| AKD Securities & Safe Deposit Company
Limited |
|
|
|
|
| Annual
Report 2000 |
|
|
|
| CONTENTS |
|
|
| Company
Information |
|
| Notice
of Meeting |
|
| Directors'
Report |
|
| Auditors'
Report |
|
| Balance Sheet |
|
| Profit
& Loss Account |
|
| Cash
Flow Statement |
|
| Statement
of Changes in Equity |
|
| Notice
to the Accounts |
|
|
|
| COMPANY
INFORMATION |
|
|
| Board
of Directors |
Mr. Aqeel A. Karim Dhedhi |
|
|
(Chairman) |
|
|
Mr. Faisal Bengali |
|
|
(Chief Executive) |
|
|
Mr. Haji A. Karim Haji
Abdul Rehman Dhedhi |
|
|
Mr. Haji Iqbal Haji
Ismail |
|
|
Mr. Iqbal A. Karim |
|
|
Mr. Tariq Adam Ghumra |
|
|
Mrs. Yasmeen Aqeel A.
Karim |
|
|
| Company
Secretary |
Mr. Ilyas Haji Ahmed |
|
|
|
| Auditors |
|
Hyder Bhimji & Co. |
|
|
|
Chartered Accountants |
|
|
|
| Bankers |
|
Muslim Commercial Bank
Ltd. |
|
|
|
United Bank Ltd. |
|
|
|
| Legal
Advisors |
Saiyda Dilshad Begum |
|
|
|
| Registered
Office |
533-534, Karachi Stock
Exchange Bldg., |
|
|
Karachi-74000 |
|
|
Tel: (92-21) 2436461 (3
lines) |
|
|
Fax: (92-21) 2426429 |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the Sixty Fifth Annual General Meeting of the
Shareholders |
|
| of
the Company will be held at the Registered Office of the Company at 533-534, |
|
| Karachi
Stock Exchange Building, Stock Exchange Road, Karachi, on Saturday |
|
| December
30, 2000, at 9:30 a.m. to transact the following business: |
|
|
| 1.
To confirm the Minutes of the Annual General Meeting held on December 27,
1999. |
|
|
| 2.
To receive, consider and adopt the Annual Accounts for the year ended June
30, 2000 |
|
| together with Directors and Auditors Report
thereon. |
|
|
| 3.
To approve Bonus Shares of One Share for every Two Shares i.e. (50%) as |
|
| recommended
by the Board of Directors. |
|
|
| 4.
To appoint Auditors and to fix their remuneration. |
|
|
| 5.
To transact any other business with the permission of the chair, |
|
|
| By
order of the Board |
|
|
| Place: Karachi |
|
| Dated: December 6, 2000 |
Company Secretary |
|
|
| NOTES: |
|
| 1.
The Share Transfer books of the Company will remain closed from December 25, |
|
| 2000
to December 30, 2000 (both days inclusive.) |
|
|
| 2.
A member entitled to attend and vote at this meeting may appoint a proxy. A
proxy |
|
| form
must be received at the Registered Office of the Company duly stamped, signed |
|
| and
witnessed not less than 48 hours before the meeting. |
|
|
| 3.
Members are requested to notify the Company of any change in their addresses. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
Directors have pleasure in presenting the Annual Report together with the
Audited Accounts for |
|
| the
year ended 30th June, 2000. |
|
|
| The
Financial results are as follows: |
|
|
| Profit for the year before
taxation |
|
Rs. |
1,768,414 |
|
| Provision for taxation |
|
Rs. |
29,842 |
|
|
|
------------ |
|
| Profit
after taxation |
|
Rs. |
1,738,572 |
|
| Unappropriated
Profit brought forward |
|
Rs. |
46,021 |
|
|
|
------------ |
|
| Available for Appropriation |
|
Rs. |
1,748,593 |
|
| Appropriation: |
|
|
|
| Transfer
to reserve for issue of bonus share |
|
|
|
| @ 50% Bonus share for every 2
shares |
|
Rs. |
742,815 |
|
|
|
------------ |
|
| Profit carried forward to
balance sheet |
|
Rs. |
1,041,778 |
|
|
========== |
|
| During
the year the Company earned a profit Rs. 1,768,414/- as against a loss Rs.
