Al-Mal Securities Limited - Annual Reports 2003


AL-MAL SECURITIES AND SERVICES LIMITED
Annual Reports 2003

Table of Contents

Corporate Information
Directors' Report
Statement Showing Shares Bought & Sold
Pattern of Share Holding
Chief Executive Review
Statement of Compliance with the
Code of Corporate Governance
Review Report to the Members
Auditors' Report
Balance Sheet
Profit & Loss Account
Cash Flow Statement
Statement of Changes in Equity
Notes to the Financial Statements
Notice of AGM

CORPORATE INFORMATION

BOARD OF DIRECTORS
Mr S.lrdat Hussain			Chairman
Mr.Maqbool Hussain			Vice Chairman
Mr.Noor Qadir			Chief Executive
Mr Anf Maqsood Hamidi			Director
Mr.Nasim Ahmed			Director
Mr. Abdul Qadir Ashrafi			Director
Mr. Noman Majeed Adam			Director
SECRETARY
Mr M Ahsan Hashmi
CHIEF FINANCIAL OFFICER
Mr Anwer Iqbal
AUDIT COMMITTEE
Mr.Nasim Ahmed			Chairman
Mr.Maqbool Hussain			Member
Mr. Noman Majeed Adam			Member
BANKERS
Muslim Commercial Bank Limited
Askari Commercial Bank Limited
Bank Al- Habib Limited
REGISTERED OFFICE
10th Floor, Progressive Square
Opposite Nursery, Sharah-e-Faisal Karachi
AUDITORS
Ford, Rhodes.Sidat Hyder & Co.
Chartered Accountants

DIRECTORS' REPORT

The directors have pleasure in submitting herewith their Report and, Audited Annual Accounts together
with Auditors' Report of the Company for the year ended June 30, 2003.

Operating Performance:

The company achieved an exceptional operating performance during the current financial year. The
company has earned a gross operating revenue of Rs.18,806 thousands as compared to last year's
Rs.9,976 thousands i.e. an increase of about 88% over last year. The company earned an amount of
Rs.6,955 thousands through quoted securities whereas during last year this figure was Rs.3,629 thousands
which is an increase of 91 % over last year.

The company showed profit before tax of Rs.10,150 thousands as compared to last year's Rs.1,174
thousands which is an increase of 764%, as expenses were remained in controllable limits.

The main reason behind this achievement along-with the help of Almighty Allah was the extra-ordinary
performance of the stock exchange during the year. The KSE 100 index which was at 1785 points as on
June 30, 2002 was closed at 3402 points as on June 30, 2003.

Operating Results:
				(000' Rupees)
		2003	2002	2001	2000	1999	1998	1997
Total Revenues		18,805	9,976	9,780	13,560	7,914	7,061	5,383
Less: Total expenses		-8,647	-8,066	-8,331	-7,926	-7,215	-7,480	-6.721
Operating profit/(loss)		10,158	1,910	1,449	5,634	699	-419	-1,338

Chief Executive's Review:

The Chief Executive's Review deals with the business activities and operating results of the Company
during the year and future outlook.

The directors endorse the contents of the report.

Corporate Governance:

The Securities & Exchange Commission of Pakistan for the purpose of establishing a framework of good
corporate governance and directed all stock exchanges to insert it, in their listing regulations.

We, herein, Al-Mal Securities & Services Limited believe in good governance and had already taken a
number of steps in its fulfillment.

The company has adopted IAS-19 (Retirement Benefit Costs), details in this regard have been explained
in Note 3.9 to the Accounts.

There has been no material payment outstanding on account of taxes, duties, levies and charges. The
statement showing the company's shares bought and sold by directors, CEO and CFO and Company
Secretary and their spouses and minor family members is stated as Annex-A, statement showing
attendance of Board meetings is disclosed as Annex-B (number of meetings held during the year were
seven), whereas, the pattern of shareholding is placed as Annex-C.

Dividend for the current year has not been declared as the profit earned has been retained to reduce the
past losses. However, the directors hope that the company will, Insha Allah perform better in the next
financial year and come up with better results.

The gratuity fund was established during the last quarter of the year and no investments were made in this
regard except the bank account, this amount was Rs. 1,138,201 as at June 30, 2003.

Compliance with Code of Corporate Governance:

As required under the Code of Corporate Governance, we as, Board of Directors, state that:

• The financial statements prepared by the management of the Company, present fairly its state of
affairs, the results of its operations, cash flows, and changes in equity.

• Proper books of accounts of the company have been maintained.

• Appropriate accounting policies have been consistently applied in preparation of financial
statements except for the change as stated in note 3.9 to the financial statement with which
auditors have expressed their concurrence. Accounting estimates are based on reasonable and
prudent judgment.

• International Accounting Standards as applicable in Pakistan, have been followed in preparation of
financial statements.

• The system of internal control is sound in design and has been effectively implemented and
monitored.

• There are no significant doubts upon the company's ability to continue as a going concern .

• There has been no material departure from the best practices of corporate governance, as detailed
in the listing regulations.

Board of Directors:

During the year an extra-ordinary meeting of shareholders was called for election of seven directors for a
term of three years. As a result of this election, Mr. S. Iradat Husain, Mr. Maqbool Hussain, Mr. Ahmad
H. I. Dada, Mr. Tariq Dada, Mr. Faisal Husain, Mr. Arif Maqsood Hamidi and Mr. Nasim Ahmed were
elected to the Board. Lately Mr. Ahmad H. I. Dada, Mr. Tariq Dada and Mr. Faisal Hussain resigned
from the Board, subsequently, Mr. Noor Qadir, Mr. Abdul Qadir Ashrafi and Mr. Nauman Majeed Adam
filled-in these positions.

