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National Development Leasing Corporation Limited
(Annual Report 1996)
Contents
Board of Directors 3
Directors' Report 4
Financial Highlights 10
Auditors' Report 11
Financial Statements 12
Pattern of Shareholding 36
Company Information 38
Notice of Meeting 40
Board of Directors
Mohammad Salim (Director)
S.M. Naseem (Director)
Shahid Hassan (Director)
S.G. Abbas (Director)
Abdul Shakoor (Director)
S.M. Saleera (Chairman)
Mohammad Naseem (Director)
Tayyeb Afzal (Managing Director & CE0)
Directors' Report to the Shareholders
The Board of Directors are pleased to announce the financial results for the eighteen months
ended June 30, 1996. In compliance with the Finance Act, 1995, your Corporation has changed
its year end from December to June and are therefore presenting financial statements for the
period January 1995 to June 1996.
Board of Directors
The composition of the Board of Directors has not changed except that Mr. S.M. Saleera was
elected Chairman of the Corporation in place of Mr. Mohammad Salim on completion of his tenure.
The Board wishes to place on record its appreciation for his valuable contribution and guidance to
the Corporation.
Financials
Your directors are pleased to report an after tax profit of Rs 211.6 million during the eighteen months
ended June 30, 1996, representing a year on year increase of 20%, and propose that profits be
appropriated as under:
(Rupees in 000's)
Jun 1996 Dec 1994
Profit before Tax 266,619 187,156
Provision for Tax 55,000 30,000
Profit after Tax 211,619 157,156
Unappropriated profit brought forward 983 89
-------- --------
212,602 157,245
APPROPRIATIONS
Proposed Final Dividend 107,827 38,775
Reserve for issue of Bonus Shares - 64,625
Transfer to General Reserve 90,000 45,000
Transfer to Special Reserve 10,580 7,862
-------- --------
208,407 156,262
-------- --------
Unappropriated Profit carried forward 4,195 983
======== ========
Dividend
Your directors are pleased to recommend a cash dividend of 30%.
The Economy
The economic performance of the country during the recent past evokes a mixed response. GDP
growth estimates were revised downwards to 6.5% and the deficit target fixed at 5% of GDP.
These indicate that the economy is poised to move sideways despite attempts to improve
revenue collection. With agriculture still escaping tax, little cut in government expenditure,
export base overly reliant on cotton and agriculture, it is quite likely that the economic
health of the country will remain hinged on agriculture's performance in the foreseeable
future.
While the above factors subdue economic expansion, the full effect of last year's better
cotton crop is expected to trickle down in the coming year to the rest of the economy.
Resilience of the agriculture sector will help attain GDP growth of around 6% in the medium
to long term.
The Year in Review
Despite a less than encouraging economic backdrop, your Corporation has shown results that
speak of its commitment and resilience to a changing investment environment. Since your
Corporation commands a significant presence in the sector, we have no doubt been touched
by the variables affecting the economy of the country in general and the leasing industry in
particular. The year 1996 heralded some significant changes to the regulatory framework
under which Non Bank Financial Institutions (NBFIs) operate. These amendments in essence
streamline resource mobilisation, specifically the 3 and 6 months Foreign Currency deposits
and the repo window with scheduled banks. After a spate of negotiations with the State Bank
of Pakistan, NBFIs have been granted an eighteen month period over which short term foreign
exchange funding is to be converted into longer tenors. In the long term these rules will steer
NBFIs in the right direction, although impact of immediate adjustments will be felt. For
National Leasing these reforms come as a manifestation of our own feel for the direction
in which all NBFIs should be heading.
Operating Results
Your Corporation has posted profits that demonstrate the measure of success in a changing
environment. On a year on year basis lease investment grew by 37% and lease income rose
by 40%. At the same time Net Profits increased by 20%, resulting in an earning of Rs 2.26
for a five rupee share. Total assets showed robust growth at 15%, boosted by lease disbursements of
Rs 1,659 million.
Your Corporation has taken a conservative view of the country's stock markets and marked
all equity investment down to the market values. We feel this is not only prudent but also positions
your Corporation to take advantage of any future upward trend in share prices.
We continue to make concerted efforts to improve recoveries, especially from defaulters. Your
Corporation did not hesitate in initiating several legal proceedings.
Revised Focus
In order to increase our approach in the retail segment of the market, your Corporation launched
new products, employing advanced advertising techniques that ensure greater market penetration.
Such focus is expected to lead towards a larger pool of funds thereby helping improve long term
funds ratio. The opening of a second branch in Lahore and the launching of two income growth
Certificates (for longer tenors) bears witness to our commitment to tap the retail market.
On the asset creation side, we are also focusing on leasing small ticket items in the form of
General Product Leasing. Having developed a substantial portfolio of big ticket items, we
are confident that your Corporation has achieved the financial strength and expertise that is
crucial for success in a retail environment.
Funding for the Future
The industry inheretingly faces the challenge of mismatch between tenors of sources of
funds and their utilisation. We therefore, continue to solicit long term lines from multilateral
agencies with whom our past performance has held us in good stead. At the same time
your Corporation is considering other avenues of funding like Asset Securitisation, Term
Finance Certificates, etc.
We have also been successful in establishing credit lines worth Rs 710 million. Efforts are
now being made to stretch their tenors to longer term. In addition we have undrawn
approved lines worth USD 23.8 million from multilateral agencies. Another USD 15 million
are under discussion.
Mission Statement
National Leasing will continue to play its role as a premier leasing company. We will focus on
our core business, while diversifying the portfolio. In continuation of our policy, exposure in
textile sector reduced to 25% compared to 40% in June 1995. We have curbed activities in
underwriting and Pre IPO commitments, as equity markets are expected to show
volatility.
We strongly believe that the single most important factor that will empower us to ride through
the upcoming challenges is based upon the quality of our customer services. We will therefore,
endeavour to continue to innovate products tailored to customer needs, adapt our internal
work flows to suit customer conveniences and vigorously train staff to better handle customer
needs.
Your Corporation is poised to face upcoming challenges in an ever changing environment.
We intend to step into the next century with a more focused outlook on planning, management
and a clear, long term vision encompassing all aspects of the business. The potential is
immense, and we hope to set our sights with undistracted attention to the business we know
best - leasing.
Auditors
The retiring auditors Messrs Ford, Rhodes, Robson, Morrow, Chartered Accountants, being
eligible, offer themselves for reappointment.
Acknowledgment
We offer our sincere gratitude to the Board of Directors, for their continued guidance and support.
Their insight has given us the edge over competition, and allowed us the leverage to adapt
to an aggressively changing environment.
Our sincere thanks to the thousands of Customers and Clients for their faith and trust in us
and for their patience and understanding in dealing with us.
We also wish to place on record our appreciation of all staff members, who have demonstrated
unflinching support for the Corporation, and have risen to the demands of the organisation
time and again.
Shareholding Pattern
A statement reflecting the pattern of shareholding is attached to the Annual Report.
On behalf of the Board
Tayyeb Afzal
Managing Director
Karachi, October 15, 1996. & Chief Executive
Financial Highlights
Year ended June 30 1996 1995 Growth
          Rupees in %
Shareholders' Equity 1,139 m 995 m 14
Profit After Tax 162 m 135 m 20
Balance Sheet Footings 5,272 m 4,599 m 15
Net Investment in Lease Finance 3,971 m 2,914 m 36
Total Assets Leased 8,080 m 6,410 m 26
Lease Income 581 m 414 m 40
Earnings per Rupee 5 Share 2.26 1.88 20
Auditors' Report to the Members
We have audited the annexed balance sheet of National Development Leasing Corporation Limited
as at June 30, 1996 and related profit and loss account and statement of changes in financial
position, together with the notes forming part thereof, for the period 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 thereto 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 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 30, 1996 and of the profit and the
  changes in financial position for the period 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.
