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NATIONAL DEVELOPMENT LEASING CORPORATION LIMITED 
(Annual Report 1997)
Contents
Board of Directors
Directors' Report
Financial Highlights
Auditors' Report
Financial Statements
Pattern of Shareholding
Company Information
Notice of Meeting
Board of Directors
Mr. Mohammad Naseem Chairman
Mr. Mohammad Salim Director
Mr. S.M. Saleem Director
Mr. Abdul Shakoor Director
Mr. Mohammad Sharif Director
Syed Ghulam Abbas Director
Mr. Shahid Hassan Director
Mr. Mubashir A. Akhtar Managing Director & Chief Executive
Directors' Report to the Shareholders
The Board of Directors are pleased to announce the financial results for the twelve months
ended June 30, 1997.
Board of Directors
The composition of the Board of Directors has changed since the last Annual General Meeting
as under:
Mr. Mohammad Naseem, Mr. Mohammad Salim, Mr. S.M. Saleera, Mr. Abdul Shakoor, Syed Ghulam
Abbas and Mr. Shahid Hassan became due for election during the year 1997 and were elected to the
Board in the Extra Ordinary General Meeting held on August 8, 1997. Mr. S.M. Naseem did not offer
himself for directorship. The Board wishes to place on record its appreciation for his services rendered
to the Corporation. In his position, Mr. Mohammad Sharif was elected as Director. Mr. Tayyeb Afzal
resigned as Managing Director & Chief Executive and Mr. Mubashir A. Akhtar took charge on
October 16, 1997 as Managing Director & Chief Executive.
Financials
Your Directors are pleased to report an after tax profit of Rs 102.156 million during the twelve
months ended June 30, 1997, and propose that profits be appropriated as under:
(Rupees in 000's)
Eighteen
months to
Note Jun 30 Jun 30
Profit before Taxation 129,656 266,619
Provision for Taxation 27,500 55,000
-------- --------
Profit after Taxation 102,156 211,619
Unappropriated profit brought forward 4,195 983
-------- --------
Profit available for appropriation 106,351 212,602
APPROPRIATIONS
Proposed Final Dividend 15% (30% ... 1996) 53,914 107,827
Reserve for issue of Bonus Shares 17,976 -
Transfer to General Reserve 28,000 90,000
Transfer to Special Reserve 5,108 10,580
104,998 208,407
-------- --------
Unappropriated Profit carried forward 1,353 4,195
========= =========
Dividend
Your Directors are pleased to recommend a cash dividend of 15% and issue of Bonus Shares
at 5.0012% for the year ended June 30, 1997.
The Economy
The financial year saw three governments with as many strategic policy directions. No
wonder uncertainties resulted in macro indicators depicting a slowing down in economic
growth. GDP in real terms grew at less than half the target rate of 6.3%, and only slightly
above the population growth rate, implying virtually no improvement. Industrial as well as
agricultural production contracted. While the abnormally low growth in the agriculture
was attributable to natural vagaries, large scale industrial output was impacted by its
inability to adjust to the more competitive domestic and international environment, rising
costs of imported inputs and low labour productivity.
In addition, lack of investor confidence resulted in the level of Gross Fixed Investment actually
declining by 3.6%. This proved to be a significant inhabiting factor for the economy and
particularly for the leasing sector, which relies heavily on the overall investment climate.
While the above factors subdued economic expansion, the full effect of the broad based
structural reforms introduced in the last few months of the financial year are expected
to be apparent in the coming year. Resilience of the agriculture sector will help attain
GDP growth in the medium to long term.
The Year in Review
In a less than an encouraging economic backdrop, your Corporation, which commands a
significant presence in the sector, has been touched by the variables affecting the economy. Your
Corporation adopted a conscious approach in realigning the business prospects and
consolidating its financial position. Accordingly, the focus has been to accelerate recoveries,
maintain a diversified lease portfolio and manage the mismatch of funds. We believe that to
reduce undue sensitivity to economic uncertainties it is prudent to tread safely and not
accumulate risky assets rather than demonstrate growth in business.
Your Corporation has endeavoured to improve the quality of lease portfolio through
sectorial diversification, venturing into hitherto unexplored profitable sectors of the
economy. Prudent risk management assisted in streamlining risk profiles keeping more in
mind the long term benefits. In the face of rising financial charges, we adopted for a
conservative approach in recognising income.
With improved market conditions, we expect recoveries to better existing levels. We continue to
make concerted efforts to improve recoveries, especially from defaulters. Your Corporation did not
hesitate in initiating several legal proceedings.
In order to increase our approach in the retail segment of the market, your Corporation launched
another new product - Flexilease - in collaboration with a major automobile manufacturing concern,
employing advanced advertising techniques that ensure greater market penetration. The opening
of retail branch in Karachi bears witness to our commitment to tap the retail market.
On the asset creation side, we are also focusing on leasing small ticket items in the form of General
Product Leasing. Having developed a substantial portfolio of big ticket items, we are confident that
your Corporation has developed the requisite expertise that is crucial for success in a retail
environment.
Credit Rating
By the Grace of Almighty Allah, your Corporation received from the Pakistan Credit Rating Agency
(PACRA), an 'AI' rating for Short Term Credit and an 'A' rating for Long Term Credit. We believe
these ratings are an illustration of the financial resilience of the Corporation, given changing
industry dynamics. In reaching the size that we are, care has been taken to build, in the words of
PACRA, "a large pool of reserves that provide adequate cushion to absorb potential loan losses."
Funding for the Future
The industry inherently faces the challenge of mismatch between tenors of sources of
funds and their utilisation. We therefore, continue to solicit long term lines from multilateral
agencies with whom our past performance has held us in good stead. At the same time,
your Corporation is evaluating non traditional avenues of funding like Asset
Securitisation, Term Finance Certificates, etc.
We have also been successful in establishing credit lines worth Rs 500 million. In
addition, we have undrawn approved lines worth USD13.8 million from multilateral
agencies. Another GBP 7.5 million is under negotiation. It is heartening to report that in
addition we have a Foreign Currency Deposit base well in excess of USD 15 million,
which includes a deposit from an off shore foreign bank acquired after careful analysis
by them of our financials.
Mission Statement
National Leasing will continue to play its role as a premier leasing company. We will focus on
our core business, while diversifying the portfolio. In continuation of our policy, exposure
in textile sector reduced to 21% compared to 25% in June 1996. We have curbed activities
in equity markets, which are expected to show volatility.
We strongly believe that the important factor that will empower us to ride through the upcoming
challenges are based upon striking a balance between accumulating good assets, accelerating
recoveries and consolidating.
Your Corporation is poised to face upcoming challenges in an ever changing environment.
We intend to step into the next century with a more focused outlook on planning, management
and a clear, long term vision encompassing all aspects of the business. The potential is
immense, and we hope to set our sights with undistracted attention to the business we know
best - leasing.
Auditors
The retiring auditors Messrs Ford, Rhodes, Robson, Morrow, Chartered Accountants, being
eligible, offer themselves for reappointment.
Acknowledgment
We offer our sincere gratitude to the Board of Directors, for their continued guidance and support.
Their insight has given us the edge over competition, and allowed us the leverage to adapt
to an aggressively changing environment.
Our sincere thanks to the thousands of Customers and Clients for their faith and trust in us
and for their patience and understanding in dealing with us.
We also wish to place on record our appreciation of all staff members, who have demonstrated
unflinching support for the Corporation, and have risen to the demands of the organisation
time and again.
Shareholding Pattern
A statement reflecting the pattern of shareholding is attached to the Annual Report.
On behalf of the Board
Mubashir A. Akhtar
Managing Director
& Chief Executive
Karachi, November 7, 1997.
