixed assets |
|
(95,719) |
(25,324} |
|
| Provision
for diminution in value of investments |
|
-- |
(348,185) |
|
| Provision
for doubtful debts |
|
|
410,021 |
353,285 |
|
| Return
and financial charges on borrowings |
|
24,604,141 |
10,130,320 |
|
|
----------- |
----------- |
|
|
|
25,629,605 |
10,697,345 |
|
|
|
|
|
|
----------- |
----------- |
|
|
|
33,855,654 |
25,632,777 |
|
| (Increase)/decrease
in advances, prepayments |
|
| and
other receivables |
|
|
17,344,380 |
(30,603,363) |
|
| Increase/(decrease)
in accrued and other |
|
| liabilities |
|
|
9,660,555 |
(9, 291,255) |
|
| (Increase)/decrease
in long term deposits |
|
(84,800) |
100,376 |
|
| Increase/(decrease)
in Certificates of |
|
| Investment |
|
|
12,000,000 |
10,000,000 |
|
| Increase/(decrease)
in lease key money |
|
(1,746,260) |
10,946,718 |
|
| Decrease
in short term investments |
|
-- |
2,308,380 |
|
| (Increase)/decrease
in Government securities |
|
-- |
(1,000,000) |
|
|
----------- |
----------- |
|
|
|
|
37, 173,875 |
(17,539,144) |
|
|
|
|
|
----------- |
----------- |
|
| Net
cash generated/(used)in operating activities |
|
71,029,529 |
8,093,633 |
|
|
|
|
|
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
| Purchase
of fixed assets |
|
(4,438,530) |
(2,205,822) |
|
| Sale
of fixed assets |
|
1,267,000 |
422,700 |
|
| Investment
in lease finance (net of recoveries) |
|
(66,748,838) |
(36,402,075) |
|
| (Increase)/decrease
in long term investments |
|
(15,913,767) |
29,966,562 |
|
| Income
from investments |
|
1,402,917 |
685,098 |
|
|
----------- |
----------- |
|
| Net
cash generated/(used)in investing activities |
|
(84,431,218) |
(7,533,537) |
|
|
|
|
|
|
|
----------- |
----------- |
|
| Total
carried forward |
|
(13,401,689) |
560,096 |
|
|
|
|
|
Eighteen |
Year |
|
|
|
|
months ended |
ended |
|
|
|
|
June 30, |
Dec 31, |
|
|
|
|
1996 |
1994 |
|
|
|
|
Rupees |
Rupees |
|
|
| Total
brought forward |
|
|
(13,401,689) |
560,096 |
|
|
|
|
|
|
|
| CASH
FLOWS FROM FINANCING ACTIVITIES |
|
| Increase/(decrease)
in redeemable capital |
|
21,340, 763 |
(4,991,433) |
|
| Increase/(decrease)
in long term finance |
|
31,221,082 |
(4,017,782) |
|
| Increase/(decrease)
in obligation under |
|
|
|
|
| finance
leases |
|
|
279,554 |
(709,070) |
|
| Dividend
paid |
|
(14,305,200) |
-- |
|
| Increase/(decrease)
in short term finance |
|
(24,225,615) |
2,688,641 |
|
| Return
and financial charges on borrowings |
|
(24,604,141) |
(10,130,320) |
|
|
----------- |
----------- |
|
|
|
|
| Net
cash generated/(used) in financing activities |
|
(10,293,557) |
(17,159,964) |