Ford, Rhodes, Robson, Morrow
Karachi, October 23, 1996. Chartered Accountants
Balance Sheet as at June 30, 1996
(Rupees in 000's)
30-Jun Dec 31
Capital and Liabilities Note 1996 1994
SHARE CAPITAL AND RESERVES
Authorised Capital
100,000,000 Ordinary Shares of Rs 5 each 500,000 500,000
Issued, Subscribed and Paid-up Capital 3 359,424 258,500
Reserves 4 779,998 687,206
-------- --------
Shareholders' Equity 1,139,422 945,706
DEFERRED LIABILITIES
Provision for Gratuity 3,280 1,590
LONG TERM FINANCE AND LIABILITIES
Long Term Finance 5 738,150 794,865
Certificates of Investment 6 221,528 257,255
Deposits on Lease Contracts 7 466,988 289,209
1,426,666 1,341,329
CURRENT LIABILITIES
Short Term Finance 8 478,365 250,000
Current Maturity
Long Term Finance 5 255,951 180,854
Certificates of Investment 6 1,533,915 624,464
Deposits on Lease Contracts 7 48,538 50,218
Accrued Expenses and Other Liabilities 9 264,715 167,512
Provision for Taxation 10 13,286 44,083
Proposed Final Dividend 107,827 38,775
-------- --------
2,702,597 1,355,906
COMMITMENTS AND CONTINGENCIES 11
-------- --------
5,271,965 3,644,531
======== ========
The annexed notes form an integral part of the financial statements.
The auditors' report is annexed thereto.
(Rupees in 000's)
Note Jun 30 Dec 31
1996 1994
Property and Assets
FIXED ASSETS 12 56,307 53,278
LONG TERM ADVANCES 13 12,238 8,776
LONG TERM DEPOSITS 14 115,714 -
LONG TERM INVESTMENTS 15 49,667 106,108
NET INVESTMENT IN LEASE FINANCE 16 2,904,723 1,885,322
DEFERRED COSTS 17 6,120 2,850
CURRENT ASSETS
Short Term Finance 18 293,613 231,907
Net Investment in Lease Finance -
current portion 16 1,066,275 853,920
Short Term Investments 19 353,870 290,832
Income Accrued or Due 47,977 10,413
Advances, Deposits, Prepayments and
Other Receivables 20 229,154 101,898
Cash and Bank Balances 21 136,307 99,227
-------- --------
2,127,196 1,588,197
-------- --------
5,271,965 3,644,531
======== ========
Profit and Loss Account for eighteen-months ended June 30, 1996
(Comparatives are for the year ended December 31, 1994)
(Rupees in 000's)
Jun 30 Dec 31
Note 1996 1994
INCOME
Lease Income 806,810 398,634
Income from Investments/Finance 22 252,187 104,904
Other Income 23 56,044 36,818
-------- --------
1,115,041 540,356
EXPENDITURE
Financial charges/return on borrowings 24 274,674 159,757
Return on Certificates of Investment 366,768 108,529
Administrative and Operating Expenses 25 113,086 48,491
-------- --------
754,528 316,777
-------- --------
OPERATING PROFIT BEFORE PROVISIONS 360,513 223,579
PROVISIONS - Doubtful Debts 34,503 20,834
- Investments - provision/write-off 59,391 15,589
-------- --------
93,894 36,423
-------- --------
PROFIT BEFORE TAXATION 266,619 187,156
PROVISION FOR TAXATION 10 55,000 30,000
-------- --------
NET PROFIT AFTER TAXATION 211,619 157,156
UNAPPROPRIATED PROFIT BROUGHT FORWARD 983 89
-------- --------
PROFIT AVAILABLE FOR APPROPRIATION 212,602 157,245
APPROPRIATIONS
Proposed Final Dividend 30% (1994: 15%) 107,827 38,775
Transfer to General Reserve 90,000 45,000
Transfer to Special Reserve 10,580 7,862
Reserve for Issue of Bonus Shares - 64,625
-------- --------
208,407 156,262
-------- --------
UNAPPROPRIATED PROFIT CARRIED FORWARD 4,195 983
======== ========
The annexed notes form an integral part of the financial statements.
Statement of Changes in Financial Position for eighteen months ended June 30, 1996
(Comparatives are for the year ended December 31, 1994)
(Rupees in 000's)
Jun 30 31-Dec
1996 1994
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation 266,619 187,156
Adjustments to reconcile profit to net Add:
cash provided by operating activities
Fixed assets depreciation 10,972 6,100
'profit on sale (5,053) (832)
Provision -for doubtful debts 34.52 20,833
for gratuity 1.69 655
for investments 59.39 15,589
Amortisation of deferred costs 3,041 993
Income from long term investments (38,554) (19,785)
Mark-up from borrowings and return on
Certificates of Investment 485,246 267,447
-------- --------
551,256 291,000
-------- --------
817,875 478,156
Increase in operating assets (309,853) (239,255)
Increase in operating liabilities 325,569 182,747
-------- --------
833,591 421,648
Income tax paid (85,797) (21,856)
-------- --------
Net cash generated from operating activities 747,794 399,792
CASHFLOW FROM INVESTING ACTIVITIES
Long Term Deposits (115,714) -
Long Term Investments - income 38,554 19,785
- purchases (2,950) (59,274)
- sale 9,090 3,864
- purchases (18,038) (44,449)
Investment in lease finance (net of recoveries) (1,262,788) (416,248)
Long term advances (net of recoveries) (4,472) (5,697)
Recoveries of long term finance 17,807 23,107
-------- --------
Net cash used in investing activities (1,338,511) (478,912)
-------- --------
Total carried forward (590,717) (79,120)
Statement of Changes in Financial Position
(Rupees in 000's)
Jun 30 Dec 31
1996 1994
Total brought forward (590,717) (79,120)
CASHFLOW FROM FINANCING ACTIVITIES
Mark-up on borrowings/Certificates
of Investment (485,246) (267,447)
Repayment of long term finance 56,606 187,108
Certificates of Investment 873,724 210,486
Deposits from lessees - net 176,099 72,020
Issue of share capital 51,700 -
Deferred cost (6, 311) (3,842)
Dividend paid (38, 775) (51,699)
-------- --------
Net Cash generated from financing activities 627,797 146,626
======== ========
Net increase in Cash 37,080 67,506
CASH AND BANK BALANCES AT THE BEGINNING
OF THE PERIOD 99,227 31,721
-------- --------
CASH AND BANK BALANCES AT THE END OF THE PERIOD 136,307 99,227
======== ========
S.M. Saleem Tayyeb Afzal
Chairman Managing Director
& Chief Executive
Notes to the Financial Statements for eighteen months ended dune 30, 1996
1. THE CORPORATION AND ITS ACTIVITIES
The Corporation was incorporated in 1984 in Pakistan and is listed on the three stock exchanges
of Pakistan. The principal business activity is conducted through branches in all the major cities
in Pakistan comprising leasing, obtaining and providing finance. It has also been declared a
Development Finance Institution (DFI) by the Government of Pakistan.
The Corporation changed its financial year from December to June in compliance with the Finance
Act, 1995. Accordingly, these financial statements cover the period of eighteen months ended
June 30, 1996.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Accounting convention
  The financial statements are prepared under the historical cost convention.
