| InterAsia Leasing |
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|
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|
|
| Annual
Report 1997 |
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| CONTENTS |
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| Corporate
Information |
|
| Financial
Highlight |
|
| Directors'
Report |
|
| Auditors'
Report |
|
| Balance
Sheet |
|
| Profit
& Loss Account |
|
| Cash
Flow Statement |
|
| Notes
to the Accounts |
|
|
| Pattern
of Share Holding |
|
| Notice
of Meeting |
|
|
|
| CORPORATE
INFORMATION |
|
|
| Board
of Directors |
|
|
| Mr.
Inam-ul Haq |
Chairman |
|
| Mr.
Haroon Sharif |
Chief Executive Officer |
|
| Mr.
Rauf Baksh Kadri |
|
| Mr.
Naveed A. Khan |
|
| Dr.
Najeeb Samie |
|
| Mr.
Ashfaq Yousaf Tola |
|
| Mr.
Rashid Zahir |
Nominee of Saudi Pak
Industrial & |
|
|
Agricultural Investment
Co. (Pvt) lad. |
|
|
| Company
Secretary |
|
| Syed
Fazal Ahmed, (ACMA) |
|
|
| LTV
Group Companies |
|
| Bankers
Equity Limited |
|
| Long
Term Venture Capital Modaraba |
|
| InterAsia
Leasing Company Limited |
|
| First
Interfund Modaraba |
|
| LTV
Housing Finance Limited |
|
|
| Bankers |
|
| Schon
Bank Ltd. |
|
| Crescent
Investment Bank Ltd. |
|
| Union
Bank Ltd. |
|
| Deutsche
Bank AG |
|
| Bank
of Khyber |
|
| First
Women Bank Ltd. |
|
|
| Legal
Advisors |
|
| Cornelius
Lane & Mufti |
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| Advocates
& Solicitors |
|
|
| Auditors |
|
| Khalid
Majid Husain Rahman, Chartered Accountants |
|
|
| Registrar
anti Share Transfer Office |
|
| Universal
Management Services (Pvt) Ltd. |
|
| Room
No. 205, Central Hotel |
|
| Abdullah
Haroon Road, Karachi, Pakistan |
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| Phone:
(92-21) 5688094 |
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|
| Head
Office/Registered Office |
|
| 107-West,
Fazle Haq Road, Blue Area |
|
| lslamabad
- 44000, Pakistan |
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| Phone: |
(92 51)275591-94 |
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| Fax: |
(92 51) 275599 |
|
| Email: |
IIcl@ilclisb.sdnpk.undp.org |
|
|
| Contact:
Tariq Rashid. Manager |
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|
| Liaison
Offices |
|
|
| Lahore |
|
| State
Life Building |
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| 1st
Floor. Sir Agha Khan Road |
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| Lahore,
Pakistan |
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| Phone: |
(92 42) 6303059,6303069 |
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| Fax: |
(92 42) 6303069 |
|
| Contact:
Zargham Khan Durrani. Vice President |
|
|
|
| Karachi |
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| Finance
& Trade Centre |
|
| I
st. Floor, Shahrah-e-Faisal |
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| Karachi,
Pakistan |
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| Phone:
(92 21) 5675381-4 |
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| Fax: (92 21) 5676289 |
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| Contact:
Dabeer Ahmed, Assistant Vice President |
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| FINANCIAL
HIGHLIGHT |
|
(Rs. in millions) |
|
|
1997 |
1996 |
1995 |
|
|
(six months) |
|
|
| Financial
Position |
|
| Total
Assets |
|
403.04 |
302.38 |
228.32 |
|
| Leased
Assets |
|
313.76 |
231.36 |
186.20 |
|
| Current
Liabilities |
|
141.24 |
144.98 |
81.25 |
|
| Long
Term Debts |
|
132.23 |
29.62 |
29.49 |
|
| Shareholder's
Equity |
|
129.58 |
127.79 |
117.58 |
|
|
|
|
| Earning
Information |
|
| Operating
Revenues |
|
60.70 |
38.38 |
16.85 |
|
| Net
Income after tax |
|
14.29 |
10.21 |
5.13 |
|
| - Return on Equity |
|
11.18% |
8.68% |
9.12% |
|
| a) Return on Assets |
|
4.05% |
3.85% |
4.84% |
|
|
|
| DIRECTORS'
REPORT AND REVIEW BY THE CHAIRMAN |
|
|
| The
directors of InterAsia Leasing Company Limited are pleased to present the
fifth |
|
| Annual
Report and Audited Accounts of the company for the year ended June 30, 1997. |
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| During
this period, your company has shown consistent growth in all areas of its |
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| operations.
The financial results of 1997 clearly reflect management's vision, |
|
| commitment
and efforts towards developing a productive investment portfolio for the |
|
| company. |
|
|
| Financial
Results |
|
| Lease
Investments |
Rs. |
313,765,045 |
|
| Expenditure |
Rs. |
44,076,571 |
|
| Profit
for the year |
Rs. |
14,289,499 |
|
| Net worth |
|
Rs. |
129,577,957 |
|
|
| Dividend |
|
| The
board of directors has recommended a cash dividend @ 12.5% for the year ended |
|
| June
30, 1997. |
|
|
| Performance
Review |
|
| While
carefully analyzing the prevailing economic conditions in Pakistan, the |
|
| management
of InterAsia Leasing has decided to make lease investments only in running |
|
| projects
with good track record. During 1996-97, company's net investment in leases |
|
| grew
35.9%, from Rs. 231.0 million in 1996 to Rs. 314.0 million in 1997 while its
total |
|
| asset
size grew by 33.3%. The growth in performing lease investments reflects in
the |
|
| profitability
as the net profit of the company rose to Rs. 14.3 million as compared to Rs. |
|
| 10.2
million in the preceding year. Your company exercised maximum prudence in the |
|
| credit
evaluation process as only recession insensitive companies were identified
and |
|
| vigorously
scrutinized for advancing lease financing. The lease size was kept smaller in |
|
| order
to diversify exposure risk as a result of which average lease investment has
gone |
|
| down
to Rs. 1.6 million per client in 1997 from Rs. 3.5 million in 1995. The
company |
|
| believes
in sustainable continuous growth in both assets and profitability. |
|
|
| Lease
portfolio of InterAsia Leasing is evenly spread among various sectors and
reaffirms |
|
| management's
policy of risk diversification. The company has managed to reduce its |
|
| exposures
in textile and cement sectors. It may also be pointed out that investment in |
|
| small
and medium size companies is made keeping in view their sectoral dispersion
and |
|
| competitive
edge. |
|
|
| lnterAsia's
focus on the productive |
|
| industrial
sectors of the country is also |
|
| reflected
by the fact that over 75% of its |
|
| asset
portfolio comprises of plant and |
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| machinery,
while the care has been |
|
| taken
to ensure that other assets of its |
|
| portfolio
are also used in productive |
|
| activities
of industrial and non-industrial |
|
| users. |
|
|
| Resource
Mobilization |
|
| The
slow down in economy, |
|
| unprecedented
rise in number of |
|
| financial
institutions and market |
|
| crowding
out by the government has |
|
| made
resource mobilization quite an |
|
| uphill
task for leasing companies. |
|
| Despite
this extremely competitive |
|
| situation,
InterAsia Leasing |
|
| successfully
managed to raise |
|
| adequate
additional funds during |
|
| 1996-97.
