| ORIX LEASING PAKISTAN LIMITED |
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| ANNUAL
REPORT 1997 |
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| CONTENTS |
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| Company
Information |
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| ORIX
Corporation, Japan- Group Profile |
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| Associated
Companies |
|
| Financial
Highlights of the Company |
|
| Notice
of Meeting |
|
| Report
of the Directors |
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| Auditors'
Report |
|
| Balance Sheet |
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| Profit
and Loss Account |
|
| Statement
of Changes in Financial Position |
|
| Notes
to the Accounts |
|
| Pattern
of Shareholding |
|
| ORIX
Group Directory |
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| COMPANY
INFORMATION |
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|
| Mr.
Yoshihiko Miyauchi |
(alternate Mr. Takafumi
Kanda) |
Chairman |
|
|
| Mr.
Shakirullah Durrani |
|
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|
Vice Chairman |
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| Mr.
Yoshiaki Ishida |
(alternate Mr. Hiromi
Kobayashi) |
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| Mr.
Takeshi Sato |
|
|
|
| Mr.
Muizuddin Ahmad |
(alternate Sayed Muzafar
All Shah) |
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| Mr.
Mohammed Aslam |
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|
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| Mr.
Rauf Ahmed Shamsi |
(resigned October 24,
1997) |
|
| Mr.
Shaheen Amin |
(appointed October 24,
1997) |
|
| Mr.
Humayun Murad |
|
Chief Executive |
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|
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| COMPANY
SECRETARY |
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| Mr.
Ramon AIfrey - ACA |
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| BANKERS
AND LENDING INSTITUTIONS |
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| Banks |
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| ABN-AMRO
Bank |
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| American
Express Bank Limited |
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| ANZ
Grindlays Bank Limited |
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| Citicorp
Investment Bank Pakistan Limited |
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| Credit
Agricole Indosuez |
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(Formerly Banque
Indosuez) |
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| Deutsche
Bank A.G. |
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| Faysal
Bank Limited |
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| First
International Investment Bank Limited |
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| Oman
International Bank SAOG |
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| Standard
Chartered Bank |
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| Societe
Generale, The French and International Bank |
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| The
Bank of Tokyo - Mitsubishi Limited |
|
|
| DFIs
and Lending Institutions |
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| Asian
Development Bank |
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| Asian
Finance and Investment Corporation Limited |
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| Bankers
Equity Limited |
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| Crescent
Investment Bank Limited |
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| F.
M. O., The Netherlands |
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| International
Bank for Reconstruction and Development |
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| International
Finance Corporation |
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| Pakistan
Kuwait Investment Company (Private) Limited |
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| Saudi
Pak Industrial & Agricultural Investment Company (Private) Limited |
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| AUDITORS |
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| Sidat
Hyder Qamar Maqbool & Co., Chartered Accountants |
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| LEGAL
ADVISORS |
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| Mansoor
Ahmad Khan & Co. |
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| Walker
Martineau Saleem |
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| REGISTRARS
AND SHARE TRANSFER OFFICE |
|
| Noble
Computer Services (Private) Limited |
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| 2nd
Floor, AI-Manzoor Building, |
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| Dr.
Ziauddin Ahmed Road, Karachi. |
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| REGISTERED
OFFICE & HEAD OFFICE |
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| Overseas
Investors Chamber of Commerce Building, |
|
| Talpur
Road, Karachi-74000 |
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| Tel:
2426020-9 Fax: 2425897 |
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|
| Lahore |
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| State
Life Building, Sir Aga Khan III Road (Davis Road), Lahore-54000. |
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| Tel:
6369946, 6301527, 6302620, 6304258, 6301866 and 6302897 |
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| Fax: 6305024 |
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|
| Faisalabad |
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| 3rd
Floor, Ahmed Plaza, Bilal Road, Faisalabad. |
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| Tel:
633926 and 633811-3 |
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| Fax: 633927 |
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|
| Sialkot |
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| 1st
Floor, Goolam Kadir Arcade, Aziz Shaheed Road, Sialkot Cantt. |
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| Tel:
260767 and 260616 |
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| Fax: 269548 |
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|
| Peshawar |
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| 1st
Floor, State Life Building, The Mall, Peshawar. |
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| Tel:
279789 and 278647 |
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| Fax: 273389 |
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| Universal
Access Number (UAN): 111-24 24 24 |
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|
| ORIX
CORPORATION, JAPAN - GROUP PROFILE |
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| ORIX
Corporation is Japan's largest leasing company and internationally a leading |
|
| diversified
financial services group. Since it's establishment in 1964, ORIX has played |
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| a
pioneering role, first in developing the market for lease financing in Japan
and |
|
| subsequently
in developing and introducing products and services to meet defined customer |
|
| needs
for financing growth and managing assets, not only in Japan but also in 26
countries |
|
| overseas.
As part of this pioneering role,, ORIX has worked to encourage deregulation
and to |
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| provide
a positive competitive stimulus for further evolution in the financial
services industry. In |
|
| the
development of its operations, ORIX has emphasised innovation in products and
services |
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| and
geographical diversification into growth markets in Japan and overseas. |
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| BUSINESS
OPERATIONS |
|
| In
the early stages of its development, ORIX offered primarily full pay out
finance leases for |
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| machinery,
office automation equipment and computers. Gradually, the company broadened |
|
| the
range of leased assets to include vessels, aircraft and automobiles.
Thereafter, ORIX |
|
| expanded
its activities to provide a wider range of financial services and today these
services |
|
| include
instalment loans, investment banking, rentals, securities brokerage, venture
capital, |
|
| futures
and options trading, commody funds, life insurance and real estate related
activities. As |
|
| of
March 31, 1997, ORIX had a domestic network of 503 offices. ORIX has
diversified its |
|
| service
portfolio primarily through the establishment of specialised subsidiaries
which are fully |
|
| integrated
into the operations of the ORIX group. Each of these subsidiaries has the
principal |
|
| responsibility
of responding quickly and flexibly to the market needs in its area of
operations |
|
| and
is expected to contribute to the consolidated profitability of the ORIX
group. At the same |
|
| time
each of these companies draws on ORIX's strong marketing capabilities
developed |
|
| through
the leasing business and its close relationship with a broad spectrum of
customers. |
|
| ORIX
is the leading automobile fleet leasing company in Japan with 200,000
vehicles under |
|
| maintenance
leases. The Company owns a fleet of 27 commercial aircraft, which it leases
to |
|
| airline
companies around the world. |
|
|
| INTERNATIONAL
ACTIVITIES |
|
| While
building the strongest domestic market position among diversified financial
services |
|
| companies
in Japan, ORIX has worked to strengthen global synergies through the |
|
| development
of an extensive network of overseas subsidiaries and affiliates. ORIX began |
|
| setting
up its international network in 1971 and today its overseas presence is
represented |
|
| across
26 countries by 43 companies with 181 offices. To encourage close ties with
host |
|
| nations,
ORIX has emphasised the establishment of affiliates in co-operation with
locally based |
|
| financial
institutions and other leading companies. It has wholly owned subsidiaries in
the USA, |
|
| UK,
Ireland, Hong Kong, Singapore, Taiwan, Australia and New Zealand. In April
1997, ORIX |
|
| and
BANC ONE, a leading U.S. regional bank established a joint venture that
focuses primarily |
|
| on
the securitisation and servicing of mortgage loans. Preparation for the
establishment of |
|
| other
joint venture leasing companies is in process including an auto leasing
company in |
|
| Brazil. |
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| FINANCIAL
HIGHLIGHTS |
|
| ORIX
Group, Japan |
|
(For the year ended March
31) |
|
|
|
|
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|
Translation into |
|
|
Japanese Yen (millions) |
U.S. Dollars (thousands) |
|
|
|
1997 |
1996 |
1997 |
1996 |
|
|
| Total
Revenues |
|
347,784 |
317,594 |
2,804,710 |
2,561,242 |
|
| Income
before Income taxes |
|
36,889 |
35,027 |
297,492 |
282,476 |
|
| Net Income |
|
19,044 |
18,003 |
153,581 |
145,185 |
|
| Shareholders'
Investment |
|
308,584 |
276,251 |
2,488,580 |
2,227,831 |
|
| Total Assets |
|
5,089,975 |
4,751,756 |
41,048,185 |
38,320,613 |
|
|
| Note:
The dollar amounts above represent translations of Japanese yen at an
exchange rate of ¥124 to |
|
| US$1. |
|
|
| BUSINESS
ACTIVITIES |
|
| ORIX
Group, Japan: |
|
|
| General
Industrial Equipment Leasing |
|
Computer and Software
Development |
|
| Ship
Management and Leasing |
|
|
Securities Brokerage and
Investment |
|
| Aircraft
Finance and Operating Leasing |
|
Investment Banking |
|
| Computer
Leasing |
|
Futures and Options
Trading |
|
| Computer
Software and Development |
|
Commodity Funds |
|
| Automobile
Rentals & Maintenance Leasing |
|
Venture Capital
Investment |
|
| Real
Estate Rentals and Management |
|
Industrial Finance |
|
| Housing Loans |
|
Life Insurance |
|
| Office
& Electronic Equipment Rentals |
|
Casualty Insurance Agency
Services |
|
| Mortgage
- Backed Securities Loans |
|
Hotel Management and
Resort Development |
|
| Consumer
Finance & Insraiment Sales |
|
Broadcasting Service via
Communication Satellite |
|
|
| ASSOCIATED
COMPANIES |
|
|
| OVERSEAS
JOINT VENTURES |
|
|
|
| 1.
Oman ORIX Leasing Company SAOG (Oman ORIX) |
|
| Oman
ORIX completed its second full year of commercial operations on December
31,1996 in |
|
| which
it made a net profit before tax of Rial Omani (RO) 230,576 (Rs. 24.4 million)
enabling |
|
| the
Company to declare a dividend of 7.5%. Volume of business increased by 248%
with |
|
| purchase
cost of new business written at RO 8.2 million (Rs. 867.1 million). Gross
lease |
|
| receivables
stood at RO 8.8 million (Rs. 930.5 million), an increase of 245% over last
year. |
|
| Oman
ORIX has total assets of RO 10.8 million (Rs. 1.14 billion) and net worth of |
|
| RO
2.05 million (Rs. 216.8 million). |
|
|
| Oman
ORIX's main business is leasing of moveable assets to individuals, small and
medium |
|
| size
companies and large sub-contractors in diverse economic sectors including
services, |
|
| trading
and contracting, construction and manufacturing. Oman ORIX is the first
non-bank |
|
| financial
institution in Oman to receive a formal credit rating, earning an
"A" long-term rating |
|
| and
an "AI" short-term rating from Maghreb Rating, a subsidiary of IBCA
UK. |
|
|
| 2.
ORIX Leasing Egypt SAE (ORIX Egypt) |
|
| ORIX
Egypt is OLP's second joint venture leasing company in the Middle East. The
joint |
|
| venture
agreement was signed in September 1996 and ORIX Egypt was incorporated in
June |
|
| 1997
with a paid up capital of 20 million Egyptian Pounds (USS 5.9 million).
Sponsoring |
|
| shareholders
are National Bank of Egypt, (24%), ORIX Corporation, Japan, (23%), ORIX |
|
| Leasing
Pakistan Limited (23%), International Finance Corporation (15%), and
Commercial |
|
| International
Investment Company (15%). ORIX Egypt will be a pioneer of leasing in Egypt |
|
| which
offers attractive opportunities for the promotion of leasing business. The
Company's |
|
| business
strategy will focus upon leasing of industrial plant and machinery. |
|
|
| JOINT
VENTURE IN PAKISTAN |
|
|
| ORIX
Investment Bank Pakistan Limited (OIB) |
|
| OIB
is a joint venture sponsored by ORIX Corporation, Japan, International
Finance |
|
| Corporation,
Asian Finance & Investment Corporation (an affiliate of Asian Development
Bank) |
|
| and
other major financial institutions in Pakistan. The Bank is primarily engaged
in providing a |
|
| range
of investment banking products which include corporate advisory services,
project |
|
| packaging,
structuring and placement of capital market debt products, issuance and |
|
| discounting
of bankers acceptance and treasury operations. |
|
|
| OIB
completed its first full year of operations on June 30, 1997 with total
revenue of Rs. 90 million |
|
| and
profit before tax of Rs. 11.5 million. The Bank's deposit level stood at Rs.
546 million of which |
|
| Rs.