2.2 Taxation
The charge for current taxation for the year, is based on taxable income at the current rates
of taxation which is computed as if all leases are operating leases, after taking into account
allowances for the year available for depreciation in respect of fixed assets under lease finance.
The tax effect for deferred taxation is calculated using the liability method on all major
timing differences which are expected to reverse within the next three years.
2.3 Employees' retirement benefits
The Corporation operates a contributory provident fund for all its permanent employees
and contributions are made by the Corporation in accordance with the fund rules. The
Corporation also has an unfunded staff gratuity scheme in respect of which provisions
are made.
2.4 Fixed assets and depreciation
Fixed assets are stated at cost less accumulated depreciation. Depreciation is charged to
income applying the straight line method over the estimated useful lives.
2.5 Foreign currencies
Assets and liabilities in foreign currencies are recorded at the exchange rate applicable on
the transaction date (except where forward exchange contracts have been entered into) and
are translated at the balance sheet date at the exchange rates prevailing at year end.
Gains and losses on translation are taken to the Profit and Loss Account.
2.6 Government Securities repurchase transactions
The Corporation also enters into transactions of repurchase or resale of registered Government
Securities at contracted rates for specified periods of time. These are recorded as follows:
(a) in the case of sale under repurchase obligations the securities are deleted from the books
  at cost and the charges arising from the differential in sale and repurchase values are accrued
  on a pro-rata basis and recorded under income from Government Securities. Upon repurchase
  the securities are reinstated at their respective original cost.
(b) in the case of purchases under resale obligations the securities are booked at the contracted
  purchase price and the differential of the contracted purchase and resale prices is
  amortised over the period of the contract and recorded under income from Government
  Securities.
2.7 Deferred Cost
Front end fees are amortized over the period during which the benefits accrue in the underlying
transactions.
2.8 Investments
Long term investments are stated at cost. Provision is made for any diminution in value, if
considered permanent. Short term investments are stated at lower of cost and market value on
a portfolio basis.
2.9 Revenue recognition
The financing method is used in accounting for income on direct financing leases. Under this
method the unearned income - i.e. the excess of aggregate lease rentals and the estimated
residual value over the net investment (cost of leased asset) - is deferred and then amortized
to income over the term of the lease, applying the annuity method to produce a constant rate
of return on the net investment in the lease.
Mark-up profit earned on term finance certificates and finance on a mark-up/buy-back agreement
basis is recognised on a time proportion basis taking account of, where applicable, the relevant
buy-back dates and prices, or where a specific schedule of recoveries is prescribed in the agreement,
the respective dates when mark-up is required to be paid to the Corporation.
Income on Government Securities is recognised by pro-rata accruals of the differential in cost
and maturity values and/or the coupon rate applicable.
Fees for project examination, commitment fee and other commission etc., are recognised as
income when realised.
(Rupees in 000's)
Jun 30 Dec 31
1996 1994
3. ISSUED, SUBSCRIBED AND PAID-UP CAPITAL
Ordinary Shares 33,395,943 (1994: 26,136,044)
of Rs 5 each fully paid in cash 166,979 130,680
Ordinary Shares 38,489,000 (1994: 25,563,956)
of Rs 5 each issued as bonus shares 192,445 127,S20
-------- --------
359,424 258,500
======== ========
During the period the International Finance Corporation exercised its full option under the
terms of the loan agreement to convert 10% of its loan into 2,089,899 ordinary shares at
Rs 18.29 per share.
4. RESERVES
4.1 Capital Reserves
- Reserve for contingencies 44,241 44,241
- Special Reserves (Reserve Fund)
Balance at the beginning of the period 19,648 11,786
Transfer from Profit and Loss Account 10,580 7,862
-------- --------
Balance at the end of the period 30,228 19,648
- Premium on issue of shares
Balance at the beginning of the period 36,709 36,709
Addition during the period 53,625 -
-------- --------
Balance at the end of the period 90,334 36,709
- Reserve for issue of bonus shares
Balance at the beginning of the period 64,525 51,703
Transfer from Profit and Loss Account - 64,625
Transfer to Share Capital 64,625 51,703
-------- --------
Balance at the end of the period . - 64,625
-------- --------
164,803 165,223
======== ========
4.2 Revenue Reserves
General Reserves
Balance at the beginning of the period 521,000 476,000
Transfer from Profit and Loss Account 90,000 45,000
-------- --------
Balance at the end of the period 611,000 521,000
-------- --------
775,803 686,223
4.3 Unappropriated Profit 4,195 983
-------- --------
779,998 687,206
======== ========
The reserve for contingencies is a specific purpose reserve created to provide for possible losses on
lease receivables which the directors consider, at present, not available for dividend distribution.
The special reserve represents profits set aside as required under the State Bank of Pakistan rules
for Non-Banking Financial Institutions.
5. LONG TERM FINANCE
5.1 Refinance credits from
State Bank of Pakistan
- unsecured 5.1.1
Fourth PLS finance of Rs 150.0 million 8,450 15,146
Fifth PLS finance of Rs 36.310 million - 2,750
Sixth PLS finance of Rs 113.690 million 12,981 23,786
Seventh PLS finance of Rs 68.666 million 5,435 17,714
-------- --------
26,866 59,396
Less: Current maturities 26,866 24,014
-------- --------
- 35,382
======== ========
(Rupees in 000's)
Jun 30, Dec 31
Note 1996 1994
5.2 Loans from Asian Development Bank
- secured 5.2.1
First loan of Rs 99.046 million - 8,259
Second loan of Rs 322.379 million 67,658 157,472
Third loan of Rs 109.352 million 36,392 63,752
Fourth loan of Rs 251.516 million 146,717 209,597
-------- --------
250,767 439,080
Less: Current maturities 127,790 126,840
-------- --------
122,977 312,240
======== ========
5.3 Demand Finance from Muslim Commercial
Bank Limited - secured 5.3.1
Credit line of Rs 100 million 30,000 60,000
Credit line of Rs 50 million 20,000 35,000
-------- --------
50,000 95,000
Less: Current maturities 30,000 30,000
-------- --------
20,000 65,000
======== ========
5.4 Loan from International Finance
Corporation - secured 5.4.1 438,968 382,243
Less: Current maturities 71,295 -
-------- --------
367,673 382,243
======== ========
5.5 Loan from First International Investment
Bank Limited-secured 5.5.1 113,000 -
5.6 Loan from Allied Bank Limited
- secured 5.6.1 100,000 -
5.7 Loan from Askari Commercial Bank Ltd.
- Unsecured 5.7.1 14,500 -
-------- --------
738,150 794,865
======== ========
5.1.1 Refinance Credits from State Bank of Pakistan
The refinance credits are allocated for the financing of domestic sales of locally manufactured
machinery. The credits are repayable in seventeen equal half-yearly instalments commencing
four years after the date of first withdrawal. However, the excess of the outstanding finance
from the State Bank of Pakistan under the credit lines over the outstanding finance extended
by the Corporation under the related credit lines must be repaid immediately.
Under the terms of the agreements, the State Bank of Pakistan will share in the over-all profit
(before tax) of the Corporation, subject to a maximum of 1% in respect of the fourth line and 4%
in respect of the sixth and seventh lines of the amount of refinance availed.
