| ASKARI LEASING LIMITED |
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| ANNUAL
REPORT 2003 |
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| BOARD
OF DIRECTORS |
|
| Lt. Gen. (R) Masood
Parwaiz |
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| Brig. (R) Muhammad
Ayub |
Chairman |
|
| Brig. (R) Muhammad
Bashir Baz |
Director |
|
| Mr. Muhammad
Jamaluddin |
Director |
|
| Mr. Javed Ahmed
Noel |
Director |
|
| Mr. Shujat All
Khan |
Director |
|
| Mr. AghaAlilmam |
Director |
|
| Mr. Manzoor Ahmed |
|
Director (NIT
Nominee) |
|
| CHIEF
EXECUTIVE |
|
| Mr.
Nasier Sheikh |
|
| COMPANY
SECRETARY |
|
| Mr.
Zafar Alam Khan Sumbal |
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| BANKERS |
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| Askari
Commercial Bank Limited |
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| American
Express Bank Limited |
|
| ABN-AMROBankN.V. |
|
| Standard
Chartered Grindlays Bank Limited |
|
| The
Bank of Punjab Limited |
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| Citibank
N.A. |
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| Habib
American Bank |
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| United
Bank Limited |
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| Muslim
Commercial Bank Limited |
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| AUDITORS |
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| TaseerHadiKhalid&Co. |
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| Chartered
Accountants |
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| LEGAL
ADVISORS |
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| Rizvi,
Isa, Afridi & Angell |
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| REGISTERED
OFFICE/HEAD OFFICE |
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| 5th
Floor, AWT Plaza, The Mall, Rawalpindi Cantt. |
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| Telephone:
(051) 9272368-73 |
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| UAN
111-111-345 Fax: (051) 9272148 |
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| E.Mail:
info@all.com.pk |
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| REGISTRAR
AND SHARE TRANSFER OFFICE |
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| Askari
Associates (Pvt.) Ltd. |
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| 6th
Floor, AWT Plaza, The Mall, |
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| P.O.
Box 678, Rawalpindi Cantt. |
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| Telephone:
(051) 9272442-44 Fax: (051) 9272447 |
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| E.Mail:
askari@isb.compol.com |
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| 8. To trade in listed securities, both
equity and non-equity instruments, to provide professional analysis of |
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| securities
to both institutional and individual investors; to manage portfolios of
stocks and shares, pension |
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| and
provident funds, participation term certificates and other negotiable and
debt instruments for both |
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| individual
and institutional clients on a discretionary as well as non-discretionary
basis, to provide margin |
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| loans
to individual and institutional investors; to offer cash management accounts,
security management |
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| accounts
and to facilitate clients, to open letters of credit for corporate clients
for the import of machinery |
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| for
installation, expansion, balancing, modernization and replacement. |
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| 9. To act as adviser and financial agent for
companies in obtaining bank loans, syndicated loans, export credits, |
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| leases
and project finances, both domestically and internationally, to assist
companies in private placement |
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| of
debt and equity, domestically and abroad, to act as adviser to companies in
corporate or financial |
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| restructuring
as well as in the preparation of resource mobilization plans, to act as
adviser to companies in |
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| mergers,
acquisition and divestitures. |
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| 10. To act as authorized seller for securities
and certificates, denominated in local or foreign currency, issued |
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| by
Federal or Provincial Governments, statutory bodies, and state-owned
corporations, including instruments |
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| of
National Savings Schemes, to provide safe deposit vaults to clients. |
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| 11. To buy, sell hold or otherwise acquire
stocks, transferable shares, scrips, Modaraba Certificates, notes, |
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| debentures,
debenture stocks, participation term certificates, bonds, investment