175 million were in foreign currency. At June 30, 1997 OIB had a net worth of
Rs. 207 million |
|
| and
total assets in excess of Rs. 1.1 billion. |
|
|
| FINANCIAL
HIGHLIGHTS OF THE COMPANY AS AT JUNE 30, 1997 |
|
|
| (Rupees
in thousands) |
|
|
|
1993 |
1994 |
1995 |
1996 |
1997 |
|
|
| Gross
lease receivables |
|
1,703,286 |
2,406,518 |
3,535,871 |
4,752,997 |
5,281,276 |
|
| Total
lease disbursements |
|
728,136 |
1,051,872 |
1,559,699 |
1,957,318 |
1,725,997 |
|
| Rents received |
|
599,558 |
778,342 |
1,040,187 |
1,446,490 |
1,596,027 |
|
| Gross income |
|
230,394 |
320,943 |
466,777 |
656,982 |
782,225 |
|
| Profit
before tax |
|
49,061 |
60,578 |
112,983 |
166,536 |
157,097 |
|
| Shareholders'
equity |
|
158,815 |
197,412 |
570,505 |
685,872 |
749,188 |
|
| Earning
per share (in Rs.) |
|
6.16 |
7.33 |
6.61 |
9.22 |
8.20 |
|
| Dividends: |
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Cash |
|
17.50% |
20.00% |
35.00% |
45.00% |
45.00% |
|
| Bonus |
|
10.00% |
10.00% |
0.00% |
0.00% |
0.00% |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Total |
|
27.50% |
30.00% |
35.00% |
45.00% |
45.00% |
|
|
| NOTICE
OF MEETING |
|
| Notice
is hereby given that the eleventh Annual General Meeting of the Company will
be held at |
|
| The
Institute of Chartered Accountants of Pakistan, G-31/8, Kehkashan, Clifton,
Karachi on Friday, |
|
| December
5, 1997 at 9:30 am to transact the following business: |
|
|
| ORDINARY
BUSINESS |
|
| 1.
To receive, consider and adopt the audited accounts together with the
Directors' and Auditors' |
|
| Reports
for the year ended June 30, 1997. |
|
|
| 2.
To approve the payment of cash dividend to the Shareholders at the rate of
Rs. 4.50 per share of |
|
| Rs.
10/- each for the year ended June 30,1997. |
|
|
| 3.
To appoint Auditors and fix their remuneration. The present Auditors Messrs.
Sidat Hyder Qamar |
|
| Maqbool
& Co., Chartered Accountants, retire and being eligible, offer themselves
for |
|
| re-appointment. |
|
|
| SPECIAL
BUSINESS |
|
| 4.
To consider and if approved, pass the following resolution as a Special
Resolution in respect of the |
|
| issue
of Term Finance Certificates and fully paid ordinary shares other than rights
issue: |
|
| "Resolved
that the Company raise finance for its medium term funding requirement by the
issue of |
|
| Term
Finance Certificates ("TFCs") with share warrants granting option
to share warrant holders to |
|
| subscribe
to new shares of the Company under the following terms and conditions: |
|
|
| Amount |
|
: |
Upto Rs. 410 million |
|
| Term of TFC |
|
: |
Redemption over 3 years |
|
| Profit on TFCs |
|
To be determined by the
Board of Directors |
|
| Attached
share warrants |
|
: |
4.1 million |
|
| New
shares to be issued |
|
: |
4.1 million (in exchange
for share warrants) |
|
| Period
of option |
|
: |
On or before June 30,
1998 |
|
| New
shares to be issued at |
|
: |
|
| Face value |
|
: |
Rs. 10 per share |
|
| Premium |
|
: |
Rs. 35 per share |
|
| TFCs
to be reserved for |
|
| existing
public shareholders |
|
| at the time of TFC issue |
|
: |
Rs. 12 million with share
warrants |
|
|
| Further
resolved that the Board of Directors may reduce the amount of the TFCs to be
issued if in |
|
| the
opinion of Directors marketing conditions require such reduction and that the
Board of |
|
| Directors
is empowered to take such other action for issuance of TFCs with warrants as
may be |
|
| determined
by the Board to be in best interest of the Company or be required to be taken
by the |
|
| Corporate
Law Authority or any Stock Exchange and to further issue upto 4.1 million new
ordinary |
|
| shares
other than as rights shares without offering the same to existing
shareholders, except for |
|
| new
shares to be issued against share warrants attached to TFCs of Rs. 12 million
reserved for |
|
| public
shareholders, subject to the approval of the Federal Government being
obtained in terms of |
|
| section
86 of the Companies Ordinance, 1984, such shares shall rank pari-passu in all
respects |
|
| with
the existing shares of the Company." |
|
|
| 5.
To transact any other business with permission of the Chair. |
|
|
| STATEMENT
UNDER SECTION 160(1)(b) OF THE COMPANIES ORDINANCE, 1984 |
|
| I.
(a) The Company has traditionally relied on International lending institution
to meets it's term |
|
| funding
requirements and is now ready to tap the domestic capital market as a new
source of |
|
| medium
term funds for the Company. It is considered feasible to raise financing
through |
|
| issuance
of Term Finance Certificates ("TFCs") of upto Rs. 410 million to be
redeemed over a |
|
| three
year period. |
|
|
| (b)
It is recommended by the Board of Directors that TFCs be issued with share
warrants enabling |
|
| the
TFC holders to subscribe to ordinary shares of the Company having a face
value of |
|
| Rs.
10 each at a premium of Rs. 35 per share on or before June 30, 1998. The
maximum |
|
| number
of shares to be issued to the TFCs holders against the warrants will be 4.1
million |
|
| shares.
In the opinion of the Board the issuance of warrants will enable the TFCs to
be priced |
|
| competitively
thus reducing cost of funds. |
|
|
| (c)
The Corporate Law Authority has cleared the scheme of the proposed issue of
TFCs with |
|
| warrants
in principle via letter reference C.57(1)/3/97 dated October 3, 1997, subject
to |
|
| statutory
compliance with the issue of debt securities and share warrants. |
|
|
| (d)
None of the Directors have any direct or indirect interest in the Special
Resolution to be |
|
| passed. |
|
|
| Notes: |
|
|
|
| a)
The Register of Members of the Company will be closed from November 28, 1997
to December 5, |
|
| 1997
(both days inclusive). Dividend will be paid to those Shareholders whose
names appear on |
|
| the
Register of Members as at the close of business on November 27, 1997. |
|
|
|
|
| b)
A Member entitled to attend and vote at the General Meeting of Members is
entitled to appoint a |
|
| proxy
to attend and vote on his behalf. A proxy need not be a Member of the
Company. |
|
|
| c)
The instrument appointing a proxy and the power of attorney or other
authority under which it is |
|
| signed
or a notarially certified copy of the power of attorney must be deposited at
the registered |
|
| office
of the Company at least 48 hours before the meeting. A form of proxy is
enclosed. |
|
| Shareholders
are requested to notify any change of address immediately. |
|
|
|
| REPORT
OF THE DIRECTORS |
|
| The
Directors are pleased to present the eleventh Annual Report together with the
audited |
|
| accounts
of the Company for the year ended June 30, 1997. |
|
|
|
Rupees |
|
| Net
profit for the year after charging all expenses, |
|
|
157,096,907 |
|
|
| Less: Taxation |
|
25,000,000 |
|
|
---------- |
|
|
132,096,907 |
|
|
| Unappropriated
profit brought forward |
|
10,045,675 |
|
|
---------- |
|
|
142,142,582 |
|
| Appropriations: |
|
|
| Transfer
to General Reserve |
|
65,000,000 |
|
| Cash Dividend |
|
72,499,289 |
|
|
---------- |
|
|
137,499,289 |
|
|
---------- |
|
| Unappropriated
profit carried forward |
|
4,643,293 |
|
|
| DIVIDEND |
|
| The
Directors recommend a cash dividend of 45%. In maintaining the same payment
as 1996, |
|
| despite
a marginal fall in current year's profit, the Directors endorse their
commitment to |
|
| maximise
return to shareholders by as much as is considered prudent. |
|
|
| REVIEW
OF OPERATIONS |
|
| The
year was overshadowed by political and economic difficulties, and whilst the
post election |
|
| period
removed political uncertainties, the economic recovery will take time to
respond to the |
|
| structural
changes being introduced by the Government. Against this backdrop, demand for |
|
| machinery
and equipment remained soft and overall volume of lease disbursements
contracted. |
|
| As
reported in the half-year results, new lease volume fell by 23% in the six
months |
|
| to
December 31, 1996 against the previous comparative period, but the Company
made a |
|
| strong
recovery in the second half through greater marketing efforts and
introduction of new |
|
| lease
products. To the first six months volume of Rs. 705 million, new leases of
Rs. 1.01 billion |
|
| were
added in the second half giving a total for the year of Rs. 1.73 billion, a
12% fall over the |
|
| 1996
volume of Rs. 1.96 billion. New rent receivables of Rs. 2.5 billion were
booked during the |
|
| year
(1996: Rs. 2.8 billion) taking the rent receivables to Rs. 5.3 billion at the
year end. |
|
|
| Recovery
of lease rentals remained strong and Rs. 1.6 billion was received on account
of |
|
| current
leases (1996: Rs. 1.45 billion), thus further strengthening internal cash
generation |
|
| which
is traditionally the Company's main source of funding. Lease income rose by
16% to |
|
| Rs.
690.3 million, but this growth was slower than the 38% increase registered in
1996. |
|
| Installment
loans continue to grow steadily and contributed Rs. 43.2 million to income,
an |
|
| increase
of 23% over the previous year. For the first time, the income side benefited
from a |
|
| dividend
payment by an associated company. Oman ORIX Leasing declared a maiden |
|
| dividend
of 7.5% which contributed Rs. 3.17 million to your Company's income. |
|
|
| Net
profit before tax amounted to Rs. 157.1 million, a decrease of 5.7% over
1996. Earning per |
|
| share,
after tax, was Rs. 8.20 as against the 1996 earning of Rs. 9.22 per share.
The fall in |
|
| profit
is attributable to a lower volume of business and higher financial charges.
As old lines of |
|
| credit
are repaid, they are being replaced by funds which are costlier. |
|
|
| In
light of weaker demand for industrial machinery, the Company increased its
auto lease |
|
| business,
and motor cars and commercial vehicles accounted for 52% of the total lease |
|
| disbursements.
Plant and machinery made up 41% of the volume and the balance of 7% was |
|
| for
computer and office equipment leases. The lease portfolio is well balanced
over a wide |
|
| sectoral
base, with the highest exposure to any sector being 16%. Financial assistance
was |
|
| provided
to 1,032 business enterprises, majority of which were small and medium sized |
|
| enterprises
which represent the core customer base of the Company. |
|
|
| On
the expenditure side, the main item is financial cost which rose by 31% to
Rs. 474.4 million. |
|
| Total
loans availed by the Company at the year end were Rs. 2.9 billion against Rs.
2.5 billion |
|
| in
1996. The combination of higher level of borrowings, and as mentioned
earlier, the higher |
|
| cost
of new loans, increased the financial charges by Rs. 112 million over the
previous year. |
|
| Selling,
general and administrative expenses increased by 21% to Rs. 99.7 million
reflecting |
|
| both
inflationary impact and administrative cost of supporting a broader business
base. In |
|
| accordance
with the normal practice of the Company, and ORIX Group worldwide, a general |
|
| provision
for potential lease losses is made to safeguard the Company from future
unforeseen |
|
| losses.
The charge for the year is Rs. 35.2 million (1996: Rs. 32.5 million). While
the Company |
|
| continues
to maintain an excellent collection ratio, a higher provision has been made
this year |
|
| to
absorb delinquent accounts which increase in difficult economic conditions. |
|
|
| FUNDING |
|
| The
Company continues to enjoy the confidence of domestic and international
financial |
|
| institutions
and banks which provide the Company adequate funding to meet its requirement |
|
| for
growth. During the year drawdowns were made on the ADB loan of USS 20 million
and the |
|
| Company
continues to utilise the World Bank line of USS 26 million for micro and
small |
|
| enterprises. |
|
|
| Our
business requires term financing since leases being written are for three
years or longer |
|
| periods.
International lending institutions have been our main source of long-term
loans. The |
|
| Company
is now ready to tap the domestic capital market as a new source of
medium-term |
|
| funds.
It was stated in last year's Annual Report that preparatory work had been
done for the |
|
| issuance
of Term Finance Certificates (TFCs). The Board is pleased to announce the
final |
|
| proposal
for this TFC issue of upto Rs. 410 million, redeemable over a three year
period. The |
|
| TFCs
have share warrants attached which gives a TFC holder the right to subscribe
to a |
|
| determined
number of shares at a price of Rs. 45 per share. If share warrants are fully |
|
| exercised,
4.1 million new shares will be issued which will raise an additional amount
of |
|
| Rs.
184.5 million making a total of Rs. 594.5 million from the entire TFC issue. |
|
|
| The
share warrant provides three benefits. Firstly, it will enable the TFC to be
priced |
|
| competitively,
thus helping the Company to lower its cost of funds. Secondly, the new shares |
|
| will
take the total issued share capital to over Rs. 200 million which is likely
to become a |
|
| minimum
requirement for all leasing companies in the near future. Thirdly, the larger
capital |
|
| base
will facilitate the overseas expansion of your Company. The TFCs will be
listed, and of |
|
| the
total, Rs. 60 million will be offered to the public. To enable ORIX's
existing public |
|
| shareholders
to participate in the issue, TFCs with a face value of Rs. 12 million, which
will |
|
| have
0.12 million attached share warrants, are being reserved for existing public
shareholders. |
|
| The
Directors are of the opinion that the proposed TFC issue, which is a new
instrument in the |
|
| domestic
capital market, is beneficial to the Company, and request the shareholders'
support |
|
| in
approving the proposal. |
|
|
| CREDIT
RATING |
|
| The
Pakistan Credit Rating Agency has updated the Company's credit ratings for
the year to |
|
| June
30, 1996 and maintained its ratings of AI+ and A1 for short and long term
debt |
|
| respectively.