5.2.1 Loans from Asian Development Bank (ADB)
Second loan - US$ 15 million equivalent to Pak Rupees 322,379,875
This represents full utilization of funds out of a US$ 15 million credit for financing the foreign
exchange component of various projects. The loan carries interest at the ADB rate, as determined
by ADB for each interest period plus 1% on the principal amount of loan withdrawn from the
loan account and outstanding from time to time which shall be determined by ADB in accordance
with the exchange risk pooling system. Since loans are covered under the exchange risk scheme
of the Government of Pakistan, the return on these funds is payable at 11% per annum inclusive
of exchange risk fee. The loan is secured by hypothecation of specific leased assets and related
receivables. The loan is repayable in twelve semi-annual instalments which commenced from
July 15, 1991.
Third loan - US$ 5 million equivalent to Pak Rupees 109,352,000
The loan carries interest at 1% per annum above LIBOR. The loan is covered under the exchange
risk scheme of the Government of Pakistan at an exchange risk rate of not less than the difference
between 11% and the interest rate payable to ADB subject to a minimum of 3% per annum.
The loan is secured by hypothecation of specific leased assets and related receivables. The loan
is repayable in twelve semi-annual instalments which commenced from July 15, 1992.
Fourth loan- US$ 10 million equivalent to Pak Rupees 251,516,273
The return on these funds is payable at 9.4% per annum directly to ADB. In addition, an exchange
risk fee at 6.07% per annum based on the Pak Rupee equivalent of the amount withdrawn and
outstanding is payable to the Government of Pakistan.
The loan is secured by hypothecation of specific leased assets and related receivables. The loan
is repayable in twelve semi-annual instalments which commenced from January 15, 1994.
5.3.1 Demand Finance from Muslim Commercial Bank Limited - Rs 150 million
These are automatically annually renewable facilities with five year validity periods unless
earlier terminated by notice by the bank. These are secured by hypothecation of specific leased
assets and related receivables.
In the case of Rs 100 million line (granted November, 1992) the rate of mark-up is Rs 0.43 per
Rs 1,000 per day with repayments in twenty quarterly instalments which commenced from
February 28, 1993 and in the case of Rs 50 million line (granted in April, 1993) the rate of
mark-up is Rs 0.49 per Rs 1,000 per day with repayment in ten half-yearly installments which
commenced from October 1, 1993.
5.4.1 Loans from International Finance Corporation (IFC)
Loan 'A' US$ 12.5 million equivalent to Pak Rupees 382,242,500
This represents borrowing for the structuring of lease financing, mainly for industrial plant
and equipment. The return on these funds is payable at 8.5% per annum directly to IFC. In
addition, an exchange risk fee at 6.66% per annum based on the Rupee equivalent of the amount
withdrawn and outstanding is payable to the Government of Pakistan.
The loan is secured by hypothecation of specific leased assets and related receivables. The loan
is repayable in sixteen semi-annual equal instalments which commenced from June 15, 1996.
Loan 'B' US$ 3.3 million equivalent to Pak Rupees 113,175,000
This represents second tranche of IFC loan for financing leases, mainly plant and equipment.
The return on these funds is payable at 2.75% above LIBOR.
The loan is repayable in four equal half-yearly instalments commencing from June 15, 1997.
The loan is secured by hypothecation of specific leased assets and related receivables.
5.5.1 Loan from First International Investment Bank Limited
This represents loan from First International Investment Bank Limited against the security
of long term U.S. dollar deposits. The loan is repayable in four equal instalments. The first
instalment is repayable on August 15, 1997 and the remaining instalments are repayable on
half yearly basis which is linked to the maturity of the long term deposits. The return is payable
at 13.19% on quarterly basis.
5.6.1 Loan from Allied Bank Limited
This represents a Rs 200 million facility from Allied Bank of Pakistan secured against
hypothecation of specific leased assets and related receivables. The loan is repayable after a
period of eighteen months on December 2, 1997 and is renewable every six months from the
date of drawdown. The return at 18% per annum is payable on each rollover.
5.7.1 Loan from Askari Bank Limited
This represents a Rs 14.5 million facility from Askari Commercial Bank Ltd. The loan is
repayable on May 2, 1999 and the return payable is 17.75% per annum.
6. CERTIFICATES OF INVESTMENT
A financial instrument has been developed by the Corporation to mobilize savings, with the
permission of the Government of Pakistan. It is based on the profit loss sharing principle.
Returns are presently being paid at predetermined rates negotiated with customers. Terms range
from three months to five years, except where specifically held as security against leases.
The Corporation has introduced a scheme of foreign currency Certificates of Investment, duly
authorised by the State Bank of Pakistan. Terms range from three months to eighteen months,
profits are 5.3125% to 7.250%. Foreign currency is exchanged for Pak Rupees from the State
Bank of Pakistan, which provides the foreign exchange risk cover.
Maturities falling within the next twelve months are included under current liabilities.
7. DEPOSITS ON LEASE CONTRACTS
These represent security deposits against lease contracts repayable on the expiry of the lease.
8. SHORT TERM FINANCE
(Rupees in 000's)
Jun 30 Dec 31
Note 1996 1994
Morabaha Finance-secured 8.1 30,000 -
Term Finance - unsecured
Banks 65,500 -
Financial Institutions 151,600 250,000
-------- --------
217,100 250,000
Running Finance - secured 8.2 231,265 -
-------- --------
478,365 250,000
======== ========
8.1 This represents morabaha facility from a scheduled bank and is secured by hypothecation
  of specific leased assets and related receivables.
8.2 These represent facilities from scheduled banks amounting to Rs 397 million
  (1994: Rs Nil) and carry mark-up ranging from 44 to 48 paisas per rupees thousand per
  day on a daily product basis. These arrangements are secured by hypothecation of leased
  assets and related receivables.
(Rupees in 000's)
Jun 30 Dec 31
Note 1996 1994
9. ACCRUED EXPENSES AND OTHER LIABILITIES
These comprise:
Financial charges on long term finance - secured 90,783 61,114
- unsecured 756 -
Financial charges on short term finance - secured 4,571 -
- unsecured 4,289 9,400
Return on certificates of investment 65,559 44,784
Advance from lessees 9,233 7,893
Due to lessees 36,279 14,255
Advance against Certificates of Investment 10,259 2,075
Accrued liabilities 14,252 7,755
Other liabilities [includes unclaimed
dividends Rs 320,903 (1994: Rs 293,833)] 9,963 8,930
Deposit margins and advances against letters of credit 18,771 11,306
-------- --------
264,715 167,512
======== ========
10. TAXATION
The Corporation's income-tax assessments for and up to the assessment year 1994-95 (accounting year 1993)
have been completed in which certain claims (in respect of depreciation) for deduction against income for tax
purposes have been disallowed by the income-tax authorities. The Corporation has filed appeals at appropriate
appellate forums against these disallowances and are of the opinion that these appeals will be successful.
Deferred taxation arising out of timing differences between book and income-tax revenue or charges
is estimated at Rs 282 million (1994: Rs 260 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.
11. COMMITMENTS AND CONTINGENCIES
11.1 Commitments
Letters of credit 11.2 7,920,323 397,759
Government Securities repurchase commitments 503,000 137,635
Underwriting commitments - 199,910
======== ========
11.2 Subsequent to the balance sheet, letters of credit have been reduced to Rs 4,811,686,424.
The terms and conditions for opening of the letters of credit amounting to Rs 4,550,144,488
require cash collateral for the amount prior to any shipment and negotiation by the
beneficiaries of such letters of credit through the advising banks.
11.3 Contingencies
Guarantees issued 14,350 14,350
======== ========
11.4 Forward exchange purchase and sale contracts amounting to Rs 69,500,844
(1994: Rs 292,381,570) have been entered into.
