| National Asset Leasing Corporation Limited |
|
|
|
|
|
| Annual
Report 1998 |
|
|
|
| CONTENTS |
|
|
| Company
Information |
|
| Notice
of Meeting |
|
| Directors'
Report |
|
| Auditors'
Report to the Members |
|
| Balance
Sheet |
|
| Profit
and Loss Account |
|
| Statement
of Changes in Financial Position |
|
| Notes
to the Accounts |
|
|
| Pattern
of Share Holding |
|
|
|
| COMPANY
INFORMATION |
|
|
| Chairman |
|
| Dr.
Khalid Iqbal |
|
|
| Chief
Executive/Managing Director |
|
| Shamim
I. Junejo |
|
|
| Directors |
|
| Mohammad
Ashiq Rehmani |
|
| Azhar
Tariq Khan |
|
| Syed
Naveed H. Zaidi |
|
| Rana
M. Abu Obaida |
|
| Sohail Ali |
|
|
| Company
Secretary |
|
| Zafar
A. Badami |
|
|
| Bankers
of the Company |
|
| Crescent
Investment Bank Limited |
|
| Habib
Bank Limited |
|
| Muslim
Commercial Bank Limited |
|
| National
Development Finance Corporation |
|
| National
Bank of Pakistan |
|
| Bank
of Punjab |
|
|
| Auditors |
|
| Ford,
Rhodes, Robson, Morrow |
|
| Chartered
Accountants, |
|
| Finlay
House, I. I. Chundrigar Road, Karachi. |
|
|
| Share
Registrars |
|
| Noble
Computer Services (Private) Limited |
|
| 2nd
Floor, AI-Manzoor Building, |
|
| Dr.
Ziauddin Ahmed Road, Karachi. |
|
|
| Registered
Office |
|
| l-B,
First Floor, All Plaza, |
|
| Khayaban-e-Quaid-e-Azam, |
|
| Blue
Area, Islamabad |
|
| Phones:
270626 & 822513 |
|
| Fax:
(92-51) 272506 |
|
|
| Head Office |
|
| 9th
Floor, Lakson Square, Building No. 1, |
|
| 265
R. A. Lines, Karachi. |
|
| Phones:
5687412, 5687419, 5689580 & 5682027 |
|
| Fax:
(92-21) 5684259 |
|
| Telex:
20538 ASSET PK. |
|
| E-mail:
natlease@khi.fascom.com |
|
|
|
|
| NOTICE
OF MEETING |
|
|
| Notice
is hereby given that the Eighth Annual General Meeting of National Asset
Leasing |
|
| Corporation
Limited will be held at l-B, First Floor, Ali Plaza, Khayaban-e-Quaid-e-Azam,
Blue |
|
| Area,
Islamabad on Tuesday, December 29, 1998 at 11.00 a.m. to transact the
following business: |
|
|
| ORDINARY
BUSINESS |
|
| 1.
To confirm the Minutes of the Seventh Annual General Meeting held on December
29, 1997. |
|
|
| 2.
To receive, consider and adopt the Audited Accounts of the Company together
with |
|
| Directors'
Report thereon for the year ended June 30, 1998. |
|
|
| 3.
To appoint Auditors and to fix their remuneration for the year 1998-99. M/s.
Ford, Rhodes, |
|
| Robson,
Morrow, Chartered Accountants, the present Auditors, retire and being
eligible, |
|
| offer
themselves for reappointment. |
|
|
| 4.
To transact any other business with the permission of the Chair. |
|
|
|
By order of the Board |
|
|
|
|
|
Zafar A. Badami |
|
| Islamabad:
December 05, 1998 |
|
Company .Secretary |
|
|
| NOTES: |
|
| 1.
The Share Transfer Book of the Company will remain closed from December 23 to
December |
|
| 29,
1.998 (both days inclusive). |
|
|
| 2.
A member entitled to attend and vote at the meeting may appoint another
member |
|
| as
his/her proxy to attend and vote on his/her behalf. Proxies in order to be
effective |
|
| must
be received at the Company's Registered Office at Islamabad at-least 48 hours |
|
| before
the time of holding the meeting. |
|
|
| 3.
The members are requested to please notify to the Company any change in their
addresses. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
Board of Directors of National Asset Leasing Corporation Limited is pleased
to present the |
|
| Annual
Report of the Company for the year ended June 30, 1998. |
|
|
| Financial
Results: |
|
|
|
1998 |
1997 |
|
|
|
Rupees |
Rupees |
|
|
|
|
| Gross
Revenue |
|
|
43,578,270 |
42,200,174 |
|
| Expenditure |
|
|
37,064,553 |
39,792,525 |
|
|
|
---------- |
---------- |
|
| Net
profit before provisions |
|
|
6,513,817 |
2,407,649 |
|
| Provisions |
|
|
(500,000) |
(3, 961,412) |
|
|
|
---------- |
---------- |
|
| Net
(Loss)/Profit |
|
|
6,013,817 |
(1,553,763) |
|
|
|
========== |
========== |
|
|
| The
financial results for the year ended June 30, 1998 show an improvement over
previous |
|
| year's
performance, yet it does not reflect the true picture due to the economic
turmoil faced |
|
| by
the country in general and the industry in particular. The leasing business
is directly related |
|
| to
the performance of the business and industry which has gone through adverse
conditions. |
|
| The
economic experts have been regularly writing and giving fair opinion about
the economic |
|
| situation
and does not need any further explanation and elaboration to defend the
results |
|
| of
your leasing company. |
|
|
| Nevertheless,
the management of the company adopted prudent policies which enable the |
|
| company
not only to achieve a net profit of Rs. 6,013,817/-, an increase of Rs.
7,567,580/- |
|
| over
previous year, but also controlling the level of provisions. |
|
|
| Business
Prospects |
|
| The
business prospects of the company depends on availability of long term funds
on competitive |
|
| rates.
Negotiations are under way for procuring credit from foreign and local
lending agencies. |
|
| The
company is also preparing to launch an aggressive marketing of Certificate of
Investment |
|
| at
reasonable profit rates. The management of the company is confident that it
has the |
|
| professional
capability to manage profitable business operations by broadening the funding |
|
| base
through various means and enchancing professional techniques to meet the
challenges |
|
| to
achieve the desired results. |
|
|
| Auditors |
|
| The
auditors, M/s. Ford, Rhodes, Robson, Morrow, Chartered Accountants, retire
and 'offer |
|
| themselves
for re-appointment. |
|
|
|
|
| Pattern
of Shareholding |
|
|
| The
pattern of shareholding as on June 30, 1998 is annexed. |
|
|
| Acknowledgement |
|
| The
board likes to place on record the commitment, dedication and hard work of
all staff |
|
| members
and sincere thanks to our clients, financial institutions and shareholders.