These are the highest credit ratings achieved by any leasing company in
Pakistan |
|
| in
the East two years. |
|
|
| ASSOCIATED
COMPANIES |
|
| Oman
ORIX Leasing Company SAOG completed its second full year of operations on |
|
| December
31, 1996, in which it made a profit of Rs. 24.4 million and declared a maiden |
|
| dividend
of 7.5%. The Company is progressing rapidly and its share price of Omani Rial
2.70 |
|
| at
June 30, 1997 gives your Company's investment of Rs. 33.9 million a market
value of |
|
| Rs. 114 million. |
|
|
| ORIX
Leasing Egypt SAE (OLE) our second overseas joint-venture, was incorporated
in June |
|
| 1997
and is now operational in Cairo. Your Company has 23% shareholding and has |
|
| seconded
Mr. Saeed Reza as the first Managing Director of OLE. The Egyptian economy is |
|
| expanding
robustly and business prospects for OLE are bright. |
|
|
| ORIX
Investment Bank Pakistan Limited completed its first year of operations on
June 30, |
|
| 1997
earning a profit before tax of Rs. 11.5 million. The Bank's main focus is to
develop |
|
| investment
banking business and promote a link for this business with the Middle East
and Far |
|
| Eastern
operations of the ORIX Group. |
|
|
|
| FUTURE
PROSPECTS |
|
| The
incentives for industry announced by the Government together with structural
changes |
|
| being
introduced in the economy are expected to revive business confidence. The
Company is |
|
| ready
to participate fully in meeting any increase in demand for machinery and
equipment |
|
| which
should result from an upturn in the economy. Additionally, steps which have
already |
|
| been
taken to promote ancillary financial products should contribute more to the
next year's |
|
| results.
Adequate funding arrangements are in place to meet obligations of higher
volume of |
|
| lease
disbursements. |
|
|
| ORIX
Corporation, Japan has designated Pakistan as its base for the Middle East
region. |
|
| Expansion
in the Middle East by the ORIX group is being spearheaded by ORIX Leasing |
|
| Pakistan
which has opened new opportunities for your Company's international
expansion. |
|
|
| DIRECTORS |
|
| Following
the election of Directors in 1996 for a three year term, the Board
unanimously |
|
| elected
Mr. Yoshihiko Miyauchi, President and Group Chief Executive of ORIX
Corporation as |
|
| Chairman
of your Company. Mr. Shakirullah Durrani, founder Director, was elected Vice |
|
| Chairman. |
|
|
| In
January 1997, Bankers Equity Limited (BEL) a founding shareholder disinvested
its |
|
| shareholding
in the Company. Consequently, Mr. Khurshid Hadi, representing BEL, resigned |
|
| from
the Board. Mr. Mohammed Aslam, Chief Executive of ORIX Investment Bank
Pakistan |
|
| Limited
has been appointed to the Board to fill the vacancy arising from Mr. Hadi's
resignation. |
|
| Mr.
Gulrez Yazdani, nominee of State Life Insurance Corporation relinquished his
position on |
|
| February
6, 1997 and was succeeded by Mr. Muizuddin Ahmed, Chairman State Life |
|
| Insurance
Corporation of Pakistan. |
|
|
| The
Directors place on record their appreciation of the services of Mr. Khurshid
Hadi and Mr. |
|
| Gulrez
Yazdani and welcome Mr. Muizuddin Ahmed and Mr. Mohammed Aslam on the Board. |
|
|
| STAFF |
|
| The
contribution of all staff members is noteworthy and the Company takes pride
in the |
|
| dedication
and teamwork of its employees. The results of the year under difficult
circumstances |
|
| reflect
their commitment and the Board records its appreciation of all staff members. |
|
|
| AUDITORS |
|
| The
Auditors, Sidat Hyder Qamar Maqbool and Company, retire and being eligible
offer |
|
| themselves
for re-appointment. |
|
|
| PATTERN
OF SHAREHOLDING |
|
| The
pattern of shareholding as on June 30, 1997, is shown on page 37. |
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| We
have audited the annexed balance sheet of ORIX Leasing Pakistan Limited as at
June |
|
| 30,1997
and the related profit and loss account and statement of changes in financial |
|
| position,
together with the notes forming part thereof, for the year then ended and we
state |
|
| that
we have obtained all the information and explanations which to the best of
our knowledge |
|
| and
belief were necessary for the purposes of our audit and, after due
verification thereof, we |
|
| report that : |
|
|
| a) in our opinion, proper books of account have been kept by the
Company as required by |
|
| the
Companies Ordinance, 1984; |
|
|
| b)
in our opinion: |
|
| i)
the balance sheet and profit and loss account, together with the notes
thereon, |
|
| have
been drawn up in conformity with the Companies Ordinance,1984 and |
|
| are
in agreement with the books of account and are further in accordance with |
|
| accounting
policies consistently applied; |
|
|
| ii)
the expenditure incurred during the year was for the purpose of the Company's |
|
| business; and |
|
|
|
|
| iii)
the business conducted, investments made and the expenditure incurred |
|
| during
the year were in accordance with the objects of the Goreparty; |
|
|
| 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 statement of changes in
financial |
|
| position,
together with the notes forming part thereof, give the information required
by |
|
| the
Companies Ordinance, 1984 in the manner so required and respectively give a
true |
|
| and
fair view of the state of the Company's affairs as at June 30, 1997 and of
the profit |
|
| and
the changes in financial position for the year then ended; and |
|
|
| d) in our opinion, Zakat deductible at source under the Zakat and
Ushr Ordinance, 1980 |
|
| was
deducted by the Company and deposited in the Central Zakat Fund established |
|
| under
Section 7 of that Ordinance. |
|
|
| BALANCE
SHEET AS AT JUNE 30, 1997 |
|
|
NOTE |
1997 |
1996 |
|
| ASSETS |
|
| Fixed
assets - tangible |
|
3 |
42,382,782 |
36,726,240 |
|
| Investment
in leases and installment loans: |
|
| Installment
contract receivables |
|
5,281,275,767 |
4,752,997,367 |
|
| Unearned
Income |
|
(1,046,963,897) |
(970,527,447 |
|
|
-------------- |
-------------- |
|
| Net
investment in leases and installment loans |
|
4,234,311,870 |
3,782,469,920 |
|
| Less:
Current portion of net investment in leases |
|
|
|
| and
installment loans |
|
1,608,403,121 |
1,383,909,114 |
|
|
-------------- |
-------------- |
|
|
2,625,908,749 |
2,398,560,806 |
|
| Long
term investments |
|
4 |
126,412,619 |
71,889,052 |
|
| Long
term loans and advances |
|
5 |
20,442,058 |
18,251,225 |
|
| Long
term deposits, prepayments and |
|
| deferred costs |
|
6 |
38,764,049 |
23,976,320 |
|
| Current assets |
|
7 |
1,834,256,457 |
1,537,979,365 |
|
|
|
---------- |
---------- |
|
|
|
Rupees |
4,688,166,714 |
4,087,383,008 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| SHARE
CAPITAL AND LIABILITIES |
|
| Share
capital and reserves |
|
| Authorised |
|
| 25,000,000
Ordinary shares of Rs. 10/- each |
|
250,000,000 |
250,000,000 |
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid up |
|
8 |
161,109,530 |
161,109,530 |
|
|
|
|
|
|
|
|
|
| Share premium |
|
9 |
287,216,909 |
287,216,909 |
|
| General
reserve |
|
10 |
296,218,010 |
227,500,000 |
|
| Unappropriated
profit |
|
4,643,293 |
10,045,675 |
|
|
---------- |
---------- |
|
|
|
588,078,212 |
524,762,584 |
|
|
|
|
|
|
|
---------- |
---------- |
|
| Shareholders'
equity |
|
|
749,187,742 |
685,872,114 |
|
| Allowance
for potential lease and |
|
|
|
| installment
loan losses |
|
|
132,010,054 |
124,557,217 |
|
| Redeemable
capital |
|
11 |
1,806,797 |
20,315,786 |
|
| Long
term loans |
|
12 |
1,946,292,015 |
1,366,388,013 |
|
| Long
term certificates of investment |
|
13 |
6,944,486 |
7,788,387 |
|
| Deferred
liability - gratuity |
|
|
7,656,911 |
5,283,770 |
|
| Long
term advances and deposits |
|
14 |
505,553,024 |
394,106,492 |
|
| Current
liabilities |
|
15 |
1,338,715,685 |
1,483,071,229 |
|
| Contingencies
and commitments |
|
16 |
- |
- |
|
|
|
---------- |
---------- |
|
|
Rupees |
4,688,166,714 |
4,087,383,008 |
|
|
========== |
========== |
|
|
|
|
| AUDITORS'
REPORT ANNEXED |
|
| The
annexed notes form an integral part of these accounts. |
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 1997 |
|
|
NOTE |
1997 |
1996 |
|
|
| Lease
rents received and receivable |
|
Rupees |
1,596,026,515 |
1,446,489,837 |
|
|
| Income from: |
|
| Lease
contracts |
|
690,297,653 |
596,088,014 |
|
| Installment
loans |
|
43,204,436 |
35,204,918 |
|
| Others |
|
17 |
48,723,230 |
25,688,902 |
|
|
---------- |
---------- |
|
|
782,225,319 |
656,981,834 |
|
|
| Less: |
|
| Direct
cost of leases |
|
18 |
15,864,257 |
12,850,080 |
|
| Finance
and bank charges |
|
19 |
474,359,882 |
362,477,151 |
|
| Selling,
9eneral and administrative expenses |
|
20 |
99,736,283 |
82,652,743 |
|
| Allowance
for potential lease losses |
|
35,167,990 |
32,465,705 |
|
|
---------- |
---------- |
|
|
625,128,412 |
490,445,679 |
|
|
---------- |
---------- |
|
| Operating
profit |
|
157,096,907 |
166,536,155 |
|
| Provision
for taxation |
|
23 |
25,000,000 |
18,000,000 |
|
|
---------- |
---------- |
|
| Profit
for the year |
|
132,096,907 |
148,536,155 |
|
| Unappropriated
profit brought forward |
|
10,045,675 |
9,008,809 |
|
|
---------- |
---------- |
|
|
142,142,582 |
157,544,964 |
|
|
| APPROPRIATIONS: |
|
| Transfer
to general reserve |
|
65,000,000 |
75,000,000 |
|
| Proposed
dividend @ 45% (1996 · @45%) |
|
72,499,289 |
72,499,289 |
|
|
---------- |
---------- |
|
|
137,499,289 |
147,499,289 |
|
|
---------- |
---------- |
|
| Unappropriated
profit carried forward |
|
Rupees |
4,643,293 |
10,045,675 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION FOR THE YEAR ENDED JUNE 30, 1997 |
|
|
|
|
1997 |
1996 |
|
| CASHFLOWS
FROM OPERATING ACTIVITIES |
|
| Profit
for the year |
|
157,096,907 |
166,536,155 |
|
| Add:
Adjustment to reconcile profit to net cash |
|
|
|
| provided
by operating activities |
|
|
|
| Depreciation
and amortisation |
|
27,145,716 |
15,073,772 |
|
| Allowance
for potential lease losses - net |
|
7,452,837 |
22,646,486 |
|
| Provision
for staff retirement benefits - net |
|
2,373,141 |
1,935,837 |
|
| Provision
for mark up on long term finance |
|
21,711,137 |
31,768,091 |
|
| Gain
on sale of fixed assets |
|
(446,650) |
(556,457) |
|
|
---------- |
---------- |
|
| Net
cash provided by operating activities |
|
215,333,088 |
237,403,884 |
|
| (Increase)/Decrease
in current assets |
|
(35,257,901) |
(36,840,238) |
|
| Increase/(Decrease)
in current liabilities |
|
21,335,483 |
64,613,098 |
|
|
---------- |
---------- |
|
| Net
cash from operating activities before income tax |
|
201,410,670 |
265,176,744 |
|
| Income tax |
|
- |
(7,743,991) |
|
|
---------- |
---------- |
|
| Net
cash from operating activities |
|
201,410,670 |
257,432,753 |
|
|
| CASHFLOWS
FROM INVESTING ACTIVITIES |
|
|
|
| Investment
in leases - net |
|
(451,841,950) |
(975,686,788) |
|
| Investments |
|
(39,300,347 |
(24,941,550) |
|
| Capital
expenditure |
|
(18,070,307 |
(27,494,110) |
|
| Long
term loans and advances - net |
|
(2,808,024 |
(8,324,446) |
|
| Proceeds
from sale of fixed assets |
|
1,802,856 |
7,316,632 |
|
|
---------- |
---------- |
|
| Net
cash used in investing activities |
|
(510,217,772) |
(1,029,130,262) |
|
|
|
|
| CASHFLOWS
FROM FINANCING ACTIVITIES |
|
|
|
| Proceeds
of shares issued against conversion option |
|
- |
39,330,599 |
|
| Long
term loans |
|
1,035,382,130 |
826,406,030 |
|
| Short
term loans and running finance |
|
(219,297,966) |
116,066,490 |
|
| Certificates
of investment |
|
55,169,163 |
(54,068,613) |
|
| Deposits
from lessees - net |
|
117,643,687 |
112,924,722 |
|
| Repayment
of redeemable capital and mark up |
|
(156,087,264 |
(83,594,253) |
|
| Repayment
of long term loans |
|
(373,214,270 |
(198,770,404) |
|
| Long
term deposits, prepayments and deferred costs |
|
(30,875,886 |
(17,301,501) |
|
| Payment
of dividend |
|
(68,781,279 |
(53,218,704) |
|
|
---------- |
---------- |
|
| Net
cash generated from financing activities |
|
359,938,315 |
687,774,366 |
|
|
---------- |
---------- |
|
| Net
Increase/(Decrease)in cash activities |
|
51,131,213 |
(83,923,143) |
|
| Cash
and bank balances at beginning of the year |
|
73,956,266 |
157,879,409 |
|
|
---------- |
---------- |
|
| Cash
and bank balances at end of the year |
|
125,087,479 |
73,956,266 |
|
|
========== |
========== |
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 1997 |
|
|
| 1.
