| Crescent Leasing Corporation Limited |
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| Annual
Report 2000 |
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| Mission
Statement |
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| Creslease
is committed to pursuing the improvement in shareholders |
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| value
through development of a dedicated human resource and |
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| efficient
systems base capable of effectively participating in a |
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| competitive
business environment. Creslease would endeavor to |
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| extend
the reach of the credit delivery system to stimulate the |
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| economic
development. |
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| Contents |
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| Company
Information |
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| Notice
of Meeting |
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| Directors'
Report |
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| Auditors'
Report |
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| Financial
Statements of the Company |
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| Pattern
of Holding of Shares |
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| Company
Information |
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| BOARD
OF DIRECTORS |
|
| Mr.
Aftab Ahmed Khan |
Chairman |
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| Mr.
Javed A. Callea |
Chief Executive |
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|
| Mr.
David V. Johns |
|
| Mr.
Istaqbal Mehdi |
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| Mr.
Mahmood Ahmed |
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| Mr.
Nessar Ahmed |
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| Mr.
Rashid Ahmed |
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| Mr.
Saeed Jamal Tariq |
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| CORPORATE
SECRETARY |
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| Mr.
Rashid Sadiq |
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| AUDITORS |
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| Khalid
Majid Hussain Rahman & Co. |
Chartered Accountants |
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|
| LEGAL
ADVISOR |
|
| Cornelius
Lane & Mufti |
|
Advocates &
Solicitors |
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| RATING
AGENCY |
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| The
Pakistan Credit Rating Agency (Private) Limited |
|
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| BANKS
& LENDING INSTITUTIONS |
|
| Commonwealth
Development Corporation |
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| Allied
Bank of Pakistan |
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| Habib Bank Ltd. |
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| Saudi
Pak Industrial & Agricultural Investment Co. (Pvt.) Ltd. |
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| National
Discounting Services Ltd. |
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| Pak-Kuwait
Investment Co. (Pvt). Ltd. |
|
| United
Bank Ltd. |
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| HEAD OFFICE |
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| B-801
& 802, 8th Floor, Lakson Square Bldg. # 3, Sarwar Shaheed Road, Karachi. |
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| Phone:
021-566-1938, 48,58 Fax: 021-566-1988 |
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| Email:
crescent@super.net.pk |
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| cresleas@cyber.net.pk |
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| BRANCH
OFFICE |
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| Suit
No, F-7 (B) 1st Floor, Rahman Business Suites, 32-B-III, Gulberg-III, Lahore, |
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| Phone:
042 5717415-6 Fax: 042 5717417 |
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| REGISTERED
AND SHARE TRANSFER OFFICE |
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| 83
Babar Block, New Garden Town, Lahore |
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| Phone:
042 588-1974 & 75 Fax: 042 588-1976 |
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| Email:
rashid.sadiq@cressoft.com.pk |
|
|
| *For
a copy of this report write to our Head Office/Registered Office |
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| NOTICE
OF ANNUAL GENERAL MEETING |
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| NOTICE
is hereby given that the 13th Annual General Meeting of the shareholders of
Crescent Leasing Corporation |
|
| Limited,
will be held on Monday, the November 13, 2000 at 3.00 p.m. at Registered
Office 83-Babar Block, |
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| New
Garden Town, Lahore to transact the following business: |
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| 1.
To receive, consider and adopt the audited accounts of the company for the
year ended June |
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| 30,
2000 together with Directors' and Auditors' Reports thereon. |
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|
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| 2.
To issue Bonus Shares. The Directors have recommended the issue of Bonus
Shares in the proportion |
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| of
One share for every Six shares held i.e. 16.67% out of premium on issuance of
right shares account. |
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| 3.
To appoint auditors and fix their remuneration. |
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By Order of the Board |
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RASHID SADIQ |
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|
Corporate .Secretary |
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| REGISTERED
OFFICE: |
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| 83-Babar
Block, New Garden Town, Lahore. |
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| Phone
No.: (042) 5881974-75, 5839631 |
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| Fax
No.: (a42) 5881976 |
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| Email:
rashid.sadiq@cressoft.com.pk |
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| Dated:
September 26, 2000 |
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|
| NOTE: |
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|
| 1.
The Members Register will remain closed from November 07, 2000 to November
13, 2000 (both days |
|
| inclusive).Transfer
received in order at the Registered Office by the close of business hours on
November |
|
| 06,
2000 will be treated in time for the entitlement of Bonus Shares. |
|
|
| 2.
A member eligible to attend and vote at this meeting may appoint another
member as proxy to attend |
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| and
vote in the meeting. Proxies in order to be effective must be received by the
company at the |
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| Registered
Office not later than 48 hours before the time of holding the meeting. |
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| 3.
CDC account holders will further have to follow the under mentioned
guidelines as laid down in |
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| circular
No. 1 dated January 26, 2000 of the Securities and Exchange Commission of
Pakistan for |
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| attending
the meeting: |
|
|
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| i)
In case of individuals, the account holder or sub-account holder and/or-the
person whose |
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| securities
are in group account; and their registration details are uploaded as per the
Regu- |
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| lations,
shall authenticate his/her identity by showing his original National Identity
card (NIC) |
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| or
original passport at the time of attending the meeting. The shareholders
registered on CDS |
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| are
also requested to bring their Participants I.D. numbers and account numbers
in CDS. |
|
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| ii)
In case of corporate entity, the Board of Directors resolution/power of
attorney with specimen |
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| signature
of the nominee shall be produced (unless it has been provided earlier) at the
time |
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| of meeting. |
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| DIRECTORS'
REPORT |
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| Your
Directors have pleasure in presenting the Audited Accounts for the period
from July 1, 1999 |
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| to June 30, 2000. |
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| The
financial results of the company for the period under review are summarized
as follows: |
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|
Rupees in million |
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|
|
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| Revenue |
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|
173.943 |
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| Expenditure |
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|
130.421 |
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| Operating
Profit Before Provisions |
|
43.522 |
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| Provisions |
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|
9.739 |
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| Profit
before taxation |
|
33.783 |
|
| Provision
for taxation |
|
3.000 |
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| Profit
after taxation |
|
30.783 |
|
| Un-appropriated
profit brought forward |
|
0.015 |
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| Profit
available for appropriation |
|
30.798 |
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| Appropriations |
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| Transfer
to reserves under NBFI regulations |
|
6.157 |
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| Transfer to reserve for
deferred taxation |
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18.382 |
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| Un-appropriated
profit carried forward |
|
6.259 |
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| Net
profit for the year after charging all expenses, including allowance for
potential lease losses |
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| and
provision for doubtful finance amounted to Rs 30.783 million. |
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| An
amount Rs 18.382 million has been transferred to Reserve for Deferred
Taxation. With the |
|
| transfer
of this amount not only the compliance of policy for deferred taxation
prescribed by |
|
| the
SECP for the leasing companies has been achieved but also full provision for
the deferred |
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| taxation
has been made. |
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| The
performance of your company needs to be reviewed in the light of the economic
and |
|
| policy
factors affecting the business environment in general and the long term
investment climate |
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| in
particular, in the review period. |
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|
| ECONOMIC
SCENARIO |
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| Fiscal
2000 not only witnessed a significant change in the political scene in
October 1999 but |
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| also
a halt in the overall deterioration of the economy. A significant drop in
inflation rate, good |
|
| production
of major crops and a pick-up in textile sector's output provided the
much-needed |
|
| stability
to the economy. The economic managers strove hard to put the economy on a
respectable |
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| growth
path. They successfully implemented a Tax Amnesty Scheme yielding over Rs. 10
billion |
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| in
revenue and after tough negotiations with the traders imposed GST. |
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| The
positive indicators on supply side of the economy however were not reflected
in |
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| investments.
Thus the share of private investment as percent of GDP declined, and credit |
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| utilization
remained low. Efforts aimed at restoring investors confidence must continue.
The money |
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| market
was awash with liquidity during the review period. This in combination with
low investment |
|
| demand
made risk pricing highly competitive. |
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| OPERATING
RESULTS |
|
| Taking
into consideration the uncertain economic environment and increased
competition in |
|
| business
your company focused on retaining its market share in the lease market. New
leases |
|
| executed
during the period amounted to Rs 333 million (1999, Rs 331 million). The net
investment |
|
| in
leases is placed at Rs 768 million (1999, Rs 704 million). Lease income
during the review period |
|
| amounted
to Rs 116 million (1999, Rs 119 million). Income from other business
activities increased |
|
| from
Rs 53 million in 1999 to Rs 58 million in 2000. The average lease size
(excluding consumer |
|
| leasing)
is placed at Rs 1.560 million. The company posted a net profit after taxation
and provisions |
|
| of
Rs 30.783 million (1999, Rs 29.545 million). The post-tax earning per share
is placed at Rs. 1.53. |
|
|
| The
business strategy during the year targetted on market penetration, increased
emphasis on |
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| vehicle
leasing, better client service and expansion of the consumer leasing
activity. The lease |
|
| portfolio
of your company is prudently diversified over the major industrial and
services sectors |
|
| in
Pakistan. The individual exposure in any single sector (Textile) does not
exceed 12.95 percent |
|
| (1999
in Textile at 13 percent). |
|
|
| To
improve the risk profile of the lease portfolio a greater emphasis during the
period was placed |
|
| on
vehicle leasing. 43 percent of the new investment during the year went into
vehicles. Total |
|
| investment
in vehicles thus stood at 31.7 percent of the lease portfolio. Plant and
Machinery, |
|
| however,
remained the major leased asset at 64.3 percent of the portfolio followed by
office |
|
| equipment
at 4 percent. Weak business conditions placed pressures on recovery during
the |
|
| year.
