| ENGLISH LEASING LIMITED |
|
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| ANNUAL
REPORT 1997 |
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| CONTENTS |
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| Company Information |
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| Board
of Directors |
|
| Chairman's
Review |
|
| Directors'
Report |
|
|
| Auditors'
Report |
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|
| Balance
Sheet |
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| Profit
& Loss Account |
|
|
| Statement
of Changes in Financial Position |
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| Notes
to the Accounts |
|
| Notice
of Annual General Meeting |
|
| Pattern
of Shareholding |
|
|
| Company
Secretary |
|
| Mr.
Azhar Hussain |
|
|
| Bankers |
|
| Allied
Bank of Pakistan Limited |
|
| Muslim
Commercial Bank Limited |
|
| The
Bank of Khyber |
|
| Prudential
Commercial Bank Ltd. |
|
|
| Auditors |
|
| Rahim
Iqbal Rafiq & Co. |
|
| Chartered
Accountants |
|
|
| Legal Advisor |
|
| Mr.
Haq Nawaz Chattha |
|
| International
Legal Services |
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|
| Registrars
& Share Transfer Office |
|
| C
& K Management Associates (Pvt.)Limited |
|
| 4th
Floor, Trade Tower, |
|
| Abdullah
Haroon Road, |
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| Near
Metropole Hotel, Karachi - 75530 |
|
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| Registered
Office |
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| 801,
8th Floor Fortune Centre |
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| 45-A,
Block '6', P.E.C.H.S., |
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| Shahrah-e-Faisal, |
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| Karachi |
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| Tel:
4529061 - 64 (4 Lines) |
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| Fax: 4529065 |
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| Principal
Office |
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| M. K. Arcade |
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| 32
- Davis Road, |
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| Lahore. |
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| Tel:
6303855 - 58, 6302803 - 4 |
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| Fax:
9242 - 6304251 |
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|
| BOARD
OF DIRECTORS |
|
| Sheikh
Javaid Mahmood |
Chairman |
|
| Sheikh
Manzoor Elahi |
Chief Executive |
|
| Sheikh
Irshad Ahmed |
Director Marketing |
|
| Mr.
Muhammad Saad Maniar |
Director |
|
| Mr.
Muhammad Rashid Zahir |
Nominee of SAPICO |
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| Mr.
Shahid Ghaffar |
Nominee of NIT |
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| Mrs.
Taskeen Javaid |
Director |
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| CHAIRMANS'
REVIEWS |
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| The
period from July, 1996 to June, 1997 has been |
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| an
era of turmoil, hopes and despairs. Contrary |
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| to
expectations, all sectors of business, trade and |
|
| industry
having sparked for a while, on the induction |
|
| of
New Government of Pakistan Muslim League sunk |
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| into
the gloom, which started with wheat crises |
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| followed
by sectarian killings and unending chain |
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| of
unfortunate events culminating into macro |
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| economic
imbalances, galloping inflation, eroding |
|
| purchasing
power and mass unemployment. Incentive |
|
| package
offered by the Government for the revival |
|
| and
promotion of trade and industry failed to change |
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| the
business or industrial climate. The Government |
|
| could
not achieve its targets. The GDP growth rate of 3.1% was hardly higher than |
|
| the
population growth rate and less than half of the targetted 6.3% hence their
was |
|
| virtually
no increase in the per capita income. In some cases there was negative growth |
|
| as
well. Large scale manufacturing registered a decline of 1.4% while the value
added |
|
| sector
grew at less than 1% Major agricultural crops had shown a drop in output of |
|
| about
4.5% Both investment and national savings declined as a percentage Of the |
|
| G.D.P.
Exports fell by 2.7% and despite 5% contraction in imports, the current
Account |
|
| deficit,
excluding official transfers was 6.5% of the G.D.P The tax GDP ratio declined |
|
| while
total debt as a percentage of GDP went up quite contrary to what had been |
|
| envisaged.
Bank borrowings for budgetary support stood at more than three times |
|
| of
the original target. The high level of credit expansion pushed up the
inflationary |
|
| gap
which was recorded at 13% as measured by the consumer price index. Despite |
|
| adverse
circumstances your company had been able to maintain the pace of its progress |
|
| Over
the period from 1st July 96 to 30th June 1997. Gross lease disbursements of
Rs. |
|
| 61.985
million were made raising the total disbursements to Rs, 469.330 million |
|
| registering
an increase of 15.22% over the Previous year figure of Rs. 407. 345 million. |
|
|
| On
revenue side Company generated income from lease operations Rs. 43.186
million, |
|
| gain
on sale of securities Rs. 0.845 million and other income Rs, 1.215 million,
total |
|
| Rs.
45.246 million as against Rs. 36.928 million of the previous year, thus
reflecting |
|
| improvement
of 23%. Inspite of high inflation the expenditure remained under control |
|
| restricting
it to Rs. 30.245 million as against Rs. 22.246 Million of last year, inspite |
|
| of
54% increase in the financial & bank charges which increased from Rs.
11.811 |
|
| million
of 1996 to Rs. 18.166 million in 1997 and earned pretax profit of Rs. 15.001 |
|
| million.
Stock market remained bullish and whatever improvement has been witnessed |
|
| it
was selective and confined to a few chips |
|
| only.
