| Orix Leasing Pakistan Limited |
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| Annual
Report 1998 |
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| CONTENTS |
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| COMPANY
INFORMATION |
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| ORIX
CORPORATION, JAPAN - GROUP PROFILE |
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| ASSOCIATED
COMPANIES |
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| FINANCIAL
HIGHLIGHTS OF THE COMPANY |
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| NOTICE
OF MEETING |
|
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| REPORT
OF THE DIRECTORS |
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| AUDITORS'
REPORT |
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| FINANCIAL
STATEMENTS OF THE COMPANY |
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| PATTERN
OF SHAREHOLDING |
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| ORIX
GROUP DIRECTORY |
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| COMPANY
INFORMATION |
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| BOARD
OF DIRECTORS |
|
| Mr.
Yoshihiko Miyauchi |
(alternate Mr. Takafumi
Kanda) |
Chairman |
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| Mr.
Shakirullah Durrani |
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Vice Chairman |
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| Mr.
Takashi Koizumi |
(alternate Mr. Nagaaki
Esaki) |
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| Mr.
Takeshi Sato |
(alternate Mr. Yuki
Ohshima) |
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| Sayed
Muzafar Ali Shah |
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| Mr.
Shaheen Amin |
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| Mr.
Mohammad Qamrul Haq |
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| Mr.
Humayun Murad |
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Chief Executive |
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| COMPANY
SECRETARY |
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| Mr.
Ramon Alfrey - ACA |
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| BANKERS
AND LENDING INSTITUTIONS |
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| Banks |
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| ABN-AMRO
Bank |
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| AI-Faysal
Investment Bank Limited |
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| American
Express Bank Limited |
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| Allied
Bank of Pakistan Limited |
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| ANZ
Grindlays Bank Limited |
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| Citibank
N.A. |
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| Citicorp
Investment Bank Pakistan Limited |
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| Credit
Agricole Indosuez |
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| Crescent
Investment Bank Limited |
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| Deutsche
Bank A.G. |
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| Faysal
Bank Limited |
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| First
International Investment Bank Limited |
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| Habib
Bank Limited |
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| Muslim
Commercial Bank Limited |
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| Oman
International Bank SAOG |
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| Standard
Chartered Bank |
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| Societe
Generale, The French and International Bank |
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| The
Bank of Tokyo - Mitsubishi Limited |
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| United
Bank Limited |
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| DFIs
AND LENDING INSTITUTIONS |
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| Asian
Development Bank |
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| F.
M. O., The Netherlands |
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| International
Bank for Reconstruction and Development |
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| International
Finance Corporation |
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| Pakistan
Kuwait Investment Company (Private) Limited |
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| Saudi
Pak Industrial & Agricultural Investment Company (Private) Limited |
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| AUDITORS |
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| Sidat
Hyder Qamar Maqbool & Co., Chartered Accountants |
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| LEGAL
ADVISORS |
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| Mansoor
Ahmad Khan & Co. |
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| Walker
Martineau Saleem |
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| REGISTRAR
AND SHARE TRANSFER OFFICE |
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| Noble
Computer Services (Private) Limited |
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| 2nd
Floor, Al-Manzoor Building, |
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| Dr.
Ziauddin Ahmed Road, Karachi. |
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| REGISTERED
OFFICE & HEAD OFFICE |
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| Overseas
Investors Chamber of Commerce Building, |
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| Talpur
Road, Karachi-74000 |
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| Tel:
2426020-9 Fax: 2425897 |
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| E-mail:
olp@orix-pak.com |
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| BRANCH
OFFICES AT |
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| Lahore |
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| State
Life Building, Sir Aga Khan III Road (Davis Road), Lahore-54000. |
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| Tel:
6369946, 6301527, 6302620, 6304258, 6301866 and 6302897 |
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| Fax:
6305024 |
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| Faisalabad |
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| 2nd
Floor, Sitara Towers, Bilal Chowk, Civil Lines, Faisalabad. |
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| Tel:
633926 and 633811-3 Fax: 633927 |
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| Sialkot |
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| 1st
Floor, Goolam Kadir Arcade, Aziz Shaheed Road, Sialkot Cantt. |
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| Tel:
260767, 260616 and 260877 |
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| Fax: 269548 |
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| Peshawar |
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| 1st
Floor, State Life Building, The Mall, Peshawar. |
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| Tel:
279789 and 278647 |
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| Fax: 273389 |
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| Universal
Access Number (UAN): 111-24 24 24 |
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| ORIX
CORPORATION, JAPAN - GROUP PROFILE |
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| ORIX
Corporation is Japan's leading diversified financial services company. Since |
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| establishment
in April 1964, the company has played a pioneering role in introducing |
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| leasing
services not only in Japan, but also in 21 countries overseas. ORIX dominates
the |
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| Japanese
leasing industry with a total asset base of US$ 41.8 billion. ORIX emphasizes |
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| innovation
in products and services and greater geographical diversification to keep
ahead of |
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| market
requirements and ensure corporate development. |
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| BUSINESS
OPERATIONS |
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| The
Company's operations encompass a comprehensive range of advanced financial
services |
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| which
include direct leases, installment loans, rentals, securities brokerage,
venture capital, |
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| futures
and option trading, commodities funds, life insurance and real estate related
activities. |
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| Japan
has been facing a recessionary trend in recent years and in response to the
changing |
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| economic
scenario, ORIX has worked to enhance its profitability by continuing to
expand its |
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| marketing
network, strengthen its customer base and increase its level of
specialization in |
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| areas
of expertise. Greater emphasis is being placed on Operating lease of
transportation |
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| equipment
including aircrafts, automobiles and marine vessels. ORIX currently has a
fleet of |
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| three
Boeing 737 and 23 Airbus 320 medium range aircrafts. In addition to its own
fleet, ORIX |
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| remains
one of the major players in aircraft financing. |
|
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| ORIX
is expanding its marketing activities to individuals while maintaining its
corporate |
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| operations.
In September 1997, ORIX introduced a new range of directly marketed life |
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| insurance,
known as "ORIX Direct", which is targeted towards individual
customers. ORIX also |
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| established
a "Personal Financial Services" team to promote development of
ORIX's personal |
|
| financial
services. In April 1998, ORIX acquired Yamaichi Trust and Bank Ltd. for
broadening |
|
| the
ORIX Group's range of financial services further and equipping it with
settlement and trust |
|
| banking
capabilities. |
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|
| INTERNATIONAL
NETWORK OF ORIX |
|
| ORIX
Corporation has spread through wholly owned subsidiaries and joint investment
with |
|
| financial
institutions and other business interest overseas. At present, the network
covers 21 |
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| countries
and comprises of 45 companies. There are 16 wholly owned subsidiaries outside |
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| Japan,
which are located in USA, UK, Ireland, Hong Kong, Singapore, Taiwan,
Australia, and |
|
| New
Zealand. Recent additions to the network are Banc One Mortgage Capital
Markets, LLC, |
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| a
joint venture of ORIX and BANC ONE CORP, which is engaged in securitization
and |
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| servicing
of loans secured by commercial property. In 1997, ORIX also established a
wholly |
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| owned
specialist automobile lessor in Brazil by the name of ORIX Auto Locadora
Ltda. A |
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| recent
inclusion in the ORIX Group of Australia is "Ranger Truck Rental and
Leasing Pty. Ltd", |
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| a
truck rental concern. |
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| FINANCIAL
HIGHLIGHTS |
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| ORIX
Group, Japan |
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|
(For the year ended March 31) |
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Translation into |
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|
Japanese Yen (millions) |
U.S. Dollars (thousands) |
|
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|
1998 |
1997 |
1998 |
1997 |
|
|
| Total
Revenues |
|
489,015 |
411,343 |
3,668,805 |
3,086,770 |
|
| Income
before taxes |
|
38,412 |
36,889 |
288,184 |
276,820 |
|
| Net Income |
|
23,731 |
19,044 |
178,040 |
142,908 |
|
| Shareholders'
Investment |
|
313,821 |
308,584 |
2,354,423 |
2,315,653 |
|
| Total Assets |
|
5,574,309 |
5,089,975 |
41,820,909 |
38,195,820 |
|
|
|
|
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| Note: |
The dollar amounts above
represent translations of Japanese Yen at an exchange rate of |
|
|
¥133.29 to US $1. |
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| ORIX'S
PRINCIPAL ACTIVITIES |
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| DIRECT
FINANCING LEASES |
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| Information-Related
and Office Equipment |
|
Automobiles |
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| Industrial
Equipment |
|
Marine Vessels |
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| Construction
and Civil Engineering Machinery |
Aircraft |
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| Commercial
Services Equipment |
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| OPERATING
LEASES |
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| Measuring
and Analytical Equipment |
|
Aircraft |
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| Information-Related
Equipment |
|
Real Estate |
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| Automobiles |
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|
Marine Vessels |
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| INSTALLMENT
LOANS |
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| Corporate
Finance |
|
Housing Loans |
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| Card Loans |
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| OTHER
OPERATIONS |
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| Life
Insurance |
|
Real Estate Development
& Brokering |
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| Securities
Brokerage |
|
Leisure Facility &
Golf Course Management |
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| Trust
Banking |
|
Training Facilities
Management |
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| Securities
Investment |
|
Hotel Management |
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| Venture
Capital Investment |
|
Commodities Funds |
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| Futures
and Options Trading |
|
Professional Baseball
Team |
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| Insurance
Agency Services |
|
Environmental Services |
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| Ship
Management |
|
Computer Software
Development |
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| ASSOCIATED
COMPANIES |
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| OVERSEAS
JOINT VENTURES |
|
| 1.
Oman ORIX Leasing Company SAOG (OOL) |
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| Established
in September 1994, OOL provides lease financing services for moveable assets |
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| such
as motor cars, equipment for construction, earth moving, transportation and
information |
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| technology
and plant and machinery. Lessees include individuals, small and medium sized |
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| companies
and large subcontractors operating in various industrial sectors. ORIX
Leasing |
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| Pakistan
Limited (OLP) holds 20% of OOL's equity and provides management support. |
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| For
the year ended December 1997, OOL's profit before tax increased to Rial Omani
(RO) |
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| 355,833
(Pak Rs. 41.72 million) over last year's RO 230,576 (Pak Rs. 27.03 million)
and |
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| declared
a cash dividend of 10%. Gross lease receivables stood at RO 13 million (Pak |
|
| Rs.
1.5 billion) as compared to RO 8.8 million (Pak Rs. 1billion) at the end of
the previous year. |
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| OOL
continues to grow rapidly and for the half year ended June 30, 1998 profit
before tax |
|
| rose
to RO 260,096 (Pak Rs. 30.5 million) from RO 142,581 (Pak Rs. 16.7 million)
in the |
|
| comparative
period last year. |
|
|
| The
Company's business focus is to concentrate on leasing and hire purchase
financing. OOL |
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| has
also started operating leases on a limited scale. The market in Oman offers
good |
|
| opportunity
with an expected GDP growth rate of 5% and commencement of various large |
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| projects
relating to production of petrochemicals, fertilizers and wastewater. |
|
|
| 2.
ORIX Leasing Egypt SAE (OLE) |
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| Following
the success of OOL in Oman, ORIX Corporation and OLP established their second
joint |
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| venture
leasing company in the Middle Eastern Region in Egypt. OLP holds 23% of OLE's
capital |
|
| and
provides management support. The company was incorporated in June 1997, with
a paid up |
|
| capital
of Egyptian Pounds 20 million and is a pioneer of the leasing industry in
Egypt. |
|
|
| OLE
became profitable in its first six months of operations. The company pursues
a policy of |
|
| targeting
small and medium sized enterprises and disbursements are mainly for
manufacturing |
|
| related
equipment. Potential for leasing in Egypt is bright as the government is
eager to |
|
| promote
industries in a fast expanding economy and medium-term credit is scarce. |
|
|
| JOINT
VENTURE IN PAKISTAN |
|
| ORIX
Investment Bank Pakistan Limited (OIB) |
|
| OIB
is a joint venture sponsored by ORIX Corporation, Japan, International
Finance |
|
| Corporation,
Asian Finance and Investment Corporation (an affiliate of Asian Development |
|
| Bank)
and other major financial institutions in Pakistan. The Bank is primarily
engaged in |
|
| providing
a range of investment banking products which include corporate advisory
services, |
|
| project
packaging, structuring and placement of capital market debt products,
issuance and |
|
| discounting
of bankers acceptance and treasury operations. As at December 31, 1997, OIB |
|
| had
a total asset base of Rs. 1.3 billion and a networth of Rs. 211 million while
deposits stood |
|
| at
Rs. 707 million. |
|
|
|
| FINANCIAL
HIGHLIGHTS OF THE COMPANY AS AT JUNE 30, 1998 |
|
|
|
|
(Rupees in thousands) |
|
|
|
1994 |
1995 |
1996 |
1997 |
1998 |
|
|
| Gross
lease receivables |
2,406,518 |
3,535,871 |
4,752,997 |
5,281,276 |
5,017,030 |
|
| Total
lease disbursements |
1,051,872 |
1,559,699 |
' 1,957,318 |
1,725,997 |
1,473,827 |
|
| Rents
received |
778,342 |
1,040,187 |
1,446,490 |
1,596,027 |
1,897,277 |
|
| Gross
income |
320,943 |
466,777 |
656,982 |
782,225 |
839,083 |
|
| Profit
before tax |
60,578 |
112,983 |
166,536 |
157,097 |
133,894 |
|
| Shareholders'
equity |
197,412 |
570,505 |
685,872 |
749,188 |
820,859 |
|
|
|
|
|
|
| Earning
per share (in Rs.) |
7.33 |
6.61 |
9.22 |
8.20 |
6.45 |
|
| Dividends: |
|
|
|
|
| Cash |
|
20% |
35% |
45% |
45% |
20% |
|
| Bonus |
|
10% |
0% |
0% |
0% |
25% |
|
| Total |
|
30% |
35% |
45% |
45% |
45% |
|
|
|
|
|
|
|
| NOTICE
OF MEETING |
|
|
| Notice
is hereby given that the twelfth Annual General Meeting of the Company will
be held at |
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| Overseas
Investors Chamber of Commerce Building, Talpur Road, Karachi on Thursday, |
|
| November
12, 1998 at 9:00 am to transact the following business: |
|
|
| ORDINARY
BUSINESS: |
|
| 1.
