| Capital Assets Leasing Corporation Limited |
|
|
|
|
|
|
|
| Annual
Report 2001 |
|
|
|
| CONTENTS |
|
|
| Corporate
Information |
|
| Notice of Meeting |
|
| Directors'
Report |
|
| Pattern of Shareholding |
|
| Auditors'
Report |
|
| Balance Sheet |
|
|
| Profit & Loss Account |
|
| Cash Flow Statement |
|
| Statement
of Changes in Equity |
|
| Notes
to the Accounts |
|
|
|
| CORPORATE
INFORMATION |
|
|
| Board
of Directors |
|
| Mr.
Salman Qureshi (Chairman) |
|
| Mr.
Nisar A. Memon |
|
| Mr.
Mohammad Kalim |
|
| Mr.
Ilyas Mohsin |
|
| Mr.
Anwar Shafi |
|
| Mr.
Bashir Hussain Shaikh |
|
|
| Chief
Executive Officer |
|
| Mr.
Bashir Hussain Shaikh |
|
|
| Company
Secretary |
|
| Mr.
Rizwan Akhtar |
|
|
| Auditors |
|
| M/s
Ebrahim & Company |
|
| Chartered
Accountants |
|
| 2nd
Floor, Block "C" |
|
| Lakson
Square Building |
|
| Sarwar
Shaheed Road, Karachi. |
|
|
| Registrars
& Share Transfer Office |
|
| M/s
Corplink (Pvt) Limited |
|
| Wings
Arcade, 1-K (Commercial) |
|
| Model
Town, Lahore. |
|
| Tel.
# 5839182-5887262, Fax: 5869037 |
|
|
| Legal
Advisors |
|
| M/s
Mohsin Tayebally & Co., Advocates |
|
| M/s
Rizvi, Isa & Co., Advocates |
|
|
| Main
Bankers |
|
| ABN
Amro Bank |
|
| Allied
Bank of Pakistan Limited |
|
| Askari
Commercial Bank Limited |
|
| First
Women Bank Limited |
|
| Muslim
Commercial Bank Limited |
|
| National
Bank of Pakistan Limited |
|
| PICIC
Commercial Bank Limited |
|
| Platinum
.Commercial Bank Limited |
|
| Prime
Commercial Bank Limited |
|
| Soneri
Bank Limited |
|
| Union
Bank Limited |
|
|
| Registered
Office |
|
| 10/1
l-B, 3rd Floor, LDA Flats |
|
| Lawrence
Road, Lahore. |
|
| Telephone
# 6311604-5 |
|
| Fax # 6370017 |
|
| Email:
calcorp@nexlinx.net.pk |
|
|
| Branch Office |
|
| 43/10/G,
Block-VI |
|
| Dr.
Mehmood Hussain Road, |
|
| PECHS,
Karachi. |
|
| Telephone
# 4544115-6 |
|
| Fax # 4523822 |
|
| Email:
calcorp@cyber.net.pk |
|
|
|
| NOTICE
OF 9TH ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the ninth (9th) Annual General Meeting of the
shareholders of |
|
| CAPITAL
ASSETS LEASING CORPORATION LIMITED will been held at the Registered |
|
| Office
of the Company located at 10/1 l-B, 3rd Floor, LDA Flats, Lawrence Road,
Lahore on |
|
| Monday,
31st December 2001 at 11:00 a.m. to transact the following business: |
|
|
| 1.
To confirm the minutes of eighth (8th) Annual General Meeting of the
shareholders |
|
| held
on December 15, 2000. |
|
|
| 2.
To receive, consider and adopt the Audited Accounts of the Company for the
year |
|
| ended
June 30, 2001 together with the Directors' and Auditors' Reports thereon. |
|
|
| 3.
To approve, as recommended by the Directors in their meeting held on
Thursday, |
|
| December
06, 2001, the final Bonus Shares ~ 17.50% (i.e. seventeen and a half |
|
| shares
for every one hundred shares held) of the paid up capital for the year ended |
|
| June 30, 2001 . |
|
|
| 4.
To appoint Auditors of the Company and to fix their remuneration. The present |
|
| Auditors
M/s Ebrahim & Company Chartered Accountants, retire and being eligible |
|
| offer
themselves for reappointment. |
|
|
| Special
Business |
|
| 1.
To approve the increase in Authorized Capital of the Company from Rs. 100
million |
|
| to
Rs. 200 million as recommended by the Directors in their meeting held on |
|
| December
06, 2001. |
|
|
| 2. To approve the remuneration of Chief
Executive. |
|
|
| To
transact any other business with the permission of the Chair. |
|
|
|
BY ORDER OF THE BOARD |
|
|
|
|
| Lahore |
|
(Rizwan Akhtar) |
|
| December
09, 2001 |
|
Company Secretary |
|
|
| Notes: |
|
| 1.
The Share Transfer Books of the Company will remain closed from 21st December |
|
| 2001
to 31st December, 2001 (both days inclusive). |
|
|
| 2.
A member eligible to attend and vote at this Meeting is entitled to appoint
another |
|
| member
as his/her proxy to attend and vote instead of him/her. A proxy must be a |
|
| member
of the company. Proxies in order to be effective, must be received at the |
|
| Registered
Office of the Company not less than 48 hours before the time of the |
|
| Meeting. |
|
|
| 3.
Any individual/beneficial owner of Central Depository Company (CDC), entitled
to |
|
| vote
at this meeting must bring his/her National Identity Card to prove his/her |
|
| indentity.
In case of proxy, must enclose an attested copy of his/her National |
|
| Identity
Card. Representatives of corporate members should bring the usual |
|
| documents
required for such purpose. |
|
|
| 4. A Statement under Section 160 of Companies
Ordinance 1984 pertaining to the |
|
| Special
Business is being sent to the shareholders along with this notice. |
|
|
| 5.
Members are requested to notify the changes of address, if any, to the
Company's |
|
| Share
Registrars M/s Corplink (Pvt.) Ltd. Wings Arcade, 1-K (Commercial) Model |
|
| Town
Lahore, immediately. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| We
are pleased to present before you the 9th annual report along with the
audited financial statements for |
|
| the
year 2000-2001. |
|
|
| Financial
Results |
|
| Financial
Results: |
|
(Rs. In '000) |
|
| Gross revenue |
|
42,700 |
|
| Total
expenses |
|
38,037 |
|
|
---------- |
|
| Operating
profit for the year |
|
4,663 |
|
| Provisions |
|
| For
potential losses (Lease) |
|
(289) |
|
| For
potential losses (Morabaha / short-term) |
|
(1,079) |
|
| For
potential losses (Other receivables) |
|
1,485 |
|
| For
taxation (including Deferred Taxation) |
|
2,312 |
|
|
---------- |
|
| Profit
after taxation |
|
2,429 |
|
|
---------- |
|
| Un-appropriated
profit brought forward |
|
2,234 |
|
| Profit
available for appropriation |
|
24,202 |
|
|
---------- |
|
| Appropriations |
|
26,436 |
|
| Transfer
to statutory reserves |
|
447 |
|
| Proposed
Bonus Shares (6 17.50%) |
|
11,592 |
|
|
---------- |
|
|
12,039 |
|
|
---------- |
|
| Un-appropriated
profit carried forward |
|
14,397 |
|
|
---------- |
|
| Bonus
Share Issue |
|
| The
directors are pleased to recommend a bonus issue @ 17.50%, i.e. seventeen and
a half shares for |
|
| every
one hundred shares held. This would contribute Rs. 11.592 M towards the Paid
up Capital, thus the |
|
| paid
up capital of your Company would increase from existing Rs.66.24 M to Rs.
77.831 M. The decrease |
|
| in
earning per share due to bonus issue will be compensated by increase in the
total number of shares held |
|
| by
the shareholder(s). |
|
|
| Review
of Operations |
|
| The
year was a difficult year for Pakistani businesses in general and for Leasing
industry in particular. |
|
| Multinationals
have been hit by global economic downturn and plummeting profits. They are
not in the |
|
| expansion
phase, they are facing a deep recession. Local business concerns also face a
similar scenario. IT |
|
| bubble
has shrunk if not burst. IT educational institutes and software houses are
facing the crunch. |
|
| Inflation
was higher this year due to an increase in the prices of fuel, transport
& communication and |
|
| medicine.