We would |
|
| also
like to thank Corporate Law Authority and State Bank of Pakistan for their
support and |
|
| guidance.
We trust and pray for Allah's blessings, mercy and guidance for achieving
desired |
|
| results
in years to come (Ameen) |
|
|
|
|
|
Dr. Khalid Iqbal |
|
|
| Islamabad:
December 2, 1998 |
|
Chairman |
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of NATIONAL ASSET LEASING CORPORATION |
|
| LIMITED
as at June 30, 1998 and the related profit and loss account and statement of
changes |
|
| in
financial position (cash flow statement), together with the notes forming
part thereof, for |
|
| the
year then ended and we state that we have obtained oil the information and
explanations |
|
| which
to the best of our knowledge and belief were necessary for the purposes of
our audit |
|
| and,
after due verification thereof, we report that: |
|
|
| (a)
in our opinion, proper books of account have been kept by the company as
required |
|
| by
the Companies Ordinance, 1984; |
|
|
| (b)
in our opinion: |
|
|
| (i)
the balance sheet and profit and loss account together with the notes thereon
have |
|
| been
drawn up in conformity with the Companies Ordinance, 1984, and are in |
|
| agreement
with the books of account and are further in accordance with accounting |
|
| policies
consistently applied; |
|
|
| (ii)
the expenditure incurred during the year was for the purpose of the company's |
|
| business;
and |
|
|
| (iii)
the business conducted, investments made and the expenditure incurred during |
|
| the
year were in accordance with the objects of the company; |
|
|
| (c)
in our opinion and to the best of our information and according to the
explanations given |
|
| to
us, the balance sheet, profit and loss account and the statement of changes
in financial |
|
| position
(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 the changes in financial position (cash flows) for
the year |
|
| then
ended; and |
|
|
| (d)
in our opinion, no Zakat was deductible at source, under Zakat and Ushr
Ordinance, 1980. |
|
|
|
|
|
Sd/- |
|
|
|
|
FORD, RHODES, ROBSON, MORROW |
|
| Karachi:
December 2, 1998 |
|
Chartered Accountants |
|
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1998 |
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
|
|
|
| Authorised |
|
|
|
| 10,000,000
ordinary shares of |
|
|
| Rs. 10 each |
|
|
|
100,000,000 |
100,000,000 |
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up |
|
|
| 9,536,800
(1997: 9,536,800) ordinary |
|
|
| shares
of Rs. 10 each fully paid in cash |
|
95,368,000 |
95,368,000 |
|
|
|
|
| Reserves |
|
|
|
| Reserve
fund (capital reserve) |
|
3 |
9,828,840 |
8,848,215 |
|
| Unappropriated
profit |
|
|
10,104,876 |
6,182,377 |
|
|
|
|
---------- |
---------- |
|
|
|
|
19,933,716 |
15,030,592 |
|
|
|
|
---------- |
---------- |
|
|
|
|
115,301,716 |
110,398,592 |
|
|
|
|
|
|
| REDEEMABLE
CAPITAL-SECURED |
|
4 |
41,464,385 |
34,374,511 |
|
| LONG
TERM FINANCE-SECURED |
|
5 |
20,000,000 |
26,716,001 |
|
| OBLIGATION
UNDER FINANCE LEASES |
|
6 |
585,498 |
942,073 |
|
| LEASE
KEY MONEY |
|
7 |
15,989,396 |
19,160,216 |
|
| CERTIFICATES
OF INVESTMENT |
|
8 |
2,100,000 |
7,800,000 |
|
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
| Current
portion of redeemable capital |
4 |
9,968,949 |
9,213,069 |
|
| Current
portion of long term finance |
5 |
23,996,868 |
24,612,017 |
|
| Current
portion of obligation under |
|
|
|
| finance
leases |
|
6 |
920,772 |
571,925 |
|
| Current
portion of lease key money |
|
|
3,907,045 |
5,553,936 |
|
| Certificates
of investment |
|
8 |
9,000,000 |
8,500,000 |
|
| Short
term musharika fund and finance |
9 |
17,207,628 |
24,656,371 |
|
| Book
overdraft with banks/DFI |
|
|
1,517,435 |
8,321,502 |
|
| Accrued
and other liabilities |
|
10 |
31,521,021 |
25,216,663 |
|
|
|
|
---------- |
---------- |
|
|
|
|
98,039,718 |
106,645,483 |
|
| COMMITMENTS
AND CONTINGENCIES |
|
11 |
---------- |
---------- |
|
|
|
|
293,480,713 |
306,036,876 |
|
|
|
|
========== |
========== |
|
|
|
|
| TANGIBLE
FIXED ASSETS |
|
12 |
6,245,715 |
6,449,932 |
|
| NET
INVESTMENT IN LEASE FINANCE |
|
13 |
150,587,507 |
136,956,655 |
|
| LONG
TERM INVESTMENTS |
|
14 |
43,08.1,048 |
43,581,048 |
|
| LONG
TERM DEPOSITS, PREPAYMENTS |
|
|
|
| AND
DEFERRED COSTS |
|
15 |
477,750 |
1,099,100 |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
| Current
portion of net investment |
|
|
|
| in
lease finance |
|
13 |
74,883,050 |
107,628,486 |
|
|
|
|
|
| Advances,
deposits, prepayments |
|
|
|
| and
other receivables |
|
16 |
3,750,980 |
4,602,267 |
|
|
|
|
| Cash
and bank balances |
|
17 |
14,454,663 |
5,719,388 |
|
|
|
|
---------- |
---------- |
|
|
|
|
93,088,693 |
117,950,141 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
293,480,713 |
306,036,876 |
|
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
| DR.