Our short term investment improved from |
|
| Rs. 0.884 million
to Rs. 1.118 million while the |
|
| long term investment
depleted from Rs. 4.337 |
|
| million
to Rs. 3.658 million, but we are still |
|
| of
the view that our investments possess |
|
| adequate
potential of improvement and happier |
|
| position
shall emerge as soon as our economy |
|
| revives
and stability in the county is restored. |
|
| Special care has been
taken to maintaining a |
|
| well
balanced diversified lease portfolio picking |
|
| up
only reputed, well established and financially sound clients. Lease portfolio
comprise |
|
| major
of Machinery 82.38%, Vehicles Private & Commercial 16.02%, and equipment |
|
| 1.60%
Sector-wise position reflect our |
|
| investment
in Textile processing 13.68%, |
|
| Textile
Weaving 5.46%, Textile Spinning |
|
| 2.67%,
Pharmaceutical and Pesticides |
|
| 11.46%,
Engineering 1.88%, Sugar 22.18%, |
|
| Electronics
4.15% Plastic 3.01%, Food and |
|
| Allied
5.03%, Paper & Board 1.86%, |
|
| Synthetic
and Fibres 7.43%, Knitting |
|
| Garments
7.40%. Miscellaneous 13.79%. |
|
|
| Recoveries: |
|
| Adverse
market conditions have caused cash flow problems to almost every business |
|
| and
industry. The menace of stuck up advances with Banks and DFls assumed so |
|
| high
proportions that the State Bank of Pakistan had to bring special loan
incentive |
|
| scheme
to ensure recoveries from the defaulters. Inspite of difficulties our
recovery |
|
| rate
was 81.84% as on 30-06-1997, Since improved to 89.19%. |
|
|
| Resource
Mobilization and Future out look: |
|
| On
account of acute liquidity crunch, availability of credit from local Banks
and |
|
| Financial
institutions remained a serious constraint. However, fresh one Long Term |
|
| Credit
Line of Rs. 30.000 million for three years and one short term finance of Rs. |
|
| 5.000
million could be successfully negotiated during the period. Funds procurement |
|
| drive
has been continuing and one long term line of Rs. 5.000 million for 3 years
and |
|
| two
short term facilities for Rs. 15.000 million have been further procured. |
|
| First Allied Bank Modaraba has agreed to provide Rs. 30.000 million
for 3 years. |
.~ |
|
| Allied
Bank of Pakistan Limited too have been approached for a credit line of equal |
|
| amount
for three years and are hopeful of positive response from them. Our proposals |
|
| for
long term facilities are also under consideration of other banks and
financial |
|
| institutions.
~p,~ |
|
|
| A.D.B
Financial Sector Intermediation Loan (FSIL) |
|
| One
proposal for Rs. 35.000 million stand approved for US$ 873.255 by Asian |
|
| Development
Bank, Manila. Application for disbursement of funds has also been |
|
| accepted
by Asian Development Bank and funds are expected shortly. These funds |
|
| will
be for 12 year with 3 year grace period. Successful materialization of this
transaction |
|
| shall
pave the way for securing further funds from them under this loan. |
|
|
| Certificates
of Investment (COls): |
|
| Public
response has been slow although the profit offered by the company on various |
|
| products
is the highest. In fact public confidence after the failure of Finance
Companies, |
|
| Investment
Companies, Cooperatives and renowned Taj Company has not been |
|
| rehabilitated.
Common man is scare of placing funds with institutions other than well |
|
| known
Commercial Banks and Government/Semi. Government Bodies like National |
|
| Saving
Centres who offer quite attractive return as well but inspite of difficulties
Long |
|
| Term
Deposits aggregating Rs. 19.226 million and Short Term upto 11.500 million |
|
| total
Rs. 30.726 million have been mobilized. We are quite hopeful that with
persistent |
|
| efforts
better results will be achieved. |
|
|
| Acknowledgment: |
|
| I
thank the Ministry of Finance, State Bank of Pakistan, Corporate Law
Authority, |
|
| Financial
Institutions and our valuable customers, as well as Shareholders for the |
|
| guidance
and continued support extended to us by them. I also convey my appreciations |
|
| to
the staff members for the dedication and hard work put in by them for the
promotion |
|
| and
progress of the Company |
|
|
|
| DIRECTORS'
REPORT |
|
| Your
Directors endorse the accompanying Chairman's Review on the activities of the |
|
| Company
and feel pleasure in presenting the Sixth Annual Report together with the |
|
| Audited
Accounts of the Company for the period ended June, 30, 1997. |
|
|
| Financial
highlights of the Company are as follows: |
|
|
| Financial
Highlights |
|
Rupees |
|
| Profit
after tax |
|
11,345,421 |
|
| Unappropriated
profit brought forward |
|
290,292 |
|
| Profit
available for appropriation |
|
11,635,713 |
|
| Appropriation |
|
|
|
|
|
|
| Transfer
to Statutory Reserve |
|
2,269,084 |
|
| Transfer
to General Reserve |
|
9,000,000 |
|
| Transfer
to Contingencies Reserve |
|
- |
|
| Dividend |
|
- |
|
|
---------- |
|
|
11,269,084 |
|
|
---------- |
|
| Unappropriated
profit Carried forward |
|
366,629 |
|
|
========== |
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|
| Auditors |
|
|
| The
present auditors, Messrs Rahim Iqbal, Rafiq & Company, Chartered
Accountants, |
|
| retire
and being eligible offer themselves for reappointment. |
|
|
| Pattern
of Shareholding |
|
| The
pattern of shareholding is annexed |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| We
have audited the annexed Balance Sheet of English Leasing Limited as at June |
|
| 30,
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 the |
|
| 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 expenditure |
|
| incurred
during the year were in accordance with the objects |
|
| of
the company; |
|
|
| (c)
in our opinion and to the best of our information and according to the |
|
| explanations
given to us, the Balance Sheet and Profit and Loss Account |
|
| and
the Statement of Changes in Financial Position, together with the |
|
| notes
forming part thereof, give the information required by the |
|
| Companies
Ordinance, 1984 in the manner so required and respectively |
|
| give
a true and fair view of the state of the company's affairs as at June |
|
| 30,
1997; and of the profit and the changes in 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. |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1997 |
|
|
|
1997 |
1996 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| Share
Capital And Reserves |
|
|
|
|
|
|
| Authorised |
|
|
|
| 50,000,000
Ordinary shares of Rs. 10 each |
|
500,000,000 |
500,000,000 |
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up |
|
|
| 8,000,000
Ordinary shares of |
|
|
|
| Rs.
