| Crescent Leasing Corporation Limited |
|
|
|
|
|
|
|
| ANNUAL
REPORT 1997 |
|
|
| CONTENTS |
|
| Company
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 |
|
|
|
|
|
| COMPANY
INFORMATION |
|
| Board
Of Directors |
|
|
| Mr.
Aftab Ahmed Khan |
|
| Chairman |
|
|
| Mr.
Javed A. Callea |
|
| Chief
Executive |
|
|
| Mr.
Altar M. Saleem |
Mr. Rashid Ahmed |
|
| Mr.
Manzur-uI-Haq |
Mr. Shahid Ghaffar |
|
| Mr.
Nessar Ahmed |
Mr. Shams-ul-lslam |
|
|
| Corporate
Secretary |
|
| Mr.
Rashid Sadiq |
|
| Mr.
Zaheer A. Sheikh |
|
|
| Auditors |
|
| Khalid
Majid Husain Rehman & Co. |
|
| Chartered
Accountants |
|
|
| Legal
Advisors |
|
| Cornelius
Lane & Mufti |
|
| Advocates
& Solicitors |
|
|
| Registered
and Share Transfer Office |
|
| 83-Babar
Block, New Garden Town, Lahore |
|
| Phone:
042 - 588-1974 & 75 Fax; 042 - 588-1976 |
|
|
| Head Office |
|
| B-801
& 802, 8th Floor, Lakson Square, Bldg. # 3, Satwar Shaheed Road, Karachi. |
|
| Phone:
021 - 566-1938, 48 & 58 Fax: 021 - 566-1988 |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
| Notice
is hereby given that the 10th Annual General Meeting of the shareholders |
|
| CRESCENT
LEASING CORPORATION LIMITED will be held on Monday, December 22, 1997, |
|
| at
3.30 p.m. at Registered Office, 83-Babar Block, New Garden Town, Lahore to |
|
| transact
the following business: |
|
|
| ORDINARY
BUSINESS |
|
| 1.
To receive, consider and adopt the audited accounts of the company for the
year |
|
| ended
June 30, 1997 together with Directors' and Auditors' Reports thereon. |
|
|
| 2.
To approve, as recommended by the Directors, the payment of Cash Dividend @
15% |
|
|
|
|
| i.e.
Rs. 1.50 per share for the year ended June 30, 1997. |
|
|
| 3.
To appoint Auditors (for the year ending June 30, 1998) and fix their
remuneration. |
|
| The
present Auditors M/S Khalid Majid Husain Rahman, Chartered Accountants, |
|
| retire
and being eligible, offer themselves for re-appointment. |
|
|
| BOOK CLOSURE |
|
| The
share transfer books of the company will remain closed from December 17, 1997
to |
|
| December
23, 1997 (both days inclusive). Transfer received in order at the Registered |
|
|
| Office
by the close of business hours on December 16, 1997 will be treated in time |
|
| for
the entitlement of cash dividend. |
|
|
BY ORDER OF THE BOARD |
|
|
Zaheer A. Shaikh |
|
| Registered
Office: |
|
Corporate Secretary |
|
| 83-Babar
Block, New Garden Town |
|
| LAHORE. |
|
| Telephone
No. (042)5881974-75, 5839631 |
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| Fax
No. (042) 5881976 |
|
|
|
|
| Dated:
August 18, 1997. |
|
|
| NOTE: |
|
|
| 1.
A member eligible to attend and vote at this Meeting may appoint another '~ |
|
| member
as his/her proxy to attend and vote instead of him/her. |
|
|
| 2.
The instrument appointing a proxy and the power of attorney or other
authority |
|
| under
which it is signed or a notarially certified copy of the power of attorney
must |
|
| be
deposited at the registered office of the company at least 48 hours before
the |
|
| meeting.
A from of proxy is enclosed. |
|
|
| 3.
Shareholders are requested to immediately notify the change in address, if
any. |
|
|
| Your
Directors have pleasure in presenting the Audited Accounts for the period
July 1996 |
|
| to
June 1997. |
|
|
| The
financial results of the Company for the period under review are summarized
as |
|
|
|
| DIRECTORS'
REPORT |
|
|
|
For eighteen months |
|
|
1997 |
ended June '96 |
|
|
Rs. (000) |
Rs. (000) |
|
|
| Revenue |
|
97,363 |
76,907 |
|
| Expenditure |
|
59,923 |
32,586 |
|
|
| Profit
before taxation |
|
37,440 |
44,321 |
|
| Provision
for taxation |
|
1,032 |
653 |
|
|
---------- |
---------- |
|
| Profit
after taxation |
|
36,408 |
43,669 |
|
|
| Unappropriated
profit brought forward |
15,945 |
8,345 |
|
|
---------- |
---------- |
|
| Profit
available for appropriation |
52,353 |
52,014 |
|
|
|
|
| Appropriations |
|
|
|
| Transfer
to reserve under NBFI regulations |
7,282 |
8,734 |
|
| Transfer
to general reserve |
2,647 |
4,835 |
|
| Proposed
Dividend @ 15% |
|
22,500 |
22,500 |
|
|
---------- |
---------- |
|
|
32,429 |
36,069 |
|
|
---------- |
---------- |
|
| Unappropriated
profit carried forward |
19,924 |
15,945 |
|
|
========== |
========== |
|
| OPERATING
RESULTS |
|
| By
the grace of Almighty Allah the company made substantial progress, during the |
|
| period
under review, to show an improved all round performance. The income from |
|
| lease
operations was Rs. 89.38 million, during the period, 1996: Rs. 61.24 million
(for |
|
| 18
months). With increased investment in lease finance, the Net Investment in
Leases |
|
| rose
from Rs. 383 million to Rs. 512 million, during the last twelve months, thus |
|
| improving
the bottom line, and resulting in a figure of Rs. 36.4 million as profit
after tax. |
|
|
| As
a percentage, the net profit has shown an increase of around 25 percent,
1996: |
|
| Rs.
