| ASKARI LEASING LIMITED |
|
|
|
|
|
|
|
|
| ANNUAL
REPORT 1997 |
|
|
| CONTENTS |
|
| Corporate
Information |
|
| Notice
of Meeting |
|
| Directors'
Report |
|
| Auditors'
Report |
|
| Balance Sheet |
|
|
| Profit
and Loss Account |
|
| Statement
of Changes |
|
| in
Financial Position |
|
| Notes
to the Accounts |
|
| Pattern
of Shareholding |
|
| Financial
Highlights |
|
|
|
|
|
| CORPORATE
INFORMATION |
|
| BOARD
OF DIRECTORS |
|
| Lt.
Gen. (R) Farrakh Khan |
|
Chairman |
|
| Brig.
(R) Khalid Latif |
|
Director |
|
| Brig.
(R) Sajjad Ahmed Nazim |
|
Director |
|
| Brig.
(R) Zafar Ahmed |
|
Director |
|
| Brig.
(R) Khalid Raza |
|
Director |
|
| Dr.
Safdar All Butt |
|
Director |
|
| Mr.
Shujat All Khan |
|
Director |
|
| Mr.
Shahid Ghaffar |
|
Director (NIT Nominee) |
|
|
| CHIEF
EXECUTIVE |
|
| Mr.
Taimur Afzal |
|
|
| COMPANY
SECRETARY |
|
| Mr.
Zafar Alam Khan Sumbal |
|
|
| BANKERS |
|
| Askari
Commercial Bank Ltd. |
|
| American
Express Bank |
|
| ABN-AMRO Bank |
|
| ANZ
Grindlays Bank |
|
| Bank
of America NT & SA |
|
| The
Bank of Punjab |
|
| Credit
Agricole Indosuez |
|
| Citi
Bank N.A. |
|
| Deutsche Bank |
|
| Emirates
Bank International |
|
| Faysal
Bank Ltd |
|
| Habib
American Bank |
|
| The
Hong Kong and Shanghai Banking Corporation Ltd |
|
| Prime
Commercial Bank |
|
| Standard
Chartered Bank |
|
|
| AUDITORS |
|
| Taseer
Hadi Khalid & Co. |
|
| Chartered
Accountants |
|
|
| LEGAL ADVISOR |
|
| Walker
Martineau Saleem |
|
| Mr.
M. Hanif Bhatti |
|
|
| REGISTRAR
AND SHARE |
|
| Askari
Associates (Pvt.) Ltd. |
|
|
| TRANSFER
OFFICE |
|
| 6th
Floor, AWT Plaza, The Mall, P.O. Box 678. Rawalpindi. |
|
| Telephone:
(051) 514370-71, 516108, 562848 |
|
| Fax:
(051) 516109 |
|
|
| REGISTERED |
|
| OFFICE/HEAD
OFFICE |
|
| 5th
Floor, AWT Plaza, |
|
| The
Mall, Rawalpindi. |
|
| Telephone:
(051) 511309-11, 566216, 566153, 515267 |
|
| LIAN
111-111-345 |
|
| Fax:
(051) 565670 |
|
|
|
| NOTICE
OF THE FIFTH ANNUAL GENERAL MEETING |
|
| Notice
is hereby given that the Fifth Annual General Meeting of Askari Leasing
Limited will be held on October 18. 1997 at |
|
| 0900
hours in Blue Lagoon Complex, opposite Pearl Continental Hotel outward gate,
Rawalpindi to transact the following |
|
| business:- |
|
|
| ORDINARY
BUSINESS |
|
| 1.
To confirm the minutes of the Fourth Annual General Meeting held on 26
November 1996. |
|
| 2.
To receive, consider and adopt the Audited Accounts together with Directors'
and Auditors' Reports thereon for the |
|
| year
ended 30 June 1997. |
|
| 3.
To appoint Auditors of the company for the year ending 30 June 1998 and to
fix their remuneration. |
|
|
| SPECIAL
BUSINESS |
|
| 4.
To confirm the minutes of the Extra-Ordinary General Meeting held on 22 April
1997. |
|
| 5.
To consider and approve the issue of Bonus Shares in the proportion of 20
shares for every 100 shares held i.e. |
|
| 20%. |
|
| 6.
Any other business with the permission of the Chair. |
|
|
| NOTES: |
|
|
| 1.
The Share Transfer Books of the Company will be closed from 12 October 1997
to 18 October 1997 (both days |
|
| inclusive). |
|
|
| 2.
A Member entitled to attend and vote at the meeting is entitled to appoint a
Proxy to attend the meeting and vote |
|
| for
him/her, Proxies in order to be effective must be received by the company at
its Registered Office not less than |
|
| 48
hours before the meeting. |
|
|
| 3.
Shareholders are' requested to notify the change of address, if any, to our
Registrar M/s Askari Associates |
|
| (Private)
Limited, 6th Floor, AWT Plaza, The Mall, P.O. Box 678, Rawalpindi,
immediately.. |
|
|
| STATEMENT
IN REGARD TO SPECIAL BUSINESS AS REQUIRED UNDER SECTION 160 OF THE COMPANIES |
|
| ORDINANCE,
1984. |
|
|
| Issuance
of Bonus Shares |
|
| To
approve capitalization of a sum of Rs. 40 million out of profits for the year
for the issuance of bonus shares |
|
| in
the proportion of 20 shares for every 100 shares held i.e. 20% and to
consider and approve the following resolution by way |
|
| of
Special Resolution:- |
|
|
| Resolved
that: |
|
|
| a)
"A sum of Rs. 40 million out of profits for the year be capitalized and
applied to the issue of 4,000,000 |
|
| ordinary
shares of Rs. 10 each and allotted as fully paid-up Bonus Shares to the
members of the |
|
| Company
whose names appear on the Register of Members as at close of business on
October 12, 1997 |
|
| in
the proportion of 20 shares for every 100 Ordinary Shares held. |
|
|
| b)
The Bonus Shares shall rank pari passu in all respects with the existing
shares. |
|
|
| c)
The members entitled to a fraction of a share shall be given sale proceeds of
their fractional entitlement. |
|
| for
which purpose the fractions shall be consolidated into whole shares and sold
in the stock market. |
|
|
| d)
The Directors be and are hereby authorized and empowered to give effect to
this resolution and to do or |
|
| cause
to be done all acts. deeds and things that may be necessary or required for
issuance, allotment |
|
| and
distribution of Bonus Shares. |
|
|
| ADDENDUM |
|
| In
order to facilitate the shareholders, Askari Leasing Limited ordinary shares
will be an eligible security for the purposes of the |
|
| Central
Depository System w.e.f. 08th October 1997. Considering the same and with the
consent of Stock Exchanges, the Board |
|
| of
Directors has decided to change the date of Book closure an(~ the date of its
Fifth Annual General Meeting. The previous and |
|
| new
dates are as under: |
|
|
|
Previous Date |
|
New Date |
|
| Book Closure |
|
12-18 October 1997 |
22-29 November 1997 |
|
|
(both days inclusive) |
(both days inclusive) |
|
| Fifth AGM |
|
18 October 1997 |
29 November 1997 |
|
|
| The
agenda, time, day and venue of the meeting will remain unchanged. |
|
|
|
| DIRECTORS'
REPORT |
|
| The
Board of Directors of your company feels pleasure n presenting the Fifth
Annual Report for the year ended June 30, |
|
| 1997. |
|
|
| FINANCIAL
RESULTS |
|
|
|
(Rs. in '000) |
|
|
| Total Revenue |
|
|
630,976 |
|
|
|
|
| Total
Expenditure |
|
495,901 |
|
| Profit
for the Year |
|
135,075 |
|
| Tax provision |
|
(15,000) |
|
| Profit
after tax |
|
120,075 |
|
| Un-appropriated
profit brought forward |
1,793 |
|
| Profit
available for appropriation |
121,868 |
|
|
| Appropriations |
|
|
| Transfer
to statutory reserve |
|
24,015 |
|
| Proposed
bonus shares |
|
40.00 |
|
| Transfer
to general reserve |
|
56 000 |
|
| Unappropriated
profit carried forward |
1,853 |
|
|
|
|
|
| DIVIDEND |
|
| The
Board of Directors has recommended a bonus @ 20% for the year ended June 30,
1997. |
|
|
| REVIEW
OF OPERATIONS |
|
| This
year has been a crisis year for the financial sector. The economic activity
has been at a standstill and major shifts |
|
| in
the viabilities of industrial sectors has forced the managers of financial
institutions to re-evaluate the credit policies. |
|
| increase
monitoring activities and focus on provisioning policies. Cement sector has
seen its fortune fluctuate wildly |
|
| while
power sector has lost its sparkle in a relatively short period. The liquidity
crunch at WAPDA KESC and certain |
|
| other
government corporations has severely curtailed their investment capabilities.
