| Capital Assets Leasing Corporation Limited |
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| Annual
Report 2000 |
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| CONTENTS |
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| Corporate
Information |
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| Notice
of Meeting |
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| Directors'
Report |
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| Pattern
of Shareholding |
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| Auditors'
Report |
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| Balance Sheet |
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| Profit
& Loss Account |
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| Cash
Flow Statement |
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| Notes
to the Accounts |
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| CORPORATE
INFORMATION |
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| Board
of Directors |
|
Mr. Salman Qureshi
(Chairman) |
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|
Mr. Nisar A. Memon |
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Mr. Mohammad Kalim |
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Mr. Ilyas Mohsin |
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Mr. Aamir Qureshi |
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Mr. Anwar Shaft |
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Mr. Jehangir Shah |
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| Chief
Executive Officer |
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Mr. Jehangir Shah |
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| Company
Secretary |
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Mr. Rizwan Akhtar |
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| Auditors |
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M/s Ebrahim & Company |
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Chartered Accountants |
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2nd Floor, Block
"C" |
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Lakson Square Building |
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Sarwar Shaheed Road,
Karachi. |
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| Registrars
& Share Transfer Office |
M/s Softlink (Pvt.)
Limited |
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Wings Arcade, 1-K
(Commercial) |
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Model Town, Lahore. |
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Tel.# 5839180-2
Fax#5837061 |
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| Legal Advisors |
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M/s Mohsin Tayebally
& Co., Advocates |
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M/s Rizvi, Isa & Co.,
Advocates |
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| Main Bankers |
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ABN Amro Bank |
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Askari Commercial Bank
Limited |
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Gulf Commercial Bank
Limited |
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National Bank of Pakistan |
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Platinum Commercial Bank
Limited |
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Prime Commercial Bank
Limited |
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Union Bank Limited |
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| Registered
Office |
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10/1 l-B, 3rd Floor, LDA
Flats |
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Lawrence Road, Lahore. |
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Telephone # 631 1604-5 |
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Fax#6370017 |
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Email:
calcorp@nexlinx.net.pk |
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| Branch Office |
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43/10/G, Block-VI |
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Dr. Mehmood Hussain Road, |
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PECHS, Karachi. |
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Telephone # 4544115-6 |
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Fax # 4523822 |
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Email:
calcorp@cyber.net.pk |
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| NOTICE
OF 8TH ANNUAL GENERAL MEETING |
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| Notice
is hereby given that the eighth (8th) Annual General Meeting of the
Shareholders of |
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| CAPITAL
ASSETS LEASING CORPORATION LIMITED will be held at the Registered Office of |
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| the
Company located at 10/11-B, 3rd Floor, LDA Flats, Lawrence Road, Lahore on
Friday, 15th |
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| December
2000 at 10:30 a.m. to transact the following business: |
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| 1.
To confirm the minutes of 7th Annual General Meeting of the company held on |
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| December
30, 1999. |
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| 2.
To receive, consider and adopt the Audited Accounts of the Company for the
year |
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| ended
June 30, 2000 together with the Directors' and Auditors' Reports thereon. |
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| 3.
To appoint Auditors of the Company and to fix their remuneration. The present |
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| Auditors
M/s Ebrahim & Company Chartered Accountants, retire and being eligible |
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| offer
themselves for reappointment. |
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| Special
Business |
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| 4.
To approve the remuneration of Chief Executive. |
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| 5.
To transact any other business with the permission of the Chair. |
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BY ORDER OF THE BOARD |
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| Lahore |
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|
(Rizwan Akhtar) |
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| November 24, 2000 |
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|
Company Secretary |
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| Notes: |
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| 1.
The Share Transfer Books of the Company will remain closed from 7th December |
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| 2000
to 15th December, 2000 (both days inclusive). |
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| 2.
A member eligible to attend and vote at this Meeting is entitled to appoint
another |
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| member
as his/her proxy to attend and vote instead of him/her. A proxy must be a |
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| member
of the company. Proxies in order to be effective, must be received at the |
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| Registered
Office of the Company not less than 48 hours before the time of Meeting. |
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|
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| 3.
Any individual/beneficial owner of Central Depository Company (CDC), entitled
to |
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| vote
at this meeting must bring his/her National Identity Card to prove his/her |
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| identity.
In case of proxy must enclose an attested copy of his/her National Identity |
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| Card.
Representatives of corporate members should bring the usual documents |
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| required
for such purpose |
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| 4.
A Statement under Section 160 of Companies Ordinance 1984 pertaining to the |
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| Special
Business is being sent to the shareholders along with this notice. |
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| 5.