43.67 million (18 months). The company has utilized a long-term loan of Rs. 5
million |
|
| from
Commonwealth Development Corporation. The financial charges, with |
|
| increased
gearing, are 49% of the total income. EPS is Rs. 2.43. |
|
|
| The
Company's progress is attributable to the pursuit of an effective strategy
which |
|
| has
resulted in a well diversified lease portfolio. The company pursuing a policy
of |
|
| judicious
selection of sectors and clients has penetrated the niche market i,e., small |
|
| to
medium sized businesses. There is a balanced i.e exposure, with a maximum |
|
| exposure
of 18% in any one sector. Major concentration by type of asset is in Plant |
|
| &
Machinery which is 65 percent of assets financed by the company. The recovery |
|
| position
of the company is by the grace of Allah over ninety five percent. |
|
|
| REVIEW OF OPERATIONS |
|
|
| The
nation has witnessed significant events during the last eight months. The
political |
|
| and
economic developments have been quite swift. It has been a lacklustre year |
|
| which
witnessed a significant deceleration in growth and a severe strain on all
major |
|
| macro-economic
indicators. |
|
|
|
| The
immediate problems are the huge fiscal deficit, the declining foreign
exchange |
|
| reserves
and low domestic savings. On account of inadequate domestic savings, not |
|
| only
investment has been constrained but the country's dependence on external |
|
| resources
has taken a new dimension, which is bordering on high risk. |
|
|
|
|
| Leasing
sector in Pakistan is facing difficulty for a variety of reasons, in
mobilizing |
|
| long-term
funds. This has and is likely to continue to impede the growth rate of
leasing |
|
| companies.
For the medium sized lessors the issue of matching funds is more difficult.
As |
|
| a
result of such happenings margins have fallen. The search for performing
clients has |
|
| accentuated.
Good performers have also shrunk in numbers. |
|
|
|
| Against
this backdrop lease financing activities, dependent on industrial and
commercial |
|
| growth,
depleted due to a combination of factors of which the significant ones are
the |
|
| deterioration
in the law and order situation and under utilized capacity of the |
|
| manufacturing
sector, The corporate sector performance is quite discouraging. |
|
|
| Majority
of the listed companies have failed to reward the shareholders, and therefore |
|
| left
them in a state of disarray. Market capitalization, which was Rs. 355 billion
in July |
|
| 1996,
went up to Rs. 540 billion in June 1997. This situation explicates the
reasons for |
|
| uneasiness
resulting in lack of confidence in economic stability, and therefore hampers |
|
| the
investment flow from outside. |
|
|
| The
level playing field appears to get uneven. Those leasing companies who are |
|
| affiliated
with large banks continue to borrow from banks on favourable terms, while |
|
| other
independent leasing companies have a hard task to perform. It is imperative
that |
|
| the
critical factor for development of leasing industry i.e: right of lessor to
claim the |
|
| depreciation
allowance is not disturbed. This has been threatened and if so will be a |
|
| severe
set back to the industry. Simultaneously, the present legal system for
repossession |
|
| of
leased assets requires an immediate change, whereby lessors right to
repossess the |
|
| lease
asset should be fully respected and enforced. The issue of tax-free transfer
of |
|
| assets
under sale and lease back arrangement must be resolved, keeping the substance |
|
| of
such transactions in focus. |
|
|
| To
top it all the confidence spurring indicators for stable macro economic
environment: |
|
| low
inflation, currency stability and balance of payments are not encouraging,
thus |
|
|
| hampering
the revival of investment activities and in turn impacting the capital |
|
| formation
activities in the country. The current economic situation demands both an |
|
| improved
diagnosis of the key problem areas as well as articulating a set of policies |
|
| designed
to achieve the short and medium term objectives of growth with stabilization |
|
| in
an environment of highly constrained financial resources. |
|
|
| FUTURE
OUTLOOK |
|
| The
Economic Reform Package of the present government aims at boosting the |
|
| industrial
activities. Nevertheless, the government will have to give proper attention
on |
|
| removing
infrastructure inadequacies. With further liberalization and efforts by the |
|
| government
to improve business environment, there will be increased competition. The |
|
| financial
sector is likely to see renewed activities and in tandem the leasing
companies |
|
| will
have to offer new products and broaden the sources of financial instruments
to |
|
| access fund. |
|
|
| Creslease
has now attained a position whereby it is reckoned among the first ten |
|
| companies
in the leasing sector. With improved financial strength, a respectable |
|
| balance
sheet footing and with a quality asset portfolio, Creslease has promising |
|
| opportunities
for mobilizing funds. We are in constant touch with multilateral agencies |
|
| for
obtaining long-term funds. The response is positive and we are quite hopeful
of a |
|
| positive
outcome. |
|
|
| We
are hopeful that the coming months will see a significant improvement in key |
|
| economic
indicators. With accelerated economic growth and a positive business i |
|
| environment,
Creslease is poised to attain new heights, Our long-term view is to |
|
| balance
the interest of shareholders and clients. We are constantly endeavouring |
|
| to
improve shareholders' value. The Directors recommend a cash dividend of |
|
| Rs.
1.50 per share for the year ended June 30, 1997. |
|
|
| The
Board wish to record their appreciation of the valuable contribution of |
|
| Mr.
Stephen Potter and Mr. A.K.M. Sayeed during their term. The board welcomes |
|
| Mr.