To receive, consider and adopt the audited accounts together with the
Directors' and |
|
| Auditors'
Report for the year ended June 30, 1998. |
|
|
| 2.
To approve the payment of cash dividend to the Shareholders at the rate of
Rs. 2/- per |
|
| share
of Rs. 10/- each for the year ended June 30,1998. |
|
|
| 3.
To appoint Auditors and fix their remuneration. The present Auditors Messrs.
Sidat |
|
| Hyder
Qamar Maqbool & Co., Chartered Accountants, retire and being eligible,
offer |
|
| themselves
for re-appointment. |
|
|
| SPECIAL
BUSINESS: |
|
| 4.
To consider and if approved, pass the following resolution: |
|
| "Resolved: |
|
|
| i)
That a sum of Rs. 40,277,380/- be capitalised out of the free reserves of the |
|
| Company
and applied for the issue of 4,027,738 ordinary shares of Rs. 10/- each |
|
| and
allotted as fully paid up bonus shares to the members of the Company, who are |
|
| registered
in the books of the Company as at the close of business on November 4, |
|
| 1998,
in the proportion of two shares for every eight shares held and that such new |
|
| shares
shall rank pari-passu with existing ordinary shares of the Company but shall |
|
| not
be eligible for dividend in respect of the year ended June 30, 1998. |
|
|
| ii)
Further resolved that in the event of any member holding shares which are not
an |
|
| exact
multiple of eight, the Directors be and are hereby authorised to consolidate |
|
| all
such fractions of bonus shares and sell them in the market and distribute the
net |
|
| proceeds
amongst the Shareholders in proportion to their respective entitlement." |
|
|
| 5.
To transact any other business with permission of the Chair. |
|
|
| STATEMENT
UNDER SECTION 160(1)(b) OF THE COMPANIES ORDINANCE, 1984. |
|
| The
Directors are of the view that the Company's financial position justifies the
capitalisation of |
|
| Rs.
40,277,380/- from unappropriated profits and reserves of the Company to
enable a bonus |
|
| issue
in proportion of two shares for every eight shares held. |
|
|
| Notes: |
|
| i)
The Register of Members of the Company will be closed from November 5, 1998
to |
|
| November
12, 1998 (both days inclusive). Dividend will be paid to those Shareholders |
|
| whose
names appear on the Register of Members as at the close of business on |
|
| November
4, 1998. |
|
|
| ii)
A Member entitled to attend and vote at the General Meeting of Members is
entitled to |
|
| appoint
a proxy to attend and vote on his behalf. A proxy need not be a Member of the |
|
| Company. |
|
|
|
| iii)
The instrument appointing a proxy and the power of attorney or other
authority under |
|
| which
it is signed or a notarially certified copy of the power of attorney must be |
|
| deposited
at the registered office of the Company at least 48 hours before the meeting. |
|
| A
form of proxy is enclosed. Shareholders are requested to notify any change of |
|
| address
immediately. |
|
|
|
| REPORT
OF THE DIRECTORS |
|
|
|
| The
Directors are pleased to present the twelfth Annual Report together with the
audited |
|
| accounts
of the Company for the year ended June 30, 1998. |
|
|
| FINANCIAL
RESULTS |
|
|
|
|
Rupees |
|
|
| Net
profit for the year after charging all expenses, |
|
|
|
| including
allowance for potential lease losses: |
133,893,569 |
|
|
|
|
|
|
|
| Less:
Taxation |
|
30,000,000 |
|
|
|
|
|
--------------- |
|
|
|
|
|
103,893,569 |
|
|
| Unappropriated
profit brought forward |
|
4,643,293 |
|
|
|
|
|
--------------- |
|
|
|
|
|
108,536,862 |
|
|
| Appropriations: |
|
|
|
|
|
|
| Transfer
to General Reserve |
|
30,000,000 |
|
|
| Transfer
to reserve for issue of bonus shares |
40,277,380 |
|
|
| Cash
Dividend |
|
32,221,906 |
|
|
|
|
|
--------------- |
|
|
|
|
|
102,499,286 |
|
|
|
|
|
--------------- |
|
|
| Unappropriated
profit carried forward |
|
6,037,576 |
|
|
|
|
|
|
|
| DIVIDEND |
|
| The
Directors recommend a cash dividend of 20% (1997: 45%) and a bonus issue of
two |
|
| shares
for every eight shares held. |
|
|
| REVIEW
OF OPERATIONS |
|
| The
past twelve months saw economic turmoil develop in East Asia and affect many |
|
| countries
in the region. In Pakistan the expected turnaround in the economy did not |
|
| materialise
and problems compounded in the aftermath of nuclear tests in May 1998. The |
|
| combined
effect of deteriorating international and domestic economic conditions eroded |
|
| business
confidence in the Country and consequently investment in industries declined. |
|
|
| The
business growth achieved by your Company in the first half of the year was
not |
|
| sustained
in the second half and total volume of new leases for the year amounted to
Rs. |
|
| 1.47
billion, lower by 15% from the corresponding figure of 1997. New rent
receivables of |
|
| Rs.
2.0 billion were added in comparison to Rs. 2.5 billion in the previous year.
Lease |
|
| income
showed a moderate increase of 3.5% to Rs. 714 million. Shrinking volume, |
|
| narrowing
margins and a sharp increase in finance costs resulted in a 15% fall in
profit |
|
| before
tax of Rs. 133.9 million (1997: Rs. 157 million). Consequently, earnings per
share |
|
| reduced
from Rs. 8.20 last year to Rs. 6.45. The profit for the year includes
dividend income |
|
| of
Rs. 4.7 million received from Oman ORIX Leasing Company SAOG, an associated |
|
| Company. |
|
|
| Financial
charges increased by 13% to Rs. 537 million reflecting higher cost of new
loans |
|
| which
replaced old borrowings. Selling, general and administrative expenses were
higher |
|
| by
15% at Rs. 115 million mainly due to inflationary impact. General provision
for potential |
|
| bad
leases is a safeguard against future unforeseen losses. The charge for the
year is Rs. |
|
| 28.1
million and the total accumulated provision represents 3.85% of the net
exposure on |
|
| rent
receivables. Despite the weak business conditions in which receipts of lease
rents |
|
| slowed
in some cases, the Company received Rs. 1.9 billion in rent recoveries
against Rs. |
|
| 1.6
billion last year. |
|
|
| Demand
for industrial machinery continued to decline and accounted for 30% of the
total |
|
| lease
disbursements. Motor cars and commercial vehicles share rose to 61% and the |
|
| balance
was utilised for computer and office equipment leases. Instalment loans under |
|
| consumer
finance maintained their share of business and the Company commenced short- |
|
| term
rentals of equipment under operating lease contracts. Financial assistance
was |
|
| provided
to 1,022 businesses, majority of which were small and medium sized
enterprises, |
|
| which
represent the core customer base of the Company. The lease portfolio of Rs.
5.0 |
|
| billion
is well balanced and the highest exposure to any sector is 18 %. |
|
|
| FUNDING |
|
| The
Company continues to have adequate funding commitments to meet its business |
|
| requirements.
New medium-term loans of Rs. 440 million were obtained during the year |
|
| from
domestic financial institutions and banks. |
|
|
| At
the last AGM, shareholders had agreed to a TFC issue of Rs. 410 million with
attached |
|
| share
warrants exchangeable with 4.1 million shares at Rs. 45 each. In March 1998
tax |
|
| exemptions
on TFCs available to institutional investors were withdrawn. Simultaneously, |
|
| the
sharp decline of the stock market also affected the Company's share price
which fell |
|
| below
the offer price of Rs. 45 for the proposed share warrants. In view of the
market |
|
| realities,
the Board of Directors decided to defer the TFC issue. Since the need to
increase |
|
| capital
to a minimum of Rs. 200 million is met by the proposal to issue Bonus shares,
the |
|
| Directors
do not contemplate issuing share warrants with future issues of TFCs. |
|
|
| Loans
from multilateral lending institutions have been the main source of the
Company's |
|
| funding
due to the advantage of medium to long-term repayment periods and fixed rates
of |
|
| funding
costs. The Company has an excellent record with major multilateral
institutions and |
|
| hopes
to continue this relationship on a long-term basis. In the aftermath of the
economic |
|
| sanctions
imposed on the Country, remittance of foreign currency payments has been |
|
| restricted.
At the time of writing this Report, two installments due to an international |
|
| institution
could not be remitted due to lack of permission for payment in foreign
currency. |
|
| To
fulfill its obligation, the Company has deposited the equivalent amount in
Rupees in a |
|
| segregated
account pending official permission, which is expected in the near future. |
|
|
| CREDIT
RATING |
|
| The
Pakistan Credit Rating Agency (PACRA) maintained the Company's credit rating
of |
|
| A1+
and A1 for short and long term debt based on the results for the year to June
30, 1997. |
|
| The
Company continues to enjoy the highest rating for both categories in the
leasing sector. |
|
|
| ASSOCIATED
COMPANIES |
|
| Oman
ORIX Leasing Company SAOG (OOL) in which your Company holds 20% equity and |
|
| provides
management support, declared improved results for the year ended December 31, |
|
| 1997
with profit for the year increasing from Rial Omani 230,576 (Rs. 27 million)
in 1996 to |
|
| Rial
Omani 355,833 (Rs. 41.7 million). The Company has total assets of Rial Omani |
|
| 13,126,933
(Rs. 1.5 billion) and enhanced the dividend from 7.5% to 10% for 1997. |
|
| Business
conditions in Oman are good and OOL is expanding at a robust pace. |
|
|
| ORIX
Leasing Egypt (OLE) started operations in November 1997. Your Company holds |
|
| 23%
of OLE's equity and provides management support. OLE has established a good |
|
| business
base and results to date are satisfactory. The Egyptian economy is performing |
|
| well
and OLE is well placed to avail business opportunities which will increase as
the |
|
| concept
of leasing, which is new in Egypt, becomes familiar. |
|
|
| ORIX
Investment Bank Pakistan Limited (OLD) earned a profit before tax of Rs. 7.1
million |
|
| in
its half year of operations to December 31, 1997 and the bank continues to
concentrate |
|
| on
maintaining a high quality loan portfolio while seeking to improve fee based
income from |
|
| advisory
services. As experienced by other financial institutions in Pakistan, OIB's
business |
|
| is
also impacted by the slow economic conditions prevailing in the Country. |
|
|
| FUTURE
PROSPECTS |
|
| The
future economic conditions remain unclear at present and your Company's
strategy will |
|
| be
to maintain business at existing levels while ensuring that it has sufficient
funding to |
|
| meet
increased demand in the event of a turnaround in the economy. The newly
introduced |
|
| operating
lease business together with the Company's existing consumer finance |
|
| operations
will help to mitigate stagnation to some extent in the core business of
finance leasing. |
|
|
| The
Company continues to explore opportunities for investment in the Middle East
region |
|
| through
joint ventures in countries where leasing has good prospects. |
|
|
| DIRECTORS |
|
| Mr.
Rauf Ahmad Shamsi, a founding shareholder and Director of the Company expired
on |
|
| October
24, 1997. The late Mr. Shamsi had made an invaluable contribution to the |
|
| Company's
development since inception and his wisdom and guidance will be missed by |
|
| the
Company. |
|
|
| Mr.