On April 18, 2003, the Chief Executive Mr. M. Azeem Khan left the company on his own and Miss Farhat
Yasmin was appointed as Chief Executive in his place. Subsequently on June 16, 2003, Miss Farhat
Yasmin relinquished the office of Chief Executive and in her place Mr. Noor Qadir was appointed as
Chief Executive of the company.

The Board of Directors wishes to record its appreciation for the valuable services rendered by the
outgoing directors and chief executives and extends warm welcome to. the newly appointed Chief
Executive and the Directors.

Future Outlook:

During the month of September 2003, an agreement has been signed between Al-Mal Securities &
Services Limited and His Royal Highness Prince Turki Bin Bander Bin Muhammad Bin Abdur Rehman
Al-Saud, nephew of King Fahad Bin Abdul Aziz. Wherein His Royal Highness and his business group,
Al-Bander International Group (BIG) shall be partners with Al-Mal Securities & Services Limited in their
business ventures within & outside Pakistan. We are hopeful that this will be a milestone in further
progress of the company.

Auditors:

The present auditors, Ford Rhodes Sidat Hyder retire and being eligible, offer themselves for
reappointment. The Audit Committee of the Board has recommended their reappointment.

Acknowledgement:

The directors wish to place on record their appreciation and thanks to share holders and customers for
their continued confidence in the Company, the Securities & Exchange Commission of Pakistan and the
Stock Exchanges for their guidance and to all the members of the management and staff for their
dedication and hard work.

On behalf of the Board.

ARIF MAQSOOD HAMIDI

Karachi: 30^th September, 2003 Chairman

Statement showing shares bought and sold by directors, CEO, CFO,
Company Secretary, their spouses and their minor family members

For the year ended June 30, 2003

S.No. Name			Designation		Shares bought	Shares sold
1	Mr. S. Iradat Husain		Chairman
2	Mr. Maqbool Hussain		Vice Chairman		3,500	-
3	Mr. Mohammad Azeem Khan		Director		-	-
4	Mr. Ahmad H. I. Dada		Director		-	-
5	Mr. Amanullah Suleman		Director		-	250,000
6	Mr. Mohammad Shoaib		Director		-	-
7	Mr. Tariq Jamil Khan		Director		-	-
8	Mr. Arif Maqsood Hamidi		Director		-	-
9	Mr. Nasim Ahmed		Director		200,000	-
10	Mr. Tariq Dada		Director		97,500	-
11	Mr Faisal Hussain		Director		-	-
12	Mr. Noor Qadir		Director & Chief Executive		10,500	-
13	Mr. Abdul Qadir Ashrafi		Director		-	-
14	Mr. Noman Majeed Adam		Director		-	-
15 '	Mr. M. Ahsan Hashmi		Company Secretary		.	-
16	Mr. Anwer Iqbal		Chief Financial Officer		-	-
17	Spouses		-		-	-
18	Minor family members		-		-	-

Statement showing attendance of board meetings

For the year ended June 30, 2003

						Leave
S.No.	Name		Designation		Attended	granted
1	Mr. S. Iradat Husain		Chairman		6	1
2	Mr. Maqbool Hussain		Vice Chairman		7	-
3	Mr. Mohammad Azeem Khan		Director		2	.
4	Mr. Ahmad H. I. Dada		Director		6	-
5	Mr. Amanullah Suleman		Director		1	1
6	Mr. Mohammad Shoaib		Director		-	1
7	Mr. Tariq Jamil Khan		Director		2	-
8	Mr. Arif Maqsood Hamidi		Director		4	1
9	Mr. Nasim Ahmed		Director		5	-
10	Mr. Tariq Dada		Director		4	2
11	Mr. Faisal Hussain		Director		5	-
12	Mr. Noor Qadir		Director & Chief Executive		2	.
13	Mr. Abdul Qadir Ashrafi		Director		1	-
14	Mr. Noman Majeed Adam		Director		1	-

PATTERN OF SHAREHOLDING AS AT JUNE 30, 2003

No. of	Having Shares		Shares Held	Percentage
shareholders	From	To		%
81	1	100	8,050	0.16%
717	101	500	344,950	6.90%
56	501	1,000	54,800	1.10%
47	1,001	5,000	123,400	2.47%
14	5,001	10,000	112,400	2.25%
1	10,001	15,000	11,400	0.23%
2	15,001	20,000	40,000	0.80%
1	25,001	30,000	30,000	0 60%
1	30,001	35,000	30,500	0.61%
1	55,001	60,000	55,550	1 11%
1	65,001	70,000	70,000	1 .40%
1	70,001	75,000	70,050	1 .40%
1	95,001	100,000	100,000	2.00%
1	115,001	120,000	119,426	2.39%
1	130,001	135,000	135,000	2.70%
1	145,001	150,000	150,000	3.00%
1	150,001	155,000	154,000	3.08%
1	220,001	225,000	224	4.48%
1	245,001	250,000	250,000	5.00%
1	440,001	445,000	441,000	8.82%
1	1,225,001	1,230,000	1,228,500	24.57%
1	1,245,001	1,250,000	1,246,974	24.94%
933			5,000,000	100.00%