Financial Highlights
Rupees
Year ended June 30 1997 1996
Shareholders' Equity 1,118 m 1,139 m
Balance Sheet Footings 5,312 m 5,272 m
Total Assets Leased 8,623 m 8,080 m
Lease Income 625 m 581 m
Current Ratio 0.99 0.81
Auditors' Report to the Members
We have audited the annexed balance sheet of National Development Leasing Corporation Limited
as at June 30, 1997 and related profit and loss account and statement of changes in financial
position, together with the notes forming part thereof, for the period then ended and we state that
we have obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit and, after due verification thereof, we
report that:
(a) in our opinion, proper books of account have been kept by the Company as required by
the Companies Ordinance, 1984;
(b) in our opinion:
(i) the balance sheet and profit and loss account together with the notes thereto have
been drawn up in conformity with the Companies Ordinance, 1984 and are in
agreement with the books of account and are further in accordance with accounting
policies consistently applied;
(ii) the expenditure incurred during the period was for the purpose of the Company's
business; and
(iii) the business conducted, investments made and the expenditure incurred during
the period were in accordance with the objects of the Company;
(c) in our opinion and to the best of our information and according to the explanations given to
us, the balance sheet, profit and loss account and the statement of changes in financial
position, together with the notes forming part thereof, give the information required by
the Companies Ordinance, 1984 in the manner so required and respectively give a true and
fair view of the state of the Company's affairs as at June 30, 1997 and of the profit and the
changes in financial position for the period then ended; and
(d) in our opinion Zakat deductible at source under the Zakat and Ushr Ordinance, 1980,
was deducted by the Company and deposited in the Central Zakat Fund established under
Section 7 of that Ordinance.
Karachi, November 13, 1997. Ford, Rhodes, Robson, Morrow
Chartered Accountants
Balance Sheet as at June 30, 1997
(Rupees in 000's)
Note Jun 30 Jun 30
Capital and Liabilities 1997 1996
SHARE CAPITAL AND RESERVES
Authorised Capital
100,000,000 Ordinary Shares of ' Rs 5 each 500,000 500,000
========= =========
Issued, Subscribed and Paid-up Capital 3 359,424 359,424
Reserves 4 828,240 779,998
-------- --------
Shareholders' Equity 1,187,664 1,139,422
DEFERRED LIABILITIES
Provision for Gratuity 4,417 3,280
LONG TERM FINANCE AND LIABILITIES
Long Term Finance 5 1,012,420 738,150
Certificates of Investment 6 139,957 221,528
Deposits on Lease Contracts 7 480,282 466,988
Obligation under Finance Lease 8 1,551 -
1,634,210 1,426,666
CURRENT LIABILITIES
Short Term Finance 9 423,512 478,365
Current Maturity
Long Term Finance 5 265,222 255,951
Certificates of Investment 6 1,436,454 1,533,915
Deposits on Lease Contracts 7 51,688 48,538
Obligation under Finance Lease 8 1,027 -
Accrued Expenses and Other Liabilities 10 252,965 264,715
Provision for Taxation 11 904 13,286
Proposed Final Dividend 53,914 107,827
2,485,686 2,702,597
COMMITMENTS AND CONTINGENCIES 12
--------- ---------
5,311,977 5,271,965
========= =========
The annexed notes form an integral part of the financial statements.
The auditors' report is annexed thereto.
(Rupees in 000's)
Note Jun 30 Jun 30
Property and Assets 1997 1996
FIXED ASSETS 13 60,104 56,307
LONG TERM ADVANCES 14 9,663 12,238
LONG TERM DEPOSITS 15 268,790 115,714
LONG TERM INVESTMENTS 16 55,182 49,667
NET INVESTMENT IN LEASE FINANCE 17 2,427,185 2,840,463
LONG TERM PREPAYMENTS & DEFERRED COSTS 18 11,379 10,638
CURRENT ASSETS
Short Term Finance 19 248,853 293,613
Current Maturity
Net Investment in Lease Finance 17 1,339,798 1,130,535
Long Term Deposits 15 66,692 -
Short Term Investments 20 422,699 353,870
Income Accrued or Due 51,343 47,977
Advances, Deposits, Prepayments and
Other Receivables 21 268,923 224,636
Cash and Bank Balances 22 81,366 136,307
2,479,674 2,186,938
--------- ---------
5,311,977 5,271,965
========== ==========
Mohammad Salim Mubashir A. Akhtar
Director Managing Director
& Chief Executive
Profit and Loss Account for the year ended June 30, 1997
(Rupees in 000's)
Eighteen
months to
Note Jun 30 Jun 30
1997 1996
INCOME
Lease Income 624,683 806,810
Income from Investments / Finance 23 144,839 252,187
Other Income 24 15,422 56,044
784,944 1,115,041
EXPENDITURE
Financial charges / return on borrowings 25 241,517 277,715
Return on Certificates of Investment 275,527 366,768
Administrative and Operating Expenses 26 82,364 110,045
599,408 754,528
--------- ---------
OPERATING PROFIT BEFORE PROVISIONS 185,536 360,513
PROVISIONS - Doubtful Debts 55,473 34,503
- Investments - provision / write-off 407 59,391
55,880 93,894
--------- ---------
PROFIT BEFORE TAXATION 129,656 266,619
PROVISION FOR TAXATION 11 27,500 55,000
--------- ---------
NET PROFIT AFTER TAXATION 102,156 211,619
UNAPPROPRIATED PROFIT BROUGHT FORWARD 4,195 983
PROFIT AVAILABLE FOR APPROPRIATION 106,351 212,602
APPROPRIATIONS
Proposed Final Dividend 15% (1996: 30%) 53,914 107,827
Transfer to General Reserve 28,000 90,000
Transfer to Special Reserve 5,108 10,580
Reserve for Issue of Bonus Shares 17,976 -
104,998 208,407
--------- ---------
UNAPPROPRIATED PROFIT CARRIED FORWARD 1,353 4,195
========= =========
The annexed notes form an integral part of the financial statements.
Mohammad Salim Mubashir A. Akhtar
Director Managing Director
& Chief Executive
Statement of Changes in Financial Position (Cash Flow Statement)
for the year ended June 30,1997
(Rupees in 000's)
Eighteen
months to
Jun 30 Jun 30
1997 1996
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation 129,656 266,619
Add: Adjustments to reconcile profit to net
cash provided by operating activities
Fixed assets - depreciation 8,831 10,972
- profit on sale (184) (5,053)
Provision - for doubtful debts 55,473 34,523
- for gratuity 1,137 1,690
- for investments 407 59,391
Amortisation of deferred costs 637 3,041
Income from long term investments (20,205) (38,554)
Mark-up from borrowings and return on
Certificates of Investment 517,044 485,246
563,140 551,256
692,796 817,875
Increase in operating assets (86,786) (309,853)
(Decrease)/increase in operating liabilities (66,603) 325,569
-------- --------
539,407 833,591
Income tax paid (39,882) (85,797)
-------- --------
Net cash generated from operating activities 499,525 747,794
CASH FLOW FROM INVESTING ACTIVITIES
Long Term Deposits (219,768) (115,714)
Long Term Investments - income 20,205 38,554
- additions (5,922 (2,950)
Fixed Assets - sale 1,017 9,090
- purchases (13,463) (18,038)
Investment in lease finance (net of recoveries) 163,608 (1,262,788)
Long term advances (net of recoveries) 2,575 (4,472)
Recoveries of long term finance - 17,807
Net cash used in investing activities (51,748) (1,338,511)
-------- --------
Total carried forward 447,777 (590,717)
========= =========
Total brought forward 447,777 (590,717)
CASH FLOW FROM FINANCING ACTIVITIES
Mark-up on borrowings/Certificates
of Investment (517,044) (485,246)
Repayment of long term finance 286,119 56,606
Certificates of Investment (179,032) 873,724
Deposits from lessees - net 16,444 176,099
Issue of share capital - 51,700
Prepayments/Deferred cost (1,378) (6,311)
Dividend paid (107,827) (38,775)
Net Cash generated from financing activities (502,718) 627,797
--------- ---------
Net (decrease)/increase in Cash (54,941) 37,080
CASH AND BANK BALANCES AT THE BEGINNING
OF THE YEAR 136,307 99,227
CASH AND BANK BALANCES AT THE END OF THE YEAR 81,366 136,307
Mohammad Salim Mubashir A. Akhtar
Director Managing Director
& Chief Executive
Notes to the Financial Statements for the year ended June 30, 1997
1. THE CORPORATION AND ITS ACTIVITIES
The Corporation was incorporated in 1984 in Pakistan and is listed on the three stock exchanges
of Pakistan. The principal business activity is conducted through branches in all the major cities
in Pakistan comprising leasing, obtaining and providing finance. It has also been declared a
Development Finance Institution (DFI) by the Government of Pakistan.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Accounting convention
The financial statements are prepared under the historical cost convention.