12. FIXED ASSETS - TANGIBLE
Items
Cost at the Cost at the Accumulated
beginning  Additions/  end of depreciation Book value Depreciation Rate
of the  (disposals) the period at end of at end of for the per
period the period the period period annum
Note Rupees in 000's %
Land and buildings 12.10 45,324 (5,370) 39,954 3,805 36,149 1,678 10
Equipment 11,337 5,733 16,821 9,705 7,116 2,628 20
(249)
Furniture and fixtures 4,345 1,159 5,492 2,885 2,607 670 10
(12)
Vehicles 13,197 11,038 21,414 11,056 10,358 5,966 25
(2,821)
Leasehold improvements 2,090 108 2,198 2,121 77 30 33
-------- -------- -------- -------- -------- -------- --------
June 30, 1996 76,293     18,038 85,879 29,572 56,307 10,972
(8,452)
======== ======== ======== ======== ======== ========
December 31, 1994 37,600 38,693 76,293 23,015 53,278 6,100
12.1 The land and building includes (at cost) an amount of Rs. 31.3 million for which mutation has
not yet been arranged. Efforts are in progress to obtain mutation in favour of the Corporation.
12.2 Disposal of tangible fixed assets.
Written
Original Accumulated  down  Sale Profit/
Description cost depreciation  value proceeds (loss) Mode of disposal
Rupees in 000's
Land and building 5,370 2,507 2,863 7,050 4,187 Sold to National Investment Trust, Karachi.
Equipment 28 - 28 27 (1) Amount refunded and equipment
returned back to Pakistan Mobile
Communications (Pvt) Limited, Lahore.
Equipment 73 11 62 65 3 Trade-in with Gestetner, Karachi.
Equipment 33 4 29 33 4 Insurance claim received from Adamjee
Insurance Company Limited, Karachi.
Furniture & fixtures 77 22 55 51 (4) Sold to Mr. Tariq Ahsan, Employee, on
final settlement, under the employees'
service regulation.
Furniture & fixtures 50 17 33 35 2 Sold to Mr. Abdul Qadir, Employee, on
final settlement, under the employees'
service regulation.
Sunny Nissan 356 356 - - - Sold to Mr. Tahir Rizwan, Employee,
under the employees' service regulation.
Suzuki Alto 139 123 16 89 73 Sold to Mr. Masood Mirza M/s. Jamil
Motors, PECHS, Karachi.
Suzuki Mehran 113 113 - 55 55 Sold to Mr. Shehzad Afzal, Employee,
under the employees' service regulation.
Nissan Sunny 467 360 107 300 193 Sold to M/s. Alibhai Motors, PECHS, Karachi.
.......Carried forward
....... brought forward 
Toyota Corolla 736 261 475 700 225 Insurance claim through Adamjee
Insurance Company Limited, Karachi.
Suzuki Mehran 265 22 243 266 23 Insurance claim through Adamjee
Insurance Company Limited, Karachi.
Toyota Corolla 680 595 85 365 280 Sold to Dr. S. Farukh Hasnain, Old
Anarkali, Lahore through competitive
bidding.
Car Airconditioner 16 15 1 4 3 Trade-in with Shahzad Airconditioning,
PECHS, Karachi.
Honda CD-70 49 9 40 50 10 Insurance claim through Adamjee
Insurance Company Limited, Karachi.
-------- -------- -------- -------- --------
Jun 1996 8,452 4,415 4,037 9,090 5,053
======== ======== ======== ======== ========
Dec 1994 5,756 2,724 3,032 3,864 832
======== ======== ======== ======== ========
13. LONG TERM ADVANCES - CONSIDERED GOOD
(Rupees in 000's)
Jun 30 Dec 31
1996 1994
Advances to employees
Chief Executive 4,239 5,000
Executives 8,180 2,739
Other employees 1,664 1,872
-------- --------
14,083 9,611
Less: Instalments recoverable within one year 1,845 835
-------- --------
12,238 8,776
======== ========
Outstanding for over three years 4,906 7,919
Others 9,177 1,692
-------- --------
14,083 9,611
======== ========
Maximum aggregate amount outstanding during
the period in respect of chief executive and executives 13,569 7,745
======== ========
Advances to executives represent house, personal, transport and computer loans granted in
accordance with the Employees' Service Regulations.
Advance to chief executive represents house loan in accordance with terms of agreement. The approval
of Regulatory Agency requires recovery to be made within 10 years from the date of disbursement.
(Rupees in 000's)
Jun 30 Dec 31
Note 1996 1994
14. LONG TERM DEPOSITS
Foreign currency deposits 5.5.1 115,714 -
======== ========
15. LONG TERM INVESTMENTS
Listed companies/modarabas -at average cost
[aggregate market value Rs 33,583,735
(1994: Rs 84,860,843)] 26.1 & 26.2 39,667 67,447
Unlisted companies 26.30 10,000 38,661
-------- --------
26.50 49,667 106,108
======== ========
16. NET INVESTMENT IN LEASE FINANCE
Minimum lease payments receivable 4,862,231 3,391,807
Add: Residual value of leased assets 575,268 342,267
-------- --------
5,437,499 3,734,074
Less: Unearned income 1,402,241 961,604
Net investment in lease finance 4,035,258 2,772,470
Less: Current portion of net investment 16.1 1,130,535 887,148
-------- --------
Long term portion of net investment 2,904,723 1,885,322
======== ========
16.1 Current portion of net investment 16.20 1,130,535 887,148
Provision for doubtful receivables (64,260) (33,228)
-------- --------
1,066,275 853,920
======== ========
16.2 Minimum lease payments receivables over the twelve months amount to Rs 1,532,953,139
  (1994: Rs 1,078,739,254).
The net investment in lease finance includes Rs 16,211,859 (1994: Rs 30,286,390) in respect
of associated companies. Maximum outstanding during the period was Rs 24,975,972
(1994: Rs 15,977,796).
17. DEFERRED COSTS
Front end fees 9,161 3,843
Less: Amortised during the period 3,041 993
-------- --------
6,120 2,850
======== ========
18. SHORT TERM FINANCE -
CONSIDERED GOOD
Finance under mark-up agreements
net of provision of Rs 2,125,888 (1994: Rs 7,536) 3,251 23,176
Finance under buy-back agreements
net of provision of Rs 5,673,431 (1994: Rs 4,320,154) 19,833 104,433
Against foreign currency COIs 110,280 50,373
Bridge finance 28,500 28,500
Advance against letters of credit 71,036 16,401
Advance against leases 54,427 3,456
Others 6,286 5,568
-------- --------
293,613 231,907
======== ========
19. SHORT TERM INVESTMENTS
Government Securities 19.1 246,550 183,798
-------- --------
Shares in listed companies
- Purchase under resale obligations 19.2 54,873 107,034
- Trading portfolio
(market value Rs 52,446,798) 26.4 109,513 -
Less: Provision for decline in market value 59,391 -
Adjustment during the period 2,325 -
-------- --------
57,066 -
-------- --------
52,447 -
-------- --------
353,870 290,832
======= =======
19.l Government Securities
Treasury Bills - at cost
Investment
[aggregate face value Rs Nil
(1994: Rs 60,000,000)] - 58,244
Sale under repurchase commitment
[aggregate face value Rs Nil - (9,446)
(1994: Rs 10,000,000)] -------- --------
- 48,798
======= =======
Federal Investment Bonds - at cost
[aggregate face value Rs 650,000,000
(1994: Rs 260,000,000)] 649,535 259,535
Sale under repurchase commitment
[aggregate face value Rs 503,000,000
(1994: Rs 125,000,000)] (503,000) (124,535)
-------- --------
146,535 135,000
-------- --------
NIT Units 100,015 -
======= =======
246,550 183,798
======= =======
The management of the Corporation does not intend to hold the portfolio until maturities.