10 each fully paid in cash |
|
80,000,000 |
80,000,000 |
|
|
|
|
| Capital
Reserves |
|
3 |
13,870,517 |
11,601,433 |
|
| Revenue
reserves |
|
4 |
26,883,737 |
17,883,737 |
|
| Unappropriated
profit |
|
|
366,629 |
290,292 |
|
|
|
---------- |
---------- |
|
|
|
121,120,888 |
109,775,462 |
|
|
|
|
| LONG
TERM LOANS |
|
5 |
19,036,259 |
109,775,462 |
|
|
|
|
| OBLIGATIONS
UNDER FINANCE LEASE |
|
889,495 |
- |
|
| LONG
TERM DEPOSITS |
|
|
23,893,508 |
27,086,309 |
|
|
|
|
| LONG
TERM CERTIFICATES OF INVESTMENT |
8 |
19,226,702 |
12,666,305 |
|
| DEFERRED
LIABILITIES |
|
|
|
| Gratuity |
|
|
109,800 |
- |
|
| CURRENT
LIABILITIES |
|
|
|
| Current
portion of obligations |
|
---------- |
---------- |
|
| under
assets subject to lease finance |
|
246,707 |
- |
|
| Current
maturity of long term liabilities |
|
40,780,582 |
32,806,741 |
|
| Short
term finances |
|
9 |
4,217,693 |
15,554,839 |
|
| Short
term certificates of investment |
8 |
11,500,000 |
30,300,000 |
|
| Creditors,
accrued and other liabilities |
10 |
7,840,465 |
4,573,681 |
|
| Taxation |
|
|
642,307 |
480,407 |
|
| Unclaimed
dividend |
|
|
263,339 |
137,129 |
|
| Proposed
dividend |
|
|
|
14,000,000 |
|
|
|
---------- |
---------- |
|
|
|
65,491,093 |
97,852,797 |
|
|
|
|
| CONTINGENCIES
AND COMMITMENTS |
11 |
- |
- |
|
|
|
---------- |
---------- |
|
|
|
249,767,740 |
267,309,862 |
|
|
|
========== |
========== |
|
|
|
|
| The
annexed notes from an integral part of these accounts. |
|
|
|
|
| TANGIBLE
FIXED ASSETS |
|
12 |
7,488,941 |
4,567,012 |
|
| ADVANCE
FOR CAPITAL EXPENDITURE |
|
- |
1,857,000 |
|
| NET
INVESTMENT IN LEASES |
|
13 |
109,393,223 |
148,433,054 |
|
| LONG
TERM INVESTMENTS |
|
14 |
18,310,875 |
17,310,875 |
|
| LONG
TERM DEPOSITS AND DEFERRED COST |
15 |
248,910 |
504,603 |
|
|
|
|
|
| CURRENT ASSETS |
|
|
---------- |
---------- |
|
| Current
portion of net investment in leases |
|
82,013,071 |
70,753,779 |
|
|
|
|
| Investment
in quoted shares against |
|
|
|
|
|
| sale
purchase contract |
|
|
5,239,931 |
2,805,149 |
|
| Short
term investments |
|
16 |
884,250 |
884,250 |
|
| Loans,
advances, prepayments and |
|
|
| other
receivables |
|
17 |
24,539,266 |
14,328,655 |
|
|
|
|
| Cash
at bank Balances |
|
18 |
1,649,273 |
5,865,485 |
|
|
|
---------- |
---------- |
|
|
114,325,791 |
94,637,318 |
|
|
---------- |
---------- |
|
|
249,767,740 |
267,309,862 |
|
|
========== |
========== |
|
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| For
the year ended June 30, 1997 |
|
1997 |
1996 |
|
|
Note |
Rupees |
Rupees |
|
|
| Revenue |
|
| Income
from lease operations |
|
19 |
43,186,416 |
35,335,009 |
|
| Gain
on sale of securities |
|
|
844,782 |
514,181 |
|
| Other income |
|
20 |
1,215,679 |
1,079,486 |
|
|
|
---------- |
---------- |
|
|
|
45,246,877 |
36,928,676 |
|
|
|
|
| Expenditure |
|
|
|
|
| Financial
and bank charges |
|
21 |
18,166,751 |
11,811,398 |
|
| Administrative
and operating expenses |
22 |
9,436,594 |
8,713,102 |
|
| Provision
for doubtful debts |
|
|
2,641,745 |
1,239,998 |
|
| Provision
for diminution in investment |
|
- |
482,000 |
|
|
|
---------- |
---------- |
|
|
|
30,245,090 |
22,246,498 |
|
|
|
---------- |
---------- |
|
| Profit
Before Taxation |
|
|
15,001,787 |
14,682,178 |
|
| Taxation |
|
|
---------- |
---------- |
|
| Current year |
|
23.1 |
581,993 |
515,225 |
|
| Prior year |
|
|
3,074,373 |
1,564,499 |
|
|
|
---------- |
---------- |
|
|
|
3,656,366 |
2,079,724 |
|
|
|
---------- |
---------- |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
11,635,713 |
16,763,415 |
|
|
|
|
| APPROPRIATIONS |
|
|
|
---------- |
---------- |
|
| Transfer
to statutory reserve |
|
2,269,084 |
2,520,491 |
|
| Transfer
to general reserve |
|
|
9,000,000 |
(1,000,000) |
|
| Transfer
to contingencies reserve |
|
- |
952,632 |
|
| Proposed
dividend |
|
|
- |
14,000,000 |
|
|
|
---------- |
---------- |
|
|
|
11,269,084 |
16,473,123 |
|
|
|
---------- |
---------- |
|
| UNAPPROPRIATED
PROFIT CARRIED FORWARD |
|
366,629 |
290,292 |
|
| The
annexed notes form an integral part of these accounts. |
========== |
========== |
|
|
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| For
the Year Ended June 30, 1997 |
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
1997 |
1996 |
|
|
Rupees |
Rupees |
|
|
| Profit
for the year/period |
|
15,001,787 |
14,682,178 |
|
| Add:
Adjustment to reconcile profit to |
|
|
|
| net
cash provided by operating activities |
|
---------- |
---------- |
|
| Depreciation
and amortization |
|
1,469,562 |
1,631,809 |
|
| Provision
for doubtful debts |
|
2,641,745 |
1,239,998 |
|
| Provision
for diminution of investment |
|
- |
482,000 |
|
| Provision
for Gratuity |
|
109,800 |
- |
|
|
---------- |
---------- |
|
| Operating
profit before working |
|
|
|
| capital
changes |
|
19,222,894 |
18,035,985 |
|
|
---------- |
---------- |
|
| Decrease/(Increase)
in current assets |
|
(12,645,393) |
(5,589,633) |
|
| (Decrease)/Increase
in current liabilities |
|
26,870,362 |
30,607,487 |
|
|
---------- |
---------- |
|
| Net
cash from operating activities |
|
| before
income tax |
|
(20,292,861) |
43,053,839 |
|
| Income
tax paid |
|
(3,494,466) |
(2,368,291) |
|
|
---------- |
---------- |
|
| Net
cash inflow/(outflow) from operating activities |
(23,787,327) |
40,685,548 |
|
|
| Cash
flows from investing activities |
|
---------- |
---------- |
|
| Investment
in leases - net |
|
25,138,794 |
{48,871,579) |
|
| Long
term investment |
|
(1,000,000) |
- |
|
| Capital
expenditure |
|
(4,017,243) |
(59,835) |
|
| Advance
for Capital Expenditure |
|
1,857,000 |
(200,000) |
|
|
|
---------- |
---------- |
|
| Net
cash used in investing activities |
|
21,978,551 |
(49,131,414) |
|
| Cash
flows from financing activities |
|
---------- |
---------- |
|
| Long
term loans |
|
30,000,000 |
12,500,000 |
|
| Proceeds
from lease obligations |
|
1,136,202 |
- |
|
| Certificates
of Investment |
|
6,560,397 |
12,566,305 |
|
| Deposits
from lessees |
|
(1,812,209) |
8,586,087 |
|
| Repayment
of long term loans |
|
(24,299,481) |
(19,827,478) |
|
| Long
term deposits and deferred cost |
|
(118,555) |
(8,000) |
|
| Payment
of dividend |
|
(13,873,790) |
(2,648) |
|
|
---------- |
---------- |
|
| Net
cash (used) /generated |
|
| from
financing activities |
|
(2,407,436) |
13,814,266 |
|
|
|
|
| Net
increase/(decrease) in cash |
|
(4,216,212) |
5,368,400 |
|
| Cash
and bank balances |
|
|
|
| at
beginning of the year |
|
5,865,485 |
497,085 |
|
|
---------- |
---------- |
|
| Cash
and bank balances at the end of the year |
1,649,273 |
5,865,485 |
|
|
========== |
========== |
|
|
|
|
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| For
the Year Ended June 30, 1997 |
|
|
| 1.
