| English Leasing Limited |
|
|
|
|
|
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|
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|
| Annual
Report 1998 |
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|
| CONTENTS |
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|
| Company
Information |
|
| Notice
of Annual General Meeting |
|
| Chairman
Review |
|
| Director's
Report |
|
| Auditor's
Report |
|
| Balance
Sheet |
|
| Profit
& Loss Account |
|
| Statement
of Changes in Financial Position |
|
| Notes
to the Accounts |
|
| Pattern
of Shareholding |
|
|
|
| COMPANY
INFORMATION |
|
|
| Company
Secretary |
|
| Mr.
Azhar Hussain |
|
|
| Bankers |
|
| Allied
Bank of Pakistan Limited |
|
| Muslim
Commercial Bank Limited |
|
| The
Bank of Khyber |
|
| Prudential
Commercial Bank Ltd. |
|
|
| Auditors |
|
| Rahim
Iqbal Rafiq & Co. |
|
| Chartered
Accountants |
|
|
| Legal
Advisor |
|
| Mr.
Haq Nawaz Chattha |
|
| International
Legal Services |
|
|
| Registrars
& Share Transfer Office |
|
| C
& K Management Associates (PVT) Limited |
|
| 4th
Floor, Trade Tower, |
|
| Abdullah
Haroon Road, |
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| Near
Metropole Hotel, Karachi- 75530 |
|
|
| Registered
Office |
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| 801,8th
Floor, Fortune Centre, |
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| 45-A,
Block '6', P.E.C.H.S., |
|
| Shahrah-e-Faisal, |
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| Karachi. |
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| Tel:
4529061-64 (4 Lines) |
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| Fax: 4529065 |
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| Principal
Office |
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| M. K. Arcade |
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| 32
- Davis Road. |
|
| Lahore. |
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| Tel:
6303855-58, 6302803-4 |
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| Fax:
9242-6304251 |
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| E-mail:ell@pol.com.pk |
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|
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| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that Seventh Annual General Meeting of the shareholders of
English Leasing |
|
| Limited
will be held at its Registered Office 801,8th Floor, Fortune Centre
Shahrah-e-Faisal, Karachi |
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| on
Thursday December 31, 1998 at 10:30 a.m. to transact the following business. |
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|
| 1.
To confirm the minutes of the Sixth Annual General Meeting held on December
28, 1997. |
|
|
| 2.
To receive, consider and adopt the Audited Accounts of the Company for the
year ended June |
|
| 30,
1998, together with the Director's and Auditor's Report there on. |
|
|
| 3.
To approve the payment of Cash Dividend of Rs. 2.00 per share (20%) for the
year ended June |
|
| 30,
1998, as recommended by the Board of Directors. |
|
|
| 4.
To elect seven Directors fixed by the Board of Directors for a period of 3
years in accordance |
|
| with
section 178 of the Companies Ordinance 1984, in place of the following
retiring Directors |
|
| namely: |
|
|
| 1.
Sheikh Javaid Mahmood |
|
5. Mr. Muhammad Rashid
Zahir |
|
| 2.
Sheikh Manzoor Elahi |
|
6. Mr. M. Saad Maniar |
|
| 3.
Sheikh Irshad Ahmad |
|
7. Mrs. Taskeen Javaid |
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| 4.
Mr. Zahid Ali H. Jamall |
|
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| All
retiring Directors shall be eligible for re-election. |
|
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| 5.
To appoint Auditors for the year 1998-99 and fix their remuneration. The
present Auditors M/s. |
|
| Rahim
Iqbal Rafiq & Co., Chartered Accountants, retire and being eligible,
offer themselves for |
|
| re-appointment. |
|
|
| 06.
To transact any other business which may be placed before the meeting with
the permission of |
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| the chair. |
|
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| Karachi:
December 10, 1998 |
|
By Order of the Board |
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|
|
|
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|
|
|
(Azhar Hussain) |
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|
|
Company Secretary |
|
|
| Notes: |
|
|
| 1.
The Share Transfer Books of the Company will remain closed from December 24,
to December |
|
| 31,
1998/both days inclusive) |
|
|
| 2.
A member entitled to attend and vote at this meeting is entitled to appoint
another member as |
|
| his/her
proxy, in order to be effective, must be received at the Registered Office of
the Company |
|
| not
less than 48 hours before the time for holding the meeting. |
|
|
| 3.
Nominations from shareholders for the office of Directors must be received at
least 14 clear days |
|
| before
the time of Meeting at the Registered Office of the Company. |
|
|
| 4.
Members are required to notify the change of address, if any immediately. |
|
|
| 5.
As per CIA Notification of May, 1991 no gift will be given to the
shareholders. |
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| CHAIRMAN'S
REVIEW |
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| I
feel immense pleasure while |
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| presenting
7th Annual Accounts of |
|
| your
Company for the period ended |
|
| June
30, 1998, from which you will |
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| also
be happy to find that amidst |
|
| extremely
unfavourable business, |
|
| industrial
and economic atmosphere, |
|
| your
company has done exceeding |
|
| well
and produced best results in |
|
| every
area of its operations. |
|
|
| Review
of ELL Operations: |
|
|
| Although
poor economic conditions persisted in the country, the company has not only
maintained its |
|
| growth
but made good overall progress. The company made Gross Lease Disbursements of
Rs.106.435 |
|
| million
raising its total disbursement to Rs.575.765 million registering an increase
of 23% over the |
|
| previous
year figure of Rs. 469.330 million. Net investment in leases increased by 39%
from Rs. 109.393 |
|
| million
to Rs. 152.346 million in the year 1997. The Company generated income of Rs.
51.773 million |
|
| from
lease operations showing 14% increase over the previous year, earned pre-tax
profit of Rs. 22.330 |
|
| million,
thus recorded 49% increase over the previous year figure of Rs. 15.001
million. Expenditure |
|
| on
the other hand, reduced to Rs. 29.443 million form Rs. 30.245 million of last
year despite inflationary |
|
| conditions
which speaks of tight management controls. Main expenditure consist of
financial charges |
|
| Rs.
