| Atlas Lease Limited |
|
|
|
|
|
|
|
|
|
|
|
| Annual
Report 1998 |
|
|
|
| Mission
Statement |
|
|
| Lead
the Industry by providing quality service |
|
| to
customers, ensure continuous growth in |
|
| the
shareholders' value and contribute towards |
|
| the
economic development of the country through |
|
| a
youthful goal oriented, well rewarded team. |
|
|
|
| TABLE
OF CONTENTS |
|
|
| Notice
of Meeting |
|
| Corporate Data |
|
| Directors' Report |
|
| Chairman's
Review |
|
| Pattern of Shareholding |
|
| Financial Highlights |
|
| Graphic
Presentation |
|
| Auditors'
Report |
|
| Balance Sheet |
|
| Profit and Loss Account |
|
| Cash
Flow Statement |
|
| Notes
to the Accounts |
|
| Atlas
Group Companies |
|
|
|
|
| NOTICE
OF MEETING |
|
|
|
| Notice
is hereby given that the Eleventh Annual General Meeting of the members of
ATLAS LEASE |
|
| LIMITED
will be held on Monday the December 14, 1998 at 03.00 p.m. at Registered
Office of the |
|
| Company
at Federation House, Shame Firdousi, Clifton, Karachi to transact the
following business: |
|
|
| ORDINARY
BUSINESS: |
|
| 1.
To confirm the Minutes of the Tenth Annual General Meeting held on November
20, 1997 |
|
| and
Extra Ordinary General Meeting held on December 24, 1997. |
|
|
| 2.
To receive, consider and adopt the Audited Accounts of the Company for the
year ended |
|
| June
30, 1998 together with the Directors' and Auditors' Report thereon. |
|
|
| 3.
To approve the payment of Cash Dividend to the shareholders at the rate of
Rs. 1.50 per |
|
| share
of Rs. 10/- each for the year ended June 30, 1998 as recommended by the Board
of |
|
| Directors. |
|
|
| 4.
To appoint Auditors and fix their remuneration for the year ending June 30,
1999. The present |
|
| Auditors
M/s. Ford, Rhodes, Robson, Morrow, Chartered Accountants, retire and being
eligible, |
|
| offer
themselves for reappointment. |
|
|
| SPECIAL
BUSINESS: |
|
| 5.
To approve the remuneration of the Chief Executive of the Company as
recommended by |
|
| the Board. |
|
|
|
| OTHER
BUSINESS: |
|
| 6.
To transact any other business as may be placed before the meeting with the
permission of |
|
| the Chair. |
|
|
|
| A
statement under section 160 (1) (b) of the Companies Ordinance, 1984
pertaining to the Special |
|
| Business
referred to above is annexed to this Notice of Meeting. |
|
|
|
|
|
By Order of the Board |
|
|
|
|
MUHAMMAD RAFIQUE UMBER |
|
| Karachi:
October 31, 1998 |
|
|
Company Secretary |
|
|
|
| NOTES: |
|
| i)
The Register of Members of the Company will remain closed from 07/12/1998 to |
|
| 14/12/1998
(both days inclusive). Transfers received in order at the Registered Office
of the |
|
| Company
at the close of business on December 06, 1998 will be treated in time for the |
|
| purpose
of entitlement of dividend. |
|
|
| ii)
A member entitled to attend and vote at this meeting may appoint another
member as his / |
|
| her
proxy to attend and vote on his / her behalf. 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 authority must be received at the Registered Office of the Company
duly stamped, |
|
| signed
and witnessed not later than 48 hours before the meeting. |
|
|
| iii)
Members are requested to notify any change in their addresses immediately. |
|
|
| STATEMENT
UNDER SECTION 160 (1) (b) OF THE COMPANIES ORDINANCE,1984 |
|
| This
statement sets out the material facts concerning the Special Business to be
transacted at the |
|
| Eleventh
Annual General Meeting of Atlas Lease Limited to be held on December 14,
1998. |
|
|
| Approval
of the shareholders will be sought for the remuneration payable to the Chief
Executive of |
|
| the
Company in accordance with the terms and conditions of his service, as
recommended by the |
|
| Board
of Directors of the Company. For this purpose, it is intended to propose the
following Resolution |
|
| to
be passed as an Ordinary Resolution. |
|
|
| RESOLVED |
|
| "that
the Company hereby authorises the holding of office of profit and payment as
remuneration |
|
| (inclusive
of allowances) to the Chief Executive, not exceeding in the aggregate Rs. 2.5
million per |
|
| annum
for the year ending June 30, 1999 in addition to perquisites and other
benefits to which he |
|
| is
entitled as per Company policy". |
|
|
| Mr.
Khaleeq-ur-Rahman Khan, Chief Executive of the Company is interested in the
business to the |
|
| extent
of his remuneration. |
|
|
|
| CORPORATE
DATA |
|
|
| BOARD
OF DIRECTORS: |
|
|
| CHAIRMAN |
|
| Mr.
Yusuf H. Shirazi |
|
|
| CHIEF
EXECUTIVE |
|
| Mr.
Khaleeq-ur-Rahman Khan |
|
|
| MEMBERS |
|
| Mr.
Masanori Okuda |
|
| Mr.
Muhammad Shafi |
|
| Mr.
Razi-ur-Rahman Khan |
|
| Mr.
Sanaullah Qureshi |
|
| Mr.
Saquib H. Shirazi |
|
| Mr.
Talat Mahmood |
|
| Mr.
Toshiki Miyazaki |
|
|
| COMPANY
SECRETARY: |
|
| Mr.
Muhammad Rafique Umer |
|
|
| GROUP
EXECUTIVE COMMITTEE: |
|
|
| CHAIRMAN |
|
| Mr.
Yusuf H. Shirazi |
|
|
| MEMBERS |
|
| Mr.
Jawaid Iqbal Ahmed |
|
| Mr.
Frahim Ali Khan |
|
| Mr.
Iftikhar H. Shirazi |
|
| Mr.
Aamir H. Shirazi |
|
| Mr.
Saquib H. Shirazi |
|
|
| SECRETARY |
|
| Mr.
Amjad Hussain |
|
|
| GROUP
PERSONNEL COMMITTEE: |
|
|
| CHAIRMAN |
|
| Mr.
Yusuf H. Shirazi |
|
|
| GROUP
AUDIT COMMITTEE: |
|
|
| CHAIRMAN |
|
| Mr.
Sanaullah Qureshi |
|
|
| AUDITORS: |
|
| Ford,
Rhodes, Robson, Morrow |
|
| Chartered
Accountants |
|
|
| LEGAL
ADVISORS: |
|
| Mohsin
Tayebaly & Co. |
|
|
| BANKERS
& LENDING INSTITUTIONS: |
|
|
| BANKERS: |
|
| ABN
AMRO Bank |
|
| Allied
Bank of Pakistan Limited |
|
| ANZ
Grindlays Bank plc |
|
| Askari
Commercial Bank Limited |
|
| Faysal
Bank Limited |
|
| Habib
Bank AG Zurich |
|
| Habib
Bank Limited |
|
| Standard
Chartered Bank |
|
| The
Bank of Tokyo-Mitsubishi, Limited |
|
| The
Hongkong and Shanghai Banking Corporation |
|
|
| LENDING
INSTITUTIONS: |
|
| AI-Faysal
Investment Bank Ltd. |
|
| Asian
Development Bank (ADB) |
|
| Commonwealth
Development Corporation (CDC) |
|
| First
International investment Bank Ltd. |
|
| German
investment and Development Company (DEG) |
|
| International
Finance Corporation (IFC) |
|
| National
Discounting Services Ltd. |
|
| Netherlands
Development Finance Company (FMO) |
|
| Pakistan
Kuwait Investment Company (Pvt.) Ltd. |
|
|
| REGISTERED
OFFICE & HEAD OFFICE: |
|
| Federation
House, Sharae Firdousi, |
|
| Clifton,
Karachi - 75600 |
|
| Tel:
(92-21) 5866817 - 20, 5866919 - 20 Fax: 5870543 |
|
| E-mail:
all@atlasgrouppk.com |
|
|
|
|
| BRANCH
OFFICES: |
|
|
|
|
| LAHORE
OFFICE: |
|
|
|
| Ist
Floor, Emirates Bank Building, |
|
| 14-
Egerton Road, Lahore |
|
| Tel:
(92-42) 6366170 - 74,6364941 Fax: 6365058 |
|
|
| ISLAMABAD OFFICE: |
|
| 2nd Floor, Saudi Pak Tower, |
|
| Blue
Area, Islamabad |
|
| Tel:
(92-51) 824906, 824909 Fax: 821377 |
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
Directors have pleasure in submitting Annual Report of the Company together
with the |
|
| Audited
Accounts and the Auditors' Report thereon for the year ended June 30, 1998. |
|
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
|
Rupees |
Rupees |
|
| Financial
Results: |
|
|
|
| Net
profit for the year after charging all |
|
|
|
| expenses
and doubtful debts |
|
19,712,909 |
17,722,779 |
|
|
|
|
| Previous
profit brought forward |
|
4,213,954 |
35,731 |
|
|
|
--------------- |
--------------- |
|
| Profit
available for appropriation |
|
23,926,863 |
17,758,510 |
|
| Appropriations: |
|
|
|
| Transfer
to statutory reserve |
|
3,942,582 |
3,544,556 |
|
| Transfer
to general reserve |
|
4,000,000 |
10,000,000 |
|
| Cash dividend |
|
15,778,590 |
-- |
|
|
|
--------------- |
--------------- |
|
|
|
23,721,172 |
13,544,556 |
|
|
|
--------------- |
--------------- |
|
| Unappropriated
profit carried forward |
|
205,691 |
4,213,954 |
|
|
|
========== |
========== |
|
|
| Dividend: |
|
| The
Directors are pleased to recommend a cash dividend of 15%. |
|
|
| Chairman's
Review: |
|
| The
accompanying Chairman's Review deals with the performance of the Company
during the |
|
| year
and future outlook. The Directors of the Company endorse the contents of the
review. |
|
|
| Pattern
of Shareholding: |
|
| The
pattern of shareholding of the Company is annexed. |
|
|
| Auditors: |
|
| The
present Auditors Messrs Ford, Rhodes, Robson, Morrow, Chartered Accountants,
retire and |
|
| being
eligible, offer themselves for reappointment. |
|
|
|
|
for and on behalf of |
|
|
|
BOARD OF DIRECTORS |
|
|
| SANAULLAH
QURESHI |
KHALEEQ-UR-RAHMAN KHAN |
YUSUF H. SHIRAZI |
|
| Director |
|
Chief Executive |
|
Chairman |
|
|
| Karachi:
October 31, 1998 |
|
|
|
| CHAIRMAN'S
REVIEW |
|
|
|
|
|
| I
have the pleasure to present the 11th Annual |
|
|
|
| Report
of your Company for the year ended |
|
|
|
| June30, 1998. |
|
|
|
|
|
|
|
|
|
| THE
ECONOMY |
|
|
|
| The
year under review was full of challenges |
|
|
|
| on
both the domestic and international fronts. |
|
|
|
| On
the domestic front, the country faced |
|
|
|
| constitutional
issues of extraordinary nature |
|
|
|
| which
affected the flow of normal economic |
|
|
|
| activity.
On the international front, foreign |
|
|
|
| investment
was affected - partly due to the |
|
|
|
| internal
situation and mainly due to the |
|
|
|
| economic
crisis affecting Latin American, |
|
|
|
| Russian
and the South East Asian countries' |
|
|
|
| economies
resulting into the shying away of |
|
|
|
| investment
from the international capital |
|
|
|
| markets. |
|
|
|
|
|
|
|
|
|
| On
the other hand, Pakistan's economic |
|
|
|
| performance
over the last few years has been |
|
|
|
| marked
by a deceleration in economic activity, |
|
|
|
| deterioration
in budgetary and current account |
|
|
|
| deficits
and inflation. In order to reinvigorate |
|
|
|
| economic
growth the Government took some |
|
|
|
| measures.
It introduced economic reforms |
|
| based
on both supply and demand side |
|
| economics.