The major growth was |
|
| seen
in certificates of investment |
|
| (COl)
where your company managed |
|
| to
double the amount of COl from |
|
| the
last year. To reduce the |
|
| mismatch
of funds, long term credit |
|
| lines
of Rs. 26 million were also |
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| obtained.
The company is |
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| continuously
trying to raise long |
|
| term
matching funds from |
|
| international
financial institutions. |
|
| For
this, active negotiations are |
|
| underway
and management hopes to |
|
| materialize
sizable resources during |
|
| next
financial year. |
|
|
| Focus
On Small And Medium Enterprises (SMEs) |
|
| During
1996-1997, the small scale-manufacturing sector of the country as a whole has |
|
| grown
by 8.4% as compared to large scale manufacturing which has registered a
decline |
|
| of
1.4%. The cement sector which is part of large scale manufacturing sector has
shown |
|
| a
negative growth of 0.3%. The cotton ginning, yarn and cloth have registered a
negative |
|
| growth
rate of 11.5%, 2.2% and 4.8% respectively. (Source: Economic Survey 1996-97) |
|
|
| During
the past two years, InterAsia Leasing has shifted its marketing focus towards |
|
| Small
and Medium Enterprises (SMEs) in Pakistan. Small and Medium Enterprises |
|
| include
business houses in Pakistan belonging to relatively unorganized sector with
an |
|
| average
capital base of less than Rs. 5.0 million. Based on comprehensive research
and |
|
| in-depth
analysis, the management believes that SMEs with reasonable business history |
|
| are
better credit risk than providing lease financing to greenfield projects or
other larger |
|
| sectors
of industry. On the other hand, by supporting expansion plans of SMEs, your |
|
| company
makes a positive contribution in development of a broad based industrial |
|
| environment
in Pakistan. Presently, major portion of company's lease portfolio is |
|
| invested
in Small and Medium Enterprises |
|
|
| The
LTV Group Support |
|
| At
this point, it is pertinent to point out the support company enjoys as being
part of the |
|
| LTV
Group. The group has established itself among the major financial houses in |
|
| Pakistan
with total assets of Rs. 18.0 billion. After acquiring controlling shares of |
|
| Bankers
Equity Limited, a leading development financing institution (DFI), LTV Group |
|
| managed
to turn it around in one years time. Being part of LTV Group, InterAsia
Leasing |
|
| is
well positioned to take advantage of business opportunities by using group
image and |
|
| support
where ever required. |
|
|
| Economic
Environment |
|
| The
last 10 years have seen Pakistan position itself as a democratic country,
promoting |
|
| the
free enterprise system and encouraging the private sector and direct foreign |
|
| investment.
Even without the satisfaction of having "good governance,"
Pakistan's GDP |
|
| growth
performance has been quite impressive. From 1980-92 GDP grew at an average |
|
| of
6.5% from 1992-95 at 4.3%, and in 1996 at 5.6%. Industrial output has
generally |
|
| grown
faster than GDP growth. In addition to having its own domestic market of 130 |
|
| million
people, Pakistan is strategically located at a gateway to the newly
independent |
|
| Central
Asian Republics. This location gives it access to another 200 million people. |
|
| Pakistan's
trade deficit has been consistently between $2.5-$3.5 billion annually. This |
|
| has
put pressure on the country to introduce economic reforms by promoting the
private |
|
| sector
through privatization and deregulation making the currency more convertible
and |
|
| opening
its doors to foreign investment. The next year, 1998, should see the budget |
|
| deficit
being brought down from 8% to 6% of GDP, inflation being brought down from |
|
| 12%
to 9% and foreign exchange reserves climb up from $600 million to $1.5
billion. |
|
|
| The
existing leadership is regarded as pro-business and is taking positive and
forward |
|
| looking
measures. These reforms have also been welcomed internationally as Euromoney |
|
| comments
in its August 1997 issue "Pakistan is back in the fold of financially
respectable |
|
| nations.
The turnaround has been accomplished by a government committed to |
|
| stimulating
business and the private sector at the expense of state-owned entities. |
|
| Reserves
have improved, morale in the private sector is higher and IMF appears to |
|
| extend
its support". We hope that overall conditions remain favorable for a
positive |
|
| economic
outlook. |
|
|
| Leasing
Industry in Pakistan |
|
| According
to available information, over Rs. 46.0 billion of leasing transactions have |
|
| been
recorded so far in Pakistan. The outstanding combined lease portfolio size is |
|
| estimated
to be above Rs. 20.0 billion with growth rate of 10 to 15 percent per annum. |
|
|
| The
current size of the leasing market in Pakistan may not be very huge, but as a
matter of |
|
| fact,
in the last few years, leasing companies and leasing modarabas have been the
major |
|
| source
of fixed asset financing to other-wise capital starved manufacturing sector.
This |
|
| reason
alone is a major contributor towards the success and rapid growth of leasing |
|
| industry
in Pakistan. Among other factors, maturing of leasing companies and lessees' |
|
| greater
understanding of the leasing concept have also contributed significantly
towards |
|
| making
leasing a widely popular and accepted mode of alternate financing in the
country. |
|
|
| As
far as existence of sizable leasing market is concerned, experts believe that
in |
|
| developing
countries like Pakistan the potential leasing market is huge. As of June
1996, |
|
| lease
financing accounted for over 25% of the total sanctions and disbursen~ents in |
|
| Pakistan.
While in terms of market penetration Pakistan has still a long way to go, at
little |
|
| over
7% penetration means that 7% of the capital goods acquired in the country
were |
|
| through
leasing finance. Therefore, there is a lot of growth potential in the market
size |
|
| especially
InterAsia's target market i.e. the small scale manufacturing sector which has |
|
| over
the last few years grown faster than the overall manufacturing sector in
Pakistan. |
|
|
| Future
Vision |
|
| InterAsia
Leasing wishes to grow at the regional level by forming strategic alliances
with |
|
| international
financial institutions. The company also plans to develop specific purpose |
|
| lines
of credit for environment friendly projects. In general, company believes in |
|
| meaningful
contribution towards economic development of Pakistan and maximization of |
|
| our
shareholders wealth. The successful implementation of steps outlined above
will |
|
| allow
us to develop into even more productive and competitive enterprise. In this
regard, |
|
| we
look forward to grow along with you, our clients and the shareholders.