Shaheen Amin, General Manager Oman ORIX Leasing Company SAOG, has filled the |
|
| vacancy
created by the passing away of Mr. Shamsi. Sayed Muzafar Ali Shah, Chairman
of |
|
| State
Life Insurance Corporation (SLIC) succeeded Mr. Muizuddin Ahmed on the Board |
|
| due
to the latter's transfer from SLIC. Mr. Yoshiaki Ishida, Deputy President,
ORIX |
|
| Corporation
of Japan relinquished his seat on the Board in favour of Mr. Takashi Koizumi, |
|
| Managing
Director of International Operations of ORIX Corporation. Mr. Mohammad Aslam, |
|
| Chief
Executive of ORIX Investment Bank Pakistan Limited and a Director of the
Company, |
|
| has
been transferred to an ORIX Group Company abroad. Mr. Mohammad Qamrul Haq, |
|
| General
Manager of the Company incharge of Marketing, has been appointed Director to
fill |
|
| the
vacancy created by Mr. Aslam's transfer. |
|
|
| The
Directors place on record their appreciation of the services of Mr. Yoshiaki
Ishida, Mr. |
|
| Muizuddin
Ahmad and Mr. Mohammad Aslam and welcome Mr. Takashi Koizumi, Sayed |
|
| Muzafar
Ali Shah, Mr. Shaheen Amin and Mr. Mohammad Qamrul Haq on the Board. |
|
|
| HOLDING
COMPANY |
|
| The
Company is a subsidiary of ORIX Corporation which is incorporated in Japan. |
|
|
| STAFF |
|
| The
Board places on record its appreciation of the performance of all staff
members. Their |
|
| professionalism
and dedication remains a source of strength and pride for the Company. |
|
|
| AUDITORS |
|
| The
present auditors, Sidat Hyder Qamar Maqbool and Company, retire and being
eligible offer |
|
| themselves
for re-appointment. |
|
|
| PATTERN
OF SHAREHOLDING |
|
| The
pattern of shareholding as on June 30, 1998 is shown on page 36. |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
|
| We
have audited the annexed balance sheet of ORIX Leasing Pakistan 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 |
|
| 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 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, Zakat deductible at source under the Zakat and Ushr
Ordinance, 1980 |
|
| was
deducted by the Company and deposited in the Central Zakat Fund established |
|
| under
Section 7 of that Ordinance. |
|
|
|
| FINANCIAL
STATEMENTS OF THE COMPANY |
|
|
| BALANCE
SHEET |
|
| PROFIT
AND LOSS ACCOUNT |
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| NOTES
TO THE ACCOUNTS |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1998 |
|
|
|
|
NOTE |
1998 |
1997 |
|
|
|
|
|
| ASSETS |
|
|
|
| Fixed
assets - tangible |
|
|
|
| Operating
Assets |
|
3.1 |
39,329,690 |
42,382,782 |
|
|
| Operating
Lease Assets |
|
3.2 |
45,883,264 |
-- |
|
|
| Investment
in leases and installment loans: |
|
|
|
|
| Installment
contract receivables |
|
5,017,030,464 |
5,281,275,767 |
|
|
| Unearned
Income |
|
|
(853,542,773) |
(1,046,963,897) |
|
|
|
|
|
|
--------------- |
--------------- |
|
|
| Net
investment in leases and installment loans |
4,163,487,691 |
4,234,311,870 |
|
|
| Less:
Current portion of net investment in leases |
|
|
|
| and
installment loans |
|
|
1,854,335,260 |
1,608,403,121 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
2,309,152,431 |
2,625,908,749 |
|
|
| Long
term investments |
|
4 |
126,412,619 |
126,412,619 |
|
|
| Long
term loans |
|
5 |
23,626,007 |
20,442,058 |
|
|
| Long
term deposits, prepayments and |
|
|
|
|
| deferred
costs |
|
6 |
30,050,611 |
38,764,049 |
|
|
| Current
assets |
|
7 |
2,192,042,422 |
1,834,256,457 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
Rupees |
4,766,497,044 |
4,688,166,714 |
|
|
|
========== |
========== |
|
|
|
|
|
| SHARE
CAPITAL AND LIABILITIES |
|
|
|
| Share
capital and reserves |
|
|
|
| Authorised |
|
|
|
| 25,000,000
Ordinary shares of Rs. 10/- each |
|
250,000,000 |
250,000,000 |
|
|
|
========== |
========== |
|
|
| Issued,
subscribed and paid up |
8 |
161,109,530 |
161,109,530 |
|
|
|
|
--------------- |
--------------- |
|
|
| Share
premium |
|
|
287,216,909 |
287,216,909 |
|
|
| Reserve
for issue of bonus shares |
|
40,277,380 |
-- |
|
|
| General
reserve |
|
9 |
326,218,010 |
296,218,010 |
|
|
| Unappropriated
profit |
|
6,037,576 |
4,643,293 |
|
|
|
--------------- |
--------------- |
|
|
|
659,749,875 |
588,078,212 |
|
|
|
--------------- |
--------------- |
|
|
| Shareholders'
equity |
|
|
820,859,405 |
749,187,742 |
|
|
| Allowance
for potential lease and |
|
|
|
|
| installment
loan losses |
|
|
132,568,444 |
132,010,054 |
|
|
| Redeemable
capital |
|
|
-- |
1,806,797 |
|
|
| Long
term loans |
|
10 |
1,699,670,218 |
1,946,292,015 |
|
|
| Long
term certificates of investment |
11 |
7,378,238 |
6,944,486 |
|
|
| Deferred
liability - gratuity |
|
|
10,604,575 |
7,656,911 |
|
|
| Long
term advances and deposits |
12 |
576,215,899 |
505,553,024 |
|
|
| Current
liabilities |
|
13 |
1,519,200,265 |
1,338,715,685 |
|
|
| Contingencies
and commitments |
14 |
-- |
-- |
|
|
|
--------------- |
--------------- |
|
|
|
|
Rupees |
4,766,497,044 |
4,688,166,714 |
|
|
|
========== |
========== |
|
|
|
|
|
|
|
| AUDITORS'
REPORT ANNEXED |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 1998 |
|
|
|
|
|
|
|
NOTE |
1998 |
1997 |
|
|
| Income
from: |
|
|
|
| Finance
lease |
|
15 |
713,931,367 |
690,297,653 |
|
|
| Installment
loans |
|
|
43,516,669 |
43,204,436 |
|
|
| Operating
lease |
|
|
9,104,378 |
-- |
|
|
| Others |
|
16 |
72,530,240 |
48,723,230 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
839,082,654 |
782,225,319 |
|
|
|
|
|
|
|
|
| Less: |
|
|
|
|
|
| Finance
and bank charges |
|
17 |
536,988,511 |
474,359,882 |
|
|
| Selling,
general and administrative expenses |
18 |
115,171,699 |
99,736,283 |
|
|
| Direct
cost of leases |
|
|
|
|
|
| Finance
lease and installment loans |
19.1 |
21,635,198 |
15,864,257 |
|
|
| Operating
lease |
|
19.2 |
3,276,437 |
-- |
|
|
| Allowance
for potential lease losses |
|
28,117,240 |
35,167,990 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
705,189,085 |
625,128,412 |
|
|
|
|
--------------- |
--------------- |
|
|
| Operating
profit |
|
|
133,893,569 |
157,096,907 |
|
|
| Provision
for taxation |
|
22 |
30,000,000 |
25,000,000 |
|
|
|
|
|
--------------- |
--------------- |
|
|
| Profit
for the year |
|
|
103,893,569 |
132,096,907 |
|
|
| Unappropriated
profit brought forward |
|
4,643,293 |
10,045,675 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
108,536,862 |
142,142,582 |
|
|
|
|
|
|
|
| APPROPRIATIONS: |
|
|
|
|
|
| Transfer to: |
|
|
|
|
|
| General
reserve |
|
|
30,000,000 |
65,000,000 |
|
|
| Reserve
for issue of bonus shares |
|
40,277,380 |
-- |
|
|
| Proposed
dividend @ 20% (1997: @45%) |
|
32,221,906 |
72,499,289 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
102,499,286 |
137,499,289 |
|
|
|
|
|
--------------- |
--------------- |
|
|
| Unappropriated
profit carried forward |
Rupees |
6,037,576 |
4,643,293 |
|
|
|
|
========== |
========== |
|
|
| Earning
per share - Basic and Diluted |
23 |
6.45 |
8.20 |
|
|
|
========== |
========== |
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| FOR THE YEAR ENDED JUNE 30, 1998 |
|
|
|
1998 |
1997 |
|
|
|
|
|
| CASHFLOWS
FROM OPERATING ACTIVITIES |
|
|
|
| Profit
for the year |
|
|
133,893,569 |
157,096,907 |
|
|
| Add:
Adjustment to reconcile profit to net cash |
|
|
|
| provided
by operating activities |
|
|
|
|
| Depreciation
and amortisation |
|
31,781,829 |
27,145,716 |
|
|
| Allowance
for potential lease losses - net |
|
558,390 |
7,452,837 |
|
|
| Provision
for staff retirement benefits - net |
|
2,947,664 |
2,373,141 |
|
|
| Provision
for mark up on long term finance |
|
533,574 |
21,711,137 |
|
|
| Gain
on sale of fixed assets |
|
|
(1,052,557) |
(446,650) |
|
|
|
--------------- |
--------------- |
|
|
| Net
cash provided by operating activities |
|
168,682,469 |
215,333,088 |
|
|
| Increase
in current assets |
|
(38,098,908) |
(35,257,901) |
|
|
| Increase
in current liabilities |
|
3,884,829 |
21,335,483 |
|
|
|
|
|
|
--------------- |
--------------- |
|
|
| Net
cash from operating activities |
|
134,448,390 |
201,410,670 |
|
|
|
|
|
|
|
|
|
|
|
|
| CASHFLOWS
FROM INVESTING ACTIVITIES |
|
|
|
| Investment
in leases - net |
|
70,824,179 |
(451,841,950) |
|
|
| Investments |
|
12,500,000 |
(39,300,347) |
|
|
| Capital
expenditure |
|
(59,168,546) |
(18,070,307 |
|
|
| Long
term loans and advances - net |
|
(3,375,143) |
(2,808,024 |
|
|
| Proceeds
from sale of fixed assets |
|
3,729,941 |
1,802,856 |
|
|
|
|
--------------- |
--------------- |
|
|
| Net
cash generated from/(used in) investing activities |
24,510,431 |
(510,217,772) |
|
|
|
|
|
| CASHFLOWS
FROM FINANCING ACTIVITIES |
|
|
|
| Long
term loans |
|
657,786,970 |
1,035,382,130 |
|
|
| Shod
term loans and running finance |
|
(235,085,656) |
(219,297,966) |
|
|
| Certificates
of investment |
|
145,332,777 |
55,169,163 |
|
|
| Deposits
from lessees - net |
|
114,025,574 |
117,643,687 |
|
|
| Repayment
of redeemable capital and mark up |
(19,902,976) |
(156,087,264) |
|
|
| Repayment
of long term loans |
|
(653,145,097) |
(373,214,270) |
|
|
| Long
term deposits, prepayments and deferred costs |
(9,407,401) |
(30,875,886) |
|
|
| Payment
of dividend |
|
(72,499,289) |
(68,781,279) |
|
|
|
|
--------------- |
--------------- |
|
|
| Net
cash (used in)/generated from financing activities |
(72,895,098) |
359,938,315 |
|
|
|
|
--------------- |
--------------- |
|
|
| Net
increase in cash activities |
|
86,063,723 |
51,131,213 |
|
|
| Cash
and bank balances at beginning of the year |
125,087,479 |
73,956,266 |
|
|
|
|
--------------- |
--------------- |
|
|
| Cash
and bank balances at end of the year |
|
211,151,202 |
125,087,479 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 1998 |
|
|
| 1.