Shams-ul-lslam and Mr. Shahid Ghaffar on the Board. |
|
|
| ACKNOWLEDGMENT |
|
| The
Board acknowledges the support of the regulatory authorities, bankers,
lending |
|
| institutions
and Commonwealth Development Corporation. The board wishes to place |
|
| on
record its appreciation of the hard work and dedication shown by the company |
|
| personnel. |
|
|
| AUDITORS |
|
| The
auditors, Khalid Majid Husain Rahman, Chartered Accountants retire and being |
|
| eligible,
offer themselves for re-appointment. |
|
|
| PATTERN
OF SHAREHOLDING |
|
| The
pattern of shareholding as on June 30, 1997, is annexed to this report. |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| We
have audited the annexed balance sheet of Crescent Leasing Corporation
Limited |
|
| as
at June 30th, 1997 and the related profit and loss account and statement of |
|
| changes
in financial position, together with the notes forming part thereof, for the
year |
|
| then
ended and we state that we have obtained all the information and explanations |
|
| which
to the best of our knowledge and belief were necessary for the 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 0 |
|
| affairs
as at June 30th, 1997 and of the profit and the changes in financial
position ~1 |
|
| 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. |
|
|
| Karachi:
August 19,1997 |
|
KHALID MAJID HUSAIN
RAHMAN |
|
|
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1997 |
|
1997 |
1996 |
|
|
Note |
Rupees |
Rupees |
|
| SHARE
CAPITAL AND RESERVES |
|
|
| Authorised
Capital |
|
| 30,000,000
ordinary shares of Rs. 10/- each |
|
300,000,000 |
200,000,000 |
|
| (1996:
20,000,000) |
|
========== |
========== |
|
|
| Issued, subscribed and
paid-up capital |
3 |
150,000,000 |
150,000,000 |
|
|
| Capital
reserve |
|
| Premium
on issue of right shares |
|
56,250,000 |
56,250,000 |
|
|
| Revenue
reserves |
|
4 |
48,954,041 |
35,045,985 |
|
|
----------- |
----------- |
|
|
255,204,041 |
241,295,985 |
|
|
| LONG-TERM
FINANCES |
|
5 |
254,447,627 |
152,465,773 |
|
|
|
|
| LIABILITIES
AGAINST ASSETS SUBJECT |
|
|
|
| TO
FINANCE LEASE |
|
6 |
88,850 |
559,640 |
|
|
| LONG-TERM
DEPOSITS |
|
7 |
47,676,392 |
33,175,109 |
|
|
| CURRENT
LIABILITIES |
|
|
| Current
maturity of long-term liabilities |
8 |
61,038,525 |
19,490,883 |
|
| Certificates
of investment |
|
9 |
10,000,000 |
- |
|
| Short-term
finances |
|
10 |
22,929,237 |
3,700,094 |
|
| Creditors,
accrued and other liabilities |
11 |
36,679,210 |
13,418,789 |
|
| Proposed
dividend |
|
|
22,500,000 |
22,500,000' |
|
|
|
---------- |
---------- |
|
|
|
153,146,972 |
59,109,766 |
|
| COMMITMENTS |
|
12 |
|
|
---------- |
---------- |
|
|
710,563,882 |
486,606,273 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these financial statements. |
|
|
| TANGIBLE
FIXED ASSETS |
|
|
| Operating
assets |
|
13 |
16,109,583 |
16,659,487 |
|
| Assets
subject to Finance leases |
|
14 |
378,017 |
995,435 |
|
|
---------- |
---------- |
|
|
16,487,600 |
17,654,922 |
|
|
| NET
INVESTMENT IN LEASES |
|
16 |
346,069,343 |
272,037,673 |
|
|
|
|
|
|
| LONG
TERM INVESTMENTS |
|
17 |
4,125,000 |
- |
|
|
|
|
|
|
|
|
|
| LONG-TERM DEPOSITS AND |
DEFERRED COST |
|
18 |
23,418,217 |
17,062,436 |
|
|
|
|
|
| LONG-TERM
LOAN |
|
19 |
1,699,990 |
499,994 |
|
|
|
| CURRENT ASSETS |
|
| Current
maturity of net investment in leases |
16.1 |
164,914,537 |
110,738,371 |
|
| Investments |
|
20 |
55,435,000 |
40,935,000 |
|
| Advances, deposits,
prepayments and |
|
| other
receivables |
|
21 |
25,094,955 |
14,876,871 |
|
| Cash
and bank balances |
|
22 |
73,319,240 |
12,801,006 |
|
|
---------- |
---------- |
|
|
318,763,732 |
179,351,248 |
|
|
---------- |
---------- |
|
|
710,563,882 |
486,606,273 |
|
|
========== |
========== |
|
|
|
|
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE |
|
|
|
| YEAR
ENDED JUNE 30, 1997 |
|
|
|
|
|
|
|
|
For the eighteen |
|
|
|
months ended |
|
|
|
June |
|
|
|
199? |
1996 |
|
|
Note |
Rupees |
Rupees |
|
|
| Income
from lease operations |
|
89,380,983 |
61,236,959 |
|
| Other income |
|
23 |
7,982,090 |
15,670,487 |
|
|
|
---------- |
---------- |
|
|
97,363,073 |
76,907,446 |
|
|
| Administrative
and operating expenses |
|
24 |
10,973,688 |
13,656,391 |
|
| Financial
charges |
|
25 |
47,984,514 |
17,876,396 |
|
| Provision
for potential lease losses |
|
473,187 |
325,232 |
|
| Amortization
of deferred cost |
|
491,305 |
727,639 |
|
|
|
---------- |
---------- |
|
|
59,922,694 |
32,585,658 |
|
|
---------- |
---------- |
|
| Operating
profit |
|
37,440,379 |
44,321,788 |
|
| Taxation |
|
27 |
1,032,323 |
652,751 |
|
| Profit
after taxation |
|
---------- |
---------- |
|
|
36,408,056 |
43,669,037 |
|
|
| Unappropriated
profit brought forward |
|
15,945,174 |
8,344,899 |
|
|
---------- |
---------- |
|
|
52,353,230 |
52,013,936 |
|
| Appropriations: |
|
| Transfer
to reserve under NBFI regulations |
|
72,816,111 |
8,733,807 |
|
| Transfer
to general reserve |
|
2,646,892 |
4,834,955 |
|
| Proposed
Dividend |
|
22,500,000 |
22,500,000 |
|
|
---------- |
---------- |
|
|
32,428,503 |
36,068,762 |
|
|
|
---------- |
---------- |
|
| Unappropriated
profit carried forward |
|
19,924,727 |
15,945,174 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these financial statements. |
|
|
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| (CASH
FLOW STATEMENT) FOR THE YEAR ENDED JUNE 30, 1997 |
For the |
|
|
|
months ended |
|
|
|
June |
|
|
1997 |
1996 |
|
|
|
Rupees |
Rupees |
|
|
|
|
| Cash flows from operating
activities |
|
|
|
| Operating
profit before taxation |
|
37,440,379 |
44,321,788 |
|
|
| Adjustment
for: |
|
| Deferred
cost amortized |
|
491,305 |
727,639 |
|
| Depreciation |
|
2,077,114 |
2,460,683 |
|
| Provision
for doubtful debts |
|
473,187 |
325,232 |
|
| (gain)/Loss
on disposal of fixed assets |
|
(200) |
159,443 |
|
|
---------- |
---------- |
|
| Operating
profit before working capital changes |
|
40,481,785 |
47,994,785 |
|
|
| Increase
in net investment in leases |
|
(128,681,023) |
(245,337,734) |
|
| Increase
in long-term deposits from customers |
|
12,682,157 |
21,020,261 |
|
| Increase
in creditors accured and other liabilities |
23,190,059 |
11,802,478 |
|
| Increase
in advances, deposits, prepayments and other |
|
|
| receivables |
|
(11,100,213) |
(10,280,794) |
|
|
---------- |
---------- |
|
| Cash
used in operations |
|
(63,427,235) |
(174,801,004) |