Finally, we are |
|
| committed
to having best team of professionals which is the most important factor in |
|
| being
successful in this age of severe competition. |
|
|
| Directors
would like to acknowledge dedication, commitment and hard work of the |
|
| employees
which contributed towards smooth operations of the company. We are also |
|
| grateful
to our shareholders for their confidence, the regulatory agencies for their
support. |
|
| and
to our clients for their trust in our services. |
|
|
For and on behalf of |
|
|
the Board of Directors |
|
|
|
-Sd- |
|
| Karachi |
|
Inam-ul Haq |
|
| November
17, 1997 |
|
Chairman |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| We
have audited the annexed balance sheet of InterAsia Leasing Company Limited
as at |
|
| June
30, 1997 and the related profit and loss account and cash flow statement
together |
|
| with
the notes forming part thereof, for the period then ended and we state that
we have |
|
| obtained
all the information and explanations which to the best of our knowledge and |
|
| belief
were necessary for the purposes of our audit and. after due verification
thereof, we |
|
| report
that: |
|
|
| a)
in our opinion, proper books of accounts 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 and cash flow statement
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 period was for the purposes of the
Company's |
|
| business;
and |
|
|
| (iii)
the business conducted, investments made and the expenditure incurred during |
|
| the
period were in accordance with the objects of the Company'; |
|
|
| c)
in our opinion and to the best of our information and according to the
explanations |
|
| given
to us, the balance sheet, profit had loss account and cash flow statement, |
|
| 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 cash flow statement for the period then ended and |
|
|
| d)
in our opinion Zakat deductible at source under Zakat and Ushr Ordinance,
1980 was |
|
| deducted
by the company and deposited in central zakat fund establishment under |
|
| section
7 of the ordinance. |
|
|
|
KHALID MAJID HUSAIN
RAHMAN |
|
| Islamabad |
|
Chartered A accountants |
|
| November
03, 1997 |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1997 |
|
|
|
|
1997 |
1996 |
|
|
Note |
(Rupees) |
(Rupees) |
|
|
|
|
| CAPITAL
AND LIABILITIES |
|
|
|
|
|
|
| Authorized
Capital |
|
|
|
|
|
|
| 20,000,000
ordinary |
|
|
|
| shares
of Rs. 10/- each |
|
|
200,000,000 |
200,000,000 |
|
|
|
============ |
============ |
|
| lssued,
subscribed and paid up capital |
|
|
|
|
|
| 10,000,000
ordinary shares of |
|
|
|
| Rs.
10/- each fully paid in cash |
|
|
100,000,000 |
100,000,000 |
|
|
|
|
| Revenue
reserves |
|
|
|
| Statutory |
|
|
10,915,591 |
8,136,692 |
|
| General |
|
|
10,000,000 |
10,000,000 |
|
| Contingencies |
|
3 |
3,137,650 |
2,313,600 |
|
| Un-appropriated
profit |
|
|
5,524,716 |
7,338,166 |
|
|
|
---------- |
---------- |
|
|
|
129,577,957 |
127,788,458 |
|
| Long
Term Deposits |
|
4 |
107,515,275 |
29,618,140 |
|
| Long
Term Finances |
|
5 |
24,708,401 |
- |
|
|
|
|
|
| Current
Liabilities |
|
|
|
|
|
|
| Current
portion of long term deposits |
|
23,127,548 |
34,289,121 |
|
| Current
maturity of long term finances |
|
9,240,000 |
- |
|
| Finances
under mark-up arrangements |
6 |
58,913,378 |
98,681,839 |
|
| Accrued
and other liabilities |
|
7 |
37,301,995 |
11,847,799 |
|
| Dividend
payable |
|
|
12,658,966 |
160,665 |
|
|
|
----------- |
----------- |
|
|
|
141,241,887 |
144,979,424 |
|
|
|
----------- |
----------- |
|
|
|
403,043,520 |
302,386,022 |
|
|
|
=========== |
=========== |
|
|
|
|
| The
annexed notes form an integral part of these financial statements. |
|
|
|
|
| ASSETS |
|
|
|
|
|
|
| Fixed Assets Tangible |
|
8 |
3,227,299 |
3,028,115 |
|
| Net
Investment In Leases |
|
|
|
| Minimum
lease payment receivables |
|
|
364,295,489 |
268,171,977 |
|
| Add:
Residual value of leased assets |
|
53,908,187 |
37,649,876 |
|
|
|
----------- |
----------- |
|
|
|
418,203,676 |
305,821,853 |
|
| Less:
the earned lease income |
|
|
(104,438,631) |
(74,461,849) |
|
|
|
----------- |
----------- |
|
| Net
investment in leases |
|
|
313,765,045 |
231,360,004 |
|
| Less:
Current portion of net |
|
|
|
| investment
in leases |
|
|
(81,077,932) |
(74,210,255) |
|
|
|
----------- |
----------- |
|
|
|
232,687,113 |
157,149,749 |
|
| Long
Term Investments |
|
9 |
42,503,528 |
41,351,768 |
|
| Long
Term Deposits |
|
|
188,070 |
16l,150 |
|
| Deferred
Costs |
|
10 |
3,619,044 |
,935,622 |
|
| Current
Assets |
|
|
|
|
|
|
| Current
portion of net investment in leases |
11 |
81,077,932 |
74,210,255 |
|
| Advances,
prepayments and other |
|
|
|
| receivables |
|
12 |
34,635,284 |
20,811,828 |
|
| Cash
and bank balances |
|
13 |
5,105,250 |
2,737,535 |
|
|
|
------------ |
------------ |
|
|
|
120,818,466 |
97,759,618 |
|
|
------------ |
------------ |
|
|
403,043,520 |
302,386,022 |
|
|
============= |
============= |
|
|
|
|
| -Sd- |
|
-Sd- |
|
| Inam
ul Haq |
|
Haroon Sharif |
|
| Chairman |
|
Chief Executive Officer |
|
|
|
|
|
|