LEGAL STATUS AND NATURE OF BUSINESS |
|
| The
Company was incorporated in Pakistan as a private limited company on July 1,
1986 and |
|
| was
converted into a public limited company on December 23, 1987. The Company is
listed on |
|
| Karachi,
Lahore and Islamabad Stock Exchanges. The main business activity is leasing
of |
|
| moveable
assets. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
Accounting convention |
|
| These
financial statements have been prepared under the historical cost convention. |
|
|
| 2.2
Revenue Recognition |
|
|
| 2.2.1
Finance lease and installment loans |
|
| The
Company follows the "financing method" in accounting for
recognition of lease and |
|
| installment
loan income. |
|
|
| At
the commencement of a lease, the total unearned lease income consists of the
excess of |
|
| aggregate
lease contract receivables over the cost of the leased equipment. At the time
a lease |
|
| is
executed, a portion of unearned lease income which approximates the initial
costs directly |
|
| associated
with negotiating and consummating the lease plus an amount equal to the |
|
| allowance
for potential lease losses is taken into income. The remainder of the
unearned lease |
|
| income
is taken into income over the term of the lease, starting with the month in
which the |
|
| lease
is executed, so as to produce a systematic return on the net investment in
the lease. |
|
|
| 2.2.2
Operating lease |
|
| Rental
income from assets given on operating lease is recognised on accrual basis
over the |
|
| lease period. |
|
|
| 2.3
Allowance for potential lease losses |
|
| The
allowance for potential lease losses is maintained at a level which, in the
judgement of |
|
| management,
is adequate to provide for potential losses on lease portfolio that can be |
|
| reasonably
anticipated. The allowance is increased by provisions charged to income and
is |
|
| decreased
by charge offs, net of recoveries. |
|
|
| 2.4
Tangible fixed assets and depreciation |
|
|
| 2.4.1
Operating assets - own use |
|
| Fixed
assets are stated at cost less accumulated depreciation. Depreciation is
charged to |
|
| income
applying straight line method, whereby cost of an asset is written off over
its estimated |
|
| useful
life. In respect of additions and deletions of assets during the year,
depreciation is |
|
| charged
from the month of acquisition and upto the month preceding the deletion
respectively. |
|
|
| Maintenance
and repairs are charged to income as and when incurred. Major renewals and |
|
| improvements
are capitalised and the assets so replaced, if any, are retired. Gains and
losses |
|
| on
disposal of assets, if any, are included in income currently. |
|
|
| 2.4.2
Operating lease assets |
|
| Assets
leased out are stated at cost less accumulated amortisation. Amortisation is
charged to |
|
| income
applying annuity method whereby the depreciable values of assets are
amortised over |
|
| the
estimated useful life. |
|
|
| Maintenance
and repairs are charged to income as and when incurred. Major renewals and |
|
| improvements
are capitalised and the assets so replaced, if any, are retired. Gains and
losses |
|
| on
disposal of assets, if any, are included in income currently. |
|
|
| 2.5
Long term investments |
|
| These
are stated at cost. Return on investment is recognised at rates specified in
the |
|
| respective
investment schemes and accrued for the period. Income is recognised on the |
|
| assumption
that such investments will be held till the terminal date. |
|
|
| Investment
in associated companies is stated at cost. Provision for diminution in value
of |
|
| investments
other than temporary, if any, is made in income in the year of occurrence. |
|
| Dividend
income is recognised when the right to receive the dividend is established. |
|
|
| 2.6
Deferred costs |
|
|
| 2.6.1
Loans |
|
| Loan
originating costs, front end fee and documentation costs are amortised over
the loan |
|
| period
or five years, whichever is shorter. |
|
|
| 2.6.2
Project development costs |
|
| Expenditure
incurred in connection with development of various projects and joint
ventures are |
|
| classified
as project development costs and upon completion of such projects or joint
ventures |
|
| are
amortised over a period of five years. |
|
|
| 2.7
Staff retirement benefits |
|
| The
Company operates an unfunded gratuity scheme covering all its permanent
employees |
|
| who
have completed the minimum qualifying period of six months. |
|
|
| 2.8
Foreign currencies |
|
| Transactions
in foreign currencies are accounted for in rupees at the rate prevailing on
the |
|
| date
of transaction. Monetary assets and liabilities in foreign currencies are
translated into |
|
| rupees
at the rate of exchange prevailing at the balance sheet date. Realised and
unrealised |
|
| exchange
gains and losses are dealt with in the profit and loss account. Foreign
currency |
|
| loans
registered under Exchange Risk Coverage Scheme of the State Bank of Pakistan
(SBP) |
|
| are
translated into rupees at the rate prevailing on the date of disbursement. |
|
|
| 2.9
Offsetting of financial assets and financial liabilities |
|
| A
financial asset and a financial liability is offset and the net amount
reported in the balance |
|
| sheet,
if the Company has the legal enforceable right to set off the transaction and
also intends |
|
| either
to settle on a net basis or to realise the asset and settle the liability
simultaneously. |
|
|
| 2.10
Taxation |
|
|
| 2.10.1
Current |
|
| Income
for the purposes of computing current taxation is determined under the
provisions of |
|
| tax
law whereby lease rentals received or receivable by the Company are deemed to
be |
|
| income.
Provision for taxation is thus based on income determined in accordance with
the |
|
| accounting
policy explained in Note 2.2 and adjusted in accordance with the requirements
of |
|
| the tax law. |
|
|
| 2.10.2
Deferred |
|
| The
Company accounts for deferred taxation using the liability method on timing
differences |
|
| arising
from using the different methods in the recognition of lease income for tax
purposes |
|
| and
accounting purposes as well as for all other significant timing differences.
However, |
|
| deferred
tax is not provided if it can be established that timing differences will not
reverse in |
|
| the
foreseeable future. |
|
|
|
| 3.
FIXED ASSETS-tangible |
|
|
|
| 3.1
Operating assets |
|
|
|
|
| ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
|
|
|
Additions/ |
|
Accumulated |
Book |
Depreciation |
|
|
Cost at |
(Deletions)/ |
Cost at |
depreciation at |
value at |
For |
Rate |
|
|
July 1, 1997 |
(Transfer)* |
June 30, 1998 |
June 30, 1998 |
June 30, 1998 |
the year |
(%) |
|
| ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
|
| Leasehold |
|
| improvements |
12,917,296 |
2,092,900 |
15,010,196 |
10,933,214 |
4,076,982 |
1,734,993 |
15 |
|
|
|
|
|
|
|
|
| Furniture
and |
|
|
|
|
| office
equipment |
24,568,800 |
5,419,592 |
29,773,787 |
14,670,435 |
15,103,352 |
3,640,225 |
15 |
|
|
|
|
(214,605) |
|
|
|
|
|
|
|
|
|
|
|
| Motor
vehicles |
39,143,210 |
6,970,854 |
37,828,174 |
17,678,818 |
20,149,356 |
6,895,082 |
20 |
|
|
|
|
|
(5,383,840) |
|
|
|
|
|
|
|
|
(2,902,050) * |
|
|
|
|
|
|
-------------------------------------------------------------------------------------------------------------------- |
|
|
|
| Rupees |
|
76,629,306 |
14,483,346 |
82,612,157 |
43,282,467 |
39,329,690 |
12,270,300 |
|
|
|
|
|
|
(5,598,445) |
|
|
|
|
|
|
(2,902,050) * |
|
|
|
|
======================================================================== |
|
|
|
| 1997-Rupees |
61,972,503 |
18,070,307 |
76,629,306 |
34,246,524 |
42,382,782 |
11,057,559 |
|
|
|
|
|
|
(3,413,504) |
|
|
|
|
|
======================================================================== |
|
|
| *
Represents assets transferred to operating lease assets during the year. |
|
|
| 3.1.1
Movement of accumulated depreciation during the year: |
|
|
|
| ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
|
|
|
|
Accumulated |
Depreciation |
Adjustment |
Accumulated |
|
|
|
|
depreciation |
charged |
on disposal/ |
depreciation |
|
|
|
|
as at |
during the |
transfer during |
as at June |
|
|
|
July 1, 1997 |
year |
the year |
30, 1998 |
|
| ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
|
| Leasehold
improvements |
|
9,198,221 |
1,734,993 |
-- |
10,933,214 |
|
| Furniture
and office equipment |
11,189,923 |
3,640,225 |
159,713 |
14,670,435 |
|
| Motor
vehicles |
|
13,858,380 |
6,895,082 |
3,074,644 |
17,678,818 |
|
|
|
----------------------------------------------------------------------------- |
|
| Rupees |
|
34,246,524 |
12,270,300 |
3,234,357 |
43,282,467 |
|
|
|
================================================ |
|
| 1997
- Rupees |
|
25,246,263 |
11,057,559 |
2,057,298 |
34,246,524 |
|
|
|
================================================ |
|
|
|
| 3.1.2
Assets deleted during the year: |
|
| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
|
|
|
Accumulated |
Book |
Sale |
Mode of |
Sold |
|
|
| Description |
Cost |
depreciation |
Value |
Proceeds |
Disposal |
to |
|
|
| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
| Suzuki
Mehran |
215,575 |
168,871 |
46,704 |
46,704 |
Company Policy |
Shafiq-ur-Rehman(Employee) |
|
| Suzuki
Mehran |
304,000 |
15,200 |
288,800 |
290,000 |
Ins. Claim |
Adamjee Insurance Co. Ltd |
|
| Suzuki
Mehran |
315,000 |
63,000 |
252,000 |
290,000 |
Ins. Claim |
Adamjee Insurance Co. Ltd |
|
| Suzuki
Mehran |
315,000 |
42,000 |
273,000 |
290,000 |
Ins. Claim |
Adamjee Insurance Co. Ltd |
|
| Suzuki
Mehran |
197,100 |
151,110 |
45,990 |
45,990 |
Company Policy |
Wasim Khan (Employee) |
|
| Suzuki
Mehran |
223,125 |
137,603 |
85,522 |
85,522 |
Company Policy |
Samiullah Durrani
(Employee) |
|
| Suzuki
Mehran |
290,000 |
9,667 |
280,333 |
290,000 |
Ins. Claim |
Adamjee Insurance Co. Ltd |
|
| Suzuki Alto |
|
160,075 |
160,074 |
1 |
87,000 |
Negotiation |
S.A.A. Qidwai |
|
|
| Suzuki Alto |
|
149,220 |
149,219 |
1 |
105,000 |
Negotiation |
Syed Shahid Hussain. |
|
| Suzuki Alto |
|
147,220 |
147,219 |
1 |
98,000 |
Negotiation |
Khursheed Begum |
|
| Suzuki
Mehran |
150,835 |
150,834 |
1 |
140,000 |
Negotiation |
Abdul Majid |
|
| Suzuki
Mehran |
290,000 |
9,667 |
280,333 |
290,000 |
Ins. Claim |
Adamjee Insurance Co. Ltd |
|
| Toyota
Corolla |
284,950 |
227,952 |
56,998 |
58,553 |
Company Policy |
Imtiaz Ali (Employee) |
|
| Suzuki
Mehran |
198,020 |
184,819 |
13,201 |
135,000 |
Negotiation |
Qaiser Jaweed |
|
| Suzuki
Khyber |
317,200 |
200,906 |
116,294 |
134,717 |
Company Policy |
M. Sharqat Pervaiz
(Employee) |
|
| Honda Civic |
|
615,000 |
276,750 |
338,250 |
417,000 |
Negotiation |
Fazl-e-Ghani Mian |
|
| Suzuki
Mehran |
148,070 |
148,069 |
1 |
137,000 |
Negotiation |
A. Waheed Khan |
|
| Suzuki
Mehran |
247,700 |
156,864 |
90,836 |
93,772 |
Company Policy |
Sadia Usman (Employee) |
|
| Suzuki
[Mehran |
290,000 |
33,833 |
256,167 |
280,000 |
Ins. Claim |
Adamjee Insurance Co. Ltd |
|
| Suzuki
Mehran |
210,250 |
196,233 |
14,017 |
93,000 |
Negotiation |
Syed Sajid |
|
| Suzuki
Mehran |
315,500 |
131,458 |
184,042 |
240,000 |
Ins. Claim |
Adamjee Insurance Co. Ltd |
|
| Panasonic |
|
|
|
|
| Mobile
Phone |
40,925 |
34,786 |
6,139 |
1,000 |
Negotiation |
Jawaid Electronics |
|
| Panasonic |
|
|
|
|
| Mobile
Phone |
40,925 |
37,856 |
3,069 |
1,500 |
Negotiation |
Faisal Mahmood Malik |
|
| PABX |
|
43,145 |
43,144 |
1 |
9,000 |
Ins. Claim |
Adamjee Insurance Co. Ltd |
|
| Computer |
|
36,000 |
31,500 |
4,500 |
30,000 |
Ins. Claim |
EFU General Insurance Co.