KHALID IQBAL |
|
SHAMIM I. JUNEJO |
|
M.A. REHMANI |
|
| Chairman |
|
Chief Executive |
|
Director |
|
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 1998 |
|
|
|
|
|
|
|
|
1998 |
1997 |
|
| REVENUE |
|
Note |
Rupees |
Rupees |
|
|
|
|
| Income
from leasing operations |
|
18 |
41,117,507 |
40,627,995 |
|
| Income
from Government securities |
|
|
(359,709) |
892,154 |
|
| Dividend
income |
|
|
293,971 |
285,742 |
|
| Income
from bank deposits |
|
|
2,519,185 |
364,283 |
|
| Profit
on disposal of fixed assets |
|
|
416 |
- |
|
| Other
income |
|
|
7,000 |
30,000 |
|
|
|
|
---------- |
---------- |
|
|
|
|
43,578,370 |
42,200,174 |
|
|
|
|
|
| EXPENDITURE |
|
|
|
|
| Return
and .financial charges |
|
19 |
25,106,462 |
28,233,403 |
|
| Administrative
and operating expenses |
20 |
11,958,091 |
11,505,429 |
|
| Amortisation
of deferred costs |
|
|
- |
53,693 |
|
|
|
|
---------- |
---------- |
|
|
|
|
37,064,553 |
39,792,525 |
|
|
|
|
---------- |
---------- |
|
| PROFIT
BEFORE PROVISIONS |
|
|
6,513,817 |
2,407,649 |
|
| PROVISIONS |
|
|
|
| Provision
for doubtful debts |
|
|
- |
3,461,412 |
|
| Provision
for diminution in value of investment |
|
500,000 |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
500,000 |
3, 461,412 |
|
|
|
|
---------- |
---------- |
|
| PROFIT/(LOSS)
BEFORE TAXATION |
|
|
6,013,817 |
(1,053,763) |
|
| TAXATION |
|
21 |
|
|
| -
current year |
|
|
500,000 |
500,000 |
|
| -
prior years |
|
610,693 |
- |
|
|
|
---------- |
---------- |
|
|
|
1,110,693 |
500,000 |
|
|
|
---------- |
---------- |
|
| PROFIT/(LOSS)
AFTER TAXATION |
|
4,903,124 |
(1,553,763) |
|
| UNAPPROPRIATED
PROFIT BROUGHT FORWARD |
|
6,182,377 |
7,736,140 |
|
|
|
|
---------- |
---------- |
|
| APPROPRIATION |
|
11,085,501 |
6, 182,377 |
|
| Transfer
to reserve fund |
|
980,625 |
- |
|
|
|
---------- |
---------- |
|
| UNAPPROPRIATED
PROFIT CARRIED FORWARD |
|
10,104,876 |
6,182,377 |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts |
|
|
| DR.
KHALID IQBAL |
SHAMIM I. JUNEJO |
|
M.A. REHMANI |
|
| Chairman |
|
Chief Executive |
|
Director |
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| (CASH
FLOW STATEMENT) |
|
|
|
| FOR
THE YEAR ENDED JUNE 30, 1998 |
|
|
|
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
|
| Net
profit/(loss) for the year before tax |
|
6,013,817 |
(1,053,763) |
|
| Adjustment
for: |
|
|
|
|
| Depreciation
on fixed assets |
|
|
1,467,485 |
1,337,949 |
|
| Amortisation
of deferred costs |
|
|
- |
53,693 |
|
| Income
from long term investments |
|
359,709 |
(892,154) |
|
| Gain
on sale of fixed assets |
|
(416) |
- |
|
| Provision
for doubtful debts |
|
|
- |
3,461,412 |
|
| Provision
for diminution in value of investment |
|
500,000 |
- |
|
| Return
and financial charges on borrowings |
|
21,514,827 |
21,996,236 |
|
|
|
---------- |
---------- |
|
|
|
|
|
23,841,605 |
25,957,136 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
29,855,422 |
24,903,373 |
|
| Decrease
in advances, prepayments and other |
|
|
| receivables |
|
935, 282 |
14,239,739 |
|
| Increase
in accrued other liabilities |
|
6,304,358 |
9,828,936 |
|
| Payment
of income tax |
|
(509,877) |
(451,360) |
|
| Increase
in long term deposits |
|
(63,450) |
(2,197) |
|
| Decrease
in lease key money |
|
(4,817,711) |
(367,665) |
|
|
|
---------- |
---------- |
|
|
|
1,848,602 |
23,247,453 |
|
|
|
---------- |
---------- |
|
| Net
cash generated in operating activities |
|
31,704,024 |
48,150,826 |
|
|
|
|
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
|
| Purchase
of fixed assets |
|
(1,491,611) |
(1,601,248) |
|
| Sale
of fixed assets |
|
228,750 |
130,849 |
|
| Investment
in lease finance (net of recoveries) |
|
19,114,581 |
(4,269,295) |
|
| (Increase)/decrease
in income from |
|
|
|
| Government
securities |
|
(359,709) |
892,154 |
|
|
|
---------- |
---------- |
|
| Net
cash generated/(used) in investing activities |
17,492,011 |
(4,847,540) |
|
|
|
|
|
---------- |
---------- |
|
| Total
carried forward |
|
|
49,196,035 |
43,303,286 |
|
|
|
|
|
|
|
|
| Total
brought forward |
|
49,196,035 |
43,303,286 |
|
|
|
|
|
| CASH
FLOWS FROM FINANCING ACTIVITIES |
|
|
| Increase
in redeemable capital |
|
7,845,754 |
9,623,573 |
|
| (Decrease)/increase
in long term finance |
|
(7,331,150) |
13,333,333 |
|
| (Decrease)/increase
in obligation |
|
|
|
| under
finance leases |
|
(7,728) |
478,628 |
|
| (Decrease)/increase
in short term finance |
|
(7,448,742) |
5,149,809 |
|
| Decrease
in Certificates of Investment |
|
(5,200,000) |
(25,000,000) |
|
| Return
and financial charges on borrowings |
|
(21,514,827) |
(21,996,236) |
|
|
|
---------- |
---------- |
|
| Net
cash (used) in financing activities |
|
(33,656,693) |
(18,410,893) |
|
|
|
---------- |
---------- |
|
| Net
increase in cash and cash |
|
|
|
| equivalents |
|
|
15,539,342 |
24,892,393 |
|
|
|
|
|
| Cash
and cash |
|
|
|
| equivalents
at July 1, 1997/1996 |
|
(2,602,114) |
(.27,494,507) |
|
|
|
|
|
| Cash
and cash equivalents |
|
---------- |
---------- |
|
| at
June 30, 1998/1997 |
|
12,937,228 |
(2,602,114) |
|
|
|
========== |
========== |
|
|
| DR.
KHALID IQBAL |
|
SHAMIM I. JUNEJO |
|
M.A. REHMANI |
|
| Chairman |
|
Chief Executive |
|
Director |
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED |
|
| JUNE
30, 1998 |
|
|
| 1.