|
|
|
| PROFIT AND LOSS ACCOUNT FOR |
|
|
| THE
PERIOD ENDED JUNE 30, 1997 |
|
|
|
1997 |
1996 |
|
|
Note |
(Rupees) |
(Rupees) |
|
| Revenue |
|
|
|
| Income
from leasing operations |
|
14 |
55,280,694 |
37,888,362 |
|
| lncome/(loss)
from investments |
|
15 |
3,042,128 |
(220,920) |
|
| Other
Income/(charges) |
|
16 |
2,373,464 |
715,493 |
|
|
|
------------- |
------------- |
|
|
|
60,696,286 |
38,382,935 |
|
| Expenses |
|
|
|
|
|
| Administrative
and operating expenses |
17 |
12,004,606 |
9,901,668 |
|
| Financial
charges |
|
18 |
32,071,965 |
15,400,902 |
|
|
|
------------- |
------------- |
|
|
|
44,076,571 |
25,302,570 |
|
|
|
------------- |
------------- |
|
| Profit/(Loss)
before taxation |
|
|
16,619,715 |
13,080.37 |
|
| Provision
for contingencies related to Investments |
1,453,497 |
-- |
|
| Provision
for potential lease losses |
|
599,517 |
2,478,639 |
|
|
|
------------- |
------------- |
|
|
|
2,053,014 |
2,478,639 |
|
|
|
------------- |
------------- |
|
| Profit/(Loss)
before taxation |
|
|
14,566,701 |
10,601,726 |
|
| Provision
for taxation |
|
|
|
|
|
| Current |
|
21 |
277,202 |
177,295 |
|
| Prior year |
|
|
-- |
217,709 |
|
|
|
------------- |
------------- |
|
|
|
277,202 |
395,004 |
|
|
|
------------- |
------------- |
|
|
|
14,289,499 |
10,206,722 |
|
| Un-appropriated
profit |
|
|
|
|
|
| brought
forward |
|
|
7,338,166 |
4,964,671 |
|
|
|
------------- |
------------- |
|
|
|
21,627,665 |
15,171,393 |
|
| Appropriations: |
|
|
|
|
| Transfer
to statutory reserve |
|
|
2,778,899 |
2,120,345 |
|
| Transfer
to contingencies reserve |
|
|
824,050 |
2,313,600 |
|
| Transfer
to general reserve |
|
|
-- |
3,399,282 |
|
| Proposed
dividends |
|
|
12,500,000 |
-- |
|
|
|
------------- |
------------- |
|
|
|
16,102,949 |
7,833,227 |
|
|
|
------------- |
------------- |
|
| Un-appropriated
profit carried to balance sheet |
|
5,524,716 |
7,338,166 |
|
|
|
============= |
============= |
|
|
|
|
|
| CASH
FLOW STATEMENTS FOR THE PERIOD |
|
| FROM
JULY 01, 1996 TO JUNE 30, 1997 |
|
1997 |
1996 |
|
|
(Rupees) |
(Rupees) |
|
|
| Net
profit after taxation |
|
14,289,499 |
10,206,722 |
|
| Adjustments
for: Depreciation |
|
750,923 |
674,823 |
|
| Deferred
costs amortized |
|
2,266,578 |
1,270,862 |
|
| (Income)/loss
from Investments |
|
(3,042,128) |
67,376 |
|
| (Gain)/
loss on sale of fixed assets |
|
(293,774) |
(59,878) |
|
| Provision
for diminution in value of investments |
1,453,497 |
--- |
|
|
------------- |
------------- |
|
| Operating
profit before working capital changes |
|
15,424,595 |
12,159,905 |
|
|
| Increase
in advances, prepayments and |
|
| other
receivables |
|
(13,823,456) |
(10,477.942) |
|
| Increase
in investment in leases |
|
(138,915,351) |
106,512,370) |
|
| Recoveries
from investment in leases |
|
56,510,310 |
61,171,654 |
|
| Increase
in long term deposits received |
|
66,735,562 |
31,882,831 |
|
| Increase/(decrease)
in accrued & other liabilities |
25,454,196 |
8,646,217 |
|
| Increase
in long term deposits |
|
(26,920) |
(19,900) |
|
|
------------- |
------------- |
|
| Cash
generated from operations |
|
(4,065,659) |
(15,309,510) |
|
|
------------- |
------------- |
|
| Net
cash generated/(used) in operating activities |
11,358,936 |
(3,149,605) |
|
|
| Cash
Flow From Investing Activities |
|
|
| Increase
in deferred cost |
|
(2,950,000) |
(781,034) |
|
| Purchase
of fixed assets |
|
(1,768,333) |
(1,237,615) |
|
| Proceeds
from sale of fixed assets |
|
1,112,000 |
1,045,589 |
|
| Increase
in long term investments |
|
(2,605,257) |
(17,197,425) |
|
| Income/(loss)
from investments |
|
3,042,128 |
(67,376) |
|
| Dividend
paid |
|
(1,699) |
358,850) |
|
|
------------- |
------------- |
|
| Net
cash generated/(used) in investing activities |
(3,171,161) |
(18,596,711) |
|
|
| Cash
Flow From Financing Activities |
|
| Finances
under mark-up arrangements |
|
(5,820,060) |
23,691,448 |
|
|
------------- |
------------- |
|
| Net (Decrease)/Increase In Cash
And |
|
| Cash
Equivalents |
|
2,367,715 |
1,945,132 |
|
|
| Cash
And Cash Equivalents At July 01. |
|
2,737,535 |
792,403 |
|
| Cash
And Cash Equivalents At June 30.1997 |
|
------------- |
------------- |
|
| And
June 30, 1996 Respectively |
|
5,105,250 |
2,737,535 |
|
|
============= |
============= |
|
|
|
|
|
| NOTES
TO THE FINANCIAL STATEMENTS |
|
| FOR
THE YEAR ENDED JUNE 30, 1997 |
|
|
| 1.
The Company and its Operations |
|
|
| The
Company was incorporated in Pakistan on November 30, 1992, as a public
limited company |
|
| and
is listed on the Karachi and Islamabad Stock Exchanges. The licence to carry
on leasing |
|
| business
was granted on April 26, 1993 and the certificate o[ commencement of business
was |
|
| obtained
on May 2, 1993. The main business activity of the Company is leasing. |
|
|
| 2.
Significant Accounting Policies |
|
|
|
| 2.1 Overall valuation policy |
|
|
|
| These
financial statements have been prepared under the historical cost convention. |
|
|
| 2.2.1
Lease |
|
|
| The
Company follows "financial method" in accounting for recognition of
lease |
|
| income.