143,913/- of the |
|
| last
year due to massive rally of stocks quoted on Stock Exchange. The index of
Karachi Stock |
|
| Exchange
reached to peak value at 2050 points from 1200 points, which helped the
company to |
|
| generate
capital gain of Rs. 1,690,600/- as against Rs. NIL in the preceding year. In
view of profit |
|
| earned
the Directors have decided to share the same with the shareholders and to
declare bonus share |
|
| @
50% i.e., one bonus share for every two shares held. |
|
|
| Future
Outlook |
|
| The
stock market suffered a severe blow in April/June this year. It has still not
recovered fully from |
|
| its
effects. Economy in general is being documented and this covers the business
at the stock market |
|
| as
well. Investors will take time to digest this new approach. However, this is
going to bring with it |
|
| much
stability in the market in future years. The very inherent nature of the
business is risky, hence |
|
| your
management will strive to adopt a reasonable risk management strategy and
will do its best to |
|
| earn
profit in the coming year. |
|
|
| Auditors |
|
| The
Auditors M/s Hyder Bhimji & Co., Chartered Accountants retire and being
eligible offer |
|
| themselves
for appointment in the coming year. |
|
|
| Pattern
of Shareholding |
|
| The
pattern of shareholding as on June 30, is annexed to this report. |
|
|
| Acknowledgment |
|
| We
offer our sincere gratitude to the Board of Directors for their continued
guidance and support |
|
| during
the lien years. We also wish to place our appreciation for the Shareholders,
Auditors, Securities |
|
| &
Exchange Commission of Pakistan and Staff of the Company. |
|
|
| On
behalf of the Board of Directors. |
|
|
| FAISAL
BENGALI |
|
| Chief
Executive |
|
| Karachi
the December 6, 2000 |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of M/S. AKD SECURITIES & SAFE |
|
| DEPOSIT
CO. LTD, as at June 30, 2000 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 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. |
|
|
| 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 a 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; |
|
|
| a)
in our opinion, proper books of accounts 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 |
|
| 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, Cash Flow |
|
| Statement
and the Statement of Changes in equity together with .the notes forming |
|
| part
thereof confirm 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's affairs as at June 30, 2000 and of the profit, its cash flows
and |
|
| changes
in equity for the year then ended; and |
|
|
| d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr |
|
| Ordinance,
1980. |
|
|
| KARACHI:
the December 6, 2000 |
|
CHARTERED ACCOUNTANTS |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
| CAPITAL
& RESERVES |
|
| AUTHORISED |
|
3 |
100,000,000 |
100,000,000 |
|
|
========== |
========== |
|
| Issued,
Subscribed & Paid Up |
|
| Capital |
|
4 |
14,884,431 |
1,488,443 |
|
| Reserve
for Bonus Shares |
|
742,815 |
-- |
|
| Accumulated
Profit |
|
1,041,778 |
460,211 |
|
|
------------- |
------------- |
|
|
3,273,036 |
1,534,464 |
|
|
| CURRENT
LIABILITIES |
|
| Accrued
Liabilities |
|
5 |
481,591 |
491,591 |
|
| Deposit-Key
Deposit Lockers |
|
362,901 |
36,290 |
|
| Provision
for Taxation |
|
29,842 |
8,292 |
|
| Unclaimed
Dividend |
|
3,530,221 |
353,022 |
|
|