This in turn has had a major impact |
|
| on
suppliers of goods and services to these corporations. |
|
|
| Despite
this gloomy picture we foresee positive indications ~n government |
|
| policies
to steer the economy into the right direction. Professional |
|
| management
at nationalized banks. improved relations with IMF. focused |
|
| privatization
and renewed foreign investor interest bodes well for the future. |
|
|
|
| In
the above background. your company is moving ahead at a steady pace |
|
| set
over the last 4 years. Lease income of Rs. 511 million and total revenue |
|
| of
Rs. 631 million compare favourably with last year figures of Rs. 313 |
|
| million
and Rs. 379 million respectively. Lease income is 81% of total |
|
| revenue,
in line with previous years, showing our continued commitment to |
|
| our
core business i.e. leasing. Financial charges of Rs. 420 million represent |
|
| major
portion of our total expense and are 78% higher than last year. This is |
|
| reflective
of our growth and the higher cost of our borrowings - primarily |
|
| ANZA
certificates of Investment (COIs). Administrative cost of Rs. 32 million |
|
| is
higher by Rs. 7 million from last year. The major variance is represented |
|
| by
advertising costs (Rs. 4 million higher than last year) incurred on |
|
| publicizing
ANZA COIs. We will continue to direct resources in this area to |
|
| further
broaden our COl base. The administrative expenses represent only |
|
| 0.8%
of our total assets - lowest among the larger leasing companies. |
|
|
| As
discussed earlier. lease loss provisions have come under close scrutiny |
|
| of
the management especially given the adverse economic condition of the |
|
| country.
In light of this we have adopted a policy which recognises the |
|
| current
economic environment and ensures that the balance sheet reflects |
|
| the
true financial health of the company. This policy will also give confidence |
|
| to
our creditors and the rating agencies. Our current year lease loss |
|
| provision
is Rs. 43 million compared to Rs. 17 million in the previous year |
|
| and
total provision as of June 30. 1997 is Rs. 75 million i.e. 2.6% of net |
|
| investment
in leases. |
|
|
| Total
assets of the company increased from Rs. 2.7 billion in 1996 to Rs. 4 |
|
| billion
in 1997. Net investment in lease increased from Rs. 1.9 billion to Rs. |
|
| 2.9
billion a 53% increase. This strong growth in the leasing business is |
|
| reflective
of marketing efforts and acceptability of your company as a major |
|
| player
in the leasing business in Pakistan. Diversification of our lease |
|
| portfolio
remains central to our risk management strategy. Sectorwise lease |
|
| analysis
shows 23% in Power. 20% in Fuel and Energy 14% in |
|
| Cement,
11% in Services, 5% in Textile, 4% in Tobacco and 4% in |
|
| Chemical.
The balance 19% is distributed in banking, glass. |
|
| ceramics.
engineering, etc. Geographically the lease portfolio is |
|
| divided
between Karachi (32%), Lahore/ Faisalabad (55%) and |
|
| Rawalpindi/
Islamabad (13.%). Our majority of leases are for |
|
| machinery
(71%) while the balance is in equipment (22%) and |
|
| vehicles
(7%). |
|
|
| The
assets have primarily been financial through ANZA COIs. |
|
| As
explained in our previous reports to the shareholders. we |
|
| continue
our primary reliance on this source of funds. We carried out |
|
| a
major advertising campaign in the last quarter of the year and are |
|
| encouraged
by the response from the public. We intend to commit |
|
| additional
resources to further increase our share of savings market. |
|
| This
is possible due to ready acceptability and the trust reposed in our |
|
| corporate
brand name- "ASKARI". We are committed to increase |
|
| our
customer base by continuing to provide the best returns and |
|
| professional
service. We are quite confident of our success. |
|
|
| We
are seeking to diversify our resource base by approaching |
|
| multilateral
agencies and other international institutions. Financial |
|
| institutions
in Pakistan have shown their full confidence in your |
|
| company
and we continue to look for their support and advice. We |
|
| have
built these relationships on solid ground for mutual benefits. |
|
|
| Information
technology is changing at a rapid pace and the |
|
| management
is committed to use this technology to create |
|
| efficiencies
and value for your company. We will continue to invest in |
|
| software
and hardware to achieve highest levels of efficiencies in |
|
| delivering
financial services and to achieve competitive advantage. |
|
|
| Our
planned growth requires a regular supply of human capital. Our |
|
| strategy
to open additional branches will also require quality staff to |
|
| give
us effective penetration in the market. We will invest in the |
|
| human
resources to sustain these growth levels. The Board is |
|
| appreciative
of dedication and hard work of employees in achieving |
|
| the results. |
|
|
| PACRA RATING |
|
| Pakistan
Credit Rating Agency (PACRA) has rated the company A and A1 for long term and
short term obligations. This |
|
| is
among the best ratings in the leasing sector in Pakistan. |
|
|
| AUDITORS |
|
| The
Auditors, M/s Taseer Hadi Khalid and Company, retire and being eligible offer
themselves for reappointment. |
|
|
| PATTERN
OF SHARE HOLDING |
|
| The
pattern of share holding of the Company as at June 30, 1997 is shown. |
|
|
| ACKNOWLEDGMENT |
|
| We