contracts, and pre-organisation |
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| certificates
or subscription, and, any instrument commonly known as a security and the
company may |
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| incorporate,
float and manage open ended schemes and closed-end investment companies
(Mutual Funds), |
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| to
provides Investment Advisory and Asset Management services as defined in The
Non- Banking Finance |
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| Companies
(Establishment And Regulation) Rules, 2003 as amended. |
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| After
above alterations the existing sub-clause numbered 3 to 29 shall be read as
sub-clause numbered 12 to 38. |
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| "RESOLVED
that words appearing as " investment, bank or" in line 13 & 14
of the existing sub-clause 27 are |
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| hereby
deleted and words appearing as "business of an investment" in line
3 of sub-clause 29 are also hereby |
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| deleted." |
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| "RESOLVED
that this resolution will be effective subject to the approval of the
Securities & Exchange Commission |
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| of
Pakistan" |
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| "RESOLVED
that Clause V of the Memorandum of Association of the Company be and is
hereby altered and |
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| replaced
by the following: |
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| V. The Authorized Capital of the Company is
Rs. 1 , 000,000,000 (Rupees one billion only) divided in to 70,000,000 |
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| (Seventy
million) ordinary shares of Rs.10 (Rupees ten) each and 30,000,000 (Thirty
million) preferred |
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| shares
of Rs.10 (Rupees ten) each with attached thereto respectively such
preferential, deferred, qualified |
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| or
special rights, privileges, or conditions as provided in the Articles of
Association of the Company, or in |
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| accordance
with the Companies Ordinance, 1984 and to vary, modify or, abrogate any such
right, privileges |
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| or
conditions in such manner as may be permitted by the Company Ordinance, 1984
and to increase and/ |
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| or
reduce the capital and to divide shares in the capital into several classes
and to consolidate. |
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| "RESOLVED
that Article No.7 of the Articles of Association of the Company be and is
hereby altered and |
|
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| replaced
by the following: |
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| 7 The Authorized Capital of the Company is
Rs. 1,000,000,000 (Rupees one billion only) divided in to |
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| 70,000,000
(Seventy million) ordinary shares of Rs.10 (Rupees ten) each and 30,000,000
(Thirty million) |
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| preferred
shares of Rs.10 (Rupees ten) each. The Company shall have powers to increase
or reduce |
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| the
capital of the Company and to divide shares in the capital for the time being
into several classes. |
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| The
rights as between various classes of ordinary shares, if any, as to profits,
votes and other benefits |
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| shall
be strictly proportionate to the paid-up value of shares. |
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|
| "RESLOVED
that following Chapter and sub-clauses be and are hereby inserted after the
existing Chapter |
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| No.
XXVI and sub-clause 159: |
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| XXVII
PREFERENCE SAHRES |
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| 160. The directors of the Company may at any
time, and from time to time, allot and issue one or more classes |
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| of
Preference Shares conferring on the holders thereof the following one or more
rights and subject to such |
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| company")
will be held on Friday October 24, 2003 at 1000 hours, in Blue Lagoon
Complex, opposite outward of |
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| Continental
Hotel, Rawalpindi, to transact the following business: - |
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| 1
. To confirm the minutes of the 10th
AGM of the company held on 26 December 2002. |
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| 2. To receive, consider and adopt the
Audited Accounts of the company together with Directors' and Auditors' |
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| Reports