However, the rentals collected during the period placed the recovery at 92%
(1999: 95%). |
|
| Some
cross defaults persist in the industry for which supportive actions are
needed by the government. |
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| The
long-term entity rating of your company is placed in the band of high credit
quality at |
|
| A
minus (A-), For short-term obligations it is placed at A2 indicating a low
expectation of credit risk. |
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| Your
company raised Rs. 110 million in long term credit from premier financial
institutions at competitive |
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| rates.
In addition short-term credits of Rs. 396 million were also negotiated. |
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| FUTURE
OUTLOOK |
|
| The
economic revival would basically depend upon the outcome of measures for
deepening |
|
| and
broadening of the tax base and an overall improvement in governance. A lower
fiscal |
|
| deficit
would enable the government to ensure macro economic stability while higher
revenue |
|
| mobilization
would make more resources available for public sector development programs, |
|
| a
key element for kick starting the economy. On the external side the
uncertainties relating to |
|
| IMF
funding are likely to be removed by the year-end. This would send a positive
signal to both |
|
| local
and foreign investors. However, given the time lag in responding to these
achievements, |
|
| the
demand outlook for investment financing is expected to remain lacklustre for
most part of |
|
| the
year. The competition in regard to pricing business risks would thus continue
unabated and |
|
| extend
to consumer financing as well. Your company intends to meet effectively the
competition |
|
| in
quality credit risks and retain its market share. |
|
|
| With
the objective of balancing the uncertainty in the economic environment with
the interest |
|
| of
shareholders as also to strengthen the equity base the directors have
recommended an issue |
|
| of
bonus shares out of capital reserves created for premium on issue of right
shares @ 16.67 percent |
|
| for
the year ended June 30, 2000. |
|
|
| YEAR
2000 COMPLIANCE |
|
| All
the systems and procedures and software and hardware packages have
successfully crossed |
|
| the
Y2K baseline. |
|
|
| ACKNOWLEDGEMENT |
|
| Consequent
to the election of directors the board has been reconstituted as follows Mr.
Aftab |
|
| A.
Khan, Mr. Ferozuddin A. Cassim, Mr. Istaqbal Mehdi, Mr. Mahmood Ahmed, Mr.
Nessar Ahmed, |
|
| Mr.
Rashid Ahmed and Mr. Saeed Jamal Tariq. The Board appreciates the valuable
contribution |
|
| made
by the outgoing directors during their tenure. |
|
|
| The
Board acknowledges the support of the regulatory authorities, banks and
lending institu- |
|
| tions.
The Board wishes to place on record its 'appreciation of the hard work and
dedication |
|
| shown
by the company personnel. |
|
|
| AUDITORS |
|
| The
auditors, Khalid Majid Husain Rahman, Chartered Accountants retire and being
eligible, |
|
| offer
themselves for re-appointment. |
|
|
| PATTERN
OF SHAREHOLDING |
|
| The
pattern of shareholding as on June 30, 2000, is annexed to this report. |
|
|
|
|
On behalf of the Board |
|
|
|
|
|
| September
26th, 2000 |
|
Javed A. Callea |
|
| Karachi |
|
Chief Executive |
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of Crescent Leasing Corporation
Limited as at June |
|
| 30,
2000 and the related profit and loss account and the statement of changes in
financial position |
|
| (cash
flow statement), 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 and, after due
verification |
|
| thereof,
we report that: |
|
|
| a)
in our opinion, proper books of account 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 period was for the purpose of the
Company's business; and |
|
|
| iii)
the business conducted, investments made and the expenditure incurred during
the period |
|
| 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 and the statement of changes
in financial |
|
| position
(cash flow statement), together with the notes forming part thereof, 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 and the changes in financial position for the year then ended;
and |
|
|
| d)
in our opinion, Zakat deductible at source, under the Zakat and Ushr
Ordinance, 1980, was deducted |
|
| by
the company and deposited in the Central Zakat Fund established under Section
7 of that |
|
| Ordinance. |
|
|
Khalid Majid Husain
Rahman |
|
|
|
Chartered Accountants |
|
| Karachi:
October 09, 2000 |
|
|
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
| Authorised
capital |
|
|
|
| 30,000,000
ordinary shares of Rs. 10 each |
|
|
300,000,000 |
300,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up capital |
|
3 |
172,500,000 |
172,500,000 |
|
| Reserves |
|
4 |
165,974,408 |
135,191,390 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
338,474,408 |
307,691,390 |
|
| DEFERRED
INCOME |
|
5 |
317,313 |
475,977 |
|
| LONG-TERM
FINANCES |
|
6 |
122,673,104 |
198,756,310 |
|
| LONG-TERM
CERTIFICATES OF INVESTMENT |
|
7 |
3,175,000 |
21,100,000 |
|
| LIABILITIES
AGAINST ASSETS SUBJECT |
|
|
|
| TO
FINANCE LEASES |
|
8 |
2,534,241 |
3,974,707 |
|
| LONG-TERM
DEPOSITS |
|
9 |
124,847,271 |
92,033,209 |
|
|
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Current
maturity of long-term liabilities |
|
10 |
161,717,990 |
103,122,410 |
|
| Current
maturity of assets subject to finance leases |
|
2,030,474 |
1,662,743 |
|
| Short-term
certificates of investment |
|
7 |
51,125,000 |
80,000,000 |
|
| Short-term
finances |
|
11 |
105,000,000 |
80,000,000 |
|
| Running
finances under mark-up arrangement |
|
12 |
37,228,966 |
75,972,271 |
|
| Creditors,
accrued and other liabilities |
|
13 |
26,111,837 |
26,239,049 |
|
| Proposed
dividend |
|
|
-- |
17,250,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
383,214,267 |
384,246,473 |
|
| COMMITMENTS |
|
14 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
975,235,604 |
1,008,278,066 |
|
|
|
|
========== |
========== |
|
|
| OPERATING
FIXED ASSETS |
|
15 |
14,647,906 |
17,059,171 |
|
|
|
|
|
|
| NET
INVESTMENT IN LEASES |
|
16 |
|
| Minimum
lease rental receivables |
|
|
7,560,850,721 |
739,150,538 |
|
| Residual value |
|
163,958,775 |
129,577,427 |
|
|
|
------------------ |
------------------ |
|
| Lease
contract receivables |
|
|
920,043,847 |
868,727,965 |
|
| Less:
Unearned finance income |
|
|
152,053,412 |
164,853,846 |
|
|
|
|
------------------ |
------------------ |
|
| Net
investment in leases |
|
767,990,435 |
703,874,119 |
|
|
|
|
| Less:
Current maturity |
|
|
313,014,165 |
270,162,303 |
|
| Allowance
for potential lease losses - General |
|
|
17,580,742 |
12,849,656 |
|
|
- Specific |
|
|
7,385,030 |
4,592,088 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
337,979,937 |
287,604,047 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
430,010,498 |
416,270,072 |
|
|
|
|
|
|
| LONG-TERM
INVESTMENTS |
|
17 |
32,268,136 |
31,764,507 |
|
| LONG-TERM
DEPOSITS, PREPAYMENTS |
|
|
|
| AND
DEFERRED COSTS |
|
18 |
7,392,319 |
13,053,360 |
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Current
maturity of net investment in leases |
|
|
313,014,165 |
270,162,303 |
|
| Short-term
finances |
|
19 |
5,961,364 |
4,623,036 |
|
| Advances,
deposits, prepayments and |
|
|
|
| other
receivables |
|
20 |
47,734,980 |
42,337,421 |
|
| Short-term
investments |
|
21 |
110,596,675 |
114,868,191 |
|
| Cash
and bank balances |
|
22 |
13,609,561 |
98,140,005 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
490,916,745 |
530,130,956 |
|
|
|
|
------------------ |
------------------ |
|
|
975,235,604 |
1,008,278,066 |
|
|
|
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these financial statements. |
|
|
|
JAVED A. CALLEA |
|
AFTAB AHMED KHAN |
|
|
Chief Executive |
|
Chairman |
|
|
|
| Profit
and Loss Account |
|
| For
the Year Ended June 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| Income
from lease operations |
|
|
115,669,155 |
118,758,255 |
|
| Income
on investments |
|
23 |
54,731,894 |
44,362,447 |
|
| Other income |
|
24 |
3,542,156 |
8,983,451 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
173,943,205 |
172,104,153 |
|
|
|
|
| Administrative
and operating expenses |
|
25 |
21,233,720 |
16,223,124 |
|
| Financial
charges |
|
26 |
109,132,068 |
115,303,712 |
|
| Amortisation
of deferred cost |
|
|
55,125 |
286,352 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
130,420,913 |
131,813,188 |
|
|
|
|
------------------ |
------------------ |
|
| Operating
profit before provisions |
|
43,522,292 |
40,290,965 |
|
|
|
------------------ |
------------------ |
|
| Allowance
for potential lease losses-General |
|
4,731,086 |
6,574,264 |
|
|
|
- Specific |
|
2,792,942 |
2,445,971 |
|
| Provision
for doubtful finance |
|
2,215,246 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
9,739,274 |
9,020,235 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
before taxation |
|
33,783,018 |
31,270,730 |
|
| Taxation |
|
28 |
3,000,000 |
1,726,192 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
after taxation |