The Company and its activities |
|
| English
Leasing Limited is a Public Limited Company incorporated in Pakistan |
|
| and
its shares are quoted on the Stock Exchanges of Pakistan. The Company is |
|
| mainly
engaged in the business of Leasing. |
|
|
| 2.
Summary of significant accounting policies |
|
|
| 2.1
Accounting convention |
|
| These
accounts have been prepared under the historical cost convention. |
|
|
| 2.2
Employee's provident fund and gratuity |
|
| The
Company is in the process of establishing a provident fund scheme |
|
| covering
all its permanent employees and working directors. Equal monthly |
|
| contributions
are made both by the company and employees @ 10% of the |
|
| basic
salaries to the fund. |
|
|
| The
Company operates an unfunded gratuity covering all its employees. |
|
| Provision
is made annually to cover the liability under the scheme. |
|
|
| 2.3
Tangible operating fixed assets and depreciation |
|
| Tangible
operating fixed assets are stated at cost less accumulated |
|
| depreciation.
Cost of these assets consist of historical cost and directly |
|
| attributable
cost of bringing the assets to working conditions. |
|
| Depreciation
is charged to income applying the reducing balance method |
|
| to
write off the cost over their expected remaining useful life. Full year's |
|
| depreciation
is charged on additions, while no depreciation is charged on |
|
| deletion
during the year. |
|
|
| Repairs
and maintenance costs are expensed out as and when incurred, |
|
| however,
major betterment's are capitalized. |
|
|
| Gains
and losses on disposal of assets, if any, are included in income |
|
| currently. |
|
|
| 2.4
Investments |
|
| Long
term investments are stated at cost, provision for diminution in value |
|
| of
investment is made, if considered permanent. |
|
|
| Short
term investment are stated at lower of cost and market value. |
|
|
| 2.5
Deferred cost |
|
| Deferred
cost is amortized over a period of 5 (Five) years from the year of ~ |
|
| incurrence. |
|
|
|
|
|
| 2.6 Taxation |
|
|
|
| The
charge for the current taxation is based on taxable income at the |
|
| current
tax rates after taking into account the 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
Revenue Recognition |
|
| The
company follows the "Finance Method" to recognize the income on
lease |
|
| i.e.
the excess of aggregate lease rentals and the residual value over the |
|
| cost
of leased assets is deferred and then amortized to income over the |
|
| lease
term by applying the annuity method to produce a constant rate of |
|
| return
on the net investment in the lease. |
|
|
| Income
on bank accounts, loans and advances is recognized on a time |
|
| proportion
basis taking into account the principal/net investment outstanding |
|
| and
applicable rate of markup/profit thereon. |
|
|
| Income
from fees, commission, commitment charges, term deposits and |
|
| investment
etc.; is recognized as and when received. |
|
|
| 2.8
Provision for Doubtful Debts |
|
| Provision
for doubtful debt is made/adjusted at the year end after review |
|
| of
outstanding lease and advances portfolio on the basis of State Bank of |
|
| Pakistan
prudential regulations as applies to leasing companies. |
|
|
|
1997 |
1996 |
|
| 3.
Capital Reserves |
|
Rupees |
Rupees |
|
|
| Statutory
reserve |
|
| Opening
balance |
|
11,601,433 |
9,080,942 |
|
| -
Add Appropriated from profit |
|
2,269,084 |
2,520,491 |
|
|
---------- |
---------- |
|
| Closing
balance |
|
13,870,517 |
11,601,433 |
|
|
========== |
========== |
|
|
| 3.1
Statutory reserve has been created in pursuance of NBFI's regulations, |
|
| whereby
every NBFI is required to create reserve fund with an amount not |
|
| less
than 20% of its after tax profit till such time the reserve equals the |
|
| amount
of paid up capital, thereafter, 5% of Profit after Tax will be credited |
|
| to
this reserve. |
|
|
| This
reserve is not considered as free reserve for distribution of dividend. |
|
|
---------- |
---------- |
---------- |
---------- |
|
| 4. Revenue Reserves |
|
|
Total |
Total |
|
|
General |
Contingencies |
1997 |
1996 |
|
|
---------- |
---------- |
---------- |
---------- |
|
| Opening
Balance |
13,500,000 |
4,383,737 |
17,883,737 |
17,931,105 |
|
| -
Add Appropriated from |
|
| profit |
9,000,000 |
- |
9,000,000 |
(47,368) |
|
|
---------- |
---------- |
---------- |
---------- |
|
| Closing
Balance |
22,500,000 |
4,383,737 |
26,883,737 |
17,883,737 |
|
|
========== |
========== |
========== |
========== |
|
|
|
|
| 4.1
Contingency reserve has been created to meet any potential lease losses |
|
| on
lease portfolio that can be reasonably anticipated. |
|
|
| 5. Long Term Loan |
|
|
1997 |
1996 |
|
|
Note |
Rupees |
Rupees |
|
|
|
---------- |
---------- |
|
| Muslim
Commercial Bank Ltd. |
|
(5.2) |
9,900,000 |
9,900,000 |
|
| Saudi
Pak Industrial & Agricultural |
|
|
| Investment
Company (Pvt) Ltd. |
(5.3) |
3,264,250 |
5,213,718 |
|
| First
Allied Bank Modaraba |
|
(5.4) |
28,333,335 |
14,166,671 |
|
| Allied
Bank of Pakistan Limited |
(5.5) |
1,731,404 |
5,748,081 |
|
| Prudential
Commercial Bank Ltd. |
(5.6) |
5,000,000 |
7,500,000 |
|
|
---------- |
---------- |
|
|