To improve revenue collection, |
|
| general
sales tax regime was re-launched at |
|
| the
retail level which partially increased the |
|
| 'Tax
Net'. The effect of these policy measures |
|
| will
however take time to yield the desired |
|
| results. |
|
|
|
| Towards
the year-end, Pakistan opted for |
|
| nuclear
detonation on May 28, 1998 following |
|
| India's
nuclear tests on May 11, 1998. It led to |
|
| economic
sanctions by the developed countries. |
|
| The
international loan giving agencies put their |
|
| shutters
down. Consequently, foreign currency |
|
| accounts
were frozen, rupee was devalued by |
|
| 4.4%,
making it 14.1% for the full fiscal year |
|
| and
a two-tier foreign exchange regime was |
|
| introduced. |
|
|
|
|
|
| Despite
the worsening situation, the economic |
|
| indicators
for the year were quite satisfactory. |
|
| The
GDP grew by 5.4% as against 1.3% last |
|
| year.
Agricultural sector grew by 5.9% and the |
|
| manufacturing
sector by 7.0%. The large- |
|
| scale
manufacturing sector registered |
|
| a
growth of 6.2%. The transport and |
|
| communication
sector recorded a growth of |
|
| 8.8%.
Fixed investment increased by 6.5% and |
|
| national
savings increased to 15.0% of GNP |
|
| from
the 11.3% of last year. |
|
|
|
|
| MONETARY
DEVELOPMENTS |
|
| The
year under review witnessed important |
|
| changes
in the monetary system too. The State |
|
| Bank
of Pakistan reduced statutory liquidity |
|
| requirement
ratio and cash reserves and re- |
|
| designed
the export refinance scheme which |
|
| improved
liquidity in the money market. The |
|
| demand
however remained low early during the |
|
| year.
The surplus liquidity went into government |
|
| securities.
The excess liquidity brought down |
|
| Treasury
Bill rates to almost 12.0 percent. |
|
|
|
|
| The
banking system witnessed important |
|
| structural
reforms. The nationalized commercial |
|
| banks
(NCBs) underwent a downsizing exercise |
|
| and
their non-performing loans were prioritized |
|
| for
recovery. The objective was to restructure |
|
| these
banks before privatization. The State Bank |
|
|
| of
Pakistan tightened the lending criteria. The |
|
|
| defaulters
could no longer get bank credit. The |
|
|
| SBP
introduced a more comprehensive set of |
|
|
| disclosure
laws. A number of regulatory |
|
|
| measures
were taken by the SBP to improve |
|
|
| its
regulation and supervision mechanism to |
|
|
| ensure
availability of adequate credit in the |
|
|
| economy. |
|
|
|
|
|
|
| ATLAS
GROUP PERFORMANCE |
|
|
|
| The
Atlas Group of which your company is a |
|
|
|
| constituent
member, jealously guards its brand |
|
|
|
| equity
which represents good management |
|
|
|
| practices,
ethical standards and quality of goods |
|
|
|
| and
services provided to its customers. The |
|
|
|
| Group
enjoys an excellent image in |
|
|
|
| government,
business and social circles, both |
|
|
|
| nationally
and internationally. |
|
|
|
|
|
|
|
|
|
| The
Atlas Group is diversified and has |
|
|
|
| operations
in engineering, financial services, |
|
|
|
| trading
office equipment and information |
|
|
|
| technology.
It consists of seven public limited |
|
|
|
| companies
quoted on the stock exchanges in |
|
|
|
| Pakistan
and eight private limited companies. |
|
|
|
| Atlas
shareholders' equity has grown to about |
|
|
|
| Rs.
2.5 billion over the years; assets have |
|
|
|
| increased
to over Rs. 8 billion, and sales |
|
|
|
| revenue
crossed the Rs. 8 billion mark. The |
|
|
|
| Group
paid taxes of Rs. 2.2 billion being 27.5% |
|
|
|
| of
the total turnover of the Group. More than |
|
|
|
| 50%
of employees numbering 2,700 pay taxes |
|
|
|
| on
their income and wealth. |
|
|
|
|
|
|
| The
total paid up capital of the seven listed |
|
|
|
| companies
stood at Rs. 944 million and free |
|
|
|
| reserves
and surplus at Rs. 1.11 billion. The total |
|
|
|
| equity
of listed companies stood at Rs. 2.05 |
|
|
|
| billion
as at June 30, 1998. The net worth value |
|
|
|
| of
a Rs. 10 share works out at Rs. 21.77. Out of |
|
|
|
| these
seven companies, two companies have |
|
|
|
| been
rated 'A+' and three 'A' by the credit rating |
|
|
|
| and
other evaluating agencies. |
|
|
|
|
|
|
|
|
| The
seven listed companies, set up at different |
|
|
|
| times
- the earliest in 1963 with a paid up capital |
|
|
|
| of
Rs. 2.0 million and the latest in 1993 with a |
|
|
|
| paid
up capital of Rs. 400.00 million- have paid |
|
|
|
| cash
dividend of Rs. 287 million and bonus of |
|
|
|
| Rs.
208 million (market value Rs. 435 million). |
|
| Your
Company was set up in 1989 with a paid |
|
| up
capital of Rs. 20.00 million which has grown |
|
| to
Rs. 105.19 million. The total equity at Rs. |
|
| 217.70
million includes reserves and the un- |
|
| appropriated
profit of Rs. 112.51 million. During |
|
| this
period the Company issued bonus shares |
|
| of
Rs. 16.55 million (market value Rs. 48.82 |
|
| million
at Rs. 29.50 per share) and paid cash |
|
| dividend
of Rs. 54.76 million. |
|
|
|
|
| HUMAN
RESOURCES |
|
| Reliance
on Human Resource has been the hall |
|
| mark
of Atlas Group since its inception. |
|
| Investment
on Human Resource Development |
|
| is
considered a prudent investment for all times |
|
| to
come. Education, training and grooming of |
|
| employees
for higher positions is a normal |
|
| feature
with the Group. |
|
|
|
|
| To
cope up with the growing needs of the Group, |
|
| a
permanent cell has been established at the |
|
| Corporate
Office for Human Resource |
|
| Development.
A full time Director assists the |
|
| Group
Personnel Committee which is headed |
|
| by
the Group President and Chairman. The |
|
| Committee
actively works for improving staff |
|
| service
rules, staff compensation, and career |
|
| planning
to make them more competitive and |
|
| attractive
for the employees. Compensation |
|
| based
on Job evaluation and performance |
|
| appraisal
is now all the more a determining |
|
| factor
for the performance bonus and the |
|
| employees
motivation. |
|
|
|
|
| THE
LEASING INDUSTRY |
|
| The
leasing industry, which started in Pakistan |
|
| in
1984 has had a growth rate of approximately |
|
| 35%
p.a. over the last five years. It has |
|
| contributed
to the extent of approx. 8% of private |
|
| fixed
capital formation in the country. At present, |
|
| there
are 32 leasing companies with a total |
|
| equity
of Rs. 8.0 billion. Total outstanding lease |
|
| portfolio
amounts to Rs. 36 billion. Market |
|
| penetration
has been low mainly due to non- |
|
| availability
Of long-term funds, high cost of |
|
| money
and the willful default culture. As |
|
| suggested
in earlier reviews, the risk of default |
|
| can
be reduced if post-dated cheques for the |
|
| entire
lease period from the lessees are made |
|
| mandatory
and the law of bouncing of cheques |
|
|
|
| which
already exists is implemented in letter and |
|
|
|
| spirit. |
|
|
|
|
|
|
|
|
|
| On
the other hand, it is encouraging that the |
|
|
|
| Government
has resolved a number of pending |
|
|
|
| issues
favorably. These include treatment of |
|
|
|
| residual
value of leased assets as purchase |
|
|
|
| price
for lessees, avoiding double tax deduction |
|
|
|
| on
sale and lease back transactions and |
|
|
|
| withdrawal
of Capital Value Tax on used |
|
|
|
| vehicles.
In a package for the engineering |
|
|
|
| sector,
the Government had announced |
|
|
|
| increase
in the upper limit of the value of cars |
|
|
|
| for
claiming depreciation allowance from Rs. |
|
|
|
| 0.6m
to Rs. 1.0m which has not yet been |
|
|
|
| implemented:
Sooner the implementation, the |
|
|
|
| better! |
|
|
|
|
|
|
|
| THE
COMPANY'S RESULTS |
|
|
|
| During
the year under review Lease |
|
|
|
| Disbursement
of Rs. 544.41m was made, which |
|
|
|
| was
92.74% of the last year. Net Investment in |
|
|
|
| Lease
Finance as on June 30, 1998 amounted |
|
|
|
| to
Rs. 1,874.10m. The lease portfolio during |
|
|
|
| the
year comprised of 52.60% in Machinery, |
|
|
|
| 37.78%
in Vehicles and 9.62% in Office |
|
|
|
| Equipment.
The sectoral exposure as on June |
|
|
|
| 30,
1998, was fairly diversified and comprised |
|
|
|
| of
14.63% in Textile followed by 13.94% in |
|
|
|
| Chemical
& Fertilizer, 9.27% in Services, 9.21% |
|
|
|
| in
Electrical & Electronic Goods, 8.53% in |
|
|
|
| Financial
Institutions, 8.28% in Steel & |
|
|
|
| Engineering,
6.54% in Cement and 6.50% in |
|
|
|
| Food,
Tobacco & Beverages. |
|
|
|
|
|
|
|
|
| Gross
Revenue during the year amounted to |
|
|
|
| Rs.
339.35m, up 4.51% from Rs. 324.71m of |
|
|
|
| the
last year. Financial charges amounted to |
|
|
|
| Rs.
263.15m, slightly higher than Rs. 262.34m |
|
|
|
| of
the last year. Administrative Expenses rose |
|
|
|
| by
14.33% to Rs. 34.55m from Rs. 30.22m. |
|
|
|
| Provision
for doubtful debts amounted to |
|
|
|
| Rs.
5.18m compared to Rs. 3.79m last year. |
|
|
|
| The
profit before tax for the year amounted to |
|
|
|
| Rs.
34.36m compared to Rs. 24.63m last year. |
|
|
|
|
|
|
|
|
| DEFERRED
TAX |
|
|
|
| The
revised International Accounting Standard |
|
|
|
| which
is effective from January 2001, requires |
|
|
|
| provision
to be made for deferred taxation, |
|
|
|
| irrespective
of its being reversible in foreseeable |
|
| future
or not. Although in your Company's case |
|
| the
deferred taxation liability is not likely to |
|
| reverse
in the foreseeable future, yet the Board |
|
| of
Directors has decided to start making a |
|
| provision.
A sum of Rs. 5.5 million has been |
|
| provided
in the year under review. |
|
|
|
|
| FUNDING |
|
|
| In
the absence of adequate long-term funds |
|
| through
local and international avenues the |
|
| company
managed its resource mobilization |
|
| through
COI portfolio and short-term funds from |
|
| the
local money market. In addition to the |
|
| resource
mobilization through COI and money |
|
| market
operations, the company raised medium |
|
| term
finance facilities of Rs. 73.10 million locally. |
|
|
|
|
| The
management however believes that local |
|
| funds
should replace the foreign borrowings. |
|
| During
the year under review your Company |
|
| initiated
to raise funds through TFC to the tune |
|
| of
Rs. 200.0m. The instrument has been rated |
|
| "A"
by Pakistan Credit Rating Agency. |
|
|
|
|
| CHANGE
IN THE BOARD OF DIRECTORS |
|
| On
completion of 3 years of the term of the |
|
| Board
of Directors, Extra-ordinary General |
|
| Meeting
of the shareholders was held on |
|
| December
24, 1997 in order to elect the new |
|
| Board
consisting of eight directors as fixed by |
|
| the
Board. The following directors were elected: |
|
|
|
|
| Mr.
Yusuf H. Shirazi (Chairman) |
|
| Mr.
Razi-ur-Rahman Khan |
|
| Mr.
Kenichi Nakagawa |
|
| Mr.
Sanaullah Qureshi |
|
| Mr.
Iftikhar H. Shirazi |
|
| Mr.
Abdul Waheed Mian |
|
| Mr.
Talat Mahmood |
|
| Mr.
Toshiki Miyazaki |
|
|
|
|
| Subsequently,
Mr. Kenichi Nakagawa, on |
|
| relinquishing
charge as the General Manager |
|
| of
the Bank of Tokyo-Mitsubishi Ltd; Karachi was |
|
| replaced
by Mr. Masanori Okuda on March 27, |
|
| 1998.
Mr. Iftikhar H. Shirazi was also replaced |
|
| by
Mr. Saquib H. Shirazi on April 24, 1998 and |
|
| Mr.
Abdul Waheed Mian was replaced by |
|
| Mr.