|
|
30,783,018 |
29,544,538 |
|
|
|
|
| Transfer
from general reserve |
|
|
-- |
8,161,438 |
|
| Unappropriated
profit brought forward |
|
15,310 |
117,538 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
available for appropriation |
|
|
30,798,328 |
37,823,514 |
|
|
|
|
| Appropriations: |
|
|
|
| Transfer to: |
|
|
|
|
|
| -
reserve under NBFI rules |
|
|
(6,156,604) |
(5,908,908) |
|
| -
reserve for deferred taxation |
|
|
(18,382,455) |
(14,649,296) |
|
| -
proposed dividend @ Nil (1999: 10%) |
|
|
-- |
(17,250,000) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(24,539,059) |
(37,808, 204) |
|
|
|
|
------------------ |
------------------ |
|
| Unappropriated
profit carried forward |
|
|
6,259,269 |
15,310 |
|
|
|
|
========== |
========== |
|
| Earnings
per share - Basic |
|
29 |
1.53 |
1.47 |
|
|
- Diluted |
|
|
N/A |
N/A |
|
|
|
| The
annexed notes form an integral part of these financial statements. |
|
|
|
JAVED A. CALLEA |
|
AFTAB AHMED KHAN |
|
|
Chief Executive |
|
Chairman |
|
|
|
| Statement
of Changes in Financial Position (Cash Flow Statement) |
|
| For
the Year Ended June 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| Cash
flows from operating activities |
|
|
| Profit
before taxation |
|
|
|
33,783,018 |
31,270,730 |
|
|
|
|
| Adjustments
for: |
|
|
|
| Amortization
of deferred income |
|
(158,664) |
-- |
|
| Amortization
of deferred costs |
|
55,125 |
286,352 |
|
| Depreciation |
|
|
4,048,891 |
1,511,452 |
|
| Financial
charges |
|
109,132,068 |
114,921,094 |
|
| Allowance
for potential lease losses |
|
7,524,028 |
9,020,235 |
|
| Provision
for doubtful finance |
|
2,215,246 |
-- |
|
| Gain
on sale of operating fixed assets |
|
-- |
(78,529) |
|
|
|
------------------ |
------------------ |
|
| Operating
profit before working capital changes |
|
156,599,712 |
156,931,334 |
|
| Increase/(decrease)
in creditors, accrued and other liabilities |
|
3,547,865 |
(1,914,019) |
|
| Decrease
in advances, deposits, prepayments and |
|
|
|
| other
receivables |
|
3,515,687 |
(8,703,563) |
|
|
|
|
------------------ |
------------------ |
|
| Cash
generated from operations |
|
163,663,264 |
146,313,752 |
|
|
|
|
| Income
taxes paid |
|
|
(11,913,246) |
(12,238,559) |
|
| Financial
charges paid |
|
|
(107,331,029) |
(108,806,552) |
|
|
|
------------------ |
------------------ |
|
| Net
cash flow from operating activities |
|
44,418,989 |
25,268,641 |
|
|
|
|
|
| Cash
flows from Investing activities |
|
|
| Increase
in net investment in leases |
|
(64,116,316) |
(69,947,239) |
|
| Purchase
of operating fixed assets |
|
(985,626) |
(685,870) |
|
| Proceeds
from sale of operating fixed assets |
|
-- |
2,496,584 |
|
| Purchase
of long-term investments |
|
(503,629) |
(27,639,507) |
|
| Decrease/(increase)
in long-term deposits, |
|
|
|
| prepayments
and deferred costs |
|
129,800 |
(486,888) |
|
| Increase
in short-term finances |
|
(3,553,574) |
(4,623,036) |
|
| Net
cash used in investing activities |
|
------------------ |
------------------ |
|
|
|
|
(69,029,345) |
(100,885,956) |
|
| Cash
flows from financing activities |
|
|
| Decrease
in long-term finances |
|
(41,353,358) |
(33,119, 775) |
|
| Increase
in long-term deposits |
|
36,679,794 |
37,910,709 |
|
| (Decrease)/increase
in certificates of investment |
|
(26,800,000) |
51,100,000 |
|
| (Decrease)/increase
in running finances under mark-up arrangement |
|
(38,743,305) |
47,434,638 |
|
| Increase
in short-term finances |
|
25,000,000 |
45,000,000 |
|
| Decrease
in liabilities against assets subject to finance leases |
|
(1,724,735) |
(641,996) |
|
| Payment
of dividend |
|
(17,250,000) |
-- |
|
|
|
------------------ |
------------------ |
|
| Net
cash used in / flow from financing activities |
|
(64,191,604) |
147,683,576 |
|
|
|
|
------------------ |
------------------ |
|
| Net
(decrease)/increase in cash and cash equivalents |
|
(88,801,960) |
72,066,261 |
|
| Cash
and cash equivalents at beginning of the year |
|
213,008,196 |
140,941,935 |
|
|
|
|
------------------ |
------------------ |
|
| Cash
and cash equivalents at the end of the year (Note A) |
|
124,206,236 |
213,008,196 |
|
|
|
========== |
========== |
|
|
|
|
|
| Note
A. Cash and cash equivalents at the end of the year |
|
|
|
|
|
|
| Cash
and bank balances |
|
13,609,561 |
98,140,005 |
|
| Short-term
investments |
|
110,596,675 |
114,868,191 |
|
|
|
------------------ |
------------------ |
|
|
|
124,206,236 |
213,008,196 |
|
|
|
|
========== |
========== |
|
|
|
|
|
JAVED A. CALLEA |
|
AFTAB AHMED KHAN |
|
|
Chief Executive |
|
Chairman |
|
|
|
| NOTES
TO THE FINANCIAL STATEMENTS |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
| 1.
LEGAL STATUS AND NATURE OF BUSINESS |
|
| The
company was incorporated in Pakistan as a public limited company on April 7,
1987. |
|
| The
company commenced commercial operations in August 1989, and is listed on all
Stock |
|
| Exchanges
in Pakistan. Its prime business is leasing, and it is classified as a
Non-Banking |
|
| Financial
Institution (NBFI) by the State Bank of Pakistan and is regulated by the
Securities |
|
| and
Exchange Commission of Pakistan. |
|
|
|
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
|
| 2.1
Basic of preparation |
|
| These
accounts have been prepared in accordance with International Accounting |
|
| Standards
(IAS) as applicable in Pakistan. |
|
|
| 2.2
Accounting convention |
|
| These
financial statements have been prepared under the historical cost convention. |
|
|
| 2.3
Operating fixed assets and depreciation |
|
|
|
| (a)
Owned assets |
|
| Fixed
assets are stated at cost less depreciation to date. Depreciation is charged |
|
| to
income by applying reducing balance method. Full year's depreciation is |
|
| charged
on acquisitions during the year while no depreciation is charged on |
|
| fixed
assets disposed off during the year. |
|
|
| However,
the assets given to employees as per the company policy are to be |
|
| charged
to income applying the straight-line method whereby the cost of an |
|
| asset
is written off over four years. Depreciation on such additions is charged |
|
| from
the month in which the asset is put to use and on disposals in the month |
|
| in
which disposal is made. |
|
|
| Normal
repairs and maintenance are charged to income as and when incurred. |
|
| Major
renewals and betterment are capitalized. |
|
|
| Gains
and losses on disposal of fixed assets, if any, are included in income
currently. |
|
| However,
gains on sale and leaseback transaction that results in a finance lease, |
|
| is
deferred and amortized over the lease term. |
|
|
| (b)
Assets subject to finance leases |
|
| These
are stated at the lower of present value of minimum lease payments and |
|
| fair
value of assets acquired on lease. Assets so acquired are depreciated over |
|
| the
shorter of the lease term or its useful life. Financial charges are allocated |
|
| to
accounting periods in a manner so as to produce a constant periodic rate |
|
| of
charge on the outstanding liability. |
|
|
| 2.4
Deferred costs and amortization |
|
| Deferred
costs are written off during a period not exceeding five years commencing |
|
| from
the year such costs are incurred. |
|
|
|
| 2.5 Investments |
|
|
|
| (a)
Long-term investments |
|
| Long-term
investments are stated at cost and carrying amount is reduced to |
|
| recognize
any decline other than temporary in the value of investments. |
|
|
| (b)
Short-term investments |
|
|
| Investments
are valued at the lower of cost and market value determined on |
|
| an
aggregate portfolio basis. |
|
|
| 2.6 Taxation |
|
|
| (a) Current |
|
|
| Provision
is made on taxable income at the prevailing rates of taxation after |
|
| taking
into account tax credits available, if any. |
|
|
| (b) Deferred |
|
| The
company accounts for deferred taxation on all major timing differences using |
|
| the
liability method. |
|
|
| 2.7
Foreign exchange transactions |
|
| Transactions
in foreign currencies are accounted for in rupees at the rate of exchange |
|
| ruling
on the date of transaction. Assets and liabilities in foreign currencies are
translated |
|
| into
rupees at the rate of exchange at the balance sheet date. Net exchange
differences |
|
| arising
due to hedging mechanism are accounted for as deferred revenue/costs as |
|
| the
case may be and are credited/amortized to income over the term of the
underlying |
|
| transactions
or five years whichever is shorter. |
|
|
| 2.8 Off-setting |
|
| A
financial asset and a financial liability is off-set and the net amount
reported in |
|
| the
balance sheet if the company has a legal enforceable right to set-off the
transactions |
|
| and
also intends either to settle on a net basis or to realize the asset and
settle the |
|
| liability
simultaneously. |
|
|
|
|
|
|
|
|
| 2.9
Employees' retirement benefits |
|
|
| The
company operates a contributory provident fund for all its confirmed
employees |
|
| and
contributions are made by the company and the employees in accordance with |
|
| the fund rules. |
|
|
|
|
|
|
| 2.10
Revenue recognition |
|
|
|
| The
company follows the financing method in accounting for recognition of lease |
|
| income.