|
| Income
tax (paid) / recovered |
|
|
449,806 |
(2,478,406) |
|
|
|
---------- |
---------- |
|
| Net
cash used in operating activities |
|
(62,977,429) |
(177,279,410) |
|
|
| Cash
flows from investing activities |
|
| Purchase
of fixed assets |
|
(1,262,760) |
(19,639,433) |
|
| Long
term investments |
|
(4,125,000) |
-- |
|
| Proceed
from sale of fixed assets |
|
353,168 |
1,932,665 |
|
| Long-term
loans -net |
|
(1,799,996) |
(470,255) |
|
| Addition
in long term deposits and deferred cost |
|
(6,847,086) |
(16,736,538) |
|
|
---------- |
---------- |
|
| Net
cash used in investing activities |
|
(13,681,674) |
(34,913,561) |
|
|
|
|
| Cash
flows from financing activities |
|
|
|
| Proceeds
from issue of share capital |
|
- |
75,000,000 |
|
| Share
Premium |
|
- |
56,250,000 |
|
| Proceeds
from long-term finances |
|
172,782,443 |
164,893,317 |
|
| Repayment
of long-term finances |
|
(27,364,949) |
(10,237,192) |
|
| Proceeds
from certificates of investment |
|
10,000,000 |
- |
|
| (Repayment)/proceeds
of short-term finances |
|
19,229,143 |
(31,299,906) |
|
| Proceeds
from lease obligations |
|
- |
1,303,800 |
|
| Repayment
of lease obligations |
|
(539,662) |
(350,725) |
|
| Payment
of dividend |
|
(22,429,638) |
- |
|
|
---------- |
---------- |
|
| Net
cash flows from financing activities |
|
151,677,337 |
255,559,294 |
|
|
---------- |
---------- |
|
| Net
increase in cash and cash equivalents |
|
75,018,234 |
43,366,323 |
|
| Cash and cash
equivalents at beginning of the year |
53,736,006 |
10,369,683 |
|
|
---------- |
---------- |
|
| Cash
and cash equivalents at the end of the year (Note A) |
128,754,240 |
53,736,006 |
|
|
========== |
========== |
|
| Note
A. Cash and cash equivalents at the end of the year |
|
|
| Cash
and bank balances |
|
73,319,240 |
12,801,006 |
|
| Investments |
|
55,435,000 |
40,935,000 |
|
|
---------- |
---------- |
|
|
128,754,240 |
53,736,006 |
|
|
========== |
========== |
|
| NOTES
TO THE FINANCIAL STATEMENTS |
|
| FOR
THE EAR ENDED JUNE 30, 1997 |
|
|
|
| 1.
LEGAL STATUS AND NATURE OF BUSINESS |
|
| The
company was incorporated in Pakistan as a public limited company on April 7, |
|
| 1987.
The company commenced commercial operations in August 1989, and is |
|
| listed
on all Stock Exchanges in Pakistan. Its prime business is leasing, and it is |
|
| classified
as a Non-Banking Financial Institution (NBFI) by the State Bank of Pakistan. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
| 2.1
Accounting convention |
|
| These
financial statements have been prepared under the historical cost |
|
| convention. |
|
|
|
| 2.2
Fixed Assets and Depreciation |
|
| (a) Owned |
|
| Fixed
assets are stated at cost less depreciation to date. Depreciation is |
|
| charged
to income by applying reducing balance method. Full year's |
|
| depreciation
is charged on acquisitions during the year while no |
|
| depreciation
is charged on fixed assets disposed off during the year. |
|
|
| Normal
repairs and maintenance are charged to income as and when |
|
| incurred.
Major renewals and betterments are capitalized. |
|
|
| Gains
and losses on disposal of fixed assets, if any, are included in income |
|
| currently. |
|
|
| (b)
Assets Subject to Finance Leases |
|
| These
are stated at the lower of present value of minimum lease payments |
|
| and
fair value of assets acquired on lease. Assets so acquired are |
|
| depreciated
over the shorter of the lease term or its useful life. Financial |
|
| charges
is allocated to accounting periods in a manner so as to |
|
| produce
a constant periodic rate of charge on the outstanding liability. |
|
|
| 2.3
Deferred Cost and Amortization |
|
| Deferred
costs are written off during a period not exceeding five years |
|
| commencing
from the year such costs are incurred. |
|
|
| 2.4
Investments |
|
| Long-Term
Investments |
|
| Long-term
Investments are stated at cost and carrying amount is reduced to |
|
| recognize
the decline other than temporary in the value of investments. |
|
|
| Short-Term
Investments |
|
| Investments
are valued at the lower of cost and market value determined on an |
|
| aggregate
portfolio basis. |
|
|
| 2.5 Taxation |
|
| (a) Current |
|
| Provision
is made on taxable income at the prevailing rates of taxation |
|
| after
taking into account tax credits available, if any. |
|
| (b) Deferred |
|
| The
company accounts for deferred taxation on all major timing differences |
|
| likely
to reverse in the foreseeable future, using the liability method. |
|
|
| 2.6
Foreign Exchange Transactions |
|
| Transactions
in foreign currencies are accounted for in Rupees at the rate of |
|
| exchange
ruling on the date of transaction. Assets and liabilities in foreign |
|
| currencies
are converted into Rupees at the rate of exchange at the balance |
|
| sheet
date. Net exchange differences arising due to hedging mechanism are |
|
| accounted
for as deferred revenue/costs as the case may be and are |
|
| credited/amortized
to income over the term of the underlying transactions. |
|
|
| 2.7
Off-Setting |
|
|
|
| A
financial asset and a financial liability is off set and the net amount
reported |
|
| in
the balance sheet if the Company has a legal enforceable right to set-off the |
|
| transactions
and also intents either to settle on a net basis or to realise the asset |
|
| and
settle the liability simultaneously Corresponding income on the asset and |
|
| charge
on the liability is also netted off. |
|
|
|
|
| 2.8
Employees' Retirement Benefits |
|
| The
company operates a contributory provident fund for all its confirmed |
|
| employees
and contributions are made by the company and the employees in |
|
| accordance
with the fund rules. |
|
|
| 2.9 Recognition of Lease Income |
|
| The
company follows the financing method in accounting for recognition of |
|
| lease
income. Accordingly, at the time of commencement of lease, the total |
|
| unearned
lease finance income consists of the excess of aggregate lease |
|
| contracts
receivable plus any residual value over the cost of the leased assets. |
|
| This
finance income is then allocated over the lease term on a pattern ~J~~~ |
|
| reflecting
a constant periodic return on the company's net investment |
|
| outstanding
in respect of the lease. |
|
|
| Front
end, commitment and other fees, if any, are taken to income when |
|
| realized. |
|
|
| 3.