Accordingly, at the time of commencement of a lease, the total unearned |
|
| lease
income consists of the excess of aggregate lease contract receivable plus |
|
| any
residual value over the cost of the leased asset. Unearned lease income is |
|
| taken
over the term of the lease, starting with the period in which the lease is |
|
| executed,
so as to produce a constant return on the net investment in the lease. |
|
|
| Front
end fee, commitment fee and other commissions are taken to income when |
|
| realised. |
|
|
| 2.2.2
Investments |
|
|
| Dividend
income is recognized when the right to receive payment is established. |
|
| Gain/profit
on trading of investments are taken to income when it is realised. |
|
|
| 2.2.3
Other |
|
| Other
income is recognised when earned. |
|
|
| 2.3
Operating fixed asset-tangible and depreciation |
|
| Operating
assets are stated at cost less accumulated depreciation. Depreciation is
charged |
|
| to
income applying the straight line method. In respect of additions and
deletions of assets |
|
| during
the year, depreciation is charged proportionately from/to the month of
acquisition |
|
| and
deletion respectively. |
|
|
| Major
extensions, renewals and improvements are capitalised. |
|
|
| Maintenance
and minor improvements are charged to income as and when incurred. Gains |
|
| and
losses on disposal of fixed assets are included in current income. |
|
|
| 2.4
Investments |
|
|
| 2.4.1 Long term investments are carried at cost. Provision is made for
permanent |
|
| diminution
in value of investments, if any. |
|
|
| 2.4.2
Short term investments are valued at the lower of average
cost and market value |
|
| determined
on an aggregate portfolio basis in total, using Karachi Stock |
|
| Exchange
quotations. |
|
|
| 2.5
Taxatiun |
|
|
|
| 2.5.1
Current |
|
|
| Provision
is made on taxable income at the prevailing rates of taxation |
|
| after
taking into accounts tax credits available, if any. |
|
|
| 2.5.2
Deferred |
|
|
| The
Company accounts for deferred taxation using the liability method |
|
| on
timing differences likely to reverse in the foreseeable future. Net |
|
| deferred
tax debits are not accounted for. |
|
|
| 2.6
Deferred costs |
|
|
| Deferred
costs are amortized during the period not exceeding five years from the |
|
| year
of incurrence thereof. |
|
|
| 2.7
Employees' retirement benefits |
|
|
| The
Company operates a contributory provident fund under a separate trust for |
|
| all
its permanent employees and contributions are recorded monthly in |
|
| accordance
with the fund rules to cover the obligations. |
|
|
| 3.
Contingencies Reserve |
|
|
| This
is a reserve created at 1% of Net Investment in Leases as of balance sheet
date to |
|
| meet
any contingencies that may arise on lease rentals receivable. |
|
|
|
1997 |
1996 |
|
|
(Rupees) |
(Rupees) |
|
| 4.
Long Term Deposits |
|
| Security
deposits (note 4. l ) |
|
53,908,187 |
37,649,876 |
|
| Less:
Current portion |
|
(8,622,913) |
(9,659,121) |
|
|
45,285,274 |
27,990,755 |
|
| Certificates
of investments (note 4.2) |
|
76,734,636 |
26,257,385 |
|
| Less:
Current portion |
|
(14,504,635) |
(24,630,000) |
|
|
62,230,001 |
1,627,385 |
|
|
------------- |
------------- |
|
|
107,515,275 |
29,618,140 |
|
|
============== |
============== |
|
| 4.1
These represent interest free security deposits received
from lessees tinder lease |
|
| contracts
and are repayable/adjustable at the expiry of the respective lease |
|
| period. |
|
|
|
|
| 4.2
These are registered PLS certificates of investments,
issued for the periods from |
|
| three
months to three years with the facility of pre-mature encashment beyond |
|
| minimum
three months. The mark-up rates range, from 15.5% to 21% per |
|
| annum
depending on the period of maturity. |
|
|
1997 |
1996 |
|
|
(Rupees) |
(Rupees) |
|
| 5.
Long Term Finances - Secured |
|
|
| Cash
finance |
|
| Crescent
Investment Bank |
|
(5.1) |
19,000,000 |
-- |
|
| Bankers
Equity Limited. |
|
(5.2) |
14,948,401 |
-- |
|
|
------------ |
------------ |
|
|
33,948,401 |
-- |
|
| Less:
Current maturity of long term finances |
|
(9,240,000) |
-- |
|
|
------------ |
------------ |
|
|
24,708,401 |
-- |
|
|
============ |
============ |
|
|
| 5.1 This facility carries mark-up at the rate of 22% per annum
payable quarterly and is |
|
| secured
by way of hypothecation of specified leased assets. This facility will mature
on |
|
| May
27, 1999. |
|
|
| 5.2 This represents two lines of credit amounting to Rs. 12,786,155
and Rs. 2,162,246 |
|
| and
carries mark-up at the rate of 21.5% and 23.5% respectively. This facility is
secured |
|
| against
endorsement of promissory notes and first charge on leased assets in favour
of the |
|
| bank
. These facilities will matured on October 06, 2001 and January 11,2002 |
|
| respectively. |
|
|
1997 |
1996 |
|
| 6.
Finance Under Mark-Up |
|
(Rupees) |
(Rupees) |
|
| Arrangement-
Secured. |
|
|
| Running
finance |
|
(6.1) |
17,913,378 |
18,881,839 |
|
| Cash
finances. |
|
(6.2) |
|
| Crescent
Investment Bank. |
|
|
-- |
20,000,000 |
|
| First International |
|
| Investment
Bank |
|
(6.2.1) |
19,000,000 |
20,000,000 |
|
| Bank
of Khyber |
|
(6.2.2) |
10,000,000 |
10,000,000 |
|
| Pak
Kuwait Investment Company |
|
|
|
| (Pvt.)
Ltd. |
|
|
-- |
4,000,000 |
|
| Saudi
Pak Industrial & Agricultural |
|
|
| Investment
Company (Pvt) Ltd. |
|
(6.2.3) |
1 0,000,000 |
10,000,000 |
|
| First
Crescent Modaraba. |
|
|
-- |
1,000,000 |
|
| Morahaba
financing |
|
|
|
| AI-Towfeek
Investment Bank |
|
(6.3) |
2,000,000 |
12,000,000 |
|
| First
Interfund Modaraba. |
|
-- |
2,800,000 |
|
|
------------ |
------------ |
|
|
58,913,378 |
98,681,839 |
|
|
============ |
============ |
|
|
| 6.1 The Company has obtained a running finance facility from Schon
Bank of Rs. 20.00 |
|
| million
under mark-up arrangement and is secured by first hypothecation charge of Rs. |
|
| 26,301,000
over specific leased assets of the company and related receivables. This |
|
| facility
carries mark-up at the rate of 20% per annum payable quarterly during the
period. |
|
| The
total finance and mark-up is repayable by December 31, 1997. |
|
|
| 6.2
Cash finance |
|
|
| 6.2.1 The mark-up on this Facility is 18.5% to 21.5% per annum payable
quarterly and |
|
| is
secured by way of hypothecation of specific leased assets. This Facility is |
|
| repayable
on April 1998. |
|
|
| 6.2.2 This finance Facility carries mark-up at the rate of paisas 50
per rupee one |
|
| thousand
per day to paisas ~5 per rupee one thousand per day payable quaterly, |
|
| and
is secured by way of hypothecation of leased assets valuing Rs. 20 Million. |
|
| Half
of this facility bas been rolled over up to June 20, 1998 and the other half
is |
|
| payable
in September 1997. |
|
|
|
| 6.2.3 This facility carries mark-up at the rate of 19.75% to 21.5% per
annum payable |
|
| quarterly
and is secured by way of hypothecation of specific lease rental |
|
| receivables.
This facility is repayable on December 27, 1997. |
|
|
| Morabaha
finance |
|
|
| 6.3. This represents agency agreement for purchase and sale of good.
This facility carries a |
|
| mark-up
at the rate of 19% per annum payable on quarterly basis. This facility will
be |
|
| discharged
in full on July 01, 1997. |
|
|
|
|
|
1997 |
1996 |
|
|
(Rupees) |
(Rupees) |
|
| 7.
