For business information, annual reports, laws, ordinances, regulations and articles.

	Web Paksearch.com

Dawood Leasing Company Limited
Annual Report 2001
CONTENTS
Dawood Leasing Company Limited
Corporate Information
Notice of Meeting
Financial Highlights
Directors Report
Auditors Report
Balance Sheet
Profit & Loss Account
Statement of Changes in Equity
Cash Flow Statement
Notes to the Financial Statements
Statements & Report Under Section 237of the Companies Ordinance, 1984
Pattern of Share Holding
Consolidated Account of Dawood Leasing Company Ltd. and its Subsidiaries
Auditors Report
Balance Sheet
Profit & Loss Account
Cash Flow Statement
Statement of Changes in Equity
Notes to the Financial Statements
CORPORATE INFORMATION
Board of Directors		Mr. Rafique Dawood		Chairman & Chief Executive
		Mr. Rasheed Y. Chinoy
		Mr. Ayaz Dawood
		Mr. Asadullah Khawaja
		Mr. Muhammad Latif		(Nominee of SLIC)
		Mr. Abdul Latif Uqaili		(Nominee of ICP)
		Mr. Ahmed Kamran		(Nominee of A1-Faysal Inv. Bank)
Company Secretary		Syed Jamal Macdi
Auditors		M. Yousuf Adil Saleem & Co.
		Chartered Accountants
Legal Advisors		Mohsin Tayebaly & Co.
Bankers		American Express Bank Ltd.
		Bank Al-Habib Ltd.
		Bank of Khyber
		Emirates Bank International PJSC
		Faysal Bank Ltd.
		Habib Bank Ltd.
		Habib Bank AG Zurich
		Metropolitan Bank Ltd.
		Muslim Commercial Bank Ltd.
		Oman International Bank S.A.O.G.
		Prime Commercial Bank Ltd.
		PICIC Commercial Bank Ltd.
		Societe General, The French & International Bank
		Soneri Bank Ltd.
		United Bank Ltd.
		Union Bank Ltd.
Registered Office,
Head Office and		5-B, Lakson Square Building # 1,
Share Registrars		Sarwar Shaheed Road, Karachi-74200
		Tel.: (021) 568 7778
		Fax.: (021) 568 5830
		E-mail: dlc@cyber.net.pk
Branch Offices		Office No. 20 & 21, Beverly Centre, 1st Floor,
		56-G, Jinnah Avenue, Islamabad-744000
		Tel.: (051) 227 6367 & 227 4194-5
		Fax: (051) 227 1280
		E-mail: moeen@comsats.net.pk
		86-B/11, Punjab Government Employees,
		Cooperative Housing Society, Lahore.
		Tel/Fax: (042) 518 4710
		E-mail: dlc@brain.net.pk
NOTICE OF SEVENTH ANNUAL GENERAL MEETING
Notice is hereby given that the Seventh Annual General Meeting of DAWOOD LEASING COMPANY LIMITED will be held
at the Registered Office, 5-B, Lakson Square Building # 1, Sarwar Shaheed Road, Karachi on Wednesday, December 26, 2001
at 8:30 a.m. to transact the following business:
1. To receive, consider and adopt the Audited Accounts of the Company for the year ended June 30, 2001 together with
the Directors' and Auditors' Report thereon.
2. To approve Dividend @ 10% as recommended by the Directors for the year ended June 30, 2001.
3. To appoint Auditors and to fix their remuneration.
Special Business:
4. To elect 7 Directors of the Company as fixed by the Board of Directors under the provisions of Section 178 of the
Companies Ordinance, 1984 for a term of three years. The retiring Directors are:
Mr. Rafique Dawood		Mr. Rasheed Y. Chinoy
Mr. Ayaz Dawood		Mr. Asadullah Khawaja
Mr. Muhammad Latif		Mr. Abdul Latif Uqaili
Mr. Ahmad Kamran
5. To consider and if thought fit pass following resolution as Special Resolution under Section 208 of the Companies
Ordinance, 1984 with or without modification.
"Resolved, that Mr. Rafique Dawood, the Chief Executive of the Company be and is hereby authorized with approval of
the Board of Directors to make short term loans (upto 6 months) in the subsidiaries and associated companies/modarabas
namely: (1) Providence Modaraba Limited (PML) (2) Guardian Modaraba (GM), (3) General Modaraba Services (Pvt.)
Limited (GMSL) and (4) First General Leasing Modaraba (FGLM), on behalf of the Company, provided that the amount
of such loans at any time shall not exceed 10% of the paid up capital, plus free reserves of the Company and return on
these loans shall be 100 be more than the borrowing cost of the Company and subject to the compliance of rules and
regulations as applicable. This authority shall remain in force until revoked by the shareholders. The outstanding short
term loans and placements, amount at any one time should not exceed the following limits, PML Rs. 2.50 million, GM
Rs. 25 million, GMSL Rs. 2.50 million and FGLM Rs. 10 million."
					By the Order of the Board
November 28, 2001					Syed Jamal Macdi
Karachi					Company Secretary
Notes:
1. The Register of members of the Company will remain closed from December 18, 2001 to December 26, 2001 (both days
inclusive).
2. Any person who seeks to contest the election of the office of Director shall at the Registered Office of the Company, file
at the latest by December 12, 200I a notice of his intention to offer himself for election as Director in terms of Section
178(3) of the Companies Ordinance, 1984. The conditions imposed by the Securities & Exchange Commission Of Pakistan
require prior approval for any change in the Directors of the Company.
3. A member entitled to attend and vote at a General Meeting is entitled to appoint a proxy to attend and vote instead of
him/her. No person other than a member shall act as proxy. An instrument appointing a proxy and the power-of-attorney
or other authority (if any) must be deposited 48 hours before the Meeting at the Registered Office.
4. CDC account holders will in addition, have to follow the guidelines as laid down in Circular No. 1 dated January
26, 2000 of the Securities & Exchange Commission of Pakistan for attending the meeting:
Statement Under Section 160 of the Companies Ordinance, 1984
The Company (DLC) has been making investment in the shape of short term loans and placements from time to time and
creating reasonable portfolio on its own account. With the prevailing lower mark up rates and defaults it is desirable to
give loans and place funds in those companies/modarabas who are although subsidiaries and associated but have good
credit standing/history. Due to acquisitions and common directorships of Directors in other companies/modarabas, such
other companies/modarabas namely (1) PML (2) GM (3) GMSL & (4) FGLM become subsidiaries and associated
and loans to these companies/modarabas necessitate special resolution under section 208 of the Companies Ordinance,
1984. Since it is not practicable to pass a Special Resolution each time the Company to make a loan in such
companies/modarabas, it has become necessary to give a standing authority to the Chief Executive to make, vary or
withdraw investment in the companies/modarabas, as subsidiaries and associated, from time to time, with the approval
of Board of Directors and subject to the limitations laid down under the Special Resolution and Section 208 of the
Companies Ordinance, 1984.
The Directors have no personal interest in the above matters, except for the following limited interest:
Some of the directors may possibly be on the Board of the subsidiaries and associated companies for which the Chief
Executive is being granted the authority to make investment under Section 208 of the Companies Ordinance, 1984.
PML is the fully owned subsidiary of DLC, whereas GMSL is owned 51% by DLC and ICP and SAPICO have 25% and
24% holding respectively. GM and FGLM are the two modarabas being managed by PML and GMSL.
The outstanding short-term loan/placement amount at any one time should not exceed the following limits;
PML Rs. 2.50 million, GM Rs. 25 million, GMSL Rs. 2.50 million and FGLM Rs. 10 million.
FINANCIAL HIGHLIGHTS
		2001	2000	1999	1998	1997	1996	1995*
					Rupees in Million
Authorized Capital		500.00	500.00	500.00	500.00	300.00	300.00	300.00
Paid-up Capital		250.00	250.00	250.00	250.00	250.00	250.00	250.00
Shareholders Equity		313.24	306.72	300.62	305.59	295.52	281.60	267.92
Group Equity		674.38	542.48	543.34	--	--	--	--
Total Assets		2057.67	1529.65	1520.99	926.58	680.10	539.45	340.45
Group Assets		2625.07	1886.77	1805.46	--	--	--	--
Net Investment in Lease Finance		1372.17	1117.79	1036.38	791.63	620.50	510.57	253.37
Provision for Lease Losses		77.00	49.00	34.00	26.50	16.50	5.00	--
Revenue		272.69	214.14	163.21	141.34	121.96	89.12	28.00
Income from Leasing Operations		184.58	171.04	154.05	133.36	121.29	84.66	21.19
Profit before Taxation		47.32	41.65	35.29	28.06	46.41	46.21	18.09
Taxation		15.80	10.55	15.35	17.89	1.24	1.27	0.17
Profit after Taxation		31.51	31.10	19.94	10.17	45.16	44.94	17.92
Current Ratios		1:1.06	1:1.04	1:1.32	1:1.26	1:1.53	1:0.91	1:6.74
Book Value Per Share		12.48	12.27	12.02	12.22	11.82	11.26	10.71
Earning Per Share - After Tax		1.26	1.24	0.80	0.40	1.81	1.79	0.71
Return on Equity - Pre-Tax		15.43%	13.86%	11.50%	9.50%	16.48%	17.25%	6.75%
Dividend Per Share (Rs.)		1.00	1.00	1.00	--	1.25	1.25	--
*6 months of operations.
DIRECTORS REPORT
We are pleased to present your Company s Seventh Annual Report for the year ended June 30, 2001.
