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| ESCORT
INVESTMENT BANK LIMITED |
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| ANNUAL REPORT
2003 |
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| VISION |
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| "Value
addition for our stakeholders through enhanced business |
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| activity and a
shift from Risk Avoidance to Better Risk |
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| Identification
and Management" |
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| MISSION |
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| To build
Escorts Investment Bank Limited into an elite institute |
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| comparable
with, if not better than any top quality local or |
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| foreign
financial institution operating in Pakistan, in terms of a |
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| progressive
corporate culture and an autonomous committed |
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| and dedicated
Executive Management with an eye on the |
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| Future. |
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| CONTENTS |
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| Corporate
Information |
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| Notice of
Annual General Meeting |
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| On the Roac!
to Progress |
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| (Six years at
a Glance in Tabular form). |
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| Chief
Executive's Review |
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| Directors' Report |
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| Statement of
Compliance with Code of Corporate Governance |
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| Auditors'
Review Report on Compliance with the Code of Corporate Governance |
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| Statement at
Ethics & Business Practices |
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| Auditors'
Report to the Members |
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| Financial
Statements |
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| • Balance
Sheet |
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| • Profit & Loss Statement |
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| • Cash flow
Statement |
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| • Statement of
Changes in Equity |
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| • Notes to the
Accounts |
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| Pattern of
Shareholding |
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| CORPORATE
INFORMATION |
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| BOARD OF
DIRECTORS |
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| Chairman |
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Bashir Ahmed |
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| President
& Chief Executive |
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Rashid Mansur |
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| Executive
Director |
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Shazia Bashir |
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| Directors |
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Abdul Latif Uqaili (nominee Investment
Corporation of Pakistan) |
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Bairam Qureshy |
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Darakhshan Bashir |
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Farrukh Ahmad Kamran |
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Maryam Bashir |
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Mutahir Ahmed |
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Qaim Mehdi |
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Tajamul Hussain Bokhari (nominee National Bank
of Pakistan) |
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| Company
Secretary |
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Shauzab Ali |
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| AUDIT
COMMITTEE |
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| Chairman |
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Bashir Ahmed |
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| Members |
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Abdul Latif Uqaili |
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Bairam Qureshy |
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| Secretary |
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Arsalan Baig |
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| EXECUTIVE
MANAGEMENT |
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| President
& Chief Executive |
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Rashid Mansur |
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| Chief
Operating Officer |
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Muhammad Naeem Khan |
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| Executive
Director |
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Shazia Bashir |
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| Chief
Financial Officer |
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Shauzab Ali |
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| Head of
Capital Market Division |
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Rehmat Ali Hasnie |
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| Head of
Treasury Division |
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Arshad 1. Khan |
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| Head of
Marketing & Credits Division |
Saqib Ahmed Khan |
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| Head of
Structured Finance Division |
Shauzab Ali |
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| Head of
Internal Audit Division |
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Arsalan Baig |
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| Auditors |
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Ebrahim & Co. |
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Chartered Accountants |
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| Legal Advisors |
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Mandviwalla & Zafar |
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Advocates and Legal Consultants |
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| Tax Consultants |
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KPMG Taseer Hadi Khalid & Co. |
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Chartered Accountants * |
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| Share Registrars |
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Hameed Majeed Associates (Pvt) Ltd |
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| Bankers |
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PICIC Commercial Bank Limited |
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Muslim Commercial Bank Limited |
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The Bank of Khyber Limited |
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Union Bank Limited |
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| Head Office
& Lahore Branch |
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Escorts House |
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26 - Davis Road, Lahore |
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Tel: (042)637 1931-34 |
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Fax: (042) 637 5950 |
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Email: mailmanager@escortsbank.net |
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Web site: www.escortsbank.net |
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| Branch Offices |
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Karachi Office |
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Ground Floor, Bharia Complex I |
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Moulvi Tamizzudin Khan Road |
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Tel: (021)561 0448, 561 t221 |
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Fax: (021)561 0538 |
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Email: karachi@escortsbank.net |
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Islamabad Office |
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15 - E, Mezzanine Floor |
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Rehmat Center, Blue Area |
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Tel: (051)2874601-03 |
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Fax:(051)2874604 |
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Email: islamabad@escortsbank.net |
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| Brokerage
Houses |
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Room No. M-6, Lahore Stock Exchange Building, |
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19-Khayaeban-e-lqbal, Lahore |
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Tel: (042) 630 71 63-68 |
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Fax: (042)6307168 |
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Ground Floor |
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State Life Building |
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Davis Road, Lahore |
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Tel: (042) 920 0390, 920 0396 |
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| NOTICE OF
ANNUAL GENERAL MEETING |
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| NOTICE IS
HEREBY GIVEN THAT The 8th Annual General Meeting of the shareholders of
ESCORTS |
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| INVESTMENT
BANK LIMITED will be held on Wednesday, October 29, 2003 at 11:30 A.M. at the |
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| registered
office of the Company at Escorts House, 26-Davis Road, Lahore to transact the
following |
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| business : |
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| ORDINARY
BUSINESS |
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| 1. To confirm the minutes of 7th Annual
General Meeting held on December 12, 2002. |
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| 2. To receive and adopt the Directors' and
Auditors' Report and Audited Accounts for the year |
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| ended June 30,
2003. |
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| 3. To approve the payment of dividend @
Rs. 1.5 per share (15%) for the year ended June 30, |
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| 2003 |
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| 4. To appoint the Auditors and to fix
their remuneration. The present Auditors M/s Ebrahim & Co., |
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| Chartered
Accountants, retire and being eligible, offer themselves for re-appointment. |
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| SPECIAL
BUSINESS |
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| 5 To
increase the number of directors from eleven to twelve. |
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| OTHER BUSINESS |
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| 6 To transact any other business of the
Company with the permission of the chair. |
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| By order of
the Board |
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| Lahore
Shauzab AM |
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| September 22,
2003
Company Secretary |
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| NOTES |
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| i. A member entitled to attend and vote
at this meeting is entitled to appoint a proxy to attend |
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| the meeting
and vote for him/her. Form of Proxy is enclosed with the annual report.