Accrued And Other Liabilities |
|
|
| Accrued
liabilities |
|
169,362 |
172,107 |
|
| Accrued
financial charges-secured finances |
|
7,688,316 |
1,847,186 |
|
| Advance
front-end fee and commission |
|
800,436 |
325,507 |
|
| Provision
for taxation |
|
672,206 |
395 004 |
|
| Tax
Payable - deducted at source |
|
1,253,894 |
276,257 |
|
| Payable
to lessees |
|
23,147,541 |
7,203,277 |
|
| Other
Payables |
|
3,570,240 |
1,628,461 |
|
|
------------ |
------------ |
|
|
37,301,995 |
11,847,799 |
|
|
============ |
============ |
|
|
|
|
| 8.
Operating Fixed Assets-Tangible |
|
|
(Amount in Rupees) |
|
|
|
COST |
|
DEPRECIATION |
|
|
-------------------------------------------- |
RATE |
-------------------------------------------- |
|
|
AS AT |
|
AS AT |
% |
AS AT |
FOR THE |
AS AT |
W .D. V. |
|
|
July 01, |
ADDITIONS |
DELETIONS |
JUNE |
|
July |
PERIOD |
JUNE |
AS AT JUNE |
|
| DESCRIPTION |
1996 |
|
30, 1997 |
|
01,1996 |
|
30, 1997 |
30, 1997 |
|
|
-------------------------------------------- |
|
-------------------------------------------- |
|
| Lease
hold improvements |
347,519 |
-- |
-- |
347,519 |
10 |
91,394 |
34,752 |
126,146 |
221,373 |
|
| Electric
fittings |
77,216 |
3,720 |
-- |
80,936 |
10 |
18,040 |
7,722 |
25,762 |
55,174 |
|
| Equipment |
|
1,521,947 |
224,641 |
-- |
1,746,588 |
20 |
445,428 |
335,511 |
780,939 |
965,649 |
|
| Furniture
& Fixture |
602,447 |
39,050 |
-- |
641.50 |
10 |
102,789 |
63,004 |
165,793 |
475,704 |
|
| Vehicles |
|
1,703,292 |
1,500,922 |
1,128,345 |
2,075,869 |
20 |
566,665 |
309,934 |
566,470 |
1,509,399 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| 1997 |
|
4,252.42 |
1,768,333 |
1,128,345 |
4,892,409 |
|
1,224,316 |
750,923 |
1,665,110 |
3,227,299 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
| 1996 |
|
4,644,644 |
1,233,695 |
1,625,918 |
4,252,421 |
|
1,193,610 |
674,823 |
1224,306 |
3,028,115 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
|
| 8.1
Deletions |
|
|
|
The following assets were
sold during the year: |
(Amount in Rupees) |
|
|
| Description |
Cost |
Accumulated |
Book |
Sale |
Gain |
Sold to |
|
Mode |
|
|
|
depreciation |
value |
proceeds |
(loss) |
|
|
|
| Vehicles |
|
|
| Toyota
Corolla |
396,000 |
237,600 |
158,400 |
460,000 |
301,600 |
Abdul Baseer |
Negotiation |
|
| Suzuki
Mehran |
178,500 |
32,725 |
145,775 |
200,000 |
54,225 |
Ilyas Ahmad |
-do- |
|
| Charade |
|
233,845 |
7,794 |
226,051 |
192,000 |
(34,051) |
Haider |
|
-do- |
|
| Suzuki
Mehran |
320,000 |
32,000 |
288,000 |
260,000 |
(28,000) |
S.Mehboob Ahmad |
-do- |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
| 1997 |
|
1,128,345 |
310,119 |
818,226 |
1,112,000 |
293,774 |
|
|
|
=========== |
=========== |
=========== |
=========== |
=========== |
|
| 1996 |
|
1,629,838 |
644,126 |
985,711 |
1,045,589 |
59,877 |
|
|
=========== |
=========== |
=========== |
=========== |
=========== |
|
|
|
|
|
| 9.
LONG TERM INVESTMENTS |
|
1997 |
1996 |
|
|
(Rupees) |
(Rupees) |
|
| Number of |
|
| Shares/Certi- |
|
| ficates |
Listed Modarabas: |
|
|
|
-Associated undertaking |
|
|
| 99,940 |
First lnterfund Modaraba |
|
1,830,751 |
1,830,751 |
|
|
(Managed by universal
Management |
|
|
Services (Pvt) Ltd.) |
|
|
Certificates of Rupees
10/- each |
|
|
| 445,237 |
Long Term Venture Capital
Modaraba |
|
5,068,395 |
5,068,395 |
|
|
(Managed by National
Technology |
|
|
Development Corporation
Ltd.) |
|
|
Certificates of Rupees
5/- each |
|
|
|
|
| 89,976 |
Long Term Venture Capital
Modaraba |
|
2,699,280 |
2,849,240 |
|
|
(Redeemable Capital
Certificates ) |
|
|
------------- |
------------- |
|
| |
|
(note
9.1 ) |
9,598,426 |
9,748,386 |
|
|
Listed Companies: |
|
|
|
- Associate undertaking |
|
|
| 810,81 |
Bankers Equity Limited |
|
15,152,602 |
14,999,985 |
|
|
Shares of Rupees 10/-
each |
|
|
|
-Other |
|
|
| 117,562 |
Medi Glass Company
Limited |
|
|
Shares of Rupees 10/-
each |
|
752,397 |
752,397 |
|
|
------------- |
------------- |
|
|
(note 9.2) |
|
15,904,999 |
15,752,382 |
|
|
|
Unlisted: |
|
|
|
|
|
|
|
- Associated undertaking |
|
|
| 1,250,000 |
LTV Housing Finance Ltd. |
|
12,500,000 |
12,500,000 |
|
|
(formerly Interfund
Housing Finance Ltd.) |
|
|
ordinary shares of |
|
|
Rupees. 10/- each (note
9.3) |
|
|
|
-Other |
|
|
| 59,536 |
Federal Investment Bonds |
|
5,953,600 |
3,351,000 |
|
|
Return @ 14% per annum |
|
|
payable on half yearly
basis |
|
|
------------- |
------------- |
|
|
43,957,025 |
41,351,768 |
|
| less: |
|
| Provision
for diminution in value of |
(note 9.4) |
(1,453,497) |
-- |
|
|
------------- |
------------- |
|
| Investments: |
|
42,503,528 |
41,351,768 |
|
|
============= |
============= |
|
|
| 9.1
The aggregate market value of listed modaraba certificates at the end of
financial year |
|
| amounted
to Rupees 4,651.025. |
|
|
| 9.2
The aggregate market rate of listed shares at the end of June 30, 1997 is Rs.