2.2 Taxation
The charge for current taxation for the year, is based on taxable income at the current rates
of taxation which is computed as if all leases are operating leases, after taking into account
allowances for the year available for depreciation in respect of fixed assets under lease finance.
The tax effect for deferred taxation is calculated using the liability method on all major
timing differences which are expected to reverse within the next three years.
2.3 Employees' retirement benefits
The Corporation operates a contributory provident fund for all its permanent employees
and contributions are made by the Corporation in accordance with the fund rules. The
Corporation also has an unfunded staff gratuity scheme in respect of which provisions
are made.
2.4 Fixed assets and depreciation
Fixed assets are stated at cost less accumulated depreciation. Depreciation is charged to
income applying the straight line method over the estimated useful lives.
2.5 Foreign currencies
Assets and liabilities in foreign currencies are recorded at the exchange rate applicable on
the transaction date (except where forward exchange contracts have been entered into) and
are translated at the balance sheet date at the exchange rates prevailing at year end.
Gains and losses on translation are taken to the Profit and Loss Account.
2.6 Government Securities repurchase transactions
The Corporation also enters into transactions of repurchase or resale of registered Government
Securities at contracted rates for specified periods of time. These are recorded as follows:
(a) in the case of sale under repurchase obligations the securities are deleted from the books
at cost and the charges arising from the differential in sale and repurchase values are accrued
on a pro-rata basis and recorded under income from Government Securities. Upon repurchase
the securities are reinstated at their respective original cost.
(b) in the case of purchases under resale obligations the securities are booked at the contracted
purchase price and the differential of the contracted purchase and resale prices is amortised
over the period of the contract and recorded under income from Government Securities.
2.7 Deferred Cost
Front end fees are amortized over the period during which the benefits accrue in the underlying
transactions.
2.8 Investments
Long term investments are stated at cost. Provision is made for any diminution in value, if
considered permanent. Short term investments are stated at lower of cost and market value on a
portfolio basis.
2.9 Revenue recognition
The financing method is used in accounting for income on direct financing leases. Under this
method the unearned income - i.e. the excess of aggregate lease rentals and the estimated
residual value over the net investment (cost of leased asset) - is deferred and then amortized to
income over the term of the lease, applying the annuity method to produce a constant rate of
return on the net investment in the lease.
Mark-up profit earned on term finance certificates and finance on a mark-up/buy-back agreement
basis is recognised on a time proportion basis taking account of, where applicable, the relevant
buy-back dates and prices, or where a specific schedule of recoveries is prescribed in the agreement,
the respective dates when mark-up is required to be paid to the Corporation.
Income on Government Securities is recognised by pro-rata accruals of the differential in cost
and maturity values and/or the coupon rate applicable.
Fees for project examination, commitment fee and other commission etc., are recognised as
income when realised.
2.10 Provision for doubtful debts
The Corporation maintains provision for doubtful debts at a level that can be reasonably
anticipated keeping in view the nature of its overall business activities and considers this to be
adequate to meet potential losses.
(Rupees in 000's)
Jun 30 Jun 30
1997 1996
3. ISSUED, SUBSCRIBED AND PAID-UP CAPITAL
Ordinary Shares 33,395,943 (1996: 33,395,943)
of Rs 5 each fully paid in cash 166,979 166,979
Ordinary Shares 38,488,956 (1996: 38,488,956)
of Rs 5 each issued as Bonus Shares 192,445 192,445
--------- ---------
359,424 359,424
4. RESERVES ========= =========
4.1 Capital Reserves
. Reserve for Contingencies 44,241 44,241
. Special Reserves (Reserve Fund) 
Balance at the beginning of the year 30,228 19,648
Transfer from Profit and Loss Account 5,108 10,580
Balance at the end of the year 35,336 30,228
. Premium on Issue of Shares
Balance at the beginning of the year 90,334 36,709
Additions during the period - 53,625
Balance at the end of the year 90,334 90,334
· Reserve for Issue of Bonus Shares
Balance at the beginning of the year - 64,625
Transfer from Profit and Loss Account 17,976 -
Transfer to Share Capital - 64,625
Balance at the end of the year 17,976 -
--------- ---------
187,887 164,803
4.2 Revenue Reserves
General Reserves
Balance at the beginning of the year 611,000 521,000
Transfer from Profit and Loss Account 28,000 90,000
Balance at the end of the year 639,000 611,000
--------- ---------
826,887 775,803
4.3 Unappropriated Profit 1,353 4,195
--------- ---------
828,240 779,998
========= =========
The Reserve for Contingencies is a specific purpose reserve created to provide for possible losses on
lease receivables which the directors consider, at present, not available for dividend distribution.
The Special Reserve represents profits set aside as required under the State Bank of Pakistan rules
for Non-Banking Financial Institutions.
5. LONG TERM FINANCE Note
5.1 Refinance credits from
State Bank of Pakistan
- unsecured 5.1.1
- Fourth PLS finance of Rs 150 million 4,783 8,450
- sixth PLS finance of Rs 113.690 million 6,042 12,981
- Seventh PLS finance of Rs 68.666 million 2,651 5,435
--------- ---------
13,476 26,866
Less: Current maturities 13,476 26,866
--------- ---------
- -
========= =========
5.2 Loans from Asian Development Bank
- secured 5.2.1
- Second loan of Rs 322.379 million - 67,658
- Third loan of Rs 109.352 million 18,152 36,392
- Fourth loan of Rs 251.516 million 104,799 146,717
- Fifth loan of Rs 407.028 million 407,028 -
--------- ---------
529,979 250,767
Less: Current maturities 60,072 127,790
--------- ---------
469,907 122,977
========= =========
5.3 Demand Finance from Muslim Commercial
Bank Limited - secured 5.3.1
- Credit line of Rs 100 million 10,000 30,000
- Credit line of Rs 50 million 10,000 20,000
--------- ---------
20,000 50,000
Less: Current maturities 20,000 30,000
--------- ---------
- 20,000
========= =========
5.4 Loan from International Finance
Corporation - secured 5.4.1
-  Loan 'A' of Rs 382.243 million 279,515 438,968
-  Loan 'B' of Rs 113.175 million 100,739 -
--------- ---------
380,254 438,968
Less: Current maturities 110,162 71,295
--------- ---------
270,092 367,673
========= =========
5.5 Loan from First International Investment
Bank Limited - secured 5.5.1
- Credit facility of Rs 113 million 113,000 113,000
- Credit facility of Rs 200.6 million 200,600 -
--------- ---------
313,600 113,000
Less: Current maturities 56,512 -
--------- ---------
257,088 113,000
========= =========
5.6 Loan from Allied Bank of Pakistan Limited
- secured - 100,000
========= =========
5.7 Loans from Askari Commercial Bank Ltd. 5.7.1
Credit facility of Rs 14.5 million-unsecured 14,500 14,500
Credit facility of Rs 10 million-secured 5,833 -
--------- ---------
20,333 14,500
Less: Current maturities 5,000 -
--------- ---------
15,333 14,500
========= =========
Long term portion 1,012,420 738,150
========= =========
Current maturities 265,222 255,951
========= =========
5.1.1 Refinance Credits from State Bank of Pakistan
The refinance credits are allocated for the financing of domestic sales of locally manufactured
machinery. The credits are repayable in seventeen equal half-yearly instalments commencing
four years after the date of first withdrawal. However, the excess of the outstanding finance
from the State Bank of Pakistan under the credit lines over the outstanding finance extended
by the Corporation under the related credit lines must be repaid immediately.