Operating Result:				2001	2000
				Rupees	Rupees
Total Assets				2.057 billion	1.529 billion
Total Group Assets				2.626 billion	1.887 billion
Lease Income				184,582,954	171,044,261
Other Income				88,109,917	43,371,017
Provisions (net)				35,192,433	21,446,119
Profit after Taxation				31,511,749	31,103,850
Profit Available for Appropriation				31,894,652	31,603,673
Appropriations
Transfer to Statutory Reserve				6,302,350	6,220,770
Proposed Cash Dividend				25,000,000	25,000,000
Un-appropriated Profit				592,302	382,903
During the fiscal year 2000-2001, your Company made lease disbursements amounting to Rs. 616.08 million to 198 clients, raising
the net investment in leases to Rs. 1.372 billion. (1999-2000 Rs. l.117 billion). Scarcity of good leasing prospects continued this
year as well. The Plant & Machinery continued to dominate the asset mix of the portfolio while sector wise portfolio has not changed
significantly. The Textile Composite, Steel, Eng. & Automobile are our major areas of investment.
The total revenue of the Company has increased to Rs. 272.69 million, an increase of 27%, as compared to last year. The return on
short term investment has increased to Rs. 50.11 million from Rs. 30.125 million mainly due to investments in TFCs which were
made to support fixed income securities market in the country and to meet our liquidity requirement.
In continuation of our prudent accounting approach, this year we have provided Rs. 12 million on account of deferred tax liability
through the income statement thus raising the total to Rs. 49.2 million. The Company does not expect that this liability will materialize
in the foreseeable future. We also have made provision of Rs. 28 million for lease losses thus increasing the total to Rs. 77 million.
Credit Rating
Your Company s credit rating has been upgraded. The long term rating has been raised to A (single A) from A- (single A minus) and
the short term rating to A1(A one) from A2 (A two) by Pakistan Credit Rating Agency. The assign rating denotes low expectation
of credit risk and strong capacity for timely repayment of financial commitments.
Underwriting & Pre-IPOs
Your Company continued its policy to be an active participant in the development of secondary market. During the current year, your
Company participated in Pre-IPO of Term Finance Certificates (TFCs) issued by Alnoor Sugar Mills Limited, Atlas Lease Limited,
Network Leasing Limited and Shakarganj Mills Limited and underwrote the TFCs issue of Orix Leasing Limited, Alnoor Sugar Mills
Limited. Network Leasing Limited and Engro Asahi. These activities generated fee based income of Rs. 713,750.
Resource Mobilization
The last few years have been difficult for the leasing sector as there has been declining trend in credit availability from multilateral
agencies, the prohibitive cost of hedging made it difficult to avail even the approved credit lines. Meanwhile with the decline in
interest rates. the local sources have become attractive avenues of funds mobilization for the leasing sector.
Your Company s good rating and solid credit standing has contributed in raising funds through issues of Certificate of Investments
(COIs) to individual and corporate customers, an increase of 150 percent was achieved in COI deposits from last year. Our local
bankers have continued to enhance and extended credit lines, as such, your Company does not foresee any uncertainty in meeting
its future funding requirements.
Alhamdullah, after the balance sheet date, on September 12th this year, your Company successfully issued its Term Finance Certificates						Communication
of Rs. 253 million, which were over subscribed. This was a unique issue because it was the First Five Year Perpetual TFC issued in
Pakistani history. These TFCs are listed on the Lahore Stock Exchange and have a floating rate based on the discount rate with a floor
of 13.5% and ceiling of 17.5%. We are thankful to all the investors for their support.
Future Outlook
Presently, the economy of Pakistan is in the throes of severe macro economic imbalances and deceleration of growth therefore it is
difficult to assess the future outlook. It is hoped that military regime would be in a better position to think and take decisions that would
reverse the country's economic slump. The task of reviving the economy and providing good governance is a monumental one.
With the events of September l 1, our Government supportive stands with the coalition partners will certainly help to boost our economy.
The Standard and Poor rating agency has maintained a stable outlook for Pakistan.
The trading at all the three stock exchanges of the country remained suspended for the whole week in September, the first instance in
the past two decades, in order to avert drastic market decline.
The cut in discount rate to 10% is not yet sufficient, compared with the other economies of the region, India (6%) and Bangladesh (7.5%).
A further cut is therefore expected which would certainly help our depressed economy.
Pressure on Pakistan rupee has eased considerably with the return of flight capital. Given the prevailing conditions, the management of
your Company sees few prospects of fixed investments and we continue to emphasize our conservative approach in leasing out assets.
We believe that your Company will continue to benefit from the improving trend in our economy.
M & A Activities
As part of the management s strategy for growth and diversification, your Company acquired another modaraba management company
namely Providence Modaraba Ltd., the manager of First Providence Modaraba in December 2000.
Guardian Leasing Modaraba (GLM) has been merged with First Providence Modaraba (FPM) as per Scheme of Amalgamation/Merger
approved by the Honourable High Court of Sindh.
The name of the merged modarabas has been changed to Guardian Modaraba with an equity base of Rs. 173.079 million and assets
of Rs. 339.993 million as of June 30th 2001.
Pattern of Shareholding
The pattern of Shareholding as on June 30, 2001 is annexed to these financial statements.
Auditors
The present auditors, M. Yousuf Adil Saleem & Co., Chartered Accountants, are due for retirement and being eligible offer themselves
for re-appointment.
Condolence
The members of the Board and staff of the Company record with deep sorrow the sad demise of Mr. Suleman Dawood, one of the pillars
of the Dawood family. May Allah place his soul in eternal rest and give the strength to the family members to bear this loss, Ameen.
Acknowledgements
We would like to express our appreciation for the support and encouragement given to your Company by the Regulator, the Securities
and Exchange Commission of Pakistan through the Chairman and the Governor of the State Bank of Pakistan. We also acknowledge
the continued competence of  our managements and staff.
					On behalf of the Board
					Refique Dawood
November 28, 2001					Chairman & CEO
AUDITORS REPORT TO THE MEMBERS
We have audited the annexed balance sheet of DAWOOD LEASING COMPANY LIMITED as at June 30, 2001 and the
related profit and loss account, statement of changes in equity and 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.
It is the responsibility of the Company s management to establish and maintain a system of internal control, and prepare
and present the above said statements in conformity with the approved accounting standards and the requirements of the
Companies Ordinance, 1984. Our responsibility is to express an opinion on these statements based on our audit.
We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that
we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the above
said statements. An audit also includes assessing the accounting policies and significant estimates made by management,
as well as, evaluating the overall presentation of the above said statements. We believe that our audit provides a reasonable
basis for our opinion and, after due verification, we report that:
a. in our opinion, proper books of 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 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, statement of changes in equity and cash flow statement 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, 2001 and of the profit, changes
in equity and its cash flows 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.
Dated: November 28, 2001					M. Yousuf Adil Saleem & Co.
Karachi:					Chartered Accountants
BALANCE SHEET AS AT JUNE 30, 2001
				2001	2000
			Note	Rupees	Rupees
SHARE CAPITAL AND RESERVES
Authorized
50,000,000 Ordinary Shares
of Rs. 10/- each				500,000,000	500,000,000
				==========	==========
Issued, Subscribed and Paid up
25,000,000 Ordinary Shares of
Rs. 10/- each. Fully Paid in Cash				250,000,000	250,000,000
Statutory Reserve				40,148,077	33,845,727
General Reserve				22,500,000	22,550,000
Unappropriated Profit				592,302	382,903
				------------------	------------------
				313,240,379	306,728,630
LONG TERM LIABILITIES
Redeemable Capital			3	49,524,541	5,218,349
Long Term Loans			4	240,265,340	297,859,954
Long Term Deposits				305,900	--
Lease Deposits			5	194,431,475	112,511,803
Certificates of Investment			6	27,145,000	36,100,000
				------------------	------------------
				511,672,256	451,690,106
DEFERRED LIABILITIES
Taxation				49,200,000	37,200,000
Staff Gratuity				2,047,235	1,392,973
				------------------	------------------
				51,247,235	38,592,973
CURRENT LIABILITIES
Short Term Borrowings			7	734,016,863	496,539,426
Certificates of Investment			6	228,655,000	66,000,000
Current Portion of Long Term Liabilities			8	86,792,945	95,293,682
Accrued and Other Liabilities			9	103,045,228	47,213,529
Taxation				4,000,000	2,600,000
Proposed Dividend				25,000,000	25,000,000
				------------------	------------------
				1,181,510,036	732,646,636
COMMITMENTS			10
				------------------	------------------
				2,057,069,906	1,529,658,346
				==========	==========
The annexed notes from 1 to 39 form an integral part of these financial statements.