Government's efforts to increase tax revenues (tax survey, self-assessment
scheme, extension of |
|
| GST,
etc.) resulted in the lowering of purchasing power. Hence, Pakistan's
aggregate growth was only 2.6 |
|
| per
cent this year against a target of 5 per cent. As a result, our business
suffered a slow-down too. |
|
|
| All
the above factors, of course, had an impact on the business operations of
your Company, with the |
|
| result
that we could not achieve the growth rate as targeted. However, your Company,
by the grace of |
|
| Allah
and with the commitment of its managers and staff, has maintained a steady
growth rate. Gross |
|
| Lease
disbursements were Rs.103.314 M. Net yield on leases was 21.83%. Income from
leasing |
|
| operations
grew from Rs.28.8 M last year to Rs. 37.3M an increase of about 30%.
Significant increase in |
|
| other
income was achieved - Rs. 0.8 M to Rs. 5 M - an increase of 525%. The Balance
Sheet size has |
|
| grown
to Rs.264.9 M from Rs.259.1 M last year - a modes[increase of 2.2 %. |
|
|
| Substantial
reversal of provisions is a proof of our continued effort towards recoveries.
Profit before tax |
|
| registered
a rise of about 59.5%; however, due to deferred taxation, the net profit
after tax became Rs.2.2 |
|
| M
- slightly lower than that of last year. |
|
|
| Our
working strategy remained centered around writing leases to existing lessees
and to new clients with |
|
| established
market reputation. The asset-wise break-up of leases written this year is as
follows: |
|
|
| Plant
& Machinery |
|
22% |
|
| Vehicles |
|
45% |
|
| Others |
|
33% |
|
|
| As
in the past, your Company continues to support Education Sector, Small
Businesses, and high net |
|
| worth
individuals. This policy, together with a rigorous lease appraisal procedure
ensures the requisite |
|
| asset
strength and minimal lease provisions. A sector-wise break-up of our lease
portfolio is shown below: |
|
|
| Sectors |
|
%age |
|
| Educational
Institutions |
|
31.53% |
|
| . Trading |
|
7.20% |
|
| Electric
& Electric Goods |
|
7.05% |
|
| Food
& Tobacco |
|
5.78% |
|
| Information
Technology |
|
5.31% |
|
| Health Care |
|
5.17% |
|
| Steel
& Engineering |
|
3.67% |
|
| Transport
& Communication |
|
3.59% |
|
| Chemicals,
Fertilizers & Pharmaceuticals |
|
3.38% |
|
| Textiles |
|
2.94% |
|
| Advertisement |
|
2.25% |
|
| Security
Services |
|
2.21% |
|
| Insurance
Companies |
|
2.02% |
|
| Banaspati
& Allied |
|
1.53% |
|
| Hotels |
|
1.04% |
|
| Printing
& Packaging |
|
0.71% |
|
| Paper
& Boards |
|
0.68% |
|
| Construction |
|
0.64% |
|
| Energy
Oils & Gas |
|
0.09% |
|
| Glass
& Ceramics |
|
0.09% |
|
| Others |
|
13.12% |
|
|
---------- |
|
|
100.00% |
|
|
========== |
|
| Overall,
the operating results of your Company reflect the prudent approach of the
management to carry |
|
| out
leasing and financing business as per the policy in designated niches, and
simultaneously emphasizing |
|
| on
timely recoveries to safeguard the interest of our Shareholders. |
|
|
| Funds
Mobilization |
|
| The
quantum of high-cost short-term funds has been reduced this year from Rs.82.5
M to Rs.65.9 M to |
|
| improve
the profitability. We are negotiating availability of medium term funds at
affordable rates to |
|
| reduce
the mismatch in lease terms and borrowed funds terms. Moreover, the Company
has successfully |
|
| issued
COI's worth Rs. 10.6 M this year. |
|
|
| The
lease rentals continue to become a source of funds to write new leases. |
|
|
| Credit Rating |
|
| JCR-VIS
Credit Rating Company assigned the following rating to the Company: |
|
|
| Medium
to Long Term |
|
BBB- |
|
| Short Term |
|
A3 |
|
|
| These
are satisfactory ratings and qualify the entity / issue as 'investment
grade'. Our entity rating |
|
| continues
to be the 'investment grade' though with a negative outlook which is maily
due to the Paid-up |
|
| Capital issue. |
|
|
| Paid
Up Capital |
|
| As
per requirements of Leasing Companies (Establishment and Regulation) Rules
2000 issued by SECP, |
|
| the
minimum paid up capital is required to be raised to Rs. 200 M. We are pleased
to inform you that the |
|
| Securities
and Exchange Commission of Pakistan has allowed us to meet the requirement by
September |
|
| 30,
2002 by issuing right shares at a discount. The management is in constant
contact with SECP and is |
|
| endeavoring
to resolve the issue involved in this regard. |
|
|
| Issues
Confronting the Leasing Sector |
|
| During
the year, the Leasing Sector vigorously pursued two important tax issues
namely restoration of |
|
| initial
depreciation/first year allowance and tax demands raised on lease key
money/security deposit by the |
|
| tax
authorities. Both these issues stand resolved by the CBR. The matter of tax
on lease key money had |
|
| been
settled due to favorable decision of the Commissioner of Income Tax (Appeals)
as our appeals had |
|
| been
accepted. Your Company played a key role in resolution of issues confronting
leasing sector. |
|
|
| Moreover,
in the draft Income Tax Ordinance 2001, tax laws relating to leasing sector
were omitted |
|
| entirely.
A comprehensive representation comprising each and every omission has been
made to CBR by |
|
| LAP
for incorporating all existing tax laws relating to leasing in the new
Ordinance. |
|
|
| Special Audit |
|
| On
directives of Securities & Exchange Commission of Pakistan, M/s S.M.
Masood & Co., Chartered |
|
| Accountants,
Lahore, undertook a Special Audit of your Company. We are pleased to state
that their |
|
| report
was Satisfactory, and the SECP has acknowledged the same to the Company. |
|
|
| Future
Outlook |
|
| After
the September 11 attacks on the WTC, New York and Pentagon, Washington D.C.,
world has |
|
| become
a new place. The decision .taken by our government was a difficult one, but
time proved the |
|
| veracity
of the decision, and Alhamdollilah, Pakistan came out of the crisis
successfully. Thought the |
|
| expectations
of economic gains as a result of joining the coalition against terrorism were
not met to the |
|
| extent
that was envisaged by the government, yet Pakistan is better off relatively
in terms of now having a |
|
| stronger
rupee, reserves more than 4 billion dollars, promises of EU quota
relaxations, and possible |
|
| similar
treatment form USA. |
|
|
| United
Nations, coalition partners and other groups are discussing the setting up of
broad-based govt. and |
|
| rebuilding
of Afghanistan, which is at the center of the crisis. This is not an easy
task, as diverse ethnic |
|
| groups
and their international backers are involved. Yet it is hoped that the
process of restructuring will |
|
| meet
some measure of success in not too distant a future. This will have positive
economic benefits for |
|
| Pakistan
- especially in the area of infrastructure building e.g. cement, electrical
generation & distribution, |
|
| and
other manufacturing and consumer goods including food items, pharmaceuticals
etc. It is hoped that |
|
| leasing
industry will derive due benefits due to this additional demand. However, one
possible specter of |
|
| smuggling
as a result of Afghan Transit Trade might wipe out the benefits. The
government should be |
|
| aware
of such pitfalls while devising future policies. |
|
|
| The
issuing of TFCs by leasing companies took a sharp turn this year. Six have
been issued so far. The |
|
| growing
interest of issuing medium-term debt instruments by leasing companies
exhibits the increasing |
|
| popularity
of leasing consumer durables. Your Company is aware of the market trends and
is making |
|
| conscious
efforts in these directions. |
|
|
| Despite
the modulations in economy and geopolitical changes, we stand committed to
take the Company |
|
| to
new heights to effect recoveries in the times of low business activity and
keep searching for new |
|
| business
sectors for our business growth. |
|
|
| Directors |
|
| Mr.