Under the terms of the agreements, the State Bank of Pakistan will share in the over-all profit
(before tax) of the Corporation, subject to a maximum of 1% in respect of the fourth line and 4%
in respect of the sixth and seventh lines of the amount of refinance availed.
5.2.1 Loans from Asian Development Bank (ADB)
Second loan - US$ 15 million equivalent to Pak Rupees 322,379,875
This represents full utilization of funds out of a US$ 15 million credit for financing the foreign
exchange component of various projects. The loan carries interest at the ADB rate, as determined
by ADB for each interest period plus 1% on the principal amount of loan withdrawn from the
loan account and outstanding from time to time which shall be determined by ADB in accordance
with the exchange risk pooling system. Since loans are covered under the exchange risk scheme
of the Government of Pakistan, the return on these funds is payable at 11% per annum inclusive
of exchange risk fee. The loan is secured by hypothecation of specific leased assets and related
receivables. The loan is repayable in twelve semi-annual instalments which commenced from
July 15, 1991.
Third loan - US$ 5 million equivalent to Pak Rupees 109,352,000
The loan carries interest at 1% per annum above LIBOR. The loan is covered under the exchange
risk scheme of the Government of Pakistan at an exchange risk fee of not less than the difference
between 11% and the interest rate payable to ADB subject to a minimum of 3% per annum.
The loan is secured by hypothecation of specific leased assets and related receivables. The loan
is repayable in twelve semi-annual instalments which commenced from July 15, 1992.
Fourth loan - US$ 10 million equivalent to Pak Rupees 251,516,273
The return on these funds is payable at 9.4% per annum directly to ADB. In addition, an exchange
risk fee at 6.07% per annum based on the Pak Rupee equivalent of the amount withdrawn and
outstanding is payable to the Government of Pakistan.
The loan is secured by hypothecation of specific leased assets and related receivables. The loan
is repayable in twelve semi-annual instalments which commenced from January 15, 1994.
Fifth loan - US$ 10 million equivalent to Pak Rupees 407,028,000
Interest on this loan is payable at 2.5% per annum above LIBOR
The Loan is secured by hypothecation of specified leased assets and related receivables. The
loan is repayable in ten semi-annual instalments which will commence from March 25, 1999.
5.3.1 Demand Finance from Muslim Commercial Bank Limited - Rs 150 million
These are automatically annually renewable facilities with five year validity periods unless
earlier terminated by notice by the bank. These are secured by hypothecation of specific leased
assets and related receivables.
In the case of Rs 100 million line (granted November, 1992) the rate of mark-up is Rs 0.43 per
Rs 1,000 per day with repayments in twenty quarterly instalments which commenced from
February 28, 1993 and in the case of Rs 50 million line (granted in April, 1993) the rate of
mark-up is Rs 0.49 per Rs 1,000 per day with repayment in ten half-yearly instalments which
commenced from October 1, 1993.
5.4.1 Loans from International Finance Corporation (IFC)
Loan 'A' US$ 12.5 million equivalent to Pak Rupees 382,242,500
This represents borrowing for the structuring of lease financing, mainly for industrial plant
and equipment. The return on these funds is payable at 8.5% per annum directly to IFC. In
addition, an exchange risk fee at 6.66% per annum based on the Rupee equivalent of the amount
withdrawn and outstanding is payable to the Government of Pakistan.
The loan is secured by hypothecation of specific leased assets and related receivables. The loan
is repayable in sixteen semi-annual equal installments which commenced from June 15, 1996.
Loan 'B' US$ 3.3 million equivalent to Pak Rupees 113,175,000
This represents second tranche of IFC loan for financing leases, mainly plant and equipment.
The return on these funds is payable at 2.75% above LIBOR.
The loan is repayable in four equal half-yearly instalments commencing from June 15, 1997.
The loan is secured by hypothecation of specific leased assets and related receivables.
5.5.1 Loan from First International Investment Bank Limited
Credit facility of Rs 113,000,000
This represents loan from First International Investment Bank Limited against the security of
long term U.S. dollar deposits. This loan is repayable in four equal instalments. The first
installment is repayable on August 15, 1997 and the remaining instalments are repayable on
half yearly basis which is linked to the maturity of the long term deposits. The return is
payable at 13.19% on quarterly basis. This loan is secured against long term US$ deposit.
Credit facility of Rs 200,600,000
This loan is repayable in ten equal instalments. The first installment is payable on March 15, 1999 and
the remaining installments are repayable on a half yearly basis which is related to the maturity of
the long term deposit. The return is payable at the rate ranging from 14.275% to 14.90% per annum
on quarterly basis.
5.7.1 Loans from Askari Commercial Bank Limited
Credit line of Rs 14,500,000
This represents a Rs 14.5 million facility from Askari Commercial Bank Ltd. The loan is
repayable on May 2, 1999 and the return payable is 17.75% per annum on semi-annual basis.
Credit Line of Rs 10,000,000
This facility is payable in twenty four equal monthly instalments which commenced from
September 4, 1996. The mark-up rate is payable at 18.25% per annum. This facility is secured
by first hypothecation charge over leased assets, related rights and interests.
6. CERTIFICATES OF INVESTMENT
A financial instrument has been developed by the Corporation to mobilize savings, with the
permission of the Government of Pakistan. It is based on the profit loss sharing principle.
Returns are presently being paid at predetermined rates negotiated with customers. Terms range
from three months to five years, except where specifically held as security against leases.
The Corporation has introduced a scheme of foreign currency Certificates of Investment, duly
authorised by the State Bank of Pakistan. Terms range from three months to twenty four months,
profits are 6.0625% to 7.3125%. Foreign currency is exchanged for Pak Rupees from the State
Bank of Pakistan, which provides the foreign exchange risk cover.
Maturities falling within the next twelve months are included under current liabilities.
7. DEPOSITS ON LEASE CONTRACTS
These represent security deposits against lease contracts repayable on the expiry of the lease.
8. OBLIGATION UNDER FINANCE LEASE
This represents the outstanding balance against obligation under finance lease. The rate of
return used as discounting factor is 16.32% per annum. The lease rentals are payable in equal
quarterly instalments.
The future minimum lease payments to which the company is committed under the lease
agreement are as follows:
(Rupees in 000's)
Note Jun 30 Jun 30
1997 1996
June 1998 1,387 -
June 1999 1,733 -
--------- ---------
3,120 -
Less: Financial charge allocated to
future periods 542 -
--------- ---------
2,578 -
Current Maturity 1,027 -
--------- ---------
1,551 -
========== ==========
9. SHORT TERM FINANCE
Morabaha Finance - secured 9.10 50,000 30,000
Term Finance
Ban secured 9.20 68,473 --
Banks-unsecured -- 65,500
Financial Institutions-unsecured 86,100 151,600
Others-unsecured 94,939 -
--------- ---------
249,512 217,100
Running Finance - secured 9.30 124,000 231,265
--------- ---------
423,512 478,365
========== ==========
9.1 This represents morabaha facility from a scheduled bank and is secured by
hypothecation of specific leased assets and related receivables.
9.2 This represents facility from a scheduled bank and is secured by hypothecation of specific
  leased assets and related receivables. Mark-up is payable at 17% per annum.