Members are requested to notify the changes of address, if any, to the
Company's |
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| Share
Registrars M/s. Softlink (Pvt.) Ltd. Wings Arcade, 1-K (Commercial) |
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| Model
Town Lahore, immediately. |
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| DIRECTORS'
REPORT |
|
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| The
Board of Directors is pleased to place before the Shareholders the 8th Annual
Report of the |
|
| Company
together with its Accounts for the year ended June 30, 2000. |
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| Financial
Results: |
|
Rupees in
thousand |
|
|
| Gross revenues |
|
29,577 |
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| Total expenses |
|
25,836 |
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|
------------------ |
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| Operating
profit for the year |
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3,741 |
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| Provisions |
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| For
potential losses (Lease) |
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|
3,377 |
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| For
potential losses (Morabaha/short-term) |
|
(2,950) |
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| For
potential losses (Other receivables) |
|
463 |
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| For
taxation (including Deferred Taxation) |
|
311 |
1,201 |
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------------------ |
------------------ |
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| Profit
after taxation |
|
2,540 |
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| Unappropriated
profit brought forward |
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22,170 |
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------------------ |
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| Profit
available for appropriation |
|
24,710 |
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| Appropriations |
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| Transfer
to statutory reserves @ 20% |
|
508 |
508 |
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------------------ |
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| Unappropriated
profit carried forward |
|
24,202 |
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|
------------------ |
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| Review
of Operations: |
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| During
the year under review, your company's Balance Sheet has grown to Rs.261
million and we are |
|
| pleased
to point out that the company is showing steady growth in balance sheet size.
126 lease |
|
| contracts
were signed. Gross lease disbursements totaled Rs. 120.65 million. Net yield
on the lease |
|
| portfolio
for the year was 23.35%. Short term financing facilities extended during the
year were to the |
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| tune
of Rs. 10.485 million. The management ensured that minimum 70% funds were
deployed in |
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| leasing
business as per rules. During the year under review leasing operations
contributed the largest |
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| revenue,
Rs.28.76 million towards the profit of the company. |
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| Your
Directors are pleased to inform you that the company has continued to market
for quality |
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| business
and adhered to its strict standards for evaluating proposals, a policy which
is helping to keep |
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| its
lending portfolios healthy. |
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| Fresh
lease disbursements were made both to existing lessees with good track
records and new |
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| lessees
having market reputation. The assets leased during the year were mainly
vehicles, both |
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| commercial
& private, and also machinery and equipment. Our support to the Education
and |
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| Information
Technology sectors continue with very encouraging results. |
|
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| Though
the general economic and business activities remained weak during the year
despite the |
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| Governments
efforts to encourage the business community and investors, your company's
balance |
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| sheet
continued to grow |
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| The
pace of recoveries continued to be accelerated, and again during the year
under review overall |
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| satisfactory
recoveries were made. Where legal action was necessitated, such action had
been |
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| initiated
and we are pleased that favourable decrees are being awarded to us by the
Courts based on |
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| strong
documentation and assets strength. |
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| Resource
Mobilization: |
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| Our
creditor financial institutions continue to support us and our relationships
are being stronger. The |
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| management
ensures that the company's commitments are met on time. |
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| We
received permission to launch our Certi£1cates of Investment in June, and
this is expected to be a |
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| profitable
source for resource mobilization due to their economic cost factor. |
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| Regular
lease rental receipts were also a major source of resource mobilization. |
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| Entity Rating: |
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| DCR-VIS
Credit Rating Company completed our Entity Rating. We are pleased to inform
you that |
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| the
company has obtained the following ratings:- |
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| Medium
to Long Term: |
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BBB- |