48,228,989 |
42,528,470 |
|
|
|
| Less:
Current Maturity |
|
29,192,730 |
22,599,481 |
|
|
---------- |
---------- |
|
|
19,036,259 |
19,928,989 |
|
|
========== |
========== |
|
|
|
|
| 5.1
All the above loans have been obtained for financing lease operations of the |
|
| Company
and are secured by pari passu floating charge on the present and |
|
| future
leased assets, hypothecation of movable assets, demand promissory |
|
| notes
and personal guarantees of the directors. Muslim Commercial Bank |
|
| Limited
loan is secured by assignment of lease agreement/rentals. |
|
|
| 5.2
Muslim Commercial Bank Ltd., loan carries markup rate of 17.5% p.a. on |
|
| reducing
balances and is repayable in 10 equal half yearly installments |
|
| commencing
from June 27, 1993 while markup is payable quarterly. |
|
|
| 5.3
Loan from Saudi Pak Industrial and Agricultural Investment Co. (Pvt) Ltd., |
|
| carries
markup rate of 20% p.a. on reducing balances and is repayable in |
|
| 12
quarterly installments (Principal and Markup) commencing from June |
|
| 20, 1996. |
|
|
| 5.4
Loan from First Allied Bank Modaraba carries markup rate of 20% and |
|
| 23%
p.a. on reducing balances and is repayable in 12 equal half yearly |
|
| installments
commencing from September 15, 1994 and November 18, |
|
| 1996,
whereas markup is payable on quarterly basis. |
|
|
| 5.5
Loan from Allied Bank of Pakistan Ltd., carries markup rate 18.50% p.a. |
|
| on
reducing balances, the principal and markup is repayable in 14 |
|
| installments
commencing from September 30, 1994 on quarterly basis. |
|
|
| 5.6
Loan from Prudential Commercial Bank Limited is secured against first |
|
| floating
charge on companies lease assets, receivables and personal |
|
| guarantees
of directors ranking pari passu with other creditors. This facility |
|
| carries
markup rate of 20% p.a. on reducing balances and is repayable in |
|
| 12 quarterly installments commencing from August |
15, 1996. |
|
|
| 6.
Obligations under Finance Lease |
|
1997 |
1996 |
|
|
Rupees |
Rupees |
|
|
| Balance
of obligation under finance lease |
|
1,136,202 |
- |
|
| Less:
Current portion shown under |
|
|
|
| current
liabilities |
|
246,707 |
- |
|
|
---------- |
---------- |
|
|
889,495 |
- |
|
|
========== |
========== |
|
|
|
|
| The
obligations under finance lease are reported at aggregate of minimum lease |
|
| payments,
implicitly discounted by using the rate of 22%. The future payments |
|
| due
are as follows: |
|
|
| Years
ended June 30 |
|
| 1997 |
|
246,707 |
- |
|
| 1998 |
|
307,219 |
- |
|
| 1999 |
|
326,581 |
- |
|
| 2000 |
|
120,152 |
- |
|
| 2001 |
|
135,543 |
- |
|
|
---------- |
---------- |
|
|
1,136,202 |
- |
|
|
========== |
========== |
|
| 7.
Long Term Deposits |
|
|
| Security
deposit on leases |
|
35,481,360 |
37,293,569 |
|
| Less:
Repayable/adjustable within 12 months |
11,587,852 |
10,207,260 |
|
|
---------- |
---------- |
|
|
23,893,508 |
27,086,309 |
|
|
|
========== |
========== |
|
|
|
|
|
| These
represent interest free security deposits (Lease key money) received on |
|
| lease
contracts and are repayable/adjustable at the expiry of respective lease |
|
| periods. |
|
|
| 8.
Certificates of Investment |
|
| These
represent Registered Certificates of Investment (COl's) issued according to |
|
| the
permission granted by the Government of Pakistan for raising funds directly |
|
| from
the local resources. These COI's have been issued for maturity period ranging |
|
| from
three months to five years. The return on COI's is payable on uniform basis |
|
| ranging
from 15% to 19.5% p.a. |
|
|
| 9.
Short Term Finances - Secured |
|
1997 |
1996 |
|
|
Rupees |
Rupees |
|
|
|
|
| The
Bank of Khyber |
|
(9.1) |
- |
2,500,000 |
|
| Allied
Bank of Pakistan Limited |
(9.2) |
4,2 17,693 |
5,054,840 |
|
| Al-Faysal
Investment Bank Ltd. |
(9.3) |
- |
7,999,999 |
|
|
---------- |
---------- |
|
|
4,217,693 |
15,554,839 |
|
|
========== |
========== |
|
|
|
|
| 9.1
It is secured against floating charge on the undertaking or property of the |
|
| Company
including stock-in-trade and book debts, carrying markup @ 19% |
|
| and
19.5% p.a. respectively. The facility is obtained against a sanctioned |
|
| limit
of Rs. 10 Million. |
|
|
| 9.2
It is secured against pari passu charge over the leased assets and personal |
|
| guarantees
of directors. The rate of markup is 18.5% p.a. and is repayable |
|
| periodically.
The facility is obtained against a sanctioned limit of Rs. 5 million. |
|
|
| 9.3
It is secured against pari passu hypothecation charge over leased assets, |
|
| receivables/lease
rentals. The facility is obtained against a sanctioned limit |
|
| of
Rs. 15 Million and carry markup at the rate of 19.5% p.a. |
|
|
| 10.
Creditors, Accrued and Other Liabilities |
1997 |
1996 |
|
|
Rupees |
Rupees |
|
|
| Creditors |
|
1,154,193 |
252,856 |
|
| Accrued
markup on long term loans |
|
5,0 13,296 |
3,345,052 |
|
| Profit
payable on COI's |
|
900,237 |
362,589 |
|
| Accrued
charges |
|
400,903 |
489,298 |
|
| Provident fund |
|
2 1 1,969 |
1 16,3 16 |
|
| Advance
lease rentals |
|
1 59,867 |
7,570 |
|
|
---------- |
---------- |
|
|
7,840,465 |
4,573,681 |
|
|
========== |
========== |
|
|
| 11.