ISSUED, SUBSCRIBED AND PAID-UP CAPITAL |
|
|
| Ordinary
shares of Rupees 10/- each, fully paid in cash. |
|
|
| 1996 |
997 |
|
1997 |
1996 |
|
| Number |
Number |
|
Rupees |
Rupees |
|
|
| 7,500,000 |
150,000,000 |
At beginning of the year |
150,000,000 |
75,000,000 |
|
|
|
Issued during the |
|
|
| 7,500,000 |
- |
year |
|
- |
75,000,000 |
|
| ---------- |
---------- |
|
---------- |
---------- |
|
| 15,000,000 |
15,000,000 |
|
150,000,000 |
150,000,000 |
|
| ========== |
========== |
|
========== |
========== |
|
|
| 4.
REVENUE RESERVES |
|
|
|
| Reserve
under NBFI regulations |
|
| Balance
at beginning of the year |
|
11,511,141 |
2,777,334 |
|
| Add:
Transfers during the year/period |
|
7,281,611 |
8,733,807 |
|
|
|
|
---------- |
---------- |
|
|
18,792,752 |
11,511,141 |
|
| General
reserve |
|
|
|
| For
doubtful debts (Note 4.1) |
|
| Balance
at beginning of the year |
|
7,589,670 |
2,754,715i |
|
| Add:
Transfer during the year/period |
|
2,646,892 |
4,834,955 |
|
|
---------- |
---------- |
|
|
10,236,562 |
7,589,670 |
|
|
19,924,727 |
15,945,174 |
|
|
---------- |
---------- |
|
| Unappropriated
profit |
|
48,954, 041 |
35,045,985 |
|
|
========== |
========== |
|
|
| 4.1
As a prudent business practice, amount is set aside out of profits to meet |
|
| future
business losses, if any. |
|
|
| 5.
LONG-TERM FINANCES-Secured |
|
|
|
1997 |
1996 |
|
|
Rupees |
Rupees |
|
|
| Foreign
currency |
|
| From
Commonwealth Development |
|
| Corporation
(Note 5.1 ) |
|
310,991,542 |
164,893,317 |
|
|
| Local
currency |
|
|
|
| From
a development financial institution |
|
- |
664,739 |
|
| From
a modaraba |
|
- |
15,992 |
|
|
---------- |
---------- |
|
|
- |
680,731 |
|
|
---------- |
---------- |
|
|
310,991,542 |
165,574,048 |
|
| Less: Current
maturity of long-term finances (Note 8) |
56,543,915 |
13,108,275 |
|
|
---------- |
---------- |
|
|
254,447,627 |
152,465,773 |
|
|
========== |
========== |
|
|
| 5.1
This represents Pounds Sterling 5.000 million loan obtained from
Commonwealth |
|
| Development
Corporation, UK. The loan is repayable in twelve equal semi-annual |
|
| installments
commenced from May 1997. The rate of interest is 11.5% per annum |
|
| and
is secured by floating pari-passu charge, through hypothecation, over certain |
|
| present
assets and first floating charge over certain present and all future assets
of |
|
| the company. |
|
|
| 6.
LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASES |
|
|
|
|
|
1997 |
1996 |
|
|
Rupees |
Rupees |
|
|
| Minimum
lease payments (Note 6.1) |
|
448,819 |
1,133,990 |
|
| Less:
Financial charges not yet due |
|
35,406 |
180,915 |
|
|
---------- |
---------- |
|
|
413,413 |
953,o75 |
|
| Less:
Current maturity of liabilities against |
|
| assets
subject to finance leases (Note 8) |
|
324,563 |
393,435 |
|
|
---------- |
---------- |
|
|
88,850 |
559,640 |
|
|
========== |
========== |
|
|
|
| 6.1
The company has entered into lease agreements with leasing companies for |
|
| financing
to acquire motor vehicles and office equipment. Payments under these |
|
| agreements
include financial charges ranging from 20% to 21.5% per annum, |
|
| which
are used as discounting factors. The future payments due are as follows: |
|
|
| Year ending |
|
1997 |
1996 |
|
|
Rupees |
Rupees |
|
|
| June
30, 1997 |
|
- |
526,620 |
|
|
| June
30, 1998 |
|
358,969 |
439,084 |
|
| June
30, 1999 |
|
89,850 |
168,286 |
|
|
---------- |
---------- |
|
|
448,819 |
1,133,990 |
|
|
========== |
========== |
|
| 7.
LONG-TERM DEPOSITS |
|
| Security
deposits on leases (Note 7.1) |
|
51,846,439 |
39,164,282 |
|
| Less:
Current maturity of long-term |
|
|
|
| deposits
(Note 8) |
|
4,170,047 |
5,989,173 |
|
|
|
---------- |
---------- |
|
|
47,676,392 |
33,175,109 |
|
|
|
========== |
========== |
|
|
|
|
|
| 7.1
These represent security deposits received against lease contracts and are |
|
| repayable/adjustable
at the expiry/termination of the respective leases. |
|
|
| 8. CURRENT MATURITY OF
LONG-TERM LIABILITIES |
|
|
|
| Long-term
finances (Note 5) |
|
56,543,915 |
13,108,275 |
|
| Liabilities
against assets subject to finance |
|
|
|
| leases
(Note 6) |
|
324,563 |
393,435 |
|
| Security
deposits on leases (Note 7) |
|
4, 170,047 |
5,989,173 |
|
|
---------- |
---------- |
|
|
61,038,525 |
19,490,883 |
|
|
========== |
========== |
|
|
| 9.
CERTIFICATES OF INVESTMENT |
|
|
| The
company has a scheme of registered Certificate of Investment (COl) for |
|
| resource
mobilization as per permission from Corporate Law Authority, Government |
|
| of
Pakistan. The term of these certificates of investment range from three
months to |
|
| six
months and the return is paid on a profit and loss sharing basis. |
|
|
| 10.
SHORT-TERM FINANCE - Secured |
|
|
| From
a commercial bank under mark-up |
|
| arrangement
(secured) |
|
2,929,237 |
3,700,094 |
|
| From
an investment bank (un-secured) |
|
20,000,000 |
- |
|
|
---------- |
---------- |
|
|
22,929,237 |
3,700,094 |
|
|
========== |
========== |
|
|
| This
represents finance facility sanctioned upto Rs. 10.000 million on yearly
renewal |
|
| basis
at a mark-up rate of paisas 0.046 per day and is secured by way of deposit of |
|
| Government
securities included in note 20 and hypothecation of lease rentals. |
|
|
| 11.