thereon for the year ended June 30, 2003. |
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| 3. To appoint Auditors of the company for
the year ending June 30, 2004 and to fix their remuneration. The present |
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| Auditors
of the company being eligible offer themselves for re-appointment. |
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| 4. To approve the payment of 15 % cash dividend (Rs 1.50 per share)
as recommended by the Board of Directors |
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| for
the year ended June 30, 2003 |
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| purchasing
or making any additions, alterations or improvements to or in any property,
to establish or |
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| manage
housing schemes without engaging in real estate business or work as
subsidiary or holding company |
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| or
as joint venture of construction business, to carry out surveys and valuation
of land and properties, to |
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| arrange
for insurance of the pledged property, to manage mortgage investment as
agent, to manage public |
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| or
private sector housing projects, to make loans and advances for house
building or non-residential properties |
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| to
individuals, corporate, projects and housing companies and to finance against
property by way of mortgage. |
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| To
carry on the business of discount, acceptance and guarantee house by issue,
purchase, sale, distribute, |
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| arrange,
accept, co-accept, discount, rediscount, underwrite and guarantee of
Securities, Certificate of |
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| Investments,
Certificate of Deposit, Commercial Paper, Participation Term Certificate,
Term Finance Certificates, |
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| Bonds
and bills or any financial instrument issued in and outside Pakistan by any
government or any authority |
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| or
body corporate, entity, corporation, association, persons, whether in public
or private sector, both in |
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| primary
or secondary market or money market, to purchase receivables and book debts,
to manage cash |
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| and
funds for others, to borrow with or without security in any currency from any
source, to negotiate loans, |
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| and
to act as primary dealer, market maker, agent and broker in Government debt
instruments and other |
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| securities. |
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| To
effect, insure, guarantee, underwrite and participate in managing and
carrying out of any issue, public |
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| or
private, government, municipal or other loans or of shares, stock, modaraba
certificates, bonds, debentures, |
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| debenture
stock of any government, local, company, corporation, statutory corporation,
modaraba, association, |
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| trust
or foundation and to give guarantee in relation to payment of debentures,
debenture stocks, modaraba |
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| certificates,
bonds, obligations, or securities and carry on and transact every kind of
guarantee, counter- |
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| guarantee
and indemnity business, and in particular to guarantee any moneys, including
principal, or markup |
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| or
interest, or other moneys payable under any debentures, mortgages, loan
agreements, contracts, obligations |
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| and
securities. |
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| To
undertake and carry on the office or offices and duties of trustee custodian,
trustee executor, administrator, |
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| liquidator,
receiver, committee, attorney or nominee of or for any person, corporation,
association, government |
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| state,
municipal or other body public or corporate. |
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| To
issue certificates of deposit or short-term paper of its own or investments,
to trade in commercial paper |
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| issued
by the Company's client, Government securities, promissory notes, bankers'
acceptances and other |
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| money
market instruments, to assist in the issue of commercial paper, including
introduction of companies |
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| to
the money market, preparation of documentation, distribution and market
making. |
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|
| Statement