FIXED CAPITAL EXPENDITURE			11	25,298,747	26,402,077
NET INVESTMENT IN LEASE FINANCE			12
Minimum Lease Payment Receivables				1,581,130,526	1,338,939,163
Residual Value of Leased Assets				195,578,249	159,531,402
				------------------	------------------
				1,776,708,775	1,498,470,565
Unearned Finance Income				(404,531,665)	(380,678,513)
				------------------	------------------
Net Investment in Lease Finance				1,372,177,110	1,117,792,052
Provision for Lease Losses				(44,675,000)	(27,050,000)
				------------------	------------------
				1,327,502,110	1,090,742,052
Current Portion of Net Investment in Lease Finance				(592,126,053)	(429,288,511)
				------------------	------------------
				735,376,057	661,453,541
INVESTMENT IN SUBSIDIARIES /ASSOCIATE			13	59,094,447	51,530,850
LONG TERM LOANS			14	2,638,318	2,899,224
LONG TERM DEPOSITS				402,000	300,000
LONG TERM RECEIVABLE			15	10,775,000	21,950,000
CURRENT ASSETS
Current Portion of Net Investment in Lease Finance				592,126,053	429,288,511
Short Term Investments			16	521,008,202	297,765,560
Short Term Morabaha Finances			17	8,608,604	7,000,000
Advances against Lease Commitment				51,126,889	2,850,000
Advances, Deposits and Prepayments			18	4,727,280	4,507,617
Other Receivables			19	32,742,232	15,109,408
Cash and Bank Balances			20	13,746,077	8,601,558
				------------------	------------------
				1,224,085,337	765,122,654
				------------------	------------------
				2,057,669,906	1,529,658,346
				==========	==========
	Rafique Dawood				Abdul Latif Uqaili
	Chairman & Chief Executive				Director
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED JUNE 30, 2001
				2001	2000
			Note	Rupees	Rupees
Income
Lease Income				184,582,954	171,044,261
Return on Deposits and Investments			21	51,745,620	33,351,769
Gain on Sale of Securities				9,836,110	9,294,278
Exchange Gain				23,947,808	--
Other Income				2,580,379	724,970
				------------------	------------------
				272,692,871	214,415,278
Expenditure
Administration and Operating Expenses			22	26,863,283	26,585,556
Financial Charges			23	175,320,927	132,925,298
Provision for Lease Losses				28,000,000	15,000,000
Reversal of Diminution in Value of Investments				(4,807,567)	(1,753,881)
				------------------	------------------
				225,376,643	172,756,973
				------------------	------------------
Profit Before Taxation				47,316,228	41,658,305
Provision for Taxation			24
Current				4,000,000	2,600,000
Prior				(195,521)	(245,545)
Deferred				12,000,000	8,200,000
				------------------	------------------
				15,804,479	10,554,455
				------------------	------------------
Profit After Taxation				31,511,749	31,103,850
Unappropriated Profit Brought Forward				382,903	499,823
				------------------	------------------
Profit Available for Appropriation				31,894,652	31,603,673
Appropriations
Transferred to Statutory Reserve				6,302,350	6,220,770
Proposed Cash Dividend Rs. 1/- per share (2000 - Rs. 1/- per share)				25,000,000	25,000,000
				------------------	------------------
				31,302,350	31,220,770
				------------------	------------------
Unappropriated Profit Carried Forward				592,302	382,903
				==========	==========
Earning Per Share - Basic and Diluted			25
Pre-Tax				1.89	1.67
Post-Tax				1.26	1.24
The annexed notes from 1 to 32 form an integral part of these financial statements
	Rafique Dawood				Abdul Latif Uqaili
	Chairman & Chief Executive				Director
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED JUNE 30, 2001
		Issued,
		Subscribed
		and Paid-up	Statutory	General	Unappropriated	Total
		Capital	Reserve *	Reserve	Profit
				Rupees
Balance at June 30, 1999		250,000,000	27,624,957	22,500,000	499,823	300,624,780
Profit for the year		--	--	--	31,103,850	31,103,850
Appropriations:
Transferred to Statutory Reserve		--	6,220,770	--	(6,220,770)	--
Dividend: Rs. 1/- per share		--	--	--	(25,000,000)	(25,000,000)
		------------------	------------------	------------------	------------------	------------------
Balance at June 30, 2000		250,000,000	33,845,727	22,500,000	382,903	306,728,630
Profit for the year		--	--	--	31,511,749	31,511,749
Appropriations:
Transferred to Statutory Reserve		--	6,302,350	--	(6,302,350)	--
Dividend: Rs. 1/- per share		--	--	--	(25,000,000)	(25,000,000)
		------------------	------------------	------------------	------------------	------------------
Balance at June 30, 2001		250,000,000	40,148,077	22,500,000	592,302	313,240,379
		==========	==========	==========	==========	==========
* The statutory reserve is created by transferring 20% after tax profit for the year as required under the  Leasing Companies
(Establishment and Regulation) Rules, 2000.
	Rafique Dawood				Abdul Latif Uqaili
	Chairman & Chief Executive				Director
CASH FLOW STATEMENT
FOR THE YEAR ENDED JUNE 30, 2001
				2001	2000
A. CASH FLOW FROM OPERATING ACTIVITIES				Rupees	Rupees
Profit After Taxation				31,511,749	31,103,850
Adjustments:
Depreciation				5,595,734	5,053,056
Loss on Sale of Investments				(9,836,110)	(9,294,278)
Financial Charges				175,320,927	132,925,298
Loss / (Gain) on Sale of Assets				52,500	(89,400)
Provision for Gratuity				706,463	747,632
Provision for Lease Losses				28,000,000	15,000,000
Reversal for Diminution in Value of Investments				(4,807,567)	(1,753,881)
Provision for Deferred Taxation				12,000,000	8,200,000
Provision for Taxation				3,804,479	2,354,455
				------------------	------------------
				210,836,426	153,142,882
				------------------	------------------
				242,348,175	184,246,732
Changes in Operating Assets and Liabilities
(Increase)/Decrease in Operating Assets
Advances, Deposits and Prepayments				(865,274	263,791
Other Receivables				(17,504,599)	12,140,412
Net Investment in Lease Finance/Receivables				(253,585,058)	(125,312,170)
Long Term Loans				239,668	(1,207,982)
Advances against Lease Commitment				(48,276,889	6,850,000
Short Term Morabaha Finances				(1,608,604)	96,051,816
				------------------	------------------
				(321,600,756)	(11,214,133)
				------------------	------------------
				(79,252,581)	173,032,599
Increase/(Decrease) in Operating Liabilities
Long Term Deposits				305,900	--
Accrued and Other Liabilities				51,987,984	(9,034,413)
Lease Deposits				86,658,496	13,587,372
				------------------	------------------
				59,699,799	177,585,558
Financial Charges Paid				(172,454,568)	(116,148,272)
Gratuity Paid				(52,201)	(212,691)
Tax Paid				(1,865,855)	(2,435,617)
				------------------	------------------
Net Cash (used in) / from Operating Activities				(114,672,825)	58,788,978
				==========	==========
B. CASH FLOW FROM FINANCING ACTIVITIES
Redeemable Capital Obtained				75,000,000	--
Redemption of Redeemable Capital				(12,508,307)	(21,665,065)
Long Term Loans - net				(89,019,676)	( 107,731,287)
Repayment of Lease Liability				--	(132,245)
Short Term Borrowings				237,477,437	62,991,347
Certificates of Investment				153,700,000	40,200,000
Dividend Paid				(24,022,644)	(24,664,666)
				------------------	------------------
Net Cash from / (used in) Financing Activities				340,626,810	(51,001,918)
C. CASH FLOW USED IN INVESTING ACTIVITIES
Long Term Deposits				(102,000)	--
Capital Expenditure				(4,718,904)	(9,137,403)
Proceeds From Sale of Fixed Assets				174,000	1,570,570
Purchase of Long Term Investment				(7,563,597)	(5,737,500)
Short Term Investments - net				(208,598,965)	(96,917,721)
				------------------	------------------
Net Cash Used in Investing Activities				(220,809,466)	(110,222,054)
Net Increase / (Decrease) in Cash and Bank Balances				5,144,519	(102,434,992)
Cash and Bank Balances at the Beginning of the Year				8,601,558	111,036,550
				------------------	------------------
Cash and Bank Balances at the End of the Year				13,746,077	8,601,558
				==========	==========
	Rafique Dawood				Abdul Latif Uqaili
	Chairman & Chief Executive				Director
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2001
1. THE COMPANY AND ITS OPERATIONS
The Company was incorporated on June 22, 1994 as a public limited Company under the Companies Ordinance, 1984
and is listed on the Karachi and Islamabad Stock Exchanges. The main business activity of the Company is leasing of
assets.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Accounting Convention
These financial statements have been prepared under the historical cost convention.
2.2 Basis of Preparation
These accounts have been prepared in accordance with International Accounting Standard as applicable in
Pakistan.
2.3 Revenue Recognition
The Company follows the finance Method in recognizing income on lease contracts. Under this method the
unearned income i.e., the excess of aggregate lease rentals and the estimated residual value over the cost of
the leased asset is deferred and then amortized over the terms of the lease applying the annuity method, so
as to produce a constant rate of return on net investment in the leases.
Front end fee, commitment fee and other commissions are taken to income when realized.
The transaction of purchase and resale obligation of Government Securities at contracted rates for specified
period of time are recorded at the contracted purchase price and the differential of the contracted purchase and'
resale prices is taken to income.
Profit on Morabaha finance and other financing are accrued on time proportion basis.
Return on securities is recognized on accrual basis.
Dividend income is recognized at the time of closure of the shares transfer books of the company declaring
the dividend.
Lease income and profit on morabaha financing which are classified under the Leasing Companies
(Establishment and Regulation) Rules, 2000 issued by Securities and Exchange Commission of Pakistan are
not taken to income.
2.4 Staff Retirement Benefits
The Company operates a funded contributory Provident Fund Scheme for its employees. Employees are also
entitled to gratuity after completion of 3 years continuous service in accordance with the service rules
of the Company.