LEGAL STATUS AND NATURE OF BUSINESS |
|
|
| The
Company is incorporated in Pakistan as a public limited company 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 |
|
| The
financial statements have been prepared under the historical cost convention. |
|
|
| 2.2
Tangible fixed assets and depreciation thereon |
|
| These
are stated at cost less accumulated depreciation. Depreciation is charged |
|
| to
income applying the straight line method whereby the cost of the asset less |
|
| estimated
residual value is written off over its estimated useful life. Depreciation on |
|
| fixed
assets is charged proportionately from the month of acquisition (full month's |
|
| depreciation
being charged in the month of acquisition) upto the month prior to |
|
| deletion. |
|
|
| Assets
obtained under finance leases are included as tangible fixed assets and |
|
| depreciation
thereon is charged over the useful life of the assets or the lease term |
|
| whichever
is shorter. However, if there is reasonable certainty that the ownership |
|
| of
the assets would transfer to the company at the end of the lease term, the
asset |
|
| is
depreciated at the same rates as the Company's own assets. |
|
|
|
|
| Profit
or loss on disposal of fixed assets is included in income currently. |
|
|
|
|
| 2.3
Employees' retirement benefits |
|
| The
Company operates a contributory provident fund for all its permanent
employees |
|
| and
contributions are made by the Company and the employees in accordance |
|
| with
the fund rules. |
|
|
|
|
| 2.4
Investments |
|
| Long
term investments: These are stated at moving average cost
of the respective |
|
| entities
shares/certificates Provision is made for any diminution in value, if
considered |
|
| permanent. |
|
|
|
| Short
term investments: These are stated at moving average cost
of the respective |
|
| entities'
shares/certificates less provision for diminution in market value. The
adjust- |
|
| ment
in respect of diminution in market value is determined on a portfolio basis
and |
|
| is
charged or credited to income currently. |
|
|
|
|
|
| Profit
or loss on sale of investments is accounted for currently. |
|
|
|
|
| 2.5
Government securities repurchase/resale transactions |
|
| The
Company enters into transactions of repurchase or resale in registered
Govern- |
|
| ment
securities at contracted rates for specified periods of time. These are
recorded |
|
| as follows: |
|
|
|
|
|
|
| (a)
in the case of sale under repurchase obligations the securities are deleted
from |
|
| he
books at cost (whilst the coupon income continues to be accrued) and |
|
| the
charges arising from the differential in sale and repurchase values are |
|
| accrued
on a pro-rata basis and recorded under income from Government |
|
| securities.
Upon repurchase the securities are reinstated at their respective |
|
| original
cost. |
|
|
|
|
|
|
| (b)
in the case of purchases under resale obligations the securities are booked |
|
| at
the contracted purchase price and the differential of the contracted purchase |
|
| and
resale prices is amortized over the period of the contract and recorded |
|
| under
income from Government securities. |
|
|
|
|
|
|
|
| 2.6
Revenue recognition |
|
|
|
| The
Company follows the "financing method" in recognizing income on
lease con- |
|
| tracts.
Under this method the unearned income i.e. the excess of aggregate lease |
|
| rentals
and the estimated residual value over the cost of the leased asset is
deferred |
|
| and
then amortized over the term of the lease, so as to produce a constant rate |
|
| of
return on net investment in the lease. |
|
|
|
|
|
| Dividend
income from quoted entities is recognized at the time of closure of share |
|
| transfer
books of the company declaring the dividend. |
|
|
|
|
|
|
| Income
on Government securities is recognized by pro-rate accruals of the
differential |
|
| in
cost and maturity values and/or the coupon rate applicable. |
|
|
|
|
|
|
| Project
examination, consultancy, commitment and other charges are taken to |
|
| income
when realized. |
|
|
|
|
|
|
| 2.7
Taxation |
|
|
|
| Current:
The charge for current taxation is based on taxable income
which is computed |
|
| as
if all leases are accounted for as operating leases. |
|
|
|
|
|
|
| Deferred: The Company accounts for deferred taxation expense using the
liability |
|
| method
on all significant timing differences which are expected to reverse within |
|
| the
next three years. |
|
|
|
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| 3.
RESERVE FUND (CAPITAL RESERVE) |
|
|
|
|
|
|
|
|
| At
the beginning of the year |
|
8,848,215 |
8,848,215 |
|
| Transfer
from profit and loss account |
|
980,625 |
- |
|
|
|
---------- |
---------- |
|
| At
the end of the year |
|
9,828,840 |
8,848,215 |
|
|
|
|
|
========== |
========== |
|
|
| The
reserve fund is created by transferring 20% of the profit after tax for the
year, This reserve |
|
| is
required to be maintained under the provisions of the regulations issued by
the State |
|
| Bank
of Pakistan for Non-Banking Financial Institutions, |
|
|
|
|
|
|
1998 |
1997 |
|
|
|
Note |
Rupees |
Rupees |
|
| 4.
REDEEMABLE CAPITAL-SECURED |
|
|
|
|
|
| Musharika
fund |
|
4.1 |
21,433,334 |
13,000,000 |
|
| Finance
against TFC's |
|
4.2 |
30,000,000 |
30,587,580 |
|
|
|
|
---------- |
---------- |
|
|
|
|
51,433,334 |
43,587,580 |
|
| Less:
Current portion |
|
|
9,968,949 |
9,213,069 |
|
|
|
|
---------- |
---------- |
|
|
|
41,464,385 |
34,374,511 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| 4.1
This includes- |
|
| Rs.
13,000,000 Musharika fund obtained from a Modaraba for a period of three
years. |
|
| The
share in the pr6fit between the Company and the Modaraba is in the ratio of |
|
| their
respective contributions. The share of the Modaraba during the year was Rs. |
|
| 2,405,000.
The profit is payable in quarterly installments commencing from September |
|
| 1997. |
|
|
| Rs.
8,433,334 Musharika fund obtained from a commercial bank. The balance rep- |
|
| resents
two lines of Rs. 6 million and Rs. 4 million repayable in 60 and 36 equal |
|
| installments
commencing from October 10, 1997 and December 26, 1997 respec- |
|
| tively.
The expected rate of mark-up is 19.5%. This facility is secured by a mortgage |
|
| or
charge on present and future book debts of the company and hypothecation |
|
| of
plant and machinery. |
|
|
| 4.2
This represents credit line obtained from a DFI. The finance is repayable in
four half- |
|
| yearly
and eleven quarterly installments. The facility carries mark-up at the rate
of |
|
| 20.5%
per annum. The installments will commence from October 1,1998. The facility |
|
| is
secured by way of assignment of lease rentals and personal guarantees of
directors |
|
| of
the company. |
|
|
| 5.
LONG TERM FINANCE-SECURED |
|
|
|
|
|
|
|
| From- |
|
|
|
|
| Commercial
bank |
|
5.1 |
31,143,685 |
37,994,685 |
|
| Modaraba |
|
5.2 |
12,853,183 |
13,333,333 |
|
|
|
|
---------- |
---------- |
|
|
|
|
43,996,868 |
51,328,018 |
|
| Less:
Current portion |
|
|
23,996,868 |
24,612,017 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
20,000,000 |
26,716,001 |
|
|
|
|
========== |
========== |
|
|
| 5.1
This represents balance of two term finance facilities of Rs. 20 million each
obtained |
|
| from
a commercial bank. The facilities carry a mark-up rate of Rs.0.48 per Rs.
1,000 |
|
| per
day. The two lines are repayable in four and twelve quarterly installments.