under section 160(1) (b) of the Companies Ordinance, 1984 |
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| The
material information pertaining to the special business to be transacted at
the Annual General Meeting of the company |
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| be held on October 24, 2003 is given in this
statement. |
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| The
Securities and Exchange Commission of Pakistan (SECP) has formulated
"The Non-Banking Finance Companies |
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| (Establishment
and Regulation) Rules, 2003". These rules have come into force with
effect from April 01, 2003. Under these |
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| Tiles
the Company being an NBFC is allowed to undertake the following business
activities: |
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| The
Company can undertake these business activities provided that the objects
clause in the Memorandum of Association |
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| of
the Company has corresponding provisions relating to these business
activities. To incorporate provisions relating to |
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| NBFCs
permissible business activities in the Memorandum of Association of the
Company, amendments in the Memorandum |
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| of
Association are proposed for approval of shareholders. |
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| The
main objective of implementation of NBFCs concept is to provide a broader
platform to financial companies to have |
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| multiple
products available to their customers under one roof. This will promote the
idea of much needed "Financial |
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| Supermarkets"
and would serve to strengthen the overall financial sector. |
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| The
amendment in Memorandum and Articles of Association of the Company is also
proposed to enhance the authorized |
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| capital
of the company to one billion and to insert provisions to enable the Company
to issue preference shares. The |
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| enhancement
in authorized capital will enable the Company to meet its growth in future. |
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|
| The
directors of the Company have no interest directly or indirectly in the
amendments to or alteration of the Memorandum |
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| and
Articles of Association of the Company, except that they are shareholders / directors in the Company. |
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| NOTES |
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| 1. CLOSURE OF SHARE TRANSFER BOOKS |
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| The
Share Transfer Books of the Company will remain closed from Saturday October
18, 2003 to Friday October |
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| 24,
2003 (both days inclusive). |
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| 2. CHANGE IN ADDRESS AND
CONSOLIDATION OF FOLIOS |
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| Members
of the company are requested to immediately notify the change of address, if
any, and ask for consolidation |
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| of
folio numbers, provided any member holds more than one folio, to our
Registrar, Askari Associates (Private) |
|
| Limited
, 6th Floor, AWT Plaza, The Mall, Rawalpindi Cantt. |
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| 3 PARTICIPATION IN GENERAL MEETING |
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| (a) A member entitled to attend and vote at
the Meeting is entitled to appoint a proxy to attend the Meeting |
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| and
vote for him/her. The Form of proxy, duly completed in order to be effective
must be received by the |
|
|
| Company
at its Registered Office at least 48 hours before the Meeting. |
|
| (b) Individual beneficial owners of CDC
entitled to attend and vote at the meeting must bring his/her participant |
|
| ID
and account/sub-account number alongwith original NIC or passport to
authenticate his/her identity. |
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|
| In
case of corporate entity, resolution of the Board of Directors/power of
attorney with specimen signature |
|
|
| of
nominees shall be produced (unless provided earlier) at the time of meeting. |
|
| (c) For appointing proxies, the individual
beneficial owners of CDC shall submit the proxy form as per above |
|
| requirement
alongwith participant ID and account/sub-account number together with
attested copy of their |
|
|
| NIC
or passport. The proxy form shall be witnessed by two witnesses with their
names, addresses and NIC |
|
| numbers.
The proxy shall produce his/her original NIC or passport at the time of
meeting. In case of corporate |
|
| entity,
resolution of the Board of Directors/power of attorney with specimen
signature shall be submitted |
|
|
| (unless
submitted earlier) alongwith the proxy form. |