2.5 Provision for Lease Losses
Besides making a provision as per the requirements of the Leasing Companies (Establishment and Regulation)
Rules, 2000 issued by the Securities and Exchange Commission of Pakistan, the Company exercising prudence,
also makes a general provision at a reasonable level, which in the judgements of the management is adequate
to provide for potential losses on lease portfolio and other finance that can be reasonably anticipated.
2.6 Taxation
The charge for current taxation is based on taxable income at the current rates of taxation. On lease
income, it is computed as if all leases are operating leases, after taking into account allowances available
for depreciation in respect of fixed assets under lease.
The tax effect for deferred taxation is calculated using the liability method on all major timing differences. As
a matter of prudence, deferred tax debits are not accounted for.
2.7 Tangible Fixed Assets and Depreciation
These are stated at cost less accumulated depreciation. Depreciation is charged to income, applying the straight
line method whereby cost of an asset is written off over its estimated useful life. A full year s depreciation
is charged on all assets acquired during the year while no depreciation is charged on assets disposed off
during the year.
Normal repairs and maintenance are charged to income as and when incurred. Gains and losses on disposal.
if any, are taken to profit and loss account.
2.8 Investments
2.8.1 Subsidiary / Associate
The Company follows Cost Method of accounting in recognizing the investment in subsidiary /
associate.
2.8.2. Long Term
These are stated at cost and are reduced to recognize a decline, other than temporary in values, if
any.
2.8.3 Short Term
These are stated at lower of moving average cost and market / breakup value on aggregate portfolio
basis.
2.9 Foreign Currencies Transaction
These are accounted for in Rupees at the exchange rate on the date of transaction. Assets and liabilities in foreign
currencies are converted into Rupees at the rate of exchange on the balance sheet date. In cases, where
exchange risk cover has been obtained from State Bank of Pakistan, the foreign currency amounts are translated
into Rupees at the exchange rate prevailing on the date of disbursement or renewal.
Exchange risk fee and differences arising due to hedging mechanism are accounted for as deferred revenue
or costs as the case may be, and are credited to income or amortized respectively over the term of the
transaction.
2.10 Financial Assets
Financial assets comprise of net investment in leases and installment loans net of related deposits, long
term investments in Government Securities, long term loans and receivables, long term deposits, morabaha
finances and fund placements, advances and other receivables, short term investments and cash and bank
balances. Net investment in leases and installment loans are stated at their nominal value as reduced by
appropriate allowances for estimated irrecoverable amount while other financial assets are stated at cost.
2.11 Financial Liabilities
Financial liabilities are classified according to the substance of contractual arrangements entered into. Significant
financial liabilities are long term loans, long term deposits, certificates of investment, short term finances as well
as accrued and other liabilities.
2.12 Offsetting
A financial asset and financial liability is offset and the net amount reported in the balance sheet if the
Company has a legal enforceable right to set-off the transaction and also intends either to settle on a net basis
or to realize the asset and settle the liability simultaneously. Corresponding income on the asset and charge on
the liability is also offsetted.
				2001	2000
		Term Finance Certificates		Rupees	Rupees
3. REDEEMABLE CAPITAL -SECURED
(NON-PARTICIPATORY)
Opening Balance		14,274,989	--	14,274,989	35,940,054
Obtained during the year		--	75,000,000	75,000,000	--
		------------------	------------------	------------------	------------------
		14,274,989	75,000,000	89,274,989	35,940,054
Paid during the year		(9,056,640)	(3,451,667)	(12,508,307)	(21,665,065)
		------------------	------------------	------------------	------------------
		5,218,349	71,548,333	76,766,682	14,274,989
Payable within one year
shown under current liabilities		(5,218,349)	(22,023,792)	(27,242,141)	(9,056,640)
		------------------	------------------	------------------	------------------
		--	49,524,541	49,524,541	5,218,349
		==========	==========	==========	==========
Repayment period quarterly		Sept. 01, 1998 to	Dec. 26, 2000 to
		Sept. 01 2001	May 18, 2004
Sale Price		25,000,000	75,000,000
Purchase Price		35,712,210	95,868,168
Prompt Payment Bonus		1,271,106
The redeemable capital is secured by way of a pari-passu charge on all assets and book debts of the Company
through hypothecation. Similar arrangements unless specified have been made to secure the long term loans
(Refer Note No. 4) and short term borrowings (Refer Note No. 7).
				2001	2000
				Rupees	Rupees
4. LONG TERM LOANS - SECURED
Foreign Currency
Asian Development Bank (4.1)				164,868,775	159,853,286
Local Currency
Commercial Banks (4.2)				56,666,668	60,000,000
Investment Bank (4.3)				50,000,000	140,70i,833
				------------------	------------------
				271,535,443	360,555,119
Payable within one year shown under current liabilities				(31,270,103)	(62,695,165)
				------------------	------------------
				240,265,340	297,859,954
				==========	==========
4.1 This represents a 15 years term loan facility, with a grace period of three years, obtained in tranches under
Financial Sector Intermediation Loan # 1371-PAK. The loan is subject to interest @ 0.25% over variable
Ordinary Capital Resource (OCR) rate of Asian Development Bank. The loan repayments are semi-annual and
secured by guarantee of a development financial institution. The guarantee is secured against hypothecation of
redeemable assets including book debts of the Company ranking pari-passu with charges created to secure
of capital (Refer Note No. 3) and short term borrowings (Refer Note No. 7) and term finance certificates
Rs. 9,994,000/- of NDLC (Refer Note No. 16). The Company has obtained exchange risk cover from the State
Bank of Pakistan. Principal repayment of the facility will commence from March 15, 2002 and end on
March 15, 2014
4.2 These are secured against hypothecation of assets including book debts of the Company ranking pari passu, with
the charge created in favour of other lenders to secure redeemable capital (Refer Note No. 3)
and short term borrowings (Refer Note No. 7). These facilities are payable on various dates by May 2004.
These are subject to markup rate ranging from Re. 0.3808 to Re. 0.4657 per Rs. 1,000/- per day.
4.3 These are secured against hypothecation of assets including book debts of the Company ranking pari passu, with
the charge created in favour of other lenders to secure redeemable capital (Refer Note No. 3) and short term
borrowings (Refer Note No.7). These facilities are payable on various dates by May 2004.
These are subject to markup rate ranging from Re. 0.4384 to Re. 0.50 per Rs. 1,000/- per day.
5. LEASE DEPOSITS
These represent interest free security deposits received against lease contracts and are refundable / adjustable at the
expiry/termination of the respective lease.
6. CERTIFICATES OF INVESTMENT
These represent the mobilization of fund under the Scheme of certificates of investment issued with the permission of
the Securities and Exchange Commission of Pakistan. The scheme is based on profit and loss sharing basis. The certificates
are for the terms ranging from three months to five years. The expected rate of profit ranges from 11.75% to 19.25%
				2001	2000
				Rupees	Rupees
7. SHORT TERM BORROWINGS
Secured- under markup arrangement (7.1)
From Commercial Banks
Term Loan				119,480,377	8,300,000
Morabaha Finance				50,000,000	--
Running Finance				113,286,486	78,239,426
From Non-Banking Financial Institutions				50,000,000	75,000,000
Unsecured
From Commercial Banks				150,000,000	145,000,000
From Non Banking Financial Institutions				251,250,000	190,000,000
				------------------	------------------
				734,016,863	496,539,426
				==========	==========
7.1 These facilities are secured against hypothecation of assets including book debts of the Company ranking pari
passu with the charge created to secure redeemable capital (Refer Note No. 3) and long term loans (Refer Note
No. 4). These include Rs. 100 million which is secured by pledge of US dollar bonds and Rs. 50 million which
is secured by pledge of Term Finance Certificates.
The sanctioned running finance facilities of Rs. 185 million from commercial banks are renewable yearly. The
letter of credit acceptance facilities of Rs. 45 million from commercial banks are not utilized on the balance sheet
date.
The rate of markup ranges from Re. 0.3561 to Re. 0.4863 per Rs. 1,000/- per day.
8. CURRENT PORTION OF LONG TERM LIABILITIES
Redeemable Capital				27,242,141	9,056,640
Long Term Loans				31,270,103	62,695,165
Lease Deposits				28,280,701	23,541,877
				------------------	------------------
				86,792,945	95,293,682
				==========	==========
9. ACCRUED AND OTHER LIABILITIES
Mark-up on Secured
Redeemable Capital				2,126,287	951,666
Long Term Loans				6,767,697	19,974,427
Short Term Borrowings				11,064,105	2,497,058
Mark-up / Return on Unsecured
Short Term Borrowings				11,072,681	10,236,920
Certificates of Investment				11,677,080	6,181,420
Advance against Leases				11,813,227	3,083,782
Accrued Expenses				1,705,057	1,287,600
Guarantee Commission				879,775	--
Purchase of Listed Securities				41,248,442	--
Unclaimed Dividend				1,807,655	830,299
Others				2,883,222	2,170,357
				------------------	------------------
				103,045,228	47,213,529
				==========	==========
10. COMMITMENTS
Lease financing contracts committed but not executed at the balance sheet date amounted to Rs. 86.6 million
(2000 - Rs. 147 million) and underwriting commitments of TFCs amounted to Rs. 65 million (2000 Rs. 35 million).