At the time of the execution of a lease, a portion of unearned lease income, |
|
| which
approximates the initial direct costs incurred in writing the leases, is
taken to |
|
| "Income
from lease operations". The remainder of the unearned lease income is |
|
| then
allocated over the lease term on a pattern reflecting a constant periodic
return |
|
| on
the company's net investment outstanding in respect of the lease. |
|
|
|
|
| Front
end, commitment and other fees, if any, are taken to income when realized. |
|
|
|
|
| 2.11
Allowance for potential lease losses |
|
|
| The
allowance for potential lease losses is maintained at a level, which in the
judgment |
|
| of
the management, is sufficient to provide for any potential lease losses. The
recognition |
|
| of
annual charge and income of such amount would be taken through the profit |
|
| and
loss account. The allowance would be increased by the provision charged to |
|
| income
and would be decreased by charge off, net of recoveries. |
|
|
|
|
| 3.
ISSUED, SUBSCRIBED AND PAID-UP CAPITAL |
|
|
|
|
|
|
|
|
2000 |
1999 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| 15,000,000
(1999: 15,000,000) Ordinary shares of |
|
|
| Rs.
10 each fully paid in cash |
|
150,000,000 |
150,000,000 |
|
|
|
|
| 2,250,000
(1999: 2,250,000) Ordinary shares of |
|
|
| Rs.
10 each issued as fully paid bonus shares |
|
22,500,000 |
22,500,000 |
|
|
|
------------------ |
------------------ |
|
|
|
172,500,000 |
172,500,000 |
|
|
|
|
========== |
========== |
|
|
| 4.
STATEMENT OF CHANGES IN EQUITY |
|
|
|
|
RESERVE |
|
|
|
|
|
|
|
Capital |
|
Revenue |
|
|
|
|
|
|
Issued, |
Premium on |
Reserve for |
Reserves |
Reserve |
General |
Reserve |
Un-appropriated |
Total |
Grand |
|
|
|
Subscribed and |
issuance of |
deferred |
under NBFI's |
for issue of |
reserve |
for doubtful |
profit |
|
Total |
|
|
|
Paid-up |
right shares |
taxation |
rules* |
proposed |
|
debts |
|
|
|
|
Capital |
|
bonus shares |
|
|
|
|
|
|
|
|
|
|
Rupees |
|
|
|
|
|
|
|
| Balance
as at June 30,1998 |
|
150,000,000 |
33,750,000 |
-- |
26,831,314 |
22,500,000 |
51,961,438 |
10,236,562 |
117,538 |
143,396,852 |
295,396,852 |
|
| Net
profit for the year |
|
-- |
-- |
-- |
-- |
-- |
-- |
-- |
29,544,538 |
29,544,538 |
29,544,538 |
|
| Transfer
from/(to) profit and loss account |
-- |
-- |
14,649,296 |
5,908,908 |
-- |
(8,161,438) |
-- |
(12,396,766) |
-- |
-- |
|
| Issue
of bonus shares |
|
22,500,000 |
-- |
-- |
-- |
(22,500,000) |
-- |
-- |
-- |
(22,500,000) |
-- |
|
| Proposed
dividend |
|
-- |
-- |
-- |
-- |
-- |
-- |
-- |
(17,250,000) |
(17,250,000) |
(17,250,000) |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as at June 30, 1999 |
|
172,500,000 |
33,750,000 |
14,649,296 |
32,740,222 |
-- |
43,800,000 |
10,236,562 |
15,310 |
135,191,390 |
307,691,390 |
|
|
|
|
|
|
|
|
| Net
profit for the year |
|
-- |
-- |
-- |
-- |
-- |
-- |
-- |
30,783,018 |
30,783,018 |
30,783,018 |
|
| Transfer
from/(to) |
|
|
| Profit
and loss account |
|
-- |
-- |
18,382,455 |
6,156,604 |
-- |
-- |
-- |
(24,539,059) |
-- |
-- |
|
|
|
|
|
|
| Premium
on issuance |
|
|
|
| of
right shares to be |
|
|
| utilized
for issue of |
|
|
| 16.67%
proposed |
|
|
| bonus shares |
|
-- |
(28,755,750) |
-- |
-- |
28,755,750 |
-- |
-- |
-- |
-- |
-- |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as at June 30, 2000 |
|
172,500,000 |
4,994,250 |
33,031,751 |
38,896,826 |
28,735,750 |
43,800,D00 |
10,235,562 |
6,259,269 |
165,974,408 |
338,474,408 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| *
This reserve is created by transferring 20% of after tax profit for the year,
which is required under Rule-3 of the |
|
| Prudential
Regulations for Non-Banking Financial Institutions. |
|
|
|
|
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
| 5.
DEFERRED INCOME |
|
|
|
| Opening
balance |
|
475,977 |
475,977 |
|
| Less:
Amortization to date |
|
158,664 |
-- |
|
|
|
------------------ |
------------------ |
|
| Closing balance |
|
317,313 |
475,977 |
|
|
|
|
========== |
========== |
|
|
|
|
| 5.1
This represents gain on sale and leaseback transaction that resulted in a
finance |
|
| lease. |
|
|
|
|
| 6.
LONG -TERM FINANCES - Secured |
|
| Foreign
currency |
|
|
|
| From
Commonwealth Development |
|
|
| Corporation
UK- an associated undertaking |
|
|
| (Note 6.1) |
|
|
166,041,640 |
239,166,667 |
|
|
|
|
| Local currency |
|
|
| From
commercial banks (Note 6.2 & 6.3) |
|
53,255,028 |
23,632,545 |
|
| From
an investment company |
|
|
|
|
|
|
| -
Finance I (Note 6.4) |
|
12,167,949 |
20,018,763 |
|
| -
Finance II (Note 6.5) |
|
10,000,000 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
22,167,949 |
20,018,763 |
|
|
|
------------------ |
------------------ |
|
|
|
241,464,617 |
282,817,975 |
|
| Less:
Current maturity (Note 10) |
|
118,791,513 |
84,061,665 |
|
|
|
------------------ |
------------------ |
|
|
|
122,673,104 |
198,756,310 |
|
|
|
|
|
========== |
========== |
|
|
| 6.1
This represents Pounds Sterling 5 million loan obtained from Commonwealth
Development |
|
| Corporation,
UK, an associated undertaking. The loan is repayable in twelve equal |
|
| semi-annual
installments commenced from May 1997 and is secured by floating |
|
| pari-passu
charge, through hypothecation, over certain present assets and joint floating |
|
| charge
over certain present and all future assets of the company. The rate of
interest |
|
| is
11.5% per annum. |
|
|
| 6.2
This includes Rs. 23.63 million loan obtained under mark-up arrangement and
carries |
|
| mark-up
at the rate of Rs. 0.42 per Rs. 1,000 per day, payable in quarterly
installments. |
|
| The
principal is repayable in six equal semi annual installments commenced from |
|
| October
1999. The loan is secured by lien of three years registered special US dollar |
|
| bonds
included in note 17. |
|
|
| 6.3
This includes Rs. 50 million loan obtained under mark-up arrangement and
carries |
|
| mark-up
at the rate of Rs 0.45 per Rs. 1000 per day. The principal is repayable in
eight |
|
| equal
quarterly installments along with mark up thereon, commenced from February |
|
| 2000.
The loan is secured by first joint pari-passu charge over all present and
future |
|
| assets
of the company. |
|
|
| 6.4
This represents Rs. 25 million loan obtained under mark-up arrangement. The
loan |
|
| is
repayable in twelve equal quarterly installments commenced from October 1998. |
|
| The
loan carries mark-up at the rate of Rs. 0.53 per Rs. 1,000 per day and is
secured |
|
| by
joint pari-passu charge over all present and future assets of the company. |
|
|
| 6.5
This represents Rs. 20 million loan obtained under mark-up arrangement. The
principal |
|
| is
repayable in six equal quarterly installments along with mark up thereon,
commenced |
|
| from
November 1999. The loan carries mark-up at the rate of Rs. 0.49 per Rs. 1,000 |
|
| per
day and is secured by first joint pari-passu charge over all present and
future |
|
| assets
of the company. |
|
|
|
|
|
|
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
| 7.
CERTIFICATES OF INVESTMENT |
|
|
| Certificates
of investment issued: |
|
|
|
| - for one year and more |
|
23,175,000 |
21,100,000 |
|
| Less:
Current maturity (Note 10) |
|
20,000,000 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
3,175,000 |
21,100,000 |
|
| -
for less than one year |
|
51,125,000 |
80,000,000 |
|
|
|
|
|
|
| The
company has a scheme of registered Certificates of Investment (COIs) for
resource |
|
| mobilization
as per permission from the Securities and Exchange Commission of Pakistan. |
|
| The
term of these COIs ranges from three months to five years and expected
return, is |
|
| paid
on a profit and loss sharing basis. |
|
|
|
|
|
| 8.
LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASES |
|
| Minimum
lease payments (Note 8.1) |
|
5,537,235 |
7,297,496 |
|
| Less:
Finance charges not yet due |
|
972,520 |
1,660,046 |
|
|
|
------------------ |
------------------ |
|
|
|
4,564,715 |
5,637,450 |
|
| Less:
Current maturity |
|
2,030,474 |
1,662,743 |
|
|
|
------------------ |
------------------ |
|
|
|
2,534,241 |
3,974,707 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| 8.1
The company has entered into lease agreements with leasing companies for
financing |
|
| to
acquire motor vehicles, furniture and fixture and office equipment. Payments
under |
|
| these
agreements include finance charges ranging from 17.25% to 20.07 % per annum, |
|
| which
are used as discounting factors. The lessee can exercise the purchase option |
|
| by
adjusting the security deposit at the expiry of the lease period. The future
payments |
|
| due
are as follows: |
|
|
|
|
|
|
|
|
|
2000 |
1999 |
|
| Year ending |
|
|
Rupees |
Rupees |
|
|
|
|
| Not
later than one year |
|
-- |
2,537,976 |
|
| Later
than one year and not later than five years |
|
5,537,235 |
4,759,520 |
|
|
|
------------------ |
------------------ |
|
|
5,537,235 |
7,297,496 |
|
|
|
========== |
========== |
|
|
| 9.