Contingencies and Commitments |
|
|
| Contingencies |
|
- |
- |
|
| Commitment |
|
- |
- |
|
|
---------- |
---------- |
|
|
- |
- |
|
|
========== |
========== |
|
| 12.
Tangible Fixed Assets |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
| Particulars |
|
COST |
|
DEPRECIATION |
|
Depre- |
Book |
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
ciation |
Value |
|
As at |
Additions |
As at |
As at |
Additions |
As at |
Depreciable |
Rate |
As at |
As at |
|
1-07-96 |
(Deletions) |
30-06-97 |
30-06-96 |
(Deletions) |
30-6-1997 |
Value |
% |
30-6-1997 |
30-6-1997 |
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
|
| Owned Building |
|
0 |
2,794,681 |
2,794,681 |
0 |
0 |
0 |
2,794,681 |
5 |
139,734 |
2,654,947 |
| Furniture
& Fixture |
971,144 |
79,687 |
1,050,831 |
359,205 |
0 |
359,205 |
691,626 |
10 |
69,163 |
622,463 |
| Vehicles |
|
4,567,361 |
(300,000) |
4,267,361 |
2,083,411 |
(127,200) |
1,956,211 |
2,311,150 |
20 |
462,230 |
1,848,920 |
| Office
Equipment |
942,930 |
82,950 |
1,025,880 |
273,722 |
0 |
273,722 |
752,158 |
10 |
75,216 |
676,942 |
| Air
Conditioners |
589,160 |
0 |
589,160 |
219,015 |
0 |
219,015 |
370,145 |
10 |
37,014 |
333,131 |
| Electric
Installations |
193,574 |
0 |
193,574 |
65,564 |
0 |
65,564 |
128,010 |
10 |
12,801 |
115,209 |
| Leasehold
Improvement |
603,184 |
0 |
603,184 |
380,826 |
0 |
380826 |
222,358 |
20 |
44,471 |
177,887 |
| Electrical
Equipment |
95,300 |
0 |
95,300 |
13,898 |
0 |
13,898 |
81,402 |
10 |
8,140 |
73,262 |
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
7,962,653 |
2,657,318 |
10,619,971 |
3,395,641 |
(127,200) |
3,268,441 |
7,351,530 |
|
848,769 |
6,502,761 |
| UNDER LEASE |
|
|
|
|
|
|
| Vehicles |
|
0 |
1,232,725 |
1,232,725 |
0 |
0 |
0 |
1,232,725 |
20 |
246,545 |
986,180 |
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
7,962,653 |
3,890,043 |
11,852,696 |
3,395,641 |
(127,200) |
3,268,441 |
8,584,255 |
|
1,095,314 |
7,488,941 |
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
7,902,818 |
59,835 |
7,962,653 |
2,512,320 |
0 |
2,512,320 |
5,450,033 |
|
883,321 |
4,567,012 |
| ========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
| 12.1
Disposal of Vehicles |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
Cost |
Accumulated |
Book Value |
Sale |
Profit/'(Loss) |
Mode of |
Sold |
|
|
| Description |
Rs. |
Depreciation |
Rs. |
Proceeds |
on Disposal |
Disposal |
To |
|
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Nissan Sunny |
|
|
| LOU-923 |
300,000 |
127200.00 |
172,800 |
290,000 |
117,200 |
Negociation |
EFU General Insurance Co.
Karachi |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
| Additions
to building include cost of non Government judicial stamp duty |
|
| and
legal charges. |
|
|
| 13.
Net Investment in Leases |
|
1996 |
1997 |
|
|
Rupees |
Rupees |
|
|
|
|
| Minimum
lease payments receivables |
|
256,809,768 |
223,132,484 |
|
| Add:
Residual value of leased assets |
|
37,293,569 |
35,481,360 |
|
|
---------- |
---------- |
|
| Lease
contract receivables |
|
258,613,844 |
294,103,337 |
|
| Less:
Unearned finance income |
|
63,235,505 |
73,586,204 |
|
|
---------- |
---------- |
|
| Net
investment in leases |
|
195,378,339 |
220,517,133 |
|
|
---------- |
---------- |
|
| Less:
- Current portion |
|
82,013,071 |
70,753,779 |
|
| -
Provision for doubtful debts |
|
3,972,045 |
1,330,300 |
|
|
---------- |
---------- |
|
|
85,985,116 |
72,084,079 |
|
|
---------- |
---------- |
|
|
109,393,223 |
148,433,054 |
|
|
========== |
========== |
|
| 14.
Long Term Investments |
|
|
| Quoted: |
|
| Dewan
Salman Fibers Ltd. |
|
---------- |
---------- |
|
| (68,586
Ordinary shares of Rs. 10 each) |
|
88,450,001 |
8,845,000 |
|
| Pakistan
Synthetics Ltd. |
|
|
|
| (125,000
Ordinary shares of Rs. 10 each) |
|
7,865,875 |
7,865,875 |
|
|
---------- |
---------- |
|
|
16,710,875 |
16.710,875 |
|
| Federal
Investment Bonds |
|
1,600,000 |
600,000 |
|
|
---------- |
---------- |
|
|
18,310,875 |
17,310,875 |
|
|
---------- |
---------- |
|
| Aggregate
Market Value of investment |
|
3,657,755 |
4,337,190 |
|
|
========== |
========== |
|
|
| 14.1
The company's holding does not exceed 10 percent of equity of any investee
company. |
|
|
| 14.2
No provision has been made for diminution in value as it is considered |
|
| temporary
in the context of the Company's intentions to hold these investments |
|
| on
long term basis. |
|
|
| 15.
Long Term Deposits and Deferred Cost |
|
1997 |
1996 |
|
|
Rupees |
Rupees |
|
|
| Security
deposits |
|
248,910 |
130,355 |
|
| Deferred
cost (Note: 15.1) |
|
- |
374,248 |
|
|
---------- |
---------- |
|
|
248,910 |
504,603 |
|
| 15.1
Deferred Cost |
|
========== |
========== |
|
|
|
---------- |
---------- |
|
| Preliminary
expenses |
|
172,945 |
172,945 |
|
| Share
issue expenses |
|
1,638,389 |
1,638,389 |
|
| Pre-operating
expenses |
|
1,931,118 |
1,931,118 |
|
|
---------- |
---------- |
|
|
3,742,452 |
3,742,452 |
|
| Less:
Amortized to date |
|
3,742,452 |
3,368,204 |
|
|
---------- |
---------- |
|
|
- |
374,248 |
|
|
========== |
========== |
|
|
|
|
| 16.