11. FIXED CAPITAL EXPENDITURE
Operating Assets - Tangible (11.1)				24,298,747	26,402,077
Capital Work in Progress
Advance for Renovation of Office Premises				1,000,000	--
				------------------	------------------
				25,298,747	26,402,077
				==========	==========
11.1 Operating Assets - Tangible
		Cost at	Addition/	Cost at	Accumulated	Depreciation/	Accumulated	Book value
		July 01,	Transfer/	June 30,	Depreciation	(Deletion)	Depreciation	at June	Rate
		2000	(Deletion)	2001	at July 01,	for the	at June 30,	30, 2001	%
					2000	year	2001
Office Premises		16,029,956	--	16,029,956	4,282,833	1,602,996	5,885,829	10,144,127	10
Lease Hold Improvements		8,592,686	489,605	9,082,291	2,328,235	908,229	3,236,464	5,845,827	10
Furniture and Fixtures		4,767,177	205,650	4,972,827	2,005,494	497,282	2,502,776	2,470,051	10
Equipment and Appliances		5,365,838	607,649	5,913,487	3,556,727	883,758	4,392,485	1,521,002	20
			(60,000)			(48,000)
Vehicles		7,809,714	2,416,000	10,011,214	3,990,005	1,703,469	5,693,474	4,317,740	20
			(214,500)
		------------------	------------------	------------------	------------------	------------------	------------------	------------------
Rupees		42,565,371	3,718,904	46,009,775	16,163,294	5,595,734	21,711,028	24,298,747
			(274,500)			(48,000)
		==========	==========	==========	==========	==========	==========	==========
2000 Rupees		37,273,336	9,137,403	42,565,371	13,474,436	5,053,056	16,163,294	26,402,077
			(3,845,368)			(2,364,198)
		==========	==========	==========	==========	==========	==========	==========
11.1.1 Disposal of Operating Assets - by negotiation
Particulars	Cost	Accumulated	Written	Sale	Name and Address
		Depreciation	Down Value	Proceed
Furniture and
Fixture	60,000	48,000	12,000	24,000	Mr. Noman Akhter, Ex-,employee
					C- 10, Jason Luxury Apartments
					Kehkashan Clifton, Karachi.
Vehicle	214,500	--	214,500	150,000	Mr. Munawar Raza (CDR)
					House No. C-4, PNS Johar, Karachi.
	------------------	------------------	------------------	------------------
Rupees	274,500	48,000	226,500	174,000
	==========	==========	==========	==========
2000 Rupees	3,845,368	2,364,198	1,481,170	1,570,570
	==========	==========	==========	==========
12. NET INVESTMENT IN LEASE FINANCE				2001	2000
				Rupees	Rupees
12.1 Minimum Lease Payment Receivables
Less than one year				911,499,912	593,660,855
More than one year and less than five years				669,630,614	745,278,308
				------------------	------------------
				1,581,130,526	1,338,939,163
				==========	==========
12.2 Net Investment in Lease Finance
Less than one year				592,126,053	429,288,511
More than one year and less than five years				780,376,057	661,453,541
				------------------	------------------
				1,327,502,110	1,090,742,052
				==========	==========
12.3 The Company had extended leasing facilities to Pakland Cement Limited (PCL) against which a sum of
Rs. 112.38 million was outstanding as at December 31, 2000. The creditors of PCL have filed petition in
the Sindh High Court under section 284, 285,286 and 288 of the Companies Ordinance, 1984 with the
consent of the majority of creditors for restructuring of their outstanding liabilities and repayment thereof.
Consequently, the lease facilities and borrowings of PCL shall be converted into Term Finance Certificates
(TFCs) to be issued as redeemable capital under provisions of Section 120 of the Companies Ordinance,
1984. The TFCs will be for a period of eight and half years, secured by a pari - passu charge / mortgage over
the assets and securities of PCL created in favour of the Trustees appointed on behalf of the TFC
holders / Creditors and will be redeemed in 13 semi annual installments with grace period of two and half
years from the effective date.
TFCs will be issued by PCL in two series. TFCs Series A represent the principal and overdue lease rentals/
borrowings and will carry a yield of 16% per annum. TFCs Series B will be issued for the accrued profit /
markup on which no yield will be applicable.
These TFC s will be freely tradable amongst the TFC holders except that for a sell/transfer to party other than
creditor, prior consent of PCL would be required.
The State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) have granted
specific exemptions from the applicability for the Prudential Guidelines in respect of the restructuring and
additional facilities regarding PCL. No additional provision shall be made.
The carried over provisions will be reversed by the Company on the basis of the actual recoveries effected
according to the repayment schedule of the TFCs.
The amount will be transferred to investment in TFCs on receiving approval of the High Court.
13. INVESTMENT IN SUBSIDIARIES/ASSOCIATE
Subsidiaries
Guardian Modaraba 191anagement (Pvt.) Limited
Percentage of holding 99.80%
2,495,000 Ordinary shares of Rs.10/- each
Net assets value at June 30, 2001: Rs. 20.69 million				15,793,350	15,793,350
(2000: Rs.20.26 million)
Certificates were with open transfer deeds
General Modaraba Services (Pvt.) Limited
Percentage of holding 51%
637,500 Ordinary shares of Rs. 10/- each
Net assets value as at June 30, 2001: Rs. 0.40 million				5,737,500	5,737,500
(2000: Rs. 0.28 million)
Providence Modaraba Limited
Percentage of holding 99%
990,000 Ordinary shares of Rs.10/- each
Net assets value as at June 30, 2001: Rs. 4.42 million				7,563,597	--
Certificates were with open transfer deeds
Associate
Pakistan Venture Capital Limited
Percentage of holding 30%
3,000,000 Ordinary shares of Rs. 10/- each
Net assets value as at June 30, 2001: Rs 36.91 million				30,000,000	30,000,000
(2000: Rs. 35.55 million)
Market value Rs.8.3 million (2000:Rs.15 million)
				------------------	------------------
				59,094,447	51,530,850
				==========	==========
13.1 The above investments are carried at cost. Had these investments been accounted for using the
Equity Method, the value of investments on the basis of latest available audited accounts for the
year ended June 30, 2001 of the investees and their effects on the profit and loss account would
have been as follows:-
				Value of
				Investment
				under Equity	Effect on
				Method	Profit
				Rupees	Rupees
Guardian Modaraba Management (Pvt.) Limited				23,016,617	7,223,267
General Modaraba Services (Pvt.) Limited				2,844,917	(2,892,583)
Providence Modaraba Limited				6,100,718	(1,462,879)
Pakistan Venture Capital Limited				36,521,678	6,521,678
				------------------	------------------
				68,483,930	9,389,483
				==========	==========
14. LONG TERM LOANS - STAFF
Considered good
Chief Executive				2,254,696	2,415,942
Executive				644,528	722,950
				------------------	------------------
				2,899,224	3,138,892
Less: Current Portion				(260,906)	(239,668)
				------------------	------------------
				2,638,318	2,899,224
				==========	==========
Outstanding for Period:
- Within three years				854,871	784,759
- Exceeding three years				2,044,353	2,354,133
				------------------	------------------
				2,899,224	3,138,892
				==========	==========
The loans under the scheme have been provided to Chief Executive and an Executive of the Company to facilitate
construction or purchase of house, which are repayable over a period of 10 years with service charge @ 5% to 10%
per annum.
Maximum aggregate amount outstanding during the year in respect of Chief Executive and Executive is
Rs. 3,138,892/-(2000 - Rs. 4,430,910/-).
15. LONG TERM RECEIVABLE
Principal due				43,100,000	43,900,000
Provision made
Opening balance				21,950,000	--
Provided during the year				10,375,000	21,950,000
				------------------	------------------
				32,325,000	21,950,000
				------------------	------------------
				10,775,000	21,950,000
				==========	==========
The Company had filed a suit against the lessee in the courts of law and decree of recovery for Rs. 64.412
million was awarded by the Banking Court under the Banking Companies (Recovery of Loans, Advances,
Credits and Finance) Act 1997. The Company also holds additional security by way of equitable mortgage on
factory land and building. As a matter of prudence, provision has also been made.