9.3 These represent facilities from scheduled banks amounting to Rs 185 million
  (1996: Rs 397 million) and carry mark-up ranging from 47 to 50 paisas per rupees 1,000
  per day on a daily product basis. These arrangements are secured by hypothecation of
  leased assets and related receivables.
(Rupees in 000's)
Note Jun 30 Jun 30
1997 1996
10. ACCRUED EXPENSES AND OTHER LIABILITIES
These comprise:
Financial charges on long term finance
- secured 122,280 90,783
- unsecured 416 756
Financial charges on short term finance
 - secured 12,226 4,571
- unsecured 3,157 4,289
Return on Certificates of Investment 46,869 65,559
Advance Rentals 17,538 9,233
Due to Lessees 11,104 36,279
Advance against Certificates of Investment 1,782 10,259
Accrued Liabilities 7,993 14,252
Other Liabilities [includes unclaimed
dividends Rs 449,246 (1996: Rs 320,903)] 21,029 9,963
Deposit Margins and Advances against 8,571 18,771
 Letters of Credit --------- ---------
252,965 264,715
========== ==========
11. TAXATION
The Corporation's income-tax assessments for and up to the assessment year 1995-96 (accounting year 1994)
have been completed in which certain claims (in respect of depreciation) for deduction against income for tax
purposes have been disallowed by the income-tax authorities. The Corporation has filed appeals at appropriate
appellate forums against these disallowances and are of the opinion that these appeals will be successful.
Deferred taxation arising out of timing differences between book and income-tax revenues or charges
is estimated at Rs 206 million (1996: Rs 282 million). As of June 30, 1997, no provision has been
made for these timing differences as these are not expected to reverse within the next three years.
12. COMMITMENTS AND CONTINGENCIES
12.1 Commitments
Letters of Credit 12.20 4,691,239 7,920,323
Government Securities repurchase
commitments 296,200 503,000
========= =========
12.2 The terms and conditions for opening of the letters of credit amounting to Rs 4,550,144,488
require cash collateral for the amount prior to any shipment and negotiation by the
beneficiaries of such letters of credit through the advising banks.
12.3 Contingencies
Guarantees issued 6,280 14,350
========= =========
12.4 Forward exchange purchase and sale contracts amounting to Rs 764,463,179
(1996: Rs 69,500,844) have been entered into.
13. FIXED ASSETS- TANGIBLE
Accumulated
Item Cost at the Cost at the Depreciation Book Value Depreciation Rate
beginning Additions/ end of at the end at the end for the per
of the year (disposals) the year of the year of the year year annum
Note Rupees in 000's
OWNED
Land and Buildings 13.10 39,954 6,258 46,212 5,370 40,842 1,565 10
Equipment 16,821 979 17,730 11,669 6,061 2,127 20
(70)
Furniture and Fixtures 5,492 323 5,462 3,398 2,064 513 10
(353)
Vehicles 21,414 2,449 21,732 13,400 8,332 3,900 25
(2,131)
Leasehold improvements 2,198 - 2,198 2,156 42 35 33
---------- ---------- ---------- ---------- ---------- ---------- ----------
85,879 10,009 93,334 35,993 57,341 8,140
(2,554)
---------- ---------- ---------- ---------- ---------- ---------- ----------
LEASED
Computer - 3,454 3,454 691 2,763 691 20
---------- ---------- ---------- ---------- ---------- ---------- ----------
June 1997 85,879 13,463 96,788 36,684 60,104 8,831
(2,554)
========== ========== ========== ========== ========== ========== ==========
June 1996 76,293 18,038 85,879 29,572 56,307 10,972
(8,452)
========== ========== ========== ========== ========== ========== ==========
13.1 The land and building includes (at cost) an amount of Rs 31.3 million (1996: Rs 31.3 million)
for which mutation has not yet been arranged. Efforts are in progress to obtain mutation in
favour of the Corporation.
13.2 Disposal of tangible fixed assets
Written
Original Accumulated Down Sale  Profit/
Description Cost Depreciation Value proceeds (loss) Mode of disposal
Rupees in 000's
Equipment 33 27 6 6 - Sold to Mr Tauhidi, employee, on final settlement
Furniture 28 11 17 8 (9) Sold to Mr Tauhidi, employee, on final settlement
Equipment 68 55 13 13 - Sold to Mr Tahir Raza, employee, on final settlement
Furniture 7 3 4 4 - Sold to Mr Tahir Raza, employee, on final settlement
Equipment 60 34 26 44 18 Sold to Mr Shahab Qureshi, employee, on final
settlement
Equipment 75 14 61 64 3 Sold to Mr Shabbir Kasbati, employee, on final
settlement
Equipment 118 18 100 88 (12) Sold to Mr Sohail Nawaz, employee, on final
settlement
Furniture 35 3 32 32 Sold to Mr Sohail Nawaz, employee, on final
settlement
Suzuki Sedan 403 403 - 1 1 Sold to Mr Tahir Raza, employee, on final settlement
Suzuki Sedan 318 318 - 67 67 Sold to Mr Shahab Qureshi, employee, on final
settlement
Toyota Cressida 1,146 764 382 420 38  Insurance Claim
Suzuki Mehran 263 71 192 270 78 Insurance Claim
--------- --------- --------- --------- ---------
June 1997 2,554 1,721 833 1,017 184
========= ========= ========= ========= =========
June 1996 8,452 4,415     4,037 9,090 5,053
========= ========= ========= ========= =========
14. LONG TERM ADVANCES - CONSIDERED GOOD
(Rupees in 000's)
Jun 30 Jun 30
1997 1996
Advances to Employees
Chief Executive 1,669 4,239
Executives 8,089 8,180
Other Employees 2,098 1,664
--------- ---------
11,856 14,083
Less: Instalments recoverable within one year 2,193 1,845
--------- ---------
9,663 12,238
========= =========
Outstanding for over three years 2,901 4,906
Others 8,955 9,177
--------- ---------
11,856 14,083
========= =========
Maximum aggregate amount outstanding during
the period in respect of chief executive and executives 12,419 13,569
========= =========
Advances to executives represent house, personal, transport and computer loans granted in
accordance with the Employees' Service Regulations.
Advance to chief executive represents house loan in accordance with terms of agreement. The approval
of Regulatory Agency requires recovery to be made within 10 years from the date of disbursement.
15. LONG TERM DEPOSITS Note
Foreign Currency Deposits 5.5.1 335,482 115,714
Less: Current Maturity 66,692 -
--------- ---------
268,790 115,714
========= =========
16. LONG TERM INVESTMENTS
Listed Companies/Modarabas - at average cost
[aggregate market value Rs 40,185,182
(1996: Rs 33,583,735)] 27.2 45,182 39,667
Unlisted Companies 27.3 10,000 10,000
--------- ---------
55,182 49,667
========= =========
17. NET INVESTMENT IN LEASE FINANCE
Minimum Lease Payments Receivable 4,498,605 4,862,231
Add: Residual Value of leased assets 596,687 575,268
--------- ---------
5,095,292 5,437,499
--------- ---------
Less: Unearned Income 1,237,340 1,402,241
Provision of Doubtful Receivables 90,969 64,260
--------- ---------
1,328,309 1,466,501
Net Investment in Lease Finance 3,766,983 3,970,998
Less: Current portion of net investment 1,339,798 1,130,535
--------- ---------
Long term portion of net investment 2,427,185 2,840,463
========= =========
17.1 Minimum lease payments receivables over the twelve months amount to Rs 1,552,536,850
(1996: Rs 1,532,953,139).
17.2 The net investment in lease finance includes Rs 251,602,177 (1996: Rs 16,211,859) in respect
of associated companies. Maximum outstanding during the period was Rs 266,645,844
(1996: Rs 24,975,972).