18.486 million which nominally increased by Rs. 0.320 million. Stock market
remained poor |
|
| throughout
the year and company investment both long term and short term depleted
further. |
|
|
| As
a matter of policy, your management maintained diversified lease portfolio
with highest exposure |
|
| in
Machinery 87%, Vehicles 11% and Equipment 2%. Sector-wise exposure reads
Textile Processing |
|
| 7%,
Textile Weaving 7%, Textile Spinning 3%, Engineering 11%. Sugar 19%,
Electronics 5%, Food & |
|
| Allied
2%, Paper & Board 2%, Agriculture 9%, Synthetic and Fibres 5%, Knitting
8%, Dyeing & Printing |
|
| 9%
and Miscellaneous 13%. |
|
|
| The
company continued its policy of accommodating small and medium enterprises
and have been |
|
| quite
selective in picking up customers of repute, creditability and financial
soundness apart from |
|
| evaluating
the intrinsic value of the assets to be leased. |
|
|
| Recoveries: |
|
| Contrary
to the general deteriorating trend in the leasing sector, |
|
| our
company has been able to further restrict infection portfolio |
|
| and
brought significant reduction. The company has demonstrated |
|
| effective
risk management with prudent credit evaluation and |
|
| regular
post disbursement monitoring. To mitigate the risk in the |
|
| present
adverse operating environment, policy of securing |
|
| additional
collateral from all its new clients has been adopted. |
|
| Inspire
of adverse market and economic conditions, the recovery |
|
| rate
improved slightly and remained at 91%. |
|
|
| Resource
Mobilization: |
|
| The
Company has continued its compaign for Long |
|
| Term
Financing from Banks and Financial Institutions |
|
| and
succeeded in getting fresh credit lines of Rs. 55.00 |
|
| million
for 3 years. Further, after having successfully |
|
| qualified
for ADB credit line under Financial Sector |
|
| Intermediation
Loan (FSIL), we have received first re- |
|
| imbursement
of Rs. 40.00 million equivalent to |
|
| US$873,255,
repayable in fifteen (15) years including |
|
| two
years grace period. Proposals for Long Term |
|
| Facilities
are also under active consideration of The |
|
| Bank
of Punjab, Pak-Libya and Allied Bank of Pakistan. |
|
| Four
more proposals of aggregate sum of Rs. 71.75 |
|
| million
(approx.) are also pending with ADB and we are |
|
| hopeful
of getting further substantial amount from them. |
|
| Thus
a vital break through has been achieved by the |
|
| Company
for its future development and progress. |
|
|
| With
respect to funds mobilization under COIs, although due to various deposit
schemes launched by |
|
| different
Banks and Financial Institutions procurement of funds under COIs has been
quite difficult, still |
|
| the
company has secured Long Term and Short Term deposit to the tune of Rs.
16.757 million. |
|
|
| Credit
Rating |
|
| In
recognition of the alround improvements in its performance and asset quality,
the Pakistan Credit |
|
| Rating
Agency (PACRA), while updating the Company's Credit Rating has upgraded Long
Term rating |
|
| from
BB (Double B) to BB+ (Double B Plus) while Short Term rating at B (Single B)
has been maintained, |
|
| which
is appreciable, under the present scenario. |
|
|
|
|
| Future
Outlook: |
|
| The
leasing sector may continue facing challenges like low economic activity,
scarcity of long term |
|
| funding,
reduced margin and mounting competition, delays and even defaults in rental
collection for |
|
| some
time in the future. Our Company is fully alive to the situation and shall
meet the challenges |
|
| squarely.
Further with the release of economic sanctions, relief provided in
electricity surcharge, |
|
| increased
GNP, package offered for revival of industrial sector and endeavours to
augment exports, |
|
| with
expected bumper cash crops like Cotton, Rice and Sugar cane, present adverse
conditions are |
|
| more
likely to improve the existing scenario to the advantage of the leasing
Sector bringing much |
|
| needed
relief to the country's economy to rejuvenate its business and industrial
activity. |
|
|
| Year
2000 Issue: |
|
| The
Company has addressed the year 2000 compliance issue in relation to the
computer hardware |
|
| and
software. Necessary steps have been taken to ensure that the hardware and
software can handle |
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| the
millennium bug. |
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|
|
|
| Acknowledgement: |
|
| I
express my thanks to the Ministry of Finance, Corporate Law Authority, State
Bank of Pakistan, Banks |
|
| and
Financial Institution, our Board of Directors, and customers for their
continued support and valuable |
|
| guidance
for promotion and progress of the Company. I also extend appreciation to my
colleagues and |
|
| all
the staff members for their dedicated services and hardwork which made the
above results possible, |
|
|
|
| DIRECTOR'S
REPORT |
|
|
| Your
Directors endorse the accompanying Chairman Review on the activities of the
Company |
|
| and
feel pleasure in presenting the 7th Annual Report together with the Audited
Accounts |
|
| of
the Company for the period ended June 30, 1998. |
|
|
| Financial
Highlights of the Company are as follows: |
|
|
| Financial
Highlights: |
|
Rupees |
|
| Profit
after tax |
|
20,793,801 |
|
| Unappropriated
profit brought forward |
|
366,629 |
|
| Profit
available for appropriation |
|
21,160,430 |
|
| Appropriations |
|
|
| Transfer
to Statutory Reserve |
|
|
4,158,760 |
|
| Transfer
to General Reserve |
|
|
- |
|
| Transfer
to Contingencies Reserve |
|
|
96,523 |
|
| Proposed
dividend @ 20% |
|
|
|
16,000,000 |
|
|
|
|
|
|
---------- |
|
|
|
|
|
|
20,255,283 |
|
|
|
|
|
|
---------- |
|
| Unappropriated
Profit Carried Forward |
|
905,147 |
|
|
|
|
|
|
========== |
|
|
| Auditors: |
|
| The
present auditors, M/s Rahim Iqbal Rafiq and Company, Chartered Accountants,
retire |
|
| and
being eligible offer themselves for reappointment. |
|
|
| Pattern
of Shareholding: |
|
| Pattern
of shareholding is annexed. |
|
|
|
|
For and on behalf of the Board |
|
|
|
|
|
|
|
|
|
Sheikh Manzoor Elahi |
|
| Dated:
December 10, 1998 |
|
Chief Executive |
|
|
|
| AUDITOR'S
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of English Leasing Limited as at June
30,1998 |
|
| and
the related Profit and Loss Account and Statement of Changes in Financial
Position together |
|
| with
the notes forming part thereof, for the year then ended and we state that we
have obtained |
|
| all
the information and explanations which to the best of our knowledge and
belief were necessary |
|
| for
the purposes of our audit and, after due verification thereof, we report
that: |
|
|
| (a)
in our opinion, proper books of account have been kept by the Company as
required by |
|
| the
Companies ordinance, 1984; |
|
|
|
|
| (b)
in our opinion: |
|
|
|
|
| (i)
the balance Sheet and Profit and Loss Account together with the notes thereon |
|
| have
been drawn up in conformity with the Companies Ordinance, 1984, and are |
|
| in
agreement with the books of account and are further in accordance with the |
|
| accounting
policies consistently applied; |
|
|
| (ii)
the expenditure incurred during the year was for the purpose of the company's |
|
| business;
and |
|
|
| (iii)
the business conducted, investments made and 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 and Profit and Loss Account and the Statement of
Changes |
|
| in
Financial Position, together with the notes forming part thereof, give the
information |
|
| required