wish to thank Corporate Law Authority, State Bank of Pakistan and other
regulatory authorities for their cooperation. |
|
| guidance
and support whenever sought. |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| We
have audited the annexed balance sheet of Askari Leasing Limited as at 30
June 1997 and the related profit and loss |
|
| account
and the 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 purposes of our audit and, after due verification thereof,
we report that: |
|
|
| a)
in our opinion, proper books of account have been kept by the company as
required by the Companies |
|
| Ordinance,
1984; |
|
|
| b)
in our opinion: |
|
|
| i)
the balance sheet and profit and loss account together with the notes thereon
have been drawn |
|
| up
in conformity with the Companies 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, 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 |
|
| 30
June 1997 and of the profit and the changes in the financial position for the
year 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. |
|
|
|
Taseer Hadi Khalid &
Co. |
|
| Islamabad:
July 29, 1997 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET |
|
| AS
AT JUNE 30, 1997 |
|
|
Note |
1997 |
1996 |
|
|
(Rs in '000) |
(Rs in '000) |
|
| ASSETS |
|
|
|
| Fixed
Assets - Tangible |
|
3 |
14,816 |
6,514 |
|
| Long
Term Advances |
|
4 |
6,086 |
377 |
|
| Deferred
Costs |
|
|
300 |
500 |
|
| Long
Term Investments |
|
5 |
5,000 |
5,000 |
|
|
|
---------- |
---------- |
|
| Net
Investment in Lease Finance |
|
|
|
| Minimum
Lease Payments Receivable |
|
|
3,207,006 |
2,264,494 |
|
| Add:
Residual Value |
|
|
469,748 |
212,733 |
|
|
|
---------- |
---------- |
|
|
|
3,676,754 |
2,477,227 |
|
| Less:
Unearned Finance Income |
|
|
771 284 |
561,751 |
|
|
|
---------- |
---------- |
|
| Net
Investment in Leases |
|
6 |
2,905,470 |
1,915,476 |
|
| Less:
Current Portion |
|
|
710,303 |
491,338 |
|
|
|
---------- |
---------- |
|
|
|
|
2,195,167 |
1,424,138 |
|
|
|
|
| Current
Assets |
|
7 |
1,797,060 |
1,302,413 |
|
|
|
---------- |
---------- |
|
|
|
4,018,429 |
2,738,942 |
|
|
|
========== |
========== |
|
| CAPITAL
AND LIABILITIES |
|
|
|
| Share
Capital and Reserves |
|
|
|
| Authorized
Capital |
|
|
|
| 50,000,000
ordinary shares of Rs. 10/- each |
|
500,000 |
500,000 |
|
|
|
========== |
========== |
|
| Issued,
Subscribed and Paid up Capital |
|
|
|
| 20,000,000
ordinary shares of Rs. 10/- each |
|
200,000 |
200,000 |
|
| issued
for cash |
|
|
|
|
|
|
| Reserves |
|
|
|
|
| Reserves |
|
8 |
267,963 |
147.95 |
|
| Unappropriated
profit |
|
|
1,853 |
1,793 |
|
|
|
---------- |
---------- |
|
|
|
269.82 |
149.74 |
|
|
|
---------- |
---------- |
|
|
|
469,816 |
349.74 |
|
|
|
|
| Allowance
for Potential Lease Losses |
|
2.3 |
74,670 |
31,287 |
|
| Long
Term Liabilities |
|
9 |
2,118,780 |
1,238,570 |
|
| Current
Liabilities |
|
10 |
1,355,163 |
1,119,343 |
|
|
|
---------- |
---------- |
|
|
|
4,018,429 |
2,738,942 |
|
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
| The auditor's report is
annexe thereto. |
|
|
|
|
|
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
|
|
| FOR
THE YEAR ENDED JUNE 30, 1997 |
|
|
|
Note |
1997 |
1996 |
|
|
|
(Rs. in '000) |
(Rs. in '000) |
|
| REVENUE |
|
|
|
| Lease income |
|
11 |
511 128 |
312,582 |
|
| Income
from short term investments |
|
|
58,296 |
30,761 |
|
| Income
from bank deposits |
|
|
44,684 |
22,174 |
|
| Fees
and commission |
|
|
13,400 |
13,422 |
|
| Other income |
|
|
3,468 |
350 |
|
|
|
---------- |
---------- |
|
|
|
630,976 |
379,289 |
|
|
|
|
| EXPENDITURE |
|
|
|
|
| Finance
and bank charges |
|
12 |
420,440 |
236,489 |
|
| General
and administrative expenses |
|
13 |
32,079 |
25,342 |
|
| Allowance
for potential lease losses |
|
|
43,382 |
17.22 |
|
|
|
---------- |
---------- |
|
|
|
495,901 |
279,051 |
|
|
|
---------- |
---------- |
|
| Profit
Before Taxation |
|
|
135,075 |
100,238 |
|
| Provision
for Taxation |
|
|
|
|
| Current |
|
|
13,000 |
4,500 |
|
| Prior years' |
|
|
2,000 |
- |
|
|
|
---------- |
---------- |
|
|
|
15,000 |
4,500 |
|
|
|
---------- |
---------- |
|
| Profit
After Tax |
|
|
120,075 |
85,788 |
|
| Un-appropriated
Profit Brought Forward |
|
|
1,793 |
1.20 |
|
|
|
---------- |
---------- |
|
| Profit
Available for Appropriations |
|
|
121,868 |
96,941 |
|
|
|
|
| APPROPRIATIONS |
|
|
|
|
|
| Transferred
to reserve fund |
|
|
|
24,015 |
19,148 |
|
| Transferred
to general reserve |
|
|
56.00 |
36.00 |
|
| Transferred
to reserve for issue of bonus shares |
|
40.00 |
- |
|
| Proposed
dividend |
|
|
|
- |
40,000 |
|
|
|
|
---------- |
---------- |
|
|
|
|
120,015 |
95,148 |
|
|
|
|
---------- |
---------- |
|
| Un-appropriated
Profit Carried Forward |
|
1,853 |
1 793 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
1997 |
1996 |
|
| STATEMENT OF CHANGES IN
FINANCIAL POSITION |
|
(Rs. in '000) |
(Rs, in '000) |
|
| FOR
THE YEAR ENDED JUNE 30, 1997 |
|
|
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Net
profit after tax |
|
120,075 |
95,738 |
|
| Adjustment
for: |
|
|
|
| Depreciation |
|
2,904 |
2,332 |
|
| Allowance
for potential lease losses |
|
43,382 |
.17,220 |
|
| Profit
on disposal of fixed assets |
|
(21) |
- |
|
| Amortization
of deferred costs |
|
200 |
200 |
|
| Provision
for diminution in value of shares |
|
176 |
2,356 |
|
|
---------- |
---------- |
|
|
46,641 |
22,108 |
|
|
---------- |
---------- |
|
| Operating
Profit Before Working Capital Changes |
|
166,716 |
117 646 |
|
| (Increase)/decrease
in: |
|
|
|
| Short
term investments |