7,706,332. |
|
|
| 9.3
The aggregate break-up value of the investments at the end of June 30, 1997
is Rupees |
|
| 10,083,750. |
|
|
| 9.4
Provision has been made in the annual accounts against diminution in value of
long term |
|
| investment
in shares. The provision has been made against the certificates of First |
|
| Interfund
Modaraba and shares of Medi Glass Ltd. Management feels that provision for
shares of |
|
| Long
Term Venture Capital Modaraba is not required as permanent diminution in the
value has |
|
| not
taken place keeping in view the movement in quoted price of the share during
the year. |
|
|
|
1997 |
1996 |
|
|
(Rupees) |
(Rupees) |
|
| 10.
Deferred Costs |
|
|
| Preliminary
expenses |
|
301,225 |
465,529 |
|
| Expenses
on issue of shares |
|
| (including
brokerage, bankers' |
|
| and
underwriters' commission) |
|
629,534 |
972,918 |
|
| Others |
|
4,954,863 |
2,768,037 |
|
|
5,885,622 |
4,206,484 |
|
| Less:
Amortized during the period |
|
(2,266,578) |
(1,270,862) |
|
|
---------- |
---------- |
|
|
3,619,044 |
2,935,622 |
|
|
========== |
========== |
|
| 11.
Current Portion Of Net |
|
| Investment
In Leases. |
|
|
| Total
Lease rental receivable during the year amounts to Rs. 131,900,068 out of
which |
|
| Rs.
81,077,932 represents current maturity of principal portion. The balance
amount represents |
|
| the
financial income receivable by the company against its lease investments
during 1997-98. |
|
|
| 12.
Advances, Prepayments & Other Receivables |
|
|
| Advances
- considered good |
|
| to
chief executive (note 12.1 ) |
|
66,213 |
-- |
|
| to staff |
|
51,671 |
144,567 |
|
| against
lease |
|
-- |
204,671 |
|
| Taxation |
|
1,021,372 |
800,566 |
|
| Prepayments |
|
315,194 |
240,384 |
|
| Receivables
against sale of investments |
|
9,884,191 |
276,340 |
|
| Accrued
return on investments |
|
2,632,963 |
938,852 |
|
| Others |
|
27,713,460 |
2,480,089 |
|
| Rental
receivables |
|
18,549,737 |
18,204,998 |
|
| Less: |
|
| Provision
for potential lease losses |
|
(599,517) |
(2,478,639) |
|
|
---------- |
---------- |
|
|
17,950,220 |
15,726,359 |
|
|
---------- |
---------- |
|
|
34,635,284 |
20,811,828 |
|
|
========== |
========== |
|
|
|
|
| 12.1
Maximum amount due from Chief Executive at the end of any month during the
period was |
|
| Rupees
0.141 million. This relates to house rent advance to the CEO during the
period. (1996: |
|
| Nil). |
|
|
|
|
|
| 13.
Cash Anti Bank Balances |
|
|
| Cash
in hand |
|
528 |
4,474 |
|
| Cash
with banks - Current accounts |
|
5,046,611 |
2,708,670 |
|
|
- PLS accounts |
|
58,111 |
24,391 |
|
|
---------- |
---------- |
|
|
5,105,250 |
2,737,535 |
|
|
========== |
========== |
|
| 14.
Income From Leasing Operations |
|
|
| Income
on lease contracts |
|
53,946,324 |
37,028,243 |
|
| Front-end
fee and documentation charges |
|
1,334,370 |
860,119 |
|
|
---------- |
---------- |
|
|
55,280,694 |
37,888,362 |
|
|
========== |
========== |
|
| 15.
Income (Loss)/ From Investments |
|
|
| Net
gain/(loss) on sale of listed securities |
|
3,042,128 |
(220,920) |
|
|
---------- |
---------- |
|
|
3,042,128 |
(220,920) |
|
|
========== |
========== |
|
| 16.
Other Income |
|
|
| Return
on Government Securities |
|
697,183 |
153,544 |
|
| Dividend
Income |
|
1,216,215 |
445,237 |
|
| Gain
on disposal of fixed assets |
|
293,774 |
59,878 |
|
| Profit
on bank accounts |
|
6,600 |
18,506 |
|
| Others |
|
159,692 |
38,328 |
|
|
---------- |
---------- |
|
|
2,373,464 |
715,493 |
|
|
========== |
========== |
|
|
| 17.
Administrative And Operating Expenses |
|
|
| Salaries,
allowances and benefits |
|
5,465,222 |
3,994,282 |
|
| Conveyance
and travelling |
|
398,164 |
324.41 |
|
| Directors'
fee |
|
2,000 |
-- |
|
| Rent,
rates and taxes |
|
380,606 |
579.42 |
|
| Electricity,
gas and water |
|
153,684 |
94.16 |
|
| Advertisements |
|
63,859 |
88.87 |
|
| Printing,
Stationery and supplies |
|
234,986 |
282.58 |
|
| Postage
and courier |
|
69,023 |
45.69 |
|
| Fax
and Telephone |
|
662,327 |
499.62 |
|
| Newspapers,
books and magazine |
|
19,678 |
11,521 |
|
| Fees
and Subscription |
|
525,247 |
857,516 |
|
| Entertainment |
|
94,510 |
65,693 |
|
| Insurance |
|
110,027 |
163,617 |
|
| Repairs
and up-keeps |
|
448,435 |
441,915 |
|
| Legal |
|
195,000 |
38,250 |
|
| Auditors'
remuneration: |
|
| Audit
fee '-- statutory |
|
40,000 |
35,000 |
|
|
-- others |
|
62,693 |
40,000 |
|
| Out
of pocket reimbursements |
|
13,550 |
10,645 |
|
|
---------- |
---------- |
|
|
|
116,243 |
85,645 |
|
| Deferred
costs amortized |
|
2,266,578 |
1,270,862 |
|
| Professional
tax |
|
--- |
10,000 |
|
| Depression |
|
750,923 |
674,823 |
|
| Misc
Expenses |
|
48,094 |
372,788 |
|
|
---------- |
---------- |
|
|
12,004,606 |
9,901,668 |
|
|
========== |
========== |
|
|
|
|
| 18.
Financial Charges |
|
|
|
| Financial
expenses |
|
31,780,298 |
15,215,325 |
|
| Bank
charges |
|
291,667 |
185,577 |
|
|
---------- |
---------- |
|
|
32,071,965 |
15,400,902 |
|
|
========== |
========== |
|
|
| 19.
Transactions With Associated |
|
| Undertakings |
|
| Expenses
sharing charged to |
|
199,565 |
165,765 |
|
| Expenses
sharing charged by |
|
277,741 |
107,743 |
|
| Purchase
of services |
|
-- |
295,830 |
|
| Fixed
assets transferred to |
|
-- |
324,931 |
|
| Fixed
assets transferred from |
|
-- |
701,520 |
|
| Leases
transferred to |
|
-- |
-- |
|
| Others |
|
17,572,543 |
-- |
|
|
|
|
| 20.