Muhammad Shafi on September 02, 1998. |
|
|
|
| May
I place on record appreciation for the |
|
|
|
| contribution
made by outgoing Directors and |
|
|
|
| welcome
incoming Directors on the Board and |
|
|
|
| look
forward to their support in managing the |
|
|
|
| affairs
of your Company. |
|
|
|
|
|
|
|
|
| THE
YEAR 2000 COMPUTER PROBLEM |
|
|
| (THE
MILLENNIUM BUG) |
|
|
|
| The
year 2000 problem has taken the world by |
|
|
|
| storm.
Being in the business of medium to long |
|
|
|
| term
nature, your company has already |
|
|
|
| witnessed
the problem some time back while |
|
|
|
| executing
lease contracts involving the year |
|
|
|
| beyond
1999. A survey was conducted of |
|
|
|
| possible
areas, business applications, |
|
|
|
| operating
systems, third party software |
|
|
|
| products,
machines and equipments, which |
|
|
|
| could
be affected by this problem. The problem |
|
|
|
| has
been taken care of and the system is now |
|
|
|
| "Year
2000" compliant. The external parties |
|
|
|
| like
lenders, customers, suppliers, utilities, etc. |
|
|
|
| are
also being contacted regarding their plans |
|
|
|
| to
ensure that they are also "Year 2000" |
|
|
|
| compliant. |
|
|
|
|
|
|
|
|
|
| FUTURE
OUTLOOK |
|
|
|
| Nuclear
test of May 28, 1998 has resulted in a |
|
|
|
| number
of events such as imposition of |
|
|
|
| economic
sanctions, freezing of foreign |
|
|
|
| currency
accounts and continuous depletion of |
|
|
|
| foreign
exchange reserves. This has added to |
|
|
|
| the
uncertainties prevailing due to low |
|
|
|
| economic
activity in the country. |
|
|
|
|
|
|
| Foreign
financial institutions which used to |
|
|
|
| provide
long-term funds have withdrawn. Local |
|
|
|
| institutions
like PICIC, IDBP and NDFC used |
|
|
|
| to
get funds from either State Bank of Pakistan |
|
|
|
| or
abroad. Now both the sources are choked if |
|
|
|
| not
exhausted. TFC is also an avenue to raise |
|
|
|
| funds,
which could develop the secondary |
|
|
|
| market,
but due to withdrawal of tax exemption |
|
|
|
| on
its profit, this measure too has lost its |
|
|
|
| attraction
· it will be costlier ! |
|
|
|
|
|
|
|
|
| The
default culture unfortunately is spreading |
|
| fast
in the country. The need of the time is that |
|
| industry
should exchange information about the |
|
| defaulters
and the government should impose |
|
| strict
regulations to punish defaulters. Leasing |
|
| companies
and financial institutions should |
|
| adopt
prudent and self-regulatory practices and |
|
| share
information about the defaulters. |
|
|
| Scarcity
of long term funds, poor rental |
|
| recoveries,
low economic activity and CLA's |
|
| requirement
of enhancement of paid-up capital |
|
| to
Rs. 200 million by November, 1999 may force |
|
| leasing
companies to go for acquisitions, |
|
| consolidation
and mergers which the CLA must |
|
| encourage. |
|
|
| I
foresee further challenges. However, the Atlas |
|
| Group
has a history of facing such challenges |
|
| and
come out admirably well. We rely on 3 S's, |
|
| i.e.
Smart, Speedy and Stable a company; and |
|
| 3
E's, i.e. Economy, Efficiency and |
|
| Effectiveness
in meeting the challenges. We |
|
| place
great emphasis on Human Resource |
|
| Development
through education, training and |
|
| development
of intellectual capital - the intellect |
|
| and
integrity. The morale of your company's |
|
| staff
is high and I am confident they have the |
|
| ability
to face unusual challenges and |
|
| successfully
come out of this situation. |
|
|
| (Great
are those who do things, impossible) |
|
|
| ACKNOWLEDGEMENT |
|
| I
would like to thank the members of the Board |
|
| of
Directors for their guidance and valuable |
|
| contribution.
Thanks are also due to the foreign |
|
| and
local lenders and all the clients for their |
|
| valuable
support. I also appreciate the SBP, |
|
| CLA
and CBR for their support. |
|
|
| I
also thank the Group Executive Committee, |
|
| the
Chief Executive and his team and all the |
|
| staff
members for their devotion and hard |
|
| work. |
|
|
| YUSUF
H. SHIRAZI |
|
|
|
|
|
|
|
|
|
| PATTERN
OF SHAREHOLDING |
|
| AS
AT JUNE 30, 1998 |
|
|
|
| Number of |
|
Shareholding |
|
Total |
|
| Shareholders |
From |
|
To |
Shares Held |
|
|
|
| 55 |
1 |
-- |
100 |
3,727 |
|
| 43 |
101 |
-- |
500 |
13,184 |
|
| 29 |
501 |
-- |
1,000 |
24,825 |
|
| 63 |
1,001 |
-- |
5,000 |
149,808 |
|
| 4 |
5,001 |
-- |
10,000 |
37,915 |
|
| 3 |
10,001 |
-- |
15,000 |
33,935 |
|
| 2 |
15,001 |
-- |
20,000 |
36,800 |
|
| 1 |
20,001 |
-- |
25,000 |
22,959 |
|
| 1 |
25,001 |
-- |
30,000 |
27,406 |
|
| 1 |
50,001 |
-- |
55,000 |
55,000 |
|
| 1 |
90,001 |
-- |
95,000 |
93,749 |
|
| 2 |
150,001 |
-- |
155,000 |
305,878 |
|
| 1 |
175,001 |
-- |
180,000 |
175,125 |
|
| 1 |
220,001 |
-- |
225,000 |
225,000 |
|
| 1 |
265,001 |
-- |
270,000 |
267,043 |
|
| 1 |
275,001 |
-- |
280,000 |
280,000 |
|
| 1 |
295,001 |
-- |
300,000 |
300,000 |
|
| 1 |
435,001 |
-- |
440,000 |
435,461 |
|
| 1 |
440,001 |
-- |
445,000 |
442,557 |
|
| 1 |
510,001 |
-- |
515,000 |
512,825 |
|
| 1 |
535,001 |
-- |
540,000 |
536,560 |
|
| 4 |
840,001 |
-- |
845,000 |
3,364,083 |
|
| 1 |
885,001 |
-- |
890,000 |
888,442 |
|
| 1 |
2,285,001 |
-- |
2,290,000 |
2,286,778 |
|
| ------------------------------------------------------------------------------------------------ |
|
| 220 |
|
TOTAL |
|
10,519,060 |
|
| ===================================================== |
|
|
| The
slabs representing NIL holding have been omitted. |
|
|
| Categories of |
|
Number of |
Number of |
Percentage of |
|
| Shareholders |
|
Shareholders |
Shares held |
Shares held |
|
|
|
|
|
| 1. Individuals |
|
199 |
5,327,795 |
50.65 |
|
| 2.
Investment Companies |
|
2 |
446,801 |
4.25 |
|
| 3.
Insurance Companies |
|
1 |
93,749 |
0.89 |
|
| 4.
Joint Stock Companies |
|
10 |
63,494 |
0.61 |
|
| 5.
Financial Institutions |
|
4 |
2,707,961 |
25.74 |
|
| 6.
Modaraba Companies |
|
1 |
11,701 |
0.11 |
|
| 7.
Foreign Companies |
|
3 |
1,867,559 |
17.75 |
|
|
|
--------------- |
--------------- |
--------------- |
|
| TOTAL |
|
220 |
10,519,060 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
|
|
| FINANCIAL
HIGHLIGHTS (1990 - 1998) |
|
|
|
|
|
(Rupees in million) |
|
|
|
|
1990 |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
|
| FINANCIAL
POSITION |
|
|
|
|
| Authorised
Capital |
50.00 |
100.00 |
100.00 |
100.00 |
100.00 |
100.00 |
200.00 |
200.00 |
200.00 |
|
| Paid-up Capital |
|
20.00 |
50.00 |
50.00 |
55.00 |
60.50 |
66.55 |
105.19 |
105.19 |
105.19 |
|
| Reserves
& Surplus |
1.23 |
9.82 |
19.20 |
26.90 |
39.58 |
59.08 |
90.86 |
108.58 |
112.51 |
|
| Shareholders'
Equity |
21.23 |
59.82 |
69.20 |
81.90 |
100.08 |
125.63 |
196.05 |
213.77 |
217.70 |
|
| Long
Term Loans- Foreign |
-- |
-- |
131.32 |
461.17 |
601.40 |
815.64 |
746.46 |
1,226.45 |
1,107.14 |
|
| Long
Term Loans - Local |
-- |
20.00 |
70.00 |
47.98 |
43.44 |
95.33 |
37.40 |
10.56 |
61.10 |
|
| Certificates
of Investment |
-- |
-- |
-- |
0.98 |
10.92 |
80.81 |
336.32 |
275.00 |
|
| Operating
Fixed Assets |
2.83 |
3.26 |
5.86 |
9.73 |
13.76 |
13.83 |
17.51 |
16.20 |
14.30 |
|
| Net
Investment in Lease |
106.73 |
305.01 |
551.89 |
740.02 |
973.03 |
1,269.81 |
1,659.58 |
1,849.13 |
1,874.10 |
|
| Total Assets |
|
114.44 |
310.65 |
569.06 |
810.08 |
1,018.56 |
1,402.64 |
1,804.66 |
2,206.17 |
2,163.76 |
|
|
|
|
|
|
| OPERATING
POSITION |
|
| Lease
Disbursements |
118.97 |
250.13 |
376.83 |
396.69 |
493.57 |
610.42 |
713.69 |
587.04 |
544.41 |
|
| Income
from leasing Operations |
9.85 |
36.81 |
82.03 |
130.93 |
159.52 |
204.14 |
273.81 |
317.42 |
317.76 |
|
| Total Expenses |
|
9.17 |
28.54 |
68.57 |
111.91 |
143.54 |
181.65 |
242.69 |
300.07 |
304.99 |
|
| Profit
Before Taxation |
1.85 |
8.59 |
14.39 |
20.78 |
26.34 |
33.38 |
43.18 |
24.63 |
34.36 |
|
| Profit
After Taxation |
1.85 |
8.59 |
14.39 |
18.20 |
24.23 |
32.21 |
41.73 |
17.72 |
19.71 |
|
| Earning
per share (in Rupees) |
0.93 |
1.72 |
2.88 |
3.31 |
4.00 |
4.84 |
3.97 |
1.68 |
1.87 |
|
| Return
on Equity (in percentage) |
8.73 |
14.35 |
20.79 |
22.22 |
24.21 |
25.64 |
21.29 |
8.29 |
9.05 |
|
| Book
value per share (in Rupees) |
10.61 |
11.96 |
13.84 |
14.89 |
16.54 |
18.88 |
18.64 |
20.32 |
20.70 |
|
|
|
| DISTRIBUTION |
|
| Cash Dividend |
|
-- |
-- |
10% |
10% |
10% |
10% |
15% |
-- |
15% |
|
| Stock Dividend |
|
-- |
-- |
10% |
10% |
10% |
-- |
-- |
-- |
-- |
|
| Total |
|
-- |
-- |
20% |
20% |
20% |
10% |
15% |
-- |
15% |
|
|
|
|
| RIGHT
ISSUE |
15% |
-- |
-- |
-- |
-- |
50% |
-- |
-- |
-- |
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of ATLAS LEASE LIMITED as at June 30,
1998 and |
|
| the
related profit and loss account and cash flow statement, together with the
notes forming part |
|
| thereof,
for the year then ended and we state that we have obtained all the
information and expla- |
|
| nations
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 agree- |
|
| ment-with
the books of account and are further in accordance with accounting poli- |
|
| cies
consistently applied; |
|
|
|
| (ii)
the expenditure incurred during the year was for the purpose of the company's |
|
| business; and |
|
|
| (iii)
the business conducted, investments made and the expenditure incurred during
the |
|
| year
were in accordance with the objects of the company; |
|
|
| (c)
in our opinion and to the best of our information and according to the
explanations given to |
|
| us,
the balance sheet, profit and loss account and the cash flow statement,
together with |
|
| the
notes forming part thereof, give the information required by the Companies
Ordinance, |
|
| 1984
in the manner so required and respectively give a true and fair view of the
state of the |
|
| company's
affairs as at June 30, 1998 and of the profit and of the cash flows 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. |
|
|
|
Ford, Rhodes, Robson,
Morrow |
|
| Karachi:
October 31, 1998 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1998 |
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
|
|
|
| Share Capital |
|
|
|
| Authorised |
|
|
|
|
| 20,000,000
ordinary shares |
|
|
| of Rs. 10 each |
|
|
200,000,000 |
200,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up |