18. LONG TERM PREPAYMENTS AND DEFERRED COSTS
Prepayments 5,896 4,518
Deferred Cost
Front End Fees 6,120 9,161
Less: Amortised during the year 637 3,041
5,483 6,120
--------- ---------
11,379 10,638
========= =========
19. SHORT TERM FINANCE -Secured
Considered Good
Finance under Mark-up Agreements
net of provision of Rs 5,376,776 (1996: Rs 2,125,888) - 3,251
Finance under Buy-back Agreements
net of provision of Rs 8,488,494 (1996: Rs 5,673,431) 16,613 19,833
Against Foreign Currency COIs 78,073 110,280
Bridge Finance
net of provision Rs 9,000,000 (1996: Nil) 19,500 28,500
Advance against Letters of Credit 96,828 71,036
Advance against Leases 500 54,427
Advance against Local Currency COIs 37,339 6,286
--------- ---------
248,853 293,613
========= =========
(Rupees in 000's)
Jun 30 Jun 30
Note 1997 1996
20. SHORT TERM INVESTMENTS
Government Securities 20.l 345,800 246,550
Shares in Listed Companies
. Purchase under resale obligations  20.2 19,998 54,873
· Trading portfolio
[market value Rs 16,900,530
(1996: Rs 52,446,798)] 27.40 43,726 109,513
Less: Provision for decline in market value 57,066 59,391
Adjustment during the period 30,241 2,325
26,825 57,066
16,901 52,447
----------- -----------
Placements 40,000 -
----------- -----------
422,699 353,870
=========== ===========
20.1 Government Securities
Federal Investment Bonds - at cost
[aggregate face value Rs 642,000,000
(1996: Rs 649,535,000)] 642,000 649,535
Sale under Repurchase Commitments
[aggregate face value Rs 302,200,000 (296,200) (503,000)
(1996: Rs 503,000,000)] ....
345,800 146,535
NIT Units - 100,015
=========== ===========
345,800 246,550
=========== ===========
The management of the Corporation does not intend to hold the portfolio until maturities.
20.2 Purchase under resale obligation
Muslim Commercial Bank Limited
465,000 ordinary shares of Rs 10 each - 34,875
Pakland Cement Limited
149,800 ordinary shares of Rs 10 each 19,998 19,998
----------- -----------
19,998 54,873
=========== ===========
The aggregate resale value is Rs 24,297,935 (1996: Rs 58,598,000) and aggregate market
value is Rs 1,438,080 (1996: Rs 19,601,800). The Corporation is holding additional
shares as collateral to cover the decline in market value.
21. ADVANCES, DEPOSITS, PREPAYMENTS
AND OTHER RECEIVABLES
(Rupees in 000's)
Note Jun 30 Jun 30
1997 1996
Current portion - Advances to Chief Executive 651 703
Advances to Executives 1,044 867
Advances to Other Employees 498 275
Deposits 714 363
Prepayments 27,843 11,360
Other Receivables 21.1 238,173 211,068
---------- ----------
268,923 224,636
=========== ===========
21.1 Other Receivables are net of Provision for Doubtful Receivables which amount to
Rs 2,932,500 (1994: Rs 2,932,500).
22. CASH AND BANK BALANCES
Cash in Hand 93 51
Cheques in Hand 15,999 6,650
Current Accounts - with Banks 26,090 63,055
Time Deposit Accounts
Financial Institutions 1,901 26,726
Scheduled Banks 37,283 39,825
39,184 66,551
----------- -----------
81,366 136,307
23. INCOME FROM INVESTMENTS / FINANCE =========== ===========
Eighteen
Note Jun 30 months to
1997 Jun 30
1996
Income - Government Securities 41,751 64,159
- Other Investments 23.1 20,205 38,554
- Long Term Finance 12,196 2,955
- Short Term Finance 70,687 146,519
----------- -----------
144,839 252,187
23.1 Income from Other Investments =========== ===========
Dividend Income 550 1,118
Return on Redeemable Capital Certificate/TFC 3,604 4,013
Profit on Sale of Investments 16,051 33,423
----------- -----------
20,205 38,554
=========== ===========
(Rupees in 000's)
Note Jun 30 Jun 30
1997 1996
OTHER INCOME
Fees, Commission and Exchange Gain 24.1 5,785 40,668
Income from Bank Deposits 4,256 5,528
Profit on disposal of Fixed Assets 184 5,053
Other 5,197 4,795
----------- -----------
15,422 56,044
=========== ===========
24.1 Fees, commission and exchange gain - Fees 2,815 21,645
- Commission 1,652 13,234
- Exchange Gain 1,318 5,789
----------- -----------
5,785 4O,668
=========== ===========
25. FINANCIAL CHARGES ! RETURN
ON BORROWINGS
Long Term Finance - secured 128,283 217,252
- unsecured 3,091 1,856
Short Term Finance - secured 45,294 16,133
- unsecured 56,233 35,808
Bank Charges 590 1,466
Commission and Brokerage 930 2,585
Others 7,096 2,615
----------- -----------
241,517 277,715
=========== ===========
26. ADMINISTRATIVE AND OPERATING EXPENSES
Directors' Fees 26.1 4 2
Salaries and Benefits 38,766 52,114
Staff Welfare and Training 1,136 1,522
Rent 4,173 5,310
Insurance 4,642 5,773
Utilities 4,115 5,323
Stationery and Supplies 1,712 2,881
Vehicle running expenses 2,615 3,127
Travel 1,149 2,258
Legal and Professional charges 26.3 5,543 4,918
Depreciation 8,831 10,972
Donations / Scholarships 26.4 682 639
Advertisement 4,035 9,538
Repairs and Maintenance 1,523 2,961
Others expenses 3,438 2,707
----------- -----------
82,364 110,045
=========== ===========
26.1 Directors' Fee
Two directors (1996: Rs. 2) were paid fees for attending board meetings of the Corporation.
26.2 Remuneration of Chief Executive and other Executives
Chief Executive Executives
Rupees in 000's Rupees in 000's
Eighteen Eighteen
Jun months to Jun months to
1997 Jun 1996 1997 Jun 1996
Managerial Remuneration 2,179 2,042 14,115 13,112
Housing and Utilities 275 963 1,264 8,522
Medical Expenses 96 187 802 1,200
Provident Fund, Gratuity
and Insurance 444 391 1,941 2,367
--------- --------- --------- ---------
2,994 3,583 18,122 25,201
--------- --------- --------- ---------
Number of persons 1 1 34 45
========== ========== ========== ==========
The chief executive and executives are also entitled to free use of Corporation maintained cars.
26.3 Auditors' Remuneration
Legal and professional charges include:
Annual Audit Fee 150 150
Audit Fee - June 30, 1995 - 100
NBFI Audit - 18 months 177 50
Other Certifications - 40
Out-of-pocket Expenses 17 108
----------- -----------
344 448
=========== ===========
26.4 Donations
The directors of the Corporation or their spouses had no interest in the donees to whom donations
were given.