LONG-TERM DEPOSITS |
|
|
|
| Security
deposits on leases (Note 9.1) |
|
147,773,748 |
111,093,954 |
|
| Less:
Current maturity (Note 10) |
|
|
22,926,477 |
19,060,745 |
|
|
|
------------------ |
------------------ |
|
|
|
|
124,847,271 |
92,033,209 |
|
|
|
|
========== |
========== |
|
|
|
|
| 9.1
These represent interest free security deposits received under lease
contracts and are |
|
| repayable/adjustable
at the expiry/termination of the respective leases. |
|
|
|
|
| 10.
CURRENT MATURITY OF LONG-TERM LIABILITIES |
|
| Long-term
finances (Note 6) |
|
118,791,513 |
84,061,665 |
|
| Certificates
of investment issued for one year |
|
|
|
| and
more (Note 7) |
|
20,000,000 |
-- |
|
| Long-term
deposits (Note 9) |
|
22,926,477 |
19,060,745 |
|
|
|
------------------ |
------------------ |
|
|
|
161,717,990 |
103,122,410 |
|
|
|
|
========== |
========== |
|
|
|
|
| 11.
SHORT-TERM FINANCES |
|
|
|
| Secured |
|
|
|
|
| Pro-note
discounting facility from a |
|
|
| financial
institution |
|
-- |
20,000,000 |
|
|
|
|
|
| Unsecured |
|
|
|
| From
commercial banks (Note 11.1) |
|
80,000,000 |
-- |
|
| From
investment banks |
|
-- |
35,000,000 |
|
| Others
(Note 11.2) |
|
25,000,000 |
25,000,000 |
|
|
|
------------------ |
------------------ |
|
|
|
|
105,000,000 |
60,000,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
105,000,000 |
80,000,000 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
|
| 11.1
.This represents finance facilities carrying mark-up at the rate ranging from
Rs.0.34 to |
|
| Rs.
0.42 per Rs. 1,000 per day. |
|
|
| 11.2
This represents a finance facility obtained from a leasing company carrying |
|
| mark-up
at the rate of Rs.0.43 per Rs. 1,000 per day. |
|
|
| 12.
RUNNING FINANCES UNDER MARK-UP ARRANGEMENT - Secured |
|
| Running
finance facilities available to the company aggregating to Rs. 80 million
(1999: |
|
| Rs.
114.40 million) on yearly renewal basis at mark-up ranging between Rs. 0.44
and |
|
| Rs.
0.46 (1999: Rs. 0.49 and 0.50) per Rs. 1,000 per day. These finances are
secured ,by |
|
| way
of joint pari-passu charge on all present and future assets of the company. |
|
|
|
|
| 13.
CREDITORS, ACCRUED AND OTHER LIABILITIES |
|
| Advance
lease rentals |
|
4,520,839 |
2,583,729 |
|
| Accrued
liabilities |
|
2,610,647 |
1,990,069 |
|
| Mark-up
payable on secured finances |
|
11,791,846 |
15,961,724 |
|
| Mark-up
payable on unsecured finances |
|
4,263,022 |
3,768,221 |
|
| Unclaimed
dividend |
|
75,026 |
64,205 |
|
| With-holding
tax payable |
|
188,068 |
-- |
|
| Other liabilities |
|
2,662,389 |
1,871,101 |
|
|
|
------------------ |
------------------ |
|
|
|
26,111,837 |
26,239,049 |
|
|
|
|
========== |
========== |
|
|
| 14.
COMMITMENTS |
|
|
| 14.1
Lease proposals approved Rs. 60 million (1999: Rs. 12 million). |
|
|
| 14.2
Sale and repurchase agreements Rs. 90 million (1999: Rs. 28 million) of
Bonds, TFCs |
|
| and
Government Securities. |
|
|
| 14.3
Underwriting commitments of Rs. 8.27 million (1999: Rs. Nil) |
|
|
| 15.
OPERATING FIXED ASSETS |
|
|
|
|
COST |
|
DEPRECIATION |
|
|
|
|
Written |
Depreciation |
|
|
As on |
Additions/ |
As at |
For the |
As at |
down |
Rate |
|
|
July 1, |
(deletions) |
June 30, |
year |
June 30, |
value as at |
% |
|
|
1999 |
|
2000 |
|
2000 |
June 30, 2000 |
per annum |
|
|
|
| TANGIBLE
FIXED ASSETS |
|
| Owned |
|
| Office premises |
|
12,021,361 |
121,808 |
12,143,169 |
488,229 |
2,866,814 |
9,276,355 |
5 |
|
| Furniture
and fixtures |
953,893 |
116,280 |
1,070,173 |
280,270 |
747,719 |
322,454 |
15.25 & 33.33 |
|
| Motor vehicles |
|
2,223,125 |
46,632 |
2,269,757 |
258,719 |
1,875,468 |
394,289 |
20 & 25 |
|
| Office
equipment |
1,795,680 |
700,906 |
2,496,586 |
949,713 |
1,741,905 |
754,681 |
33.33 & 100 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
16,994,059 |
985,626 |
17,979,685 |
1,976,931 |
7,231,906 |
10,747,779 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| Leased |
|
| Furniture
and fixtures |
373,387 |
-- |
373,387 |
126,837 |
126,537 |
246,850 |
33.33 |
|
| Motor vehicles |
|
3,091,000 |
652,000 |
3,743,000 |
839,044 |
1,502,626 |
2,240,374 |
25 & 33.33 |
|
| Office
equipment |
2,842,608 |
-- |
2,842,608 |
1,106,379 |
1,429,705 |
1,412,903 |
33.33 & 50 |
|
|
|
6,306,995 |
652,000 |
6,958,995 |
2,071,960 |
3,058,868 |
3,900,127 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| 2000 |
|
23,301,054 |
1,637,626 |
24,938,680 |
4,048,891 |
10,290,774 |
14,647,906 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| 1999 |
|
21,422,278 |
5,847,865 |
23,301,054 |
1,511,452 |
6,241,883 |
17,059,171 |
|
|
|
(3,969,089) |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| 16.
NET INVESTMENT IN LEASES |
|
| This
includes Rs. Nil (1999: Rs. Nil ) as lease rentals receivable from Crescent
Textile Mills |
|
| Ltd.,
an associated undertaking. The maximum amount due from associated undertaking |
|
| at
the end of any month during the year was Rs. 226,610 (1999: Rs. Nil ). |
|
|
| 17.
LONG-TERM INVESTMENTS |
|
| In
associated undertakings (Note 17.1) |
|
|
4,125,000 |
4,125,000 |
|
| In
special US dollar bonds (Note 17.2) |
|
|
28,143,136 |
27,639,507 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
32,268,136 |
31,764,507 |
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
|
| 17.1
In associated undertakings |
|
|
|
|
|
|
|
| 2000 |
1999 |
Listed |
|
|
|
| No. of ordinary |
|
|
|
|
| shares of Rs. 10 each |
|
|
|
|
|
|
|
|
Trust Investment Bank
Ltd. |
|
|
|
(Holding 1 percent (1999: |
|
|
|
1 percent) of the paid-up |
|
|
| 100,000 |
100,000 |
capital of the bank) |
|
1,000,000 |
1,000,000 |
|
|
|
|
|
Unlisted |
|
|
|
|
|
|
| 312,500 |
312,500 |
International Housing
Finance Ltd. |
|
|
(Holding 2.5 percent
(1999:2.5 |
|
|
|
percent) of the paid-up
capital |
|
|
|
of the company) |
|
3,125,000 |
3,125,000 |
|
|
|
------------------ |
------------------ |
|
|
|
4,125,000 |
4,125,000 |
|
|
|
|
========== |
========== |
|
|
| 17.1.1
Market value as at June 30, 2000 for investment in listed associated
undertaking |
|
| was
Rs. 1,100,000 (1999: Rs. 500,000). |
|
|
| 17.1.2
The above investments are carried at cost. Had the investments been accounted |
|
| for
using the equity method, the value of investment on the basis of latest
available |
|
| audited
accounts for the year ended June 30, 1999 of the investees and their effects |
|
| on
the profit and loss account would have been as follows: |
|
|
|
|
2000 |
1999 |
|
|
|
Value of |
Rupees |
|
|
|
investments |
Effect on profit |
|
|
|
under equity |
|
|
|
|
method |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Trust
Investment Bank Ltd. |
|
|
1,346,559 |
346,559 |
|
| International
Housing Finance Ltd. |
|
|
3,190,395 |
65,395 |
|
|
|
|
------------------ |
------------------ |
|
|
|
4,536,954 |
411,954 |
|
|
|
|
========== |
========== |
|
|
|
|
| 17.2
It represents investment amounting to US $538100 in the special US dollar
bonds issued |
|
| by
the Government of Pakistan. These bonds are redeemable on April 01, 2002 and |
|
| carry
interest at the rate of six months London Interbank offered. rate (LIBOR)
plus |
|
| two percent. |
|
|
|
|
|
|
|
|
2000 |
1999 |
|
| 18.