16. SHORT TERM INVESTMENTS
Shares & Securities			16.1	186,978,087	95,098,144
Federal Investment Bonds			16.2	4,000,000	4,000,000
US Dollar Bonds			16.3	135,798.60	115,911,357
Euro Bonds			16.4	21,775,982	6,093,470
Certificates of Investment				--	10,000,000
Placements and Deposits			16.5	172,455,533	66,662,589
				------------------	------------------
				521,008,202	297,765,560
				==========	==========
16.1 Marketable Securities				COST
		No. of Shares/Certificates		2001	2000
Quoted		2001	2000	Rupees	Rupees
Shares / Certificates
Adamjee Insurance Company Ltd.		328,277	252	18,355,550	15,520
Glaxo Wellcome Pakistan Ltd.		2,000	2,000	80,500	80,500
ICI Pakistan Ltd.		589,250	336,250	5,363,912	5,046,600
Hub Power Company Ltd.		60,000	115,000	1,157,807	1,699,530
KASB Premier Fund Ltd.		50,000	50,000	500,000	500,000
Pakistan State Oil Company Ltd.		5,122	5,122	678,816	894,441
Pakistan Telecommunication Co. Ltd.		1,705,000	5,000	30,604,505	164,259
World Call Payphone Ltd.		1,000,000	--	15,700,000	--
Saadi Cement Ltd.		--	2,500,000	--	12,500,000
Engro Chemicals Ltd.		23,023	32,020	1,579,757	2,526,664
Sui Southern Gas Company Ltd.		6,988	155,939	97,299	2,541,251
Sui Northern Gas Company Ltd.		11,500	--	109,910	--
Sitara Energy Ltd.		15,000	--	339,000	--
Bank A1-Habib Ltd.		13,114	10,929	204,923	204,923
First Imrooz Modaraba		500	500	10,600	10,600
B.R.R International Modaraba		2,000	2,000	10,260	10,260
First General Leasing Modaraba		118,675	--	213,615	--
First Providence Modaraba		320,956	--	2,034,867	--
Dawood Hercules Ltd.		1,200	1,200	92,500	92,500
I.C.P. SEMF Mutual Fund		7,500	7,500	105,575	105,576
Dewan Farooq Motors Ltd.		400,000	400,000	3,884,479	4,000,000
Ibrahim Fibres Ltd.		--	50,000	--	720,000
Dhan Fibre Ltd.		--	100,000	--	1,050,000
Dewan Salman Fibres Ltd.		10,000	--	179,000	--
Nishat Mills Ltd.		50,000	--	865,000	--
D.G. Khan Cement Ltd.		--	60,000	--	480,000
Fauji Fertilizers Ltd.		--	11,500	--	452,525
Tripack Films Ltd.		177,500	--	5,413,750	--
National Refinery Ltd.		--	28,000	--	1,195,600
				------------------	------------------
Balance c/f				87,581,625	34,290,749
Balance b/f				87,581,625	34,290,749
Saudi Pak Leasing Company Ltd.		50	75	5,000,000	7,500,000
Dewan Salman Fibres Ltd.		100	100	9,992,000	9,996,000
National Development Leasing Ltd.		100	100	9,994,000	9,998,000
Pakistan Industrial Leasing Corporation Ltd.		150	100	14,994,000	9,998,000
Sigma Leasing Ltd.		100	100	9,000,000	10,000,000
Paramount Leasing Ltd.		100	100	9,800,000	10,000,000
Atlas Lease Ltd.		75	--	7,498,500	--
Network Leasing Ltd.		100	--	9,998,000	--
Al-Noor Sugar Mills Ltd.		150	--	14,997,000	--
				------------------	------------------
				91,273,500	57,492,000
Provision for diminution in value of investments
Opening balance				(7,284,605)	(9,038,486)
Reversal during the year				4,807,567	1,753,881
				------------------	------------------
				(2,477,038)	(7,284,605)
				------------------	------------------
				176,378,087	84,498,144
Unquoted
Shares
Image Graphics Solution (Private) Limited
Chief Executive - Mr. Tariq Mian		60,000	60,000	600,000	600,000
Term Finance Certificates
Dewan Salman Fibres Ltd.		1	1	10,000,000	10,000,000
				------------------	------------------
				186,978,087	95,098,144
				==========	==========
17. SHORT TERM MORABAHA FINANCES
Secured
These represent funds provided under morabaha arrangement on markup / profit basis. These are secured
by hypothecation of all present and future goods, merchandise, work-in-progress, finished and unfinished goods.
The markup / profit rate is from Re. 0.4384 to Re. 0.5548 per Rs. 1,000/- per day.
				2001	2000
				Rupees	Rupees
18. ADVANCES, DEPOSITS AND PREPAYMENTS
Current Portion of Long Term Loans				260,906	239,668
Advance Income Tax				1,859,724	2,526,573
Deposits				--	41,000
Prepayments				1,593,550	1,550,376
Others				1,013,100	150,000
				------------------	------------------
				4,727,280	4,507,617
				==========	==========
19. OTHER RECEIVABLES
Considered Good
Receivable against Sale of Securities				14,119,120	182,261
Accrued Profit / Return				14,986,977	10,379,954
Income Tax Refundable				1,118,518	990,293
Receivable against Matured Leases				2,192,263	2,161,602
Others				325,354	1,395,299
				------------------	------------------
				32,742,232	15,109,408
				==========	==========
20. CASH AND BANK BALANCES
Cash in Hand
Local Currency				--	19,726
Foreign Currency				510,245	355,098
Cash with Banks
In Deposit Accounts				9,667,664	7,569,845
In Current Accounts				3,568,168	656,889
				------------------	------------------
				13,746,077	8,601,558
				==========	==========
21. RETURN ON DEPOSITS AND INVESTMENTS
Return on Short Term Investments				50,118,261	30,125,915
Profit on PLS Account / Bank Deposit (Net of Zakat)				76,518	75,179
Dividend				1,550,841	3,150,675
				------------------	------------------
				51,745,620	33,351,769
				==========	==========
22. ADMINISTRATION AND OPERATING EXPENSES
Salaries and Benefits (22.1)				10,626,756	9,115,019
Directors Meeting Fees				5,500	3,500
Rent, Rates and Taxes				592,515	520,571
Insurance				949,037	748,693
Legal, Professional and Consultancy				1,627,842	2,231,777
Travelling and Conveyance				780,234	2,108,171
Postage and Telephone				969,506	1,033,581
Utilities				627,105	450,884
Printing and Stationery				754,584	731,464
Vehicles Running and Maintenance				1,386,015	1,212,182
Computerisation				--	208,157
Entertainment				590,780	477,606
Advertisement				91,710	66,640
Repairs and Maintenance				621,229	625,355
Auditors Remuneration (22.2)				272,000	249,500
Share Department				--	250,000
Credit Rating				460,930	304,000
Depreciation				5,595,734	5,053,056
Fees and Subscription				502,462	605,987
Commission and Brokerage				331,559	357,286
Donation (22.3)				77,786	118,550
Others				--	113,578
				------------------	------------------
				26,863,283	26,585,556
				==========	==========
22.1 Salaries and benefits include Rs. 1,215,424 (2000: Rs. 1,142,485/-) in respect of retirement benefits.
22.2 Auditors Remuneration
Statutory Audit Fee				100,000	100,000
Tax and Other Consultancy				122,000	123,000
Other Services				40,000	20,000
Out of Pocket				10,000	6,500
				------------------	------------------
				272,000	249,500
				==========	==========
None of the directors or their spouse had any interest in the donees fund.
23. FINANCIAL CHARGES
Mark-up / Return on
Redeemable Capital				5,473,350	4,836,425
Long Term Loans				36,777,379	45,334,061
Long Term Certificates of Investment				3,458,702	2,841,970
Short Term Borrowings				87,311,074	52,320,463
Short Term Certificates of Investment				24,441,918	10,728,745
Financial Charges on Lease Liability				--	9,565
Forward Cover Fee				13,801,593	13,390,894
Documentation, Project Examination, Guarantee
Commission and Bank Charges				4,056,911	3,463,175
				------------------	------------------
				175,320,927	132,925,298
				==========	==========
24. TAXATION
The Company has provided for deferred taxation in compliance with circular No. 16 of the Securities and Exchange
Commission of Pakistan to ensure that the liability arising on June 30, 2003 has been fully provided upto that year. The
deferred taxation, arising out of timing difference between accounting and income tax revenue or charges computed
under the liability method, is estimated at Rs. 59.2 million (2000 - Rs. 49.493 million). Part provision of Rs. 49.20 million
has been made as of these accounts.
25. EARNING PER SHARE
There is no effect of dilution on the earning per share of the Company which is based on:
				2001	2000
Profit Before Taxation			Rs.	47,316,228	41,658,305
Profit After Taxation			Rs.	31,511,749	31,103,850
Weighted Average Number of Ordinary Shares				25,000,000	25,000,000
Earning Per Share - Pre-Tax			Rs.	1.89	1.67
Earning Per Share - Post-Tax			Rs.	1.26	1.24
26. REMUNERATION TO DIRECTORS AND EXECUTIVES
			2001			2000
		Chief	Director	Executives	Chief	Director	Executives
		Executive			Executive
Managerial Remuneration		1,277,424	619,356	3,284,096	838,710	619,356	2,804,259
Housing and Utilities		702,576	340,644	1,513,486	461,291	340,644	1,225,143
Bonus		--	80,000	378,811	100,000	80,000	280,874
Gratuity		356,673	50,906	283,185	171,603	187,073	388,956
Provident Fund		127,740	61,932	296,624	77,424	61,932	255,497
		------------------	------------------	------------------	------------------	------------------	------------------
Rupees		2,464,413	1,152,838	5,756,202	1,649,028	1,289,005	4,954,729
		==========	==========	==========	==========	==========	==========
Number of Persons		1	1	16	1	1	10
26.1 The Chief Executive, Director and Executives are also provided with free use of company cars, medical
insurance cover and travelling allowance. The monetary value of these are Rs.2,157,259/-(2000-Rs. 1,723,646/-)
approximately.
				2001	2000
				Rupees	Rupees
27. TRANSACTIONS WITH ASSOCIATED COMPANIES
Share of Common Expenses				1,135,613	259,089
				==========	==========
28. CREDIT RISK AND CONCENTRATIONS OF SIGNIFICANT CREDIT RISK
Credit risk is the risk faced when one party to a financial instrument fails to discharge its obligation and cause the other party
to incur a financial loss.
The Company follows two sets of guidelines, an operating policy duly approved by the Board of Directors and the Prudential
Regulations for NBFIs issued by the Securities & Exchange Commission of Pakistan. The operating policy defines the extent
of exposure with reference to a particular sector or group of leases. The leases are classified on the basis of Prudential Regulations
guidelines.
The Company believes in maintaining a balance between profitability and portfolio riskiness. Diversification of lease portfolio
is the focal point of Company s exposure policy. Extra care is taken to ensure that per party and per sector exposures remain
within limits prescribed by the operating policy and Prudential Regulations.