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|
|
|
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| terms
and conditions which shall be approved by the shareholders by a special
resolution for the issuance |
|
| of
Preference Shares. |
|
|
| 161. The right to a preferential dividend
(whether cumulative or otherwise) on the paid up or credited as paid |
|
| up
capital in respect of Preference Shares of the Company (to the extent of and
from such profits as are |
|
|
| available
for distribution and are declared by the Company in General Meeting and after
deducting such |
|
|
| amounts
therefrom as have been carried to reserves or otherwise set aside as the
Company may by law be |
|
| required)
in respect of the relevant period at such rates as may be determined by the
shareholders. It is |
|
| clarified
that the right of the holders of Preference Shares to receive preferential
dividend (whether cumulative |
|
| or
otherwise) shall be in priority to any payment of dividend to the holders of
any other shares in the capital |
|
| of
the Company. |
|
| Preference Shares shall be redeemable in
accordance with terms and conditions and after such period as |
|
| may
from time to time be determined by the members through Special Resolution and
subject to the |
|
|
| provisions
of the Ordinance. No such shares shall be redeemed unless they are fully
paid. |
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|
| No such shares shall be redeemed except
out of the profits of the Company which would otherwise be |
|
|
| available
for dividend or from out of a sinking fund created for this purpose or out of
the proceeds of fresh |
|
|
| issue
of shares made for the purpose of redemption or out of sale proceeds of any
property of the Company. |
|
| Where any such shares are redeemed
otherwise than out of the proceeds of a fresh issue, there shall out |
|
| of
profits which would otherwise have been available for dividend be transferred
to a reserve fund, to be |
|
| called
"the capital redemption reserve fund", a sum equal to the amount
applied in redeeming the shares, |
|
|
| and
the provisions of the Ordinance relating to the reduction of the share
capital of the Company shall, : |
|
|
| except
as provided in Section 85 of the Ordinance, apply as if the Capital
Redemption Reserve fund were |
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| paid-up
share capital of the Company. |
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|
| Where any such shares are redeemed out of
the proceeds of a fresh issue, the premium, if any, payable on |
|
| redemption
must have been provided for out of the profits of the Company before the
shares are redeemed |
|
|
| or
out of the share premium account. |
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|
| Through Special Resolution Preference
Shares at any time before redemption may be converted into Ordinary |
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| Shares
at value and terms determined by the members in the general meeting. |
|
|
| Preference Shares on winding up shall
have the first right, before the Ordinary Shareholders over the assets |
|
| of
the Company, limited to the nominal value of the shares held by the
Preference Shareholders, reduced |
|
|
| by
the amounts already redeemed, if any, prior to winding-up. |
|
| The holders of the Preference Shares
shall not be entitled to notice of or to attend any meeting of the |
|
|
| Company
or vote on any resolution of the Company unless, and only to the extent as
may be expressly |
|
|
| required
by the Companies Ordinance, 1984. |
|
| The Preference Shares shall have no
further rights to participate in the profits in any other surplus of the |
|
| Company
other than to the specified preferential dividend. |
|
|
| The members through Special Resolution
may vary rights and privilege attached to the Preference Shares |
|
| from
time to time. |
|
|
| To
transact any other business with the permission of the Chair. |
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|
|
|
| Financial
Results |
|
|
|
Rupees |
|
|
Total Revenue |
1,056,306,763 |
|
|
Total Expenditure |
915,755,739 |
|
|
Profit for the year |
140,551,024 |
|
|
Un-appropriated profit |
|
|
brought forward |
1,299,961 |
|
|
Profit available for |
|
|
appropriation |
141,850,985 |
|
|
Appropriations: |
|
|
|
Transferred to |
|
| Name of Directors |
|
Reserve fund |
|
28,110,205 |
|
| Lt. Gen. (R) Masood
Parwaiz |
Deferred tax reserve |
|
23,400.00 |
|
| Brig. (R) Muhammad
Ayub |
|
General reserve |
|
40,000.00 |
|
| Brig. (R) Muhammad Bashir
Baz |
Proposed dividend |
48,600.00 |
|
| Brig. (R)
Ikram-ul-Hasan |
|
Un-appropriated profit |
|
|
| Brig. (R)Tariq
Bashir |
|
carried forward |
1,740,780 |
|
| Mr. Muhammad
Jamaluddin |
Earnings per share -
basic |
4.34 |
|
| Mr. Javed Ahmed
Noel |
|
| Mr. Shujat AH
Khan |
Meetings Attended |
|
| Mr. Manzoor Ahmed |
|
7 |
|
| Mr. Agha All
Imam |
|
7 |
|
| Syed Haroon
Rashid |
0 |
|
| Leave
of absence was granted to the Directors |
6 |
|
| who
could not attend the meetings held |
|
3 |
|
| during
the period they remained Directors |
3 |
|
| of
the company. |
|
2 |
|
| Brig
(R) Ikram-ul-Hasan (Director), |
|
6 |
|
| Brig.
(R) Tariq Bashir (Director) and Syed |
1 |
|
| Haroon
Rashid (Director) retired from the |
4 |
|
| board.