Jehangir Shah resigned as director and Chief Executive of the company, and
Mr. Bashir Hussain |
|
| Shaikh
was co-opted to complete the remainder of the tenure. The Board appreciates
the valuable |
|
| contribution
made by the outgoing director during his tenure. |
|
|
| Auditors |
|
| The
Company's Auditors M/s Ebrahim & Company, Chartered Accountants, retire
and being eligible offer |
|
| themselves
for reappointment. |
|
|
| Pattern
of Shareholding |
|
| Pattern
of shareholding as on June Both 2001 is annexed to this report. |
|
|
| Acknowledgements |
|
| We
would like to thank our valued customers, shareholders, creditor financial
institutions, the Securities & |
|
| Exchange
Commission of Pakistan, State Bank of Pakistan, Leasing Association of
Pakistan, and all three |
|
| Stock
Exchanges of Pakistan, for their continued support and guidance. |
|
|
| The
Board expresses its deep appreciation towards the tireless efforts of the
management and staff of the |
|
| company.
It is due to their hard work and sheer dedication that we have been able to
present these results |
|
| before you. |
|
|
| On
behalf of the Board of Directors |
|
|
|
Bashir Hussain Shaikh |
|
| Lahore |
|
Managing Director & |
|
Salman Qureshi |
|
| December
6, 2001. |
|
Chief Executive Officer |
|
Chairman |
|
|
|
| PATTERN
OF HOLDING OF SHARES |
|
| HELD
BY THE SHAREHOLDERS AS AT 30TH JUNE 2001 |
|
|
|
|
Shareholding |
Total |
|
| No.
of Shareholders |
From |
To |
shares held |
|
| 29 |
|
1 |
100 |
2700 |
|
| 400 |
|
101 |
500 |
187000 |
|
| 122 |
|
501 |
1000 |
112500 |
|
| 107 |
|
1001 |
5000 |
251550 |
|
| 13 |
|
5001 |
10000 |
107500 |
|
| 6 |
|
10001 |
15000 |
76000 |
|
| 1 |
|
15001 |
20000 |
18000 |
|
| 5 |
|
20001 |
25000 |
115050 |
|
| 1 |
|
25001 |
30000 |
30000 |
|
| 1 |
|
30001 |
35000 |
30500 |
|
| 1 |
|
35001 |
40000 |
40000 |
|
| 1 |
|
45001 |
50000 |
50000 |
|
| 2 |
|
95001 |
100000 |
200000 |
|
| 1 |
|
115001 |
120000 |
116600 |
|
| 1 |
|
140001 |
145000 |
143000 |
|
| 1 |
|
145001 |
150000 |
150000 |
|
| 1 |
|
160001 |
165000 |
164600 |
|
| 1 |
|
165001 |
170000 |
168300 |
|
| 1 |
|
200001 |
205000 |
203800 |
|
| 1 |
|
265001 |
270000 |
269300 |
|
| 2 |
|
370001 |
375000 |
750000 |
|
| 2 |
|
385001 |
390000 |
771700 |
|
| 1 |
|
450001 |
455000 |
455000 |
|
| 1 |
|
495001 |
500000 |
499500 |
|
| 1 |
|
1710001 |
1715000 |
1711350 |
|
| ---------- |
|
---------- |
---------- |
---------- |
|
| 703 |
|
6623950 |
|
| ========== |
|
========== |
========== |
========== |
|
|
|
|
|
| With
Central depository Company of Pakistan |
|
| 3 |
|
1 |
100 |
300 |
|
| 42 |
|
101 |
500 |
18900 |
|
| 26 |
|
501 |
1000 |
25000 |
|
| 44 |
|
1001 |
5000 |
113500 |
|
| 5 |
|
5001 |
10000 |
36800 |
|
| 3 |
|
10001 |
15000 |
40600 |
|
| 1 |
|
15001 |
20000 |
16500 |
|
| 2 |
|
20001 |
25000 |
46700 |
|
| 1 |
|
25001 |
30000 |
27000 |
|
| 1 |
|
35001 |
40000 |
39000 |
|
| 1 |
|
40001 |
45000 |
43650 |
|
| 1 |
|
55001 |
60000 |
55500 |
|
| 1 |
|
60001 |
65000 |
60500 |
|
| 1 |
|
75001 |
80000 |
77500 |
|
| 2 |
|
125001 |
130000 |
258000 |
|
| 1 |
|
145001 |
150000 |
148000 |
|
| 1 |
|
195001 |
200000 |
199500 |
|
| 1 |
|
245001 |
250000 |
250000 |
|
| 1 |
|
250001 |
255000 |
254400 |
|
| ---------- |
|
---------- |
---------- |
---------- |
|
| 138 |
|
1711350 |
|
| ========== |
|
========== |
========== |
========== |
|
|
|
|
|
| Categories
of Shareholders (including CDC) |
|
|
|
Number |
Share Held |
Percentage |
|
| Individuals |
|
802 |
3428700 |
51.76% |
|
| Investment
Companies |
1 |
800 |
0.01% |
|
| Insurance
Companies |
2 |
204800 |
3.09% |
|
| Joint
Stock Companies |
17 |
107900 |
1.63% |
|
| Financial
Institution |
11 |
1923050 |
29032% |
|
| Modaraba
Companies |
1 |
500 |
0.01% |
|
| Leasing
Companies |
1 |
2000 |
0.03% |
|
| Corporate
Societies |
1 |
200 |
0.00% |
|
| Others |
|
5 |
956000 |
14.43% |
|
|
---------- |
---------- |
---------- |
|
|
841 |
6623950 |
100.00% |
|
|
========== |
========== |
========== |
|
| Others |
|
|
|
| Association |
|
-- |
-- |
-- |
|
| Abandoned
Property |
-- |
-- |
-- |
|
| Governments
Authorities |
-- |
-- |
-- |
|
| Modarabas
Management |
-- |
-- |
-- |
|
| Non-Resident |
|
-- |
-- |
-- |
|
| Foreign
Company |
-- |
-- |
-- |
|
| Trust |
|
2 |
954500 |
14.41% |
|
| Others |
|
2 |
1500 |
0.02% |
|
|
---------- |
---------- |
---------- |
|
| Total |
|
4 |
956000 |
14.43% |
|
|
========== |
========== |
========== |
|
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of CAPITAL ASSETS LEASING CORPORATION |
|
| LIMITED
as at June 30, 2001 and the related profit and loss account, cash flow
statement and |
|
| statement
of changes in equity together with the notes forming part thereof, for the
year then ended |
|
| and
we state that we have obtained all the information and explanations which, to
the best of our |
|
| knowledge
and belief, were necessary for the purposes of our audit. |
|
|
| It
is the responsibility of the Company's management to establish and maintain a
system of internal |
|
| control,
and prepare and present the above said statements in conformity with the
approved |
|
| accounting
standards and the requirements of the Companies Ordinance, 1984. Our
responsibility is |
|
| to
express an opinion on these statements based on our audit. |
|
|
| We
conducted our audit in accordance with the auditing standards as applicable
in Pakistan. These |
|
| standards.