Ltd. |
|
| Electrical appliances |
29,110 |
6,914 |
22,196 |
22,196 |
Company Policy |
Gerard Vaaz (Employee) |
|
| Electrical appliances |
24,500 |
5,513 |
18,987 |
18,987 |
Company Policy |
Ahmed H. Madina
(Employee) |
|
|
----------------------------------------------------------------------------- |
|
|
| Rupees |
|
5,598,445 |
2,921,061 |
2,677,384 |
3,729,941 |
|
|
|
================================================ |
|
|
| 3.2
Operating lease assets |
|
| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
|
|
Additions/ |
|
Accumulated |
Book |
Amortisation |
|
|
Cost at |
(Deletions)/ |
Cost at |
amortisation at |
value at |
for |
|
|
July 1, 1997 |
(Transfer)* |
June 30, 1998 |
June 30, 1998 |
June 30, 1998 |
the year |
|
| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
| Machinery
and |
|
| Equipment |
|
-- |
30,528,200 |
30,528,200 |
516,260 |
30,011,940 |
516,260 |
|
|
|
|
|
| Office
equipment |
-- |
385,000 |
385,000 |
20,263 |
364,737 |
20,263 |
|
|
|
|
|
| Motor
vehicles |
-- |
13,772,000 |
16,674,050 |
1,167,463 |
15,506,587 |
854,167 |
|
|
|
|
2,902,050* |
|
|
|
|
--------------------------------------------------------------------------------------------------------------------- |
|
| Rupees |
|
-- |
44,685,200 |
47,587,250 |
1,703,986 |
45,883,264 |
1,390,690 |
|
|
|
|
2,902,050* |
|
|
|
|
========================================================================== |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 3.2.1
Movement of accumulated amortisation during the year: |
|
| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
|
|
Accumulated |
Amortisation |
Transfer * |
Accumulated |
|
|
|
amortisation |
charged |
|
amortisation |
|
|
|
as at |
during the |
|
as at |
|
|
|
July 1, 1997 |
year |
|
June 30, 1998 |
|
| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
| Machinery
and Equipment |
|
-- |
516,260 |
-- |
516,260 |
|
| Office
equipment |
|
-- |
20,263 |
-- |
20,263 |
|
| Motor
vehicles |
|
-- |
854,167 |
313,296 |
1,167,463 |
|
|
|
----------------------------------------------------------------------------- |
|
| Rupees |
|
-- |
1,390,690 |
313,296 |
1,703,986 |
|
|
|
================================================ |
|
|
| *
Represents assets transferred from operating assets during the year. |
|
|
|
|
NOTE |
1998 |
1997 |
|
|
| 4.
LONG TERM INVESTMENTS - at cost |
|
|
|
| Federal
Investment Bonds |
|
4.1 |
7,915,000 |
7,915,000 |
|
|
| In
associated companies |
|
|
|
|
|
| - Quoted |
|
4.2 |
63,974,052 |
63,974,052 |
|
|
| - Unquoted |
|
4.3 |
54,523,567 |
54,523,567 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
118,497,619 |
118,497,619 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
126,412,619 |
126,412,619 |
|
|
|
|
========== |
========== |
|
|
|
| 4.1
Represents investment made in Government Securities as required under the
relevant |
|
| provision
of the State Bank of Pakistan's Rules for Non-Bank Financial Institutions to
maintain |
|
| liquidity
against certain liabilities. The securities are redeemable within a period of
six months |
|
| (included
in short term investments as per note 7) to ten years and earn mark up
varying from |
|
| 15%
per annum to 15.64% per annum receivable half yearly from the date of issue. |
|
|
| 4.2 Quoted |
|
| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
| Name of |
|
Equity held |
No. of |
Currency of |
Cost price |
Cost of |
Cost of |
Market value |
|
| associated |
|
(%) |
shares |
investment |
per share |
investment |
investment |
of investment |
|
| company |
|
|
held |
|
as at |
as at |
as at |
|
|
|
June 30, 1998 |
June 30, 1998 |
June 30, 1998 |
|
| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
| Oman
ORIX Leasing |
|
| Company
SAOG |
20 |
400,000 |
Rial Omani |
RO 1 each |
RO 400,000 |
33,974,052 |
135,521,688 |
|
|
|
|
|
|
| ORIX
Investment Bank |
|
|
|
| Pakistan
Limited |
15 |
3,000,000 |
Pak Rupees |
Rs. 10 each |
Rs. 30,000,000 |
30,000,000 |
13,500,000 |
|
| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
|
|
|
|
Rupees |
63,974,052 |
149,021,688 |
|
| ============================================================================================================================= |
|
|
| 4.3
Unquoted |
|
| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
| Name of |
|
Equity held |
No. of |
Currency of |
Cost price |
Cost of |
Cost of |
|
| associated |
|
(%) |
shares |
investment |
per share |
investment |
investment as at |
|
| company |
|
|
held |
|
as at |
June 30, 1998 |
|
|
|
|
June 30, 1998 |
Rupees |
|
| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
| ORIX
Leasing Egypt SAE |
23 |
46,000 |
Egyptian Pounds |
EP. 100 each |
EP. 4,600,000 |
54,523,567 |
|
| ============================================================================================================================= |
|
|
| The
net asset value per share was Egyptian Pound 101/- each (Pak Rupees 1,366/-
per share). |
|
|
|
|
|
NOTE |
1998 |
1997 |
|
|
|
|
|
|
|
| 5.
LONG TERM LOANS - secured, considered good |
|
|
|
| Loans
to employees: |
|
|
|
| Chief
Executive |
|
3,537,273 |
3,621,194 |
|
|
| Director |
|
|
1,652,939 |
-- |
|
|
| Executives |
|
|
20,601,061 |
18,182,083 |
|
|
| Other
employees |
|
505,936 |
1,118,789 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
26,297,209 |
22,922,066 |
|
|
| Less:
Current portion |
2,671,202 |
2,480,008 |
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
23,626,007 |
20,442,058 |
|
|
|
|
|
========== |
========== |
|
|
| Recoverable
after three years |
Rupees |
20,955,612 |
18,492,333 |
|
|
| Others |
|
Rupees |
2,670,395 |
1,949,725 |
|
|
|
========== |
========== |
|
|
|
|
|
| Loans
to Chief Executive, Director and Executives include house loans in accordance
with terms |
|
|
| of
the Company's employment policy, repayable within a period of 20 years or
retirement date |
|
|
| whichever
is earlier except for the loan to Chief Executive which is repayable within
ten years. The |
|
| loans
are secured against equitable mortgage on the property by depositing the
title documents of |
|
|
| the
property with the Company and carry mark up of 5% per annum. Loans to other
employees |
|
|
| include
motor cycle loans, repayable within a period of five years and do not carry
any mark up. |
|
|
|
|
|
| Maximum
amount outstanding at the end of any month during the year against loans to
Chief |
|
|
| Executive,
Director and Executives is Rs. 26,930,915/- (1997: Rs. 23,485,351/-) |
|
|
|
|
|
|
| 6.
LONG TERM DEPOSITS, PREPAYMENTS AND DEFERRED COSTS |
|
|
|
|
|
|
| Deposits |
|
|
2,877,813 |
2,220,813 |
|
|
| Prepayments |
|
|
-- |
26,400 |
|
|
| Deferred
costs |
|
6.1 |
27,172,798 |
36,516,836 |
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
30,050,611 |
38,764,049 |
|
|
|
========== |
========== |
|
|
|
|
|
|
| 6.1
Deferred Costs |
|
|
|
|
|
|
| Loan
originating cost |
|
6.1.1 |
5,298,669 |
9,688,936 |
|
|
| Commitment
charges |
|
6.1.2 |
186,291 |
372,579 |
|
|
| Exchange
differences on: |
|
|
|
|
|
| Repayment
of foreign currency loans |
6.1.3 |
4,532,068 |
6,894,696 |
|
|
| Hedging
of foreign currency loans |
6.1.4 |
10,189,928 |
13,536,664 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
14,721,996 |
20,431,360 |
|
|
| Project
development costs |
|
6.1.5 |
6,965,842 |
6,023,961 |
|
|
|
|
|
--------------- |
--------------- |
|
|
| Rupees |
|
|
27,172,798 |
36,516,836 |
|
|
|
========== |
========== |
|
|
|
|
| 6.1.1
Represents loan originating costs paid to lending institutions on signing of
various loans. |
|
| These
are being written off over loan period or five years, whichever is shorter. |
|
|
| 6.1.2
Represents commitment charges on loans from international lending
institutions during the |
|
| unregistered
period with the SBP which has been calculated from the loan offer date till
the |
|
| registration
of loan with the SBP. These are being written off over the loan period or
five years, |
|
| whichever
is shorter. |
|
|
| 6.1.3
Represents the increase in the amount of foreign currency loans resulting
from the difference |
|
| in
buying and selling rates of foreign currency as determined by the SBP.
Receipts of loans are |
|
| at
buying rates and are the actual amount realised in Pak rupees. Repayments,
when due, will |
|
| be
made at selling rates in accordance with the SBP rules. The difference
arising from the use |
|
| of
above mentioned rates is treated as deferred cost to be written off over the
loan period or |
|
| five
years, whichever is shorter. |
|
|
| 6.1.4
In the absence of Exchange Risk Cover by the SBP, the Company has adopted an
alternative |
|
| method
to hedge foreign exchange risk associated with its foreign currency
borrowings. This |
|
| involves
purchasing foreign currency from the secondary market, placing the foreign
currency on |
|
| deposit
and obtaining credit facilities against these deposits in local currency on
matching basis. |
|
|
| Premium
paid on purchase of foreign currency from the secondary market is deferred
and is |
|
| written
off over the loan period or five years, whichever is shorter. |
|
|
| 6.1.5
This represents expenditure in connection with development of joint ventures
already |
|
| completed
and new projects being explored in the Middle East region and are being
amortised |
|
| in
accordance with the policy mentioned in Note 2.6.2. |
|
|
| 7.
CURRENT ASSETS |
|
|
| Current
portion of net investment in leases, |
|
| installment
loans and long term loans |
7.1 |
1,857,006,462 |
1,610,883,129 |
|
|
| Short
term loans - secured |
|
7.2 |
14,500,000 |
14,590,000 |
|
|
| Short
term investments |
|
4.1 |
10,000,000 |
22,500,000 |
|
|
| Other
current assets |
|
7.3 |
99,384,758 |
61,195,849 |
|
|
| Cash
and bank balances |
|
7.4 |
211,151,202 |
125,087,479 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
2,192,042,422 |
1,834,256,457 |
|
|
|
========== |
========== |
|
|
|
|
|
|
| 7.1
Current maturity |
|
|
|
|
|
|
| Net
investment in leases and installment loans |
1,854,335,260 |
1,608,403,121 |
|
|
| Long
term loans |
|
2,671,202 |
2,480,008 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
Rupees |
1,857,006,462 |
1,610,883,129 |
|
|
|
========== |
========== |
|
|
|
|
|
|
| 7.2
Represents short term finance facilities provided on secured basis in the
normal course of |
|
|
| business. |
|
|
|
|
|
|
|
|
|
|
|
NOTE |
1998 |
1997 |
|
|
|
|
|
|
| 7.3
Other current assets |
|
|
|
|
|
|
| Advances
- unsecured, considered good |
|
2,601,629 |
2,801,910 |
|
|
| Advance
payment of income tax |
|
43,399,377 |
21,451,812 |
|
|
| Advance
payment of wealth tax |
|
40,000 |
-- |
|
|
| Short
term prepayments: |
|
|
|
|
|
| Insurance |
|
|
|
|
|
|
| Leased
assets |
|
|
12,257,748 |
7,800,428 |
|
|
| Own assets |
|
|
|
1,609,422 |
19,458 |
|
|
| Rent |
|
|
|
153,960 |
695,481 |
|
|
| Others |
|
|
|
3,927,937 |
3,152,591 |
|
|
|
--------------- |
--------------- |
|
|
|
|
|
17,949,067 |
11,667,958 |
|
|
| Accrued
return on investments and deposits |
|
30,463,366 |
15,807,080 |
|
|
| Dividend
receivable from an associated company |
-- |
3,172,200 |
|
|
| Operating
lease rents receivables |
|
2,953,785 |
-- |
|
|
| Other
receivables |
|
|
1,977,534 |
6,294,889 |
|
|
|
--------------- |
--------------- |
|
|
|
|
|
Rupees |
99,384,758 |
61,195,849 |
|
|
|
========== |
========== |
|
|
|
|
|
|
| 7.4
Cash and bank balances |
|
|
|
| Balances
with banks on: |
|
|
|
| Current
account |
|
|
2,581,982 |
3,870,375 |
|
|
| Deposit
account |
|
7.4.1 |
122,985,239 |
93,665,469 |
|
|
| Foreign currency deposit
account under lien |
7.4.2 |
85,154,703 |
27,307,024 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
210,721,924 |
124,842,868 |
|
|
| Cash
in hand |
|
|
429,278 |
244,611 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
211,151,202 |
125,087,479 |
|
|
|
|
========== |
========== |
|
|
|
| 7.4.1
Includes a deposit of Rs. 1,050,000/- with the SBP as required under the
relevant provision |
|
| of
the State Bank of Pakistan's Rules for Non-Bank Financial Institutions to
maintain liquidity |
|
| against
certain liabilities. |
|
|
| 7.4.2
Foreign currency deposit account under lien |
|
| Foreign
currency deposits |
|
|
489,108,626 |
320,747,961 |
|
|
| Credit
facilities availed |
|
7.4.2.1 |
(403,953,923) |
(293,440,937) |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
85,154,703 |
27,307,024 |
|
|
|
========== |
========== |
|
|
|
| 7.4.2.1
As explained in Note 6.1.4 local currency credit facilities secured against
foreign currency |
|
| deposits
have been obtained to hedge against exchange risk associated with foreign
currency |
|
| borrowings
and have been offset in accordance with the policy stated in Note 2.9. The
rate of |
|
| mark
up ranges from 13.86% to 16% per annum. The maturity of credit facilities and
foreign |
|
| currency
deposits are upto September 2003. |
|
|
|
1998 |
1997 |
|
|
| 8.