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| Short Term: |
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D3 |
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| These
are satisfactory ratings and qualify the entity / issue as to investment
grade. |
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| Future
Outlook: |
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| Business
activity is picking up as the overall economic scenario emerges clearer
especially due to the |
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| Governments
efforts to encourage investment. As activity picks-up so also do financial
institutions |
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| become
active. We are encouraged by the fact that the year just ended had a very
satisfactory ending |
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| and
we are positive the new financial year would be even better for us. |
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| Leasing
business has now become a popular mode for acquisition and financing of
assets and we |
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| expect
it to continue to grow in demand, resulting in further growth of the sector,
of which your |
|
| company
is an active part. |
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|
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| The
issue of increase in Paid-up Capital to Rs 200 million by leasing companies
is to be addressed by |
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| the
Board and Shareholders during this financial year. The Securities &
Exchange Commission |
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| requires
the affected companies to raise their Capital by June 30th, 2001. However the |
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| circumstances
in the capital markets prevalent presently and the overall state of economy
make it a |
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| major
challenge to be successfully handled. We are also in contact with the Leasing
Association of |
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| Pakistan
on this matter. |
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| We
assure you your Directors and the company's management are fully aware and
conscious of their |
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| responsibilities
towards their shareholders interests, the company's growth and the country's |
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| prosperity,
and are working keeping these in focus. |
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| Board
of Directors: |
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| Choudhry
Fazal-i-Hussain resigned as a Director of the company and Mr. Ilyas Mohsin
was inducted |
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| to
complete remainder of the tenure. |
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| Auditors: |
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| The
Company's Auditors M/s Ebrahim & Company, Chartered Accountants, retire
and being eligible |
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| offer
themselves for re-appointment. |
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| Acknowledgments: |
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| We
take this opportunity to thank our valued clients, shareholders, creditor
financial institutions, the |
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| Securities
& Exchange Commission of Pakistan, State Bank of Pakistan, Leasing
Association of |
|
| Pakistan
and all three Stock Exchanges of Pakistan, for their continued support and
guidance. The |
|
| Board
expresses its appreciation and thanks to the management and staff of the
company for their |
|
| commitment
and dedicated hard work without which these results would not have been
possible. |
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| Pattern
of Shareholding: |
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| Pattern
of shareholding as on June 30th 2000 is annexed to this report. |
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|
On behalf of the Board of Directors |
|
|
|
|
|
|
|
|
Jehangir Shah |
|
Salman Qureshi |
|
| Lahore |
|
|
Managing Director & |
|
Chairman |
|
| November
15, 2000 |
|
Chief Executive |
|
|
|
|
| PATTERN
OF HOLDING OF SHARES |
|
| HELD
BY THE SHAREHOLDERS AS AT 30TH JUNE 2000 |
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| No. of |
Shareholding |
Total |
|
| shareholders |
From |
To |
shares held |
|
|
|
| 31 |
1 |
100 |
2900 |
|
|
| 425 |
101 |
500 |
198100 |
|
|
| 128 |
501 |
1000 |
118050 |
|
|
| 123 |
1001 |
5000 |
288000 |
|
|
| 16 |
5001 |
10000 |
132500 |
|
|
| 6 |
10001 |
15000 |
76000 |
|
|
| 1 |
15001 |
20000 |
18000 |
|
|
| 6 |
20001 |
25000 |
136750 |
|
|
| 1 |
25001 |
30000 |
30000 |
|
|
| 1 |
30001 |
35000 |
30500 |
|
|
| 1 |
35001 |
40000 |
40000 |
|
|
| 1 |
45001 |
50000 |
50000 |
|
|
| 2 |
95001 |
100000 |
200000 |
|
|
| 1 |
115001 |
120000 |
116600 |
|
|
| 1 |
140001 |
145000 |
143000 |
|
|
| 1 |
145001 |
150000 |
150000 |
|
|
| 1 |
160001 |
165000 |
164600 |
|
|
| 1 |
165001 |
170000 |
168300 |
|
|
| 1 |
200001 |
205000 |
203800 |
|
|
| 1 |
265001 |
270000 |
269300 |
|
|
| 2 |
370001 |
375000 |
750000 |
|
|
| 2 |
385001 |
380000 |
771700 |
|
|
| 1 |
450001 |
455000 |
455000 |
|
|
| 1 |
495001 |
500000 |
499500 |
|
|
| 1 |
1610001 |
1615000 |
1611350 |
|
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|
------------------ |
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|
|
6623950 |
|
|
|
------------------ |
|
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| With
Central Depository Company of Pakistan |
|
|
| 2 |
1 |
100 |
200 |
|
|
| 29 |
101 |
500 |
14250 |
|
|
| 26 |
501 |
1000 |
25000 |
|
|
| 41 |
1001 |
5000 |
100550 |
|
|
| 6 |
5001 |
10000 |
36500 |
|
|
| 4 |
10001 |
15000 |
48800 |
|
|
| 1 |
15001 |
20000 |
16500 |
|
|
| 1 |
25001 |
30000 |
27000 |
|
|
| 2 |
45001 |
50000 |
95150 |
|
|
| 1 |
55001 |
60000 |
59000 |
|
|
| 1 |
75001 |
80000 |
77500 |
|
|
| 2 |
125001 |
130000 |
257000 |
|
|
| 1 |
145001 |
150000 |
150000 |
|
|
| 1 |
195001 |
200000 |
199500 |
|
|
| 1 |
245001 |
250000 |
250000 |
|
|
| 1 |
250001 |
255000 |
254400 |
|
|
| ------------------ |
|
------------------ |
|
|
| 120 |
|
1611350 |
|
|
| ========== |
|
========== |
|
|
|
|
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|
|
| Categories
of Shareholders (including CDC) |
Number |
Share Held |
Percentage |
|
|
|
|
| 1. Individuals |
|
843 |
3310350 |
49.975 |
|
| 2.
Investment Companies |
|
3 |
79300 |
1.197 |
|
| 3.
Insurance Companies |
|
3 |
205050 |
3.096 |
|
| 4.
Joint Stock Companies |
|
9 |
14700 |
0.222 |
|
| 5.