19.2 Purchase under resale obligation
Muslim Commercial Bank Limited
465,000 ordinary shares of Rs 10 each 34,875 34,875
Cherat Cement Limited
90,000 ordinary shares of Rs 10 each - 10,000
Pakland Cement Limited
149,800 ordinary shares of Rs 10 each 19,998 19,998
Fidelity Investment Bank Limited
1,022,077 ordinary shares of Rs 10 each - 42,161
-------- --------
54,873 107,034
======= =======
The aggregate resale value is Rs 58,598,000 (1994: Rs 115,493,059) and aggregate market
value is Rs 19,601,800 (1994: Rs 93,041,119). The Corporation is holding additional
shares as collateral to cover the decline in market value.
20. ADVANCES, DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES
Current portion of advances to chief executive 703 -
Current potion of advances to other employees 1,142 835
Deposits, prepayments
and other receivables 20.1 227,309 101,063
-------- --------
229,154 101,898
======= =======
20.1 Other receivables are net of provision for doubtful receivables which amount to
Rs 2,932,500 (1994: Rs 2,932,500).
21. CASH AND BANK BALANCES
Cash in hand 51 -
Cheques in hand 6,650 290
Current accounts - with banks 63,055 17,432
Time deposit accounts
Financial institutions 26,726 28,579
Scheduled banks 39,825 52,926
-------- --------
66,551 81,505
-------- --------
136,307 99,227
======= =======
22. INCOME FROM INVESTMENTS/FINANCE
Income from Government Securities 64,159 29,746
Income from other investments 22.1 38,554 19,785
Income from long term finance 2,955 3,731
Income from short term finance 146,519 51,642
-------- --------
252,187 104,904
======= =======
22.1 Income from other investments
Dividend income 1,118 432
Return on Redeemable Capital Certificate/TFC 4,013 -
Profit on sale of investments 33,423 19,353
-------- --------
38,554 19,785
======= =======
23. OTHER INCOME
Fees, commission and exchange gain 23.1 40,668 23,494
Income from bank deposits 5,528 7,666
Profit on disposal of fixed assets 5,053 832
Other 4,795 4,826
-------- --------
56,044 36,818
======= =======
23.1 Fees, commission and exchange gain - Fees 21,645 15,427
- Commission 13,234 3,838
- Exchange gain 5,789 4,229
-------- --------
40,668 23,494
======= =======
24. FINANCIAL CHARGES ON BORROWINGS
Long term finance - secured 214,211 113,370
- unsecured 1,856 1,096
Short term finance - secured 16,133 -
- unsecured 35,808 44,452
Bank Charges 1,466 -
Commissions and brokerage 2,585 -
Others 2,615 839
-------- --------
274,674 159,757
======= =======
25. ADMINISTRATIVE AND OPERATING EXPENSES
Directors' fees 25.1 2 3
Salaries and benefits 52,114 19,858
Staff welfare and training 1,522 321
Rent 5,310 2,949
Insurance 5,773 2,749
Utilities 5,323 3,090
Stationery and supplies 2,881 1,719
Vehicle running expenses 3,127 1,457
Travel 2,258 1,102
Legal and professional charges 25.3 4,918 1,836
Depreciation 10,972 6,100
Amortisation of deferred costs 3,041 993
Donations/Scholarships 25.4 639 343
Advertisement 9,538 3,679
Repairs and maintenance 2,961 1,139
Others expenses 2,707 1,153
-------- --------
113,086 48,491
======= =======
25.1 Directors' fee
Two directors (1994:2) were paid fees for attending board meetings of the Corporation.
25.2 Remuneration of Chief Executive and other executives
Rupees in 000's Rupees in 000's
Chief Executive Executives
Jun Dec Jun Dec
1996 1994 1996 1994
Managerial remuneration 2,042 1,174 13,112 3,499
Housing and utilities 963 589 8,522 1,601
Medical expenses 187 79 1,200 196
Provident fund, gratuity
and insurance 391 302 2,367 557
-------- -------- -------- --------
3,583 2,144 25,201 5,853
-------- -------- -------- --------
Number of persons 1 1 45 19
======= ======= ======= =======
The chief executive and executives are also entitled to free use of Corporation maintained cars.
(Rupees in 000's)
Jun 30 Dec 31
Note 1996 1994
25.3 Auditors' remuneration
    Legal and professional charges include:
Annual audit fee 150 125
Audit fee- June 30, 1995 100 -
NBFI audit 50 -
Other certifications 40 -
Out-of-pocket expenses 108 50
-------- --------
448 175
======== ========
25.4 Donations
The directors of the Corporation or their spouses had no interest in the donees to whom donations
were given.
26. INVESTMENT IN LISTED/UNLISTED COMPANIES/MODARABAS
No. of Share Investment in Listed Companies/ Short term Long term
Certificates/Vouchers Modarabas investment investment
held Rs in 000's
Jun 1996   Dec 1994 Jun 1996     Dec 1994 Jun 1996     Dec 1994
43,773 43,773 First Habib Bank Modaraba 590 - - 317
5 5 Mohib Textile Mills Ltd. - - - -
10,450 9,500 Sakrand Sugar Mills Ltd. 124 - - 88
178,400 293,400 Yousaf Weaving Mills Ltd. 3,098 - - 1,320
65,746 165,746 First Mehran Modaraba 1,043 - - 1450
300 159,800 Chashma Sugar Mills Ltd. 5 - - 1,238
6,880 5,200 Nishat Chunian Ltd. 107 - - 82
87 1,687 Brother Textile Mills Ltd. 2 - - 12
40,595 40,595 First Prudential Modaraba 442 - - 158
- 16,300 Fauji Fertilizer Ltd. - - - 1,603
3,500 818,350 LTVCM (Face value Rs 5 per share) 27 - - 5,643
21,902 41,902 Gulshan Spinning Mills Ltd.