27. INVESTMENT IN LISTED/UNLISTED COMPANIES/MODARABAS
No. of share Investment in Listed Companies/ Short term Long term
Certificate/ Vouchers Modarabas Investment Investment
held Rs in OO0's
Jun 1997 Jun 1996 Jun 1997 Jun 1996 Jun 1997 Jun 1996
12,273 43,773 First Habib Bank Modaraba 165 590
5 5 Mohib Textile Mills Ltd. -- --
450 10,450 Sakrand Sugar Mills Ltd. 5 124
400 178,400 Yousaf Weaving Mills Ltd. 6 3,098
65,746 65,746 First Mehran Modaraba 1,043 1,043
300 300 Chashma Sugar Mills Ltd. 5 5
380 6,880 Nishat Chunian Ltd. 3 107
87 87 Brother Textile Mills Ltd. 2 2
40,595 40,595 First Prudential Modaraba 442 442
3,500 3,500 L.T.V.C.M. (Face value Rs 5 per share) 27 27
902 21,902 Gulshan Spinning Mills Ltd. -- --
(Associated Undertaking) 33 796
9,697 9,697 Third Prudential Modaraba 78 78
-- 11,150 Amin Spinning Mills Ltd. -- 200
31,398 42,398 First Fidelity Leasing Modoraba 617 730
14,200 29,700 First Crescent Modaraba 267 566
-- 69,500 Salman Noman Enterprises Ltd. -- 847
39,000 39,000 Awan Textile Mills Ltd. 390 390
8,230 10,320 Pioneer Cables Ltd. 225 279
800 39,800 First UDL Modoraba 13 647
25,063 298,664 Sui Northern Gas Pipelines Ltd. 606 8,343
425 100 I.C.I. Ltd. 10 7
13.83 13,834 Nishat Mills Ltd. 550 550
20,000 20,000 Allied Motors Ltd. 305 305
4,987 24,987 Askari Commercial Bank Ltd. 256 890
900 21,400 BRR 2nd Modaraba 13 316
3,000 3,000 Capital Assets Leasing Ltd. 32 32
8,065 8,065 Crescent investment Bank Ltd. 517 517
8,265 7,187 Crescent Steel Ltd. 717 717
-- 5,000 Dewan Salman Fibres Ltd. -- 725
24,100 44,100 D. G. Khan Cement Ltd. 1,671 2,692
13,000 13,000 Fecto Cement Ltd. 678 678
875 22,375 Gadoon Textile Mills Ltd. 69 1,762
200,000 200,000 Glamour Textile Mills Ltd. 5,016 5,016
27,500 27,500 First Grindlays Modaraba 966 966
-- 16,100 Pak Synthetic Ltd. -- 862
-- 25,000 Pioneer Cement Ltd. -- 1,412
6,980 18,480 P. hL. Corp. Ltd. 479 876
16,308 14,325 Searle Pakistan Ltd. 1,305 1,305
-- 5,000 ICP SEMF -- 471
1,500 1,500 Soneri Bank Ltd. -- --
333 333 Tri Star Polyester Ltd. 6 6
168 23,168 Trust Leasing Corporation Ltd. 8 1,080
400 14,400 First Inter Fund Modaraba 7 259
-- 20,000 Punjab Modaraba -- 362
-- 50,000 Uni Cap Modaraba -- 1,597
100 100 Trust Modaraba 1 1
-- 30,000 Ellcot Spinning Mills Ltd. -- 831
8,000 8,000 Gulistan Spinning Mills Ltd.
(Associated Undertaking) 279 279
24,550 57,000 Ansari Sugar Mills Ltd. 216 768
-- 26,000 Genertech Pakistan Ltd. -- 778
33,000 33,000 Security Investment Bank Ltd. 1,146 1,146
-- 46,000 Pakistan Industrial Credit &
Investment Corporation Ltd. -- 3,180
225 4,725 Muslim Commercial Bank Ltd. 21 434
400 7,900 AI-Faysal Investment Bank Ltd. 15 296
6,900 6,900 Bankers Equity Ltd. 274 274
984 18,984 Union Bank Ltd. 36 700
11,200 11,200 Lucky Cement Ltd. 232 232
12,705 12,705 Asian Leasing Corporation Ltd. 434 434
210 210 P.T.C. Vouchers
(Face value Rs 3,000 per voucher) 1,014 1,014
....... carried forward
....... brought forward
-- 94,000 Kohinoor Raiwand Ltd. -- 1,092
-- 27,000 B.R.R. Capital Modaraba -- 599
1,310 1,310 Karachi Electric Supply Corporation Ltd. 4 4
6,750 6,750 Maple Leaf Cement Ltd. 464 464
6,650 6,650 K.A.S.B. & Co. Ltd. 585 585
906,788 1,060,287 K.A.S.B. Premier Fund Ltd. 9,068 10,603
4,600 382,600 Sunflo Citrus Ltd. 58 4,783
-- 10,000 Faysal Bank Ltd. -- 292
20,000 20,000 Dhan Fibres Ltd. 262 262
-- 15,000 Nishat Tek Ltd. -- 588
-- 10,000 Tripark Films Ltd. -- 246
14,950 23,000 Sui Southern Gas Co Ltd. 449 795
-- 5,000 Adamjee Insurance Co Ltd. -- 574
16,001 38,183 General Tyres & Rubber Co Ltd. 548 1,718
-- 40,000 Kohinoor Energy Ltd. -- 640
-- 200,000 Ellahi Electric Ltd. -- 4,291
100,000 100,000 D.G. Electric Ltd. 3,100 3,100
400 192,900 Pak Apex Leasing Co. Ltd. 4 1,929
-- 648,487 Agriautos Ltd. -- 4,864
561,500 1,250,000 Ibrahim Fibres Ltd. 8,984 20,000
---------- ---------- ---------- ---------- ---------- ---------- ----------
27.10 Sub Total 43,726 109,513
========= ========= ========= ========= ========= ========= =========
150,000 300,000 Fauji Fertilizer Corporation -
Jordan Fertilizer Corp. 2,777 5,558
1,000,000 1,000,000 K.A.S.B. Premier Fund Ltd. (Pre IPO) 10,000 10,000
648,487 -- Agriautos Ltd. 4,864 --
200,000 -- Elahi Electric Ltd. 4,291 --
10,000 10,000 Chakwal Cement Ltd. - GDR
(Face Value Rs 11.275 per share) 2,819 2,819
518,692 685,892 L.T.V.C.M..- RCC
(Face Value Rs 5 to Rs 65 per certificate) 15,433 16,290
50 50 Nishat Tek Ltd.-TFC
(Face value Rs 100,000 per Certificate) 4,998 5,000
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
27.20 Sub Total 45,182 39,667
Investment in Un-Listed Companies
1,000,000 1,000,000 Mac Pac Film Ltd.
(Mr. Maqbool Ellahi) 10,000 10,000
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
27.30 Sub Total 10,000 10,000
27.4 Total Short Term Investment 43,726 109,513
========= ========= ========= =========
27.5 Total Long Term Investment 55,182 49,667
========= =========
Unless otherwise stated holdings are in Ordinary Shares/Certificates/Vouchers of Rs 10 each.
Investment with a carrying value of Rs 3,048,800 are not held in the name of the Corporation but are
covered by blank transfer deeds.
28. COMPARATIVE FIGURES
Previous year's figures have been rearranged in order to conform to the presentation for the current
period. Figures have been rounded off to the nearest thousand rupees.