require that we plan and perform the audit to obtain reasonable assurance
about whether the |
|
| above
said statements 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 above said statements. We believe that our audit
provides |
|
| reasonable
basis for our opinion and, after due verification, we report that: |
|
|
| a)
in our opinion, proper books of accounts have been kept by the Company as
required by the |
|
| Companies
Ordinance, 1984; |
|
|
| b)
in our opinion: |
|
| i)
the balance sheet and profit and loss account together with the notes thereon
have |
|
| been
drawn up in conformity with the Companies Ordinance, 1984, and are in |
|
| agreement
with the books of account and are further in accordance with accounting |
|
| polices
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, cash flow statement and statement
of changes in |
|
| equity
together with the notes forming parts 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, its cash
flows and changes |
|
| in
equity for the year then ended; and |
|
|
| d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980 |
|
|
| KARACHI |
|
Ebrahim & Company |
|
| DATED:
December 06, 2001 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET |
|
| AS
AT JUNE 30, 2001 |
|
|
|
|
2001 |
2000 |
|
|
NOTE |
Rupees |
Rupees |
|
| SHARE
CAPITAL AND RESERVES |
|
| Authorized
capital |
|
| 10,000,000
ordinary share of |
|
| Rs. 10 each |
|
100,000,000 |
100,000,000 |
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up capital |
|
|
|
| 6,623,950
ordinary shares of Rs. 10 each |
|
3 |
66,239,500 |
66,239,500 |
|
| fully
paid in cash |
|
|
|
| Reserves |
|
4 |
8,567,348 |
8,120,448 |
|
| Reserve
for proposed issue of bonus shares |
|
|
11,591,912 |
|
| Unappropriated
profits |
|
14,397,544 |
24,201,855 |
|
|
----------- |
----------- |
|
|
100,796,304 |
98,561,803 |
|
|
| LONG
TERM LOANS |
|
5 |
6,250,006 |
10,416,668 |
|
|
|
| LIABILITIES
AGAINST ASSETS |
|
| SUBJECT
TO FINANCE LEASES |
|
6 |
2,658,125 |
3,078,729 |
|
|
|
| DEFERRED
LIABILITIES |
|
7 |
4,641,770 |
2,920,770 |
|
| LONG
TERM DEPOSITS |
|
8 |
30,266,979 |
25,796,929 |
|
| CURRENT
LIABILITIES |
|
|
|
| Current
portion of long term liabilities |
|
9 |
35,773,120 |
28,775,990 |
|
| Short
term loans and running finances |
|
10 |
65,941,817 |
82,513,755 |
|
| Certificates
of investment |
|
11 |
10,552,000 |
|
| Accrued
and other liabilities |
|
12 |
5,265,208 |
4,688,841 |
|
| Provision
for taxation |
|
13 |
2,058,000 |
1,467,000 |
|
| Dividends |
|
14 |
691,729 |
885,415 |
|
|
|
---------- |
---------- |
|
|
120,281,874 |
118,331,001 |
|
|
| CONTINGENCIES
AND COMMITMENTS |
|
15 |
---------- |
---------- |
|
|
264,895,058 |
259,105,900 |
|
|
========== |
========== |
|
|
|
|
| TANGIBLE
FIXED ASSETS |
|
16 |
6,528,954 |
6,832,040 |
|
|
|
|
|
| INVESTMENT
IN LEASES AND HIRE |
|
|
|
| PURCHASE
FINANCE |
|
17 |
128,675,473 |
102,577,245 |
|
|
|
|
|
| LONG
TERM INVESTMENTS |
|
18 |
135,000 |
250,000 |
|
| LONG
TERM ADVANCES |
|
19 |
4,167,660 |
8,366,568 |
|
| LONG
TERM DEPOSITS |
|
20 |
972,060 |
1,012,400 |
|
| CURRENT
ASSETS |
|
|
|
| Current
portion of long term investment in lease, |
|
|
| hire
purchase finance, long term advances |
|
|
|
| and
long term investment |
|
21 |
91,990,877 |
104,209,085 |
|
| Morabaha
and short term finances |
|
22 |
11,799,550 |
10,766,740 |
|
| Advances,
deposits, prepayments |
|
| and
other receivables |
|
23 |
9,555,079 |
6,065,163 |
|
| Cash
and bank balances |
|
24 |
11,070,405 |
19,026,659 |
|
|
|
---------- |
---------- |
|
|
124,415,911 |
140,067,647 |
|
|
---------- |
---------- |
|
|
264,895,058 |
259,105,900 |
|
|
========== |
========== |
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
|
|
Bashir Hussain Shaikh |
|
Ilyas Mohsin |
|
Salman Qureshi |
|
|
Managing Director & CEO. |
|
Director |
|
Chairman |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 2001 |
|
|
|
|
2001 |
2000 |
|
|
NOTE |
Rupees |
Rupees |
|
|
| Income
from leasing operations |
|
25 |
37,298,044 |
28,759,942 |
|
| Other income |
|
26 |
5,402,386 |
817,267 |
|
|
|
---------- |
---------- |
|
|
|
42,700,430 |
29,577,209 |
|
| Administrative
and operating expenses |
|
27 |
18,560,359 |
15,374,308 |
|
| Financial
charges |
|
28 |
19,477,040 |
10,461,691 |
|
|
|
---------- |
---------- |
|
|
38,037,399 |
25,835,999 |
|
|
---------- |
---------- |
|
| Operating
profit before provisions |
|
4,663,031 |
3,741,210 |
|
| Provision/(reversal
of provision) for doubtful |
|
| -
Lease finances |
|
(289,478) |
3,376,863 |
|
| -
Long term advances |
|
(178,800) |
-- |
|
| -
Morabaha and short term finances |
|
(900,000) |
(2,950,000) |
|
| -
Other receivables |
|
1,469,808 |
463,007 |
|
| -
Diminution in value of investment |
|
15,000 |
-- |
|
|
|
---------- |
---------- |
|
|
116,530 |
889,870 |
|
|
---------- |
---------- |
|
| Operating
profit for the year |
|
4,546,501 |
2,851,340 |
|
| Provision
for taxation |
|
| Current year |
|
5,910,001 |
455,000 |
|
| Prior year |
|
-- |
62,137 |
|
| Deferred |
|
1,721,000 |
(206,000) |
|
|
---------- |
---------- |
|
|
2,312,000 |
311,137 |
|
|
---------- |
---------- |
|
| Net
profit after taxation |
|
2,234,501 |
2,540,203 |
|
| Unappropriated
profit brought forward |
|
24,201,855 |
22,169,693 |
|
|
---------- |
---------- |
|
| Profit
available for appropriation |
|
26,436,356 |
24,709,896 |
|
| Appropriation |
|
| Transfer
to reserves |
|
446,900 |
508,041 |
|
| Reserve
for proposed issue of bonus share |
|
| @
17.50% (2000: Nil) |
|
11,591,912 |
-- |
|
|
---------- |
---------- |
|
|
12,038,812 |
508,041 |
|
|
---------- |
---------- |
|
| Unappropriated
profit carried forward |
|
14,397,544 |
24,201,855 |
|
|
========== |
========== |
|
| EARNINGS
PER SHARE |
|
29 |
0.34 |
Rs. 0.383 |
|
|
========== |
========== |
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
|
Bashir Hussain Shaikh |
|
Ilyas Mohsin |
|
Salman Qureshi |
|
|
Managing Director & CEO. |
|
Director |
|
Chairman |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30, 2001 |
|
|
|
2001 |
2000 |
|
|
Rupees |
Rupees |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Profit
before taxation |
|
4,546,501 |
2,851,340 |
|
| Adjustments
for non cash charges/(credit) and other |
|
| items |
|
| Gratuity |
|
-- |
6,400 |
|
| Depreciation |
|
2,242,997 |
2,020,077 |
|
| (Gain)
on disposal of fixed assets |
|
(589,595) |
(467,994) |
|
| Amortisation
of deferred cost |
|
-- |
122,122 |
|
| Financial
charges |
|
19,477,040 |
10,461,691 |
|
| Provision
against losses (net) |
|
101,530 |
889,870 |
|
| Provision
for diminution in value of investment |
|
15,000 |
-- |
|
|
---------- |
---------- |
|
|
25,793,473 |
15,883,506 |
|
|
|
|
| (Increase)
in current assets |
|
|
|
| Advances,
deposits, prepayments and other |
|
|
|
| receivables |
|
(2,149,447) |
(1,359,785) |
|
|
|
|
| Increase
in current liabilities |
|
|
|
| Accrued
and other liabilities |
|
6,911 |
798,121 |
|
|
---------- |
---------- |
|
| Cash
generated from operations |
|
23,650,937 |
15,321,842 |
|
|
|
|
| Financial
charges paid |
|
(18,643,915) |
(10,675,372) |
|
| Tax paid |
|
(3,077,670) |
(612,061) |
|
| Net
investment in lease and hire purchase finances |
|
(11,354,954) |
(38,650,419) |
|
| Certificates
of investment |
|
10,552,000 |
-- |
|
| Morabaha
and short term finances |
|
(132,810) |
(2,348,810) |
|
| Lease
security deposits |
|
10,613,949 |
293,570 |
|
|
---------- |
---------- |
|
| Net
cash from operating activities |
|
11,607,537 |
(36,671,250) |
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
|
|
| Additions
to fixed assets |
|
(527,457) |
(381,421) |
|
| Proceeds
from sale of fixed assets |
|
13,900,001 |
1,003,500 |
|
| Long
term advances |
|
2,250,000 |
-- |
|
| Long