(Associated Undertaking) 796 - - 1,023
9,697 9,142 Third Prudential Modaraba 78 - - 38
11,150 14,150 Amin Spinning Mills Ltd. 200 - - 46
- 70,400 Schon Spinning Mills Ltd  - - - 211
42,398 87,898 First Fidelity Leasing Modaraba 730 - - 1,199
29,700 44,065 First Crescent Modaraba 566 - - 573
- 26,900 Chenab Fibres Ltd. - - - 390
69,500 69,500 Salman Noman Enterprises Ltd. 847 - - 521
39,000 39,000 Awan Textile Mills Ltd. 390 - - 156
10,320 9,600 Pioneer Cables Ltd. 279 - - 192
39,800 52,800 First UDL Modoraba 647 - - 601
298,664 309,720 Sui Northern Gas Pipelines Ltd. 8,343 - - 10,382
100 3,000 I.C.I. Ltd. 7 - - 650
13,834 7,079 Nishat Mills Ltd. 550 - - 354
- 34,500 Umer Fabrics Ltd. - - - 313
- 15,000 A1-Abbas Sugar Mills Ltd. - - - 116
20,000 20,000 Allied Motors Ltd. 305 - - 305
24,987 - Askari Commercial Bank Ltd. 890 - - -
21,400 21,400 BRR 2nd Modaraba 316 - - 208
3,000 - Capital Assets Leasing Ltd. 32 - - -
8,065 7,350 Crescent Investment Bank Ltd. 517 - - 517
7187 6,250 Crescent Steel Ltd. 717 - - 717
5,000 - Dewan Salman Fibres Ltd. 725 - - -
44,100 31,000 D.G. Khan Cement Ltd. 2,692 - - 1,926
- 50,000 English Leasing Ltd. - - - 1,246
13,000 8,000 Fecto Cement Ltd. 678 - - 391
22,375 15,500 Gadoon Textile Mills Ltd. 1,762 - - 927
- 20,000 Ghazi Fabrics Ltd. - - - 140
200,000 200,000 Glamour Textile Mills Ltd. 5,016 - - 4,700
27,500 27,500 First Grindlays Modaraba 966 - - 770
- 12,500 Idrees Textile Mills Ltd. - - - 94
- 47,000 J.D.W. Sugar Mills Ltd.  - - - 294
16,100 16,100 Pak Synthetic Ltd. 862 - - 862
25,000 25,000 Pioneer Cement Ltd. 1,412 - - 1,412
18,480 12,320 P.I.L. Corp. Ltd. 876 - - 691
14,325 12,600 Searle Pakistan Ltd. 1,305 - - 1,305
5,000 5,000 ICP SEMF 471 - - 471
1,500 10,000 Soneri Bank Ltd. - - - 572
- 31,000 Tri Star Shipping Co. Ltd. - - - 673
333 36,333 Tri Star Polyester Ltd. 6 - - 658
23,168 21,800 Trust Leasing Corporation Ltd. 1,080 - - 1,080
14,400 14,400 First Inter Fund Modaraba 259 - - 252
20,000 20,000 Punjab Modaraba 362 - - 335
50,000 50,000 Uni Cap Modaraba 1,597 - - 388
100 30,500 Trust Modaraba 1 - - 671
30,000 30,000 Ellcot Spinning Mills Ltd. 831 - - 615
- 50,000 Friend Spinning Mills Ltd. - - - 438
8,000 3,000 Gulistan Spinning Mills Ltd.
(Associated Undertaking) 279 - - 127
- 10,000 Nagina Cotton Mills Ltd. - - - 150
57,000 47,500 Ansari Sugar Mills Ltd. 768 - - 629
26,000 - Genertech Pakistan Ltd. 778 - - -
33,000 33,000 Security Investment Bank Ltd. 1,146 - - 1,146
46,000 40,000 Pakistan Industrial Credit &
Investment Corporation Ltd. 3,180 - - 3,180
4,725 4,500 Muslim Commercial Bank Ltd. 434 - - 425
7,900 2,300 A1-Faysal Investment Bank Ltd. 296 - - 163
6,900 6,900 Bankers Equity Ltd. 274 - - 270
18,984 15,000 Union Bank Ltd. 700 - - 700
11,200             - Lucky Cement Ltd. 232 - - -
12,705 10,500 Asian Leasing Corporation Ltd. 434 - - 434
210 810 P.T.C. Vouchers
(Face value Rs 3000 per voucher) 1,014 - - 4,318
            - 40,000 Pak Suzuki Motors Co. Ltd. - - - 2,385
....... carried forward
....... brought forward
94,000 100,000 Kohinoor Raiwand Ltd. 1,092 - - 1,162
27,000 27,000 B.R.R. Capital Modaraba 599 - - 446
1,310 11,000 Karachi Electric Supply Corp Ltd. 4 - - 485
6,750 2,000 Maple Leaf Cement Ltd. 464 - - 120
6,650 6,000 K.A.S.B. & Co. Ltd. 585 - - 585
1,060,287 - K.A.S.B. Premier Fund Ltd. 10,603 - - -
382,600 - Sunflo Citrus Ltd. 4,783 - - -
10,000 - Faysal Bank Ltd. 292 - - -
20,000 - Dhan Fibres Ltd. 262 - - -
15,000 - Nishat Tek Ltd. 588 - - -
10,000 - Tripack Films Ltd. 246 - - -
23,000 - Sui Southern Gas Co Ltd. 795 - - -
5,000 - Adamjee Insurance Co Ltd. 574 - - -
38,183 - General Tyres & Rubber Co Ltd. 1,718 - - -
40,000 - Kohinoor Energy Ltd. 640 - - -
200,000 - Ellahi Electric Ltd. 4,291 - - -
100,000 - D.G. Electric Ltd. 3,100 - - -
192,900 - Pak Apex Leasing Co. Ltd. 1,929 - - -
648,487 - Agriautos Ltd. 4,864 - - -
1,250,000 - Ibrahim Fibres Ltd. 20,000 - - -
-------- -------- -------- -------- -------- -------- -------- -------- --------
26.1 Sub Total 67,447
300,000 - Fauji Fertilizer Corporation
Jordan Fertilizer Corp. - - 5,558 -
1,000,000 - KASB Premier Fund Ltd. (Pre IPO) - - 10,000 -
10,000 - Chakwal Cement Ltd. - GDR
(Face Value Rs 11.275 per share) - - 2,819 -
685,892 - LTVCM.- RCC
(Face Value Rs 5 to Rs 65 per certificate)   - - 16,290 -
50 - Nishat Tek Ltd.-TFC
(Face value Rs 100,000 per Certificate)      - - 5,000 -
-------- -------- -------- -------- -------- -------- -------- --------
26.2 Sub Total 39,667
Investment in Un-Listed Companies/
Modarabas
- 200,000 N.T.D.C. (Face value
Rs 5 per share) (Mr. R.B. Qadri) - - - 658
- 300,000 FFC - J.F.C. (Mr. Imtiaz Waraich) - - - 5,558
- 200,000 Elahi Electric Ltd.
(Mr. Shaukat Ellahi Sheikh) - - - 4,291
- 100,000 D.G. Electric Ltd.
(Mr. Aftab Ahmed Khan) - - - 3,100
- 10,000 Chakwal Cement Ltd. - GDR
(Mr. Khawaja M. Jawaid) - - - 2,819
- 1,250,000 Ibrahim Fibres Ltd.
(Shaikh Mukhtar Ahmed) - - - 20,000
- 11,200 Lucky Cement
(Mr. Abdul Razzak Tabba) - - - 235
1,000,000 200,000 Mac Pac Film Ltd.
(Mr. Maqbool Ellahi) - - 10,000 2,000
-------- -------- -------- -------- -------- -------- -------- -------- --------
26.3 Sub Total - - 10,000 38,661
-------- -------- -------- --------
26.4 Total Short Term Investment 109,513 - - -
======== ======== ======== ========
26.5 Total Long Term Investment - - 49,667 106,108
======== ======== ======== ========
Unless otherwise stated holdings are in Ordinary Shares/Certificates/Vouchers of Rs 10 each.
Investment with a carrying value of Rs 9,477,331 are not held in the name of the Corporation but are
covered by blank transfer deeds.
27. COMPARATIVE FIGURES
Previous year's figures have been rearranged in order to conform to the presentation for the current
period. Figures have been rounded off to the nearest thousand rupees.