|
(386,474) |
(280,950) |
|
| Advances,
prepayments and other receivables |
|
126,752 |
151,939) |
|
|
---------- |
---------- |
|
|
(259,722) |
(432,889) |
|
| Increase
in current liabilities |
|
77,445 |
84,653 |
|
|
---------- |
---------- |
|
| Net
Cash Used in Operating Activities |
|
(15,561) |
(230,390) |
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
|
|
| Purchase
of operating fixed assets |
|
(11,537) |
(3,553) |
|
| Disposal
of operating fixed assets |
|
351 |
- |
|
| Long
term advances/investments |
|
(5,709) |
(5,377) |
|
| Investment
in lease finance (net) |
|
(989,994) |
(1,019,453) |
|
|
---------- |
---------- |
|
| Net
Cash Used in Investing Activities |
|
(1,006,889) |
(1,028,383) |
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
|
| Bridge
finance |
|
- |
(56,000) |
|
| Deposits
on lease contracts |
|
108,485 |
88,297 |
|
| Loans
from financial institutions |
|
313,622 |
(187,788) |
|
| Certificates
of investment |
|
653,212 |
1,286,089 |
|
| Dividend paid |
|
(36,734) |
- |
|
| Proceeds
from issue of right shares |
|
- |
100,000 |
|
|
---------- |
---------- |
|
| Net
Cash From Financing Activities |
|
1,038,585 |
1,230,598 |
|
|
---------- |
---------- |
|
| Net
increase/(decrease)in cash and cash equivalents |
|
16,136 |
(28,175) |
|
| Cash
and cash equivalents at the beginning of the year |
|
42,579 |
70,753 |
|
|
---------- |
---------- |
|
| Cash
and cash equivalents at the end of the year |
|
58,714 |
42,578 |
|
|
========== |
========== |
|
|
|
|
|
|
|
| NOTES TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED JUNE3O, 1997 |
|
|
|
| 1. COMPANY AND ITS OPERATIONS |
|
| Askari
Leasing Limited ("the company") was incorporated in Pakistan as a
public limited company on Ist August |
|
| 1993
and is listed on the Karachi, Lahore and Islamabad Stock Exchanges. The
company principally carries on the |
|
| business
of leasing and providing finance. |
|
|
| 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
Accounting Convention |
|
| These
accounts have been prepared under the historical cost convention |
|
|
| 2.2
Revenue Recognition |
|
| At
the commencement of lease, the total unearned lease income consists of excess
of aggregate lease |
|
| contract
receivable over the cost of the leased equipment. At the time a lease is
executed, a portion of |
|
| unearned
lease income which equals the allowance for potential lease losses is charged
to income. The |
|
| remainder
of unearned lease income is taken to income over the term of lease. starting
from the month |
|
| in
which the lease is executed. so as to produce a systematic return on the net
investment in the lease. |
|
|
| Interest
on short term investments and bank deposits is accounted for on accrual
basis. |
|
|
| 2.3
Allowance for Potential Lease Losses |
|
| The
allowance for potential lease losses is maintained at a level which, in the
judgment of the manage- |
|
| ment.
is adequate to provide [or potential losses on lease portfolio that can be
reasonably anticipated. |
|
| The
allowance is increased by provisions-charged to income and is decreased by
charge off. net of recov- |
|
| eries. |
|
|
| 2.4
Fixed Assets and Depreciation |
|
| These
are stated at cost less accumulated depreciation. |
|
| Depreciation
is charged to income applying the straight line method whereby cost of the
asset is written |
|
| off
over its estimated useful life. n respect of additions and deletions of
assets during the year, depreci- |
|
| ation
is charged proportionately from the month of acquisition and upto deletion
respectively. Minor main- |
|
| tenance
and repairs are charged to income as and when incurred. |
|
|
| Major
renewals and improvements are capitalized and the assets so replaced, if any,
are retired. Gains |
|
| and
losses on disposal of assets, if any, are included in current year's income. |
|
|
| 2.5
Investments |
|
| Long term |
|
| These
are stated at cost. Provision for diminution in value of investments is made,
if considered per- |
|
| manent; |
|
|
| Short term |
|
| These
are stated at lower of average cost and market value determined on an
aggregate portfolio |
|
| basis. |
|
|
| 2.6 Taxation |
|
| The
charge for current taxation is based on taxable income at the current tax
rates after taking into |
|
| account
tax credits and tax rebates available, if any. Deferred tax is accounted for
by using the liability |
|
| method
on all major timing differences excluding tax effect on those timing
differences which are not |
|
| likely
to reverse in the foreseeable future. As a measure of prudence, deferred tax
debits are not |
|
| accounted
for. |
|
|
| 2.7 Deferred Costs |
|
| These
are written off within a period of five years from the date of occurrence. |
|
|
| 2.8 Foreign Currency Transactions |
|
| Transactions
in foreign currencies are accounted for in rupees at the rates of exchange
ruling on the date |
|
| of
the transactions. Assets and liabilities in foreign currencies are translated
into rupees at the rate of |
|
| exchange
ruling at the balance sheet date, except for liabilities covered under State
Bank of Pakistan |
|
| exchange
risk cover scheme, which are translated at contracted rates. Exchange gains
and losses are |
|
| dealt
within the profit and loss account. |
|
|
| 2.9
Staff Retirement Benefits |
|
| The
company operates a Staff Provident Fund scheme for all eligible employees and
contributions are |
|
| made
monthly in accordance with the rules of the scheme to cover its obligation. |
|
|
| 3.