|
3 |
105,190,600 |
105,190,600 |
|
|
|
|
|
| Reserves |
|
4 |
112,514,505 |
108,580,186 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
217,705,105 |
213,770,786 |
|
|
|
|
|
|
| LONG
TERM LOANS |
|
5 |
881,485,093 |
1,018,565,188 |
|
| LONG
TERM DEPOSITS |
|
6 |
164,491,598 |
163,794,601 |
|
| CERTIFICATES
OF INVESTMENT |
|
7 |
22,538,191 |
32,511,654 |
|
| DEFERRED
TAXATION |
|
|
5,500,000 |
-- |
|
| CURRENT
LIABILITIES |
|
|
|
| Current
maturity of long term loans |
|
|
286,750,724 |
218,441,221 |
|
| Current
maturity of long term deposits |
|
|
65,568,216 |
64,773,920 |
|
| Certificates
of investment |
|
7 |
252,467,438 |
242,485,788 |
|
| Short
term finances |
|
8 |
92,000,000 |
106,300,000 |
|
| Finance
under mark-up arrangements |
|
9 |
11,961,167 |
28,396,762 |
|
| Accrued
and other liabilities |
|
10 |
147,518,634 |
115,298,951 |
|
| Taxation |
|
|
-- |
1,831,731 |
|
| Proposed
dividend |
|
|
15,778,590 |
-- |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
872,044,769 |
777,528,373 |
|
| CONTINGENCIES
AND COMMITMENTS |
11 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
2,163,764,756 |
2,206,170,602 |
|
|
|
|
========== |
========== |
|
|
|
| TANGIBLE
FIXED ASSETS |
|
|
|
| Operating
fixed assets |
|
12 |
14,297,585 |
16,205,606 |
|
|
|
|
|
| NET
INVESTMENT IN LEASE FINANCE |
|
13 |
|
|
| Minimum
lease payments receivable |
|
|
2,181,378,711 |
2,148,361,505 |
|
| Residual
value of leased assets |
|
|
|
269,108,263 |
264,505,577 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
2,450,486,974 |
2,412,867,082 |
|
| Unearned
finance income |
|
|
(576,391,394) |
(563,740,040) |
|
|
|
|
--------------- |
--------------- |
|
| Net
investment in lease finance |
|
1,874,095,580 |
1,849,127,042 |
|
| Current
portion of net investment in lease finance |
|
(792,033,092) |
(713,194,717) |
|
| Provision
for doubtful debts |
|
(42,167,151 ) |
(36,982,541) |
|
|
|
--------------- |
--------------- |
|
|
|
|
1,039,895,337 |
1,098,949,784 |
|
|
|
|
|
|
| LONG
TERM INVESTMENTS |
|
14 |
40,875,616 |
25,875,616 |
|
|
|
|
|
| LONG
TERM LOANS, DEPOSITS AND |
|
|
|
| DEFERRED
COSTS |
|
15 |
30,079,522 |
17,790,922 |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
|
|
|
| Current
portion of net investment |
|
|
| in lease finance |
|
|
792,033,092 |
713,194,717 |
|
| Short
term investments |
|
16 |
10,000,000 |
25,000,000 |
|
| Short
term finance |
|
|
-- |
2,000,000 |
|
| Advances,
prepayments |
|
|
|
|
| and
other receivables |
|
17 |
102,701,082 |
79,116,486 |
|
| Cash
and bank balances |
|
18 |
133,882,522 |
228,037,471 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
1,038,616,696 |
1,047,348,674 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
2,163,764,756 |
2,206,170,602 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
| The
auditors' report is annexed hereto. |
|
|
|
SANAULLAH QURESHI |
KHALEEQ-UR-REHMAN KHAN |
YUSUF H. SHIRAZl |
|
|
Director |
|
Chief Executive |
|
Chairman |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 1998 |
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| REVENUE |
|
|
|
| Income
from leasing operations |
|
19 |
317,763,732 |
317,424,744 |
|
| Other Income |
|
20 |
21,583,876 |
7,282,265 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
339,347,608 |
324,707,009 |
|
| EXPENDITURE |
|
|
|
|
| Financial
charges |
|
21 |
263,152,137 |
262,343,953 |
|
| Administrative
and operating expenses |
|
22 |
34,548,857 |
30,223,816 |
|
| Provision
for doubtful debts |
|
|
5,184,610 |
3,790,923 |
|
| Amortization
of deferred costs |
|
|
2,101,234 |
3,713,415 |
|
|
|
|
304,986,838 |
300,072,107 |
|
|
|
|
--------------- |
--------------- |
|
| PROFIT
FOR THE YEAR BEFORE TAXATION |
|
34,360,770 |
24,634,902 |
|
|
|
|
|
|
| TAXATION |
|
|
|
|
| Current |
|
23 |
3,745,021 |
3,361,122 |
|
| Prior |
|
|
5,402,840 |
3,551,001 |
|
| Deferred |
|
|
5,500,000 |
-- |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
14,647,861 |
6,912,123 |
|
|
|
|
--------------- |
--------------- |
|
| PROFIT
AFTER TAXATION |
|
|
19,712,909 |
17,722,779 |
|
| Accumulated
profit brought forward |
|
|
4,213,954 |
35,731 |
|
|
|
|
--------------- |
--------------- |
|
| Profit
available for appropriation |
|
|
|
23,926,863 |
17,758,510 |
|
|
|
|
|
| APPROPRIATIONS: |
|
|
|
|
| Transfer
to statutory reserve |
|
|
|
3,942,582 |
3,544,556 |
|
| Transfer
to general reserve |
|
|
|
4,000,000 |
10,000,000 |
|
| Proposed
dividend @ 15% (1997: Nil) |
|
|
15,778,590 |
-- |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
23,721,172 |
13,544,556 |
|
|
|
|
--------------- |
--------------- |
|
| Unappropriated
profit carried forward |
|
|
205,691 |
4,213,954 |
|
|
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
| SANAULLAH
QURESHI |
KHALEEQ-UR-RAHMAN KHAN |
YUSUF H. SHIRAZI |
|
| Director |
|
Chief Executive |
|
Chairman |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30, 1998 |
|
|
|
|
1997 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
|
| Profit
for the year before taxation |
|
|
34,360,770 |
24,634,902 |
|
| Adjustments
for: |
|
|
|
|
| Depreciation
on fixed assets |
|
|
|
3,513,745 |
3,953,350 |
|
| Amortization
of deferred costs |
|
|
|
2,101,234 |
3,713,415 |
|
| Provision
for doubtful debts |
|
|
|
5,184,610 |
3,790,923 |
|
| Profit
on sale of fixed assets |
|
|
|
(97,157) |
(295,045) |
|
| Exchange loss |
|
|
|
|
8,564,050 |
2,193,425 |
|
| Interest/mark-up
expense (net of interest |
|
|
|
|
| income
on foreign currency deposits) |
|
220,984,064 |
197,818,905 |
|
| Investment
income |
|
|
|
(20,743,911) |
(6,245,871) |
|
|
|
--------------- |
--------------- |
|
|
|
219,506,635 |
204,929,102 |
|
|
|
--------------- |
--------------- |
|
| Operating
profit before working capital changes |
|
253,867,405 |
229,564,004 |
|
|
|
|
| (Increase)/decrease
in current assets |
|
|
|
| Short
term finances |
|
|
|
2,000,000 |
(2,000,000) |
|
| Short
term investments |
|
|
|
15,000,000 |
(25,000,000) |
|
| Advances,
prepayments and other receivables |
|
|
(16,982,312) |
36,442,161 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
17,688 |
9,442,161 |
|
| Increase/(decrease)
in current liabilities |
|
|
|
| Certificates
of investment |
|
|
|
9,981,650 |
(81,937,566) |
|
| Short
term finances |
|
|
|
(14,300,000) |
19,650,000 |
|
| Finance
under mark-up arrangement |
|
|
(16,435,595) |
(31,113,151) |
|
| Accrued
and other liabilities |
|
|
|
16,566,117 |
(36,117,172) |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
(4,187,828) |
(129,517,889) |
|
|
|
--------------- |
--------------- |
|
| Cash
generated from operations |
|
|
249,697,265 |
109,488,276 |
|
| Income
taxes paid |
|
|
|
(13,494,474) |
(5,114,164) |
|
| Interest/mark-up
paid (net of receipt from |
|
|
|
|
| interest
on foreign currency deposits) |
|
|
(205,330,498) |
(176,883,258) |
|
| Investment
income received |
|
|
|
19,428,956 |
5,726,169 |
|
|
|
|
|
--------------- |
--------------- |
|
| Net
cash generated from / (used in) |
|
|
|
| operating
activities |
|
|
|
50,301,249 |
(66,782,977) |
|
|
|
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
| Long
term investments |
|
|
(15,000,000) |
(1,000,000) |
|
| Capital
expenditure |
|
|
(4,410,994) |
(3,232,060) |
|
| Long
term deposits and deferred costs |
|
(224,700) |
47,962 |
|
| Net
investment in lease finance (net of repayments) |
|
(27,591,696) |
(194,486,200) |
|
| Sale
of fixed assets |
|
|
2,902,427 |
882,312 |
|
| Loan
to executive |
|
|
(1,766,366) |
(176,000) |
|
| Recovery
of loan to executive |
|
|
235,118 |
196,193 |
|
|
|
--------------- |
--------------- |
|
| Net
cash (used in) investing activities |
|
(45,856,211) |
(197,767,793) |
|
|
|
|
|
|
|
|
| CASH
FLOWS FROM FINANCING ACTIVITIES |
|
|
| Issue
of Certificates of Investment |
|
(9,973,463) |
20,614,026 |
|
| Long
term loans |
|
73,105,579 |
635,487,267 |
|
| Repayment
of long term loans |
|
(141,876,171) |
(182,343,446) |
|
| Deferred costs |
|
|
(21,347,225) |
(15,999,915) |
|
| Dividends paid |
|
|
-- |
(15,778,590) |
|
| Long
term advances and deposits |
|
1,491,293 |
35,314,183 |
|
|
|
--------------- |
--------------- |
|
| Net
cash (used in) / generated from |
|
|
|
| financing
activities |
|
(98,599,987) |
477,293,525 |
|
|
|
--------------- |
--------------- |
|
| Net
(decrease)/increase in cash activities |
|
(94,154,949) |
212,742,755 |
|
|
|
|
|
|
| Cash
and bank balances at the beginning of the year |
|
228,037,471 |
15,294,716 |
|
|
|
|
--------------- |
--------------- |
|
| Cash
and bank balances at the end of the year |
|
133,882,522 |
228,037,471 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| SANAULLAH
QURESHI |
KHALEEQ-UR-RAHMAN KHAN |
YUSUF H. SHIRAZl |
|
| Director |
|
Chief Executive |
|
Chairman |
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED JUNE 30, 1998 |
|
|
| 1.
THE COMPANY AND ITS OPERATIONS |
|
| The
company is incorporated in Pakistan and is listed on the Karachi, Lahore and
Islamabad |
|
| stock
exchanges. It essentially carries on the business of leasing. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
Accounting convention |
|
| These
accounts have been prepared under the historical cost convention. |
|
|
| 2.2
Revenue recognition |
|
| The
company follows the "Finance Method" in accounting for recognition
of lease income. |
|
| Under
this method the unearned lease income i.e. the excess of aggregate lease
rentals |
|
| and
the residual value over the cost of leased asset is deferred and then
amortized to |
|
| income
over the term of the lease, applying the annuity method to produce a constant |
|
| rate
of return on the net cash investment in the lease. |
|
|
| Other
lease related income is recognised as and when realised. |
|
|
|
|
| Return
on government investments is recognized on an accrual basis on the assumption |
|
| that
such investments will be held upto the next terminal date. |
|
|
|
|
| Dividends
from equity securities are recognised when the right to receive such
dividends |
|
| becomes
vested. |
|
|
| 2.3
Tangible fixed assets |
|
| These
are stated at cost less accumulated depreciation. Depreciation is charged to |
|
| income
applying the reducing balance method at the rates specified in note 12 to the |
|
| accounts.