Details of the industry / sector analysis of lease portfolio is given below:
Segment by Class of Business				Rupees	%
Textile Composite				219,373,028	15.99
Steel, Engineering & Automobile				179,750,834	13.10
Cement				160,521,837	11.70
Sugar and Allied				151,628,170	11.05
Transport & Communication				142,488,188	10.38
Food, Tobacco and Beverages				100,653,579	7.34
Chemicals, Fertilizers and Pharmaceuticals				58,783,603	4.28
Health Care				50,106,301	3.65
Textile Finishing				49,313,813	3.59
Energy, Oil and Gas				48,171,204	3.51
Power Generation				14,178,539	1.03
Electrical Goods				11,235,701	0.82
Financial				4,928,746	0.36
Miscellaneous				181,043,567	13.20
				------------------	------------------
				1,372,177,110	100.00
				==========	==========
29. FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying value of all the financial instruments reflected in the financial statements approximates to their fair values.
30. INTEREST RATE RISK MANAGEMENT
Interest rate risk arises from the possibility when changes in interest rate affect the value of financial instruments. The
Company is exposed to interest rate risk as a result of mismatches or gaps in the amounts of assets and liabilities that mature
or reprice in a given period. The Company manages this risk by matching the repricing of assets and liabilities.
The Company s exposure to interest rate risk on its financial assets and liabilities are summarized as follows:-
					Not Exposed
		Less than	One Month	Over	to Interest
ASSETS		One Month	to One Year	One Year	Rate Risk	Total
Fixed Capital Expenditure		--	--	--	25,298,747	25,298,747
Net Investment in Lease Finance		37,464,004	554,662,049	557,338,887	222,712,170	1,372,177,110
Long Term Receivable		--	--	10,775,000	--	10,775,000
Long Term Loans		20,855	240,051	2,638,318	--	2,899,224
Long Term Deposits		--	--	--	40,200	402,000
Investment in Subsidiaries / Associate		--	--	--	59,094,447	59,094,447
Short Term Investments		57,455,530	463,552,672	--	--	521,008,202
Short Term Morabaha Finance		--	8,608,604	--	--	8,608,604
Advances Against Lease Commitment		--	51,126,889	--	--	51,126,889
Advances, Deposits and Prepayments		--	--	--	4,466,374	4,466,374
Other Receivables		--	--	--	32,742,232	32,742,232
Cash and Bank Balances		9,667,664	--	--	4,078,413	13,746,077
		------------------	------------------	------------------	------------------	------------------
Rupees		104,608,053	1,078,190,265	570,752,205	348,794,383	2,102,344,906
		==========	==========	==========	==========	==========
CAPITAL AND LIABILITIES
Capital and Reserves		--	--	--	313,240,379	313,240,379
Provision for Lease Losses		--	--	--	44,675,000	44,675,000
Deferred Liabilities		--	--	--	51,247,235	51,247,235
Redeemable Capital		--	27,242,141	49,524,541	--	76,766,682
Long Term Loans		--	31,270,103	240,265,340	--	271,535,443
Certificates of Investment		71,450,000	157,205,000	27,145,000	--	255,800,000
Lease Deposits		--	--	--	222,712,176	222,712,176
Long Term Deposits		--	--	--	305,900	305.90
Short Term Borrowings		50,000,000	684,016,863	--	--	734,016,863
Accrued Expenses and Other Liabilities		--	--	--	103,045,228	103,045,228
Taxation		--	--	--	4,000,000	4,000,000
Proposed Dividend		--	25,000,000	--	--	25,000,000
		------------------	------------------	------------------	------------------	------------------
Rupees		121,450,000	924,734,107	316,934,881	739,225,918	2,102,344,906
		==========	==========	==========	==========	==========
On-Balance Sheet Gap Rupees		(16,841,947)	153,456.16	253,817,324	(390,431535)	--
		------------------	------------------	------------------	------------------	------------------
Total Interest Rate Sensitivity Gap		(16,841,947)	136,614,211	390,431,535	--	--
		==========	==========	==========	==========	==========
The effective average interest rate/mark-up for each of the monetary financial instrument is as follows.
				2001
				Effective Average Interest
				Rate / Mark-up
				%
Assets
Net Investment in Lease Finance				20.50
Long Term Loans				5 - 10
Short Term Investments				18.29
Short Term Morabaha Finances				18.79
Cash & Bank Balances				5.27
Liabilities
Redeemable Capital				16.92
Long Term Loans				16.83
Certificates of Investment				16.04
Short Term Borrowings				16.85
31. NUMBER OF EMPLOYEES
Total number of permanent employees as at year end are 22 (2000 - 22)
32. GENERAL
Figures have been rounded off nearest to Rupee.
Corresponding figures have been re-arranged wherever necessary for the purpose of comparison.
	Rafique Dawood				Abdul Latif Uqaili
	Chairman & Chief Executive				Director
STATEMENT & REPORT
		2001	2001	2001	2000	2000
		General	Guardian	Providence	General	Guardian
Statement and Report under Section 237 of		Modaraba	Modaraba	Modaraba	Modaraba	Modaraba
Companies Ordinance, 1984		Services	Management	Limited	Services	Management
		(Pvt.) Ltd	(Pvt.) Ltd		(Pvt.) Ltd	(Pvt.) Ltd
STATEMENT UNDER SECTION (1) (E)
a. Extent of the interest of Dawood Leasing
Company Limited (the holding company) in the
equity of its subsidiaries as at the end of the last
of the financial year of the subsidiaries.		51.00%	99.80%	99.00%	51.00%	99.80%
b. The net aggregate amount of profits less losses
of the subsidiary companies so far as these
concern members of the holding company and
has not been dealt with in the accounts of the
holding company for the year ended June 30,
2001 are:
i) for the financial year of the subsidiaries		(713,410)	5,619,006	(1,832,779)	(967,563)	3,176,711
ii0 for the previous financial year of the subsidiary
since it became the Holding Company s subsidiary.		(3,951,588)	1,834,262	--	(2,984,025)	(1,342,449)
c. The net aggregate amount of profit less losses of
the subsidiary companies so far as these concern
member of the holding company and have been
dealt with in the account of the holding company
for the year ended June 30, 2001
i) for the financial year of the subsidiaries		N/A	N/A	N/A	N/A	N/A
ii) for the previous financial year of the subsidiary
since it became the holding Company s subsidiary.		N/A	N/A	N/A	N/A	N/A
STATEMENT UNDER SECTION (1) (f)		N/A	N/A	N/A	N/A	N/A
STATEMENT UNDER SECTION (1) (g)		N/A	N/A	N/A	N/A	N/A
	Rafique Dawood				Abdul Latif Uqaili
	Chairman & Chief Executive				Director
PATTERN OF SHARE HOLDING AS AT JUNE 30, 2001
No. of		Share Holding		Shares
Shareholders	From		To	Held
28	1	--	100	2,100
1571	101	--	500	780,500
178	501	--	1000	164,400
192	1001	--	5000	510,700
44	5001	--	10000	364,100
16	10001	--	15000	201,100
10	15001	--	20000	199,100
8	20001	--	25000	198,000
6	25001	--	30000	177,900
2	30001	--	35000	65,500
1	40001	--	45000	42,500
10	45001	--	50000	494,600
2	50001	--	55000	107,500
3	55001	--	65000	181,000
1	65001	--	75000	371,100
14	75001	--	100000	1,279,700
5	100001	--	105000	435,800
2	105001	--	125000	240,500
1	125001	--	130000	145,000
1	140001	--	145000	250,000
3	145001	--	250000	810,000
3	305001	--	390000	1,098,600
1	390001	--	395000	426,000
3	405001	--	500000	972,000
1	500001	--	505000	502,500
1	505001	--	545000	542,800
1	545001	--	955000	950,100
1	955001	--	985000	983,200
1	985001	--	1000000	1,000,000
3	1000001	--	1510000	3,771,300
3	1510001	--	4215000	7,732,400
------------------				------------------
2,116				25,000,000
==========				==========
Categories of Shareholders
PARTICULARS			Number of	Shares Held	Percentage
			Shareholders		%
Individuals			2035	7,910,300	22.88
Insurance Companies			5	4,395,500	12.71
Joint-Stock Companies			41	11,419,700	33.04
Financial Institutions			15	7,958,200	23.02
Associated Companies			1	71,100	0.21
Modarabas			7	96,900	0.28
Ft)reign Investors			1	983,200	0.84
Investment Companies			7	1,709,200	4.94
Modarabas Management Companies			1	23,000	0.07
Others			3	2,000	0.01
			------------------	------------------	------------------
			2116	34,567,100	100.00
			==========	==========	==========
CONSOLIDATED ACCOUNTS OF
DAWOOD LEASING COMPANY LIMITED
AND
ITS SUBSIDIARIES
AUDITORS REPORT TO THE MEMBERS
We have examined the annexed consolidated financial statements comprising consolidated Balance Sheet of DAWOOD
LEASING COMPANY LIMITED and its subsidiary companies as at June 30, 2001 and the related consolidated Profit and
Loss Account and consolidated Cash Flow Statement and consolidated Changes in Equity together with the notes forming
part thereof, for the year ended June 30, 2001. We have also expressed separate opinion on the financial statements of
DAWOOD LEASING COMPANY LIMITED and its subsidiary Company General Modaraba Services (Private) Limited.