The |
|
| installments
will commence from September 30, 1998 and September 30,1999 respec- |
|
| tively.
The facilities are secured by registered deed of assignment of lease rentals |
|
| of
specific leases. |
|
|
| 5.2
This represents Morabaha finance facility of Rs.20 million obtained from a
Modaraba. |
|
| The
facility carries a mark-up rate of Rs.0.50 per Rs. 1,000 per day. The finance
is |
|
| repayable
in three equal annual installments alongwith mark-up. The installments |
|
| commenced
from August 17, 1996. The facility is secured by deed of assignment of |
|
| lease
rentals of specific leases and personal guarantees of Directors of the
company. |
|
|
| 6.
OBLIGATION UNDER FINANCE LEASES |
|
| This
represents the outstanding balance against obligation under finance leases.
The rates |
|
| of
return used as discounting factor range from 18.72% to 20,32% per annum. The
lease |
|
| rentals
are payable in equal monthly installments. |
|
|
|
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| Obligation
under finance leases |
|
|
1,506,270 |
1,513,998 |
|
| Less:
Current Portion |
|
|
920,772 |
571,925 |
|
|
|
|
---------- |
---------- |
|
|
|
|
585,498 |
942,073 |
|
|
|
|
========== |
========== |
|
|
|
|
| The
future minimum lease payments to which the |
|
| Company
is committed under the lease |
|
| agreements
are due as follows: |
|
|
|
|
|
| During
the year 1997-1998 |
|
|
- |
825,120 |
|
| During
the year 1998-1999 |
|
|
1,138,565 |
966, 145 |
|
| During
the year 1999-2000 |
|
|
451,777 |
78,990 |
|
| During
the year 2000-2001 |
|
|
213,845 |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
1,804,187 |
1,870,255 |
|
|
|
|
========== |
========== |
|
|
|
|
| At
the end of the lease term assets held under finance lease will be transferred
on payment |
|
| of
the residual value of Rs.262,550. |
|
|
| 7.
LEASE KEY MONEY |
|
| This
represents the security deposits received against lease contracts. The
amounts are |
|
| refundable
at the expiry of the respective lease periods. |
|
|
|
|
| 8.
CERTIFICATES OF INVESTMENT |
|
| The
Certificates of investment are issued for maturity periods of three months to
five years, |
|
| The
return on certificates ranges from 14.5% to 21%, |
|
|
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| 9.
SHORT TERM MUSHARIKA FUND |
|
|
| AND FINANCE |
|
|
|
|
|
|
|
|
|
| Musharika
fund |
|
- |
10,000,000 |
|
|
|
|
|
| Short
term finance |
|
|
|
| from
investment bank-unsecured |
|
9.1 |
5,000,000 |
- |
|
| from
commercial bank-secured |
|
9.2 |
12,207,628 |
14,656,371 |
|
|
|
|
---------- |
---------- |
|
|
|
17,207,628 |
14,656,371 |
|
|
|
---------- |
---------- |
|
|
|
17,207,628 |
24,656,371 |
|
|
|
|
|
|
========== |
========== |
|
|
| 9.1
This represents placement made by an Investment Bank of Rs.4,000,000 and Rs.
1,000,000 |
|
| repayable
on August 6, 1998 carrying markup at the rate of 18.25% per annum and |
|
| July
27, 1998 carrying mark-up at the rate of 17.90% per annum respectively. |
|
|
| 9.2
Represents running finance availed out of total sanctioned facility of Rs.15
million |
|
| from
a commercial bank. The facility is secured by way of registered hypothecation |
|
| of
leased assets. The rate of mark-up charged by the bank is Rs.0.50 per
Rs.1,000 |
|
| per day. |
|
|
|
| 10.
ACCRUED AND OTHER LIABILITIES |
|
| Accured
return/mark-up on secured loans |
|
|
| and finance |
|
28,828,993 |
21,325,545 |
|
| Accured
return on Certificates of investment |
|
1,999,393 |
2,113,373 |
|
| Accured
operating expenses |
|
352,221 |
274,500 |
|
| Unclaimed
dividend |
|
149,778 |
153,078 |
|
| Other
liabilities |
|
190,636 |
1,350,167 |
|
|
|
---------- |
---------- |
|
|
|
31,521,021 |
25,216,663 |
|
|
|
========== |
========== |
|
|
| 11.
CONTINGENCIES AND COMMITMENTS |
|
| Contingencies |
|
| 11.1
Guarantees given for repayment of finances amount to Rs. 21,773,300 (1997:
Rs. 21,773, 300) |
|
|
| 11.2
Debt disputed by the company amounts to Rs. 4 million of which Rs.2 million
has not |
|
| been
accrued as negotiations for waiver of this amount are in progress. The
company |
|
| is
confident of a favourable outcome. |
|
|
| Commitments |
|
|
|
|
| 11.3
Repurchase obligations of FIBs [Note 2.5(a)] |
4,164,548 |
-- |
|
|
|
========== |
========== |
|
|
|
| 12.