------------- |
------------- |
|
|
900,745 |
889,195 |
|
|
------------- |
------------- |
|
|
4,173,781 |
2,423,659 |
|
|
========== |
========== |
|
| FIXED
ASSETS |
|
6 |
|
| Operating
Assets |
|
802,871 |
585,110 |
|
|
| SECURITY
DEPOSITS |
|
-- |
323,413 |
|
| CURRENT
ASSETS |
|
| Trade Debts |
|
7 |
3,133,601 |
313,360 |
|
| Short
Term Investments |
|
8 |
629 |
629 |
|
| Advance
Income Tax |
|
|
153,079 |
140,371 |
|
| Cash
& Bank Balances |
|
9 |
2,903,842 |
1,060,776 |
|
|
|
------------- |
------------- |
|
|
3,370,910 |
1,515,136 |
|
|
------------- |
------------- |
|
|
4,173,781 |
2,423,659 |
|
|
========== |
========== |
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
| Karachi
the December 6, 2000 |
|
Faisal Bengali |
|
Iqbal A. Karim |
|
|
Chief Executive |
|
Director |
|
|
|
|
| PROFIT
& LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
|
| Operating
Revenue |
|
10 |
429,521 |
1,515,792 |
|
| Capital
Gain / (Loss) on Investment |
|
11 |
1,690,600 |
-- |
|
|
|
------------ |
------------ |
|
|
|
2,120,121 |
1,515,792 |
|
| Operating
Expenses |
|
12 |
351,707 |
1,660,076 |
|
|
|
------------ |
------------ |
|
| Operating
Profit Before Taxation |
|
|
1,768,414 |
(144,284) |
|
| Other Income |
|
13 |
-- |
371 |
|
|
------------ |
------------ |
|
| Profit
before taxation |
|
1,768,414 |
(143,913) |
|
|
|
|
| Provision
for Taxation - Current |
|
(29,842) |
(8,292) |
|
| - Prior |
|
-- |
(33,422) |
|
|
------------ |
------------ |
|
|
(29,842) |
(41,714) |
|
|
------------ |
------------ |
|
| Profit
after taxation |
|
1,738,572 |
(185,627) |
|
| Accumulated
Profit brought forward |
|
46,021 |
231,648 |
|
|
------------ |
------------ |
|
|
1,784,593 |
46,021 |
|
| Appropriation: |
|
|
| Reserve
for Bonus Shares |
|
| Final
& 50% (1999:Nil) |
|
742,815 |
-- |
|
|
------------ |
------------ |
|
|
742,815 |
-- |
|
|
------------ |
------------ |
|
| Accumulated
Profit carried forward to Balance Sheet |
|
1,041,778 |
46,021 |
|
|
========== |
========== |
|
| Earning
per share |
|
15 |
11.70 |
(1.25) |
|
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
| Karachi
the December 6, 2000 |
|
Faisal Bengali |
|
Iqbal A. Karim |
|
|
Chief Executive |
|
Director |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
| Cash
Generated from Operating Activities |
|
|
| Profit
Before Taxation |
|
1,768,414 |
(143,913) |
|
| Adjustment
for: |
|
|
|
| Depreciation |
|
105,652 |
65,012 |
|
|
------------ |
------------ |
|
| Profit
before working capital changes |
|
1,874,066 |
(78,901) |
|
|
| Changes
in working capital:- |
|
| (Increase)
/ Decrease in Current Assets: |
|
| Trade Debts |
|
-- |
168,677 |
|
| Advances
& Prepayments |
|
-- |
275,203 |
|
| Increase
/ (Decrease) in Current Liabilities: |
|
| Accrued
Liabilities |
|
(10,000) |
(44,308) |
|
|
------------ |
------------ |
|
|
(10,000) |
399,572 |
|
|
------------ |
------------ |
|
| Cash
generated from operations |
|
1,864,066 |
320,671 |
|
| Taxes Paid |
|
(21,000) |
(55,400) |
|
|
------------ |
------------ |
|
|
(21,000) |
(55,400) |
|
|
------------ |
------------ |
|
| Net
Cash Generated from Operating Activities |
|
1,843,066 |
265,271 |
|
|
| Cash
(Outflow) / Inflow from Investing Activities |
|
| Capital
Expenditure |
|
323,413 |
-- |
|
| Security
Deposit |
|
(323,413) |
288,400 |
|
|
------------ |
------------ |
|
| Net
cash inflow / (outflow) from investing activities |