In respect of additions during the year, depreciation is charged for the full |
|
| year,
however, no depreciation is charged in the year of disposal. |
|
|
|
|
| Profit
or loss on disposal of assets is included in income currently. |
|
|
| 2.4
Deferred costs |
|
| Processing
charges of long term loans and other deferred costs are being amortized |
|
| over
a period of three years from the year of incurrence. |
|
|
| 2.5
Investments |
|
|
|
|
| Long
term investments |
|
| These
are stated at cost. Provision for diminution in value of investments is made,
if |
|
| considered
permanent. |
|
|
|
|
| Short
term investments |
|
| These
are stated at lower of cost and market value. |
|
|
| 2.6 Taxation |
|
|
|
| Current: |
|
|
| The
charge for the current taxation for the year, if required, is based on
taxable income, |
|
| which
is computed as if all leases are operating leases. |
|
|
|
|
| Deferred: |
|
|
| The
company accounts for deferred taxation using the liability method on all
significant |
|
| timing
differences, excluding those timing differences which are not likely to
reverse in |
|
| the
foreseeable future. |
|
|
| 2.7
Foreign currency translations |
|
| Assets
and liabilities in foreign currencies are translated at the rates of exchange
which |
|
| approximate
those prevailing at the balance sheet date except for liabilities covered |
|
| under
an exchange risk coverage scheme which are translated at the rate prevailing
on |
|
| the
date of disbursement. Exchange differences arising as a result of obtaining
cover |
|
| under
these schemes are being amortized over the period of loan. Net exchange |
|
| differences
arising due to hedging mechanism are accounted for as deferred revenue/ |
|
| deferred
costs as the case may be and are credited/amortized to the income over the |
|
| term
of the underlying transactions. |
|
|
| 2.8
Off-setting of financial assets and financial liabilities |
|
| A
financial asset and a financial liability is offset and the net amount is
reported in the |
|
| balance
sheet if the company has a legally enforceable right to set-off the
transaction |
|
| and
also intends either to settle on a net basis or to realize the asset and
settle the |
|
| liability
simultaneously. Income and expenses arising from such assets and liabilities |
|
| are
also accordingly offset. |
|
|
| 2.9
Employees' retirement benefits |
|
| The
company operates a contributory provident fund for all its permanent
employees |
|
| and
contributions are made monthly in accordance with the fund rules. |
|
|
| 2.10
Provision for doubtful debts |
|
| Keeping
in view the nature of leasing business, the company, as a prudent policy, |
|
| makes
this provision at a reasonable level, which as per management's anticipation
is |
|
| adequate
for potential losses on the lease portfolio. |
|
|
|
|
|
1998 |
1997 |
|
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| 3.
ISSUED, SUBSCRIBED AND PAID-UP |
|
|
| CAPITAL |
|
|
|
| 8,864,060
ordinary shares of Rs.10 each |
|
|
| fully
paid in cash |
|
3.1 |
88,640,600 |
88,640,600 |
|
| 1,655,000
ordinary shares of Rs.10 each |
|
|
| issued
as fully paid bonus shares |
|
|
16,550,000 |
16,550,000 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
105,190,600 |
105,190,600 |
|
|
|
|
========== |
========== |
|
|
| 3.1
Includes 536,560 ordinary shares of Rs.10 each issued to International
Finance |
|
| Corporation
at premium of Rs.10.85 per share upon exercise of their option to convert |
|
| a
portion of its loan into equity based on financial statements as at June 30,
1995 as |
|
| per
the loan agreement (refer to note 5.9). |
|
|
|
|
|
1998 |
1997 |
|
|
|
Note |
Rupees |
Rupees |
|
| 4.
RESERVES |
|
|
|
|
|
|
|
|
| Capital
reserves |
|
|
|
| Premium
on shares |
|
3.1 |
5,821,676 |
5,821,676 |
|
| Statutory
reserve |
|
4.1 |
33,638,043 |
29,695,461 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
39,459,719 |
35,517,137 |
|
| Revenue
reserves |
|
|
|
--------------- |
--------------- |
|
| General
reserve |
|
|
4.2 |
72,849,095 |
68,849,095 |
|
| Unappropriated
profit |
|
|
|
205,691 |
4,213,954 |
|
|
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
|
73,054,786 |
73,063,049 |
|
|
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
|
112,514,505 |
108,580,186 |
|
|
|
|
|
|
========== |
========== |
|
|
| 4.1
This represents 20% of after tax profit as required under the relevant
provision of the |
|
| State
Bank of Pakistan rules for Non Banking Financial Institutions. |
|
|
| 4.2
General reserve |
|
|
| Balance
as at July 1 |
|
|
|
68,849,095 |
85,000,000 |
|
| Transfer
to statutory reserve |
|
|
|
-- |
(26,150,905) |
|
| Transfer
from profit and loss account |
|
|
4,000,000 |
10,000,000 |
|
|
|
|
|
|
--------------- |
--------------- |
|
|
|
|
72,849,095 |
68,849,095 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 5.
LONG TERM LOANS - Secured |
|
|
|
|
|
| Foreign
currency loans |
|
|
|
| Commonwealth
Development Corp. II |
|
5.2 |
33,515,685 |
55,920,766 |
|
| Asian
Development Bank l |
|
5.3 |
21,040,369 |
42,086,162 |
|
| Asian
Development Bank II |
|
5.4 |
464,200,000 |
407,028,000 |
|
| Netherlands
Development Finance Co. I |
|
5.5 |
61,565,164 |
85,941,252 |
|
| Netherlands
Development Finance Co. II |
|
5.6 |
229,305,516 |
236,956,153 |
|
| German
Investment and Development Co. I |
|
5.7 |
27,981,079 |
39,144,043 |
|
| German
Investment and Development Co. II |
|
5.8 |
41,401,504 |
53,212,459 |
|
| International
Finance Corporation (Loan A) |
|
5.9 |
204,961,253 |
242,225,430 |
|
| International
Finance Corporation (Loan B) |
|
5.10 |
25,531,000 |
67,159,620 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
1,109,501,570 |
1,229,673,885 |
|
| Less:
Exchange differences not yet due |
|
|
2,364,071 |
3,223,019 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
1,107,137,499 |
1,226,450,866 |
|
| Local
currency loans |
|
|
|
| From
- Investment bank - loan 1 |
|
|
5.11 |
22,500,000 |
-- |
|
| -
banking company - loan 2 |
|
|
5.12 |
26,250,000 |
8,333,335 |
|
| -
banking company -loan 3 |
|
|
5.13 |
12,348,318 |
2,222,208 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
61,098,318 |
10,555,543 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
1,168,235,817 |
1,237,006,409 |
|
| Less:
Current maturity |
|
|
|
286,750,724 |
218,441,221 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
881,485,093 |
1,018,565,188 |
|
|
|
|
========== |
========== |
|
|
| 5.1
All the loans stated in note 5.2 to 5.12 above are secured by pari-passu
floating charge |
|
| on
the present and future leased assets, hypothecation of movable assets and |
|
| receivables
of the company and demand promissory notes. The foreign currency loans |
|
| are
registered with the State Bank of Pakistan. |
|
|
| 5.2
This represents balance of a loan facility of Pound Sterling 2,500,000
obtained from |
|
| Commonwealth
Development Corporation (CDC) for financing lease operations. The |
|
| loan
is repayable in 10 equal semi-annual installments which commenced from |
|
| January
25, 1995. |
|
|
| The
liability of this loan has been fixed in Pakistani Rupees under the exchange
risk |
|
| cover
scheme of State Bank of Pakistan and the rate of interest and exchange risk |
|
| cover
fee is 10.5% and 6.93% per annum respectively, payable half-yearly. In case
the |
|
| company
fails to pay any amount on the due date, it shall be liable to pay liquidated |
|
| damages
at the rate of 1% per annum over and above the interest rate. |
|
|
| 5.3
This represents balance of a loan facility of US $ 5,000,000 obtained from
Asian |
|
| Development
Bank (ADB) for financing lease operations. The loan is repayable in 12 |
|
| equal
semi-annual instalments which commenced from December 15, 1993. |
|
|
| The
liability of this loan has been fixed in Pakistani Rupees under the exchange
risk |
|
| cover
scheme of State Bank of Pakistan. The rate of interest and exchange risk
cover |
|
| fee
is 9.4% and 7.08% per annum respectively, payable half-yearly. In case the
company |
|
| fails
to pay any amount on the due date, it shall be liable to pay liquidated
damages at |
|
| the
rate of 1% per annum over and above the interest rate. |
|
|
| 5.4
This represents balance of a second loan facility of US$ 10,000,000 obtained
from |
|
| Asian
Development Bank (ADB) for financing lease operations. The loan is repayable
in |
|
| 10
equal semi-annual installments commencing from March 15, 1999. |
|
|
| The
interest rate is LIBOR plus 2.25% per annum payable half-yearly. In case the |
|
| company
fails to pay any amount on the due date, it shall be liable to pay liquidated |
|
| damages
at the rate of 1% per annum over and above the interest rate. |
|
|
| 5.5
This represents balance of a loan facility of Netherland Guilders (NLG)
10,000,000 |
|
| comprising
of two equal tranches of NLG 5,000,000 each and was obtained from |
|
| Netherlands
Development Finance Company (FMO) for financing lease operations. |
|
| The
loan is repayable in 14 equal semi-annual installments which commenced from |
|
| November
1, 1994 for the first tranche and November 1, 1995 for the second tranche. |
|
|
| The
liability of this loan has been fixed in Pakistani Rupees under the exchange
risk |
|
| cover
scheme of State Bank of Pakistan. The rate of interest and exchange risk
cover |
|
| fee
is 10.7% and 5% per annum respectively, payable half-yearly. In case the
company |
|
| fails
to pay any amount on the due date, it shall be liable to pay liquidated
damages at |
|
| the
rate of 2% per annum over and above the interest rate. |
|
|
| 5.6
This represents the balance of a second loan facility of US$ 5,821,618
equivalent to |
|
| Netherland
Guilders (NLG) 10,000,000 obtained from Netherlands Development Finance |
|
| Company
(FMO) for financing lease operations. The loan has been drawn in two tranches |
|
| and
is repayable in 10 equal semi-annual installments commencing from November 1, |
|
| 1997
and May 1 1998 respectively. |
|
|
| The
interest rate for the first tranche is 10.50% per annum and for the second
tranche is |
|
| 10.25%
per annum payable half-yearly. In case the company fails to pay any amount on |
|
| the
due date, it shall be liable to pay liquidated damages at the rate of 2% per
annum |
|
| over
and above the interest rate. |
|
|
| 5.7
This represents the balance of a loan facility of Deutsche Marks 5,000,000
obtained |
|
| from
German Investment and Development Company (DEG) for financing lease |
|
| operations.
The loan is repayable in 15 equal semi-annual instalments which commenced |
|
| from
October 30, 1993. |
|
|
| The
liability of this loan has been fixed in Pakistani Rupees under the exchange
risk |
|
| cover
scheme of State Bank of Pakistan. The rate of interest and exchange risk
cover |
|
| fee
is 10.5% and 5% per annum respectively, payable half-yearly. In case the
company |
|
| fails
to pay any amount on the due date, it shall be liable to pay liquidated
damages at |
|
| the
rate of 2% per annum over and above the interest rate. |
|
|
| 5.8
This represents the balance of a loan facility of Deutsche Marks 5,000,000
obtained |
|
| from
German Investment and Development Company (DEG) for financing lease |
|
| operations.