Short Term Investments |
|
1997 |
1996 |
|
|
Rupees |
Rupees |
|
| Quoted: |
|
| Fidelity
Investment Bank Ltd. |
|
---------- |
---------- |
|
| (57,500
Ordinary shares of Rs. 10 each) |
|
2,871,500 |
2,871,500 |
|
| The
Bank of Punjab |
|
| (29,900
Ordinary shares of Rs. 10 each) |
|
1,688,250 |
1,688,250 |
|
|
---------- |
---------- |
|
|
4,559,750 |
4,559,750 |
|
| Less:
Diminution in value of investments |
|
3,675,500 |
3,675,500 |
|
|
---------- |
---------- |
|
|
884,250 |
884,250 |
|
|
========== |
========== |
|
| Aggregate
Market Value of investments |
|
1,118,490 |
884,250 |
|
|
========== |
========== |
|
|
| The
company's holding does not exceed 10 percent of equity of any investee |
|
| company. |
|
|
| 17.
Loans, Advances Prepayments |
|
| and
other Receivables |
|
|
| Lease
rentals due from lessees |
|
23,112, 113 |
12,237,401 |
|
| Advances: |
|
|
|
| Employees |
|
216,500 |
45,400 |
|
| Income Tax |
|
118,069 |
1,384,004 |
|
| Telephone |
|
15,294 |
17,785 |
|
| Purchase
of assets |
|
283,000 |
- |
|
| Prepayments |
|
394,297 |
432,433 |
|
| Profit
on bank deposits |
|
65,865 |
174,693 |
|
| Mark
up on short term advances |
|
284,796 |
- |
|
| Other
receivables |
|
41,633 |
30,996 |
|
| Stamps in Hand |
|
7,699 |
5,943 |
|
|
---------- |
---------- |
|
|
24,539,266 |
14,328,655 |
|
|
========== |
========== |
|
|
| 18. Cash and Bank Balances |
|
|
| Cash in hand |
|
137,351 |
541,470 |
|
| Cash
with banks |
|
| -
Current account |
|
811,922 |
4,624,015 |
|
| -
Deposit account |
|
700,000 |
700,000 |
|
|
---------- |
---------- |
|
|
1,649,273 |
5,865,485 |
|
|
========== |
========== |
|
| 19.
Income from Lease Operations |
|
|
| Lease income |
|
42,534,036 |
35,061,999 |
|
| Front end Fees |
|
509,401 |
238,295 |
|
| Documentation
& other fees |
|
142,979 |
34,715 |
|
|
---------- |
---------- |
|
|
43,186,416 |
35,335,009 |
|
|
========== |
========== |
|
| 20.
Other Income |
|
|
| Income
from bank deposits |
|
452,947 |
446,261 |
|
| Profit/Mark
up on short term advances |
|
358,196 |
266,715 |
|
| Dividend
income |
|
287,336 |
238,560 |
|
| Miscellaneous
income |
|
117,200 |
127,950 |
|
|
---------- |
---------- |
|
|
1,215,679 |
1,079,486 |
|
|
|
========== |
========== |
|
|
|
|
|
| 21.
Financial and Bank Charges |
|
1997 |
1996 |
|
|
Rupees |
Rupees |
|
|
|
|
| Markup
on long/short term finance |
|
11,466,698 |
11,087,672 |
|
| Bank charges |
|
96, 112 |
11,800 |
|
| Loan
processing fee |
|
539,085 |
197,500 |
|
| Excise
Duty on loans |
|
357,241 |
94,167 |
|
| Financial
charges on lease liability |
|
85,683 |
- |
|
| Markup on COIs |
|
5,621,932 |
420,259 |
|
|
---------- |
---------- |
|
|
18,166,751 |
11,811,398 |
|
|
========== |
========== |
|
| 22.
Administrative & Operating Expenses |
|
| Directors'
remuneration |
|
2,319,523 |
1,910,241 |
|
| Staff
salaries and other benefits |
|
1,386,408 |
1,443,295 |
|
| Gratuity |
|
109,800 |
- |
|
| Legal
and professional |
|
501,771 |
107,269 |
|
| Registrar'
services |
|
158,000 |
126,000 |
|
| Rent |
|
556,020 |
535,220 |
|
| Traveling
and conveyance |
|
398,734 |
562,632 |
|
| Postage,
telephone and telex |
|
378,873 |
293,515 |
|
| Electricity |
|
208,637 |
171,899 |
|
| Stationery
and other supplies |
|
214,018 |
133,103 |
|
| Vehicles
running |
|
474,756 |
423,908 |
|
| Auditors'
remuneration (Note 22.1) |
|
128,500 |
80,000 |
|
| News
papers & periodicals |
|
7,421 |
4,699 |
|
| Insurance |
|
431,774 |
342,679 |
|
| Entertainment |
|
72,483 |
74,779 |
|
| Office
Repairs & maintenance |
|
160,669 |
109,874 |
|
| Fees
& subscriptions |
|
423,760 |
674,500 |
|
| Depreciation |
|
1,095,314 |
883,321 |
|
| Amortization
of deferred cost |
|
374,248 |
748,488 |
|
| Advertisement |
|
35,885 |
77,880 |
|
| Penalty-SBP |
|
- |
9,800 |
|
|
---------- |
---------- |
|
|
9,436,594 |
8,713,102 |
|
|
========== |
========== |
|
|
| 22.1
Auditors' Remuneration |
|
|
| Audit fee |
|
40,000 |
30,000 |
|
| Tax
consultancy |
|
50,000 |
25,000 |
|
| Special
audit fee |
|
38,500 |
25,000 |
|
|
---------- |
---------- |
|
|
128,500 |
80,000 |
|
|
========== |
========== |
|
| 23. Taxation |
|
|
| 23.1
Current year |
|
581,993 |
515,225 |
|
|
========== |
========== |
|
|
|
|
| This
represents the minimum tax due under section 80 (d) of the Income |
|
| Tax
Ordinance, 1979. |
|
|
| 23.2 Deferred |
|
| Deferred
taxation arising due to timing differences between book and income |
|
| tax
revenue or charges is estimated at Rs. 0.732 million (1996: Rs. 10.050 |
|
| million).