term deposits |
|
40,340 |
(497,810) |
|
|
---------- |
---------- |
|
| Net
cash from investing activities |
|
3,152,883 |
124,269 |
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Repayment
of liabilities against assets subject to |
|
| finance lease |
|
(2,201,052) |
(1,088,884) |
|
| Dividend
and zakat paid |
|
(193,686) |
(2,969,066) |
|
| Short
term loans and running finances |
|
(16,571,938) |
24,146,051 |
|
| Long
term loans |
|
(3,749,998) |
18,750,000 |
|
|
---------- |
---------- |
|
| Net
cash from financing activities |
|
(22,716,674) |
38,838,101 |
|
|
---------- |
---------- |
|
| Net
increase in cash and cash equivalents |
|
(7,956,254) |
2,291,120 |
|
| Cash
and cash equivalents at the beginning of the year |
|
19,026,659 |
16,735,539 |
|
|
---------- |
---------- |
|
| Cash
and cash equivalents at the end of the year |
|
11,070,405 |
19,026,659 |
|
|
========== |
========== |
|
|
|
|
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED JUNE 30, 2001 |
|
|
|
Issued |
Reserves |
Reserve for |
Unappro- |
Total |
|
|
subscribed |
|
proposed |
priated |
|
|
|
and paid up |
|
issue of |
profit |
|
|
|
capital |
|
bonus shares |
|
|
|
------------------------------------------Rupees---------------------------------------- |
|
| Balance
as at June 30, 1999 |
66,239,500 |
7,612,407 |
-- |
22,169,693 |
96,021,600 |
|
| Profit
after taxation |
-- |
-- |
-- |
2,540,203 |
2,540,203 |
|
| Transfer
to statutory reserves |
-- |
508,041 |
-- |
(508,041) |
-- |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Balance
as at June 30, 2000 |
66,239,500 |
8,120,448 |
-- |
24,201,855 |
98,561,803 |
|
| Profit
after taxation |
-- |
-- |
-- |
2,234,501 |
2,234,501 |
|
| Transfer
to reserves |
-- |
446,900 |
-- |
(446,900) |
-- |
|
| Transfer
to reserve for proposed |
|
| issue
of bonus shares |
-- |
-- |
11,591,912 |
(11,591,912) |
-- |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Balance
as at June 30, 2001 |
66,239,500 |
8,567,348 |
11,591,912 |
14,397,544 |
100,796,304 |
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
|
|
Bashir Hussain Shaikh |
|
Ilyas Mohsin |
|
Salman Qureshi |
|
|
Managing Director & CEO. |
|
Director |
|
Chairman |
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED JUNE 30, 2001 |
|
|
| 1.
NATURE AND STATUS OF BUSINESS |
|
| The
Company was incorporated on April 1, 1992 in Pakistan as a public limited
company |
|
| and
its shares are quoted on all Stock Exchanges in Pakistan. The principal
activity of the |
|
| Company
is to carry on leasing business. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
| 2.1
Basis of preparation |
|
| These
accounts have been prepared in accordance with requirements of the |
|
| Companies
Ordinance, 1984 and the International Accounting Standards, as |
|
| applicable
in Pakistan. |
|
|
| 2.2
Accounting convention |
|
| These
accounts have been prepared under the historical cost convention without |
|
| any
adjustments for the effect of inflation or current values. |
|
|
| 2.3
Staff retirement benefits |
|
| The
Company operates a funded contributory provident fund scheme covering all |
|
| regular
employees. Equal monthly contributions are made by the Company and |
|
| employees
to the fund. |
|
|
| Provision
for gratuity represents the amounts due to staff upto June 30, 1998 being |
|
| the
date of introduction of provident fund scheme. |
|
|
| 2.4
Compensated absences |
|
| Liability
in respect of accumulated compensated absences of employees are |
|
| accounted
for in the period in which these absences are earned. |
|
|
| 2.5
Revenue recognition |
|
| Lease
income is recognized using the 'Finance Method'. Under this method the |
|
| unearned
finance income represented by the excess of the aggregate of lease rentals |
|
| and
the estimated residual value over the cost of leased assets is allocated to |
|
| income
on a systematic basis over the period of the lease term. |
|
|
| Profit
on morabaha and short term finances is recognized on prorata basis taking |
|
| into
account the relevant buy-back date. - |
|
|
| Front-end
fee, project examination fee and other commissions are recognized as |
|
| income
on receipt. |
|
|
| 2.6 Taxation |
|
|
| Provision
for current taxation is the higher of the amount computed on taxable |
|
| income
at the current tax rates after taking into account tax rebates and minimum |
|
| tax
computed at the prescribed rate on turnover. |
|
|
| The
Company accounts for deferred taxation using the liability method on all |
|
| significant
timing differences excluding those that are not likely to reverse in |
|
| foreseeable
future as stated more fully in Note: 7.1. |
|
|
| 2.7
Tangible fixed assets |
|
| These
are stated at cost less accumulated depreciation. Depreciation is charged to |
|
| income
applying the straight-line method whereby the cost of an asset is written off |
|
| over
its estimated useful life at the rates given in relevant note. |
|
|
| Full
year's depreciation is charged on additions while no depreciation is charged
on |
|
| disposal
during the year. |
|
|
| Normal
repairs and maintenance are charged to revenue. Major repairs, renewals |
|
| and
improvements are capitalized. |
|
|
| Gains
and losses on disposal of fixed assets are charged to income. |
|
|
| 2.8
Accounting for leases |
|
| The
Company accounts for assets acquired under financial leases by recording the |
|
| assets
and related liabilities. |
|
|
| The
amounts are determined on the basis of discounted value of total minimum |
|
| lease
payments and residual value of the assets at the end of the lease period to
be |
|
| paid
by the Company. |
|
|
| Financial
charges are allocated to accounting periods in a manner so as to provide |
|
| constant
periodic rate of charge on the outstanding liability. |
|
|
| Depreciation
is charged at rates specified in the related note to write off the assets |
|
| over
its estimated useful life in view of certainty of the ownership of the assets
at |
|
| the
end of the lease. |
|
|
| 2.9
Provision for potential losses |
|
| Provision
for losses against lease, morabaha finances, short term finances, long |
|
| term
advances and other receivables represents provision which in the opinion of |
|
| the
management, is required to cover potential losses that can be reasonably |
|
| anticipated.
The allowance is increased by provision charged to income and |
|
| decreased
by charge net of recoveries. The amounts are shown under respective |
|
| heads
as a deduction from gross amounts of receivables. |
|
|
| 2.10
Investments |
|
| Long-term
investments are stated at cost. Provision is made for diminution in the |
|
| value
of investments if considered permanent. |
|
|
| 3
ISSUED, SUBSCRIBED AND |
|
2001 |
2000 |
|
| PAID-UP
CAPITAL |
|
Rupees |
Rupees |
|
| 6,623,950
ordinary shares of Rs. 10/- each |
|
| fully
paid in cash |
|
66,239,500 |
66,239,500 |
|
|
========== |
========== |
|
|
|
|
| 4 RESERVES |
|
| Opening
balance |
|
8,120,448 |
7,612,407 |
|
| Transfer
from profit and loss account |
|
446,900 |
508,041 |
|
|
----------- |
----------- |
|
|
8,567,348 |
8,120,448 |
|
|
========== |
========== |
|
| This
represents reserves created in compliance with rule 7(vi) (a) of The Leasing
Companies |
|
| (Establishment
and Regulation) Rules, 2000. |
|
|
| 5
LONG TERM LOANS |
|
| Secured |
|
| Financial
institution |
|
| Morabaha
financing (Note: 5.1 ) |
|
15,000,002 |
18,750,000 |
|
| Less:
Current portion shown under |
|
| current
liabilities |
|
8,749,996 |
8,333,332 |
|
|
----------- |
----------- |
|
|
6,250,006 |
10,416,668 |
|
|
========== |
========== |
|
|
|
|
| 5.1
These loans are secured against first pari passu charge on leased assets and
related |
|
| receivables.