The loan is repayable in 15 equal semi-annual installments which commenced |
|
| from
October 30, 1994. |
|
|
| The
liability of this loan has been fixed in Pakistani Rupees under the exchange
risk |
|
| cover
scheme of State Bank of Pakistan. The rate of interest and exchange risk
cover |
|
| fee
is 10.6% and 5.77% per annum respectively, payable half-yearly. In case the
company |
|
| fails
to pay any amount on the due date, it shall be liable to pay liquidated
damages at |
|
| the
rate of 2% per annum over and above the interest rate. |
|
|
| 5.9
This represents the balance of a loan facility (A) of US$ 10,000,000 obtained
from |
|
| International
Finance Corporation (IFC) for financing lease operations. The loan is |
|
| repayable
in 16 equal semi-annual installments which commenced from June 15, 1996. |
|
|
| In
accordance with the loan agreement IFC has exercised its conversion option of
loan |
|
| into
equity (refer to note 3.1) |
|
|
| The
liability of this loan has been fixed in Pakistani Rupees under the exchange
risk |
|
| cover
scheme of State Bank of Pakistan. The rate of interest and exchange risk
cover |
|
| fee
is 8.5% and 6.66% per annum respectively, payable half-yearly. In case the
company |
|
| fails
to pay any amount on the due date, it shall be liable to pay liquidated
damages at |
|
| the
rate of 2% per annum over and above the interest rate. |
|
|
| 5.10
This represents the balance of a loan facility (B) of US$ 2,200,000 obtained
from |
|
| International
Finance Corporation (IFC) for financing lease operations. The loan is |
|
| repayable
in 4 equal semi annual installments which commenced from June 15, 1997. |
|
|
| The
interest rate is LIBOR plus 2.75% per annum payable half yearly. In case the
company |
|
| fails
to pay any amount on the due date, it shall be liable to pay liquidated
damages at |
|
| the
rate of 2% per annum over and above the interest rate. |
|
|
| 5.11
This represents the balance of a loan facility of Rs. 30,000,000 obtained
from an |
|
| investment
bank for financing the leasing operations of the company. The loan is |
|
| repayable
in 24 equal monthly installments which commenced from January 27, 1998 |
|
| and
carries mark-up at the rate of 54.79 paisas per thousand Rupees per day. |
|
|
| 5.12
This represents the balance of a loan facility of Rs. 30,000,000 obtained
from a banking |
|
| company
for financing the leasing operations of the company. The loan is repayable in |
|
| 24
equal monthly installments which commenced from April 25, 1998 and carries
mark- |
|
| up
at the rate of 50.68 paisas per thousand Rupees per day. |
|
|
| 5.13
This represents the balance of a loan facility of Rs. 13,105,579 obtained
from a banking |
|
| company
for financing the leasing operations of the company. The loan is secured by |
|
| second
charge on leased assets of the company. The loan is repayable in 12 quarterly |
|
| installments
which commenced from April 01, 1998 and carries mark-up at the rate of |
|
| 50.68
paisas per thousand Rupees per day. |
|
|
|
|
|
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| 6.
LONG TERM DEPOSITS |
|
|
|
|
|
|
|
|
| From lessees |
|
|
|
|
| Security
deposits on lease |
|
|
| contracts |
|
|
6.1 |
229,170,160 |
227,860,032 |
|
| From
employees |
|
|
6.2 |
889,654 |
708,489 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
230,059,814 |
228,568,521 |
|
| Less:
Current maturity of security deposits on |
|
|
| lease contracts |
|
|
|
65,568,216 |
64,773,920 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
164,491,598 |
163,794,601 |
|
|
|
|
========== |
========== |
|
|
| 6.1
These represent security deposits received against lease contracts and are
repayable/ |
|
| adjustable
at the expiry of respective lease periods. |
|
|
| 6.2
These represent deposits from employees under the Company's Car scheme. |
|
|
| 7.
CERTIFICATES OF INVESTMENT |
|
| The
company has a scheme of registered Certificates of Investment (COl) for
resource |
|
| mobilization
as per permission from the Corporate Law Authority, Government of Pakistan.
It |
|
| is
based on the profit and loss sharing principle. Returns are presently being
paid at rates |
|
| negotiated
with customers. Terms range from three months to five years. |
|
|
| 8.
SHORT TERM FINANCES |
|
|
| From
a bank-secured |
|
-- |
20,000,000 |
|
| From
a financial institution-secured |
|
-- |
5,800,000 |
|
| From
financial institutions-unsecured |
|
57,000,000 |
80,500,000 |
|
| From
others-unsecured |
|
35,000,000 |
-- |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
92,000,000 |
106,300,000 |
|
|
|
|
========== |
========== |
|
|
|
|
| The
mark-up rate on the above ranges from 48.63 to 51.37 paisas per thousand
Rupees per day. |
|
|
|
|
|
|
|
| 9.
FINANCE UNDER MARK-UP ARRANGEMENTS |
|
|
|
|
| Running
finances from banks utilized |
|
|
| under
mark-up arrangements - secured |
|
11,961,167 |
28,396,762 |
|
|
|
|
========== |
========== |
|
|
|
|
| The
facilities from commercial banks amount to Rs. 68.5 million (1997:Rs.108.50
million) |
|
| and
the mark-up rates range from 50.68 to 54.79 paisas per thousand Rupees per
day and |
|
| are
payable currently. The arrangements are secured by pari-passu floating charge
on present |
|
| and
future leased assets and hypothecation of rentals receivable. |
|
|
|
|
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
| 10.
ACCRUED AND OTHER LIABILITIES |
|
|
|
|
| Accrued expenses |
|
|
2,047,809 |
1,041,983 |
|
| Mark-up
on secured |
|
|
|
| -long term loans |
|
|
21,069,307 |
19,008,615 |
|
| -
credit facility availed [net of accrued interest on |
|
| foreign
currency deposits Rs.29,804,226 - |
|
|
| (1997: Rs.
16,814,826) - refer to note 18.1] |
|
|
17,176,159 |
9,520,878 |
|
| - running
finances |
|
|
504,718 |
980,978 |
|
| - short term
finances |
|
|
648,767 |
602,904 |
|
| Mark-up on
unsecured short term finances |
|
915,938 |
1,214,863 |
|
| Exchange risk
cover fee payable to SBP |
|
61,897,821 |
49,057,908 |
|
| Accrued
in respect of late payment of exchange |
|
|
| risk cover fee |
|
|
7,210,239 |
2,363,810 |
|
| Guarantee
commission, commitment and other |
|
|
| charges on long term
loans |
|
|
1,732,239 |
2,276,235 |
|
| Profit payable
on Certificates of Investment |
|
16,374,544 |
9,707,629 |
|
| Other liabilities |
|
|
|
| Advance
from customers pending |
|
|
| lease execution |
|
|
1,083,660 |
2,051,607 |
|
| Advance
lease rentals from lessees |
|
5,872,536 |
7,752,439 |
|
| Payments from
lessees received on account |
|
9,672,635 |
9,117,359 |
|
| Unclaimed dividends |
|
|
18,248 |
19,482 |
|
| Others |
|
|
1,294,014 |
582,261 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
17,941,093 |
19,523,148 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
147,518,634 |
115,298,951 |
|
|
|
|
|
========== |
========== |
|
| 11.
CONTINGENCIES AND COMMITMENTS |
|
| 11.1
Contingencies |
|
|
|
| Counter-guarantee
issued to an associated |
|
|
|
|
| undertaking
in respect of financing transactions |
|
|
-- |
11,875,147 |
|
|
|
|
========== |
========== |
|
| 11.2
Commitments |
|
|
|
|
|
| Letters of comfort
against letters of credit |
|
|
3,881,722 |
8,000,000 |
|
| Lease commitments |
|
|
2,801,461 |
19,187,273 |
|
| Capital
expenditure for computer software |
|
|
|
|
| (associated undertaking) |
|
|
700,000 |
1,000,000 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
7,383,183 |
28,187,273 |
|
|
|
|
|
========== |
========== |
|
| 12.
OPERATING FIXED ASSETS |
|
|
|
COST |
|
DEPRECIATION |
|
Written down |
|
|
|
Accumulated |
|
Accumulated |
value as at |
|
|
|
As at |
|
As at |
as at |
Charge for the |
On |
as at |
June 30, |
Depreciation |
|
|
July 1, 1997 |
Additions |
Disposals |
June 30, 1998 |
July 1, 1997 |
year |
disposals |
June 30, 1998 |
1998 |
Rate on WDV |
|
|
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
% |
|
|
|
|
| Leasehold
improvements |
1,637,935 |
-- |
-- |
1,637,935 |
600,394 |
103,754 |
-- |
704,148 |
933,787 |
10 |
|
| Furniture
and fixtures |
1,451,587 |
42,700 |
5000 |
1,489,287 |
499,635 |
99,199 |
2,342 |
596,492 |
892,795 |
10 |
|
| Office
equipment |
1,611,118 |
182,000 |
351679 |
1,441,439 |
477,359 |
106,512 |
101,043 |
482,828 |
958,611 |
10 |
|
| Computer
equipment |
9,038,332 |
1,443,350 |
262650 |
10,219,032 |
3,558,971 |
1,687,320 |
89,218 |
5,157,073 |
5,061,959 |
25 |
|
| Electrical
equipment |
1,565,037 |
99,000 |
403915 |
1,260,122 |
694,700 |
76,518 |
199,759 |
571,459 |
688,663 |
10 |
|
| Motor vehicles |
|
11,131,133 |
2,643,944 |
3,480,657 |
10,294,420 |
4,398,477 |
1,440,442 |
1,306,269 |
4,532,650 |
5,761,770 |
20 |
|
|
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
|
26,435,142 |
4,410,994 |
4,503,901 |
26,342,235 |
10,229,536 |
3,513,745 |
1,698,631 |
12,044,650 |
14,297,585 |
|
|
========================================================================================================================= |
| 1997 |
|
24,621,792 |
3,232,060 |
1,418,710 |
26,435,142 |
7,107,629 |
3,953,350 |
831,443 |
10,229,536 |
16,205,606 |
|
|
|
========================================================================================================================= |
|
|
| 12.1
DISPOSAL OF ASSETS |
|
|
|
|
|
Accumulated |
Written |
Sale |
Mode of |
|
|
| Description |
|
Cost |
depreciation |
down value |
proceeds |
disposal |
Sold to |
|
|
|
Rupees |
Rupees |
Rupees |
Rupees |
|
|
| Furniture
& fixture |
5,000 |
2,342 |
2,658 |
1,630 |
Tender |
Mr. M. Ashfaq |
|
|
|
|
|
R-74, 15N2, Buffer Zone, |
|
|
|
|
|
Karachi. |
|
| Office
equipment |
162,110 |
55,750 |
106,360 |
46,000 |
Trade-in |
Integrated Devices |
|
|
|
|
|
E-9, Muhammad All
Society, Ghazi |
|
|
|
|
|
Salah-Uddin Road,
Karachi. |
|
| Office
equipment |
40,000 |
13,756 |
26,244 |
26,244 |
Negotiation |
* Atlas Information
Technology (Pvt) Ltd. |
|
|
|
1001, Park Avenue, Block
No. 6, |
|
|
|
PECHS, Karachi. |
|
| Office
equipment |
57,600 |
7,470 |
50,130 |
50,130 |
Negotiation |
* Atlas Warehousing (Pvt)
Ltd. |
|
|
|
|
|
8th Floor, Adamjee House, |
|
|
|
|
|
I. I. Chundrigar Road,
Karachi. |
|
| Office
equipment |
91,969 |
24,067 |
67,902 |
67,902 |
Negotiation |
* Shirazi Investments
(Pvt) Ltd. |
|
|
|
|
|
8th Floor, Adamjee House, |
|
|
|
|
|
I. I. Chundrigar Road,
Karachi. |
|
| Computer
equipment |
68,000 |
26,690 |
41,310 |
41,310 |
Negotiation |
* Atlas Warehousing (Pvt)
Ltd. |
|
|
|
|
|
8th Floor, Adamjee House, |
|
|
|
|
|
I. I. Chundrigar Road,
Karachi. |
|
| Computer
equipment |
49,000 |
19,233 |
29,767 |
29,767 |
Negotiation |
* Atlas Warehousing (Pvt)
Ltd. |
|
|
|
8th Floor, Adamjee House, |
|
|
|
I. I. Chundrigar Road,
Karachi. |
|
| Computer
equipment |
87,150 |
27,151 |
59,999 |
59,999 |
Negotiation |
* Shirazi Investments
(Pvt) Ltd. |
|
|
|
|
|
8th Floor, Adamjee House, |
|
|
|
|
|
I. i. Chundrigar Road,
Karachi. |
|
| Computer
equipment |
22,500 |
7,313 |
15,187 |
15,187 |
Negotiation |
* Shirazi Investments
(Pvt) Ltd. |
|
|
|
|
|
8th Floor, Adamjee House, |
|
|
|
|
|
I. I. Chundrigar Road,
Karachi. |
|
| Computer
equipment |
22,500 |
8,831 |
13,669 |
13,669 |
Negotiation |
* Shirazi Investments
(Pvt) Ltd. |
|
|
|
|
|
8th Floor, Adamjee House, |
|
|
|
|
|
I. I. Chundrigar Road,
Karachi. |
|
| Computer
equipment |
13,500 |
-- |
13,500 |
13,500 |
Negotiation |
* Shirazi Investments
(Pvt) Ltd. |
|
|
|
|
8th Floor, Adamjee House, |
|
|
|
|
I. I. Chundrigar Road,
Karachi. |
|
| Electrical
equipment |
299,915 |
140,527 |
159,388 |
30,000 |
Trade-in |
Emba Corporation (Pvt)
Ltd. |
|
|
|
|
|
Shaheed-e-Millat Road,
Karachi. |
|
| Electrical
equipment |
52,000 |
29,616 |
22,384 |
17,000 |
Negotiation |
General Airconditioners |
|
|
|
|
|
19, Ground Floor,
AI-Burhan Centre, |
|
|
|
|
|
Depot Lines, Saddar,
Karachi. |
|
| Electrical
equipment |
52,000 |
29,616 |
22,384 |
6,000 |
Negotiation |
General Airconditioners |
|
|
|
|
19, Ground Floor,
AI-Burhan Centre, |
|
|
|
|
Depot Lines, Saddar,
Karachi. |
|
| Motor vehicle |
|
662,000 |
445,076 |
216,924 |
375,000 |
Tender |
Mr. Younus Ismail |
|
|
|
|
|
66, Khayaban-e-Janbaz,
DHA |
|
|
|
|
|
Phase V, Karachi. |
|
| Motor vehicle |
|
279,000 |
187,577 |
91,423 |
227,000 |
Tender |
Ms. Rana Muzaffar |
|
|
|
|
55-B, 22nd Street, Off.