TANGIBLE FIXED ASSETS |
|
|
|
Accumulated |
|
|
Cost at the |
|
Cost |
depreciation |
Book value |
|
|
|
beginning |
Additions/ |
at the |
at the end |
at the |
Depreciation |
|
|
of the |
(disposals)/ |
end of the |
of the |
end of the |
for the |
Depreciation |
|
|
year |
adjustments |
year |
year |
year |
year |
rates |
|
|
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
% |
|
|
| Owned- |
|
|
| Office
premises and |
|
| car parking |
369,000 |
- |
369,000 |
132,228 |
236,772 |
18,453 |
5 |
|
|
|
|
|
|
|
| Office
equipment |
1,464,389 |
306,150 |
1,770,539 |
899,387 |
871,152 |
128,105 |
20 |
|
| Furniture
and fixtures |
885,255 |
232,492 |
1,117,747 |
421,556 |
696,191 |
81,414 |
10 |
|
| Office
renovation |
1,832,172 |
318,469 |
2,150,641 |
1,495,998 |
654,643 |
330,396 |
33.33 |
|
| Vehicles |
|
5,257,418 |
- |
4,481,188 |
2,714,137 |
1,767,051 |
565,685 |
20 |
|
|
|
|
(776,230) |
|
|
|
|
------------------------------------------------------------------------ |
|
| Sub-total |
|
9,808,234 |
857,111 |
9,889,115 |
5,663,306 |
4,225,809 |
1,124,053 |
|
|
|
|
(776,230) |
|
|
|
------------------------------------------------------------------------ |
|
|
|
|
| Under
Finance Lease- |
|
|
|
| Vehicles |
2,025,160 |
634,500 |
2,659,660 |
639,754 |
2,019,906 |
343,432 |
20 |
|
|
|
------------------------------------------------------------------------ |
|
|
| Sub-total |
|
2,025,160 |
634,500 |
2,659,660 |
639,754 |
2,019,906 |
343,432 |
|
|
|
------------------------------------------------------------------------ |
|
|
|
11,833,394 |
1,491,611 |
12,548,775 |
6,303,060 |
6,245,715 |
1,467,485 |
|
|
|
|
(776,230) |
|
|
|
|
========================================================================= |
|
| 1997 |
|
10,481,376 |
2,722,273 |
11,833,394 |
5,383,462 |
6,449,932 |
1,337,949 |
|
|
|
|
(1,370,255) |
|
|
========================================================================= |
|
|
| 12.1
Particulars of disposals of fixed assets |
|
|
|
Original |
Accumulated |
Written |
Sale |
Mode of |
Particulars of |
|
|
cost |
depreciation |
down value |
proceeds |
disposal |
purchaser |
|
|
Rupees |
Rupees |
Rupees |
Rupees |
|
|
| Suzuki
Khyber |
249,230 |
152,646 |
96,584 |
97,000 |
Negotiation |
Mr. Ayyaz Abroad |
|
|
|
|
|
(Ex-employee) |
|
|
|
|
|
Gulshan-e-lqbaI, Karachi. |
|
|
|
|
|
| Mitsubishi
Lancer |
527,000 |
395,250 |
131,750 |
131,750 |
Negotiation |
Ms. Suriya Begum, |
|
|
|
|
|
North Nazimabad, Karachi. |
|
|
------------------------------------------------- |
|
|
|
776,230 |
547,896 |
228,334 |
228,750 |
|
|
|
================================================= |
|
| 1997 |
|
249,230 |
118,381 |
130,849 |
130,849 |
|
|
|
================================================= |
|
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| 13.
NET INVESTMENT IN LEASE FINANCE |
|
|
|
|
|
|
|
| Minimum
lease payments receivable |
|
|
245,112,404 |
294,071,463 |
|
| Add:
Residual value |
|
|
24,172,441 |
28,823,546 |
|
|
|
|
---------- |
---------- |
|
|
|
|
269,284,845 |
322,895,009 |
|
| Less:
Unearned finance income |
|
|
39,493,569 |
73,989,150 |
|
|
|
|
---------- |
---------- |
|
| Net
investment in lease finance |
|
|
229,791,276 |
248,905,859 |
|
| Less:
Current portion of net investment |
|
| in
lease finance |
|
13.1 |
79,203,769 |
111,949,204 |
|
|
|
|
---------- |
---------- |
|
|
|
|
150,587,507 |
136,956,655 |
|
|
|
|
========== |
========== |
|
|
| 13.1
Current portion of net investment |
|
| in
lease finance |
|
79,203,769 |
111,949,204 |
|
| Less:
Provision for doubtful debts |
|
4,320,719 |
4,320,718 |
|
|
|
|
---------- |
---------- |
|
|
|
74,883,050 |
107,628,486 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| 14.
LONG TERM INVESTMENTS |
|
|
| 15%
10 year registered WAPDA Bonds |
|
| (maturity
2002) |
|
|
4,500,000 |
4,500,000 |
|
|
|
|
| 15%
10 year Federal Investment Bonds |
|
| (maturity
2003) |
|
14.1 |
1,000,000 |
1,000,000 |
|
|
|
|
---------- |
---------- |
|
|
|
|
5,500,000 |
5,500,000 |
|
|
| The
above investments are made to |
|
| meet
the liquidity |
|
| requirement
as per NBFIs regulations. |
|
|
| Investment
in- |
|
|
|
|
|
|
|
|
| Associated
unlisted undertaking |
|
14.2 |
2,000,000 |
2,500,000 |
|
| Listed
companies/modarabas |
|
|
|
| [Aggregate
market value Rs.21,306, 182 |
|
|
| (1997:
Rs. 20,900,552)] |
|
14.3 |
32,081,048 |
32, 081,048 |
|
| other
unlisted company |
|
14.4 |
3,500,000 |
3,500,000 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
37,581,048 |
38,081,048 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
43,081,048 |
43,581,048 |
|
|
|
|
|
========== |
========== |
|
|
| 14.1
As at June 30,1998 the company sold Government securities valuing
Rs.4,000,000 |
|
| (1997:Nil)
under repurchase arrangement for a specified period of time. |
|
|
| 14.2
Investment in associated unlisted undertaking |
|
| National
Industrial Management Limited |
|
| 250,000
(1997: 250,000) |
|
|
|
| ordinary
shares |
|
14.2.1 |
2,500,000 |
2,500,000 |
|
| Less:
provision for diminution in value |
|
|
| of
investment |
|
|
500,000 |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
2,000,000 |
2,500,000 |
|
|
|
|
========== |
========== |
|
|
| 14.2.1
Percentage of equity held in the investee company is 25% of its capital. The
Chief |
|
| Executive
of the associated company is Mr. Rana M. Abu Obaida. Audit for the year |
|
| ended
June 30, 1998 of the investee company is in progress; the break-up value |
|
| as
per draft accounts is Rs. 9.5/-. |
|
|
| 14.3
Investment in listed companies/modarabas |
|
| Associated
undertakings |
|
|
|
| Industrial
Capital Modaraba |
|
|
|
| 574,436
(1997:574,436) |
|
|
|
|
| modaraba
certificates |
|
5,742,575 |
5,742,575 |
|
|
|
|
| Asset
Investment Bank Limited |
|
|
| 990,000
(1997: 990,000) ordinary shares |
|
9,949,500 |
9,949,500 |
|
|
|
---------- |
---------- |
|
|
|
15,692,075 |
15,692,075 |
|
| Others |
|
|
|
| First
Hajveri Modaraba |
|
|
|
| 193,286
(1997:193,286)modaraba certificates |
|
1,424,615 |
1,424,615 |
|
|
|
|
| Sui
Northern Gas Pipeline Limited |
|
|
|
| 26,478
(1997: 23,024) ordinary shares |
|
697,503 |
697,503 |
|
| First
International Investment Bank Limited |
|
|
| 100
(1997: 100) Ordinary shares |
|
3,328 |
3,328 |
|
| Pakistan
Industrial Leasing Corporation Limited |
|
|
| 5,000
(1997: 5,000) ordinary shares |
|
186,000 |
186,000 |
|
|
|
|
| Nayab
Spinning & Weaving Mills Limited |
|
|
| 750,000 (1997:
750,000) ordinary shares |
7,500,000 |
7,500,000 |
|
|
|
|
| Caravan
East Fabrics Limited |
|
|
|
| 650,000
(1997: 650,000) ordinary shares |
|
6,500,000 |
6,500,000 |
|
| Pakistan
Telecommunication Corporation Limited |
|
|
| 2,000
ordinary shares (1997:2,000 vouchers) |
|
77,527 |
77,527 |
|
|
|
---------- |
---------- |
|
|
|
|
16,388,973 |
16,388,973 |
|
|
|
|
---------- |
---------- |
|
|
|
|
32,081,048 |
32,081,048 |
|
|
|
|
========== |
========== |
|
|
| 14.4
Investment in other unlised company |
|
|
|
|
| Safe
Rice Mills Limited |
|
|
|
| 350,000
(1997:350,000) |
|
|
|
| ordinary
shares |
|
14.4.1 |
3,500,000 |
3,500,000 |
|
|
|
|
========== |
========== |
|
|
| 14.4.1
Percentage of equity held in the investee company is 12.28% of its capital.