FIXED ASSETS - TANGIBLE |
|
|
Cost (Rs. in '000) |
|
| 3.1 |
|
Depreciation (Rs. in '000) |
|
|
| Particulars |
|
As at |
Additions/ |
As at |
Acc Dep |
Book Value |
Depreciation |
Rate of |
|
|
1st July |
(Deletions) |
30 June |
30 June |
As at |
For the |
Dep % |
|
|
1997 |
|
1997 |
1997 |
30 June 97 |
Year/(on deletion) |
|
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
| Leasehold |
|
|
|
|
|
| improvements |
|
2,540 |
4,585 |
7,125 |
2,580 |
4,545 |
812 |
33 |
|
| Furniture |
|
807 |
754 |
1,561 |
275 |
1,286 |
94 |
10 |
|
|
|
|
|
|
| Office |
|
|
|
|
|
| equipment |
|
3,791 |
5,378 |
9,160 |
2,632 |
8,528 |
1,265 |
20 |
|
|
|
(9) |
|
|
(5) |
|
| Motor
vehicles |
3,542 |
819 |
4,015 |
1,558 |
2,457 |
733 |
20 |
|
|
|
(346) |
|
|
(20) |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
| 1997 |
|
10,680 |
11,536 |
21,861 |
7,045 |
14,816 |
2,904 |
|
|
|
|
(355) |
|
|
(25) |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
| 1996 |
|
7,127 |
3,553 |
10,680 |
4,166 |
6,514 |
2,332 |
|
| ========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
|
| 3.2
Detail of Disposal of Fixed Assets During the Year |
|
|
Rs. in '000 |
|
|
|
| Description |
Cost |
Accumulated |
Book |
Sale |
Profit/(Loss) |
Mode of |
Particulars of |
|
|
|
Depreciation |
Value |
Proceeds |
on Disposal |
Disposal |
Purchaser |
|
|
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
| Vehicles |
346 |
20 |
326 |
347 |
21 |
Insurance |
Askari general |
|
|
|
claim |
Insurance Co. Ltd. |
|
| Others |
9 |
5 |
4 |
4 |
- |
Adjustment from employees |
|
|
|
on final settlement |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
355 |
25 |
330 |
351 |
21 |
|
|
========== |
========== |
========== |
========== |
========== |
|
|
| The
profit on disposal of fixed assets is included in other income. |
|
|
| 4.
LONG TERM ADVANCES -- Considered good |
|
|
1997 |
1996 |
|
|
(Rs. in '000) |
(Rs. in '000) |
|
|
| Chief
Executive |
|
(4.1) |
942 |
65 |
|
| Executives |
|
4,985 |
542 |
|
| Others |
|
656 |
134 |
|
|
---------- |
---------- |
|
|
6,583 |
741 |
|
| Less:
Installments recoverable within one year |
|
497 |
364 |
|
|
---------- |
---------- |
|
|
6,086 |
377 |
|
|
========== |
========== |
|
| These
are analysed as follows: |
|
| Outstanding
for over three years |
|
5,380 |
123 |
|
| Others |
|
706 |
254 |
|
|
---------- |
---------- |
|
|
6,086 |
377 |
|
|
========== |
========== |
|
| Maximum
aggregate amount outstanding during the year |
|
| in
respect of Chief executive and executives |
|
5,191 |
970 |
|
|
========== |
========== |
|
|
|
|
| 4.1
Advance to Chief Executive represents house loan of Rs. 900,000 and a
personal advance of |
|
| Rs,
41.875 (1996: Rs. 65,000) given in accordance with the terms of agreement.
The approval of the |
|
| Regulatory
Agency requires recovery of house loan to be made within ten years from the
date of |
|
| disbursement. |
|
|
| Advances
to executives represent house, transport and personal loans granted in
accordance with |
|
| Employees'
Service Regulations. |
|
|
| 5.
LONG TERM INVESTMENTS |
|
| This
represents investment in 500.000 ordinary shares of Rs. 10 each as 10%
investment of sponsors' shares in |
|
| Askari
General Insurance Company Ltd. an associated listed company {market value as
at June 30. 1997: |
|
| Rs.
9,250,000 (1996: Rs. 8,875,000)}. |
|
|
| 6.
NET INVESTMENT IN LEASE FINANCE |
|
| This
includes leasing facilities of over Rs. 93 million provided to the following
clients: |
|
|
| Zaman
Energy Limited |
|
413 million |
|
| Sui
Northern Gas Pipelines Limited |
|
210 million |
|
| Sui
Southern Gas Company Limited |
|
196 million |
|
| Gharibwal
Cement Limited |
|
102 million |
|
| D.G.
Khan Cement Company Limited |
|
100 million |
|
| Sapphire
Power Generation Limited |
|
95 million |
|
|
| 7.
CURRENT ASSETS |
|
|
|
1997 |
1996 |
|
|
(Rs. in '000) |
(Rs. in '000) |
|
|
| Current
portion of long term lease finance |
|
710,303 |
491,338 |
|
| Short
term investments |
|
7.1 |
829,817 |
443.52 |
|
| Advances.
prepayments and other receivables |
7.2 |
198,226 |
324.98 |
|
| Cash
and bank balances |
|
7.3 |
58,714 |
42,578 |
|
|
|
---------- |
---------- |
|
|
1,797,060 |
1,302,413 |
|
|
========== |
========== |
|
| 7.1
Short Term Investments |
|
|
| Federal
investment bonds |
|
7.1.1 |
360,000 |
210.70 |
|
| Musharika
financing |
- Secured |
|
7.1.2 |
45,023 |
44.89 |
|
| Financing
agreement |
- Secured |
|
7.1.2 |
42,050 |
12,000 |
|
| Repurchase
agreements |
- Secured |
|
7.1,2 |
15.44 |
16,445 |
|
| Short
term placements |
|
|
365.00 |
137,000 |
|
| Term
finance Certificates |
- Secured |
|
|
- |
20,000 |
|
| Investment
in shares |
|
7.1.3 |
2,305 |
2,481 |
|
|
|
---------- |
---------- |
|
|
829,817 |
443,519 |
|
|
========== |
========== |
|
|
|
|
| 7.1.1.
This represents investments in Federal Investment Bonds (FIBs) on which
profit is receivable |
|
| semi-annually
at the rates of 13 to 15% per annum |
|
|
| 7.1.2
These are secured against bank guarantees and lien over shares of listed
companies and |
|
| certificates
of investment (COIs) issued by the company. The expected rate of profit
ranges |
|
| from
18.1% to 24.00%. |
|
|
| 7.1.3
Investment in shares |
|
1997 |
1996 |
|
|
(Rs. in '000) |
(Rs. in '000) |
|
|
| Cost
of Investment |
|
4,837 |
4,837 |
|
| Less:
Provision for diminution in value |
|
2,532 |
2,356 |
|
|
---------- |
---------- |
|
|
2,305 |
2,481 |
|
|
========== |
========== |
|
|
|
|
| These
represent investment of 352,600 ordinary shares of Rs. 10 each in Shifa
International |
|
| Hospitals
Ltd. {(Market value Rs. 2,291,900 (1996: Rs. 2,468,200)} and 500 ordinary
shares of |
|
| Rs.