by the Companies Ordinance, 1984 in the manner so required and respectively |
|
| give
a true and fair view of the state of the Company's affairs as at June 30,
1998; and |
|
| of
the profit and the changes in Financial Position for the year then ended; and |
|
|
| (d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, |
|
| 1980. |
|
|
|
| (e)
Without qualifying our opinion, we draw attention to Note 13.2 whereby long
term |
|
| investment
are carried at cost and no provision has been made for the decline by Rs. |
|
| 16.609
million market value of these investments. |
|
|
| Karachi: |
|
|
Rahim Iqbal Rafiq & Co |
|
| Dated:
December 02, 1998 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1998 |
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
|
|
|
| Authorised |
|
|
|
| 50,000,000
Ordinary shares of Rs.10 each |
|
500,000,000 |
500,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid up |
|
|
| 8,000,000
Ordinary shares of |
|
|
| Rs.10
each fully paid in cash |
|
|
80,000,000 |
80,000,000 |
|
| Capital
reserves |
|
3 |
18,029,277 |
13,870,517 |
|
| Revenue
reserves |
|
4 |
26,980,260 |
26,883,737 |
|
| Unappropriated
profit |
|
|
905,147 |
366,629 |
|
|
|
|
---------- |
---------- |
|
|
|
|
125,914,684 |
21,120,883 |
|
|
|
|
|
|
| LONG
TERM LOANS |
|
5 |
41,927,005 |
19,036,259 |
|
| OBLIGATIONS
UNDER FINANCE LEASE |
|
6 |
2,890,903 |
889,495 |
|
| LONG
TERM DEPOSITS |
|
7 |
24,913,582 |
23,893,508 |
|
| LONG
TERM CERTIFICATES OF INVESTMENT |
8 |
12,282,344 |
19,226,702 |
|
|
|
|
|
| DEFERRED
LIABILITIES |
|
|
|
| Gratuity |
|
259,991 |
109,800 |
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
|
|
| Current
portion of obligations |
|
|
| under
assets subject to lease finance |
|
600,655 |
246,707 |
|
| Current
maturity of long term liabilities |
|
42,068,607 |
40,780,582 |
|
| Short
term finances - secured |
|
9 |
5,000,000 |
4,217,693 |
|
| Short
term certificates of investment |
8 |
4,475,000 |
11,500,000 |
|
| Accrued
and other liabilities |
|
10 |
6,770,458 |
7,840,465 |
|
| Taxation |
|
|
108,255 |
642,307 |
|
| Unclaimed
dividend |
|
|
255,513 |
263,339 |
|
| Proposed
dividend |
|
|
16,000,000 |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
75,278,488 |
65,491,093 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
283,466,997 |
249,767,740 |
|
|
|
|
|
========== |
========== |
|
|
| TANGIBLE
FIXED ASSETS |
|
11 |
8,669,673 |
7,488,941 |
|
| NET
INVESTMENT IN LEASES |
|
12 |
152,346,487 |
109,393,223 |
|
| LONG
TERM INVESTMENTS |
|
13 |
18,310,875 |
18,310,875 |
|
| LONG
TERM DEPOSITS AND DEFERRED COST |
14 |
577,155 |
248,910 |
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Current
portion of net investment in leases |
15 |
71,666,492 |
82,013,071 |
|
| Investment
in quoted shares against |
|
|
| sale
purchase contract |
|
16 |
4,107,022 |
5,239,931 |
|
|
|
|
| Short
term investments |
|
17 |
386,285 |
884,250 |
|
|
|
|
| Advances,
prepayments and |
|
18 |
14,753,820 |
24,531,567 |
|
| other
receivables |
|
|
|
|
|
|
| Cash
and bank balances |
|
|
19 |
12,649,188 |
1,656,972 |
|
|
|
|
---------- |
---------- |
|
|
|
|
103,562,807 |
114,325,791 |
|
|
|
---------- |
---------- |
|
|
|
|
283,466,997 |
249,767,740 |
|
|
|
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these financial statements. |
|
|
|
Chief Executive |
|
Director |
|
|
|
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 1998 |
|
|
|
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
| REVENUE |
|
|
|
|
|
|
| Income
from lease operations |
|
48,609,552 |
43,186,416 |
|
| Gain
on sale of securities |
|
1,094,018 |
844,782 |
|
| Other income |
|
|
21 |
2,070,200 |
1,215,679 |
|
|
|
---------- |
---------- |
|
|
|
51,773,770 |
45,246,877 |
|
|
|
|
| EXPENDITURE |
|
|
|
| Financial
and bank charges |
|
22 |
18,486,053 |
18,166,751 |
|
| Administrative
and operating expenses |
23 |
10,459,951 |
9,436,594 |
|
| Provision
for doubtful debts |
|
|
- |
2,641,745 |
|
| Provision
for diminution in investment |
|
497,965 |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
29,443,969 |
30,245,090 |
|
|
|
|
---------- |
---------- |
|
| PROFIT
BEFORE TAXATION |
|
|
22,329,801 |
15,001,787 |
|
|
|
|
| - Current year |
|
24 |
849,061 |
581,993 |
|
| - Prior
year |
|
686,939 |
3,074,373 |
|
|
|
---------- |
---------- |
|
|
|
1,536,000 |
3,656,366 |
|
|
|
---------- |
---------- |
|
| PROFIT
AFTER TAXATION |
|
20,793,801 |
11,345,421 |
|
| UNAPPROPRIATED
PROFIT BROUGHT FORWARD |
|
366,629 |
290,292 |
|
|
|
|
---------- |
---------- |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
21,160,430 |
11,635,713 |
|
|
|
|
|
| APPROPRIATIONS |
|
|
|
| Transfer
to statutory reserve |
|
4,158,760 |
2,269,084 |
|
| Transfer
to general reserve |
|
- |
9,000,000 |
|
| Transfer
to contingencies reserve |
|
96,523 |
- |
|
| Proposed
dividend @ 20%(1997: NIL) |
|
16,000,000 |
- |
|
|
|
---------- |
---------- |
|
|
|
20,255,283 |
11,269,084 |
|
|
|
---------- |
---------- |
|
| UNAPPROPRIATED
PROFIT CARRIED FORWARD |
|
905,147 |
366,629 |
|
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these financial statements. |
|
|
|
Chief Executive |
|
|
Director |
|
|
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| FOR
THE YEAR ENDED JUNE 30,1998 |
|
|
|
|
1997 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
|
| Profit
for the year |
|
22,329,801 |
15,001,787 |
|
| Acid:
Adjustment to reconcile profit to |
|
|
|
| net
cash provided by operating activities |
|
|
|
| Depreciation
and amortization |
|
14,072,251 |
1,469,562 |
|
| Provision
for doubtful debts |
|
- |
2,641,745 |
|
| Provision
for diminution of investment |
|
497,965 |
- |
|
| Provision
for Gratuity |
|
|
|
1,501,911 |
109,800 |
|
|
|
|
|
---------- |
---------- |
|
| Operating
profit before working capital changes |
|
24,385,182 |
19,222,894 |
|
|
|
|
| Decrease/(Increase)
in current assets |
|
10,910,656 |
(12,637,694 |
|
| (Decrease)/Increase
in current liabilities |
|
(7,814,270) |
(26,870,362) |
|
|
|
---------- |
---------- |
|
| Net
cash from operating activities before income tax |
27,481,568 |
(20,285,162) |
|
| Income
tax paid |
|
(2,070,052) |
(3,494,466) |
|
|
|
---------- |
---------- |
|
| Net
cash inflow/(outflow) from operating activities |
25,411,516 |
(23,779,628) |
|
|
|
|
| Cash
flows from investing activities |
|
|
|
|
|
| Investment
in leases - net |
|
(32,606,685) |
25,138,794 |
|
| Long
term investment |
|
- |
(1,000,000) |
|
| Capital
expenditure |
|
(2,587,957) |
(4,017,243) |
|
| Advance
for Capital Expenditure |
|
- |
1,857,000 |
|
|
|
---------- |
---------- |
|
| Net
cash used in investing activities |
|
(35,194,642) |
21,978,551 |
|
|
|
|
|
| Cash
flows from financing activities |
|
|
| Long
term loans |
|
|
|
29,129,114 |
5,700,517 |
|
| Proceeds
from lease obligations |
|
|
23,553,561 |
1,136,202 |
|
| Certificates
of Investment |
|
|
(6,944,358) |
6,560,397 |
|
| Deposits
from lessees |
|
|
|
(3,930,269) |
(1,812,209) |
|
| Long
term deposits and deferred cost |
|
(328,245) |
(118,555) |
|
| Payment
of dividend |
|
|
|
(7,826) |
(13,873,790) |
|
|
|
|
|
---------- |
---------- |
|
| Net
cash (used)/generated from financing activities |
20,273,772 |
(2,407,438) |
|
|
|
|
|
|
|
| Net
increase/(decrease) in cash |
|
|
10,992,216 |
(4,208,513) |
|
| Cash
and bank balances at beginning of the year |
|
1,656,972 |
5,865,485 |
|
|
|
---------- |
---------- |
|
| Cash
and bank balances at the end of the year |
|
12,649,188 |
1,656,972 |
|
|
|
========== |
========== |
|
|
|
Chief Executive |
|
|
Director |
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED JUNE 30, 1998 |
|
|
| 1.