The name |
|
| of
the Chief Executive of the investee company is Mr. Parvaiz Aslam. As per last |
|
| available
audited accounts for the year ended August 31,1997 of the company, |
|
| the
break-up value per share including surplus on revaluation of fixed assets is
Rs. |
|
| 31.44.
The break-up value per share excluding surplus on revaluation of fixed assets |
|
| is Rs.3.82. |
|
|
|
|
|
|
| 14.5
Unless otherwise stated all shares/certificates/vouchers are of Rs.10 each. |
|
|
|
|
| 15.
LONG TERM DEPOSITS AND PREPAYMENTS |
|
|
|
|
|
| Deposits
on lease contracts |
|
262,550 |
199,100 |
|
| Prepaid
office rent (to an associated company) |
|
900,000 |
1,500,000 |
|
|
|
---------- |
---------- |
|
|
|
1,162,550 |
1,699,100 |
|
| Less:
Current portion |
|
684,800 |
600,000 |
|
|
|
---------- |
---------- |
|
|
|
477,750 |
1,099,100 |
|
|
|
|
========== |
========== |
|
|
| 16.
ADVANCES, DEPOSITS, PREPAYMENTS AND |
|
| OTHER
RECEIVABLES |
|
|
| Current
portion of deposits on lease contracts |
|
84,800 |
- |
|
| Current
portion of prepaid office rent |
|
600,000 |
600,000 |
|
| Prepayments |
|
|
|
110,353 |
403,031 |
|
| Accrued
income |
|
|
338,789 |
286,448 |
|
| Advance
income tax paid net of provision |
|
|
| for
taxation |
|
|
81,656 |
682,461 |
|
| Other
advances and receivables |
|
16.1 |
1,918,896 |
2,630,327 |
|
| Other
charges recoverable from lessees |
|
616,486 |
- |
|
|
|
|
---------- |
---------- |
|
|
|
|
3,750,980 |
4,602,267 |
|
|
|
|
========== |
========== |
|
|
|
|
| 16.1
Includes expenses incurred of Rs. 1,489,968 receivable from lessee. (1997:
Rs. 1,489,968). |
|
|
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| 17.
CASH AND BANK BALANCES |
|
|
|
|
|
|
|
| Cash
in hand |
|
|
39 |
1,427 |
|
| Balance
with State Bank of Pakistan |
|
|
300,000 |
300,000 |
|
| Balance
with banks/DFIS |
|
|
| -
on current accounts |
|
|
58,152 |
310,198 |
|
| -
on deposit accounts |
|
17.1 |
14,096,472 |
5,107,763 |
|
|
|
|
---------- |
---------- |
|
|
|
|
14,454,663 |
5,719,388 |
|
|
|
|
========== |
========== |
|
|
| 17.1
Includes Rs.9,089,317 (1997: Rs.5,000,000) deposited with an associated
undertaking. |
|
|
| 18.
INCOME FROM LEASING OPERATIONS |
|
|
|
|
| Return
on lease contracts |
|
41,038,687 |
39,587,008 |
|
| Commitment
and other fees |
|
74,470 |
1,021,967 |
|
| Mark-up
on pre-leasing advances |
|
4,350 |
19,020 |
|
|
|
---------- |
---------- |
|
|
|
41,117,507 |
40,627,995 |
|
|
|
========== |
========== |
|
| 19.
RETURN AND FINANCIAL CHARGES |
|
|
| Mark-up
on long term finance |
|
14,030,114 |
16,298,623 |
|
| Mark-up
on short term finance |
|
1,905,145 |
3,992,460 |
|
| Musharika
profit on long term fund |
|
3,000,734 |
1,145,087 |
|
| Musharika
profit on short term fund |
|
2,150,761 |
118,356 |
|
| Charges
on obligation under finance leases |
|
290,309 |
307,293 |
|
| Return
on Certificates of Investment |
|
3,591,635 |
6,237,167 |
|
| Other
financial charges |
|
|
137,764 |
134,417 |
|
|
|
|
---------- |
---------- |
|
|
|
25,106,462 |
28,233,403 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
| 20.
ADMINISTRATIVE AND OPERATING EXPENSES |
|
| Salaries,
allowances and benefits |
|
|
5,801,085 |
5,203,405 |
|
| Rent |
|
|
600,000 |
600,000 |
|
| Telephone,
electricity and utilities |
|
1,047,243 |
1,170,100 |
|
| Printing
and stationery |
|
|
177,519 |
352,819 |
|
| Insurance |
|
|
354,520 |
452,441 |
|
| Travelling
and conveyance |
|
|
479,518 |
457,537 |
|
| Vehicle
running expenses |
|
|
836,350 |
770,189 |
|
| Office
maintenance |
|
|
180,871 |
111,316 |
|
| Legal
and professional charges |
|
20.1 |
261,513 |
606,800 |
|
| Depreciation
on fixed assets |
|
|
1,467,485 |
1,337,949 |
|
| Donation/Zakat |
|
20.2 |
1,624 |
4,363 |
|
| Other
operating expenses |
|
|
750,363 |
438,510 |
|
|
|
|
---------- |
---------- |
|
|
|
|
11,958,091 |
11,505,429 |
|
|
|
|
========== |
========== |
|
|
| 20.1
Legal and professional charges includes auditors' remuneration and expenses
as |
|
| follows: |
|
|
|
|
1998 |
1997 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Audit fee |
|
|
|
50,000 |
50,000 |
|
| Tax service |
|
|
|
75,000 |
75,000 |
|
| Out-of-pocket
expenses |
|
|
|
10,000 |
10,000 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
135,000 |
135,000 |
|
|
|
|
|
========== |
========== |
|
|
| 20.2
None of the directors or their spouses had any interest in the donees to whom
the |
|
| donation
was made. |
|
|
| 21.