ISSUED, SUBSCRIBED AND PAID UP SHARE CAPITAL |
|
|
| 13,106,249
(1997:13,106,249) ordinary shares of |
|
| Rs.
10/- each fully paid in cash |
|
131,062,490 |
131,062,490 |
|
|
|
|
|
|
|
| 3,004,704
(1997: 3,004,704) ordinary shares of |
|
|
|
| Rs. 10/- each
issued as bonus shares |
30,047,040 |
30,047,040 |
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
161,109,530 |
161,109,530 |
|
|
|
========== |
========== |
|
|
|
| ORIX
Corporation, Japan and its nominees held 9,195,647 (1997: 9,195,647) ordinary
shares |
|
| of
Rs. 10/- each at June 30, 1998. |
|
|
| 9.
GENERAL RESERVE |
|
|
| At
beginning of the year |
|
|
296,218,010 |
227,500,000 |
|
|
| Reversal
of dividend |
|
|
-- |
3,718,010 |
|
|
| Transfer
from profit and loss account |
|
30,000,000 |
65,000,000 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
326,218,010 |
296,218,010 |
|
|
|
========== |
========== |
|
|
| 10.
LONG TERM LOANS - secured |
|
| ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
| Note |
Sanctioned |
Utilised amount |
Rupees |
Mark up |
Exchange |
|
|
amount |
1998 |
1997 |
1998 |
1997 |
rate |
risk fee |
|
|
|
|
(%) |
(%) |
|
| ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
|
(in millions) |
|
| ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
| Foreign
currency loans |
|
| US Dollars |
|
|
| 10.1 |
5.0 |
5.0 |
5.0 |
-- |
19,838,876 |
10.8 |
3.88 |
|
| 10.2 |
5.0 |
5.0 |
5.0 |
-- |
19,765,207 |
1.5 |
5.00 |
|
|
over LIBOR |
|
|
| 10.3 |
10.0 |
10.0 |
10.0 |
69,527,849 |
115,879,714 |
9.4 |
7.08 |
|
| 10.4 |
20.0 |
9.8 |
9.8 |
453,178,377 |
397,021,686 |
2.13 |
-- |
|
|
|
|
|
over LIBOR |
|
|
| 10.5 |
12.5 |
12.5 |
12.5 |
245,064,035 |
289,621,095 |
8.5 |
6.66 |
|
| 10.6 |
3.3 |
3.3 |
3.3 |
38,329,500 |
100,739,430 |
2.75 |
-- |
|
|
over LIBOR |
|
|
| 10.7 |
16.5 |
18.5 |
13.0 |
586,355,071 |
456,872,094 |
16.0 |
Inclusive in |
|
|
|
|
|
mark up |
|
| ----------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
|
72.3 |
64.1 |
58.6 |
1,392,454,832 |
1,399,738,102 |
|
| ----------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
| Netherland
Guilders |
|
|
| 10.8 |
10.0 |
10.0 |
10.0 |
86,076,750 |
120,507,350 |
10.2 |
5.00 |
|
| 10.9 |
4.0 |
4.0 |
4.0 |
26,148,068 |
43,580,168 |
10.2 |
5.00 |
|
| ----------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
|
14.0 |
14.0 |
14.0 |
112,224,818 |
164,087,518 |
|
| ----------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
|
|
| Local
currency loans |
|
| RUPEES |
|
| ----------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
| 10.10 |
20.0 |
20.0 |
20.0 |
-- |
1,666,667 |
17.50 |
|
|
| 10.11 |
342.5 |
342.5 |
342.5 |
114,166,666 |
228,333,333 |
18.50 |
|
|
| 10.12 |
50.0 |
50.0 |
50.0 |
16,666,667 |
33,333,334 |
18.00 |
|
|
| 10.13 |
50.0 |
50.0 |
50.0 |
16,666,666 |
33,333,333 |
18.00 |
|
|
| 10.14 |
25.0 |
25.0 |
25.0 |
12,079,914 |
19,958,735 |
18.50 |
|
|
| 10.15 |
40.0 |
40.0 |
40.0 |
19,999,999 |
33,333,333 |
18.50 |
|
|
| 10.16 |
100.0 |
100.0 |
100.0 |
90,000,000 |
100,000,000 |
18.00 |
|
|
| 10.17 |
50.0 |
50.0 |
50.0 |
33,333,333 |
50,000,000 |
19.00 |
|
|
| 10.18 |
100.0 |
100.0 |
100.0 |
100,000,000 |
100,000,000 |
19.00 |
|
|
| 10.19 |
30.0 |
30.0 |
30.0 |
30,000,000 |
30,000,000 |
18.00 |
|
|
| 10.20 |
100.0 |
100.0 |
100.0 |
-- |
100,000,000 |
18.50 |
|
|
| 10.21 |
120.0 |
120.0 |
120.0 |
60,000,000 |
120,000,000 |
18.50 |
|
|
| 10.22 |
100.0 |
100.0 |
-- |
87,500,000 |
-- |
17.25 |
|
|
| 10.23 |
50.0 |
50.0 |
-- |
50,000,000 |
-- |
17.65 |
|
|
| 10.24 |
40.0 |
40.0 |
-- |
33,333,334 |
-- |
17.50 |
|
|
| 10.25 |
50.0 |
50.0 |
-- |
50,000,000 |
-- |
18.50 |
|
|
| 10.26 |
100.0 |
100.0 |
-- |
100,000,000 |
-- |
18.50 |
|
|
| 10.27 |
50.0 |
50.0 |
-- |
50,000,000 |
-- |
17.50 |
|
|
| 10.28 |
50.0 |
50.0 |
-- |
50,000,000 |
-- |
17.75 |
|
|
| ---------------------------------------------------------------------------------------------------------------------------------------- |
|
|
1,467.5 |
1467.5 |
1,027.5 |
913,746,579 |
849,958,735 |
|
| ---------------------------------------------------------------------------------------------------------------------------------------- |
|
|
|
|
2,418,426,229 |
2,413,784,355 |
|
| Less:
Current maturity |
|
|
718,756,011 |
467,492,340 |
|
| ---------------------------------------------------------------------------------------------------------------------------------------- |
|
|
|
|
Rupees |
1,699,670,218 |
1,946,292,015 |
|
| ===================================================================================== |
|
|
| The
above loans are secured by hypothecation of specific leased assets and
related lease |
|
| receivables
and the exchange risk fee is further secured by guarantees from commercial
banks. |
|
|
| The
local currency loans are obtained under sale and purchase agreements for
financing of |
|
| lease
operations. |
|
| ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
|
| Name
of lending institutions |
Note |
Commencement |
Purpose |
|
Mode of |
|
Mode of |
|
|
|
|
|
of repayment |
|
Principal repayment |
Payment of |
|
|
|
|
|
|
|
mark up |
|
| ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
|
| 10.1
Asian Development Bank |
|
Jul 15, 92 |
Financing of lease |
12 equal semi annual |
Semi annual |
|
| Loan
I -1007 - Pak (PS) |
|
|
operations. |
|
installments |
|
|
|
|
|
|
|
|
|
|
|
| 10.2
Asian Finance and Investment |
|
Jul 15, 92 |
Financing of lease |
12 equal semi annual |
Semi annual |
|
| Corporation
Loan 14 Pak (c) |
|
|
operations. |
|
installments |
|
|
|
|
|
|
|
|
|
|
| 10.3
Asian Development Bank |
|
Jan 15, 94 |
Financing of lease |
12 equal semi annual |
Semi annual |
|
| Loan
1133 Pak (PS) |
|
|
|
operations. |
|
instalments |
|
|
|
|
|
|
|
| 10.4
Asian Development Bank |
10.4.1 |
Mar 15, 99 |
Financing of lease |
10 equal semi annual |
Semi annual |
|
| Loan
1394 Pak (PS) |
|
|
operations. |
|
instalments |
|
|
|
|
|
|
|
|
|
|
|
| 10.5
International Finance Corporation |
|
Jun 15, 96 |
Financing of lease |
16 equal semi annual |
Semi annual |
|
| Loan
I NT/PK 4252(A) |
|
|
operations. |
|
instalments |
|
|
|
|
|
|
|
|
|
|
|
| 10.6
International Finance Corporation |
10.6.1 |
Jun 15, 97 |
Financing of lease |
4 equal semi annual |
Semi annual |
|
| Loan
I NT/PK 4252(B) |
|
|
operations. |
|
instalments |
|
|
|
|
|
|
|
|
| 10.7
International Bank for |
|
10.7.1 |
Sep 14, 96 |
Financing of small scale |
Repayment in ten years |
Semi annual |
|
| Reconstruction
and Development |
|
|
and micro enterprise |
after 3 years grace
period. |
|
|
|
|
|
|
|
|
|
|
| 10.8
FMO Loan INT/PK 93033 |
|
Apr 01, 96 |
Financing of lease |
10 equal semi annual |
Semi annual |
|
|
|
|
operations. |
|
installments |
|
|
|
|
|
|
|
|
|
|
| 10.9
FMO Loan INT/PK 93032 |
|
Apr 01, 96 |
Financing of small scale |
8 equal semi annual |
Semi annual |
|
|
|
|
|
|
and micro enterprises |
installments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 10.10
Standard Chartered Bank |
|
Dec 31, 94 |
Financing of lease |
Quarterly repayments |
Quarterly |
|
|
|
|
operations. |
|
|
|
|
|
|
|
| 10.11
Pakistan Kuwait Investment |
|
Dec 30, 96 |
Financing of lease |
3 equal annual |
|
Quarterly |
|
| Company
(Private) Limited |
|
|
operations. |
|
instalments |
|
|
|
|
|
|
|
|
|
|
|
|
| 10.12
ANZ Grindlays Bank Limited |
|
Dec 13, 96 |
Financing of lease |
6 equal semi annual |
Quarterly |
|
|
|
operations. |
|
installments |
|
|
|
|
|
|
|
|
|
| 10.13
First International Investment Bank |
|
Dec 29, 96 |
Financing of lease |
6 equal semi annual |
Semi annual |
|
| Limited |
|
|
operations. |
|
installments |
|
|
|
|
|
|
|
|
|
|
| 10.14
Saudi Pak Industrial & Agricultural |
|
Oct 01, 96 |
Financing of lease |
Quarterly repayments |
Quarterly |
|
| Investment
Company (Pvt) Ltd |
|
|
operations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 10.15
American Express Bank Limited |
|
Jun 30, 97 |
Financing of lease |
6 equal semi annual |
Quarterly |
|
|
|
operations. |
|
instalments |
|
|
|
|
|
|
|
|
|
|
|
| 10.16
Citicorp Investment Bank Pakistan |
|
Jan 11,98 |
Financing of lease |
4 semi annual
installments |
Quarterly |
|
| Limited |
|
|
operations. |
|
of Rs. 10 million & |
|
|
|
|
|
|
|
1 installment of Rs. 60 |
|
|
|
|
|
|
|
million thereafter. |
|
|
|
|
|
|
|
|
|
|
| 10.17
ANZ Grindlays Bank Limited |
|
May 20, 98 |
Financing of lease |
3 equal annual |
|
Semi annual |
|
|
|
|
operations. |
|
instalments |
|
|
|
|
|
|
|
|
|
|
|
|
| 10.18
ANZ Grindlays Bank Limited |
|
Aug 10, 98 |
Financing of lease |
2 equal annual |
|
Semi annual |
|
|
|
|
operations. |
|
instalments |
|
|
|
|
|
|
|
|
|
|
|
|
| 10.19
Oman International Bank SAOG |
|
Jul 31, 98 |
Financing of lease |
9 equal quarterly |
Quarterly |
|
|
|
operations. |
|
installments |
|
|
|
|
|
|
|
|
|
|
|
| 10.20
Societe Generale |
|
Jul 04, 98 |
Financing of lease |
Full repayment on |
Quarterly |
|
|
|
|
operations. |
|
due date. |
|
|
|
|
|
|
|
|
|
|
| 10.21
ABN AMRO Bank |
|
Jul 02, 98 |
Financing of lease |
Full repayment on |
Quarterly |
|
|
|
|
operations. |
|
due date. |
|
|
|
|
|
|
|
|
|
|
|
|
| 10.22
Standard Chartered Bank |
|
Apr 28, 98 |
Financing of lease |
8 equal quarterly |
Quarterly |
|
|
|
|
operations. |
|
installments |
|
|
|
|
|
|
|
|
|
|
|
|
| 10.23
Pakistan Kuwait Investment |
|
Mar 30, 2000 |
Financing of lease |
2 equal quarterly |
Quarterly |
|
| Company
(Private) Limited |
|
|
operations. |
|
installments after |
|
|
|
|
|
|
2 years grace period |
|
|
|
|
|
|
|
|
|
|
| 10.24
Standard Chartered Bank |
|
Mar 01, 98 |
Financing of lease |
12 equal quarterly |
Quarterly |
|
|
|
|
operations. |
|
installments |
|
|
|
|
|
|
|
|
|
|
| 10.25
Bank of Tokyo-Mitsubishi Limited |
|
Jun 26, 99 |
Financing of lease |
4 equal semi annual |
Semi annual |
|
|
|
|
operations. |
|
installments after |
|
|
|
|
|
|
|
1 year grace period |
|
|
|
|
|
|
|
|
|
|
|
| 10.26
AI-Faysal Investment Bank Limited |
|
Dec 03, 2000 |
Financing of lease |
Full repayment on |
Quarterly |
|
|
|
|
operations. |
|
due date. |
|
|
|
|
|
|
|
|
|
|
|
|
| 10.27
Faysal Bank Limited |
|
Dec 30, 99 |
Financing of lease |
Full repayment on |
Quarterly |
|
|
|
|
operations. |
|
due date. |
|
|
|
|
|
|
|
|
|
|
|
|
| 10.28
ANZ Grindlays Bank Limited |
|
Jul 31,99 |
Financing of lease |
Full repayment on |
Quarterly |
|
|
|
operations. |
|
due date. |
|
|
|
| 10.4.1
Represents a foreign currency loan from ADB of US$ 20.0 million to be used
for financing of |
|
| lease
operations. Commitment charges are payable semi-annually at a rate of 0.5%
per |
|
| annum.