THE COMPANY AND ITS ACTIVITIES |
|
| English
Leasing Limited is a Public Limited Company incorporated in Pakistan and its
shares |
|
| are
quoted on the Stock Exchanges of Pakistan. The company is mainly engaged in
the |
|
| business
of Leasing. |
|
|
| 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
Accounting convention |
|
| These
accounts have been prepared under the 'historical cost convention'. |
|
|
| 2.2
Employee's provident fund and gratuity |
|
| The
company is in the process of establishing a provident fund scheme covering
all its |
|
| permanent
employees and working directors. Equal monthly contributions are made |
|
| both
by the company and employees @ 10% of the basic salaries to the fund. |
|
|
| The
Company operates an unfunded gratuity covering all its employees. Provision
is |
|
| made
annually to cover the liability under the scheme. |
|
|
| 2.3
Tangible operating fixed assets and depreciation. |
|
| Tangible
operating fixed assets are stated at cost less accumulated depreciation. Cost |
|
| of
these assets consist of historical cost and directly attributable cost of
bringing the |
|
| assets
to working conditions. |
|
|
| Depreciation
is charged to income applying the reducing balance method to write off the |
|
| cost
over their expected remaining useful life. Full year's depreciation is
charged on |
|
| additions,
while no depreciation is charged on deletion during the year. |
|
|
| Repairs
and maintenance cost are expensed out as and when incurred, however, major |
|
| betterment's
are capitalized. |
|
|
| Gains
and losses on disposal of assets, if any, are included in income currently. |
|
|
| 2.4
Investments |
|
| Long
term investments are stated at cost, provision for diminution in value of
investment |
|
| is
made, if considered permanent. |
|
| Short
term investment are stated at lower of cost and market value. |
|
|
| 2.5
Deferred cost |
|
| Deferred
cost is amortized over a period of 5 (Five) years from the year of
incurrance. |
|
|
| 2.6 Taxation |
|
| The
charge for the current taxation is based on taxable income at the current tax
rates |
|
| after
taking into account the tax credits and rebates available, if any. Deferred
tax is |
|
| accounted
for by using the liability method on all major timing differences excluding
tax |
|
| effect
on those timing differences which are not likely to reverse in the
foreseeable |
|
| future.
As a matter of prudence, deferred tax debits are not accounted for. |
|
|
| 2.7
Revenue Recognition |
|
| The
company follows the "Finance Method" to recognize the income on
lease i.e. the excess |
|
| of
aggregate lease rentals and the residual value over the cost of leased assets
is deferred |
|
| and
then amortized to income over the lease term by applying the annuity method
to produce |
|
| a
constant rate of return on the net investment in the lease. |
|
|
| Income
on bank accounts, loans and advances is recognized on a time proportion basis |
|
| taking
into account the principal/net investment outstanding and applicable rate of
markup/profit |
|
| thereon. |
|
|
| Income
from fees, commission, commitment charges, term deposits and investment, FIBs |
|
| etc.;
is recognized as and when received. |
|
|
| Dividend
income is recognised at the time of closure of share Transfer books of the
company |
|
| declaring
the dividend. |
|
|
| 2.8
Provision for Doubtful Debts |
|
| Provision
for doubtful debt is made/adjusted at the year end after review of
outstanding lease |
|
| and
advances portfolio on the basis of State Bank of Pakistan prudential
regulations as |
|
| applies
to leasing companies. |
|
|
|
|
1998 |
1997 |
|
|
Rupees |
Rupees |
|
| 3.
CAPITAL RESERVES |
|
|
|
|
|
|
| Statutory
reserve |
|
|
|
| Opening
balance |
|
|
|
13,870,517 |
11,601,433 |
|
| Add:
Appropriated from profit |
|
|
4,158,760 |
2,269,084 |
|
|
|
|
|
---------- |
---------- |
|
| Closing
balance |
|
|
|
18,029,277 |
13,870,517 |
|
|
|
|
|
========== |
========== |
|
|
| Statutory
reserve has been created in pursuance of NBFIs regulations, Whereby every
NBFI |
|
| is
required to create reserve fund with an amount not less than 20% of its after
tax profit till |
|
| such
time the reserve equals the amount of paid up capital, thereafter, 5% of
Profit after Tax |
|
| will
be credited to this reserve. |
|
|
| This
reserve is not considered as free reserve for distribution of dividend. |
|
|
| 4.
REVENUE RESERVES |
|
|
|
|
General |
Contingencies |
Rupees |
Rupees |
|
|
|
|
1998 |
1997 |
|
|
|
|
| Opening
Balance |
|
22,500,000 |
4,383,737 |
26,883,737 |
17,883,737 |
|
| Movement
during the period |
|
| Add:
Appropriated from profit |
- |
96,523 |
96,523 |
9,000,000 |
|
|
|
----------------------------------------------- |
|
| Closing
Balance |
|
22,500,000 |
4,480,260 |
26,980,260 |
26,883,737 |
|
|
|
=============================================== |
|
|
| 4.1
Contingency reserve has been created to meet any potential lease losses on
lease |
|
| portfolio
that can be reasonably anticipated. |
|
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
| 5.