LONG-TERM DEPOSITS, PREPAYMENTS |
|
Rupees |
Rupees |
|
| AND
DEFERRED COSTS |
|
|
| Long-term
deposits |
|
906,505 |
811,305 |
|
| Prepayments |
|
233,169 |
458,169 |
|
| Deferred
costs (Note 18.1) |
|
6,252,645 |
11,783,886 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
7,392,319 |
13,053,360 |
|
|
|
|
========== |
========== |
|
|
|
|
| 18.1
Deferred costs |
|
|
|
|
|
|
As on July |
Addition/ |
As at June |
Amortization |
|
Unamortized |
|
|
01, 1999 |
(deletion/ |
30, 2000 |
For the year |
As at June |
balance |
|
|
|
(transfer) |
|
as at |
|
|
|
June 30, 2000 |
|
|
|
|
|
|
|
| Fund
utilization (Note 18.2) |
27,380,582 |
-- |
27,380,582 |
5,476,116 |
21,127,935 |
6,252,645 |
|
| Others (18.3) |
|
1,752,393 |
(304,3180 |
1,448,078 |
55,125 |
1,448,078 |
-- |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| 2000 |
|
29,132,975 |
(304,315) |
28,828,660 |
5,531,241 |
22,576,013 |
6,252,645 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| 1999 |
|
31,530,944 |
695,830 |
29,132,973 |
6,066,783 |
17,349,087 |
11,783,886 |
|
|
|
|
(3,093,801) |
|
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
|
|
| 18.2
Fund utilization represents expenses incidental to foreign currency finances,
which |
|
| were
adjusted against possible recoveries or charged off as part of borrowing
cost. |
|
|
| 18.3
The balance as on June 30, includes. |
|
| Right
issue expenses |
|
-- |
55,125 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
-- |
55,125 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 19.
SHORT TERM FINANCES |
|
|
|
| Secured |
|
|
|
|
|
|
|
|
|
| Considered
Good |
|
|
|
| Finance
against COIs (note 19.1) |
|
1,012,787 |
-- |
|
| Pro-note
discounting facility (note 19.2) |
|
2,733,332 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
3,746,119 |
-- |
|
|
|
|
| Considered
Doubtful |
|
|
|
|
|
| Short
term loan (note 19.3) |
|
44,304,911 |
4,623,036 |
|
| Provision
for doubtful finance |
|
(2,215,246) |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
2,215,245 |
4,623,036 |
|
|
|
------------------ |
------------------ |
|
|
|
5,961,364 |
4,623,036 |
|
|
|
========== |
========== |
|
|
| 19.1
This represents short-term loan facilities given to individuals secured by
way of lien |
|
| on
COIs and carries mark-up at the rate of Rs. 0.44 and Rs. 0.51 per Rs. 1,000
per |
|
| day
respectively. |
|
|
| 19.2
This represents short-term facilities given to firms against mortgage on
properties and |
|
| carries
a mark-up at the rate of Rs. 0.63 and Rs. 0.66 per Rs. 1,000 per day
respectively. |
|
|
| 19.3
This represents a short-term loan facility given to a company against first
charge by |
|
| way
of hypothecation of stocks and carries mark-up at the rate of Rs. 0.61 per
Rs. |
|
| 1,000 per day. |
|
|
| 20.
ADVANCES, DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES |
|
| Advances,
Considered good |
|
| -
to staff (Note 20.1) |
|
192,725 |
245,156 |
|
| -
against expenses |
|
269,273 |
63,932 |
|
| - against leases |
|
6,792,501 |
11,040,653 |
|
| - others |
|
3,250 |
3,250 |
|
| Deposits |
|
500,000 |
-- |
|
| Taxation-net
of provision |
|
20,958,863 |
12,045,617 |
|
| Prepayments |
|
652,325 |
717,531 |
|
| Mark-up
due on certificates/securities |
|
16,623,465 |
14,253,811 |
|
| Central
Excise Duty receivables |
|
887,011 |
1,837,789 |
|
| Other
receivables |
|
855,567 |
2,129,682 |
|
|
|
------------------ |
------------------ |
|
|
|
47,734,980 |
42,337,421 |
|
|
|
|
========== |
========== |
|
|
| 20.1
Aggregate amount due by the executives Rs. 0.193 million (1999: Rs. 0.182
million). |
|
| Maximum
amount due from executives at the end of any month during the year aggregated |
|
| Rs.
0.345 million (1999: Rs. 0.285 million). |
|
|
|
|
|
| 21.
SHORT-TERM INVESTMENTS |
|
|
| Federal
Investment Bonds |
|
-- |
925,000 |
|
| Term
finance certificates (Note 21.1) |
|
37,067,075 |
7,287,999 |
|
| Placements
and deposits (Note 21.2) |
|
73,529,600 |
96,382,192 |
|
| Special
US dollar bonds |
|
-- |
10,273,000 |
|
|
|
------------------ |
------------------ |
|
|
|
110,596,675 |
114,868,191 |
|
|
|
|
========== |
========== |
|
|
|
|
| 21.1
Term Finance Certificates (TFCs) |
|
|
| Listed |
|
|
|
| Packages
Limited |
|
|
|
| Nil
(1999: 10) Certificates of face value |
|
|
| Rs.
5,000 each and |
|
|
|
| Nil
(1999: 12) Certificates of face value |
|
|
| Rs. 100,000 each |
|
-- |
416,334 |
|
|
|
|
|
| NDLC
200 (1999: Nil) Certificates of face value |
|
|
|
| Rs. 100,000 each |
|
|
19,996,000 |
-- |
|
| ICI
Pakistan Limited |
|
|
|
| 105
(1999: 100) Certificates of face value |
|
|
|
| Rs. 100,000 each |
|
|
6,053,691 |
487,855 |
|
|
|
|
| Sui
Southern Gas Company Limited |
|
|
| 3,000
(1999: 5800) Certificates of face |
|
|
| value
Rs. 5,000 each and |
|
|
|
| 50
(1999: 50) Certificates of face value |
|
|
|
|
| Rs. 100,000 each |
|
5,152,384 |
6,383,810 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
31,202,075 |
7,287,999 |
|
| Unlisted |
|
|
|
| Sigma Leasing |
|
|
|
| 33
(1999: Nil) Certificates of face value |
|
|
| Rs.
5,000 each and |
|
|
|
| 7
(1999: Nil) Certificates of face value |
|
|
| Rs. 100,000 each |
|
|
865,000 |
-- |
|
| Paramount
Leasing |
|
|
|
|
| 50
(1999: Nil) Certificates of face value |
|
|
|
|
| Rs. 100,000 each |
|
|
5,000,000 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
5,865,000 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
|
37,067,075 |
7,287,999 |
|
|
|
|
========== |
========== |
|
|
| The
aggregate market value of listed TFCs amounted to Rs. 40.369 million |
|
| (1999:
Rs. 15 million) and carries expected profit ranging from Rs. 0.45 to Rs. 0.69
per |
|
| Rs.
1,000 per day and is redeemable in semi annual installments. |
|
|
| 21.2
These represent short-term placements and deposits with different NBFIs and
carry mark- |
|
| up
ranging from Rs. 0.27 to Rs. 0.49 per Rs. 1,000 per day. |
|
|
|
|
| 22.
CASH AND BANK BALANCES |
|
|
| Cash in hand |
|
40,902 |
9,927 |
|
| Cash
with banks on |
|
|
| -
current accounts (Note 22.1) |
|
3,038,919 |
29,072,914 |
|
| -
fixed deposit receipts (Note 22.2) |
|
10,529,202 |
69,056,626 |
|
| -
collection accounts |
|
538 |
538 |
|
|
|
------------------ |
------------------ |
|
|
|
|
13,609,561 |
98,140,005 |
|
|
|
|
========== |
========== |
|
|
|
|
| 22.1
This includes Rs. 0.10 million (1999: Rs. 0.05 million) in current account
maintained |
|
| with
the State Bank of Pakistan under NBFI rules. |
|
|
|
|
|
|
|
|
|
| 22.2
Fixed Deposit Receipts |
|
|
|
| Foreign
currency fixed deposit receipts |
|
|
170,430,417 |
249,207,581 |
|
| Less:
Credit facility availed (Note .22.3) |
|
|
159,922,921 |
180,648,077 |
|
|
|
|
------------------ |
------------------ |
|
|
|
10,507,496 |
68,559,504 |
|
|
|
|
|
|
| Other
foreign currency fixed deposit receipts |
|
|
21,706 |
247,122 |
|
| Local
currency fixed deposit receipts |
|
|
-- |
250,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
10,529,202 |
69,056,626 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| 22.3
The total sanctioned amount from a commercial bank and an investment company |
|
| under
mark-up arrangements amounted to Rs. 345 million (1999: Rs. 305 million).
These |
|
| loans
carry mark-up ranging from Rs. 0.37 to Rs. 0.45 (1999: Rs. 0.37 to Rs. 0.39)
per |
|
| Rs.
1,000 per day. The commercial bank borrowing is repayable in ten semi-annual |
|
| equal
installments upto November 2002, whereas investment company borrowings |
|
| are
repayable in twelve equal semi-annual installments upto November 2002 and six |
|
| semi-annual
installments upto November 2002. The commercial bank and investment |
|
| company
borrowing is secured against foreign currency deposits mentioned above. |
|
|
|
|
| 23.
INCOME ON INVESTMENTS |
|
|
| Return
on foreign currency deposits |
|
21,473,857 |
22,371,498 |
|
| Return
on short term placements and deposits |
|
18,697,667 |
12,576,894 |
|
| Return
on Government securities and term finance |
|
|
| certificates |
|
9,050,891 |
8,798,440 |
|
| Gain/(loss)
on sale of listed securities |
|
5,489,479 |
526,615 |
|
| Dividend
income |
|
20,000 |
89,000 |
|
|
|
------------------ |
------------------ |
|
|
|
54,731,894 |
44,362,447 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 24.