The liability for deferred tax is not likely to reverse in the foreseeable |
|
| future
and therefore, no provision for deferred tax has been made in these |
|
| accounts. |
|
|
| 24.
Remuneration of Chief Executive, Directors and Executives |
|
|
|
|
CHIEF EXECUTIVE |
|
DIRECTORS |
|
EXECUTIVES |
|
|
1997 |
1996 |
1997 |
1996 |
1997 |
1996 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Managerial
Remuneration |
318,000 |
276,000 |
558,600 |
469,200 |
281,465 |
241,000 |
|
| Bonus |
|
46,000 |
23,000 |
78,200 |
39,100 |
32,500 |
13,000 |
|
| House
rent and utilities |
198,188 |
162,982 |
372,927 |
300,180 |
133,506 |
105,890 |
|
| Personal staff |
|
193,200 |
168,000 |
386,400 |
336,000 |
- |
- |
|
| Reimbursement
of |
|
|
| medical
expenses |
2,715 |
1,072 |
77,633 |
60,187 |
11,352 |
17,546 |
|
| Provident fund |
|
31,800 |
27,600 |
55,860 |
46,920 |
23,400 |
18,100 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
789,903 |
658,654 |
1,529,620 |
1,251,587 |
482,223 |
395,536 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| No. of person |
|
1 |
1 |
2 |
2 |
3 |
2 |
|
|
| In
addition, the Chief Executive, two Directors and three Executives are
provided |
|
| with
free use of company maintained cars, while Chief Executive and Directors |
|
| are
also provided with reimbursement of residential telephone bills. |
|
|
| Directors
fee totalling Rs. 1,000 (1996: Rs. 2,000/-) was paid to two Directors for |
|
| attending
two Board meetings (1995: 2 Meetings) held during the year. |
|
|
| 25. General |
|
| 25.1
Figures have been rearranged wherever necessary for comparison purposes. |
|
| 25.2
Figures have been rounded off to the nearest rupee. |
|
|
|
| NOTICE
OF ANNUAL MEETING |
|
| Notice
is hereby given that the Sixth Annual General Meeting of the shareholders |
|
| of
English Leasing Limited will be held at Marriott Hotel, Karachi on Tuesday, |
|
| December
30, 1997 at 9.30 a.m. to transact the following business: |
|
|
| 1.
To confirm the minutes of the Fifth Annual General Meeting held on December |
|
| 28, 1996. |
|
|
| 2.
To receive consider and adopt the audited accounts of the Company for the |
|
| period
ended June 30, 1997 together with the Directors' and Auditors' reports |
|
| thereon. |
|
|
| 3.
To appoint auditors for the year 1997-98 and fix their remuneration. The |
|
| present
Auditors M/s Rahim Iqbal Rafiq & Co. chartered Accountants, retire |
|
| and
being eligible, offer themselves for reappointment. |
|
|
| 4.
To transact any other business which may be placed before the Meeting with |
|
| the permission of the chair. |
|
|
| Notes: |
|
|
|
|
| 1.
The share Transfer Books of the Company will remain closed from December 22, |
|
| 1997
to December 30, 1997 (both days inclusive). |
|
|
| 2.
A member entitled to attend and vote at this Meeting is entitled to appoint
another |
|
| member
as his/her proxy to attend and vote instead of him/her. Proxies, in order ;~ |
|
| to
be effective, must be received at the Registered Office of the Company not
less ; |
|
| than
48 hours before the time for holding the Meeting. -~ |
|
|
| 3.
Members are required to notify the change of address, if any, immediately. |
|
|
| 4.
No gifts to be given to the shareholders as per rules. |
|
|
|
| PATTERN OF SHAREHOLDING |
|
| As
At June 30, 1997 |
|
|
|
| No. of |
|
| Share Holdings |
|
|
|
Total |
|
| Share Holders |
From |
|
To |
Shares Held |
|
|
| 76 |
1 |
- |
100 |
7,600 |
|
| 752 |
101 |
- |
500 |
354,300 |
|
| 177 |
501 |
- |
1,000 |
172,600 |
|
| 188 |
1,001 |
- |
5,000 |
484,900 |
|
| 34 |
5,001 |
- |
10,000 |
297,600 |
|
| 10 |
10,001 |
- |
15,000 |
124,400 |
|
| 5 |
15,001 |
- |
20,000 |
97,000 |
|
| 1 |
20,001 |
- |
25,000 |
20,500 |
|
| 10 |
25,001 |
- |
30,000 |
289 500 |
|
|
|
| 1 |
30,001 |
- |
35,000 |
32,200 |
|
| 5 |
35,001 |
- |
40,000 |
180,700 |
|
| 8 |
45,001 |
- |
50,000 |
399,500 |
|
| 3 |
50,001 |
- |
55,000 |
157,600 |
|
| 1 |
60,001 |
- |
65,000 |
63,700 |
|
| 2 |
70,001 |
- |
75,000 |
143,400 |
|
| 2 |
95,001 |
- |
100,000 |
200,000 |
|
| 2 |
145,001 |
- |
150,000 |
300,000 |
|
| 1 |
170,000 |
- |
175000 |
174,500 |
|
| 1 |
245,001 |
- |
250,000 |
250,000 |
|
| 1 |
285,001 |
- |
290,000 |
289,000 |
|
| 1 |
345,O01 |
- |
350,000 |
350,000 |
|
| 1 |
445,O01 |
- |
450,000 |
450,000 |
|
| 1 |
480,001 |
- |
485,000 |
480,500 |
|
| 1 |
595011 |
- |
600,000 |
600,000 |
|
| 1 |
825,001 |
- |
830,000 |
828,700 |
|
| 1 |
1,250,001 |
- |
1,255,000 |
1,251 800 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
|
|
| 1,286 |
|
8,000,000 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
|
|
| Sr.
Categories of |
Number of |
Total Shares |
Percentage of |
|
| No.
Shareholders |
Shareholders |
Held |
Issued Capital |
|
|
| 1 Individuals |
|
1,267 |
4,691,800 |
58.65 |
|
| 2
Investment Companies |
10 |
1,340,900 |
16.75 |
|
| 3
Insurance Companies |
1 |
480,500 |
6.01 |
|
| 4
Joint Stock Companies |
2 |
9,300 |
0.12 |
|
| 5
Financial Institutions |
5 |
1,476,500 |
18.46 |
|
| 6
Modaraba Companies |
1 |
1,000 |
0.01 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
|
|
1,286 |
8,000,000 |
100.00 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
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