LEGAL STATUS AND NATURE OF BUSINESS |
|
| The
Company was incorporated in Pakistan as a private limited company on July 1,
1986 and |
|
| was
converted into a public limited company on December 23, 1987. The Company is
listed on |
|
| Karachi,
Lahore and Islamabad Stock Exchanges. The main business activity is leasing
of |
|
| moveable
assets. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
Accounting convention |
|
| These
financial statements have been prepared under the historical cost convention. |
|
|
| 2.2
Recognition of lease income |
|
| The
company follows the "financing method" in accounting for
recognition of lease income. |
|
|
| At
the commencement of a lease, the total unearned lease income consists of the
excess of |
|
| aggregate
lease contract receivables over the cost of the leased equipment. At the time
a lease |
|
| is
executed, a portion of unearned lease income which approximates the initial
costs directly |
|
| associated
with negotiating and consummating the lease plus an amount equal to the |
|
| allowance
for potential lease losses is taken into income. The remainder of the
unearned lease |
|
| income
is taken into income over the term of the lease, starting with the month in
which the |
|
| lease
is executed, so as to produce a systematic return on the net investment in
the lease. |
|
|
| 2.3
Allowance for potential lease losses |
|
| The
allowance for potential lease losses is maintained at a level which, in the
judgement of |
|
| management,
is adequate to provide for potential losses on lease portfolio that can be |
|
| reasonably
anticipated. The allowance is increased by provisions charged to income and
is |
|
| decreased
by charge offs, net of recoveries. |
|
|
| 2.4
Tangible fixed assets and depreciation |
|
| Operating
assets are stated at cost less accumulated depreciation. |
|
|
| Depreciation
is charged to income applying straight line method, whereby cost of an asset
is |
|
| written
off over its estimated useful life. In respect of additions and deletions of
assets during |
|
| the
year, depreciation is charged from the month of acquisition and upto the
month preceding |
|
| the
deletion respectively. |
|
|
| Maintenance
and repairs are charged to income as and when incurred. |
|
|
| Major
renewals and improvements are capitalised and the assets so replaced, if any,
are |
|
| retired.
Gains and losses on disposal of assets, if any, are included in income
currently. |
|
|
| 2.5
Long term investments |
|
| These
are stated at cost. Return on investment is recognised at rates specified in
the |
|
| respective
investment schemes and accrued for the period. The income is recognised on
the |
|
| assumption
that such investments will be held till the terminal date. |
|
|
| Investment
in associated companies is stated at cost. Permanent diminution in value of |
|
| investments,
if any, is charged to income in the year of occurrence. Dividend income is |
|
| recognised
when the right to receive the dividend is established. |
|
|
| 2.6
Deferred costs |
|
|
| 2.6.1 Loans |
|
| Loan
originating costs, front end fee and documentation costs are amortised over
the |
|
| loan
period or five years, whichever is shorter. |
|
|
| 2.6.2
Project development costs |
|
| Expenditure
incurred in connection with development of various projects and joint
ventures are |
|
| classified
as project development costs and upon completion of such projects or joint
ventures |
|
| are
amortised over a period of five years. |
|
|
| 2.7
Staff retirement benefits |
|
| The
Company operates an unfunded gratuity scheme covering all its permanent
employees |
|
| who
have completed the minimum qualifying period of six months. |
|
|
| 2.8
Foreign currencies |
|
| Transactions
in foreign currencies are accounted for in rupees at the rate prevailing on
the |
|
| date
of transaction. Monetary assets and liabilities in foreign currencies are
translated into |
|
| rupees
at the rate of exchange prevailing at the balance sheet date. Realised and
unrealised |
|
| exchange
gains and losses are dealt with in the profit and loss account. Foreign
currency |
|
| loans
registered under Exchange Risk Coverage Scheme of the State Bank of Pakistan
(SBP) |
|
| are
translated into rupees at the rate prevailing on the date of disbursement. |
|
|
| 2.9
Offsetting of financial assets and financial liabilities |
|
| A
financial asset and a financial liability is offset and the net amount
reported in the balance |
|
| sheet
if the Company has the legal enforceable right to set off the transaction and
also intends |
|
| either
to settle on a net basis or to realise the asset and settle the liability
simultaneously. |
|
|
| 2.10 Taxation |
|
|
| 2.10.1
Current |
|
| Income
for the purposes of computing current taxation is determined under the
provisions of |
|
| tax
law whereby lease rentals received or receivable by the Company are deemed to
be |
|
| income.
Provision for taxation is thus based on income determined in accordance with
the |
|
| accounting
policy explained in Note 2.2 and adjusted in accordance with the requirements
of |
|
| the tax law. |
|
|
| 2.10.2
Deferred |
|
| The
Company accounts for deferred taxation using the liability method on timing
differences |
|
| arising
from using the different methods in the recognition of lease income for tax
purposes |
|
| and
accounting purposes as well as for all other significant timing differences.
However, |
|
| deferred
tax is not provided if it can be established that timing differences will not
reverse in |
|
| the
foreseeable future. |
|
|
| 3.
FIXED ASSETS - tangible |
|
|
| 3.1
Operating assets |
|
|
Depreciation |
|
|
Accumulated |
Book |
|
|
Cost at |
Additions/ |
Cost at |
depreciation at |
value at |
For |
Rate |
|
|
July 1, 1996 |
(Deletions) |
June 30, 1997 |
June 30, 1997 |
June 30, 1997 |
the Year |
(%) |
|
|
| Leasehold |
|
| improvements |
|
11,847,409 |
1,069,887 |
12,917,296 |
9,198,219 |
3,719,077 |
1,572,911 |
15 |
|
|
|
|
|
|
| Furniture and |
|
|
|
|
|
| office
equipment |
21,558,008 |
4,321,155 |
24,568,800 |
11,189,923 |
13,378,877 |
3,243,138 |
15 |
|
|
|
(1,308,363) |
|
|
|
|
|
|
|
|
|
| Motor vehicles |
|
28,569,086 |
12,679,265 |
39,143,210 |
13,858,382 |
25,284,828 |
8,241,510 |
20 |
|
|
|
(2,105,141) |
|
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Rupees |
|
61,972,503 |
18,070,307 |
76,629,306 |
34,246,524 |
42,382,782 |
11,057,559 |
|
|
|
(3,413,504) |
|
| ========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
| 1996-Rupees |
|
45,412,159 |
27,494,110 |
61,972,503 |
25,246,263 |
36,726,240 |
8,732,454 |
|
|
|
(10,933,766) |
|
| ========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
| 3.2
Movement of accumulated depreciation during the year: |
|
|
Accumulated |
Depreciation |
Adjustment |
Accumulated |
|
|
depreciation |
charged |
on disposal |
depreciation |
|
|
as at |
during the |
during the |
as at |
|
|
July 1, 1996 |
year |
year |
June 30, 1997 |
|
|
| Leasehold
improvements |
|
7,625,310 |
1,572,911 |
- |
9,198,221 |
|
| Furniture
and office equipment |
|
8,783,028 |
3,243,138 |
836,243 |
11,189,923 |
|
| Motor vehicles |
|
8,837,925 |
6,241,510 |
1,221,055 |
13,858,380 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Rupees |
|
25,246,263 |
11,057,559 |
2,057,298 |
34,246,524 |
|
| ========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
| 1996-Rupees |
|
20,687,400 |
8,732,454 |
4,173,591 |
25,246,263 |
|
| ========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
| Assets
deleted during the year: |
|
|
Accumulated |
Book |
Sale |
Mode of |
Sold |
|
| Description |
|
Cost |
depreciation |
Value |
Proceeds |
Disposal |
to |
|
|
|
|
| Suzuki Mehran |
|
215,575 |
125,755 |
89,820 |
89,820 |
Company Policy |
S. Basit Raza (Employee) |
|
|
|
|
| Suzuki Mehran |
|
212,300 |
116,754 |
95,546 |
95,546 |
Company Policy |
Mian Faisal Riaz
(Employee) |
|
|
|
|
| Suzuki Mehran |
|
212,300 |
116,754 |
95,546 |
95,546 |
Company Policy |
Ms. Aseya Qasim
(Employee) |
|
|
|
|
|
|
|
|
| Toyota Corolla |
|
370,075 |
228,216 |
141,859 |
141,859 |
Company Policy |
Khalid Amir (Employee) |
|
| Suzuki Mehran |
|
284,250 |
80,546 |
203,704 |
203,704 |
Company Policy |
Irfan Ahmad (Employee) |
|
| Suzuki Mehran |
|
181,203 |
151,000 |
30,203 |
165,000 |
Negotiation |
Haji Ismail Ahmed |
|
|
| Suzuki Khyber |
|
210,235 |
210,234 |
1 |
151,000 |
Negotiation |
S. Zaheeruddin Ali |
|
| Suzuki Mehran |
|
181,203 |
160,063 |
21,140 |
130,000 |
Ins. Claim |
Adamjee Insurance Go. Ltd |
|
| Suzuki Mehran |
|
238,000 |
31,733 |
206,267 |
238,000 |
Ins. Claim |
Adamjee Insurance Co. Ltd |
|
| Seagate
Hard Disk |
17,500 |
2,188 |
15,312 |
10,000 |
Negotiation |
Optimum Technology |
|
|
| Seagate
Hard Disk |
38,000 |
6,175 |
31,825 |
25,000 |
Negotiation |
Unix Computer Systems |
|
|
(Private) Limited |
|
|
| Canon |
|
Shirazi Trading Co. |
|
| Photocopier |
|
289,450 |
177,288 |
112,162 |
117,000 |
Negotiation |
(Private) Limited |
|
|
| Panasonic |
|
| Mobile Phone |
|
40,925 |
29,671 |
11,254 |
2,000 |
Negotiation |
Alfa International |
|
|
| Canon |
|
Shirazi Trading Co. |
|
| Fax Machine |
|
45,000 |
44,999 |
1 |
10,000 |
Negotiation |
(Private) Limited |
|
|
| PABX |
|
Digital Communications |
|
| DCX-1000 |
|
592,000 |
473,600 |
118,400 |
125,000 |
Negotiation |
(Private) Limited |
|
|
| Computer |
|
160,488 |
85,135 |
75,353 |
95,568 |
Ins. Claim |
Adamjee Insurance Co. Ltd |
|
| Furniture |
|
60,500 |
8,318 |
52,182 |
52,182 |
Company Policy |
Sohail Ejaz |
|
| Electrical Appliances |
64,500 |
8,869 |
55,631 |
55,631 |
Company Policy |
Sohail Ejaz |
|
|
---------- |
---------- |
---------- |
---------- |
|
| Rupees |
|
3,413,504 |
2,057,298 |
1,356,206 |
1,802,856 |
|
|
========== |
========== |
========== |
========== |
|
|
| 4.