These loans carry mark-up ranging from 17.50 percent to 18.50 percent |
|
| per
annum and are repayable in equal quarterly installments of Rs. 0.833 million,
Rs. |
|
| 1.250
million and Rs. 0.417 million respectively latest by January 2004. |
|
|
| 6
LIABILITIES AGAINST ASSETS |
|
2001 |
2000 |
|
| SUBJECT
TO FINANCE LEASES |
|
Rupees |
Rupees |
|
| Present
value of minimum lease payments |
|
5,002,977 |
4,987,014 |
|
| Less:
Current portion shown under |
|
| current
liabilities |
|
2,344,852 |
1,908,285 |
|
|
----------- |
----------- |
|
|
2,658,125 |
3,078,729 |
|
|
========== |
========== |
|
| The
above liability represents the unpaid balance of the total of minimum lease
payments and |
|
| the
residual value payable at the end of lease discounted at rates ranging from
18.00 to 22.00 |
|
| percent
per annum. |
|
|
| Remaining
aggregate rentals of Rs. 5.878 million inclusive of mark-up are payable in 35
equal |
|
| monthly
installments latest by May 2004. |
|
|
| Future
lease payments are as follows: |
|
|
2001 Rupees |
2000 Rupees |
|
|
Within |
More than |
Total |
Within |
More than |
Total |
|
|
one year |
one year |
|
one year |
one year |
|
|
|
|
and upto |
|
and upto |
|
|
|
|
five years |
|
five years |
|
|
| Minimum
Lease Payments |
2,875,461 |
3,002,753 |
5,878,214 |
2,506,270 |
3,622,700 |
6,128,970 |
|
| Less:
Financial charges |
|
| allocated
to future periods |
530,609 |
344,628 |
875,237 |
597,985 |
543,971 |
1,141,956 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Present
value of minimum |
|
| lease
payments |
2,344,852 |
2,658,125 |
5,002,977 |
1,908,285 |
3,078,729 |
4,987,014 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| At
the end of the lease period the ownership of assets shall be transferred to
the Company on |
|
| payment
of residual value. |
|
|
| The
cost of operating and maintaining the leased assets is borne by the Company. |
|
|
| The
above liability is secured against demand promissory note. |
|
|
|
2001 |
2000 |
|
|
Rupees |
Rupees |
|
| 7.
DEFERRED LIABILITIES |
|
| Provision
for gratuity |
|
67,770 |
67,770 |
|
| Deferred
taxation (Note: 7.1) |
|
4,574,000 |
2,853,000 |
|
|
---------- |
---------- |
|
|
4,641,770 |
2,920,770 |
|
|
========== |
========== |
|
|
|
|
| 7.1
This amount comprises of provision/(reversal) of liability arising after June
30, 1998 and |
|
| three-fifths
of unprovided liability as at June 30, 1998 as required by the Securities and |
|
| Exchange
Commission of Pakistan's circular no. 16 dated September 9, 1999. The amounts |
|
| have
been determined after taking into account tax losses. Unprovided deferred tax |
|
| liabilities
as at June 30, 2001 amounted to Rs. 3.335 million (2000: Rs. 5.003 million) |
|
| which
represents balance unprovided deferred tax liability at beginning of the
financial year |
|
| 1998-99. |
|
|
2001 |
2000 |
|
|
Rupees |
Rupees |
|
| 8.
LONG TERM DEPOSITS |
|
| Lease
security deposits (Note: 8.1) |
|
54,945,251 |
44,331,302 |
|
| Less:
Current portion shown under current |
|
| Liabilities |
|
24,678,272 |
18,534,373 |
|
|
---------- |
---------- |
|
|
30,266,979 |
25,796,929 |
|
|
========== |
========== |
|
|
|
|
| 8.1
These represent interest free security deposits received from lessees under
lease |
|
| contracts
and are adjustable at the expiry of the respective lease period. |
|
|
| 9.
CURRENT PORTION OF |
|
2001 |
2000 |
|
| LONG
TERM LIABILITIES |
|
Rupees |
Rupees |
|
| Long
term loans (Note: 5) |
|
8,749,996 |
8,333,332 |
|
| Liabilities
against assets subject to finance |
|
|
|
| lease (Note: 6) |
|
2,344,852 |
1,908,285 |
|
| Long
term deposits (Note: 8) |
|
24,678,272 |
18,534,373 |
|
|
---------- |
---------- |
|
|
35,773,120 |
28,775,990 |
|
|
========== |
========== |
|
|
|
|
| 10.
SHORT TERM LOANS AND |
|
|
|
| RUNNING
FINANCES |
|
| Short
term loans |
|
| Secured |
|
| Non-banking
financial institution |
|
| Morabaha
financing (Note: 10.1) |
|
5,500,000 |
3,000,000 |
|
| Unsecured |
|
| Non-banking
financial institutions |
|
| (Note: 10.2) |
|
31,000,000 |
42,500,000 |
|
|
---------- |
---------- |
|
|
36,500,000 |
45,500,000 |
|
| Running
finances under markup arrangements |
|
| Secured |
|
| Banking
company (Note: 10.3) |
|
29,441,817 |
37,013,755 |
|
|
---------- |
---------- |
|
|
65,941,817 |
82,513,755 |
|
|
========== |
========== |
|
|
|
|
| 10.1
This facility is secured by first pari passu charge on leased assets and
receivables of |
|
| the
Company and carries markup at the rate of 19 percent per annum. This amount
is |
|
| repayable
by May 2002. |
|
|
| 10.2
These facilities carry mark-up ranging from 18.35 to 22.00 percent per annum. |
|
| These
balances are repayable on various dates latest by December 2001. |
|
|
| 10.3
The Company can avail facilities aggregating to Rs. 37.0 million (2000: Rs.
37.00 |
|
| million)
from commercial banks. Under these arrangements goods owned by the |
|
| Company
are sold to the bank and are deemed to be immediately repurchased by the |
|
| Company
at a price paid by the bank plus mark-up computed at the rate of 43.836 |
|
| paisas
per Rs. 1,000 per diem or part thereof on the price outstanding. These |
|
| facilities
are secured by first pari passu charge on Company's leased assets, fixed |
|
| assets,
receivables and are renewable/repayable by December 2001. |
|
|
|
2001 |
2000 |
|
|
Rupees |
Rupees |
|
| 11.
CERTIFICATES OF INVESTMENT |
|
| Local
currency |
|
10,552,000 |
-- |
|
|
========== |
========== |
|
| Certificates
of Investment (COI) are issued for period ranging from three months to one
year. |
|
| The
expected rates of return payable on these COI ranges from 14.00 to 15.00
percent per |
|
| annum. |
|
|
| 12.
ACCRUED AND OTHER LIABILITIES |
|
| Accrued
expenses |
|
609,014 |
585,981 |
|
| Mark-up
accrued on secured loans and |
|
|
|
| running
finances |
|
3,076,487 |
2,831,768 |
|
| Mark-up
accrued on unsecured loans |
|
1,205,375 |
735,774 |
|
| Mark-up
on assets subject to finance lease |
|
29,755 |
66,469 |
|
| Accrued
return on certificates of investment |
|
155,519 |
-- |
|
| Income
tax payable |
|
-- |
263,669 |
|
| Unclaimed
gratuity |
|
108,201 |
108,201 |
|
| Others |
|
80,857 |
96,979 |
|
|
---------- |
---------- |
|
|
5,265,208 |
4,688,841 |
|
|
========== |
========== |
|
|
|
|
| 13.