LONG TERM LOANS |
|
|
|
|
|
|
| Muslim
Commercial Bank Ltd. |
|
(5.2) |
9,288,554 |
9,900,000 |
|
| Saudi
Pak Industrial & Agricultural |
|
|
|
| Investment
Company (Pvt) Ltd. |
|
(5.3) |
1,536,259 |
3,264,250 |
|
| First
Allied Bank Modaraba |
|
(5.4) |
40,000,000 |
28,333,335 |
|
| Allied
Bank of Pakistan Limited |
|
(5.5) |
20,000,000 |
1,731,404 |
|
| Prudential
Commercial Bank Ltd. |
|
(5.6) |
2,500,000 |
5,000,000 |
|
| Pak
Libya Holding Co. (Pvt) Ltd |
|
(5.7) |
4,033,290 |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
77,358,103 |
48,228,989 |
|
| Less:
Current maturity |
|
|
35,431,098 |
29,192,730 |
|
|
|
|
---------- |
---------- |
|
|
|
|
41,927,005 |
19,036,259 |
|
|
|
|
========== |
========== |
|
|
| 5.1
All the above loans have been obtained for financing lease operations of the
company and are secured |
|
| by
pari passu floating charge on the present and future leased assets,
hypothecation of movable assets, |
|
| demand
promissory notes and personal guarantees of the directors. Muslim Commercial
Bank Limited loan |
|
| is
further secured by assignment of lease agreements/rentals. |
|
|
| 5.2
Loan from Muslim Commercial Bank Ltd, carries mark-up rate of 17.5% p.a. on
reducing balances and is |
|
| repayable
in 10 equal half yearly installments commenced from June 27,1993 while
mark-up is payable |
|
| quarterly. |
|
|
|
| 5.3
Loans from Saudi Pak Industrial & Agricultural Investment Co. (Pvt) Ltd.
carries mark-up rate of 20 % p.a. |
|
| on
reducing balance and is repayable in 12 quarterly installment's (Principal
and Mark-up) commenced from |
|
| June
20,1996. |
|
|
|
|
|
|
|
|
| 5.4
This represent long term Mushraika finance from first Allied Bank Modaraba
carries mark-up rate of 21% |
|
| and
23% p.a. on reducing balance and is repayable in 12 equal half yearly
installments commenced from |
|
| November
18, 1996 and December 29,1997 whereas mark-up is payable on quarterly basis. |
|
|
|
|
|
| 5.5
Loan from Allied Bank of Pakistan Ltd, carries mark-up rate 19% p.a on
reducing balance, the principal and |
|
| mark-up
is repayable in 11 installments commencing from June 30, 1998 on quarterly
basis. |
|
|
|
|
| 5.6
Loan from Prudential Commercial Bank Limited is secured against first
floating charge on companies lease |
|
| assets,
receivables and personal guarantees of directors ranking pari passu with
other creditors. This |
|
| facility
carries mark-up @ paisa 55 per thousand per day on reducing balance and is
repayable in 12 |
|
| quarterly
installments commencing from August 15,1996. |
|
|
|
|
| 5.7
This represent loan from Pak Libya Holding Co. (Pvt.) Limited. It carries
mark-up @22% per annum on |
|
| reducing
balance and is repayable in 12 equal quarterly installments commenced from
October 25, 1997. |
|
|
|
|
| 6.
OBLIGATIONS UNDER FINANCE LEASE |
|
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Balance
of obligation under finance lease |
|
3,491,558 |
1,136,202 |
|
| Less:
Current portion shown under current liabilities |
600,655 |
246,707 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
2,890,903 |
889,495 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| The
obligations under finance lease are reported at aggregate of minimum lease
payments, implicitly |
|
| discounted
by using the rate of 22%. The future payments due are as follows: |
|
|
|
|
| Year
ended June 30, |
|
|
|
Rupees |
Rupees |
|
| 1998 |
|
|
|
600,655 |
246,707 |
|
| 1999 |
|
|
|
719,660 |
307,219 |
|
| 2000 |
|
|
|
612,872 |
326,581 |
|
| 2001 |
|
|
|
727,911 |
120,152 |
|
| 2002 |
|
|
|
830,460 |
135,543 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
3,491,558 |
1,136,202 |
|
|
|
========== |
========== |
|
|
|
|
|
|
1998 |
1997 |
|
|
Rupees |
Rupees |
|
| 7.
LONG TERM DEPOSITS |
|
|
|
|
|
|
| Security
deposit on leases |
|
|
31,551,091 |
35,481,360 |
|
| Less:
Repayable/adjustable within 12 months |
|
6,637,509 |
11,587,852 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
24,913,582 |
23,893,508 |
|
|
|
|
|
========== |
========== |
|
|
| These
represent interest free security deposits (Lease Key money) received on lease
contracts and are |
|
| repayable/adjustable
at the expiry of respective lease periods. |
|
|
|
| 8.
LONG TERM CERTIFICATES OF INVESTMENT |
|
|
|
|
1998 |
1997 |
|
|
|
Rupees |
Rupees |
|
|
|
|
|
|
| Preference |
|
|
5,773,602 |
14,894,845 |
|
| Rapid growth |
|
|
3,998,742 |
3,331,857 |
|
| Mahana Amdan |
|
|
2,500,000 |
1,000,000 |
|
| Shashmahi
Amadn |
|
|
10,000 |
- |
|
|
|
---------- |
---------- |
|
|
|
12,282,344 |
19,226,702 |
|
|
|
========== |
========== |
|
|
| 8.1
These represent Registered Certificates of Investment (COl's) issued
according to the permission granted |
|
| by
the Government of Pakistan for raising funds directly from the local
resources. These COl's have been |
|
| issued
for maturity period ranging from three months to five years. The return on
COl's is payable on |
|
| uniform
basis ranging from 15% to 19.50% p.a. |
|
|
| 8.2
During the year company has issued COl's to various parties against their
security deposit held against |
|
| leased
assets. |
|
|
|
|
|
|
|
|
1998 |
1997 |
|
|
|
Rupees |
Rupees |
|
| 9.
SHORT TERM FINANCES - SECURED |
|
|
|
| First
Ibrahim Modaraba (9.1) |
|
5,000,000 |
- |
|
| Running
Finance under mark up arrangements (9.2) |
|
- |
4,217,693 |
|
|
|
|
|
---------- |
---------- |
|
|
|
5,000,000 |
4,217,693 |
|
|
|
========== |
========== |
|
|
|
|
| 9.1
Financing has been acquired on Musharika Investment. It is secured against
demand promissory note, |
|
| hypothecation
of book debts and personal guarantees of two directors. These are subject to
profit @ |
|
| 20.25%
per annum. |
|
|
|
|
|
|
|
|
| 9.2
This financing facility was obtained from Allied Bank of Pakistan Limited
under mark -up arrangement. The |
|
| rate
of mark-up applicable to the facility was 19% per annum repayable
periodically and secured against |
|
| pari
passu charge over the leased assets and personal guarantee of Directors. |
|
|
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
|
Rupees |
Rupees |
|
| 10.