10 each of Sitara Energy Ltd. {Market Value Rs. 13,000 (1996: Rs. 30,938)}. |
|
|
| 7.2
Advances, Prepayments and |
|
| Other
Receivables - Considered Good |
|
|
| Advances
to employees |
|
4 |
497 |
364 |
|
| Advance
against leases |
|
74,000 |
213,813 |
|
| Advance
income tax |
|
17,197 |
6,895 |
|
| Other
advances |
|
2,487 |
2,385 |
|
| Prepayments |
|
13,548 |
29,308 |
|
| Accrued
income |
|
28,931 |
25,243 |
|
| Lease
rentals receivable |
|
38,748 |
31,234 |
|
| Amounts
receivable from |
|
| associated
undertakings |
|
7.2.1 |
12,072 |
14,065 |
|
| Others |
|
7.2.2 |
10,746 |
1,671 |
|
|
|
---------- |
---------- |
|
|
198,226 |
324,978 |
|
|
========== |
========== |
|
|
|
|
| 7.2.1
These are made up as follows: |
|
|
| Army
Welfare Trust |
|
10,724 |
14,065 |
|
| Askari
General Insurance Co. Limited |
|
1,348 |
- |
|
|
---------- |
---------- |
|
|
12,072 |
14,065 |
|
|
========== |
========== |
|
|
|
|
| The
maximum aggregate amount receivable at the end of any month during the year
from |
|
| Associated
undertakings was Rs. 15,010,583 (1996: Rs. 14,352,580). |
|
|
| 7.2.2.
This includes an amount of Rs. 2,236,698 receivable from the State Bank of
Pakistan on |
|
| premature
termination of Foreign Exchange Risk Contracts. |
|
|
| 7.3
Cash and Bank Balances |
|
|
1997 |
1996 |
|
|
(Rs. in '000) |
(Rs. in '000) |
|
|
| Cash in hand |
|
1 |
17 |
|
| Cash at bank |
|
---------- |
---------- |
|
| on
current accounts with: |
|
| State
Bank of Pakistan |
|
23,809 |
14,049 |
|
| Other
Commercial Banks |
|
6,787 |
3,645 |
|
| on
deposit accounts |
|
28,117 |
24.87 |
|
|
---------- |
---------- |
|
|
58,713 |
42,561 |
|
|
---------- |
---------- |
|
|
58,714 |
42,578 |
|
|
========== |
========== |
|
| 8. RESERVES |
|
| General
reserve |
|
166,000 |
110.00 |
|
| Reserve fund |
|
8.1 |
61 963 |
37.95 |
|
| Reserve
for issue of bonus shams |
|
40,000 |
- |
|
|
---------- |
---------- |
|
|
267,963 |
147.95 |
|
|
========== |
========== |
|
|
|
|
| 8.1
The reserve fund is created by transferring 20% of the profit after tax to
the reserve fund. This reserve ~s |
|
| required
to be maintained under the State Bank of Pakistan regulations for Non Banking
Financial |
|
| Institutions.
The movement in this account has been as follows: |
|
|
| Opening balance |
|
37,948 |
18,800 |
|
| Transferred
during the year |
|
24,015 |
19,149 |
|
|
---------- |
---------- |
|
|
61,963 |
37,949 |
|
|
========== |
========== |
|
| 9.
LONG TERM LIABILITIES |
|
|
| Certificates
of Investment |
|
9.1 |
1,822,401 |
1,044,331 |
|
| Deposits
on Lease Contracts |
|
9.2 |
283,879 |
185,906 |
|
| Long
Term Loans - Secured |
|
9.3 |
12,500 |
8,333 |
|
|
|
---------- |
---------- |
|
|
2,118,780 |
1,238,570 |
|
|
========== |
========== |
|
| 9.1
Certificates of Investment (COIs) |
|
|
|
| The
company has launched a COI scheme for mobilization of resources, after
getting the permission from |
|
| Corporate
Law Authority, Government of Pakistan. The term of these COIs ranges from
three months to |
|
| five
years and the return ranges from 15% to 18.6% is paid on a profit and loss
sharing basis. |
|
|
| These
are made up as follows: |
|
|
1997 |
1996 |
|
|
(Rs. in '000) |
(Rs. in '000) |
|
|
| Certificates
of Investment |
|
1,807,604 |
1,035 278 |
|
| Mark-up
payable |
|
14,797 |
9,053 |
|
|
---------- |
---------- |
|
|
1,822,401 |
1,044,331 |
|
|
========== |
========== |
|
| 9.2
Deposits on Lease Contracts |
|
|
| These
represent security deposits received against lease contracts. These are
refundable/adjustable at |
|
| the
expiry of the respective ease periods. |
|
|
| 9.3 Long Term Loans |
|
|
| These
are made up as follows: |
|
| Standard
Chartered Bank- |
|
(9.3.1) |
8,333 |
16,666 |
|
| ANZ
Grindlays Bank |
|
(9.3.2) |
20,833 |
- |
|
|
|
---------- |
---------- |
|
|
|
29,166 |
16,666 |
|
| Less:
Current maturity |
|
|
16,666 |
8,333 |
|
|
|
---------- |
---------- |
|
|
|
12,500 |
8,333 |
|
|
========== |
========== |
|
|
|
|
| 9.3.1
This represents a term finance facility repayable in six semiannual
installments. The facility |
|
| carries
mark up of 47.26 paisas per thousand per day, and is secured by first charge
on spe- |
|
| cific
leased assets and related receivables. |
|
|
| 9.3.2
This represents a term finance facility repayable in six semiannual
installments. The facility |
|
| carries
a mark up of 47.95 paisas per thousand per day and is secured by first charge
on spe- |
|
| cific
leased assets and related receivables. |
|
|
| 10.