Proxies |
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| in order to be
effective, must be received at the registered office of the Company, at least
48 |
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| hours before
the time of holding the meeting. |
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| ii. The members are requested to
immediately notify the change in address, if any. |
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| iii. Account
holders and sub-account holders book entry securities of the Company in
Central |
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| Depository
System of Central Depository Company of Pakistan Limited are requested to |
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| bring original
I.D. Card or attested copy of I.D. Card for identification purposes. |
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| iv. The
Members Register will remain closed from October 22, 2003 to October 28, 2003
(both |
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| days
inclusive). Transfer received in order at the Registered Office by the close
of business |
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| hours on
October 21, 2003 will be treated in time. |
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| ON THE ROAD TO
PROGRESS |
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| SIX YEARS OF
ESCORTS BANK AT A GLANCE |
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| SUMMARY |
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2003 |
2002 |
2001 |
2000 |
1999 |
1998 |
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| OPERATING
REULTS |
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| Gross Income |
|
233,916 |
147,793 |
97,803 |
94,585 |
89,385 |
69,833 |
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| Interest Expense |
|
115,310 |
88,004 |
63,406 |
58,870 |
48,227 |
25,258 |
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| Operating
Expenses |
44,536 |
31,731 |
24,491 |
20,900 |
18,896 |
18,634 |
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| Provision
against Non- |
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| Performing Loans |
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1,306 |
8,068 |
3,650 |
2,450 |
- |
- |
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| Pre-Tax Profit |
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72,064 |
19,283 |
5,823 |
12,050 |
21,330 |
20,336 |
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| After-Tax Profit |
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57,562 |
12,283 |
688 |
8,150 |
14,330 |
13,442 |
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| Dividends (%) |
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15 |
6 |
- |
5 |
10 |
- |
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| BALANCE SHEET |
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Rs in '000' |
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| Shareholder's
Fruity |
241,195 |
213,632 |
213,350 |
212,662 |
214,512 |
220,183 |
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| Deposits |
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692,668 |
731,582 |
316,199 |
423,969 |
513,352 |
309,527 |
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| Borrowings
from Financial |
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| Institutions |
|
777,900 |
310,000 |
175,000 |
58,000 |
- |
- |
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| Total Liabilities |
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1,692,905 |
1,179,613 |
21,206 |
523,308 |
559,942 |
323,131 |
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| Fixed
Assets ' |
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13,208 |
13,398 |
7,464 |
6,328 |
6,184 |
8,022 |
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| Financing -
Net of Provision |
375,654 |
207,014 |
123,551 |
99,348 |
104,198 |
137,228 |
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| Investments
& Placements |
1,427,863 |
938,660 |
498,876 |
523,619 |
490,611 |
356,248 |
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| Total Assets |
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2,026,831 |
1,412,104 |
735,256 |
735,970 |
774,454 |
543,314 |
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| FINANCIAL
RATIOS |
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| Revenue to
Expenses (Times) |
1.46 |
1.23 |
1.11 |
1.18 |
1.31 |
1.41 |
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| Advances to
Deposits (Times) |
0.54 |
0.28 |
0.39 |
0.23 |
0.2 |
0.44- |
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| Return on
Average Equity (%) |
25.31 |
5.75 |
0.32 |
3.82 |
6.59 |
6.3 |
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| Return on
Average Assets (%) |
3.35 |
1.14 |
0:09 |
1.08 |
2.17 |
2.27 |
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| Cost to income
Ratio (%) |
68.63 |
81.5 |
90,31 |
84.67 |
76.14 |
70.88 |
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| Borrowings to
Equity (Times) |
3.23 |
1.45 |
0.82 |
0.27 |
- |
- |
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| Total
Liabilities to Equity (Times) |
7.02 |
5.52 |
2.44 |
2.46 |
2.61 |
1.47 |
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| Price Earning
Ratio |
3.27 |
12.62 |
147.06 |
13.51 |
16.06 |
4.99 |
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| Earning per
Share (Rs.) |
2.878 |
0.614 |
0.034 |
0.407 |
0.716 |
0.672 |
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| Net Asset
Value per Share (Rs.) |
16.7 |
11.62 |
10.7 |
10.63 |
10.73 |
11.01 |
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| Market Value
per Share (Rs.) |
9.4 |
7.75 |
5 |
5.5 |
11.5 |
3.35 |
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| CHIEF
EXECUTIVE'S REVIEW |
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| An Eye On The
Future! |
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| It's a very
exciting and satisfying moment for me as I brief you on the performance of
Escorts |
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| Investment
Bank. Exciting because the period under review is my first full Financial
Year as the |
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