The board places on record its |
|
1 |
|
| appreciation
for the valuable contribution |
|
| made
by the retiring Directors towards the |
|
| growth
of the company. |
|
|
|
|
|
| Auditors |
|
| The
auditors M/S Taseer Hadi Khalid & Co |
|
| Chartered
Accountants retire and being |
|
|
| eligible,
offer themselves for re-appointment. |
|
| The
Audit Committee has recommended |
|
| re-appointment
of retiring Auditors. |
|
|
| Acknowledgement |
|
| The
directors are pleased to put on record |
|
| their
appreciation for the commendable |
|
| dedication,
hard work and commitment of |
|
| the
employees for the growth of the company |
|
| and
to the shareholders for their confidence |
|
| in
the company. Furthermore, our gratitude |
|
| to
the Securities & Exchange Commission |
|
| of
Pakistan (SECP) and State Bank of Pakistan |
|
| (SBP)
for their continued guidance and |
|
|
| support. |
|
|
|
|
| Key
Financial Indicators |
|
|
| The
key financial indicators of the company's |
|
| performance
for the last six years are annexed |
|
| to
the report. |
|
|
| Credit
Rating |
|
|
| The
Pakistan Credit Rating Agency (PACRA) |
|
| has
maintained Askari Leasing's entity rating |
|
| of
'A Plus" for long term and "Al" for short |
|
| term
obligations based on the |
|
| results
of June 30, 2002. |
|
|
| Pattern
of Share Holding |
|
|
| The
pattern of share holding of the company |
|
| as
at June 30, 2003 is annexed to the |
|
| report. |
|
|
| Retirement
Schemes / |
|
|
| Provident
Fund |
|
|
| The
value of investments of provident fund |
|
| is
Rs. 6.10 million. The company has also |
|
| provided
for Rs. 5.906 million for |
|
| compensated
absences for un-availed leaves |
|
| of
the employees. |
|
|
|
|
| BALANCE
SHEET |
1998 |
1999 |
2000 |
2001 |
2002 |
2003 |
|
| Authorised
Capital |
500,000 |
500,000 |
500,000 |
500,000 |
500,000 |
500,000 |
|
| Paid
up Capital |
240,000 |
240,000 |
324,000 |
324,000 |
324,000 |
324,000 |
|
| Total
Equity |
493,798 |
528,199 |
638,852 |
703,335 |
755,176 |
1,011,783 |
|
| Allowance
for potential |
|
|
| lease
losses |
120,000 |
131,591 |
162,214 |
223,129 |
290,960 |
281,834 |
|
| Long
Term Liabilities |
2,083,829 |
2,823,710 |
4,690,094 |
5,328,309 |
5,353,817 |
5,061,011 |
|
| Current
Liabilities |
2,449,526 |
2,265,777 |
1,892,268 |
1,774,665 |
2,317,998 |
1,833,740 |
|
| Current
Assets |
2,545,973 |
2,810,393 |
3,810,835 |
3,812,841 |
3,991,898 |
3,878,258 |
|
| Total
Assets |
5,027,152 |
5,617,686 |
7,221,214 |
7,806,309 |
8,426,990 |
7,906,533 |
|
| INCOME
STATEMENT |
|
|
| Lease
Income |
593,665 |
638,103 |
767,042 |
988,743 |
928,896 |
800,567 |
|
| Total
Revenue |
716,009 |
797,590 |
992,664 |
1,171,509 |
1,194,993 |
1,056,307 |
|
| Financial
Expenses |
529,952 |
665,419 |
794,482 |
937,772 |
951,010 |
745,564 |
|
| Profit
before Taxation |
99,981 |
70,901 |
100,554 |
77,483 |
21,115 |
140,551 |
|
| Profit
after Taxation |
71,981 |
62,401 |
91,454 |
64,483 |
21,115 |
140,551 |
|
| FINANCIAL
INDICATORS |
|
|
| Earnings per share |
4.54 |
2.95 |
3.1 |
2.39 |
0.65 |
4.34 |
|
| Return
on Average Equity |
20.75% |
13.42% |
15.74% |
9.61% |
2.90% |
15.91% |
|
| Current
Ratio |
1.04 |
1.24 |
2.01 |
2.15 |
1.72 |
2.11 |
|
| Book
value (Rs. per share) |
20.57 |
22 |
19.72 |
21.71 |
23.31 |
31.23 |
|
| Return
to share holders |
20% |
20% |
20% |
|
- |
15% |
|
|
|
|
| CORPORATE
GOVERNANCE |
|
|
|
|
| We
have reviewed the Statement of Compliance with the best practices contained
in the Code of Corporate |
|
| Governance
prepared by the Board of Directors of Askari Leasing Limited to comply with
the Listing Regulations |
|
| of
the Stock Exchanges where the Company is listed. |
|
|
|
|
| The
responsibility for compliance with the Code of Corporate Governance is that
of the Board of Directors of |
|
| the
Company. Our responsibility is to review, to the extent where such compliance
can be objectively verified, |
|
| whether
the Statement of Compliance reflects the status of the Company's compliance