CURRENT LIABILITIES |
|
1997 |
1996 |
|
|
(Rs. in '000) |
(Rs. in '000) |
|
|
| Current
maturity of long term loans |
|
(9.3) |
16,666 |
8,333 |
|
| Short
term facilities - Secured |
|
(10.1) |
578,726 |
277,604 |
|
| Certificates
of Investment |
|
(9.1) |
558.75 |
683,602 |
|
| Deposits
on lease contracts |
|
(9.2) |
25.11 |
14,599 |
|
| Creditors |
|
|
15,448 |
1,838 |
|
| Accrued
mark up on loans from banks |
|
|
9,280 |
15,274 |
|
| Accrued
mark up on certificates of investment |
|
89,610 |
52,822 |
|
| Other
accrued liabilities |
|
|
2,555 |
4,703 |
|
| Provision
for taxation |
|
|
27.40 |
12,400 |
|
| Proposed
dividend |
|
|
- |
40,000 |
|
| Unclaimed
dividend |
|
|
3,266 |
- |
|
| Other
liabilities |
|
|
28,357 |
8,168 |
|
|
|
---------- |
---------- |
|
|
|
1,355,163 |
1,119,343 |
|
|
|
========== |
========== |
|
|
|
|
| 10.1
These are made up as follows: |
|
|
|
|
|
|
| Standard
Chartered Bank |
|
(10.1.1) |
19,847 |
723 |
|
| American
Express Bank Ltd. |
|
(10.1.2) |
77,720 |
41,879 |
|
| Allied
Bank of Pakistan Ltd. |
|
|
- |
100,000 |
|
| Credit
Agricole Indosuez |
|
(10.1.3) |
45,000 |
35,000 |
|
| Faysal
Bank Ltd. |
|
|
- |
50,000 |
|
| Credit
Agricole Indosuez |
|
(10.1.4) |
82 |
2 |
|
| The
Hong Kong and Shanghai Banking Corp. Ltd. |
(10.1.5) |
36,077 |
- |
|
| Deutsche Bank |
|
(10.1.6) |
50,000 |
50,000 |
|
| Crescent
Investment Bank Ltd. |
|
(10.1.7) |
100,000 |
- |
|
| EOBI- Karachi |
|
(10.1.8) |
250,000 |
- |
|
|
|
---------- |
---------- |
|
|
|
578,726 |
277,604 |
|
|
|
========== |
========== |
|
|
| 10.1.1
This working capital finance facility of Rs. 30 million is secured against
specific leased assets and |
|
| related
receivables and carries mark up of 47.95 paisas per thousand per day. |
|
|
| 10.1.2
This demand, finance facility of Rs. 100 million for a six month period on a
rollover basis is |
|
| secured
against specific leased assets and related receivables and carries mark up of
47.95 |
|
| paisas
per thousand per day. |
|
|
| 10.1.3
This short term finance facility of Rs. 45 million for a period of one year
on a roll over basis is |
|
| secured
against specific leased assets and related receivables and carries mark up of
17.75% |
|
| per annum. |
|
|
| 10.1.4
This PLS running finance facility of Rs. 15 million is secured against
specific leased assets and |
|
| related
receivables and carries mark up of 48.63 paisas per thousand per day. |
|
|
| 10.1.5
This running finance facility of Rs. 50 million for a period of one year on a
roll over basis is |
|
| secured
against specific leased assets and related receivables and carries mark up of
16,80% |
|
| per annum. |
|
|
| 10.1.6
This short term finance facility of Rs. 50 million for one year on a rollover
basis is secured |
|
| against
specific leased assets and related receivables and carries mark up of 47.92
paisas per |
|
| thousand
per day. |
|
|
| 10.1.7
This represents a three month borrowing against deposit to a commercial bank. |
|
|
| 10.1.8
This represents borrowings for the purchase of Government Securities. The
arrangements |
|
| carry
costs ranging from 0.73 paisas to 0.86 paisas per thousand per day. |
|
|
| 11.
LEASE INCOME |
|
| Lease
income is recognized in accordance with the accounting policy as explained in
Note 2.2. |
|
|
|
1997 |
1996 |
|
|
(Rs, in '000) |
(Rs. in '000) |
|
| 12.
FINANCE AND BANK CHARGES |
|
|
| Mark-up
on Certificates of Investment |
|
353,589 |
170,319 |
|
| Mark-up
on bank borrowings |
|
61,219 |
65,254 |
|
| Bank
charges & commission |
|
5.63 |
916 |
|
|
---------- |
---------- |
|
|
420,440 |
236.49 |
|
|
========== |
========== |
|
|
|
|
| 13.
GENERAL AND ADMINISTRATIVE EXPENSES |
|
|
| Salaries,
allowances and benefits |
|
9,949 |
7,725 |
|
| Rent |
|
3,135 |
2,712 |
|
| Staff
training |
|
184 |
1,670 |
|
| Travelling
and vehicle running |
|
1,196 |
1,403 |
|
| Insurance
of operating assets |
|
921 |
254 |
|
| Legal
and professional charges |
|
2,647 |
1,925 |
|
| Telephone
and utilities |
|
3,298 |
1,568 |
|
| Donations |
|
(13.1 ) |
66 |
160 |
|
| Subscription |
|
|
53 |
45 |
|
| Auditor's
remuneration |
|
(13.2) |
135 |
105 |
|
| Printing
and stationery |
|
1,439 |
718 |
|
| Depreciation |
|
2,904 |
2,332 |
|
| Repairs
and maintenance |
|
328 |
136 |
|
| Advertisement |
|
5,364 |
1,523 |
|
| Provision
for diminution in value of shares |
|
176 |
2.36 |
|
| Amortization
of deferred costs |
|
200 |
200 |
|
| General
expenses |
|
84 |
510 |
|
|
---------- |
---------- |
|
|
32,079 |
25,342 |
|
|
========== |
========== |
|
|
|
|
| 13.1
Donations |
|
| The
directors and their spouses do not have any interest in the donee
institutions. |
|
|
| 13.2
Auditors' remuneration |
|
1997 |
1996 |
|
|
(Rs. in '000) |
(Rs. in '000) |
|
|
| Audit fee |
|
70 |
40 |
|
| Tax
consultancy fee |
|
55 |
55 |
|
| Out
of pocket expenses |
|
10 |
10 |
|
|
---------- |
---------- |
|
|
135 |
105 |
|
|
========== |
========== |
|
|
|
|
| 14.
REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES |
|
|
| The
aggregate amount charged in the accounts for remuneration. including certain
benefits, to the directors, chief |
|
| executive
and other executives of the company is as follows: |
|
|
|
1997 |
|
|
1996 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
Directors |
Chief Executive |
Executives |
Directors |
Chief Executive |
Executives |
|
|
|
|
|
|
|
|
|
|
| Managerial
remuneration |
|
534 |
|
2.01 |
|
534 |
|
1,229 |
|
| Housing
and utilities |
|
294 |
|
1.10 |
|
294 |
|
674 |
|
| Medical
expenses |
|
54 |
|
194 |
|
48 |
|
121 |
|
| Reimbursable
expenses |
|
348 |
|
171 |
|
324 |
|
95 |
|
| Provident
fund |
|
44 |
|
157 |
|
44 |
|
104 |
|
|
|
|
|
|
|
|
| Meeting
fees |
|
6 |
- |
|
- |
5 |
- |
|
- |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
6 |
1,274 |
|
3,628 |
5 |
1,244 |
|
2,223 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Number
of Persons |
8 |
1 |
|
14 |
8 |
1 |
|
6 |
|
|
| Company
maintained cars are provided to the Chief Executive and other executives. |
|
|
| 15.
TRANSACTIONS WITH ASSOCIATED UNDERTAKINGS |
|
1997 |
1996 |
|
|
|
(Rs. in '000) |
(Rs. in '000) |
|
| These
comprise of the following: |
|
| Profit
on bank deposits with |
|
| Askari
Commercial Bank Limited |
|
1,022 |
1,270 |
|
| Arrangement
fee paid to/through Army Welfare Trust |
|
2,516 |
25,245 |
|
| Profit
paid on COIs to: |
|
|
|
| Army
Welfare Trust |
|
18,203 |
- |
|
| Askari
General Insurance Co. Ltd. |
|
3,707 |
1,085 |
|
| Askari
Aviation (Pvt.) Ltd. |
|
86 |
- |
|
| Askari
General Insurance Co. Ltd. (for insurance premium) |
240 |
- |
|
| Askari
General Insurance Co. Ltd. (Insurance claim) |
|
346 |
- |
|
| Askari
Associates (Pvt.) Ltd. (for registrar services) |
|
578 |
348 |
|
|
|
|
| 16. TAXATION |
|
| Income
tax assessment for the year ended 31 December 1993 (Assessment year 1994-95)
has been finalized by |
|
| the
income tax department creating a net demand of Rs. 2.2 million. The company
has filed an appeal against the |
|
| assessment
with the Commissioner of Income Tax Appeals. The management is confident of
favourable resolution |
|
| of
the assessment. |
|
|
| Deferred
taxation arising out of timing differences between accounting and income tax
revenue or charges is esti- |
|
| mated
at Rs. 65 million ('1996: Rs. 55 million). Provision has not been made in
these accounts for deferred taxa- |
|
| tion
as in the opinion of the directors, these timing differences are not expected
to reverse in the foreseeable future. |
|
|
| 17.