ACCRUED AND OTHER LIABILITIES |
|
|
|
| Accrued
mark-up on long term loans |
|
|
1,312,409 |
5,013,296 |
|
| Profit payable on
Certificate of Investments |
|
3,245,512 |
900,237 |
|
| Advance lease rentals |
|
|
61,567 |
159,867 |
|
| Accrued expenses |
|
|
683,515 |
400,903 |
|
| Provident fund |
|
|
635,219 |
211,969 |
|
| Other liabilities |
|
|
832,236 |
1,154,193 |
|
|
|
|
|
---------- |
---------- |
|
|
|
6,770,458 |
7,840,465 |
|
|
|
========== |
========== |
|
|
| 11.
TANGIBLE FIXED ASSETS |
|
|
|
|
|
|
COST |
|
DEPRECIATION |
|
Book value |
|
As on |
|
As on |
As on |
|
As on |
|
Depreciation |
as at |
| Particulars |
|
July 01, |
Additions/ |
June 30, |
July 01, |
Additions/ |
June 30, |
Depreciable |
Rate |
for the |
June 30, |
|
1997 |
(Deletions) |
1998 |
1997 |
(Deletions) |
1998 |
Value |
% |
year |
1998 |
|
| owned |
|
|
| owned
building |
2,794,681 |
- |
2,794,681 |
139,734 |
- |
139,734 |
2,654,947 |
5 |
132,747 |
2,522,200 |
| Furniture
& fixture |
1,050,831 |
- |
1,050,831 |
428,368 |
- |
428,368 |
622,463 |
10 |
62,246 |
560,217 |
| Vehicles |
|
4,267,361 |
2,450 |
3,256,061 |
2,418,441 |
- |
1,704,284 |
1,551,777 |
20 |
310,355 |
1,241,422 |
|
|
|
(1,013,750) |
|
(714,157) |
|
|
|
| Office
equipment |
1,025,880 |
162,750 |
1,188,630 |
348,938 |
- |
348,938 |
839,692 |
10 |
83,969 |
755,723 |
| Air
conditioners |
589,160 |
96,000 |
685,160 |
256,029 |
- |
256,029 |
429,131 |
10 |
42,913 |
386,218 |
| Electric
installations |
193,574 |
- |
193,574 |
78,365 |
- |
78,365 |
115,209 |
10 |
11,521 |
103,688 |
| Leasehold
improvements |
603,184 |
- |
603,184 |
425,297 |
- |
425,297 |
177,887 |
20 |
35,577 |
142,310 |
| Electrical
equipment |
95,300 |
41,350 |
112,250 |
22,038 |
- |
19,638 |
92,612 |
10 |
9,261 |
83,351 |
|
|
(24,400) |
|
(2,400) |
|
|
|
| Leased |
|
|
|
|
| Vehicles |
|
1,232,725 |
2,607,000 |
3,839,725 |
246,545 |
- |
246,545 |
3,593,180 |
20 |
718,636 |
2,874,544 |
|
|
----------------------------------------------------------------------------------------------------------------------- |
| Rupees
- 1998 |
11,852,696 |
1,871,400 |
13,724,096 |
4,363,755 |
(716,557) |
3,647,198 |
10,076,898 |
|
1,407,225 |
8,669,673 |
|
|
====================================================================================================================== |
| Rupees
- 1997 |
7,962,653 |
3,890,043 |
11,852,696 |
3,395,641 |
(127,200) |
3,268,441 |
8,584,255 |
|
1,095,314 |
7,488,941 |
|
====================================================================================================================== |
|
| 11.1
Detail of disposal of operating assets |
|
|
|
|
|
|
Accumulated |
Book |
Sales |
Profit/ |
Mode |
|
| Fixed assets |
|
Cost |
Depreciation |
Value |
Price |
(loss) |
of disposal |
Sold to |
|
|
| Toyota
Crolla |
455,250 |
320,992 |
134,258 |
134,258 |
- |
Negotiation |
Sh. Manzoor
Elahi-Director |
|
|
|
|
|
Lahore. |
|
| Honda Accord |
|
558,500 |
393,165 |
165,335 |
165,335 |
- |
Negotiation |
Sh. Irshad Ahmed-Director |
|
|
|
|
|
Lahore. |
|
| Mobile
Telephone |
24,400 |
2,400 |
22,000 |
22,000 |
- |
Negotiation |
M/s. EFU General
Insurance |
|
|
|
----------------------------------------------------------- |
|
Karachi. |
|
| Total - 1998 |
|
1,038,150 |
716,557 |
321,593 |
321,593 |
- |
|
|
|
=========================================================== |
|
| Total - 1997 |
|
300,000 |
127,200 |
172,800 |
290,000 |
117,200 |
|
|
=========================================================== |
|
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
Rupees |
Rupees |
|
| 12.
NET INVESTMENT IN LEASES |
|
|
|
|
|
|
| Minimum
lease payments receivable |
|
268,386,470 |
223,132,484 |
|
| Add:
Residual value |
|
36,584,412 |
35,481,360 |
|
|
|
---------- |
---------- |
|
|
|
304,970,882 |
258,613,844 |
|
| Less:
Unearned lease income |
|
(76,985,858) |
(63,235,505) |
|
|
|
---------- |
---------- |
|
|
|
227,985,024 |
195,378,339 |
|
|
|
---------- |
---------- |
|
| Less:
Current portion shown under current maturity |
(71,666,492) |
(82,013,071) |
|
| Provision
for doubtful debts |
|
(3,972,045) |
(3,972,045) |
|
|
|
---------- |
---------- |
|
|
|
|
|
(75,638,537) |
(85,985,116) |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
152,346,487 |
109,393,223 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| 13.
LONG TERM INVESTMENTS |
|
|
|
| Quoted: |
|
|
|
|
| Dewan
Salman Fibers Ltd. |
|
|
|
| (78,873
Ordinary shares of Rs.10/-each) |
|
8,845,000 |
8,845,000 |
|
| Pakistan
Synthetics Ltd. |
|
|
|
| (125,000
Ordinary shares of Rs.10/-each) |
|
7,865,875 |
7,865,875 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
16,710,875 |
16,710,875 |
|
| Federal
Investment Bonds |
|
|
1,600,000 |
1,600,000 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
18,310,875 |
18,310,875 |
|
|
|
|
|
---------- |
---------- |
|
| Aggregate
Market Value. |
|
|
3,301,616 |
5,257,755 |
|
|
|
========== |
========== |
|
|
| 13.1
The company's holding does not exceed 10 percent of equity of any investee
company. |
|
|
| 13.2
No provision has been made for diminution in value as it is considered
temporary in the context of |
|
| the
company's intentions to hold these investments on a long term basis. |
|
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| 14.