Such commitment charges are payable (a) during the first twelve months from
the date |
|
| of
agreement, on 50% of the unutilised part of the loan and (b) thereafter, on
the entire |
|
| unutilised
part of the loan. As explained in note 6.1.4 exchange risk is hedged by use
of an |
|
| alternate
method. |
|
|
| 10.6.1
Represents a foreign currency loan referred to as Loan 'B' for US$ 3.3
million arranged by IFC |
|
| through
a syndicate of international banks. As explained in note 6.1.4 exchange risk
is hedged |
|
| by
use of an alternate method. |
|
|
| 10.7.1
The International Bank for Reconstruction and Development (IBRD) sanctioned a
foreign |
|
| currency
pool loan equivalent to US$ 26.0 million to Government of Pakistan (GOP) for |
|
| on-lending
to approved leasing companies in local currency for financing small scale and
micro |
|
| enterprises. |
|
|
| The
loan carries charges at the rate of 16% per annum which includes interest,
administration |
|
| charge,
guarantee commission and foreign exchange risk fee. |
|
|
| 11.
CERTIFICATES OF INVESTMENT |
|
| Represents
certificates of investment issued under profit and loss sharing basis at
expected |
|
| rates
of profit ranging from 15% to 19% per annum. The certificates of investment
are for terms |
|
| of
three months to five years. |
|
|
| 12.
LONG TERM ADVANCES AND DEPOSITS |
|
|
NOTE |
1998 |
1997 |
|
|
|
|
|
| Security
deposit on leases |
|
12.1 |
723,419,404 |
609,357,170 |
|
|
| Less:
Repayable/adjustable within 12 months |
147,370,155 |
104,007,456 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
|
|
576,049,249 |
505,349,714 |
|
|
| Advance
lease rentals received |
12.2 |
166,650 |
203,310 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
576,215,899 |
505,553,024 |
|
|
|
|
|
========== |
========== |
|
|
|
| 12.1
Represents sums received from lessees under lease contracts and are
repayable/adjustable at |
|
| the
expiry of the lease period. |
|
|
| 12.2
Represents sums received in advance and are adjustable against last rents due
as per the |
|
| lease
agreement. |
|
|
| 13.
CURRENT LIABILITIES |
|
|
| Current
maturity of redeemable |
|
| capital,
long term loan and security deposit |
13.1 |
866,126,166 |
589,062,401 |
|
|
| Short
term loans from banks - secured |
13.2 |
15,000,000 |
235,273,364 |
|
|
| Running
finance under mark up |
|
|
|
|
| arrangements
- secured |
|
13.3 |
38,361,803 |
53,174,096 |
|
|
| Shod
term certificates of investment |
11 |
325,685,089 |
180,786,064 |
|
|
| Accrued
financial and related charges |
13.4 |
138,576,037 |
148,572,744 |
|
|
| Creditors |
|
|
16,250,290 |
7,127,615 |
|
|
| Accrued
expenses |
|
|
7,171,273 |
5,909,693 |
|
|
| Other
liabilities |
|
13.5 |
7,146,646 |
3,649,364 |
|
|
| Provision
for taxation |
|
22 |
72,661,055 |
42,661,055 |
|
|
| Proposed
dividend |
|
|
32,221,906 |
72,499,289 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
1,519,200,265 |
1,338,715,685 |
|
|
|
========== |
========== |
|
|
| 13.1
Current maturity |
|
|
| Redeemable
capital |
|
|
-- |
17,562,605 |
|
|
| Long
term loans |
|
10 |
718,756,011 |
467,492,340 |
|
|
| Security
deposit on leases |
|
12 |
147,370,155 |
104,007,456 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
866,126,166 |
589,062,401 |
|
|
|
========== |
========== |
|
|
|
|
|
|
|
| 13.2
Represents short term loans utilised against aggregate facilities of Rs. 15
million (1997: |
|
| Rs.
261 million) from commercial and investment banks under sale and purchase
agreements. |
|
| These
loans carry mark-up at an average rate of 48 paisa per Rs. 1,000/- per day.
These |
|
| arrangements
are secured by hypothecation of specific leased assets and related lease |
|
| receivables. |
|
|
| 13.3
Represents running finance utilised against aggregate facilities from
commercial banks of |
|
| Rs.
317 million (1997: Rs. 217 million ) for one year and are renewable. The
average rate of |
|
| mark-up
is 45 paisa per Rs. 1,000/- per day on daily product basis. These
arrangements are |
|
| secured
by hypothecation of specific leased assets and related lease receivables. |
|
|
| 13.4
Accrued financial and related charges |
|
|
1998 |
1997 |
|
|
| Mark up on: |
|
|
|
| Long
term loans |
|
|
126,070,653 |
80,657,201 |
|
|
| Short
term loans |
|
|
2,657,898 |
12,606,176 |
|
|
| Running
finance |
|
|
6,015,211 |
4,641,658 |
|
|
| Profit
on certificates of investment |
|
1,390,636 |
6,885,743 |
|
|
| Commitment
charges |
|
|
700,809 |
959,681 |
|
|
| Exchange
risk fee - net |
|
|
1,740,830 |
42,822,285 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
138,576,037 |
148,572,744 |
|
|
|
========== |
========== |
|
|
|
|
| 13.5
Other liabilities |
|
|
| Advance
from customers pending |
|
| lease
execution |
|
|
3,744,361 |
1,562,221 |
|
|
| Unclaimed
dividend |
|
|
1,010,808 |
352,867 |
|
|
| Others |
|
|
2,391,477 |
1,734,276 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
7,146,646 |
3,649,364 |
|
|
|
========== |
========== |
|
|
|
| 14.
CONTINGENCIES AND COMMITMENTS |
|
|
| Leasing
contracts committed but not executed at the balance sheet date were Rs. 19.8
million |
|
| (1997:
Rs. 6.8 million). |
|
|
| 15.
INCOME FROM LEASE CONTRACTS |
|
|
| Represents
lease income recognised in accordance with the accounting policy as explained
in |
|
| note
2.2.1, against lease rental received and receivable for the year amounting to |
|
| Rs.
1,897,277,077/- (1997:1,596,026,516/-) |
|
|
|
NOTE |
1998 |
1997 |
|
| 16. OTHER INCOME |
|
|
|
|
|
|
| Return
on foreign currency deposit account |
|
42,367,895 |
19,627,832 |
|
|
| Return
on deposits and investments |
|
15,471,434 |
9,756,683 |
|
|
| Gain
on disposal of operating assets |
|
1,052,557 |
446,650 |
|
|
| Other
fees and income |
|
|
9,864,104 |
8,371,829 |
|
|
| Exchange
(Ioss)/gain |
|
|
(954,831) |
7,348,036 |
|
|
| Dividend
income |
|
|
4,729,081 |
3,172,200 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
72,530,240 |
48,723,230 |
|
|
|
|
========== |
========== |
|
|
|
| 17.
FINANCE AND BANK CHARGES |
|
|
| Mark up on: |
|
| Redeemable
capital |
|
|
533,574 |
21,711,137 |
|
|
| Long
term loan |
|
|
420,227,671 |
266,260,260 |
|
|
| Short
term loan |
|
|
15,758,847 |
74,200,623 |
|
|
| Running
finance |
|
|
24,588,909 |
26,609,094 |
|
|
| Profit
on certificates of investment |
|
22,485,380 |
23,915,412 |
|
|
| Commitment
charges |
|
|
2,284,947 |
2,172,704 |
|
|
| Exchange
risk fee |
|
|
31,716,370 |
42,338,661 |
|
|
| Amortisation
of deferred financial costs |
|
16,120,839 |
16,088,157 |
|
|
| Bank
charges and commission |
|
1,271,974 |
1,063,834 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
536,988,511 |
474,359,882 |
|
|
|
|
========== |
========== |
|
|
|
| 18.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
|
|
| Salaries,
allowances, welfare and training |
|
57,370,866 |
47,911,104 |
|
|
| Rent
and utilities |
|
|
12,535,972 |
11,060,904 |
|
|
| Travelling |
|
|
4,409,447 |
3,426,927 |
|
|
| Vehicle
running and maintenance |
|
4,063,351 |
3,800,748 |
|
|
| Insurance
on operating assets |
|
2,800,125 |
2,494,085 |
|
|
| Legal
and professional charges |
|
4,365,951 |
3,285,194 |
|
|
| Communication |
|
|
5,712,440 |
5,771,060 |
|
|
| Subscription |
|
|
484,547 |
554,189 |
|
|
| Auditors'
remuneration |
|
18.1 |
605,225 |
447,540 |
|
|
| Advertising |
|
|
3,090,754 |
2,477,129 |
|
|
| Printing
and stationery |
|
|
2,303,157 |
2,092,795 |
|
|
| Depreciation |
|
|
12,270,300 |
11,057,559 |
|
|
| Office
repairs and maintenance of equipment |
3,284,663 |
3,379,378 |
|
|
| Donations |
|
18.2 |
1,612,305 |
1,678,362 |
|
|
| Office
general expenses |
|
|
242,596 |
299,309 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
115,171,699 |
99,736,283 |
|
|
|
|
========== |
========== |
|
|
|
|
|
1998 |
1997 |
|
|
|
|
|
| 18.1
Auditors' remuneration |
|
|
|
| Audit fee |
|
|
150,000 |
150,000 |
|
|
| NBFI
Audit fee |
|
|
-- |
60,000 |
|
|
| Tax
and corporate advisory services |
|
434,225 |
220,640 |
|
|
| Out
of pocket expenses |
|
|
21,000 |
16,900 |
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
605,225 |
447,540 |
|
|
|
|
========== |
========== |
|
|
|
| 18.2
Donations |
|
|
| Donations
includes a payment of Rs. 150,000/- to the Patients' Aid Foundation for |
|
| improvement
of Jinnah Hospital. The Chief Executive, Mr. Humayun Murad is a |
|
| member
of the Board of Governors of this registered charity. |
|
|
| 19.
DIRECT COST OF LEASES |
|
|
| 19.1
Finance lease and installment loans |
|
|
| Insurance |
|
|
20,301,163 |
14,384,126 |
|
|
| Court
fee and stamp duty |
|
|
1,334,035 |
1,480,131 |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
21,635,198 |
15,864,257 |
|
|
|
========== |
========== |
|
|
|
| 19.2
Operating lease |
|
|
|
| Maintenance
and insurance |
|
|
1,885,747 |
-- |
|
|
| Amortisation |
|
|
1,390,690 |
-- |
|
|
|
|
|
--------------- |
--------------- |
|
|
|
Rupees |
3,276,437 |
-- |
|
|
|
|
|
========== |
========== |
|
|
|
| 20.