CREDITORS, ACCRUED AND |
|
|
| OTHER LIABILITIES |
|
|
|
|
| Advance
lease rentals |
|
1,044,721 |
1,178,265 |
|
| Accrued
liabilities |
|
1,465,210 |
1,476,776 |
|
| Mark-up
payable o~ secured finances |
|
32,116,934 |
9,505,388 |
|
| Mark-up
payable on un-secured finances |
|
963,232 |
- |
|
| Cheques
issued but not presented |
|
- |
965,015 |
|
| Excise duty |
|
203,947 |
- |
|
| Unclaimed
dividend |
|
70,362 |
- |
|
| Other
liabilities |
|
814,804 |
293,345 |
|
|
---------- |
---------- |
|
|
36,679,210 |
13,418,789 |
|
|
========== |
========== |
|
| 12.
COMMITMENTS |
|
|
| Lease
proposals approved Rupees 31.000 million (1996: Rupees 30.000 million) |
|
|
| 13.
OPERATING ASSETS |
|
|
|
Cost as at |
Additions/ |
Cost |
Accumulated |
Written down |
Depreciation |
Depreciation |
|
|
July 1, |
(deletions) |
as at |
depreciation |
value as at |
for |
rate |
|
|
1996 |
|
June 30, |
as at June 30, |
June 30, |
the year |
% |
|
|
1997 |
1997 |
1997 |
|
|
Rupees |
|
|
| Office
premises |
11,809,442 |
77,385 |
11,886,827 |
1,342,392 |
10,544,435 |
554,970 |
5 |
|
| Furniture
& fixtures |
1,014,461 |
39,600 |
1,054,061 |
305,982 |
748,079 |
132,014 |
15 |
|
|
|
|
|
|
| Motor
vehicles |
3,574,300 |
308,100 |
3,628,900 |
1,425,144 |
2,203,756 |
550,939 |
20 |
|
|
|
(253,500) |
|
|
|
| Office
equipment |
2,743,240 |
603,425 |
3,346,665 |
992,940 |
2,353,725 |
415,363 |
15 |
|
|
|
|
|
|
|
| Computer software |
102,500 |
234,250 |
336,750 |
77,162 |
259,588 |
45,810 |
15 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| 1997 |
|
19,243,943 |
1,262,760 |
20,253,203 |
4,143,620 |
16,109,583 |
1,699,096 |
|
|
|
(253,500) |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| 1996 |
|
3,864,490 |
18,335,633 |
19,243,943 |
2,584,456 |
16,659,487 |
2,152,318 |
|
|
(2,956,180) |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
| 14.
ASSETS SUBJECT TO FINANCE LEASES |
|
|
|
Cost as at |
Additions/ |
Cost |
Accumulated |
Written down |
Depreciation |
Depreciation |
|
|
|
July 1, |
(deletions) |
as at |
depreciation |
value as at |
for |
rate |
|
|
1996 |
|
June 30, |
as at June 30, |
June 30, |
the year |
% |
|
|
1997 |
1997 |
1997 |
|
|
Rupees |
|
|
|
|
| Motor
vehicles |
753,800 |
(342,000) |
411,800 |
265,095 |
146,705 |
146,705 |
33.33 |
|
| Office
equipment |
550,000 |
- |
550,000 |
318,688 |
231,312 |
231,313 |
33.33 |
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| 1997 |
|
1,303,800 |
(342,000) |
961,800 |
583,783 |
378,017 |
378,018 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| 1996 |
|
- |
1,303,800 |
1,303,800 |
308,365 |
995,435 |
308,365 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
|
| 15.
Disposal of Fixed Assets |
|
|
| Particulars |
|
Cost |
Accumulated |
Written |
Sale |
Mode of |
|
|
depreciation |
down value |
proceeds |
disposal |
|
Said to |
|
|
Rupees |
|
| Motor
Vehicles |
|
| Suzuki
Khyber |
253,500 |
139,932 |
113,568 |
113,668 |
By
negotiation |
Syed Kaleemullah,
Karachi. |
| Suzuki
Khyber |
342,000 |
102,600 |
239,400 |
239,500 |
By
negotiation |
Mr, Dost Mohammad, Karachi. |
|
| 16.
NET INVESTMENT IN LEASES |
|
|
|
1997 |
1996 |
|
|
Rupees |
Rupees |
|
|
| Minimum
lease payments receivable |
|
603,824,422 |
465,228,372 |
|
| Add:
Residual value |
|
53,006,290 |
46,676,472 |
|
|
---------- |
---------- |
|
|
656,830,712 |
511,904,844 |
|
| Less:
Unearned finance income |
|
145,002,596 |
128,757,751 |
|
|
---------- |
---------- |
|
| Net
investment in leases |
|
511,828,116 |
383,147,093 |
|
| Less:
Current maturity of net investment |
|
| in
leases (Note 16.1) |
|
65,758,773 |
111,109,420 |
|
|
---------- |
---------- |
|
|
346,069,343 |
272,037,673 |
|
|
========== |
========== |
|
|
| 16.1
Current maturity of net investment in leases |
|
165,758,773 |
1,109,420 |
|
| Less:
Provision for potential lease losses |
|
844,236 |
371,049 |
|
|
---------- |
---------- |
|
|
164,914,537 |
10,738,371 |
|
|
========== |
========== |
|
| 17. LONG-TERM INVESTMENTS |
|
| These
represent investments in 312,500 and 100,000 ordinary shares of Rs. 10 each
of |
|
| International
Housing Finance Ltd. and Trust Investment Bank Ltd. both are associated |
|
| undertakings. |
|
|
| 18.
LONG-TERM DEPOSITS AND DEFERRED COST |
|
|
| Long-term
deposits |
|
106,130 |
140,330 |
|
| Deferred
cost (Note 18.1) |
|
23,312,087 |
16,922,106 |
|
|
---------- |
---------- |
|
|
23,418,217 |
17,062,436 |
|
|
========== |
========== |
|
|
| 18.1
Deferred Cost |
|
|
|
Opening |
Addition |
Closing |
Amortization |
Accumulated |
Unamortized |
|
|
balance |
|
balance |
during 1997 |
amortization |
balance |
|
|
Rupees |
|
| Fund |
|
| utilization |
|
7,015,592 |
9,973,473 |
26,989,065 |
3,573,453 |
4,621,284 |
22,367,781 |
|
| Others |
|
3,260,614 |
481,266 |
3,741,880 |
491,305 |
2,797,574 |
944,306 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| 1997 |
|
20,276,206 |
10,454,739 |
30,730,945 |
4,064,758 |
7,418,858 |
23,312,087 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| 1996 |
|
2,632,168 |
17,644,038 |
20,276,206 |
1,775,470 |
3,354,100 |
16,922,106 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| 18.2
Fund utilization represents expenses incidental to foreign currency finances. |
|
|
|
| 19.