LONG TERM DEPOSITS AND DEFERENT COST |
|
|
|
|
|
|
|
| Security
deposits for: |
|
|
|
| Lease assets |
|
383,972 |
123,272 |
|
| Rented
premises |
|
172,500 |
109,455 |
|
| Others |
|
20,683 |
16,183 |
|
|
|
---------- |
---------- |
|
|
|
577,155 |
248,910 |
|
| Deferred
cost (Note:14.1) |
|
|
- |
- |
|
|
|
---------- |
---------- |
|
|
|
577,155 |
248,910 |
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
1998 |
1997 |
|
|
|
Rupees |
Rupees |
|
| 14.1
Deferred cost |
|
|
|
|
|
|
| Preliminary
expenses |
|
- |
172,945 |
|
| Share
issue expenses |
|
- |
1,638,389 |
|
| Pre-operating
expenses |
|
- |
1,931,118 |
|
|
|
---------- |
---------- |
|
|
|
- |
3,742,452 |
|
| Less:
Amortized to date |
|
- |
3,742,452 |
|
|
|
---------- |
---------- |
|
|
|
|
- |
- |
|
|
|
|
========== |
========== |
|
|
|
|
| 15.
CURRENT PORTION OF NET INVESTMENT IN LEASES |
|
|
| Current
portion of net investment in lease (Note 12) |
71,666,492 |
82,013,071 |
|
|
|
========== |
========== |
|
|
|
|
|
| 16.
INVESTMENT IN QUOTED SHARES AGAINST |
|
|
| SALE
PURCHASE CONTRACT |
|
|
|
| This
represent investment made in quoted shares against sale/purchase contract. |
|
|
|
|
| 17.
SHORT TERM INVESTMENTS |
|
|
|
| QUOTED |
|
|
|
|
| Fidelity
Investment Bank Ltd. |
|
|
|
| (57,500
Ordinary shares of Rs. 10/-each) |
|
2,871,500 |
2,871,500 |
|
| The
Bank of Punjab |
|
|
|
| (26,000
ordinary shares of Rs. 10/-each) |
|
1,688,250 |
1,688,250 |
|
|
|
---------- |
---------- |
|
|
|
4,559,750 |
4,559,750 |
|
| LESS:
DIMINUTION IN VALUE OF INVESTMENTS |
|
|
| - Opening balance |
|
|
3,675,500 |
3,675,500 |
|
| - Provided during the year |
|
497,965 |
- |
|
|
|
---------- |
---------- |
|
|
|
4,173,465 |
3,675,500 |
|
|
|
---------- |
---------- |
|
|
|
|
386,285 |
884,250 |
|
|
|
|
---------- |
---------- |
|
| Aggregate
Market Value of investments |
|
386,285 |
1,118,490 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
| The
company's holding does not exceeds 10 percent of equity of any investee
company. |
|
|
|
|
|
|
1998 |
1997 |
|
|
|
Rupees |
Rupees |
|
| 18.
ADVANCES PREPAYMENTS AND OTHER |
|
|
|
| RECEIVABLES |
|
|
|
|
|
|
|
| Lease
rentals due from lessees |
|
13,869,581 |
23,112,113 |
|
|
|
|
| Advances: |
|
|
|
|
| -
Employees |
|
|
298,710 |
216,500 |
|
| - Income
tax |
|
|
- |
118,069 |
|
| -
Telephone |
|
|
10,329 |
15,294 |
|
| - Purchase of assets |
|
- |
283,000 |
|
|
|
---------- |
---------- |
|
|
|
309,039 |
632,863 |
|
|
|
|
| Prepayments |
|
|
491,249 |
394,297 |
|
| Profit
on bank deposits |
|
|
64,360 |
65,865 |
|
| Mark
up on shod term advances |
|
- |
284,796 |
|
| Other
receivables |
|
|
19,591 |
41,633 |
|
|
|
---------- |
---------- |
|
|
|
14,753,820 |
24,531,567 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
Rupees |
Rupees |
|
| 19.
CASH AND BANK BALANCES |
|
|
|
| Cash in hand |
|
|
|
|
| Stamps
in hand |
|
574,289 |
137,351 |
|
| Cash
with banks |
|
4,876 |
7,699 |
|
| -
Current account |
|
|
| -
Deposit account |
|
11,370,023 |
811,922 |
|
|
|
700,000 |
700,000 |
|
|
|
---------- |
---------- |
|
|
|
12,649,188 |
1,656,972 |
|
|
|
|
========== |
========== |
|
|
|
|
| 20.
INCOME FROM LEASE OPERATIONS |
|
|
|
|
|
|
| Lease income |
|
47,117,749 |
42,534,036 |
|
| Front
end Fees |
|
1,045,042 |
509,401 |
|
| Documentation
& other fees |
|
446,761 |
142,979 |
|
|
|
---------- |
---------- |
|
|
|
48,609,552 |
43,186,416 |
|
|
|
|
========== |
========== |
|
|
|
|
| 21.
OTHER INCOME |
|
|
|
| Income
from bank deposits |
|
|
|
| Profit/Mark-up
on short term advances |
|
399,056 |
452,947 |
|
| Dividend
income |
|
1,583,677 |
358,196 |
|
| Miscellaneous
income |
|
51,461 |
287,336 |
|
|
|
36,006 |
117,200 |
|
|
|
---------- |
---------- |
|
|
|
2,070,200 |
1,215,679 |
|
|
|
|
========== |
========== |
|
|
|
|
| 22.
FINANCIAL AND BANK CHARGES |
|
|
|
| Mark-up
on long/short term finance |
|
|
13,921,742 |
11,466,698 |
|
| Bank charges |
|
41,928 |
96,112 |
|
| Loan
processing fee |
|
327,070 |
539,085 |
|
| Excise
Duty on loans |
|
45,833 |
357,241 |
|
| Financial
charges on lease liability |
|
312,187 |
85,683 |
|
| Mark-up
on COIs |
|
3,758,139 |
5,621,932 |
|
| Interest
on provident fund |
|
79,154 |
- |
|
|
|
---------- |
---------- |
|
|
|
18,486,053 |
18,166,751 |
|
|
|
========== |
========== |
|
|
|
|
|
| 23.