Remuneration Of Chief Executive |
|
| Director
And Executives |
|
|
|
For the period from July
01, |
|
For the period from July
01, |
|
|
1996 to June 30, 1997 |
|
1995 to June 30,1996 |
|
|
----------------------------------------------- |
----------------------------------------------- |
|
Chief |
|
Chief |
|
|
|
Executive |
Director |
Executives |
Total |
Executive |
Director |
Executives |
Total |
|
|
----------------------------------------------- |
----------------------------------------------- |
| Managerial
remuneration |
380,004 |
--- |
939,924 |
1.319,928 |
277,800 |
103,578 |
684,891 |
1,066,269 |
|
| Leave
passage |
|
25.00 |
264,832 |
111,833 |
401,665 |
80,000 |
11,086 |
35,200 |
126,286 |
|
| Perquisites
and benefits |
501,996 |
--- |
650,441 |
l,152,437 |
267,300 |
77,450 |
611,926 |
956,676 |
|
| Provident
fund |
|
38,004 |
--- |
93,992 |
131,996 |
27,780 |
--- |
52,992 |
80,772 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Rupees |
|
945,004 |
264,832 |
1,796,190 |
3,006,026 |
652,880 |
192,114 |
1,385,009 |
2,230,003 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
| Number |
|
1 |
1 |
6 |
8 |
I |
1 |
7 |
9 |
|
|
| 20.1
The chief executive and executives are also provided with free use of Company |
|
| maintained
cars. |
|
|
| 21.
Taxation |
|
|
| 21.1
Provision for minimum tax at 0.5% of the turnover under section 80D of the
Income Tax |
|
| Ordinance, 1979 has been made in these
financial statements, while no provision for |
|
| current tax has been made due to assessed
tax carry forward losses upto assessment year |
|
| 1994-95 and estimated taxable loss for the
year 1996 and 1997 of Rs. 26.132 Million. |
|
|
| 21.2
At June 30,1997 deferred tax debits not accounted for is Rupees 17.27 million |
|
| (1996:
Rupees 12.78 million). |
|
|
| 22.
General |
|
|
| 22.1
All figures have been rounded off to the nearest rupee. |
|
| 22.2
Figures have been rearranged wherever necessary to facilitate comparison. |
|
|
|
|
| PATTERN
OF SHAREHOLDING AS JUNE 30, 1997 |
|
|
|
|
|
|
|
| Number of |
|
Share Holdings |
Total Shares |
|
| Share-holders |
|
Held |
|
|
From |
To |
|
| 214 |
1 |
500 |
|
94,600 |
|
| 115 |
501 |
1,000 |
|
113,600 |
|
| 53 |
1,001 |
2,000 |
|
100,800 |
|
| 19 |
2,001 |
3,000 |
|
52,500 |
|
| 19 |
3,001 |
4,000 |
|
74,300 |
|
| 25 |
4,001 |
5,000 |
|
122,600 |
|
| 37 |
5,001 |
10,000 |
|
321,700 |
|
| 20 |
10,001 |
20,000 |
|
318,300 |
|
| 4 |
20,001 |
30,000 |
|
109,700 |
|
| 2 |
30,001 |
40,000 |
|
71,500 |
|
| 4 |
40,001 |
50,000 |
|
190,500 |
|
| 7 |
50,001 |
100,000 |
|
652,000 |
|
| 3 |
100,001 |
150,000 |
|
320,600 |
|
| 3 |
150,001 |
200,000 |
|
566,700 |
|
| 3 |
200,001 |
250,000 |
|
690,800 |
|
| 1 |
250,001 |
300,000 |
|
292,500 |
|
| 3 |
450,001 |
500,000 |
|
1,470,000 |
|
| 4 |
550,001 |
Above |
|
4,437,300 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
|
| 536 |
|
Total |
|
10,000,000 |
|
| ========== |
========== |
========== |
========== |
========== |
|
|
| Category
of |
Number of |
|
| Share-
holders |
Share-holders |
Shares held |
Percentage |
|
|
| Individuals |
|
497 |
2,431,300 |
24.31 |
|
| Banks |
|
3 |
254,000 |
2.54 |
|
| Financial
Institutions |
|
14 |
3,827,600 |
38.28 |
|
| Insurance
Companies |
|
3 |
60,000 |
0.60 |
|
| Modarabas
Companies |
|
9 |
3,043,400 |
30.43 |
|
| Private
Ltd. Companies |
|
5 |
95,500 |
0.96 |
|
| Investment
Companies |
|
3 |
284,200 |
2.84 |
|
| Joint
Stock Companies |
|
2 |
4,000 |
0.04 |
|
|
---------- |
---------- |
---------- |
|
|
536 |
10,000,000 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
|
| NOTICE
OF MEETING |
|
|
| Notice
is hereby given that Fifth Annual General Meeting of INTERASIA LEASING |
|
| COMPANY
LIMITED will be held at the registered office of the Company, 107-West, |
|
| Fazle
Haq Road, Blue Area, Islamabad, on Monday December 08, 1997 at 11.00 a.m. to |
|
| transact
the following business. |
|
|
| Ordinary
Business |
|
|
| 1.
To confirm the Minutes of the Fourth Annual General Meeting held on October
31, |
|
| 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' report thereon. |
|
|
| 3.
To declare dividends as proposed by the board of directors. |
|
|
| 4.
To appoint Auditors for the year 1997-98 and fix their remuneration. The
present |
|
| auditors,
M/s. Khalid Majid Husain Rehman, Chartered Accountants retire and being |
|
| eligible,
offer themselves for reappointment. |
|
|
| 5.
To transact any other business with the permission of the Chair. |
|
|
|
By order of the Board |
|
|
Syed Fazal Ahmed |
|
| Islamabad:
November 17, 1997. |
Company Secretary |
|
|
| Notes: |
|
|
| 1.
The Register of Members of the Company will remain closed from November 28, |
|
| 1997
to December 05, 1997.(both days inclusive). |
|
|
| 2.
A member entitled to attend and vote at the meeting is entitled to appoint a
proxy to |
|
| attend
and vote for him/her. A proxy need not to be a member of the Company. |
|
|
| 3.
An instrument of proxy and the Power of Attorney or other authority (if any)
under |
|
| which
it is signed, or a notarially certified copy of such power of attorney, in
order to |
|
| be
valid must be deposited at the registered office of the Company not less than
48 |
|
| hours
before the time of the meeting. |
|
|
| 4.
Members are advised to lodge shares for transfer at the office of our
Registrar, |
|
| Universal Management Services (Pvt) Ltd,
Room Nos. 205-Central Hotel, Abdullah |
|
| Haroon Road, Karachi. Tel. No. 5688094. |
|
|
| 5.
Members are requested to notify any change in addresses immediately. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