LONG-TERM LOAN (un-secured) |
|
|
| Considered
good |
|
|
1997 |
1996 |
|
|
Rupees |
Rupees |
|
|
|
| Loan
to Chief Executive |
|
2,499,994 |
699,998 |
|
| Less:
Current maturity of long-term |
|
| loan
(Note21) |
|
800,004 |
200,004 |
|
|
---------- |
---------- |
|
|
1,699,990 |
499,994 |
|
|
========== |
========== |
|
|
| Outstanding
for periods exceeding three years |
|
- |
99,984 |
|
| Others |
|
2,499, 994 |
400, 010 |
|
|
| This
represents balance outstanding on house building loan, repayable by March |
|
| 1999,
at graduated scale commencing from December 1997. The loan carries 2% |
|
| service
charges. Maximum aggregate amount due from Chief Executive at the |
|
| end
of any month during the period was Rupees 2,533 million (1996: Rupees 0,800 |
|
| million). |
|
|
| 20. INVESTMENTS |
|
|
| Certificates
of investment (Note 20.1 ) |
|
31,000,000 |
31,000,000 |
|
| Government
securities (Note 20.2) |
|
24,435,000 |
9,935,000 |
|
|
---------- |
---------- |
|
|
55,435,000 |
40,935,000 |
|
|
========== |
========== |
|
|
|
|
| 20.1
These represent Certificates of Investment (COl's) of different financial
institutions |
|
| and
carry return ranging from paisas 0.051 to 0.053 per day. |
|
|
| 20.2
These represent investments in Federal Investment Bonds, as per NBFI
regulations, |
|
| issued
by the State Bank of Pakistan. |
|
|
| 21.
ADVANCES, DEPOSITS, PREPAYMENTS AND |
|
| OTHER
RECEIVABLES |
|
|
| Current
maturity of long-term loan (Note 19) |
|
800,004 |
200,004 |
|
| Advances
- Considered good |
|
| -
to staff (Note 21.1) |
|
181,345 |
178,180 |
|
| -
against expenses |
|
17,947 |
124,733 |
|
| -
against leases |
|
552,998 |
1,499,000 |
|
| - others |
|
9,250 |
9,250 |
|
| Taxation |
|
100,714 |
1,582,843 |
|
| Prepayments |
|
555,446 |
177,807 |
|
| Mark-up
due on certificates/securities |
|
21,896,877 |
6,107,111 |
|
| Other
receivables |
|
980,374 |
4,997,943 |
|
|
---------- |
---------- |
|
|
25,094,955 |
4,876,871 |
|
|
========== |
========== |
|
|
|
|
| 21.1
Aggregate amount due by the executives Rupees 0.144 million (1996: Rupees |
|
| 0.158
million). Maximum amount due from executives at the end of any month |
|
| during
the year aggregated to Rupees 0.205 million (1996: Rupees 0.198 million). |
|
|
| 22.
CASH AND BANK BALANCES |
|
|
|
|
|
1997 |
1996 |
|
|
Rupees |
Rupees |
|
|
|
|
| Cash in hand |
|
4,014 |
7,999 |
|
| Cash
with banks on |
|
| -
Current accounts (Note 22.1) |
|
265,426 |
205,722 |
|
| -
Deposit accounts (Note 22.2) |
|
72,993,962 |
12,531,447 |
|
| -
Collection accounts |
|
538 |
538 |
|
| -
Foreign currency accounts |
|
55,300 |
55,300 |
|
|
---------- |
---------- |
|
|
73,319,240 |
12,801,006 |
|
|
========== |
========== |
|
|
| 22.1
This includes Rupees 0.040 million (1996: Rupees 0.020 million) in current
account |
|
| maintained
with State Bank of Pakistan under NBFI regulations. |
|
|
|
1997 |
1996 |
|
|
Rupees |
Rupees |
|
|
| 22.2
Deposit accounts: |
|
| - Foreign currency deposits |
|
319,445,457 |
164,893,317 |
|
| - Less: Credit facility
availed (Note 22.3) |
|
246,453,900 |
152,363,775 |
|
|
|
|
72,991,557 |
12,529,542 |
|
|
| - Add: Local currency deposit |
|
2,405 |
1,905 |
|
|
|
---------- |
---------- |
|
|
72,993,962 |
12,531,447 |
|
|
========== |
========== |
|
|
|
| 22.3
The total sanctioned amount from commercial bank and investment company |
|
| under
mark-up arrangements amounted to Rupees 308 million (1996: Rupees |
|
| 129.816
million). These loans carry mark-up ranging from paisas 0.033 to 0.038 |
|
| (1996:
paisas 0.036 to 0.049) per day. The commercial bank borrowing is |
|
| repayable
in twelve semi-annual equal installments commencing from November |
|
| 1997,
whereas investment company borrowing is repayable in twelve equal semi- |
|
| annual
installment effective from May 1997. The commercial bank and investment |
|
| company
borrowing is secured against foreign currency deposits mentioned |
|
| above. |
|
|
| 23.
OTHER INCOME |
|
|
| Profit/return
earned |
|
7,811,302 |
15,326,978 |
|
| Gain
/ (Loss) on disposal of fixed assets |
|
200 |
(159,443) |
|
| Miscellaneous |
|
170,588 |
502,952 |
|
|
---------- |
---------- |
|
|
7,982,090 |
15,670,487 |
|
|
========== |
========== |
|
|
| 24.