|
-- |
288,400 |
|
|
------------ |
------------ |
|
| Net
Increase in Cash & Cash equivalent |
|
1,843,066 |
553,671 |
|
|
|
|
| Cash
& Cash Equivalent at the beginning of the year |
|
1,060,776 |
507,105 |
|
|
------------ |
------------ |
|
| Cash
& Cash Equivalent at the end of the year |
|
2,903,842 |
1,060,776 |
|
|
========== |
========== |
|
|
|
|
|
| Karachi
the December 6, 2000 |
|
Faisal Bengali |
|
Iqbal A. Karim |
|
|
Chief Executive |
|
Director |
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
Issued, subscribed |
Reserve for |
Accumulated |
|
|
|
& paid up |
Bonus Shares |
Profit |
Total |
|
|
Rupees |
Rupees |
Rupees |
Rupees |
|
|
|
|
| Balance
as at June 30, 1998 |
|
1,488,443 |
-- |
231,648 |
1,720,091 |
|
| (Loss)
for the year |
|
-- |
-- |
(185,627) |
(185,627) |
|
|
------------ |
------------ |
------------ |
------------ |
|
| Balance
as at June 30, 1999 |
|
1,488,443 |
-- |
46,021 |
1,534,464 |
|
| Profit
for the year |
|
-- |
-- |
1,738,572 |
1,738,572 |
|
| Reserve
for Bonus Shares |
|
-- |
742,815 |
(742,815) |
-- |
|
|
------------ |
------------ |
------------ |
------------ |
|
| Balance
as at June 30, 2000 |
|
1,488,443 |
742,815 |
1,041,778 |
3,273,036 |
|
|
========== |
========== |
========== |
========== |
|
|
|
Faisal Bengali |
|
Iqbal A. Karim |
|
| Karachi
the December 6, 2000 |
|
Chief Executive |
|
Director |
|
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 2000 |
|
|
| 1.
THE COMPANY AND ITS BUSINESS: |
|
| The
Company was incorporated as a Public Limited Company in the year 1936 and its |
|
| shares
are quoted on the Karachi Stock Exchange. The Company's Principal activity is |
|
| leasing
/ hiring of safe deposit lockers. |
|
|
| 2.
ACCOUNTING POLICIES: |
|
| 2.1
Accounting Convention |
|
| The
accounts of the company are prepared under the historic cost convention. |
|
|
| 2.2
Fixed Assets: |
|
| a)
Fixed Assets are stated at cost less accumulated depreciation. |
|
| b)
Full year's depreciation is charged on the Assets acquired during the year, |
|
| whereas
no depreciation is charged in the year of disposal. |
|
| c)
Depreciation is charged on the Assets by reducing balance method. |
|
| d)
Normal repairs and maintenance are charged to income as & when incurred. |
|
|
| 2.3
Short Term Investment: |
|
| Investment
in quoted shares is stated at cost. |
|
|
| 2.4
Trade Debtors: |
|
| These
are stated net of provision for doubtful debts. Full provision is made
against |
|
| debts
considered doubtful. |
|
|
| 2.5
Revenue Recognition: |
|
| a)
Realised gains on investment |
|
| Capital
gains or losses on sale of investments are taken to income in the period |
|
| in
which they arise. |
|
| b)
Dividend income is recognised at the time of book closure of the company |
|
| declaring
the dividend. |
|
| c)
Consultancy and advisory fee are recognised as and when services are |
|
| provided. |
|
| d)
Hiring income of lockers is recognised as and when locker services are |
|
| provided. |
|
|
| 2.6 Taxation: |
|
| The
charge for current taxation is based on taxable income, if any, at the
current |
|
| rate
of taxation after considering admissible tax credits and rebates, if any. The |
|
| Company's
accounts for deferred taxation based on the material timing differences |
|
| using
the liability method, but does not account for any net deferred tax. |
|
|
|
2000 |
1999 |
|
|
Rupees |
Rupees |
|
| 3.