OTHER INCOME |
|
|
|
| Exchange gain |
|
3,180,440 |
8,544,193 |
|
| Fee,
commission and others |
|
|
203,052 |
360,729 |
|
| Gain
on sale of operating fixed assets |
|
-- |
78,529 |
|
| Amortization
of deferred income |
|
|
158,664 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
3,542,156 |
8,983,451 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 25.
ADMINISTRATIVE AND OPERATING EXPENSES |
|
| Salaries
and allowances including |
|
|
|
| Directors'
remuneration (Note 25.1 & 27) |
|
10,275,355 |
9,194,582 |
|
| Staff training |
|
|
45,500 |
78,450 |
|
| Rent,
rates and taxes |
|
331,405 |
122,457 |
|
| Travelling,
conveyance and entertainment |
|
552,354 |
374,492 |
|
| Vehicle running |
|
|
843,570 |
679,512 |
|
| Utilities |
|
|
451,380 |
309,526 |
|
| Telephone
and fax |
|
532,219 |
371,169 |
|
| Insurance |
|
|
690,671 |
786,103 |
|
| Fees,
subscriptions and periodicals |
|
627,965 |
596,865 |
|
| Printing
and stationery |
|
441,621 |
432,287 |
|
| Postage,
stamps and telegrams |
|
240,174 |
136,565 |
|
| Legal
and professional charges (Note 25.2) |
|
1,040,857 |
694,333 |
|
| Auditors'
remuneration (Note 25.3) |
|
301,300 |
151,000 |
|
| Repairs
and maintenance |
|
695,913 |
621,897 |
|
| Depreciation |
|
|
4,048,891 |
1,511,452 |
|
| Advertisement |
|
|
114,545 |
115,038 |
|
| Miscellaneous |
|
|
-- |
47,396 |
|
|
|
------------------ |
------------------ |
|
|
|
|
21,233,720 |
16,223,124 |
|
|
|
|
========== |
========== |
|
|
| 25.1
Salaries and allowances include Rs. 656,153 (1999: Rs. 675,674) in respect of
staff retirement |
|
| benefits. |
|
|
|
|
| 25.2
Legal and professional charges |
|
|
| Corporate
services |
|
|
442,422 |
473,082 |
|
| Taxation
services |
|
|
85,000 |
-- |
|
| Legal charges |
|
|
288,495 |
166,600 |
|
| Rating
updating fee |
|
|
200,000 |
-- |
|
| Others |
|
|
24,940 |
54,651 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,040,857 |
694,333 |
|
|
|
|
========== |
========== |
|
|
|
|
| 25.3
Auditors' remuneration |
|
|
|
| Statutory
audit fee |
|
|
65,000 |
55,000 |
|
| Special audit fee |
|
|
20,000 |
20,000 |
|
| Taxation
charges |
|
|
213,300 |
75,000 |
|
| Out-of-pocket
expenses |
|
|
3,000 |
1,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
301,300 |
151,000 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
|
|
| 26.
FINANCIAL CHARGES |
|
|
|
| Mark-up on: |
|
|
|
|
| long-term
finances |
|
72,340,964 |
75,198,568 |
|
| -
short-term finances |
|
21,493,680 |
20,436,810 |
|
| -
discounting facility |
|
1,342,105 |
4,894,604 |
|
| -
running finances under mark-up arrangement |
|
549,263 |
4,580,113 |
|
| -
long-term COIs |
|
4,206,115 |
1,364,682 |
|
| -
short-term COIs |
|
7,811,717 |
8,014,614 |
|
| Finance
charges on liabilities against assets subject |
|
|
| to
finance leases |
|
934,999 |
560,572 |
|
| Bank
and other charges |
|
453,225 |
253,749 |
|
|
|
------------------ |
------------------ |
|
|
|
109,132,068 |
115,303,712 |
|
|
|
|
========== |
========== |
|
|
| 27.
REMUNERATION OF CHIEF EXECUTIVE AND OTHER EXECUTIVES |
|
|
|
|
2000 |
|
1999 |
|
|
|
|
|
|
Chief |
Executives |
Total |
Chief |
Executives |
Total |
|
|
Executive |
|
Executive |
|
|
|
|
Rupees |
|
Rupees |
|
|
|
|
|
| Managerial
Remuneration |
1,555,000 |
2,527,824 |
4,082,824 |
1,393,333 |
2,059,514 |
3,452,847 |
|
| Housing
and utility |
805,000 |
1,307,894 |
2,112,894 |
696,667 |
1,029,763 |
1,726,430 |
|
| Bonus |
|
250,000 |
345,013 |
595,013 |
197,451 |
330,316 |
527,767 |
|
| Medical
& other expenses |
103,372 |
204,288 |
307,660 |
129,394 |
171,695 |
301,089 |
|
| Company's
contribution |
|
|
| to
provident fund |
150,000 |
245,100 |
395,100 |
132,000 |
198,056 |
330,056 |
|
| Company's
Contribution |
|
|
| to
pension scheme of an |
|
|
| associated
undertaking |
216,000 |
-- |
216,000 |
3,181,300 |
-- |
318,000 |
|
| Leave
fare assistance |
422,560 |
173,592 |
596,152 |
283,805 |
189,575 |
473,380 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Total |
|
3,501,932 |
4,803,711 |
8,305,643 |
3,150,650 |
3,978,919 |
7,129,569 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| Number
of persons |
1 |
11 |
12 |
1 |
11 |
12 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| The
Chief Executive, Chairman and executives have been provided with free use of
company |
|
| cars.
Directors were paid Rs. 6,000 (1999: Rs. 9,000) for attending board meetings
during |
|
| the year. |
|
|
|
|
| 28. TAXATION |
|
|
|
|
| Current |
|
|
|
|
| For
the year (Note 28.1) |
|
3,000,000 |
1,726,192 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
| 28.1
This represents the provision for taxation based on taxable income. |
|
|
| 28.2
Deferred taxation arising due to timing differences between accounting and
income |
|
| tax
revenue computed under liability method is estimated at Rs. 33.03 million
(1999: |
|
| Rs.
39.94 million) which is fully appropriated and has been transferred to
Capital |
|
| Reserve
under "Reserve for deferred taxation". |
|
|
|
|
|
| 29.
EARNINGS PER SHARE - Basic and Diluted |
|
|
| Profit
after taxation |
|
|
30,783,018 |
29,544,538 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
No. of
Shares |
|
| Weighted
average number of shares outstanding |
|
|
|
|
| (Note 29.1) |
|
|
|
20,125,575 |
20,125,575 |
|
|
|
|
|
|
Rupees |
Rupees |
|
| Earnings
per share - Basic |
|
1.53 |
1.47 |
|
| Earnings
per share - Diluted |
|
N/A |
N/A |
|
|
|
|
|
|
| 29.1
Number of share3 at the beginning of the year |
|
17,250,000 |
15,000,000 |
|
| Bonus
shares issued |
|
-- |
2,250,000 |
|
| Proposed
issue of bonus shares @ 16.67% |
|
2,875,575 |
2,875,575 |
|
|
|
------------------ |
------------------ |
|
| Weighted
average number of shares outstanding |
|
20,125,575 |
20,125,575 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| 30.
CREDIT RISK AND CONCENTRATION OF CREDIT RISK |
|
| Credit
risk is the risk that one party to a financial instrument will fail to
discharge an obligation |
|
| and
cause to other party to incur a financial loss. The company attempts to
control credit |
|
| risk
by monitoring credit exposures, limiting transactions with specific
counter-parties and |
|
| continually
assessing the credit worthiness of counter-parties. |
|
|
|
|
|
|
| A
sector wise breakdown of lease portfolio is as follows: |
|
|
|
2000 |
1999 |
|
|
|
% |
% |
|
| Textiles |
|
|
|
12.95 |
13.00 |
|
| Synthetic,
Garments and others |
|
|
11.14 |
9.00 |
|
| Food,
Tobacco and Beverages |
|
|
10.45 |
10.33 |
|
| Transport
and Communication |
|
|
8.24 |
3.16 |
|
| Chemical,
Pharmaceuticals and Fertilizers |
|
6.93 |
7.94 |
|
| Steel
Engineering and Automobiles |
|
5.86 |
4.65 |
|
| Cement |
|
|
|
5.52 |
9.29 |
|
| Financial |
|
|
|
5.17 |
7.01 |
|
| Energy,
Oil and Gas |
|
|
4.79 |
7.99 |
|
| Sugar
and Allied |
|
|
4.43 |
5.02 |
|
| Paper
and Board |
|
|
4.01 |
4.28 |
|
| Healthcare |
|
|
|
3.51 |
2.24 |
|
| Glass
and Ceramics |
|
|
1.76 |
2.66 |
|
| *Miscellaneous |
|
|
|
15.24 |
13.43 |
|
|
|
------------------ |
------------------ |
|
|
|
|
100 |
100 |
|
|
|
|
========== |
========== |
|
|
|
|
| *Sectors
below 2 percent clubbed under "Miscellaneous." |
|
|
| In
addition, the company has placed certain funds with other NBFIs and has
invested certain |
|
| funds
in special US dollar bonds, federal investment bonds and term finance
certificates. |
|
|
| 31.
FAIR VALUE OF FINANCIAL ASSETS |
|
| The
estimated fair value of long-term investments and book value as at June 30,
2000 is |
|
| as follows: |
|
|
|
|
Rupees |
|
|
| Book value |
|
|
3,125,000 |
|
| Fair value |
|
|
3,020,336 |
|
|
|
|
------------------ |
|
| Book
value over fair value |
|
104,664 |
|
|
========== |
|
|
| No
provision for decline in book value has been made, as in the opinion of
management |
|
| the
decline is temporary. |
|
|
|
|
|
|
| The
fair value of all other financial assets and financial liabilities is
estimated to approximate |
|
| their
carrying value. |
|
|
|
|
| 32.