Khayaban-e- |
|
|
|
|
Mujahid, Phase V, DHA,
Karachi. |
|
| Motor vehicle |
|
308,500 |
111,060 |
197,440 |
213,488 |
Tender |
Mr. Riaz Ebrahim |
|
|
|
|
|
B-7, Shangrilla Apts.,
Jamshed Road |
|
|
|
|
|
No. 1, Karachi. |
|
| Motor vehicle |
|
668,635 |
240,709 |
427,926 |
427,926 |
Company |
Mr. Omar Qureshi |
|
|
|
|
Policy |
Ex-Employee |
|
| Motor vehicle |
|
659,522 |
321,847 |
337,675 |
337,675 |
Negotiation |
* Atlas Battery Ltd. |
|
|
|
|
|
D-181, Central Avenue,
S.I.T.E., |
|
|
|
|
|
Karachi. |
|
| Motor vehicle |
|
903,000 |
-- |
903,000 |
903,000 |
Negotiation |
* Atlas Battery Ltd. |
|
|
-------------- |
-------------- |
-------------- |
-------------- |
|
D-181, Central Avenue,
S.I.T.E., |
|
|
4,503,901 |
1,698,631 |
2,805,270 |
2,902,427 |
|
Karachi. |
|
|
|
========== |
========== |
========== |
========== |
|
|
| *
Associated undertaking |
|
|
|
| 13.
NET INVESTMENT IN LEASE FINANCE |
|
| Includes
Rs. 32,925,656 (1997: Rs. 17,028,548) in respect of associated companies.
Maxi- |
|
| mum
amount due at the end of any month during the year was Rs. 49,461,916 (1997: |
|
| Rs.
17,028,548). |
|
|
| 14.
LONG TERM INVESTMENTS |
|
|
| Shares
in companies: |
|
|
|
|
|
|
No. of |
No. of |
Market value/ |
Average |
|
|
|
|
ordinary |
ordinary |
Break up value |
cost |
1998 |
1997 |
|
|
|
shares |
shares |
1998 |
per share |
Cost |
Cost |
|
|
|
1998 |
1997 |
Rupees |
Rupees |
Rupees |
Rupees |
|
| Quoted: |
|
| J.D.W.
Sugar Mills Ltd. |
|
298,800 |
298,800 |
896,400 |
10.00 |
2,988,000 |
2,988,000 |
|
| Engro
Chemicals Pak. Ltd. |
|
6,900 |
6,000 |
343,275 |
114.49 |
790,000 |
790,000 |
|
| Muslim
Insurance Co. Ltd. |
|
|
| (associated
undertaking) |
|
37,863 |
27,438 |
492,219 |
14.23 |
538,790 |
538,790 |
|
| Atlas
Battery Ltd. |
|
|
| (associated
undertaking) |
|
86,019 |
80,018 |
3,204,208 |
63.35 |
5,449,226 |
5,449,226 |
|
|
|
|
|
-------------- |
|
-------------- |
-------------- |
|
|
|
|
|
4,936,102 |
|
9,766,016 |
9,766,016 |
|
| Less:
Provision for diminution in value |
|
| of
quoted investments |
|
|
(2,390,400) |
(2,390,400) |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
7,375,616 |
7,375,616 |
|
| Unquoted: |
|
|
|
| Arabian
Sea Country Club (note 14.1) |
|
| (Chief
Executive: Mr. Zaeem Lutfi) |
100,000 |
100,000 |
100,000 |
10.00 |
1,000,000 |
1,000,000 |
|
|
|
|
-------------- |
|
-------------- |
-------------- |
|
|
|
|
|
5,936,102 |
|
8,375,616 |
8,375,616 |
|
|
|
|
|
========== |
|
|
|
| Government
Securities: |
|
|
|
|
|
| Federal
Investment Bonds (note 14.2) |
|
|
32,500,000 |
17,500,000 |
|
|
|
|
|
-------------- |
-------------- |
|
|
|
|
|
40,875,616 |
25,875,616 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| 14.1
The break-up value of these shares is as per June 30, 1997 audited financial |
|
| statements. |
|
|
|
| 14.2
These investments have been made in compliance with the State Bank of
Pakistan |
|
| rules
for Non-Banking Financial Institutions to maintain the liquidity requirement
against |
|
| certain
liabilities. These investments carry a rate of return of 15% per annum and
mature |
|
| on
January 28, 2002, July 15, 2003 and November 22, 2004 respectively. |
|
|
|
|
| 14.3
The aggregate market / break-up value of investments in shares as at June 30,
1997 |
|
| was
Rs. 6,502,525. |
|
|
|
|
|
|
|
|
1998 |
1997 |
|
| 15.
LONG TERM LOANS, DEPOSITS AND |
Note |
|
|
Rupees |
Rupees |
|
| DEFERRED
COSTS |
|
|
|
|
|
|
| Loan to executives -
secured, considered good |
|
15.1 |
3,276,383 |
1,745,135 |
|
| Less:
Current portion |
|
|
374,427 |
225,138 |
|
|
|
|
-------------- |
-------------- |
|
|
|
15.1.1 |
2,901,956 |
1,519,997 |
|
| Deposits |
|
|
|
724,486 |
499,786 |
|
| Deferred costs |
|
|
15.2 |
26,453,080 |
15,771,139 |
|
|
|
|
|
-------------- |
-------------- |
|
|
|
|
|
30,079,522 |
17,790,922 |
|
|
|
|
========== |
========== |
|
|
| 5.1
This represents house loans to the Chief Executive Officer and an executive
which are |
|
| repayable
in 144 and 180 monthly instalments respectively and carry mark-up at the |
|
| rate
of 10% per annum. The loans are secured by registered mortgage of the
property |
|
| and
assignment of life insurance policies. |
|
|
| Maximum
amount outstanding at the end of any month during the year against loan to |
|
| Chief
Executive Officer was Rs. 1,745,135 (1997: Rs. 1,765,115). |
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| 15.1.1
Recoverable after three years |
|
2,832,644 |
1,454,014 |
|
| Others. |
|
69,312 |
65,983 |
|
|
|
-------------- |
-------------- |
|
|
|
2,901,956 |
1,519,997 |
|
|
|
|
========== |
========== |
|
| 5.2
Deferred costs |
|
|
| Front-end
fee on long term loans |
|
15.2.1 |
1,357,948 |
3,459,182 |
|
| Net
exchange difference arising due |
|
|
|
|
| to
hedging mechanism |
|
15.2.2 |
25,095,132 |
12,311,957 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
26,453,080 |
15,771,139 |
|
|
|
|
========== |
========== |
|
| 15.2.1
Front-end fee on long term loans |
|
| Opening
balance |
|
19,111,332 |
19,183,544 |
|
| Additions/(refunds)
during the year |
|
-- |
(72,212) |
|
|
|
|
|
-------------- |
-------------- |
|
|
|
19,111,332 |
19,111,332 |
|
| Amortized
to-date |
|
(17,753,384) |
(15,652,150) |
|
|
|
-------------- |
-------------- |
|
|
|
1,357,948 |
3,459,182 |
|
|
|
========== |
========== |
|
|
| The
above expenditure is carried forward as it confers the benefit of the same to |
|
| future years. |
|
|
| 15.2.2
Net exchange difference arising due |
|
| to
hedging mechanism |
|
|
| Opening
balance |
|
|
14,505,382 |
(1,793,440) |
|
| Debit
during the year |
|
|
19,153,800 |
16,298,822 |
|
|
|
|
|
-------------- |
-------------- |
|
|
|
|
|
33,659,182 |
14,505,382 |
|
| Amortized
to-date |
|
|
(8,564,050) |
(2,193,425) |
|
|
|
-------------- |
-------------- |
|
|
|
25,095,132 |
12,311,957 |
|
|
|
========== |
========== |
|
| 16.
SHORT TERM INVESTMENTS |
|
|
| Short
term federal bond |
|
-- |
25,000,000 |
|
| Federal
investment bond |
|
|
10,000,000 |
-- |
|
|
|
-------------- |
-------------- |
|
|
|
10,000,000 |
25,000,000 |
|
|
|
========== |
========== |
|
|
| This
investment has been made in compliance with the State Bank of Pakistan's
Regulations |
|
| for
Non-Banking Financial Institutions to maintain the liquidity requirement
against certain |
|
| liabilities.
The investment carries a rate of return of 14% per annum and shall mature on
May |
|
|
|
|
|
|
1998 |
1997 |
|
|
|
Note |
Rupees |
Rupees |
|
| 17.
ADVANCES, PREPAYMENTS AND |
|
|
| OTHER
RECEIVABLES |
|
|
|
|
|
|
| Advances
- considered good |
|
|
|
|
|
|
| - against assets to be leased out |
|
|
17.1 |
8,758,777 |
17,438,020 |
|
| - for capital expenditure |
|
|
17.2 |
1,300,000 |
1,000,000 |
|
| - for
expenses |
|
|
|
|
300,000 |
8,153 |
|
| - to
employees |
|
|
|
|
489,798 |
480,493 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
10,848,575 |
18,926,666 |
|
| Current
portion of loan to executives |
|
|
374,427 |
225,138 |
|
| Prepayments |
|
|
|
2,561,262 |
1,877,261 |
|
| Due
from associated undertakings |
|
17.3 |
-- |
3,002,384 |
|
| Accrued
lease income |
|
|
17.4 |
27,747,237 |
25,124,079 |
|
| Accrued
profit on long term investments |
|
2,291,917 |
936,712 |
|
| Accrued
profit on short term investments |
|
-- |
40,250 |
|
| Exchange
difference refundable from SBP |
|
49,190,061 |
24,484,568 |
|
| Advance
Income Tax |
|
|
2,514,882 |
|
| Repossessed
asset held for sale |
|
|
-- |
1,005,376 |
|
| Other
charges recoverable from lessees |
|
6,050,680 |
2,019,325 |
|
| Other
receivables |
|
|
1,122,041 |
1,474,727 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
102,701,082 |
79,116,486 |
|
|
|
|
========== |
========== |
|
|
| 17.1
Included in the above are advances against assets to be leased out amounting
to Rs. |
|
| 4,577,721
(1997: Rs. 7,577,721) to an associated undertaking. The maximum out- |
|
| standing
at the end of any month during the year was Rs. 7,577,721 (1997:7,577,721 ). |
|
|
| 17.2
This represents advance for computer software development to an associated
under- |
|
| taking.
The maximum outstanding at the end of any month during the year was Rs. |
|
| 1,300,000
(1997: Rs. 1,000,000). |
|
|
|
|
|
|
| 17.3
The maximum due at the end of any month during the year was Rs. 3,522,461
(1997: |
|
| Rs. 3,002,384). |
|
|
|
|
|
|
| 17.4
Included in the above is Rs. 1,917,797 (1997:Rs. nil) mark-up charged on an
advance |
|
| against
lease to an associated undertaking. The maximum amount due at the end of |
|
| any
month during the year was Rs. 1,917,797 (1997: Rs. nil). |
|
|
|
|
| 18.