PROVISION FOR TAXATION |
|
| The
tax liability amounting to Rs. 15.084 million determined by the assessing
officer for |
|
| assessment
years 1997-1998 to 1999-2000 has been set aside by the Commissioner of Income |
|
| Tax
(Appeals) (CIT (A)). The Company has preferred appeals before the Income Tax |
|
| Appellate
Tribunal on the grounds the CIT (A) shall have given ruling in favour of the |
|
| Company. |
|
|
|
2001 |
2000 |
|
|
Rupees |
Rupees |
|
| 14.
DIVIDENDS |
|
| Unclaimed |
|
691,729 |
885,415 |
|
|
========== |
========== |
|
|
|
|
| 15.
CONTINGENCIES AND COMMITMENTS |
|
| There
were no contingencies and capital commitments as at balance sheet date. |
|
|
| 16.
TANGIBLE FIXED ASSETS |
|
|
WRITTEN |
|
DOWN |
|
AS AT |
ADDITIONS |
DISPOSAL / |
AS AT |
% |
AS AT |
ADJUSTMENT |
FOR THE |
AS AT |
VALUE AS |
|
01-07-2000 |
|
ADJUSTMENT |
30-06-2001 |
|
01-07-2000 |
|
YEAR |
30-06-2001 |
30-06-20l |
| Owned |
|
| Furniture
and fixture |
981,477 |
20,090 |
-- |
1,001,567 |
10 |
505,992 |
-- |
100,157 |
606,149 |
395418 |
| Air
Conditioner and refrigerators |
412,031 |
58,000 |
-- |
470,031 |
15 |
284,982 |
-- |
48,893 |
333,875 |
136156 |
| Electric
fitting and installation |
32,040 |
-- |
-- |
32,040 |
15 |
25,520 |
-- |
2,094 |
27,614 |
4,426 |
| Office
machines and equipment |
1,829,635 |
381,367 |
-- |
2,211,002 |
15 |
1,261,757 |
-- |
269,867 |
1,531.62 |
679,378 |
| Vehicles |
|
2,400,086 |
68,000 |
(1,059,950) |
1,408,136 |
20 |
1,637,373 |
(674,789) |
281,317 |
1,243,901 |
164,235 |
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
5,655,269 |
527,457 |
(1,059,950) |
5,122,776 |
|
3,715,624 |
(674,789) |
702,328 |
3,743,163 |
1,379,613 |
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
| Leased |
|
|
| Vehicles |
|
5,447,950 |
2,102,315 |
(699,000) |
6,851,265 |
20 |
1,258,790 |
(279,600) |
1,370,254 |
2,349,444 |
450 |
| Office
equipments |
1,021,400 |
114,700 |
|
1,136,100 |
15 |
318,165 |
|
170,415 |
488,580 |
64 |
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
6,469,350 |
2,217,015 |
(699,000) |
7,987,365 |
|
1,576,955 |
(279,600) |
1,540,669 |
2,838,024 |
514 |
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
| Total
Rupees - 2001 |
12,124,619 |
2,744,472 |
(1,758,950) |
13,110,141 |
|
5,292,579 |
(954,389) |
2,242,997 |
6,581,187 |
652 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
| Total
Rupees - 2000 |
8,383,483 |
5,297,320 |
(1,556,184) |
12,124,619 |
|
4,293,180 |
(1,020,678) |
2,020,077 |
5,292,579 |
683 |
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| 16.1
The following assets were disposed of during the year. |
|
|
|
COST |
ACCUMULATED |
WRITTEN DOWN |
SALE |
MODE OF |
|
PARTICULARS OF PURCHASERS |
|
|
|
DEPRECIATION |
VALUE |
PROCEEDS |
DISPOSAL |
|
| Owned
Vehicles |
|
| Honda Civic |
|
555,000 |
222,000 |
333,000 |
540,000 |
Negotiation |
|
Mr. Tahir Ayub, Lahore |
|
| Suzuki
Maragalla |
439,750 |
439,749 |
1 |
290,000 |
Negotiation |
|
Mr. Imran Saeed, Lahore |
|
| Motor Cycle |
|
65,200 |
13,040 |
52,160 |
60,000 |
Insurance claim |
Commercial Union
insurance, Karachi |
|
|
| Leased
Vehicles |
|
| Toyota
Corolla |
699,000 |
279,600 |
419,400 |
500,000 |
Negotiation |
|
M/s Sage Enterprises,
Lahore |
|
|
---------- |
---------- |
---------- |
---------- |
|
|
| Total
Rupees - 2001 |
1,758,950 |
954,389 |
804,561 |
1,390,000 |
|
|
|
---------- |
---------- |
---------- |
---------- |
|
| Total
Rupees - 2000 |
1,556,184 |
1,020,678 |
535,506 |
1,003,500 |
|
|
========== |
========== |
========== |
========== |
|
|
| 17.
INVESTMENT IN LEASE AND HIRE |
|
2001 |
2000 |
|
| PURCHASE
FINANCES |
|
Rupees |
Rupees |
|
| Minimum
lease and hire purchase rentals |
|
| receivable |
|
203,598,551 |
208,051,045 |
|
| Add:
Residual value |
|
56,249,739 |
45,803,419 |
|
|
---------- |
---------- |
|
| Gross
investment in lease and hire |
|
|
|
| purchase
finances |
|
259,848,290 |
253,854,464 |
|
| Less:
Unearned finance income |
|
42,310,555 |
47,671,683 |
|
|
---------- |
---------- |
|
| Net
investment in lease and hire |
|
| purchase
finances (Note: 17.2) |
|
217,537,735 |
206,182,781 |
|
| Less:
Current portion of net |
|
| Investment
(Note: 21) |
|
83,196,607 |
97,642,523 |
|
|
---------- |
---------- |
|
| Long
term portion of net investment (Note: 17.1) |
|
134,341,128 |
108,540,258 |
|
| Less:
Provision for lease losses |
|
5,665,655 |
5,963,013 |
|
|
---------- |
---------- |
|
|
128,675,473 |
102,577,245 |
|
|
========== |
========== |
|
|
|
|
| 17.1
Long term net investment includes: |
|
| Minimum
lease and hire purchase rentals due |
|
| after
one year but less than five years |
|
120,226,954 |
96,264,675 |
|
| Add:
Residual Value |
|
31,571,467 |
27,269,046 |
|
|
---------- |
---------- |
|
|
151,798,421 |
123,533,721 |
|
| Less:
Unearned finance income |
|
17,457,293 |
14,993,463 |
|
|
---------- |
---------- |
|
|
134,341,128 |
108,540,258 |
|
|
========== |
========== |
|
|
|
|
| 17.2
These receivables carry finance income at rates ranging from 18.00 to 30.50
percent per |
|
| annum. |
|
|
|
|
| 18.
LONG TERM INVESTMENTS - AT COST |
|
| Federal
Investment Bonds (Note: 18.1) |
|
200,000 |
200,000 |
|
| Shares
in listed company |
|
|
|
| 5,000
ordinary shares of Commercial |
|
|
|
| Union
Life Assurance Company |
|
|
|
| (Pakistan)
Ltd. (Note: 18.2) |
|
50,000 |
50,000 |
|
|
---------- |
---------- |
|
|
250,000 |
250,000 |
|
| Less:
Current portion |
|
100,000 |
-- |
|
|
---------- |
---------- |
|
|
150,000 |
250,000 |
|
| Less:
Provision for diminution in value of investments |
|
15,000 |
-- |
|
|
---------- |
---------- |
|
|
135,000 |
2507000 |
|
|
========== |
========== |
|
|
|
|
|
| 18.1
Federal Investment Bonds have been issued by Government of Pakistan and carry
Profit |
|
| at
the rate of 15 percent per annum. |
|
|
| 18.2
The market value of these shares at the balance sheet date was Rs.35,000.
(2000: Rs. 35,000) |
|
|
|
2001 |
2000 |
|
|
Rupees |
Rupees |
|
| 19.