REMUNERATION OF CHIEF EXECUTIVE, DIRECTOR AND EXECUTIVES |
|
|
---------------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
|
1998 |
|
|
|
1997 |
|
|
---------------------------------------------------------------------------------------------------------------------------------------------------------------- |
|
Chief |
|
|
Chief |
|
|
|
Executive |
Director |
Executives |
Total |
Executive |
Director |
Executives |
Total |
|
|
---------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Managerial
remuneration |
2,190,004 |
55,000 |
21,182,516 |
23,427,520 |
1,660,968 |
-- |
19,445,998 |
21,106,966 |
|
| Housing
and utilities |
999,996 |
-- |
10,915,240 |
11,915,236 |
809,032 |
-- |
9,471,852 |
10,280,884 |
|
| Gratuity |
|
109,589 |
24,110 |
1,183,539 |
1,317,238 |
80,600 |
-- |
1,024,236 |
1,104,836 |
|
|
|
---------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Rupees |
|
3,299,589 |
79,110 |
33,281,295 |
36,659,994 |
2,550,600 |
-- |
29,942,086 |
32,492,686 |
|
|
|
==================================================================================================== |
| Number |
|
1 |
1 |
80 |
|
1 |
-- |
79 |
|
|
==================================================================================================== |
|
|
|
|
|
| The
Chief Executive and certain executives are also provided with free use of
Company owned cars. |
|
|
|
|
1998 |
1997 |
|
|
|
|
|
| 21.
TRANSACTIONS WITH ASSOCIATED COMPANIES |
|
|
|
|
|
|
| Dividend
income from Oman ORIX |
|
|
|
| Leasing
Company SAOG |
|
Rupees |
4,729,081 |
3,172,200 |
|
|
|
|
========== |
========== |
|
|
| Advisory
and placement fee paid to |
|
| ORIX
Investment Bank Pakistan |
|
| Limited
in connection with Term |
|
|
|
| Finance
Certificates (TFC's) |
Rupees |
700,000 |
1,000,000 |
|
|
|
|
========== |
========== |
|
|
|
| 22.
TAXATION |
|
|
| 22.1
Assessments for all years upto and including assessment year 1995-96 have
been finalised by |
|
| the
Income Tax Department. However, certain expenses have been disallowed by the
Income |
|
| Tax
Department against which the Company has preferred appeals before the
appellate forums. |
|
|
| In
framing the assessments for the assessment year 1996-97, the Deputy
Commissioner of |
|
| Income
Tax (DCIT) has made certain disallowances amounting to Rs. 76.4 million. The |
|
| Company
has paid Rs. 7.4 million under protest against a notice of demand raised by
the |
|
| DCIT.
Subsequently disallowances amounting to Rs. 73.3 million were set aside by
the |
|
| Commissioner
of Income Tax (Appeals). The Income Tax Department has filed an appeal |
|
| against
the said decision with the Income Tax Appellate Tribunal. |
|
|
| 22.2
Deferred taxation arising due to timing differences between book and income
tax revenue or |
|
| charges
is estimated at Rs. 171.1 million (1997: Rs. 134.1 million). As of June
30,1998 no |
|
| provision
has been made for these timing differences as these are not expected to
reverse |
|
| within
the next three years. |
|
|
| 23.
EARNINGS PER SHARE Basic and Diluted |
|
|
| EPS = |
Net profit for the period |
= |
103,893,569 |
132,096,907 |
|
|
|
Weighted average no. of
ordinary shares |
16,110,953 |
16,110,953 |
|
|
|
|
--------------- |
--------------- |
|
|
|
|
6.45 |
8.20 |
|
|
|
|
========== |
========== |
|
|
|
| 24.
CORRESPONDING FIGURES |
|
|
| Prior
year's figures have been re-arranged for the purposes of comparison wherever
necessary. |
|
|
|
| PATTERN
OF SHAREHOLDING AS AT JUNE 30, 1998 |
|
| --------------------------------------------------------------------------------------------- |
|
| Number of |
|
|
|
Total |
|
| Shareholders |
|
Shareholding |
|
Shares Held |
|
| --------------------------------------------------------------------------------------------- |
|
| 508 |
1 |
-- |
100 |
16,102 |
|
| 652 |
101 |
-- |
500 |
214,583 |
|
| 95 |
501 |
-- |
1,000 |
74,846 |
|
| 120 |
1,001 |
-- |
5,000 |
275,512 |
|
| 25 |
5,001 |
-- |
10,000 |
168,139 |
|
| 14 |
10,001 |
-- |
15,000 |
169,601 |
|
| 4 |
15,001 |
-- |
20,000 |
68,466 |
|
| 3 |
20,001 |
-- |
25,000 |
71,750 |
|
| 1 |
25,001 |
-- |
30,000 |
26,306 |
|
| 1 |
40,001 |
-- |
45,000 |
41,311 |
|
| 1 |
45,001 |
-- |
50,000 |
47,516 |
|
| 1 |
50,001 |
-- |
55,000 |
50,084 |
|
| 2 |
55,001 |
-- |
60,000 |
114,300 |
|
| 1 |
60,001 |
-- |
65,000 |
60,984 |
|
| 1 |
75,001 |
-- |
80,000 |
79,000 |
|
| 1 |
95,001 |
-- |
100,000 |
96,510 |
|
| 1 |
100,001 |
-- |
105,000 |
100,040 |
|
| 1 |
105,001 |
-- |
110,000 |
106,600 |
|
| 1 |
115,001 |
-- |
120,000 |
118,509 |
|
| 1 |
155,001 |
-- |
160,000 |
160,000 |
|
| 1 |
190,001 |
-- |
195,000 |
190,200 |
|
| 1 |
200,001 |
-- |
205,000 |
202,446 |
|
| 1 |
205,001 |
-- |
210,000 |
208,650 |
|
| 1 |
245,001 |
-- |
250,000 |
249,734 |
|
| 1 |
345,001 |
-- |
350,000 |
346,150 |
|
| 1 |
440,001 |
-- |
445,000 |
444,675 |
|
| 1 |
520,001 |
-- |
525,000 |
520,590 |
|
| 1 |
795,001 |
-- |
800,000 |
796,077 |
|
| 1 |
905,001 |
-- |
910,000 |
905,609 |
|
| 1 |
1,025,001 |
-- |
1,030,000 |
1,026,647 |
|
| 1 |
9,160,001 |
-- |
9,165,000 |
9,160,016 |
|
| --------------- |
|
--------------- |
|
| 1,445 |
|
|
16,110,953 |
|
| ========== |
|
|
========== |
|
|
|
|
|
|
| There
are no shareholdings in the slabs which have not been included above. |
|
| ----------------------------------------------------------------------------------------------------------------- |
|
| Categories
of |
|
Number of |
Shares |
Percentage |
|
| Shareholders |
|
Shareholders |
Held |
|
|
| ----------------------------------------------------------------------------------------------------------------- |
|
| 1.Individuals |
|
1,410 |
1,853,212 |
11.50 |
|
| 2.
Investment Companies |
|
5 |
366,555 |
2.28 |
|
| 3.
Insurance Companies |
|
3 |
930,386 |
5.77 |
|
| 4.
Joint Stock Companies |
|
7 |
67,598 |
0.42 |
|
| 5.
Financial Institutions |
|
2 |
1,133,247 |
7.03 |
|
| 6.
Modarabas |
|
5 |
10,500 |
0.07 |
|
| 7.
Orix Corporation and its Nominees |
4 |
9,195,647 |
57.08 |
|
| 8.
International Finance Corporation |
1 |
905,609 |
5.62 |
|
| 9.
Others-Foreign Funds |
|
8 |
1,648,199 |
10.23 |
|
|
|
--------------- |
--------------- |
--------------- |
|
| Totals |
|
1,445 |
16,110,953 |
100.00 |
|
|
|
========== |
========== |
========== |
|
|
|
| ORIX
GROUP DIRECTORY |
|
|
| JAPANESE
REGION |
|
|
| Domestic
Operations |
|
|
| Leasing
and Installment Loans |
|
|
|
|
Principal Business |
|
|
|
|
| ORIX
Corporation |
Providing direct
financing leases and operating leases |
Tokyo Sales Headquarters |
|
|
|
for OA equipment,
computers, industrial equip- |
|
World Trade Center
Building, |
|
|
|
merit, plants, aircraft,
and other equipment; |
|
2-4-1, Hamamatsu-cho, |
|
|
|
providing instalment
loans. |
|
|
Minato-ku, Tokyo 105-6135 |
|
|
|
|
|
Japan |
|
|
|
|
|
Tel: 03-3435-6641 |
|
|
|
|
|
Fax: 03-3435-6642 |
|
|
|
|
Managing Director: |
|
|
|
Katsuo Kawanaka |
|
|
|
Director: Masahiro Matono |
|
|
|
|
|
Kinki (Osaka) Sales |
|
|
|
|
Headquarters |
|
|
|
|
Nihon Kasai-Osaka
Building, |
|
|
|
|
1-11 - 4, Edobori,
Nishi-ku, |
|
|
|
|
Osaka 550-0002 Japan |
|
|
|
|
Tel: 06-449-5001 |
|
|
|
|
Fax: 06-441-7160 |
|
|
|
|
|
Managing Director: |
|
|
|
|
Teruo Isogai |
|
|
|
|
Director: Kenji Kajiwara |
|
|
|
|
Established |
ORIX |
|
|
|
(equity |
Group's |
|
|
|
interest |
Ownership |
|
|
Principal Business |
acquired) |
(%) |
|
|
|
|
| ORIX
Auto Leasing |
Auto lessor in Japan
active |
1973 |
100 |
TOC Osaki Building,
1-6-1,0saki, |
|
| Corporation |
mainly in fleet leasing
but with |
|
Shinagawa-ku, Tokyo
141-0032 |
|
|
|
growing business in auto
leases |
|
Tel: 03-3495-4971 |
|
|
|
for individuals. |
|
|
Fax: 03-3495-4960 |
|
|
|
|
|
|
|
|
Chairman: Etsuo Hashimoto |
|
|
|
|
President: Akira
Fukushima |
|
|
|
|
| ORIX
Alpha |
Leasing and financing
furnish- |
1972 |
100 |
Karuko-zaka MN Building, |
|
| Corporation |
ings and equipment for
retailers, |
|
2-1, Ageba-cho,
Shinjuku-ku, |
|
|
|
hotels, restaurants, and
other |
|
Tokyo 162-8570 |
|
|
|
users; providing mediatow |
|
Tel: 03-5228-5300 |
|
|
|
and consulting services. |
|
Fax: 03-5228~5310 |
|
|
|
|
|
|
|
Chairman: Masaru Yutaka |
|
|
|
|
President: Kunitoshi
Masuda |
|
|
|
|
| Y.O.
Machinery |
Joint venture with a
specialized |
1984 |
81 |
World Trade Center
Building, |
|
| Leasing
Co., Ltd. |
machinery trading
company; |
|
2-4-1, Hamamatsu-cho, |
|
|
|
handling leases and
installment |
|
Minato-ku, Tokyo 105-6135 |
|
|
|
sales for machine tools
and |
|
Tel: 03-3435-6990 |
|
|
|
other equipment. |
|
Fax: 03-3435-6415 |
|
|
|
|
|
|
|
President: |
|
|
|
|
Katsuo Kawanaka |
|
|
|
|
| ORIX
Aircraft |
Aircraft leasing. |
1986 |
100 |
World Trade Center
Building, |
|
| Corporation |
|
|
|
2-4-1, Hamamatsu-cho, |
|
|
|
|
Minato-ku, Tokyo 105-6135 |
|
|
|
|
Tel: 03-3438-2831 |
|
|
|
|
Fax: 03-3435-6448 |
|
|
|
|
|
|
|
President: Takashi
Koizumi |
|
|
|
| Real
Estate Related Business |
|
|
| ORIX Corporation |
Principal Business |
|
|
| Real Estate |
Extending housing loans,
project finance, |
|
|
Real Estate Business |
|
| Business |
brokering real estate and
other real estate |
|
|
Headquarters |
|
| Headquarters |
related services, such as
dormitory leasing. |
|
|
Shinjuku Mitsui Building
No. 2, |
|
|
|
|
3-2-11, Nishi-Shinjuku-Ku |
|
|
|
|
Shinjuku-Ku Tokyo |
|
|
|
|
160-8370, Japan |
|
|
|
|
Tel: 03-3345-2500 |
|
|
|
|
Fax: 03-3345-2588 |
|
|
|
|
|
Director: Hiroaki Nishina |
|
|
|
|
|
Director: Yoshiyasu
Shiota |
|
|
|
|
Established |
ORIX |
|
|
|
(equity |
Group's |
|
|
|
interest |
Ownership |
|
|
|
Principal Business |
acquired) |
(%) |
|
|
|
|
| ORIX
Estate |
Managing real estate and |
(1986) |
99 |
1-2-30, Benten, |
|
| Corporation |
leisure facilities. |
|
Minato-ku, Osaka 552-0007 |
|
|
|
|
Tel: 06-571-2481 |
|
|
|
|
Fax: 06-572-5741 |
|
|
|
|
|
|
|
|
|
President: Yutaka
Shiraishi |
|
|
|
|