TAXATION |
|
|
| 21.1
The assessments of all the years upto and including assessment year 1997-98
have |
|
| been
finalized by the Income Tax Department. However, the company has filed |
|
| appeals
against all the orders passed by the Deputy Commissioner Income Tax in |
|
| respect
of certain disallowances. The appeals have been heard but the decisions |
|
| are
awaited. However, full provision for taxation has been made in these
accounts. |
|
|
| 21.2
The deferred tax liability on major timing differences at June 30,1998
amounts to Rs.8.3 |
|
| million
of which Rs.3.3 million is credit for the year (1997:Rs.5 million of which
Rs.3 |
|
| million
was debit for the year). However, since these timing differences are not |
|
| expected
to reverse within three years, no provision for deferred taxation has been |
|
| made
in these accounts. |
|
|
|
| 22.
REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES |
|
|
|
|
| The
remuneration of Chief Executive and whole time working Directors and
Executives |
|
| charged
in these accounts is as follows: |
|
|
|
|
1998 |
|
|
1997 |
|
|
|
Chief |
|
Chief |
|
|
|
Executive |
Directors |
Executives |
Executive |
Directors |
Executives |
|
|
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
|
|
| Managerial remuneration |
580,644 |
1,064,514 |
1,016,333 |
483,871 |
1,161,290 |
522,977 |
|
| Housing
and utilities |
|
319,356 |
585,485 |
519,949 |
266,129 |
638,710 |
287,637 |
|
| Reimbursement
of medical |
|
|
| expenses |
|
958 |
- |
126,660 |
36,788 |
41,419 |
39,455 |
|
|
|
-------------------------------------------------------------------------- |
|
|
|
900,958 |
1,649,999 |
1,662,942 |
786,788 |
1,841,419 |
850,069 |
|
|
|
========================================================================== |
|
| Number
of persons |
|
1 |
2 |
4 |
1 |
2 |
2 |
|
|
|
|
========================================================================== |
|
|
|
|
| The
Chief Executive., Directors and Executives are also provided with free use of
Company |
|
| maintained
cars. |
|
|
|
| 23.
TRANSACTIONS WITH ASSOCIATED UNDERTAKINGS/RELATED PARTIES |
|
| OTHER
THAN THOSE STATED HERE IN ABOVE |
|
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Rent
for office premises charged by |
|
|
|
| National
Industrial Management Limited |
|
600,000 |
600,000 |
|
| Placement
of deposit (net) with |
|
|
|
|
| Asset
Investment Bank Limited |
|
|
3,086,680 |
5,000,000 |
|
| Profit
on deposit from |
|
|
|
|
|
| Asset
Investment Bank Limited |
|
|
2,410,256 |
138,959 |
|
| Lease
rentals paid on behalf of |
|
|
|
|
| Asset
Investment Bank Limited |
|
|
29,192 |
- |
|
|
|
---------- |
---------- |
|
|
|
|
|
6,126,128 |
5,738,959 |
|
|
|
|
|
========== |
========== |
|
|
| 24. GENERAL |
|
|
| 24.1
All figures have been rounded off to the nearest rupee. |
|
|
| 24.2
Previous year's figures have been re-arranged wherever necessary for the
purposes |
|
| of comparison. |
|
|
| DR.
KHALID IQBAL |
|
SHAMIM I. JUNEJO |
|
M.A. REHMANI |
|
| Chairman |
|
Chief Executive |
|
Director |
|
|
|
| PATTERN
OF SHARE HOLDINGS AS AT JUNE 30, 1998 |
|
|
| NUMBER OF |
|
SHAREHOLDINGS |
|
TOTAL |
|
| SHAREHOLDERS |
|
|
|
SHARES HELD |
|
|
| 57 |
1 |
- |
100 |
5,700 |
|
| 194 |
101 |
- |
500 |
78,200 |
|
| 185 |
501 |
- |
1000 |
174,900 |
|
| 158 |
1001 |
- |
5000 |
445,000 |
|
| 35 |
5001 |
- |
10000 |
268,200 |
|
| 10 |
10001 |
- |
15000 |
124,800 |
|
| 9 |
15001 |
- |
20000 |
178,500 |
|
| 3 |
25001 |
- |
30000 |
87,000 |
|
| 4 |
30001 |
- |
35000 |
126,300 |
|
| 1 |
35001 |
- |
40000 |
39,900 |
|
| 2 |
40001 |
- |
45000 |
84,700 |
|
| 2 |
45001 |
- |
50000 |
96,000 |
|
| 1 |
50001 |
- |
55000 |
50,400 |
|
| 2 |
55001 |
- |
60000 |
118,700 |
|
| 1 |
65001 |
- |
70000 |
70,000 |
|
| 1 |
85001 |
- |
90000 |
89,600 |
|
| 1 |
95001 |
- |
100000 |
100,000 |
|
| 1 |
105001 |
- |
110000 |
108,000 |
|
| 1 |
135001 |
- |
140000 |
137,700 |
|
| 1 |
155001 |
- |
160000 |
160,000 |
|
| 1 |
190001 |
- |
195000 |
191,600 |
|
| 1 |
195001 |
- |
200000 |
200,000 |
|
| 2 |
200001 |
- |
205000 |
405,400 |
|
| 1 |
215001 |
- |
220000 |
220,000 |
|
| 1 |
230001 |
- |
235000 |
234,400 |
|
| 2 |
255001 |
- |
260000 |
520,000 |
|
| 3 |
345001 |
- |
350000 |
1,045,300 |
|
| 1 |
360001 |
- |
365000 |
361,500 |
|
| 1 |
395001 |
- |
400000 |
400,000 |
|
| 1 |
795001 |
- |
800000 |
800,000 |
|
| 1 |
805001 |
- |
810000 |
810,000 |
|
| 1 |
850001 |
- |
855000 |
855,000 |
|
| 1 |
945001 |
- |
950000 |
950,000 |
|
| ---------- |
|
---------- |
|
| 686 |
|
9,536,800 |
|
| ========== |
|
========== |
|
|
| CATEGORIES
OF |
|
MEMBER OF |
SHARES |
PERCENTAGE |
|
| SHAREHOLDERS |
|
SHAREHOLDERS |
HELD |
|
|
|
| INDIVIDUALS |
|
665 |
4,877,700 |
51.146 |
|
| INVESTMENT
COMPANIES |
|
5 |
1,317,100 |
13.811 |
|
| JOINT
STOCK COMPANIES |
|
8 |
1,659,000 |
17.396 |
|
| FINANCIAL
INSTITUTIONS |
|
1 |
810,000 |
8.493 |
|
| MODARABAS |
|
6 |
872,400 |
9.148 |
|
| OTHERS |
|
1 |
600 |
0.006 |
|
|
|
---------- |
---------- |
---------- |
|
| TOTAL |
|
686 |
9,536,800 |
100.000 |
|
|
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