ADMINISTRATIVE AND OPERATING EXPENSES |
|
1997 |
1996 |
|
|
Rupees |
Rupees |
|
|
| Salaries
and allowances including |
|
| Directors
remuneration (Note 26) |
|
5,433,270 |
6,381,207 |
|
| Staff
training expenses |
|
62,411 |
48,792 |
|
| Rent,
rate and taxes |
|
104,230 |
392,407 |
|
| Travelling
and conveyance |
|
431,877 |
462,399 |
|
| Vehicle
running expenses |
|
409,065 |
514,069 |
|
| Utilities |
|
181,052 |
469,363 |
|
| Telephone
and Fax |
|
229,798 |
356,398 |
|
| Insurance |
|
619,119 |
421,914 |
|
| Fee,
subscriptions and periodicals |
|
253,424 |
212,263 |
|
| Printing
and stationery |
|
202,701 |
483,955 |
|
| Postage,
stamps and telegrams |
|
99,968 |
141,749 |
|
| Legal
and professional charges |
|
105,403 |
294,798 |
|
| Auditors'
remuneration (Note 24.1 ) |
|
117,861 |
135,000 |
|
| Repairs
and maintenance |
|
372,502 |
462,735 |
|
| Depreciation |
|
2,077,114 |
2,460,683 |
|
| Advertisement |
|
126,305 |
236,999 |
|
| Miscellaneous |
|
147,588 |
181,660 |
|
|
---------- |
---------- |
|
|
10,973,688 |
13,656,391 |
|
|
========== |
========== |
|
| 24.1
Auditors' remuneration |
|
| Statutory
audit fee |
|
50,000 |
35,000 |
|
| Half
year audit fee |
|
- |
17,500 |
|
| Special
Audit fee |
|
15,000 |
15,000 |
|
| Taxation
charges |
|
45, 361 |
60,000 |
|
| Out-of-pocket
expenses |
|
7,500 |
7,500 |
|
|
---------- |
---------- |
|
|
117,861 |
135,000 |
|
|
========== |
========== |
|
| 25.
FINANCIAL CHARGES |
|
| Mark
up on long-term finances |
|
44,530,722 |
12,200,677 |
|
| Mark
up on short-term finances |
|
3,029,606 |
4,727,384 |
|
| Bank
& other charges |
|
424,186 |
948,335 |
|
|
---------- |
---------- |
|
|
47,984,514 |
17,876,396 |
|
|
========== |
========== |
|
|
| 26.
REMUNERATION OF CHIEF EXECUTIVE AND OTHER EXECUTIVES |
|
|
|
For the eighteen months |
|
|
1997 |
|
ended June 30, 1996 |
|
|
------------------------------ |
------------------------------ |
|
|
|
Chief |
Executive |
Total |
Chief |
Executive |
Total |
|
|
Executive |
|
Executive |
|
|
|
------------------------------ |
------------------------------ |
|
|
Rupees |
|
Rupees |
|
| Managerial |
|
| remuneration |
780,000 |
921,504 |
1,701,504 |
995,000 |
1,123,320 |
2,118,320 |
|
| Housing
and utility |
390,000 |
460, 752 |
850,752 |
365,000 |
655,266 |
1,020,266 |
|
| Company's
contribution |
|
| To
provident fund |
78,000 |
92,150 |
170,150 |
73,000 |
97,190 |
170,190 |
|
| Leave
fare assistance |
- |
60,480 |
60,480 |
662,440 |
116,940 |
779,380 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
1,248,000 |
1,534,886 |
2,782,886 |
2,095,440 |
1,992,716 |
4,088,156 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| Number
of Persons |
1 |
5 |
|
1 |
5 |
|
|
| In
addition, the Chief Executive and executives were provided with free use of |
|
| company
cars. Directors were paid Rupees 9,000 (1996: Rupees 7,500) for attend- |
|
| ing
board meetings during the year. |
|
|
1997 |
1996 |
|
| 27.
TAXATION |
|
Rupees |
Rupees |
|
|
| Current |
|
|
| For the year |
|
988,440 |
652,751 |
|
| For
prior years |
|
43,883 |
-- |
|
|
---------- |
---------- |
|
|
1,032,323 |
652,751 |
|
|
========== |
========== |
|
| Deferred |
|
| There
is no liability on account of deferred taxation as at June 30, 1997. |
|
|
| 28.
CORRESPONDING FIGURES |
|
| Prior
period figures are for eighteen months and have been re-arranged and |
|
| re-grouped
wherever necessary for the purpose of comparison. |
|
|
|
SHARE HOLDING |
|
| No. of |
From |
To |
Total Shares Held |
|
| Shareholders |
|
| 6 |
1 |
100 |
370 |
|
| 29 |
101 |
500 |
11580 |
|
| 49 |
501 |
1000 |
42710 |
|
| 101 |
1O01 |
5000 |
226520 |
|
| 27 |
5001 |
10000 |
222210 |
|
| 8 |
10001 |
15000 |
91680 |
|
| 5 |
15001 |
20000 |
83000 |
|
| 13 |
20001 |
25000 |
304540 |
|
| 4 |
25001 |
30000 |
114200 |
|
| 2 |
30001 |
35000 |
60960 |
|
| 3 |
35001 |
40000 |
112000 |
|
| 1 |
50001 |
55000 |
52000 |
|
| 4 |
55001 |
60000 |
233900 |
|
| 1 |
60001 |
65000 |
63950 |
|
| 2 |
75001 |
80000 |
153700 |
|
| 1 |
90001 |
95000 |
90500 |
|
| 2 |
95001 |
100000 |
196000 |
|
|
|
| 1 |
100001 |
105000 |
104400 |
|
| 1 |
355001 |
360000 |
359000 |
|
| 1 |
420001 |
425000 |
422800 |
|
| 1 |
535001 |
540000 |
537000 |
|
| 1 |
640001 |
645000 |
644800 |
|
| 1 |
875001 |
880000 |
877000 |
|
| 1 |
1245001 |
1250000 |
12491O0 |
|
| 1 |
1695001 |
1700000 |
1696880 |
|
|
|
| 1 |
1755001 |
1760000 |
1758200 |
|
| 1 |
2290001 |
2295000 |
2291000 |
|
| 1 |
2995001 |
3000000 |
3000000 |
|
| ---------- |
---------- |
---------- |
---------- |
|
|
| 269 |
|
15000000 |
|
| ========== |
========== |
========== |
========== |
|
|
|
|
|
|
|
|
| Categories
of |
Number |
Shares Held |
Percentage |
|
|
|
| Shareholders |
|
| Individuals |
|
237 |
1311920 |
8.746 |
|
| Investment
Companies |
2 |
120140 |
0.801 |
|
| Insurance
Companies |
2 |
71200 |
0.475 |
|
| Joint
Stock Companies |
10 |
3564800 |
23.766 |
|
| Financial
Institutions |
7 |
3915900 |
26.106 |
|
| Modaraba
Companies |
1 |
644800 |
4.298 |
|
| Others |
|
10 |
5371240 |
35.808 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
|
| T o t a l |
|
269 |
15000000 |
100.000 |
|
| ========== |
========== |
========== |
========== |
========== |
|
| Others |
|
| Modarabas |
|
9 |
2371240 |
15.808 |
|
| Non
Residents |
1 |
3000000 |
20.000 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
|
| T o t a l |
|
10 |
5371240 |
35.808 |
|
| ========== |
========== |
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