Financial Institution |
|
14 |
2057550 |
31.062 |
|
| 6.
Modaraba Companies |
|
1 |
500 |
0.008 |
|
| 7.
Leasing Companies |
|
1 |
2000 |
0.030 |
|
| 8. Others |
|
2 |
954500 |
14.410 |
|
|
|
------------------ |
------------------ |
------------------ |
|
| Total |
|
876 |
6623950 |
100.00 |
|
|
|
========== |
========== |
========== |
|
|
|
|
|
|
| Others |
|
| Association |
|
|
| Abandoned
Property |
|
-- |
-- |
-- |
|
| Governments
Authorities |
|
-- |
-- |
-- |
|
| Modarbas
Management |
|
-- |
-- |
-- |
|
| Non-Resident |
|
|
-- |
-- |
-- |
|
| Foreign
Company |
|
-- |
-- |
-- |
|
| Trust |
|
2 |
954500 |
14.41 |
|
|
|
------------------ |
------------------ |
------------------ |
|
| Total |
|
2 |
954500 |
14.41 |
|
|
========== |
========== |
========== |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of CAPITAL ASSETS
LEASING CORPORATION |
|
| LIMITED 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 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. |
|
|
| 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 arc 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 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 except for the change as explained in note 2.4 with |
|
| which
we concur; |
|
|
|
|
| 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, 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'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 |
|
|
Ebrahim & Company. |
|
| November
15, 2000 |
|
Chartered Accountants |
|
|
|
|
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
NOTE |
Rupees |
Rupees |
|
|
| SHARE
CAPITAL AND RESERVES |
|
| Authorised
capital |
|
| 10,000,000
ordinary shares of |
|
| Rs. 10 each |
|
|
100,000,000 |
100,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up capital |
|
| 6,623,950
ordinary shares of |
|
| Rs.10
each fully paid in cash |
|
|
66,239,500 |
66,239,500 |
|
| Reserves |
|
|
3 |
8,120,448 |
7,612,407 |
|
| Unappropriated
profit |
|
24,201,855 |
22,169,693 |
|
|
|
|
------------------ |
------------------ |
|
|
98,561,803 |
96,021,600 |
|
|
| LONG
TERM LOANS |
|
4 |
10,416,668 |
-- |
|
|
|
|
|
|
| LIABILITIES
AGAINST ASSETS |
|
|
|
| SUBJECT
TO FINANCE LEASE |
5 |
3,078,729 |
659,831 |
|
|
|
|
|
|
| DEFERRED
LIABILITIES |
|
6 |
2,920,770 |
3,197,170 |
|
| LONG
TERM DEPOSITS |
|
7 |
25,796,929 |
25,252,421 |
|
| CURRENT
LIABILITIES |
|
|
|
| Current
portion of long term liabilities |
8 |
28,775,990 |
19,219,928 |
|
| Short
term loans and running finances |
9 |
82,513,755 |
58,367,704 |
|
| Creditors,
accrued and other liabilities |
10 |
6,306,378 |
5,721,938 |
|
| Provision
for taxation |
|
|
1,467,000 |
1,430,351 |
|
| Dividend |
|
11 |
885,415 |
3,854,481 |
|
|
|
------------------ |
------------------ |
|
|
|
119,948,538 |
88,594,402 |
|
| CONTINGENCIES
AND COMMITMENTS |
12 |
|
|
------------------ |
------------------ |
|
|
|
260,723,437 |
213,725,424 |
|
|
|
========== |
========== |
|
| TANGIBLE
FIXED ASSETS |
|
13 |
6,832,040 |
4,090,303 |
|
|
|
|
|
|
|
|
| INVESTMENTS
IN LEASE AND HIRE |
|
|
|
|
| PURCHASE
FINANCES |
|
14 |
102,577,245 |
76,622,351 |
|
|
|
|
|
|
|
|
| LONG
TERM INVESTMENTS |
|
15 |
250,000 |
250,000 |
|
|
| LONG
TERM ADVANCES |
|
16 |
8,366,568 |
-- |
|
|
| LONG
TERM DEPOSITS AND DEFERRED COST |
17 |
1,012,400 |
636,712 |
|
|
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Current
portion of long term investment in lease, |
|
| hire
purchase finance and long term advance |
18 |
105,826,622 |
89,941,348 |
|
| Morabaha
and short term finances |
19 |
10,766,740 |
20,401,060 |
|
| Advances,
deposits, prepayments and other |
|
|
|
| receivables |
|
20 |
6,065,163 |
5,048,111 |
|
| Cash
and bank balances |
|
21 |
19,026,659 |
16,735,539 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
141,685,184 |
132,126,058 |
|
|
------------------ |
------------------ |
|
|
|
260,723,437 |
213,725,424 |
|