LONG TERM INVESTMENTS - at cost |
|
|
Note |
1997 |
1996 |
|
| Federal
Investment Bonds |
|
4.1 |
7,915,000 |
7,915,000 |
|
|
|
|
|
| In
associated companies |
|
|
|
| - Quoted |
|
4.2 |
63,974,052 |
63,974,052 |
|
| - Unquoted |
|
4.3 |
54,523,567 |
- |
|
|
|
---------- |
---------- |
|
|
|
118,497,619 |
63,974,052 |
|
|
|
|
|
|
|
---------- |
---------- |
|
|
Rupees |
126,412,619 |
71,889,052 |
|
|
========== |
========== |
|
|
| 4.1
Represents investment made in Government Securities as required under the
relevant |
|
| provision
of the State Bank of Pakistan's Rules for Non-Bank Financial Institutions to
maintain |
|
| liquidity
against certain liabilities. The securities are redeemable within a period of
six months ¢ |
|
| (included
in short term investments as per note 7) to ten years and earn mark up
varying from |
|
| 14.99%
per annum to 16.95% per annum receivable half yearly from the date of issue. |
|
|
| 4.2 Quoted |
|
|
| Name of |
|
Equity held |
No.of |
Currency of |
Cost price |
Cost of |
Cost of |
Market value |
|
| associated |
|
(%) |
shares |
investment |
per share |
investment |
investment |
of investment |
|
| company |
|
|
held |
|
as at |
as at |
as at |
|
|
|
|
June 30, 1997 |
June 30, 1997 |
June 30, 1997 |
|
|
| Oman ORIX |
|
| Leasing
Co. SAOG |
20 |
400,000 |
Rial Omani |
RO 1 each |
RO 400,000 |
33,974,052 |
114,198,236 |
|
|
|
|
| ORIX
Investment |
|
|
|
| Bank
Pakistan Ltd. |
15 |
3,000,000 |
Pak Rupees |
Rs, 10 each |
Rs. 30,000,000 |
30,000,000 |
37,500,000 |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
|
|
Rupees |
63,974,052 |
151,698,236 |
|
|
=========== |
=========== |
=========== |
=========== |
=========== |
=========== |
=========== |
|
|
| 4.3 Unquoted |
|
| Name of |
|
Equity held |
No.of |
Currency of |
Cost price |
Cost of |
Cost of investment |
|
| associated |
|
(%) |
shares |
investment |
per share |
investment |
|
| company |
|
|
held |
|
as at |
1997 |
1996 |
|
|
|
June 30, 1997 |
Rupees |
|
|
|
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
|
| ORIX
Leasing Egypt SAE |
23 |
46,000 |
Egyptian Pounds |
EP. 100 each |
EP. 4,600,000 |
54,523,567 |
- |
|
|
=========== |
=========== |
=========== |
=========== |
=========== |
=========== |
=========== |
|
|
| ORIX
Leasing Egypt SAE was incorporated on June 23,1997 and had not commenced |
|
| business
on June 30,1997.The net asset value per share was Egyptian pound 100 each |
|
| (Pak
rupees 1,185/- per share). |
|
|
| 5.
LONG TERM LOANS AND ADVANCES |
NOTE |
1997 |
1996 |
|
| -
secured, considered good |
|
| Loans
to employees: |
|
| Chief
Executive |
|
3,621,194 |
3,732,002 |
|
| Executives |
|
18,182,083 |
15,567,580 |
|
| Other
employees |
|
1,118,789 |
814,460 |
|
|
---------- |
---------- |
|
|
22,922,066 |
20,114,042 |
|
| Less:
Current portion |
|
2,480,008 |
1,862,817 |
|
|
---------- |
---------- |
|
|
Rupees |
20,442,058 |
18,251,225 |
|
|
|
========== |
========== |
|
|
Rupees |
18,492,333 |
16,056,848 |
|
|
Rupees |
1,949,725 |
2,194,377 |
|
|
|
========== |
========== |
|
|
|
|
| Loans
to Chief Executive and Executives include house loans in accordance with
terms of the |
|
| Company's
employment policy, repayable within a period of 20 years or retirement date
whichever |
|
| is
earlier except for the loan to Chief Executive which is repayable within ten
years. The loans are |
|
| secured
against equitable mortgage on the property by depositing the title documents
of the |
|
| property
with the Company and carry mark up of 5% per annum. Loans to other employees |
|
| include
motor cycle loans, repayable within a period of five years and do not carry
any mark up. |
|
|
| Maximum
amount outstanding at the end of any month during the year against loans to
Chief |
|
| Executive
and Executives is Rs. 23,485,351/- (1996: Rs. 19,401,160/-) |
|
|
| 6.
LONG TERM DEPOSITS, PREPAYMENTS AND |
|
| DEFERRED
COSTS |
|
|
| Deposits |
|
2,220,813 |
1,294,313 |
|
| Prepayments |
|
26,400 |
55,200 |
|
| Deferred costs |
|
6.1 |
36,516,836 |
22,626,807 |
|
|
---------- |
---------- |
|
|
Rupees |
38,764,049 |
23,976,320 |
|
|
========== |
========== |
|
| 6.1
Deferred Costs |
|
| Loan
originating cost |
|
6.1.1 |
9,688,936 |
11,503,648 |
|
| Commitment
charges |
|
6.1.2 |
372,579 |
558,867 |
|
| Exchange
differences on: |
|
|
|
| Repayment
of foreign currency loans |
|
6.1.3 |
6,894,696 |
6,473,366 |
|
| Hedging
of foreign currency loans |
|
6.1.4 |
13,536,664 |
- |
|
|
|
20,431,360 |
6,473,366 |
|
| Project
development costs |
|
6.1.5 |
6,023,961 |
4,090,926 |
|
|
|
---------- |
---------- |
|
|
Rupees |
36,516,836 |
22,626,807 |
|
|
========== |
========== |
|
|
|
|
| 6.1.1. Represents loan originating costs paid to lending institutions
on signing of various loans. |
|
| These
are being written off over loan period or five years, whichever is shorter. |
|
|
| 6.1.2 Represents commitment charges on loans from international
lending institutions during the |
|
| unregistered
period with the SBP which has been calculated from the loan offer date till
the |
|
| registration
of loan with the SBP. These are being written off over the loan period or
five years, |
|
| whichever
is shorter. |
|
|
| 6.1.3 Represents the increase in the amount of foreign currency loans
resulting from the difference |
|
| in
buying and selling rates of foreign currency as determined by the SBP.
Receipts of loans are |
|
| at
buying rates and are the actual amount realised in Pak rupees. Repayments,
when due, will |
|
| be
made at selling rates in accordance with the SBP rules. The difference
arising from the use |
|
| of
above mentioned rates is treated as deferred cost to be written off over the
loan period or |
|
| five
years, whichever is shorter. |
|
|
| 6.1.4
In the absence of Exchange Risk Over by the SBP, the
Company has adopted an alternative |
|
| method
to hedge foreign exchange risk associated with its foreign currency
borrowings. This |
|
| involves
purchasing foreign currency from the secondary market, placing the foreign
currency |
|
| on
deposit and obtaining credit facilities against these deposits in local
currency on matching |
|
| basis. |
|
|
| Premium
paid on purchase of foreign currency from the secondary market is deferred
and is |
|
| written
off over the loan period or five years, which ever is shorter. |
|
|
| 6.1.5 This represents expenditure in connection with development of
joint ventures already |
|
| completed
and new projects being explored in the Middle East region and are being
amortised |
|
| in
accordance with the policy mentioned in Note 2.6.2. |
|
|
| 7.
CURRENT ASSETS |
|
| Current
portion of net investment in leases and |
|
| installment
loans, long term loans & advances |
|
7.1 |
1,610,883,129 |
1,385,771,931 |
|
| Short
term loans - secu red |
|
7.2 |
14,590,000 |
14,580,000 |
|
| Shod
term investments |
|
4.1 |
22,500,000 |
37,723,220 |
|
| Other
current assets |
|
7.3 |
61,195,849 |
25,947,948 |
|
| Cash
and bank balances |
|
7.4 |
125,087,479 |
73,956,266 |
|
|
--------- |
--------- |
|
|
Rupees |
1,834,256,457 |
1,537,979,365 |
|
|
========== |
========== |
|
|
|
|
|
|
NOTE |
1997 |
1996 |
|
| 7.1
Current maturity |
|
| Net
investment in leases and installment loans |
|
1,608,403,121 |
1,383,909,114 |
|
| Long
term loans and advances |
|
2,480,008 |
1,862,817 |
|
|
--------- |
--------- |
|
|
1,610,883,129 |
1,385,771,931 |
|
|
========== |
========== |
|
|
|
| 7.2
Represents short term finance facilities provided on secured basis in the
normal course of |
|
| business. |
|
|
|
|
|
| 7.3
Other current assets |
|
|
| Advances
- unsecured, considered good |
|
2,801,910 |
2,517,951 |
|
| Advance
payment of income tax |
|
21,451,812 |
10,143,074 |
|
| Short
term prepayments: |
|
| Insurance
on leased assets |
|
7,819,886 |
5,708,707 |
|
| Rent |
|
695,481 |
228,300 |
|
| Others |
|
3,152,591 |
2,069,609 |
|
|
|
11,667,958 |
8,006,616 |
|
| Accrued
return on investments and deposits |
|
15,807,080 |
1,918,975 |
|
| Dividend
receivable from an associated company |
|
3,172,200 |
- |
|
| Other
receivables |
|
6,294,889 |
3,361,332 |
|
|
--------- |
--------- |
|
|
Rupees |
61,195,849 |
25,947,948 |
|
|
========== |
========== |
|
| 7.4
Cash and bank balances |
|
| Balances
with banks on: |
|
| Current
account |
|
|
3,870,375 |
10,813,968 |
|
| Deposit
account |
|
7.4.1 |
93,665,469 |
62,823,365 |
|
| Foreign
currency deposit account under lien |
|
7.4.2 |
27,307,024 |
- |
|
|
|
124,842,868 |
73,637,333 |
|
| Cash in hand |
|
|
244,611 |
318,933 |
|
|
|
--------- |
--------- |
|
|
Rupees |
125,087,479 |
73,956,266 |
|
|
|
========== |
========== |
|
|
| 7.4.1 Includes a deposit of Rs. 950,000/- with the SBP as required
under the relevant provision of the |
|
| State
Bank of Pakistan's Rules for Non-Bank Financial Institutions to maintain
liquidity against |
|
| certain
liabilities. |
|
|
| 7.4.2
Foreign currency deposit account under lien |
|
| Foreign
currency deposits |
|
320,747,961 |
- |
|
| Credit
facilities availed |
|
7.4.2.1 |
(293,440,937) |
- |
|
|
|
--------- |
--------- |
|
|
Rupees |
27,307,024 |
- |
|
|
|
========== |
========== |
|
|
|
|
| 7.4.2.1 As explained in Note 6.1.4 local currency credit facilities
secured against foreign currency |
|
| deposits
have been obtained to hedge against exchange risk associated with foreign
currency |
|
| borrowings
and have been offset in accordance with the policy stated in Note 2.9. The
rate of |
|
| mark
up ranges from 14.09% to 16% per annum. The maturity of credit facility and
foreign |
|
| currency
deposits are upto September 2003. |
|
|
| 8.
ISSUED, SUBSCRIBED AND PAID UP |
|
| SHARE
CAPITAL |
|
|
| Fully
paid ordinary shares of Rs. 10/- each |
|
|
| Number of Shares |
|
NOTE |
1997 |
1996 |
|
| 1996 |
1997 |
|
|
| Issued
for Cash |
|
|
|
| 12,200,640 |
13,106,249 |
At beginning of the year |
|
131,062,490 |
122,006,400 |
|
| 905,609 |
- |
During the year |
|
- |
9,056,090 |
|
| ------------ |
------------ |
|
------------ |
------------ |
|
| 13,106,249 |
13,106,249 |
|
131,062,490 |
131,062,490 |
|
|
| Issued
as bonus shares |
|
|
|
| 3,004,704 |
3,004,704 |
|
30,047,040 |
30,047,040 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| 16,110,953 |
16,110,953 |
|
Rupees |
161,109,530 |
161,109,530 |
|
| ========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
|
|
| ORIX
Corporation, Japan and |
its nominees held
9,195,647 (1996: 6,446,498) |
ordinary shares |
|
| of
Rs. 10/- each at June 30, 1997. |
|
|
| 9.
SHARE PREMIUM |
|
| At
beginning of the year |
|
287,216,909 |
256,942,400 |
|
| Received
during the year |
|
- |
30,274,509 |
|
|
---------- |
---------- |
|
|
Rupees |
287,216,909 |
287,216,909 |
|
|
========== |
========== |
|
| 10.
GENERAL RESERVE |
|
| At
beginning of the year |
|
|
227,500,000 |
152,500,000 |
|
| Reversal
of dividend |
|
10.1 |
3,718,010 |
- |
|
| Transfer
from profit and loss account |
|
|
65,000,000 |
75,000,000 |
|
|
|
---------- |
---------- |
|
|
Rupees |
296,216,010 |
227,500,000 |
|
|
========== |
========== |
|
|
|
| 10.1
Represents dividend of prior year no longer payable to International Finance
Corporation (IFC) |
|
| in
terms of contractual agreement No. INT/PK 4252(A). |
|
|
| 11.