Mohammad Salim Mubashir A. Akhtar
Director Managing Director
& Chief Executive
Pattern of Shareholding as at June 30, 1997
Category of Number of Shares Percentage
Shareholders Shareholders Held
1. Individuals 2,420 15,615,749 21.72
2. Investment Companies 17 1,250,037 1.74
3. Insurance Companies 4 851,168 1.18
4. Joint Stock Companies 39 24,590,355 34.21
5. Financial Institutions 5 15,067,059 20.960
6. Modaraba 11 283,584 0.394
7. Foreign Investors 41 14,220,912 19.783
8. Co-operative Societies 1 6,035 0.008
---------- ---------- ----------
Totals 2,538 71,884,899 100.000
========= ========= =========
Number of Shareholdings Total
Shareholders Shares Held
275 1 -- 100 14,106
635 101 -- 500 188,367
459 501  -- 1000 379,348
762 1001 -- 5000 1,839,734
173 5001  -- 10000 1,306,461
43 10001  -- 15000 521,632
33 15001  -- 20000 588,498
18 20001 -- 25000 407,658
13 25001 -- 30000 373,129
6 30001  -- 35000 199,011
7 35001  -- 40000 265,642
7 40001                     -                            45000 -- 45000 297,849
7 45001 -- 50000 332,875
2 50001 -- 55000 110,000
1 55001 -- 60000 57,155
4 60001 -- 65000 246,771
7 65001                            70000 -- 70000 467,911
1 70001 -- 75000 71,250
4 75001 -- 80000 310,765
2 80001 -- 85000 163,550
1 85001 -- 90000 85,375
2 90001 -- 95000 188,608
1 95001 -- 100000 95,500
2 100001 -- 105000 205,345
3 105001 -- 110000 328,370
2 110001 -- 115000 226,500
1 115001 -- 120000 119,000
5 120001 -- 125000 612,709
1 125001 -- 130000 127,500
2 130001 -- 135000 268,096
2 135001 -- 140000 277,500
1 145001                                                            150000 -- 150000 148,400
1 150001 -- 155000 153,250
1 160000 -- 160000 159,000
2 165001 -- 170000 336,862
2 190001  -- 195000 385,008
2 205001 -- 210000 419,955
1 215001 -- 220000 215,500
1 225001  -- 230000 225,450
1 230001 -- 235000 231,311
1 245001  -- 250000 250,000
2 260001 -- 265000 525,621
1 270001 -- 275000 273,375
1 280001 -- 285000 282,637
1 290001 -- 295000 294,662
1 295001 -- 300000 300,000
3 300001 -- 305000 908,550
1 305001 -- 310000 306,933
3 310001 -- 315000 938,858
1 315001 -- 320000 317,000
1 320001 -- 325000 320,500
1 355001 -- 360000 357,753
1 370001 -- 375000 370,327
1 380001 -- 385000 381,865
1 385001 -- 390000 385,726
1 395001 -- 400000 398,020
1 405001 -- 410000 407,962
1 410001 -- 415000 410,826
1 415001 -- 420000 416,004
1 435001 -- 440000 436,678
1 465001 -- 470000 466,602
2 505001 -- 510000 1,010,927
1 550001 -- 555000 553,242
1 570001                     -                          575000 -- 575000 573,500
1 660001                     -                          665000 -- 665000 661,641
1 860001                     -                          865000 -- 865000 863,775
1 915001 -- 920000 918,853
1 945001 -- 950000 948,139
1 1195001 -- 1200000 1,197,698
1 1250001 -- 1255000 1,251,220
1 1735001 -- 1740000 1,736,843
1 2085001 -- 2090000 2,089,899
1 2830001 -- 2835000 2,830,859
1 3155001 -- 3160000 3,159,994
1 3590001 -- 3595000 3,591,000
1 4730001 -- 4735000 4,733,317
1 5345001 -- 53530000 5,345,516
1 7150001 -- 7155000 7,153,663
1 11560001 -- 11565000 11,563,963
---------- ---------- ---------- ---------- ---------- ---------- ----------
2,538 Totals 71,884,899
---------- ---------- ---------- ---------- ---------- ---------- ----------
Company Information
MANAGEMENT
Mubashir A. Akhtar Managing Director & CEO
S.M. Najmal Husain Naqvi Senior Executive Vice President
Mohammad Ameen Senior Executive Vice President
Fiyaz Ahmed Longi Senior Executive Vice President
Abdul Ghafoor Ateeq Senior Vice President
M. Akram Sheikh Senior Vice President
M. Jamiluddin Senior Vice President
Nasim Akbar Senior Vice President
Tahir Rizwan First Vice President
Khalid Basharat First Vice President
Anser H. Basrai First Vice President
Salim-ul-Haque First Vice President
Fuad Rasul Vice President
Akhtar Ali Khan Vice President
Shahzad Afzal Vice President
Wahid Ahmed Vice President
Waheed-ur-Rehman Vice President
Shaheena Sohail Vice President
Nigar Fatima Jafri Vice President
Shahid Raza Rizvi Vice President
Ford, Rhodes, Robson, Morrow AUDITORS
Chartered Accountants
Orr. Dignam & Company, Advocates LEGAL ADVISORS
Liaquat Merchant & Company, Advocates
Sajjad Law Associates, Advocates
M. Yousuf Adil & Co. CONSULTANTS
Chartered Accountants
NIC Building, 10th Floor HEAD OFFICE AND
Abbasi Shaheed Road REGISTERED OFFICE
Tel: 5660671-78 Fax: 5680454 KARACHI
E-mail: ndlckar@biruni.erum.com.pk
BC-1, Block-5, KARACHI CLIFTON BRANCH
Kehkashan Scheme # 5, Main Clifton Road.
Tel: 5875666-777 Fax: 5875888
Contact: Mr. Ahmed Noor
7/4, E-3, Main Boulevard, LAHORE OFFICE
Gulberg 3.
Tel: 5754111, 5754122 Fax: 5754166
E-mail: leasepk@ndlclhr.lhr.erum.com.pk
Contact: Mr. Tahir Rizwan
Unit No. 3, Cantonment Commercial LAHORE CANTT BRANCH
Complex, Abid Majeed Road, Lahore Cantt.
Tel: 6652317-8 Fax: 6652310
Contact: Mr. Shahzad Afzal
The Mall Regency Shopping Arcade, FAISALABAD OFFICE
Ground Floor.
Tel: 617946-67 Fax: 612890
E-mail: leasepk@ndlcfsb.fsd.erum.com.pk
Contact: Mr. Salim-ul-Haque
State Life Building, Ground Floor ISLAMABAD OFFICE
Jinnah Avenue,
Blue Area.
Tel: 277362-64 Fax: 277365
E-mail: leasepk@ndlcisl.isb.erum.com.pk
Contact: Mr. Fuad Rasul
Allied Bank of Pakistan Limited BANKERS
American Express Bank Limited
ANZ Grindlays Bank plc
Askari Commercial Bank Ltd.
Bank of America
Bank of Punjab Ltd.
Citibank, N.A.
Credit Agricole Indosuez
Duetsche Bank AG
Faysal Bank Limited
Habib Bank Limited
Metropolitan Bank Limited
Muslim Commercial Bank Limited
National Bank of Pakistan
National Development Finance Corporation
Platinum Commercial Bank Ltd.
Prime Commercial Bank Limited
Schon Bank Limited
Soneri Bank Limited
Standard Chartered Bank
Societe General - The French & International Bank
The Hongkong Shanghai Banking Corporation Ltd.
Bank of China CORRESPONDENT BANKS
Chase Manhattan Bank
Deutsche Bank AG
Union Bank of Switzerland
Notice of Annual General Meeting
Notice is hereby given that the Thirteenth Annual General Meeting of National Development Leasing
Corporation Limited will be held at Beach Luxury Hotel, Moulvi Tamizuddin Khan Road, Karachi on
Monday, December 29, 1997 at 17:00 hours to transact the following business:
1. To confirm the Minutes of the Extra Ordinary General Meeting held on August 8, 1997.
2. To receive and adopt the Audited Accounts of the Corporation for the year ended June 30, 1997
together with Directors and Auditors Reports thereon.
3. To approve 15% cash dividend and 5.0012% bonus shares as recommended by the Directors.
4. To appoint Auditors and fix their remuneration. The present Auditors, Ford, Rhodes, Robson,
Morrow, Chartered Accountants, retire and being eligible, offer themselves for re-appointment.
5. To transact any other business with the permission of the Chair.
    By Order of the Board
A.G. Ateeq
Karachi, November 7, 1997. Company Secretary
Notes:
a. The Share Transfer Books of the Corporation will remain closed from December 27, 1997 to
January 9, 1998 (both days inclusive). Transfers received in order at the Registered Office of the
Corporation by December 26, 1997 will be treated in time for the purpose of entitlement of cash
dividend and bonus shares, except that such bonus shares shall not be eligible for cash dividend
in respect of the year ended June 30, 1997.
b. A member entitled to attend and vote at the meeting may appoint another member as his/her
proxy to attend and vote on his/her behalf. The Proxy, in order to be effective, must be received at
the Registered Office of the Corporation duly stamped, signed and witnessed not later than 48
hours before the time of the Meeting.
c. Members are requested to immediately inform of any change in their addresses.
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