Pattern of Shareholding as at June 30, 1996
Category of Number of Shares Percentage
Shareholders Share Holders Held
1. Individuals 1,771 9,543,032 13.276
2. Investment Companies 15 1,131,616 1.574
3. Insurance Companies 4 861,368 1.198
4. Joint Stock Companies 32 23,731,488 33.013
5. Financial Institutions 4 14,392,559 20.022
6. Modarabas 9 216,287 0.301
7. Foreign Investors 42 22,002,514 30.608
8. Co-operative Societies 1 6,035 0.008
-------- -------- --------
Totals 1,878 71,884,899 100.000
Number of Shareholdings Total
Share Holders Shares Held
236 1 - 100 12,503
546 101 - 500 138,975
293 501 - 1000 210,395
544 1001 - 5000 1,155,053
85 5001 - 10000 566,354
31 10001 - 15000 375,832
19 15001 - 20000 333,794
12 20001 - 25000 272,409
8 25001 - 30000 224,260
3 30001 - 35000 96,646
2 35001 - 40000 73,916
3 40001 - 45000 128,596
4 45001 - 50000 192,475
1 50001 - 55000 53,040
2 55001 - 60000 114,831
2 60001 - 65000 123,860
3 65001 - 70000 201,386
1 70001 - 75000 71,250
4 75001 - 80000 306,369
3 80001 - 85000 248,935
2 90001 - 95000 188,750
2 100001 - 105000 205,345
2 105001 - 110000 218,121
6 120001 - 125000 737,187
1 125001 - 130000 129,352
2 130001 - 135000 269,596
1 135001 - 140000 137,500
1 145001 - 150000 148,400
1 160001 - 165000 163,375
2 165001 - 170000 338,562
1 180001 - 185000 180,103
2 190001 - 195000 385,008
2 200001 - 205000 404,500
1 205001 - 210000 209,955
2 215001 220000 435,656
2 220001 - 225000 446,771
1 225001 - 230000 225,450
1 230001 - 235000 231,311
2 260001 - 265000 525,221
1 270001 - 275000 273,375
1 285001 - 290000 289,025
1 290001 - 295000 294,800
3 300001 - 305000 910,925
1 305001 - 310000 305,836
1 310001 - 315000 313,666
1 315001 - 320000 319371
1 3300(11 - 335000 331562
2 345001 - 350000 698437
1 370001 - 375000 372641
1 380001 - 385000 381 865
1 395001 - 400000 398 020
1 410001 - 415000 410 826
1 420001 - 425000 421 763
2 435001 - 440000 876 182
1 465001 - 470000 469 300
1 475001 - 480000 479 526
1 480001 - 485000 484 920
1 505001 - 510000 505 091
1 520001 - 525000 522 802
1 550001 - 555000 553 242
1 710001 - 715000 711 253
1 760001 - 765000 762 375
1 915001 - 920000 918 853
1 945001 - 950000 948 139
1 1195001 - 1200000 1,197,698
1 1565001 - 1570000 1,567,622
1 1670001 - 1675000 1,672,045
1 2085001 - 2090000 2,089,899
1 2495001 - 2500000 2,495,068
1 2535001 - 2540000 2,535,994
1 2565001 - 2570000 2,569,631
1 2830001 - 2835000 2,830,859
1 2925001 - 2930000 2,927,787
1 4770001 - 4775000 4,773,317
1 5345001 - 5350000 5,345,516
1 6800001 - 6805000 6,803,663
1 11640001 - 11645000 11,640,963
-------- -------- --------
1,878 Totals 71,884,899
Company Information
MANAGEMENT
Tayyeb Afzal Managing Director & CEO
S.M. Najmal Husain Naqvi Senior Executive Vice President
Mohammad Ameen Senior Executive Vice President
Fiyaz Ahmed Longi Senior Executive Vice President
Sohail Nawaz Executive Vice President
Abdul Ghafoor Ateeq Senior Vice President
M. Akram Sheikh Senior Vice President
M. Jamiluddin Senior Vice President
Nasim Akbar Senior Vice President
Amna Shoro First Vice President
Tahir Rizwan First Vice President
Tahir Raza Sheikh First Vice President
Khalid Basharat First Vice President
Fuad Rasul Vice President
Akhtar Ali Khan Vice President
Anser H. Basrai Vice President
Shahzad Afzal Vice President
Wahid Ahmed Vice President
Fakhr-e-Alam Fazli Vice President
Shahab Qureshi Vice President
Waheed-ur-Rehman Vice President
Salim-ul-Haque Vice President
Ford, Rhodes, Robson, Morrow AUDITORS
Chartered Accountants
Orr. Dignam & Company, Advocates LEGAL ADVISORS
Liaquat Merchant & Company, Advocates
M. Yousuf Adil & Co. CONSULTANTS
Chartered Accountants
NIC Building, 10th Floor HEAD OFFICE AND
Abbasi Shaheed Road REGISTERED OFFICE
Tel: 5660671-78 Fax: 5680454 KARACHI
E-mail: ndlckar@biruni.erum.com.pk
7/4, E-3, Main Boulevard, LAHORE OFFICE
Gulberg 3.
Tel: 5754111, 5754122 Fax: 5754166
E-mail: leasepk@ndlclhr. lhr. erum.com.pk
Contact: Mr. Tahir Rizwan
Unit No. 3, Cantonment Commercial LAHORE CANTT BRANCH
Complex, Abid Majeed Road, Lahore Cantt.
Tel: 6652317-8 Fax: 6652310
Contact: Mr. Shahzad Afzal
The Mall Regency Shopping Arcade, FAISALABAD OFFICE
Ground Floor.
Tel: 617946-67
Fax: 612890 Tlx: 43255 Lease Pk
E-mail: leasepk@ndlcfsb.erum.com.pk
Contact: Mr. Salim-ul-Haque
State Life Building, Ground Floor ISLAMABAD OFFICE
Jinnah Avenue,
Blue Area.
Tel: 819596- 818410 Fax: 818432
E-mail: leasepk@ndlcisl.isb.erum.com.pk.
Contact: Mr. Fuad Rasul
Allied Bank of Pakistan Limited BANKERS TO THE CORPORATION
American Express Bank Limited
ANZ Grindlays Bank plc
Askari Commercial Bank Ltd.
Banque Indosuez
Bank of America
Bank of Punjab Ltd.
Citibank, N.A.
Duetsche Bank AG
Faysal Bank Limited
Habib Bank Limited
Metropolitan Bank Limited
Muslim Commercial Bank Limited
National Bank of Pakistan
National Development Finance Corporation
Platinum Commercial Bank Ltd.
Prime Commercial Bank Limited
Schon Bank Limited
Soneri Bank Limited
Standard Chartered Bank
Societe General - The French & International Bank
Bank of China CORRESPONDENT BANKS
Chase Manhattan Bank
Deutsche Bank AG
Union Bank of Switzerland
Notice of Annual General Meeting
Notice is hereby given that the Twelfth Annual General Meeting of National Development Leasing
Corporation Limited will be held at Holiday Inn Crowne Plaza, Main Shahra-e-Faisal, Karachi on
Thursday, December 5, 1996 at 15:00 hours to transact the following business:
1. To confirm the Minutes of the Eleventh Annual General Meeting held on June 15, 1995.
2. To receive and adopt the Audited Accounts of the Corporation for the eighteen months ended
June 30, 1996 together with Directors and Auditors Reports thereon.
3. To approve 30% cash dividend, as recommended by the Directors.
4. To appoint Auditors and fix their remuneration. The present auditors Ford, Rhodes, Robson,
Morrow, Chartered Accountants, retire and being eligible, offer themselves for re-appointment.
5. To transact any other business with the permission of the Chair.
By Order of the Board
A.G. Ateeq
Karachi, October 15, 1996. Company Secretary
Notes:
a. The Share Transfer Books of the Corporation will remain closed from November 24, 1996 to
December 8, 1996 (both days inclusive). Transfers received in order at the Registered Office of
the Corporation by November 21, 1996 will be treated in time for the purpose of entitlement of
dividend in respect of the eighteen months ended June 30, 1996.
b. 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. Proxies, in order to be effective, must be received at
the Registered Office of the Corporation duly stamped, signed and witnessed not later than 48
hours before the meeting.
c. Members are requested to notify any changes in their addresses immediately.
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