REDEEMABLE CAPITAL - secured |
|
| Bankers
Equity Limited (BEL) |
|
| Sanctioned
amount - aggregate of |
|
| lines
2,3,4,5 and 6 |
|
Rupees |
300,000,000 |
300,000,000 |
|
|
========== |
========== |
|
|
300,000,000 |
300,000,000 |
|
|
253,523,889 |
231,812,752 |
|
|
---------- |
---------- |
|
|
553,523,889 |
531,812,752 |
|
|
|
|
|
|
|
| Repayments
made upto last year |
|
378,067,223 |
294,472,970 |
|
| Repayments
made during the year |
|
| including
the related mark up |
|
156,087,264 |
83,594,253 |
|
|
---------- |
---------- |
|
|
534,154,487 |
378,067,223 |
|
|
|
|
|
---------- |
---------- |
|
|
19,369,402 |
153,745,529 |
|
|
| Current
maturity |
|
(17,562,606) |
(133,429,743) |
|
|
---------- |
---------- |
|
|
Rupees |
1,806,797 |
20,315,786 |
|
|
|
========== |
========== |
|
|
|
| Line |
Selling |
Purchase |
|
Installment payments |
|
|
Price |
Price |
|
from |
|
to |
|
|
| 2 |
100,000,000 |
177,517,426 |
|
December 25, 1990 |
|
August 20, 1996 |
|
| 3 |
50,000,000 |
92,760,434 |
|
March 26, 1991 |
|
January 25, 1998 |
|
| 4, 5 |
|
| & 6 |
150,000,000 |
283,343,251 |
|
From June 28, 1996 to
July 18, 1997 |
|
| ---------- |
---------- |
---------- |
|
i.e., repayment after
five years of each |
|
| Rs. |
300,000,000 |
553,621,111 |
|
disbursement. |
|
| ========== |
========== |
========== |
|
|
|
| 11.1
The facilities were utilised solely for disbursement against leasing
contracts executed by the |
|
| Company. |
|
|
| The
arrangement is secured by deed of hypothecation in favour of BEL, deposit of
title |
|
| documents
of these assets and hypothecation of the corresponding receivables. |
|
|
| 12.
LONG TERM LOANS - secured |
|
| Note |
Sanctioned |
Utilised amount |
Rupees |
|
Mark up |
Exchange |
|
|
amount |
1997 |
1996 |
1997 |
1996 |
rate |
risk fee |
|
|
(%) |
{%) |
|
|
| Foreign
currency loans |
|
| USS |
|
|
| 12.10 |
5.00 |
5.00 |
5.00 |
19,838,876 |
39,677,584 |
10.80 |
3.88 |
|
| 12.20 |
5.00 |
5.00 |
5.00 |
19,765,207 |
39,530,329 |
1.50 |
5.00 |
|
|
over LIBOR |
|
| 12.30 |
10.00 |
10.00 |
10.00 |
115,879,714 |
162,231,553 |
9.4 |
7.08 |
|
| 12.40 |
20.00 |
9.80 |
- |
397,021,686 |
- |
2.13 |
- |
|
|
|
|
over LIBOR |
|
|
| 12.50 |
12.50 |
12.50 |
12.50 |
289,621,095 |
334,178,182 |
8.5 |
6.66 |
|
| 12.60 |
3.30 |
3.30 |
3.30 |
100,739,430 |
116,524,980 |
2.75 |
- |
|
|
over LIBOR |
|
| 12.70 |
13.00 |
13.00 |
11.90 |
456,872,094 |
367,690,316 |
16.00 |
Inclusive in |
|
|
mark up |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
68.80 |
58.60 |
47.70 |
1,399,738,102 |
1,059,832,944 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
| NLG |
|
|
| 12.80 |
10.00 |
10.00 |
10.00 |
120,507,350 |
154,937,950 |
10.20 |
5.00 |
|
|
|
|
| 12.90 |
4.00 |
4.00 |
4.00 |
43,580,168 |
61,012,268 |
10.20 |
5.00 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
14.00 |
14.00 |
14.00 |
164,087,518 |
215,950,218 |
|
|
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
|
|
|
|
|
| Local
currency loans |
|
| RUPEES |
|
| 12.10 |
20.0 |
20.0 |
20.0 |
1,666,667 |
8,333,334 |
17.25 |
- |
|
| 12.11 |
342.5 |
342.5 |
342.5 |
228,333,333 |
342,500,000 |
18.50 |
- |
|
| 12.12 |
50.0 |
50.0 |
50.0 |
33,333,334 |
50,000,000 |
18.00 |
- |
|
| 12.13 |
50.0 |
50.0 |
50.0 |
33,333,333 |
50,000,000 |
18.00 |
- |
|
| 12.14 |
25.0 |
25.0 |
25.0 |
19,958,735 |
25,000,000 |
18.50 |
- |
|
| 12.15 |
40.0 |
40.0 |
- |
33,333,333 |
- |
18.50 |
- |
|
| 12.16 |
100.0 |
100.0 |
- |
100,000,000 |
- |
18.00 |
- |
|
| 12.17 |
50.0 |
50.0 |
- |
50,000,000 |
- |
19.00 |
- |
|
| 12.18 |
100.0 |
100.0 |
- |
100,000,000 |
- |
19.00 |
- |
|
| 12.19 |
30.0 |
30.0 |
- |
30,000,000 |
- |
18.00 |
- |
|
| 12.20 |
100.0 |
100.0 |
- |
100,000,000 |
- |
18.50 |
- |
|
| 12.21 |
120.0 |
120.0 |
- |
120,000,000 |
- |
18.50 |
- |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
1,027.5 |
1,027.5 |
487.5 |
849,958,735 |
475,833,334 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
|
2,413,784,355 |
1,751,616,496 |
|
| Less:
Current maturity |
|
467,492,340 |
385,228,483 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
Rupees |
1,946,292,015 |
1,366,388,013 |
|
| ========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| The above loans are secured |
by hypothecation of
leased assets and related lease receivables |
|
| and
the exchange risk fee is further secured by guarantees from commercial banks. |
|
|
| The
local currency loans are obtained under sale and purchase agreements for
financing of |
|
| lease
operations. |
|
|
| Name
of lending institutions |
|
Note |
Commencement |
Purpose |
|
Mode of |
|
Mode of |
|
of repayment |
|
Principal repayment |
Payment of |
|
mark up |
|
| 12.1
Asian Development Bank |
|
|
Jul 15, 92 |
Financing of lease |
12 equal semi annual |
Semi annual |
| Loan
1 -1007 - Pak (PS) |
|
|
operations. |
|
installments |
|
|
|
|
| 12.2
Asian Finance and Investment |
|
Jul 15, 92 |
Financing of lease |
12 equal semi annual |
Semi annual |
| Corporation
Loan 14 Pak (C) |
|
|
operations. |
|
installments |
|
|
|
|
| 12.3
Asian Development Bank |
|
|
Jan 15, 94 |
Financing of lease |
12 equal semi annual |
Semi annual |
| Loan
1133 Pak (PS) |
|
|
operations. |
|
installments |
|
|
|
|
| 12.4
Asian Development Bank |
|
12.4.1 |
Mar 15, 99 |
Financing of lease |
10 equal semi annual |
Semi annual |
| Loan
1394 Pak (PS) |
|
|
operations. |
|
installments |
|
|
|
|
| 12.5
International Finance Corporation |
|
Jun 15, 96 |
Financing of lease |
16 equal semi annual |
Semi annual |
| Loan
INT/PK 4252(A) |
|
|
operations. |
|
installments |
|
|
|
|
| 12.6
International Finance Corporation |
12.6,1 |
Jun 15, 97 |
Financing of lease |
4 equal semi annual |
Semi annual |
| Loan
INT/PK 4252(B) |
|
|
operations. |
|
installments |
|
|
|
|
| 12.7
International Bank for |
|
12.7.1 |
Sep 14, 96 |
Financing of small scale |
Repayment in ten years |
Semi annual |
| Reconstruction
and Development |
|
and micro enterprise |
after 3 years grace
period. |
|
|
|
|
| 12.8
FMO Loan INT/PK 93033 |
|
Apr 01, 96 |
Financing of lease |
10 equal semi annual |
Semi annual |
|
|
operations. |
|
installments |
|
|
|
|
| 12.9
FMO Loan INT/PK 93032 |
|
Apr 01,96 |
Financing of small scale |
8 equal semi annual |
Semi annual |
|
|
and micro enterprises |
installments |
|
|
|
|
| 12.10
Standard Chartered Bank |
|
Dec 31, 94 |
Financing of lease |
Quarterly repayments |
Quarterly |
|
|
operations. |
|
|
|
|
| 12.11
Pakistan Kuwait Investment |
|
Dec 30, 96 |
Financing of lease |
3 equal annual |
|
Quarterly |
| Company
(Private) Limited |
|
|
operations. |
|
installments |
|
|
|
|
| 12.12
ANZ Grindlays Bank plc |
|
|
Dec 13, 96 |
Financing of lease |
6 equal semi annual |
Quarterly |
|
|
operations. |
|
installments |
|
| 12.13
First International Investment Bank |
|
Dec 29, 96 |
Financing of lease |
6 equal semi annual |
Semi annual |
| Limited |
|
|
operations. |
|
installments |
|
|
|
|
| 12.14
Saudi Pak Industrial & Agricultural |
|
Oct 01, 96 |
Financing of lease |
Quarterly repayments |
Quarterly |
| Investment
Company (Pvt) Ltd |
|
|
operations. |
|
|
|
|
| 12.15
American Express Bank Limited |
|
Jun 30, 97 |
Financing of lease |
6 equal semi annual |
Quarterly |
|
|
operations. |
|
installments |
|
|
|
|
| 12.16
Citicorp Investment Bank Pakistan |
|
Jan 11, 98 |
Financing of lease |
4 semi annual
installments |
Quarterly |
| Limited |
|
|
operations. |
|
of Rs. 10 million & |
|
|
|
|
1 installment of Rs. 60 |
|
|
|
|
million thereafter. |
|
|
|
|
| 12.17
ANZ Grindlays Bank plc |
|
|
May 20, 98 |
Financing of lease |
3 equal annual |
|
Semi annual |
|
|
operations. |
|
installments |
|
|
|
|
| 12.18
ANZ Grindlays Bank plc |
|
|
Aug 10, 98 |
Financing of lease |
2 equal annual |
|
Semi annual |
|
|
operations. |
|
installments |
|
|
|
|
| 12.19
Oman International Bank SAOG |
|
Jul 31,98 |
Financing of lease |
9 equal quarterly |
|
Quarterly |
|
|
operations. |
|
installments |
|
|
|
|
|
|
|
|
Jul 04, 98 |
Financing of lease |
Full repayment on |
Quarterly |
| 12.20
Societe Generale |
|
|
operations. |
|
due date. |
|
|
|
|
|
|
|
|
Jul 02, 98 |
Financing of lease |
Full repayment on |
Quarterly |
| 12.14
ABN AMRO Bank |
|
operations. |
|
due date. |
|
|
| 12.4.1 Represents a foreign currency loan from ADB of USS 20.0 million
to be used for financing of |
|
| lease
operations. Commitment charges are payable semi annually at a rate of 0.5%
per |
|
| annum.
Such commitment charges are payable (a) during the first twelve months from
the date |
|
| of
agreement, on 50% of the unutilised part of the loan and (b) thereafter, on
the entire |
|
| unutilised
part of the loan. As explained in note 6.1.4 exchange risk is hedged by use
of an |
|
| alternate
method. |
|
|
| 12.6.1 Represents a foreign currency loan referred to as Loan 'B' for
USS 3.3 million arranged by IFC |
|
| through
a syndicate of international banks. As explained in note 6.1.4 exchange risk
is hedged |
|
| by
use of an alternate method. |
|
|
| 12.7.1 The International Bank for Reconstruction and Development (IBRD)
sanctioned a foreign |
|
| currency
pool loan equivalent to USS 26.0 million to Government of Pakistan (GOP) for |
|
| on-lending
to approved leasing companies in local currency for financing small scale and
micro |
|
| enterprises. |
|
|
| The
loan carries charges at the rate of 16% per annum which includes interest,
administration |
|
| charge,
guarantee commission and foreign exchange risk fee. |
|
|
| 13. CERTIFICATES OF INVESTMENT |
|
| Represents
certificates of investment issued under profit and loss sharing basis at
expected |
|
| rates
of profit ranging from 15% to 19% per annum. The certificates of investment
are for terms |
|
| of
three months to five years. |
|
|
NOTE |
1997 |
1996 |
|
| 14.
LONG TERM ADVANCES AND DEPOSITS |
|
| Security
deposit on leases |
|
14.1 |
609,357,170 |
491,521,040 |
|
|
|
|
104,007,456 |
97,810,301 |
|
|
|
---------- |
---------- |
|
|
|
505,349,714 |
393,710,739 |
|
| Advance
lease rentals received |
|
14.2 |
203,310 |
395,753 |
|
|
|
---------- |
---------- |
|
|
Rupees |
505,553,024 |
394,106,492 |
|
|
|
========== |
========== |
|
|
|
| 14.1
Represents sums received from lessees under lease contracts
and are repayable/adjustable at |
|
| the
expiry of the lease period. |
|
|
| 14.2 Represents sums received in advance and are adjustable against
last rents due as per the |
|
| lease
agreement. |
|
|
| 15.