INTEREST RATE RISK EXPOSURE |
|
|
| The
information about the company's exposure to interest rate risk as at June 30,
2000 based on |
|
| contractual
refinancing or maturity dates whichever is earlier is as follows: |
|
|
|
|
Interest bearing |
|
Non-Interest
bearing |
|
|
|
|
|
Less than |
One month |
Over |
|
Total |
|
|
one month |
to one year |
one year |
|
|
|
| Financial
Assets |
|
| Net
investment in leases |
35,162,024 |
277,830,996 |
307,223,667 |
147,773,748 |
767,990,435 |
|
| Long-term
investments |
-- |
-- |
28,143,136 |
4,125,000 |
32,268,136 |
|
| Long-term
deposits |
-- |
-- |
-- |
906,505 |
906,505 |
|
| Short-term
finances |
5,505,492 |
2,671,118 |
-- |
-- |
8,176,610 |
|
| Advances
and other receivables |
6,792,501 |
-- |
-- |
24,643,284 |
31,435,785 |
|
| Short-term
investments |
43,250 |
110,311,743 |
-- |
241,682 |
110,596,675 |
|
| Cash
and bank balances |
21,706 |
-- |
10,507,496 |
3,080,359 |
13,609,561 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| 2000 |
|
47,524,973 |
390,813,857 |
345,874,299 |
180,770,578 |
964,983,707 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| 1999 |
|
115,310,967 |
281,417,339 |
421,994,187 |
164,869,011 |
983,591,504 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
|
|
| Financial
Liabilities |
|
| Long-term
finances |
2,207,598 |
116,583,915 |
122,673,104 |
-- |
241,464,617 |
|
|
| Certificates
of investment |
-- |
71,125,000 |
3,175,000 |
-- |
74,300,000 |
|
|
| Liabilities
against assets subject to |
|
|
|
|
| finance leases |
|
162,375 |
1,793,994 |
2,056,896 |
551,450 |
4,564,715 |
|
|
| Long-term
deposits |
-- |
-- |
-- |
147,773,748 |
147,773,748 |
|
|
| Short-term
finances |
25,000,000 |
80,000,000 |
-- |
-- |
105,000,000 |
|
|
| Running
finances under mark-up |
|
|
|
|
| arrangement |
|
-- |
37,228,966 |
-- |
-- |
37,228,966 |
|
|
| Creditors,
accrued and other liabilities |
-- |
-- |
-- |
26,111,837 |
26,111,837 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
2000 |
27,369,973 |
306,731,875 |
127,905,000 |
174,437,035 |
636,443,883 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
1999 |
36,951,901 |
284,744,778 |
223,344,767 |
137,819,253 |
682,860,699 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| On
balance sheet gap 2000 |
20,155,000 |
84,081,982 |
217,969,299 |
6,333,543 |
|
|
|
========== |
========== |
========== |
========== |
|
|
1999 |
78,359,066 |
(3,327,439) |
198,649,420 |
27,049,758 |
|
|
|
========== |
========== |
========== |
========== |
|
| Cumulative
interest rate |
|
| sensitivity
gap (a) 2000 |
20,155,000 |
104,236,982 |
322,206,281 |
|
|
========== |
========== |
========== |
|
|
1999 |
78,359,066 |
75,031,627 |
273,681,047 |
|
|
========== |
========== |
========== |
|
|
| (a)
The effective interest rate for financial assets and financial liabilities
are as follows. |
|
|
|
|
2000 |
1999 |
|
|
|
|
% |
% |
|
|
| Financial
Assets |
|
|
|
|
|
| Net
investment in finance leases |
|
16.00 to 26.46 |
19.25 to 28.25 |
|
|
| Long-term
investments |
|
six months |
six months |
|
|
|
|
LIBOR plus 2 |
LIBOR plus 2 |
|
|
| Short-term
finances |
|
16.00 to 24.00 |
22.25 |
|
|
| Short-term
investment |
|
|
|
|
| -
Term finance certificates |
|
16.25 to 25.04 |
18.50 to 22.50 |
|
|
| -
Placements and deposits |
|
10.00 to 18.05 |
15.25 to 19.00 |
|
|
| Cash
and bank balances |
|
6.50 to 8.50 |
6.50 to 9.50 |
|
|
|
|
|
|
|
|
|
| Financial
Liabilities |
|
|
|
|
|
| Long-term
finances |
|
11.50 to 19.00 |
11.50 to 19.35 |
|
|
| Certificates
of investment |
|
12.65 to 19.00 |
· 13.25 to 18.88 |
|
|
| Liabilities
against assets subject to finance leases |
|
17.25 to 20.07 |
19.17 to 21.03 |
|
|
| Short-term
finances |
|
12.40 to 15.60 |
13.75 to 18.25 |
|
|
| Running
finances under mark-up arrangement |
|
16.00 to 16.80 |
16.00 to 18.25 |
|
|
|
|
|
|
|
|
|
|
2000 |
1999 |
|
|
|
|
|
Rupees |
Rupees |
|
|
| 33.
TRANSACTIONS WITH ASSOCIATED UNDERTAKINGS |
|
|
|
| Placements
and deposits |
|
20,000,000 |
20,000,000 |
|
|
| Short-term
finance obtained |
|
25,000,000 |
55,000,000 |
|
|
| Lease
finance obtained |
|
-- |
1,400,000 |
|
|
| Finance
obtained under |
|
|
|
|
| repurchase
(Repo) arrangements |
|
275,242,445 |
-- |
|
|
| Asset
given on finance lease |
|
626,000 |
-- |
|
|
| Mark-up
on short term finances obtained |
|
1,453,878 |
491,000 |
|
|
| Mark-up
on short-term finances given |
|
-- |
369,384 |
|
|
| Interest paid |
|
24,939,857 |
38,608,990 |
|
|
| Lease
rentals received |
|
8,123,428 |
7,925,360 |
|
|
| Lease
rentals paid |
|
594,684 |
110,078 |
|
|
|
| 34.
MAN POWER |
|
|
| The
total number of employees as at June 30, 2000 were 19 (1999: 20). |
|
|
| 35.
CORRESPONDING FIGURES |
|
| Corresponding
figures have been re-arranged and re-grouped wherever necessary for the |
|
| purpose
of comparison. |
|
|
|
|
|
JAVED A. CALLEA |
|
AFTAB AHMED KHAN |
|
|
Chief Executive |
|
Chairman |
|
|
|
| Form "34" |
|
| Pattern
Of Holding Of Shares |
|
| Held
By The Shareholders As At 30th June 2000 |
|
|
| No. of |
Shareholding |
Total |
|
| Shareholders |
From |
To |
Shares Held |
|
|
| 24 |
1 |
100 |
1210 |
|
| 67 |
101 |
500 |
21362 |
|
| 54 |
501 |
1000 |
43199 |
|
| 123 |
1001 |
5000 |
268921 |
|
| 23 |
5001 |
10000 |
169860 |
|
| 19 |
10001 |
15000 |
231760 |
|
| 5 |
15001 |
20000 |
83890 |
|
| 2 |
20001 |
25000 |
44740 |
|
| 9 |
25001 |
30000 |
251620 |
|
| 4 |
30001 |
35000 |
130205 |
|
| 4 |
35001 |
40000 |
147679 |
|
| 2 |
40001 |
45000 |
87975 |
|
| 2 |
55001 |
60000 |
116150 |
|
| 1 |
60001 |
65000 |
65000 |
|
| 3 |
65001 |
70000 |
199570 |
|
| 1 |
70001 |
75000 |
73542 |
|
| 1 |
80001 |
85000 |
83025 |
|
| 1 |
90001 |
95000 |
93500 |
|
| 1 |
100001 |
105000 |
102620 |
|
| 1 |
110001 |
115000 |
112000 |
|
| 1 |
145001 |
150000 |
145330 |
|
| 1 |
265001 |
270000 |
268972 |
|
| 1 |
330001 |
335000 |
333500 |
|
| 1 |
510001 |
515000 |
512550 |
|
| 1 |
640001 |
645000 |
640705 |
|
| 1 |
735001 |
740000 |
738700 |
|
| 1 |
740001 |
745000 |
741520 |
|
| 1 |
1430001 |
1435000 |
1433015 |
|
| 1 |
1895001 |
1900000 |
1895950 |
|
| 1 |
2020001 |
2025000 |
2021930 |
|
| 1 |
2735001 |
2740000 |
2740000 |
|
| 1 |
3445001 |
3450000 |
3450000 |
|
| ------------------ |
|
------------------ |
|
| 359 |
|
17250000 |
|
| ========== |
|
========== |
|
|
| Categories
of Shareholders |
|
Number |
Shares Held |
Percentage |
|
|
| Individuals |
|
308 |
1596728 |
9.26 |
|
| Investment
Companies |
|
1 |
4786 |
0.03 |
|
| Insurance
Companies |
|
4 |
415380 |
240 |
|
| Joint
Stock Companies |
|
18 |
1555145 |
9.02 |
|
| Financial
Institutions |
|
13 |
6062390 |
35.14 |
|
| Modaraba
Companies |
|
2 |
741895 |
4.30 |
|
| Others |
|
13 |
6873676 |
39.85 |
|
|
|
------------------ |
------------------ |
------------------ |
|
| Total |
|
359 |
17250000 |
100.00 |
|
|
========== |
========== |
========== |
|
|
|
| Others |
|
|
|
| Modarabas |
|
12 |
3423676 |
19.85 |
|
| Non-resident |
|
1 |
3450000 |
20.00 |
|
|
------------------ |
------------------ |
------------------ |
|
| Total |
|
|
13 |
6873676 |
39.85 |
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