with the provisions of |
|
| the
Code of Corporate Governance and report if it does not. A review is limited
primarily to inquiries of the |
|
| Company
personnel and review of various documents prepared by the Company to comply
with the Code. |
|
|
| As
part of our audit of financial statements we are required to obtain an
understanding of the accounting and |
|
| internal
control systems sufficient to plan the audit and develop an effective audit
approach. We have not carried |
|
| out
any special review of the internal control system to enable us to express an
opinion as to whether the Board's |
|
| statement
on internal control covers all controls and the effectiveness of such
internal controls. |
|
|
| Based
on our review, nothing has come to our attention which causes us to believe
that the Statement of |
|
| Compliance
does not appropriately reflect the Company's compliance, in all material
respects, with the best |
|
| practices
contained in the Code of Corporate Governance, effective as at June 30,2003. |
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| OF
ASKARI LEASING LIMITED |
|
|
| We
have audited the annexed balance sheet of Askari Leasing Limited as at 30
June 2003 and the related |
|
| profit
and loss account, cash flow statement and statement of changes in equity
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 purpose of |
|
| our
audit. |
|
|
|
|
| It
is the responsibility of the company's management to establish and maintain a
system of internal |
|
| control,
and prepare and present the above said statements in conformity with the
approved accounting |
|
| standards
and the requirements of the Companies Ordinance, 1984. Our responsibility is
to express an |
|
| opinion
on these statements based on our audit. |
|
|
| We
conducted our audit in accordance with the auditing standards as applicable
in Pakistan. These |
|
| standards
require that we plan and perform the audit to obtain reasonable assurance
about whether |
|
| the
above said statements are free of any material misstatement. An audit
includes examining, on test |
|
| basis,
evidence supporting the amounts and disclosures in the above said statements.
An audit also |
|
| includes
assessing the accounting policies and significant estimates made by
management, as well as, |
|
| evaluating
the overall presentation of the above said statements. We believe that our
audit provides a |
|
| reasonable
basis for our opinion and, after due verification, we report that: |
|
|
| (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, cash flow statement and statement of
changes in equity |
|
| together
with the notes forming part thereof conform with approved accounting
standards as |
|
| applicable
in Pakistan, and, 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^ |
|
| affairs
as at 30 June 2003 and of the profit, its cash flows and changes in equity
for the year then |
|
| ended;
and |
|
|
| (d) in our opinion Zakat deductible at source
under the Zakat and Ushr Ordinance, 1980 (XVIII of |
|
| 1980),
was deducted by the company and deposited in the Central Zakat Fund
established under |
|
| Section
7 of that Ordinance. |
|
|
|
|
|
|
|
|
|
|
|
| Cash
flows from Operating Activities |
|
|
| Profit
before taxation |
|
| Adjustments
for : |
|
|
| Depreciation |
|
|
| Allowance
for potential lease losses |
|
| Provision
for imapirment of receivables |
|
| Amortisation
of deferred costs |
|
| Profit
on disposal of fixed assets |
|
|
2003 |
2002 |
|
| Profit
on certificates of investment |
|
|
(Rupees) |
(Rupees) |
|
| Mark
up expense on borrowings |
|
|
|
| Provision/
(reversal) for diminution in value of shares |
|
|
140,551,024 |
21,114,689 |
|
|
|
|
|
|
|
| Operating
profit before working capital changes |
|
|
22,065,252 |
26,433,606 |
|
| Changes
in operating assets and liabilities |
|
|
54,617,027 |
67,830,624 |
|
| (Increase)/decrease
in : |
|
|
4,000,000 |
24,809,107 |
|
| Investments |