CONTINGENCIES & COMMITMENTS |
|
| The
company has given undertakings for the payment of Rs. 3 million (1996: Rs. 63
million) approximately for the |
|
| retirement
of L/C documents on behalf of lessees. |
|
|
| 18. FIGURES |
|
| -
have been rounded off to the nearest thousand rupees. |
|
| -
of the previous year have been rearranged, wherever necessary, for purposes
of comparison. |
|
|
|
| PATTERN
OF SHAREHOLDING |
|
| As
At June 30, 1887 |
|
|
|
| Number of |
|
Share Holding |
Total |
|
| Shareholders |
From |
To |
Shares Held |
|
| ---------- |
---------- |
---------- |
---------- |
|
|
| 76 |
1 |
100 |
7600 |
|
| 367 |
101 |
500 |
165200 |
|
| 671 |
501 |
1000 |
660800 |
|
| 378 |
1001 |
5000 |
1015400 |
|
| 95 |
5001 |
10000 |
786200 |
|
| 90 |
10001 |
Above |
17364800 |
|
| ---------- |
---------- |
---------- |
---------- |
|
|
| 1677 |
|
Totals |
20000000 |
|
| ========== |
========== |
========== |
========== |
|
|
|
|
| Categories of |
|
Number of |
Shares |
Percentage |
|
| Share Holders |
|
Share Holders |
Held |
|
|
|
|
|
| Individuals |
|
1630 |
4894100 |
24.47 |
|
| Investment
Companies |
9 |
280900 |
1.40 |
|
| Insurance
Companies |
5 |
563400 |
2.82 |
|
| Joint
Stock Companies |
14 |
260100 |
1.30 |
|
| Financial
Institutions |
5 |
2034900 |
10.17 |
|
| Modaraba
Companies |
4 |
32700 |
0.16 |
|
| Foreign
Companies |
8 |
1192900 |
5.96 |
|
| Charitable
Trusts |
2 |
10741000 |
53.71 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
|
| Total |
|
1677 |
20000000 |
100.00 |
|
| ========== |
========== |
========== |
========== |
========== |
|
|
|
| FINANCIAL HIGHLIGHTS |
|
| (1993-1997) |
|
|
(Rupees in thousands) |
|
|
Dec |
Dec |
Jun |
Jun |
June |
|
|
|
93 |
94 |
95 |
96 |
97 |
|
|
(2 Months) |
(Full Year) |
(6 Months) |
(Full Year) |
(Full year) |
|
|
Audited |
Audited |
Audited |
Audited |
Audited |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| BALANCE SHEET |
|
|
|
| Authorised
Capital |
100,000 |
100,000 |
500,000 |
500,000 |
500,000 |
|
| Paid-up
Capital |
100,000 |
100,000 |
100,000 |
200,000 |
200,000 |
|
| Total Equity |
|
106510.00 |
164,075 |
194,004 |
349742.00 |
469,816 |
|
| Allowance
For Potential Lease Losses |
2,686 |
11,313 |
14,067 |
31,287 |
74,670 |
|
| .Long
Term Liabilities |
318,111 |
567,655 |
430,123 |
1,238,570 |
2,118,780 |
|
| Current
Liabilities |
12,097 |
337,045 |
616,539 |
1,119,343 |
1,355,163 |
|
| Net
Investment in Leases |
203,251 |
769,152 |
896,023 |
1,915,476 |
2,905,470 |
|
| Current
Assets |
271,689 |
470560.00 |
653,884 |
1,302,790 |
1,797,060 |
|
| Total Assets |
|
439,404 |
1,080,088 |
1,310,733 |
2,738,942 |
4,018,429 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| INCOME
STATEMENT |
|
| Lease Income |
|
6,784 |
115,253 |
86,728 |
312,582 |
511,128 |
|
| Total Revenue |
|
14,675 |
160,736 |
114,480 |
379,289 |
630,976 |
|
| Financial
Expenses |
1,426 |
83,549 |
67,343 |
236,489 |
420,440 |
|
| Income
Before Taxation |
6,510 |
58,414 |
37,029 |
100,238 |
135,075 |
|
| Net Income |
|
6,510 |
57,565 |
29,929 |
95,738 |
120,075 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| FINANCIAL
RATIOS |
|
|
|
| *Earnings
per Share |
3.91 |
5.84 |
7.41 |
6.68 |
6.75 |
|
| *Return
on Equity |
36.67% |
43.18% |
41.36% |
36.87% |
32.96% |
|
| Leverage |
|
3.13 |
5.58 |
5.47 |
6.83 |
7.55 |
|
|
| *
Calculated on profit before taxation and on an annualised basis. |
|
|
| BRANCH
NET WORK |
|
|
|
| KARACHI |
3rd Floor AWT Plaza. |
|
|
I.I. Chundrigar Road,
Karachi. |
|
|
Telephone: (021)
2634614-5, 2627347-8 |
|
|
Fax: (021) 2630338 |
|
|
| LAHORE |
4 Corps. Garrison Mess, |
|
|
Tufail Road, Lahore
Cantt., Lahore |
|
|
Tele phone: (042)
6673384, 6667784-5 |
|
|
Fax: (042) 6673385 |
|
|
| ISLAMABAD |
2nd Floor, All Plaza,
1-E, |
|
|
Jinnah Avenue, Islamabad. |
|
|
Tel: (051) 822037-279565 |
|
|
Fax: (051) 821399 |
|
|
| PESHAWAR |
32, The Mall, Peshawar. |
|
|
Tel: (091) 279497~
0391-376918 |
|
|
Fax: (091) 275423 |
|
|
| LIAISON
OFFICES |
|
|
P-14, Platinum Market |
|
|
Kotwali Road, Faisalabad |
|
|
Tel: (041) 601595 - 7 |
|
|
Fax: (041) 645801 |
|
|
|
Ist Floor. AI-Azhar Plaza |
|
|
Ghalla Mandi G.T. Road |
|
|
Gujranwala |
|
|
Tel: (0431) 266324 |
|
|
Fax: (0431) 266325 |
|
|
|
|
|
|
|
|
|
|
|
|