AUTHORISED CAPITAL |
|
| 10,000,000
Ordinary shares of Rs 10/- each. |
|
100,000,000 |
100,000,000 |
|
|
========== |
========== |
|
|
|
|
| 4.
ISSUED, SUBSCRIBED & |
|
| PAID
UP CAPITAL |
|
| 49,521
Ordinary shares of Rs 10/- |
|
| fully paid in cash. |
|
495,210 |
495,210 |
|
| 99,042
Ordinary shares of Rs 10/- |
|
| issued as fully paid
Bonus Shares |
|
990,420 |
990,420 |
|
| 479
Ordinary shares of Rs 10/- each |
|
| forfeited |
|
2,813 |
2,813 |
|
|
------------- |
------------- |
|
|
1,488,443 |
1,488,443 |
|
|
========== |
========== |
|
|
|
|
| 5.
EXPENSES & OTHER LIABILITIES |
|
| Accrued Expenses |
|
25,006 |
35,006 |
|
| Other Liabilities |
|
456,585 |
456,585 |
|
|
------------- |
------------- |
|
|
481,591 |
491,591 |
|
|
========== |
========== |
|
|
|
|
| 6.
FIXED ASSETS |
|
|
|
|
COST |
|
DEPRECIATION |
|
| Particulars |
|
As at |
|
As at |
Rate |
As at |
For the |
As at |
Value as on |
|
30-06-99 |
Addition |
30-06-00 |
% |
30-06-99 |
year |
30-06-00 |
30-06-00 |
| Furniture |
|
276,350 |
-- |
276,350 |
10 |
81,663 |
19,469 |
101,132 |
175,218 |
| Office
Equipment |
413,500 |
-- |
413,500 |
10 |
125,410 |
28,809 |
154,219 |
259,281 |
| Computers |
|
121,250 |
175,413 |
296,663 |
10 |
40,241 |
25,642 |
65,883 |
230,780 |
| Motor Vehicle |
|
-- |
148,000 |
148,000 |
10 |
-- |
29,600 |
29,600 |
118,400 |
| Lockers |
|
32,500 |
-- |
32,500 |
10 |
11,176 |
2,132 |
13,308 |
19,192 |
|
------------- |
------------- |
------------- |
------------- |
------------- |
------------- |
------------- |
------------- |
| Total Rs. 2000 |
|
843,600 |
323,413 |
1,167,013 |
|
258,490 |
105,652 |
364,142 |
802,871 |
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
| Total Rs. 1999 |
|
843,600 |
-- |
843,600 |
|
193,478 |
65,012 |
258,490 |
585,110 |
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| 7.
TRADE DEBTS- (UNSECURED CONSIDERED GOOD) |
|
| Receivable against
consultancy fee |
|
300,000 |
300,000 |
|
| Reimburseable consultancy
expenses |
|
13,360 |
13,360 |
|
|
----------- |
----------- |
|
|
313,360 |
313,360 |
|
|
========== |
========== |
|
|
|
|
| 8.
SHORT TERM INVESTMENT |
|
|
|
| 119 shares Pakistan
Jute & Synthetics Ltd. |
|
629 |
629 |
|
| (1999:119
shares) |
|
========== |
========== |
|
|
| 9.
CASH & BANK BALANCES |
|
| Cash in Hand |
|
-- |
742 |
|
| Cash at Bank |
|
|
|
| -
Current Account |
|
2,903,842 |
1,060,034 |
|
|
----------- |
----------- |
|
|
2,903,842 |
1,060,776 |
|
|
========== |
========== |
|
|
|
|
| 10.
OPERATING REVENUES: |
|