CURRENT LIABILITIES |
|
| Current
maturity of redeemable |
|
| capital,
long term loan and security deposit |
|
15.1 |
569,062,401 |
616,468,527 |
|
| Short
term loans from banks - secured |
|
15.2 |
235,273,364 |
302,236,466 |
|
| Short
term loan from DFI - secured |
|
|
- |
150,000,000 |
|
| Running
finance under mark up |
|
|
|
| arrangements
- secured |
|
15.3 |
53,174,096 |
55,508,960 |
|
| Shod
term certificates of investment |
|
13 |
180,786,064 |
124,773,000 |
|
| Accrued
financial and related charges |
|
15.4 |
148,572,744 |
125,212,678 |
|
| Creditors |
|
|
7,127,615 |
7,443,924 |
|
| Accrued
expenses |
|
|
5,909,693 |
7,241,393 |
|
| Other liabilities |
|
15.5 |
3,649,364 |
4,025,937 |
|
| Provision
for taxation |
|
|
42,661,055 |
17,661,055 |
|
| Proposed
dividend |
|
|
72,499,289 |
72,499,289 |
|
|
|
---------- |
---------- |
|
|
Rupees |
1,338,715,685 |
1,483,071,229 |
|
|
========== |
========== |
|
|
| 15.1
Current maturity |
|
| Redeemable
capital |
|
11 |
17,562,605 |
133,429,743 |
|
| Long
term loans |
|
12 |
467,492,340 |
385,228,483 |
|
| Security
deposit on leases |
|
14 |
104,007,456 |
97,810,301 |
|
|
|
---------- |
---------- |
|
|
Rupees |
589,062,401 |
616,468,527 |
|
|
========== |
========== |
|
|
|
| 15.2
Represents short term loans utilised against aggregate
facilities of Rs. 261 million (1996: |
|
| Rs.
535 million) from commercial and investment banks under sale and purchase
agreements. |
|
| These
loans carry mark up at an average rate of 48 paisa per Rs. 1,000/- per day.
These |
|
| arrangements
are secured by hypothecation of leased assets and related lease receivables. |
|
|
| 15.3 Represents running finance utilised against aggregate facilities
from commercial banks of |
|
| Rs.
217 million (1996: Rs. 312 million ) for one year and are renewable. The
average rate of |
|
| mark
up is 48 paisa per Rs. 1,000/- per day on daily product basis. These
arrangements are |
|
| secured
by hypothecation of leased assets and related lease receivables. |
|
|
| 15.4
Accrued financial and related charges |
|
|
1997 |
1996 |
|
| Mark up on: |
|
| Long
term loans |
|
80,657,201 |
39,413,070 |
|
| Short
term loans |
|
12,606,176 |
12,570,399 |
|
| Running
finance |
|
4,641,658 |
5,433,313 |
|
| Profit
on certificates of investment |
|
6,885,743 |
3,366,340 |
|
| Commitment
charges |
|
959,681 |
556,556 |
|
| Exchange
risk fee - net |
|
42,822,285 |
63,873,000 |
|
|
---------- |
---------- |
|
|
Rupees |
148,572,744 |
125,212,678 |
|
|
========== |
========== |
|
|
|
|
| 15.5
Other liabilities |
|
| Advance
from customers pending |
|
| lease execution |
|
|
1,562,221 |
3,076,150 |
|
| Unclaimed
dividend |
|
|
352,667 |
274,570 |
|
| Others |
|
|
1,734,276 |
675,217 |
|
|
|
---------- |
---------- |
|
|
Rupees |
3,649,364 |
4,025,937 |
|
|
========== |
========== |
|
|
|
|
| 16.
CONTINGENCIES AND COMMITMENTS |
|
| Leasing
contracts committed but not executed at the balance sheet date were Rs. 6.8
million |
|
| (1996:
Rs, 62.6 million). |
|
|
| 17.
OTHER INCOME |
|
| Return
on foreign currency deposit account |
|
|
19,627,832 |
2,539,911 |
|
| Return
on deposits and investments |
|
|
9,756,683 |
14,269,853 |
|
| Gain
on disposal of operating assets |
|
|
446,650 |
556,457 |
|
| Other
fees and income |
|
|
8,371,829 |
6,085,055 |
|
| Exchange
gain - net |
|
|
7,348,036 |
2,237,626 |
|
| Dividend
income |
|
|
3,172,200 |
- |
|
|
|
---------- |
---------- |
|
|
Rupees |
48,723,230 |
25,688,902 |
|
|
========== |
========== |
|
|
|
NOTE |
1997 |
1996 |
|
| 18.
DIRECT COST OF LEASES |
|
| Insurance
- leased assets |
|
14,384,126 |
10,938,831 |
|
| Court
fee and stamp duty |
|
1,480,131 |
1,911,249 |
|
|
---------- |
---------- |
|
|
Rupees |
15,864,257 |
12,850,080 |
|
|
========== |
========== |
|
|
| 19.
FINANCE AND BANK CHARGES |
|
| Redeemable
capital |
|
|
21,711,137 |
31,768,091 |
|
| Long term loan |
|
|
266,260,260 |
158,331,934 |
|
| Short term loan |
|
|
74,200,623 |
67,391,360 |
|
| Running
finance |
|
|
26,609,094 |
22,382,518 |
|
| Profit
on certificates of investment |
|
|
23,915,412 |
24,543,970 |
|
| Commitment
charges |
|
|
2,172,704 |
1,904,310 |
|
| Exchange
risk fee |
|
|
42,338,661 |
48,951,088 |
|
| Amortisation
of deferred financial costs |
|
|
16,088,157 |
6,341,318 |
|
| Bank
charges and commission |
|
|
1,063,834 |
862,562 |
|
|
|
---------- |
---------- |
|
|
Rupees |
474,359,882 |
362,477,151 |
|
|
========== |
========== |
|
|
|
|
| 20.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|
| Salaries,
allowances and benefits |
|
| Staff
welfare and training |
|
43,418,962 |
35,918,984 |
|
| Rent
and utilities |
|
4,492,142 |
4,424,386 |
|
| Travelling |
|
11,060,904 |
7,481,620 |
|
| Vehicle
running and maintenance |
|
3,426,927 |
5,351,162 |
|
| Insurance
on operating assets |
|
3,800,748 |
3,107,608 |
|
| Legal
and professional charges |
|
2,494,085 |
1,662,759 |
|
| Communication |
|
3,285,194 |
2,636,552 |
|
| Subscription |
|
5,771,060 |
4,755,953 |
|
| Auditors'
remuneration |
|
20.1 |
554,189 |
530,359 |
|
| Advertising |
|
447,540 |
249,017 |
|
| Printing
and stationery |
|
2,477,129 |
1,563,235 |
|
| Depreciation |
|
2,092,795 |
2,010,368 |
|
| Office
repairs and maintenance of equipment |
|
11,057,559 |
8,732,454 |
|
| Donations |
|
3,379,378 |
2,712,891 |
|
| Office
general expenses |
|
1,678,362 |
1,188,742 |
|
|
299,309 |
326,653 |
|
|
Rupees |
---------- |
---------- |
|
|
99,736,283 |
82,652,743 |
|
|
========== |
========== |
|
|
|
|
|
1997 |
1996 |
|
| 20.1
Auditors' remuneration |
|
| Audit fee |
|
150,000 |
100,000 |
|
| NBFI
Audit fee |
|
60,000 |
55,000 |
|
| Tax
and corporate advisory services |
|
220,640 |
90,515 |
|
| Out
of pocket expenses |
|
16,900 |
3,502 |
|
|
---------- |
---------- |
|
|
Rupees |
447,540 |
249,017 |
|
|
========== |
========== |
|
|
| 21.
REMUNERATION OF CHIEF EXECUTIVE AND EXECUTIVES |
|
|
1997 |
|
1996 |
|
|
Chief |
|
Chief |
|
|
|
Executive |
Executives |
Total |
Executive |
Executives |
Total |
|
|
|
| Managerial
remuneration |
1,660,968 |
19,445,998 |
21,106,966 |
1,660,968 |
13,836,625 |
15,497,593 |
|
| Housing
and utilities |
809,032 |
9,471,852 |
10,280,884 |
809,032 |
5,963,113 |
6,772,145 |
|
| Gratuity |
|
80,600 |
1,024,236 |
1,104,836 |
80,600 |
632,477 |
713,077 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Rupees |
|
2,550,600 |
29,942,086 |
32,492,686 |
2,550,600 |
20,432,215 |
22,982,815 |
|
| ========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
| Number |
|
1 |
79 |
|
1 |
62 |
|
|
| ========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
|
|
|
|
| The
Chief Executive and certain executives are also provided with free use of
Company owned |
|
| cars. |
|
|
| 22.
TRANSACTIONS WITH ASSOCIATED COMPANIES |
|
| Dividend
income from Oman ORIX Leasing Company SAOG |
|
Rupees |
3,172,200 |
|
|
|
========== |
|
|
|
|
| Advisory
and placement fee paid to ORIX Investment Bank Pakistan |
|
|
| Limited
in connection with Term Finance Certificates (TFC's) |
|
Rupees |
1,000,000 |
|
|
|
|
========== |
|
|
| 23.
TAXATION |
|
|
|
|
| 23.1 |
|
| Current year |
|
25,000,000 |
17,661,055 |
|
| Prior year |
|
- |
338,945 |
|
|
---------- |
---------- |
|
|
Rupees |
25,000,000 |
18,000,000 |
|
|
========== |
========== |
|
|
|
|
| 23.2 Assessments for all years upto and including assessment year
1995-96 have been finalised by |
|
| Income
Tax Department and all assessed liabilities have been paid by the Company.
However |
|
| certain
expenses have been disallowed by the Income Tax Department against which the |
|
| Company
has preferred appeals before the appellate forums. |
|
|
| 23.3 Deferred taxation arising due to timing differences between book
and income tax revenue or |
|
| charges
is estimated at Rs. 134.1 million (1996: Rs. 107.1 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. |
|
|
| CORRESPONDING
FIGURES |
|
| Prior
year's figures have been re-arranged for the purposes of comparison wherever
necessary. |
|
|
| PATTERN
OF SHAREHOLDING AS AT JUNE 30, 1997 |
|
|
| NUMBER OF |
|
TOTAL |
|
| SHAREHOLDERS |
|
SHAREHOLDING |
SHARES HELD |
|
|
| 465 |
1 |
-- |
100 |
15,369 |
|
| 660 |
101 |
-- |
500 |
215,577 |
|
| 85 |
501 |
-- |
1,000 |
68,210 |
|
| 118 |
1,001 |
-- |
5,000 |
277,636 |
|
| 30 |
5,001 |
-- |
10,000 |
202,126 |
|
| 13 |
10,001 |
-- |
15,000 |
158,165 |
|
| 3 |
15,001 |
-- |
20,000 |
50,666 |
|
| 3 |
20,001 |
-- |
25,000 |
71,750 |
|
| 1 |
25,001 |
-- |
30,000 |
26,306 |
|
| 1 |
35,001 |
-- |
40,000 |
39,325 |
|
| 1 |
40,001 |
-- |
45,000 |
41,911 |
|
| 2 |
45,001 |
-- |
50,000 |
94,516 |
|
| 1 |
60,001 |
-- |
65,000 |
60,984 |
|
| 1 |
70,001 |
-- |
75,000 |
73,300 |
|
| 1 |
75,001 |
-- |
80,000 |
79,000 |
|
| 1 |
90,001 |
-- |
95,000 |
92,900 |
|
| 2 |
100,001 |
-- |
105,000 |
203,350 |
|
| 1 |
115,001 |
-- |
120,000 |
118,509 |
|
| 1 |
155,001 |
-- |
160,000 |
160,000 |
|
| 1 |
190,001 |
-- |
195,000 |
190,200 |
|
| 1 |
200,001 |
-- |
205,000 |
202,446 |
|
| 1 |
245,001 |
-- |
250,000 |
249,734 |
|
| 1 |
395,001 |
-- |
400,000 |
396,234 |
|
| 1 |
440,001 |
-- |
445,000 |
444,675 |
|
| 1 |
520,001 |
-- |
525,000 |
520,590 |
|
| 1 |
795,001 |
-- |
800,000 |
799,977 |
|
| 1 |
905,001 |
-- |
910,000 |
905,609 |
|
| 1 |
1,190,001 |
-- |
1,195,000 |
1,191,872 |
|
| 1 |
9,160,001 |
-- |
9,165,000 |
9,160,016 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
|
| 1,400 |
|
16,110,953 |
|
| ========== |
========== |
========== |
========== |
========== |
|
|
| There
are no shareholdings in the slabs which have not been included above. |
|
|
| CATEGORIES
OF |
|
NUMBER OF |
SHARES |
PERCENTAGE |
|
| SHAREHOLDERS |
|
SHAREHOLDERS |
HELD |
|
|
|
| 1.
INDIVIDUALS |
|
1,359 |
1,757,937 |
10.90 |
|
| 2.
INVESTMENT COMPANIES |
|
7 |
209,435 |
1.30 |
|
| 3.
INSURANCE COMPANIES |
|
3 |
925,486 |
5.75 |
|
| 4.
JOINT STOCK COMPANIES |
|
5 |
57,088 |
0.35 |
|
| 5.