Audit of its other subsidiary Companies Guardian Modaraba Management (Private) Limited and Providence Modaraba
Limited was done by other firms of Chartered Accountants for the year ended June 30, 2001 whose reports have been
furnished to us and our opinion in so far as it relates to the amounts included for such company, is based solely on the report
of such other auditors. These financial statements are the responsibility of the Holding Company s management. Our
responsibility is to express an opinion on these financial statements based on our examination.
Our examination was made in accordance 'with International Standards on Auditing and accordingly included such tests of
accounting records and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the consolidated financial statements examined by us present fairly the financial position of DAWOOD
LEASING COMPANY LIMITED and its subsidiary companies as at June 30, 2001 and the results of their operations for
the year then ended.
Dated: November 28, 2001					M. Yousuf Adil Saleem & Co.
Karachi:					Chartered Accountants
CONSOLIDATED BALANCE SHEET AS AT JUNE 30, 2001
				2001	2000
			Note	Rupees	Rupees
SHARE CAPITAL AND RESERVES
Authorized
50,000,000 Ordinary Shares
of Rs. 10/- each				500,000,000	500,000,000
				==========	==========
Issued, Subscribed and Paid up
25,000,000 Ordinary Shares of
Rs. 10/- each. Fully Paid in Cash				250,000,000	250,000,000
Statutory Reserve				40,148,077	33,845,727
General Reserve				22,500,000	22,500,000
Unappropriated profit				10,825,573	6,757,205
				------------------	------------------
				323,473,650	313,102,932
MINORITY INTEREST				1,121,186	1,750,804
LONG TERM LIABILITIES
Redeemable Capital				49,524,541	5,218,349
Long Term Loans				240,265,340	297,859,954
Long Term Deposits				305,900	--
Lease Deposits				194,431,475	112,511,804
Certificates of Investment				27,145,000	36,100,000
				------------------	------------------
				511,672,256	451,690,107
DEFERRED LIABILITIES
Taxation				49,200,000	37,200,000
Staff Gratuity				2,047,235	1,392,973
				------------------	------------------
				51,247,235	38,592,973
CURRENT LIABILITIES
Short Term Borrowings			3	736,016,863	497,966,052
Certificates of Investment				228,655,000	66,000,000
Current Portion of Long Term Liabilities				86,792,945	95,293,682
Accrued and Other Liabilities			4	104,955,148	48,368,053
Taxation				4,502,551	2,782,133
Proposed Dividend				25,000,000	25,000,000
				------------------	------------------
				1,185,922,507	735,409,920
CONTINGENCIES AND COMMITMENTS			5	------------------	------------------
				2,073,436,834	1,540,546,736
				==========	==========
The annexed notes from 1 to 20 form all integral part of these financial statements.
FIXED CAPITAL EXPENDITURE			6	25,807,721	27,073,857
GOODWILL ON CONSOLIDATION			7	2,903,591	4,056,985
NET INVESTMENT IN LEASE FINANCE
Minimum Lease Payment Receivables				1,581,130,526	1,338,939,163
Residual Value of Leased Assets				195,578,249	159,531,402
				------------------	------------------
				1,776,708,775	1,498,470,565
Unearned Finance Income				(404,531,665)	(380,678,513)
				------------------	------------------
Net Investment in Lease Finance				1,372,177,110	1,117,792,052
Provision for Lease Losses				(44,675,000)	(27,050,000)
				------------------	------------------
				1,327,502,110	1,090,742,052
Current Portion of Net Investment in Lease Finance				(592,126,053)	(429,288,511)
				------------------	------------------
				735,376,057	661,453,541
INVESTMENT IN ASSOCIATES			8	70,163,597	55,477,605
LONG TERM LOANS				2,638,318	2,899,224
LONG TERM DEPOSITS				402,000	300,000
LONG TERM RECEIVABLE				10,775,000	21,950,000
CURRENT ASSETS
Current Portion of Net Investment in Lease Finance				592,126,053	429,288,511
Short Term Investments			9	521,483,479	298,201,611
Short Term Morabaha Finances				8,608,604	7,000,000
Advances Against Lease Commitment				51,126,888	2,850,000
Advances, Deposits and Prepayments			10	5,076,560	4,774,614
Other Receivables			11	32,993,983	16,372,771
Cash and Bank Balances			12	13,954,983	8,848,018
				------------------	------------------
				1,225,370,550	767,335,525
				------------------	------------------
				2,073,436,834	1,540,546,736
				==========	==========
	Rafique Dawood				Abdul Latif Uqaili
	Chairman & Chief Executive				Director
CONSOLIDNFED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED JUNE 30, 2001
				2001	2000
			Note	Rupees	Rupees
Income
Lease Income				184,582,954	171,044,261
Return on Deposits and Investments			13	53,276,924	30,380,052
Management Fee				251,751	1,250,789
Gain on Sale of Securities				9,287,244	9,290,096
Exchange Gain				23,947,808	--
Other Income				2,605,175	1,544,159
				------------------	------------------
				273,951,856	213,509,357
Expenditure
Administration and Operating Expenses			14	28,615,393	27,183,070
Financial Charges			15	176,231,459	133,160,014
				------------------	------------------
				(204,846,852)	(160,343,084)
				------------------	------------------
				69,105,004	53,166,273
Other Charges / Provision
Negative Goodwill recognized as Income from Subsidiary/Associate				896,726	526,826
Amortization of Goodwill on Acquisition				(1,153,394)	(1,153,394)
Provision for Lease Losses				(28,000,000)	(15,000,000)
Provision for Doubtful Debts				(1,297,941)	--
Reversal for Diminution in Value of Investments				5,425,744	1,733,068
				------------------	------------------
				(24,128,865)	(13,893,500)
				------------------	------------------
				44,976,139	39,272,773
Share of Profit from Associates			16	6,862,941	3,642,103
				------------------	------------------
Profit Before Taxation				51,839,080	42,914,876
Provision for Taxation
Current				4,219,410	2,684,500
Prior				(187,163)	(304,934)
Deferred				12,000,000	8,200,000
				------------------	------------------
				(16,032,247)	(10,579,566)
				------------------	------------------
Profit After Taxation				35,806,833	32,335,310
Minority Interest				707,462	923,654
				------------------	------------------
			17	36,514,295	33,258,964
Unappropriated Profit Brought Forward				5,613,628	4,719,011
				------------------	------------------
Profit Available for Appropriation				42,127,923	37,977,975
Appropriations
Transferred to Statutory Reserve				6,302,350	6,220,770
Proposed Cash Dividend Rs. 1/- per share (2000 - Rs. 1/- per share)				25,000,000	25,000,000
				------------------	------------------
				31,302,350	31,220,770
				------------------	------------------
Unappropriated Profit Carried Forward				10,825,573	6,757,205
				==========	==========
Earning Per Share			18
Pre-Tax				2.07	1.72
Post-Tax				1.43	1.29
The annexed notes from 1 to 20 form an integral part of these financial statements
	Rafique Dawood				Abdul Latif Uqaili
	Chairman & Chief Executive				Director
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED JUNE 30, 2001
				2001	2000
A. CASH FLOW FROM OPERATING ACTIVITIES				Rupees	Rupees
Profit After Taxation				35,806,833	32,335,310
Adjustments:
Depreciation				5,758,640	5,220,544
Gain on Sale of Investments				(9,287,244)	(9,290,093)
Negative Goodwill				(896,726)	(526,826)
Amortization of Goodwill on Acquisition				1,153,394	1,153,394
S hare of Profit from Associated Undertaking				(6,862,941)	(3,642,103)
Financial Charges				176,231,459	133,160,014
Loss / (Gain) on Sale of Assets				56,024	(89,400)
Provision for Gratuity				706,463	747,632
Provision for Lease Losses / Doubtful Debts				29,297,941	15,000,000
Reversal for Diminution in Value of Investments				(5,425,749)	(1,733,068)
Provision for Deferred Taxation				12,000,000	8,200,000
Provision for Taxation				3,804,479	2,379,566
				------------------	------------------
				206,535,745	150,559,660
				------------------	------------------
				242,342,578	182,894,970
Changes in Operating Assets and Liabilities
(Increase)/Decrease in Operating Assets
Advances, Deposits and Prepayments				(1,104,574)	276,757
Other Receivables				(16,505,560)	10,889,623
Net Investment in Lease Finance/Receivables				(253,585,058)	(125,312,170)
Long Term Loans				239,668	(1,207,982)
Advances Against Lease Commitment				(48,276,889)	6,805,000
Short Term Morabaha Finances				(1,608,604)	96,051,816
				------------------	------------------
				(320,841,017)	(12,451,956)
				------------------	------------------
				(78,498,439)	170,443,014
(Increase)/Decrease in Operating Liabilities
Long Term Deposits				305,900	--
Accrued and Other Liabilities				52,724,490	(10,266,292)
Lease Deposits				86,658,495	13,587,372
				------------------	------------------
				61,190,446	173,764,094
Financial Charges Paid				(173,529,540)	116,382,987)
Gratuity Paid				(52,201)	(212,691)
Tax Paid				(2,076,229)	(2,435,617)
				------------------	------------------
Net Cash (used in) / from Operating Activities				(114,467,524)	54,732,799
				------------------	------------------
B. CASH FLOW FROM FINANCING ACTIVITIES
Redeemable Capital Obtained				75,000,000	--
Redemption of Redeemable Capital				(12,508,307)	(107,731,287)
Long Term Loans - Net				(89,019,676)	(21,665,065)