ADMINISTRATIVE AND OPERATING EXPENSES |
|
|
| Directors'
remuneration |
|
3,137,374 |
2,319,523 |
|
| Staff
salaries and other benefits |
|
1,803,793 |
1,386,408 |
|
| Gratuity |
|
150,191 |
109,800 |
|
| Legal
and professional |
|
502,563 |
501,771 |
|
| Registrar's
services |
|
180,000 |
158,000 |
|
| Rent |
|
585,880 |
556,020 |
|
| Travelling
and conveyance |
|
238,281 |
398,734 |
|
| Postage,
telephone and telex |
|
383,545 |
378,873 |
|
| Electricity,
Water & Gas |
|
202,159 |
208,637 |
|
| Stationery
and other supplies |
|
195,646 |
214,018 |
|
| Vehicles
running |
|
602,764 |
474,756 |
|
| Auditor's
remuneration (Note 23.1) |
|
90,000 |
128,500 |
|
| News
papers & periodicals |
|
10,570 |
7,421 |
|
| Insurance |
|
502,886 |
431,774 |
|
| Entertainment |
|
74,118 |
72,483 |
|
| Repairs
& maintenance |
|
200,424 |
160,669 |
|
| Fees
& subscriptions |
|
103,295 |
423,760 |
|
| Depreciation
(Note 11) |
|
1,407,225 |
1,095,314 |
|
| Amortization
of deferred cost |
|
- |
374,248 |
|
| Advertisement |
|
83,237 |
35,885 |
|
| Donation
(Note 23.2) |
|
6,000 |
- |
|
|
|
---------- |
---------- |
|
|
|
10,459,951 |
9,436,594 |
|
|
|
========== |
========== |
|
|
|
|
|
|
1998 |
1997 |
|
|
|
Rupees |
Rupees |
|
| 23.1
Auditors' Remuneration |
|
|
|
|
|
|
| Audit fee |
|
|
|
40,000 |
40,000 |
|
| Tax
consultancy |
|
|
|
50,000 |
50,000 |
|
| Special
audit fee |
|
|
|
- |
38,500 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
90,000 |
128,500 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
| 23.2
Donation do not include any amount paid to any person or organization in
which the Chief |
|
| Executive,
Director or their spouses have any interest. |
|
|
| 24. TAXATION |
|
|
|
| 24.1
Current year |
|
| This
represents the minimum tax due under section 80(d) of the Income Tax
Ordinance, 1979. |
|
|
| Income
tax assessment of the company has been finalised upto the income year ended
June |
|
| 30,
1997 (assessment year 1997-98). |
|
|
| 24.2
Deferred |
|
| The
liability for deferred tax is not likely to reverse in the foreseeable future
and therefore, no |
|
| provision
for deferred tax has been made in these accounts. |
|
|
| 25.
REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES |
|
|
|
CHIEF EXECUTIVE |
DIRECTORS |
EXECUTIVES |
|
|
|
------------------------------------------------------------------------ |
|
|
|
|
1998 |
1997 |
1998 |
1997 |
1998 |
1997 |
|
|
|
|
------------------------------------------------------------------------ |
|
|
| Managerial
Remuneration |
387,000 |
318,000 |
696,600 |
558,600 |
332,178 |
281,465 |
|
|
| Bonus |
|
60,000 |
46,000 |
108,000 |
78,200 |
37,500 |
32,500 |
|
|
| House
rent & utilities |
342,220 |
198,188 |
632,452 |
372,927 |
196,638 |
133,506 |
|
|
| Personal
staff |
234,780 |
193,200 |
469,560 |
386,400 |
- |
- |
|
|
| Reimbursement
of |
|
|
|
| medical
expenses |
6,562 |
2,715 |
100,948 |
77,633 |
12,821 |
11,352 |
|
|
| Provident
fund |
38,700 |
31,800 |
60,552 |
55,860 |
33,218 |
23,400 |
|
|
|
|
------------------------------------------------------------------------ |
|
|
|
|
1,069,262 |
789,903 |
2,068,112 |
1,529,620 |
612,355 |
482,223 |
|
|
|
|
======================================================================== |
|
|
| No.
of person |
1 |
1 |
2 |
2 |
3 |
2 |
|
|
|
|
| In
addition, the Chief Executive, two Directors and three Executives are
provided with free use |
|
| of
company maintained cars, while Chief Executive and Directors are also
provided with |
|
| reimbursement
of residential telephone bills. |
|
|
| Directors
fee totalling Rs 1,000 (1997: Rs. 1,000/-) was paid to two Directors for
attending two |
|
| Board
meetings (1996:2 Meetings) held during the year. |
|
|
| 26.
OTHER INFORMATION |
|
| The
company has made an assessment of its computer system related to the year
2000 problem |
|
| and
is satisfied that the same is Y2K compliant. |
|
|
| 27. GENERAL |
|
|
| -
Previous year's figures have been reclassified and re-arranged wherever
necessary for the |
|
| purpose
of comparison. |
|
|
|
| - Figures have
been rounded off to the nearest rupee. |
|
|
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
|
|
| PATTERN
OF SHAREHOLDING |
|
| AS
AT JUNE 30, 1998 |
|
|
| Number of |
|
Shareholding |
|
Total |
|
| Shareholders |
From |
|
To |
Shares held |
|
|
| 82 |
1 |
- |
100 |
8,200 |
|
| 757 |
101 |
- |
500 |
356,700 |
|
| 178 |
501 |
- |
1,000 |
173,600 |
|
| 189 |
1,001 |
- |
5,000 |
495,400 |
|
| 35 |
5,001 |
- |
10,000 |
307,600 |
|
| 9 |
10,001 |
- |
15,000 |
110,400 |
|
| 5 |
15,001 |
- |
20,000 |
97,000 |
|
| 1 |
20,001 |
- |
25,000 |
20,500 |
|
| 10 |
25,001 |
- |
30,000 |
289,500 |
|
| 2 |
30,001 |
- |
35,000 |
66,800 |
|
| 4 |
35,001 |
- |
40,000 |
145,600 |
|
| 1 |
40,001 |
- |
45,000 |
45,000 |
|
| 7 |
45,001 |
- |
50,000 |
349,000 |
|
| 3 |
50,001 |
- |
55,000 |
157,600 |
|
| 1 |
60,001 |
- |
65,000 |
63,700 |
|
| 2 |
70,001 |
- |
75,000 |
143,400 |
|
| 2 |
95,001 |
- |
100,000 |
200,000 |
|
| 2 |
145,001 |
- |
150,000 |
300,000 |
|
| 1 |
170,001 |
- |
175,000 |
174,500 |
|
| 1 |
245,001 |
- |
250,000 |
250,000 |
|
| 1 |
285,001 |
- |
290,000 |
287,500 |
|
| 1 |
345,001 |
- |
350,000 |
350,000 |
|
| 1 |
445,001 |
- |
450,000 |
450,000 |
|
| 1 |
480,001 |
- |
485,000 |
480,500 |
|
| 1 |
595,001 |
- |
600,000 |
600,000 |
|
| 1 |
825,001 |
- |
830,000 |
825,700 |
|
| 1 |
1,250,001 |
- |
1,255,000 |
1,251,800 |
|
| ---------- |
|
---------- |
|
| 1,299 |
|
8,000,000 |
|
| ========== |
|
========== |
|
|
|
| S. No. |
Categories of |
Number of |
Total |
Percentage |
|
|
Shareholders |
Shareholders |
Shares Held |
|
|
|
| 1 |
Individual |
|
1,280 |
4,696,300 |
58.70 |
|
| 2 |
Investment Companies |
10 |
1,336,400 |
16.70 |
|
| 3 |
Insurance Companies |
1 |
480,500 |
6.01 |
|
| 4 |
Joint Stock Companies |
2 |
9,300 |
0.12 |
|
| 5 |
Financial Institutions |
5 |
1,476,500 |
18.46 |
|
| 6 |
Modaraba Companies |
1 |
1,000 |
0.01 |
|
|
---------- |
---------- |
---------- |
|
|
1,299 |
8,000,000 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
|
|