FINANCIAL INSTITUTIONS |
|
3 |
1,285,121 |
7.98 |
|
| 6.
MODARABAS |
|
6 |
16,500 |
0.10 |
|
| 7.
ORIX CORPORATION AND ITS NOMINEES |
4 |
9,195,647 |
57.08 |
|
| 8.
INTERNATIONAL FINANCE CORPORATION |
1 |
905,609 |
5.62 |
|
| 9.
OTHERS - FOREIGN FUNDS |
|
12 |
1,758,130 |
10.92 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
TOTALS |
|
1,400 |
16,110,953 |
100.00 |
|
| ========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
| 0RIX
GROUP DIRECTORY |
|
|
| JAPANESE
REGION |
|
| Domestic
Operations |
|
| Leasing
and Installment Loans |
|
|
| ORIX
Corporation |
Principal Business |
|
|
| Tokyo
Headquarters |
Providing direct
financing leases and operating leases |
|
Tokyo Headquarters |
|
|
for CA equipment,
computers, industrial equip- |
|
World Trade Center
Building, |
|
|
merit, plants, aircraft,
and other equipment and |
|
2-4-1, Hamamatsu-cho, |
|
|
installment loans. |
|
Minato-ku, Tokyo 105,
Japan |
|
|
Tel: 03-3435-6641 |
|
|
Fax: 03-3435-6642 |
|
|
Telex: 24642 |
|
|
|
Managing Director: |
|
|
Katsuo Kawanaka |
|
|
Director.' Masahiro
Matoho |
|
|
| Osaka
Headquarters |
|
Osaka Headquarters |
|
|
Nihon Kasai-Osaka
Building, |
|
|
1-11 - 4, Edobori,
Nishi-ku, |
|
|
Osaka 550, Japan |
|
|
Tel: 06-449-5001 |
|
|
Fax: 06-441-7160 |
|
|
|
Managing Director: |
|
|
Teruo Isogai |
|
|
Director: Hiroshi
Nakajima |
|
|
|
|
|
|
Established |
ORIX |
|
|
(equity |
Group's |
|
|
interest |
Ownership |
|
|
Principal Business |
|
acquired) |
(%) |
|
|
| ORIX
Auto Leasing |
Auto lessor in Japan
active |
|
1973 |
100 |
TOC Osaki Building,
1-6-1,0saki, |
|
| Corporation |
|
mainly in fleet leasing
but with |
|
|
Shinagawa-ku, Tokyo 141 |
|
|
|
growing business in auto
leases |
|
|
Tel: 03-3495-4971 |
|
|
|
for individuals. |
|
|
Fax: 03-3495-4960 |
|
|
|
|
|
|
|
|
President: Hiroaki
Nishina |
|
|
|
|
Deputy President: |
|
|
|
|
Akira Fukushirna |
|
|
|
|
|
| ORIX Alpha |
|
Leasing and financing
furnish- |
|
1972 |
100 |
Karuko-zaka MN Building, |
|
| Corporation |
|
ings and equipment for
retailers, |
|
2-1, Ageba-cho,
Shinjuku-ku, |
|
|
|
hotels, restaurants, and
other |
|
|
Tokyo 162 |
|
|
|
users; providing
mediatory |
|
|
Tel: 03-5228-5300 |
|
|
and consulting services. |
|
|
Fax: 03-5228-5310 |
|
|
|
|
|
|
Chairman: Masaru Yutaka |
|
|
|
|
President: Kunitoshi
Masuda |
|
|
|
|
|
| Y.O.
Machinery |
Joint venture with a
specialized |
|
1984 |
81 |
World Trade Center
Building, |
|
| Leasing
Co., Ltd. |
machinery trading
company; |
|
|
2-4-1, Hamamatsu-cho, |
|
|
|
handling leases and
installment |
|
|
Minato-ku, Tokyo 105 |
|
|
|
sales for machine tools
and |
|
|
Tel: 03-3435-6990 |
|
|
|
other equipment. |
|
|
Fax: 03-3435-6415 |
|
|
|
|
|
|
|
|
President: |
|
|
|
|
Katsuo Kawanaka |
|
|
|
|
|
| ORIX
Aircraft |
Aircraft leasing. |
|
1986 |
100 |
World Trade Center
Building, |
|
| Corporation |
|
2-4-1, Hamamatsu-cho, |
|
|
|
Minato-ku, Tokyo 105 |
|
|
Tel: 03-3438-2831 |
|
|
Fax: 03-3435-6448 |
|
|
|
President: Takashi
Koizumi |
|
|
|
|
|
| Real
Estate Related Business |
|
|
| ORIX
Corporation |
Principal Business |
|
|
|
| Real Estate |
|
Extending housing loans,
project finance, |
|
Real Estate Business |
|
| Business |
|
brokering real estate and
other real estate |
|
Headquarters |
|
| Headquarters |
|
related services, such as
dormitory leasing. |
|
Shinjuku Mitsui Building
No. 2, |
|
|
3-2-11, Nishi-Shinjuku, |
|
|
Shinjuku-ku, Tokyo 160,
Japan |
|
|
Tel: 03-3345-2500 |
|
|
Fax: 03-3345-2588 |
|
|
|
Senior Managing
Director.' |
|
|
Etsuo Hashimoto |
|
|
Director.' Yoshiyasu
Shiota |
|
|
|
Established |
ORIX |
|
|
(equity |
Group's |
|
|
interest |
Ownership |
|
|
Principal Business |
|
acquired) |
(%) |
|
|
| ORIX Estate |
|
Managing real estate and |
|
(1986) |
99 |
1-2-30, Benten, |
|
| Corporation |
|
leisure facilities. |
|
|
Minato-ku, Osaka 552 |
|
|
|
Tel: 06-571-2481 |
|
|
|
Fax: 06-572-5741 |
|
|
|
|
|
|
Chairman: Yasushi Iwai |
|
|
|
|
President.' Yutaka
Shiraishi |
|
| Rentals |
|
|
|
|
|
|
|
| ORIX Rentec |
|
Rental supplier of high- |
|
1976 |
100 |
5-7-21, Kita-Shinagawa, |
|
| Corporation |
|
precision measuring |
|
|
Shinagawa-ku, Tokyo 141 |
|
|
equipment in Japan. |
|
|
Tel: 03-3473-7561 |
|
|
|
|
Fax: 03-3473-7549 |
|
|
|
|
Chairman: Sachio Hata |
|
|
|
President: Shunji Sasaki |
|
|
|
|
| ORIX
Rent-A-Car |
Rent-a-car business. |
|
1985 |
85 |
Nikko-Gotanda Building, |
|
| Corporation |
|
|
2-29-5, Nishi-Gotanda, |
|
|
|
Shinagawa-ku, Tokyo 141 |
|
|
|
Tel: 03-3779-2201 |
|
|
|
Fax: 03-3779-3910 |
|
|
|
|
|
|
Chairman: ToShio
Saruwatari |
|
|
|
President: Kazuo Yokoyama |
|
|
|
|
| Consumer
Finance |
|
|
|
|
|
|
| ORIX Credit |
|
Consumer credit company |
|
1979 |
100 |
H! Gotanda Building, |
|
| Corporation |
|
engaged in business
centered |
|
|
2-11-17, Nishi-Gotanda, |
|
|
on shopping credit and |
|
|
Shinagawa-ku, Tokyo 141 |
|
|
consumer finance. |
|
|
Tel: 03-5487-7111 |
|
|
|
Fax: 03-3490-1582 |
|
|
|
|
|
|
President: Hiroshi
Maruyama |
|
|
|
|
| ORIX Club |
|
Consumer loans. |
|
1990 |
100 |
1-3-8, Nishi-Gotanda, |
|
| Corporation |
|
|
Shinagawa-ku, Tokyo 141 |
|
|
|
Tel: 03-5487-7500 |
|
|
|
Fax: 03-3490-4025 |
|
|
|
|
|
|
President: |
|
|
|
Hiroshi Maruyama |
|
|
|
|
| ORIX Club |
|
Consumer loans. |
|
1994 |
100 |
2-4-27, Doujima, Kita-ku, |
|
| Corporation |
|
Osaka 530 |
|
|
Tel: 06-454-1188 |
|
|
Fax: 06-454-1189 |
|
|
|
President: |
|
|
|
Hiroshi Maruyama |
|
|
|
Established |
ORIX |
|
|
(equity |
Group's |
|
|
interest |
Ownership |
|
|
Principal Business |
|
acquired) |
(%) |
|
|
| Computer
Software |
|
|
| ORIX
Computer |
Software engineering
house. |
|
1984 |
100 |
Osaki CN Building, |
|
| Systems
Corporation |
|
|
5-10-10, Osaki, |
|
|
|
Shinagawa-ku, Tokyo 141 |
|
|
|
Tel: 03-5434-7800 |
|
|
|
Fax: 03-5434-1345 |
|
|
|
|
|
|
President.' |
|
|
|
Shogo Kajinishi |
|
|
|
Deputy President.' |
|
|
|
Yuzo Sotani |
|
|
|
|
| Securities
Brokerage |
|
|
|
|
|
|
| ORIX
Securities |
Securities house. |
|
(1986) |
100 |
2-26-9, Hachobori, |
|
| Co., Ltd. |
|
|
Chuo-ku, Tokyo 104 |
|
|
|
Tel: 03-3297-5411 |
|
|
|
Fax: 03-3555-3010 |
|
|
|
Telex: 0522680 |
|
|
|
President.' Koichiro Muta |
|
|
|
|
| Venture
Capital |
|
|
|
|
|
|
|
|
|
|
|
| ORIX Capital |
|
Management of venture
capital |
|
1983 |
95 |
TOC Osaki Building, |
|
| Corporation |
|
investment funds. |
|
|
1-6-1, Osaki, |
|
|
|
|
Shinagawa-ku, Tokyo 141 |
|
|
|
Tel: 03-5434-1361 |
|
|
|
Fax: 03-5434-1360 |
|
|
|
|
|
|
Pre9ident: |
|
|
|
Kazuhiko Naganuma |
|
|
|
|
| Marine
Transport |
|
|
|
|
|
|
| ORIX
Maritime |
Shipping and
ship-management |
|
1977 |
100 |
1-31-8, Kakinokizaka, |
|
| Corporation |
|
services. |
|
|
Meguro-ku, Tokyo 152 |
|
|
|
Tel: 03-5701-3180 |
|
|
|
Fax: 03-5701-3161 |
|
|
|
Telex: 2427492 ORIX MT J |
|
|
|
|
|
|
President: Takashi
Koizumi |
|
|
|
Managing Director.' |
|
|
|
Masao Dohi |
|
|
|
|
| Life
Insurance |
|
|
|
|
|
|
| ORIX Life Insurance |
Life insurance. |
|
1991 |
100 |
Shinjuku Chuo Building, |
|
| Corporation |
|
5-17-5, Shinjuku, |
|
|
Shinjuku-ku, Tokyo 160 |
|
|
Tel: 03-5272-2700 |
|
|
Fax: 03-5272-2720 |
|
|
|
President: Shinobu
Shiraishi |
|
|
|
|
|
|
Established |
ORIX |
|
|
(equity |
Group's |
|
|
interest |
Ownership |
|
|
Principal Business |
|
acquired) |
(%) |
|
| Insurance |
|
|
|
| ORIX
Insurance |
Agency services for
casualty and |
1976 |
100 |
World Trade Center
Building, |
|
| Services
Corporation |
life insurance. |
|
|
2-4-1, Hamamatsu-cho, |
|
|
|
Minato-ku, Tokyo 105 |
|
|
|
Tel: 03-3435-6618 |
|
|
|
Fax: 03-3435-6686 |
|
|
|
|
|
|
President: Koichi Maki |
|
|
|
|
| Interior
Products |
|
|
|
|
|
|
| ORIX
Interior |
Listed manufacturer of
carpet |
|
(1987) |
58 |
1-2-30-201 ,Benten, |
|
| Corporation |
|
and other interior
products; |
|
|
Minato-ku, Osaka 552 |
|
|
extending real estate
related |
|
|
Tel: 06-577-0651 |
|
|
finance. |
|
|
Fax: 06-577-8165 |
|
|
|
|
|
|
President: Yutaka
Shiraishi |
|
|
|
|
| Entertainment |
|
|
|
|
|
|
| ORIX Baseball Club |
Professional baseball
team. |
|
(1988) |
100 |
No.6, Kaigandori, |
|
|
|
Chuo-ku, Kobe 650 |
|
|
|
Tel: 078-333-0044 |
|
|
|
Fax: 078-333-0048 |
|
|
|
|
|
|
President: Yasushi Iwai |
|
|
|
|
|
|
|
|
|
| Futures
and Options |
|
|
|
|
|
|
|
| ORIX COMMODITIES |
Joint venture with
Commodities |
|
1990 |
100 |
Fujiwara BuiMing, |
|
| Corporation |
|
Corporation engaged in
futures |
|
1-10-11, Ebisu-Nishi, |
|
|
and options trading. |
|
Shibuya-ku, Tokyo 150 |
|