CASH AND BANK BALANCES |
|
|
| Cash in hand |
|
|
|
|
22,563 |
12,019 |
|
| Stamps in hand |
|
|
|
|
48,251 |
31,475 |
|
| Cheques
in hand |
|
|
|
6,245,180 |
6,430,803 |
|
| With banks |
|
|
|
|
| on
current accounts |
|
|
1,764,073 |
766,852 |
|
| on
foreign currency deposit account |
|
|
109,310 |
166,254,400 |
|
| on
foreign currency deposit account |
|
18.1 |
124,193,145 |
53,041,922 |
|
| on
special account with SBP |
|
|
1,500,000 |
1,500,000 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
133,882,522 |
228,037,471 |
|
|
|
|
========== |
========== |
|
|
|
|
| 18.1
Foreign currency deposits |
|
18.1.1 |
712,785,825 |
556,297,328 |
|
| Less:
Credit facility availed |
|
|
588,592,680 |
503,255,406 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
124,193,145 |
53,041,922 |
|
|
|
|
========== |
========== |
|
|
|
| 18.1.1
The foreign currency deposits are under lien with respect to credit
facilities availed on |
|
| a
matching facility basis and have been offset in accordance with note 2.8. The
rate of |
|
| interest
on the deposits ranges from 6.0% to 7.91% per annum. The rate of mark-up |
|
| on
the credit facility availed ranges from 12.54% to 15.30% per annum. The
maturity of |
|
| credit
facilities and foreign currency deposits are upto September 15, 2003. |
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| 19.
INCOME FROM LEASING OPERATIONS |
|
317,763,732 |
317,424,744 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
| The
above includes all income arising on account of leasing operations. |
|
|
|
|
| 20.
OTHER INCOME |
|
|
|
| Return
on long term investments: |
|
|
| Government
securities |
|
|
4,818,573 |
2,643,904 |
|
| Dividends
[including Rs. 100,023 |
|
|
| (1997:
Rs.273,006) from associated undertakings] |
|
1,367,731 |
321,005 |
|
|
|
|
|
4,955,346 |
2,964,909 |
|
| Return
on short term investments |
|
1,560,053 |
1,120,545 |
|
| Income
from short term placements |
|
14,365,285 |
2,338,997 |
|
| Mark-up
on short term finance |
|
|
62,500 |
317,500 |
|
| Mark-up
on loan to executives |
|
|
181,366 |
176,000 |
|
| Profit
on sale of fixed assets |
|
|
97,157 |
295,045 |
|
| Guarantee
commission |
|
|
291,056 |
46,690 |
|
| Miscellaneous |
|
|
|
71,113 |
22,579 |
|
|
|
-------------- |
-------------- |
|
|
|
21,583,876 |
7,282,265 |
|
|
|
========== |
========== |
|
|
| 21.
FINANCIAL CHARGES |
|
| Mark-up
on secured |
|
|
|
| -
long term loans |
|
|
116,067,769 |
90,249,612 |
|
| -
credit facilities availed [net of interest on foreign |
|
|
| currency
deposits Rs. 58,849,901 |
|
|
| (1997:
Rs. 20,844,565) - refer to note 18.1] |
|
33,047,469 |
15,358,892 |
|
| -
running finances |
|
|
1,444,064 |
5,257,622 |
|
| -
short term finances |
|
|
6,720,385 |
2,427,562 |
|
| Mark-up
on short term finance - unsecured |
|
10,959,833 |
17,927,457 |
|
| Profit
on Certificates of Investment |
|
52,744,544 |
66,597,760 |
|
| Exchange
risk cover fee |
|
|
27,667,177 |
37,572,975 |
|
| Accrued
/ charged in respect of late payment of |
|
|
| exchange
risk cover fee |
|
|
4,846,429 |
19,924,134 |
|
| Exchange loss |
|
|
|
6,367,586 |
2,492,332 |
|
| Commitment
charges, guarantee commission and |
|
|
| other
charges on long term loans |
|
1,707,956 |
3,260,824 |
|
| Bank charges |
|
|
|
1,508,925 |
1,215,611 |
|
| Others |
|
|
|
70,000 |
59,172 |
|
|
|
-------------- |
-------------- |
|
|
|
263,152,137 |
262,343,953 |
|
|
|
========== |
========== |
|
|
| 22.
ADMINISTRATIVE AND OPERATING EXPENSES |
|
|
|
|
| Salaries,
allowances and benefits |
|
16,442,037 |
11,617,884 |
|
| Rent,
rates and taxes |
|
2,688,652 |
2,372,404 |
|
| Gas,
electricity and utilities |
|
652,197 |
558,271 |
|
| Printing
and stationery |
|
1,036,943 |
1,146,240 |
|
| Insurance |
|
|
1,153,944 |
913,637 |
|
| Repairs
and maintenance |
|
1,294,385 |
1,270,683 |
|
| Travelling
and conveyance |
|
741,276 |
851,017 |
|
| Staff
training expenses |
|
160,114 |
81,128 |
|
| Membership
and subscription |
|
323,854 |
554,646 |
|
| Canteen
and entertainment expenses |
|
694,199 |
1,671,132 |
|
| Postage
expenses |
|
150,154 |
147,858 |
|
| Telephone
expenses |
|
2,503,865 |
2,295,115 |
|
| Legal
and professional charges |
|
779,033 |
360,930 |
|
| Vehicle
running expenses |
|
1,416,725 |
1,623,050 |
|
| Advertisement |
|
|
385,480 |
214,597 |
|
| Depreciation |
|
|
3,513,745 |
3,953,350 |
|
| Stamps
and fees |
|
196,734 |
252,055 |
|
| Freight
and packing |
|
86,349 |
400 |
|
| Auditors'
remuneration |
|
|
|
| Audit fee |
|
90,000 |
65,000 |
|
| Taxation
services |
|
32,896 |
44,092 |
|
| Special
audit fee |
|
-- |
65,000 |
|
| Other
certifications |
|
20,000 |
27,625 |
|
| Out-of-pocket
expenses |
|
12,193 |
15,077 |
|
|
|
-------------- |
-------------- |
|
|
|
155,089 |
216,794 |
|
|
|
|
| Donations |
|
22.1 |
6,000 |
5,000 |
|
| Professional
tax |
|
163,155 |
85,000 |
|
| Miscellaneous |
|
4,927 |
32,625 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
34,548,857 |
30,223,816 |
|
|
|
|
========== |
========== |
|
|
|
|
| 22.1
Recipients of donation do not include any donee in whom any director or his
spouse |
|
| had an interest. |
|
|
|
| 23.
TAXATION |
|
|
| Assessments
have been finalised upto assessment year 1997-98. Provision for current taxa- |
|
| tion
has been made on the basis of minimum tax under section 80D of the Income Tax
Ordi- |
|
| nance, 1979. |
|
|
|
| Deferred
taxation arising due to timing differences computed under the liability
method is |
|
| estimated
at Rs. 73.46 million of which Rs. 14.92 million credit is in respect of the
current year |
|
| (1997:
Rs. 58.55 million, credit for the year Rs. 16.61 million). The liability for
deferred taxation |
|
| is
not likely to reverse in the foreseeable future and therefore no provision
for the same is |
|
| required.
However, in order to comply with the requirements of the revised
International |
|
| Accounting
Standard 12, entitled "Income Taxes" which is applicable from
accounting periods |
|
| beginning
on or after January 1,2001, the company has decided to make a provision of
Rs. |
|
| 5.5
million in the current year in order to gradually make full provision in
installments by |
|
| June 30, 2002. |
|
|
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| 24.
TRANSACTIONS WITH ASSOCIATED UNDERTAKINGS |
|
|
|
|
| Insurance
premium expense |
|
|
1,004,717 |
913,637 |
|
| Advance
for software development |
|
|
300,000 |
1,000,000 |
|
| Services
provided by |
|
|
1,476,098 |
1,221,055 |
|
| Services
provided to |
|
|
2,513 |
6,327 |
|
| Expenses
charged by |
|
|
-- |
21,714 |
|
| Expenses
charged to |
|
|
3,772,776 |
3,002,384 |
|
| Lease
rentals and advance received |
|
|
14,353,242 |
3,333,620 |
|
| Cost
of assets leased |
|
|
23,036,728 |
19,816,111 |
|
| Issue
of Certificates of Investment |
|
|
21,000,000 |
46,000,000 |
|
| Purchase
of vehicles |
|
|
1,661,887 |
370,334 |
|
| Sale
of fixed assets |
|
|
1,558,383 |
-- |
|
| Advance
against assets to be leased out |
|
|
-- |
7,577,721 |
|
| Short
term finance obtained and repaid |
|
|
70,000,000 |
40,000,000 |
|
| Mark-up
on short term finance obtained |
|
|
3,950,388 |
1,753,972 |
|
| Profit
on Certificates of Investment paid |
|
|
320,124 |
2,123,068 |
|
| Guarantee
commission |
|
|
291,056 |
46,690 |
|
|
| Transactions
with associated undertakings are entered into in the normal course of
business |
|
| at
contracted rates and terms determined in accordance with market rates. |
|
|
| 25.
REMUNERATION OF CHIEF EXECUTIVE, DIRECTOR AND EXECUTIVES |
|
| Remuneration
in respect of the above charged in these accounts is as follows: |
|
|
|
1998 |
|
1997 |
|
|
|
Chief |
|
Chief |
|
|
|
Executive |
Director |
Executives |
Total |
Executive |
Director |
Executives |
Total |
|
|
|
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
|
|
| Managerial
remuneration |
|
1,021,100 |
1,018,500 |
4,368,908 |
6,408,408 |
590,000 |
730,000 |
3,145,537 |
4,465,537 |
|
| Housing
and utilities |
|
514,800 |
502,425 |
2,107,948 |
3,125,173 |
280,500 |
346,500 |
1,451,437 |
2,078,437 |
|
| Medical,
allowances and other expenses |
66,243 |
493,788 |
484,474 |
1,044,505 |
58,873 |
187,193 |
327,182 |
573,248 |
|
| Provident fund |
|
93,600 |
91,350 |
385,053 |
570,003 |
51,000 |
63,000 |
276,060 |
390,060 |
|
|
---------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
|
1,695,643 |
2,106,063 |
7,346,383 |
11,148,089 |
980,373 |
1,326,693 |
5,200,216 |
7,507,282 |
|
|
================================================================================================ |
|
| Number
of persons |
|
1 |
1 |
21 |
|
1 |
1 |
16 |
|
|
|
|
==================================== |
==================================== |
|
|
| 25.1
The Chief Executive and Director are also provided with free use of
telephones and |
|
| company
maintained cars. |
|
|
| 25.2
Fees totalling Rs. 7,500 (1997: Rs. 7,000) were paid to five directors (1997:
three direc- |
|
| tors)
for attending Board Meetings during the year. |
|
|
|
| 26.
GENERAL |
|
|
| 26.1
Figures have been rounded off to the nearest rupee. |
|
|
| 26.2
Previous year's figures have been rearranged wherever necessary for the |
|
| purpose
of comparison. |
|
|
| SANAULLAH
QURESHI |
KHALEEQ-UR-RAHMAN KHAN |
YUSUF H. SHIRAZI |
|
| Director |
|
Chief Executive |
|
Chairman |
|
|
|
|
| ATLAS
GROUP COMPANIES |
|
Year of Establishment |
|
|
|
|
Acquisition* |
|
|
| Shirazi
Investments (Pvt) Ltd. |
|
|
|
1962 |
|
| Atlas
Honda Ltd. |
|
|
|
1963 |
|
| Atlas
Battery Ltd. |
|
|
|
1966 |
|
| Shirazi
Trading Co.(Pvt) Ltd. |
|
|
|
1973 |
|
| Atlas
Warehousing (Pvt) Ltd. |
|
|
|
1979 |
|
| Atlas
Office Equipment (Pvt) Ltd. |
|
|
1979* |
|
| Muslim
Insurance Co. Ltd. |
|
|
|
1980* |
|
| Allwin
Engineering Industries Ltd. |
|
|
1981* |
|
| Atlas
Lease Ltd. |
|
|
|
1989 |
|
| Atlas
Investment Bank Ltd. |
|
|
|
1990 |
|
| Honda
Atlas Cars (Pakistan) Ltd. |
|
1993 |
|
| Honda
Atlas Services (Pvt) Ltd. |
|
1994 |
|
| Atlas
Information Technology (Pvt) Ltd. |
|
1996 |
|
| Total
Atlas Lubricants Pakistan (Pvt) Ltd. |
|
1997 |
|
| Honda
Atlas Power Products (Pvt) Ltd. |
|
1997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