LONG TERM ADVANCES |
|
|
|
| Secured |
|
| Advances
to customers (Note: 19.1) |
|
14,483,130 |
16,733,130 |
|
| Less:
Current portion |
|
8,694,270 |
6,566,562 |
|
|
---------- |
---------- |
|
|
5,788,860 |
10,166,568 |
|
| Less:
Provision for doubtful advance |
|
1,621,200 |
1,800,000 |
|
|
---------- |
---------- |
|
|
4,167,660 |
8,366,568 |
|
|
========== |
========== |
|
|
|
|
| 19.1
These advances are secured by equitable mortgage of immovable properties and
carry |
|
| mark-up
at rates ranging from 18 to 19 percent per annum. These advances are |
|
| repayable
in equal quarterly installments latest by October 2004. |
|
|
| 20.
LONG TERM DEPOSITS |
|
| Security
deposits |
|
1,156,750 |
1,128,980 |
|
| Less:
Current portion shown under current assets |
|
184,690 |
116,580 |
|
|
---------- |
---------- |
|
|
|
972,060 |
1,012,400 |
|
|
========== |
========== |
|
|
|
|
| 21.
CURRENT PORTION OF INVESTMENT IN |
|
| LEASE,
ADVANCES AND INVESTMENTS |
|
| Investment
in leases and hire purchase (Note: 21.1) |
|
83,196,607 |
97,642,523 |
|
| Long
term advances |
|
8,694,270 |
6,566,562 |
|
| Long
term investment |
|
100,000 |
-- |
|
|
---------- |
---------- |
|
|
91,990,877 |
104,209,085 |
|
|
========== |
========== |
|
|
|
|
| 21.1
Current portion of net investment in leases |
|
| Minimum
lease and hire purchase rentals |
|
83,371,597 |
112,051,343 |
|
| Add:
Residual value |
|
24,678,272 |
18,269,400 |
|
|
---------- |
---------- |
|
|
108,049,869 |
130,320,743 |
|
| Less:
Unearned finance income |
|
24,853,262 |
32,678,220 |
|
|
---------- |
---------- |
|
|
83,196,607 |
97,642,523 |
|
|
========== |
========== |
|
|
|
|
| 22.
MORABAHA & SHORT TERM FINANCES |
|
| Secured |
|
| Morabaha
finances (Note: 22.1 ) |
|
2,847,410 |
2,847,410 |
|
| Short
term finances (Note: 22.2) |
|
9,252,140 |
9,119,330 |
|
|
---------- |
---------- |
|
|
12,099,550 |
11,966,740 |
|
| Less:
Provision for Doubtful receivables |
|
300,000 |
1,200,000 |
|
|
---------- |
---------- |
|
|
11,799,550 |
10,766,740 |
|
|
========== |
========== |
|
|
| 22.1
These represent amounts receivable against morabaha transactions i.e. sale of
goods on |
|
| a
deferred payment basis at specified profit margin. These are secured by
equitable |
|
| mortgage
of property. The rate of profit applicable on these finances ranges from |
|
| 26.00
to 30.00 percent per annum. |
|
|
| 22.2
These finances are secured by equitable mortgage of property and charge on |
|
| machinery.
These finances carry mark-up at rates ranging from 20.00 to 27.50 percent |
|
| per annum. |
|
|
| 23
ADVANCES, DEPOSITS, PREPAYMENT |
|
2001 |
2000 |
|
| AND
OTHER RECEIVABLES |
|
Rupees |
Rupees |
|
| Advances
(Unsecured - considered good) |
|
| Against salary |
|
| Chief
Executive (Note: 23.1) |
|
310,000 |
84,000 |
|
| Executive
(Note: 23.1) |
|
525,660 |
-- |
|
| Staff |
|
18,500 |
4,500 |
|
|
---------- |
---------- |
|
|
854,160 |
88,500 |
|
| Against
expenses |
|
| Executives
(Note: 23.2) |
|
1,998,556 |
604,677 |
|
| Staff |
|
30,635 |
-- |
|
|
---------- |
---------- |
|
|
2,029,191 |
604,677 |
|
| Against
supplies and services |
|
134,984 |
798,107 |
|
| Income Tax |
|
4,443,741 |
1,629,740 |
|
|
---------- |
---------- |
|
|
7,462,076 |
3,121,024 |
|
| Security
deposits |
|
184,690 |
116,580 |
|
| Prepayments |
|
402,690 |
370,459 |
|
|
| Other
receivables |
|
| Considered
good |
|
| Accrued
return on bank deposits and |
|
| short
term finance |
|
634,827 |
327,501 |
|
| Income
tax refundable |
|
274,968 |
274,968 |
|
| Others |
|
595,828 |
1,854,631 |
|
|
---------- |
---------- |
|
|
1,505,623 |
2,457,100 |
|
| Considered
doubtful |
|
| Others |
|
1,932,815 |
463,007 |
|
| Less:
Provision for doubtful receivables |
|
1,932,815 |
463,007 |
|
|
---------- |
---------- |
|
|
-- |
-- |
|
|
---------- |
---------- |
|
|
1,505,623 |
2,457,100 |
|
|
---------- |
---------- |
|
|
9,555,079 |
6,065,163 |
|
|
========== |
========== |
|
|
|
|
| 23.1
The maximum amount outstanding due from Chief Executive and Executives at the
end |
|
| of
any month during the year was Rs. 0.310 million (2000: Rs. 0.084 million) and
Rs. |
|
| 0.526
million (2000: Nil) respectively. |
|
|
| 23.2
The maximum amount due from Executives at the end of any month during the
year |
|
| was
Rs. 1.999 million (2000: Rs. 0.605 million). |
|
|
|
2001 |
2000 |
|
|
Rupees |
Rupees |
|
| 24.
CASH AND BANK BALANCES |
|
|
|
| Cash in hand |
|
329,360 |
1,429,647 |
|
| Cash at banks |
|
698,479 |
824,921 |
|
| -
in deposit accounts (Note: 24.1) |
|
10,042,566 |
16,772,091 |
|
|
----------- |
----------- |
|
|
10,741,045 |
17,597,012 |
|
|
----------- |
----------- |
|
|
11,070,405 |
19,026,659 |
|
|
========== |
========== |
|
|
|
|
| 24.1
These include Rs.50,000 (2000: Rs. 50,000) with State Bank of Pakistan. |
|
|
2001 |
2000 |
|
|
|
|
Rupees |
Rupees |
|
| 25.
INCOME FROM LEASING OPERATIONS |
|
| Income
on lease contracts |
|
35,909,758 |
26,448,799 |
|
| Income
from hire purchase contracts |
|
85,362 |
460,763 |
|
| Front-end fee |
|
573,602 |
880,442 |
|
| Documentation
charges |
|
215,350 |
258,520 |
|
| Late
payment and other charges |
|
513,972 |
711,418 |
|
|
----------- |
----------- |
|
|
37,298,044 |
287,759,942 |
|
|
========== |
========== |
|
|
|
|
| 26.
OTHER INCOME |
|
| Profit
on morabaha and term finances |
|
3,918,917 |
829,920 |
|
| Return
on bank deposits |
|
824,967 |
882,497 |
|
| Gain
on sale of fixed assets |
|
589,595 |
467,994 |
|
| Profit
of FIB's investment |
|
30,000 |
30,000 |
|
| Miscellaneous |
|
38,907 |
5,761 |
|
|
----------- |
----------- |
|
|
5,402,386 |
2,216,172 |
|
| Less:
Reversal of profit on short term finances |
|
-- |
1,398,905 |
|
|
----------- |
----------- |
|
|
5,402,386 |
817,267 |
|
|
========== |
========== |
|
|
|
|
| 27.
ADMINISTRATIVE & OPERATING EXPENSES |
|
| Salaries,
allowances and benefits (Note: 27.1 ) |
|
5,666,087 |
5,259,593 |
|
| Travelling
and conveyance charges |
|
1,319,147 |
384,018 |
|
| Training
and seminars |
|
10,400 |
26,250 |
|
| Rent,
rates and taxes |
|
975,450 |
923,652 |
|
| Electricity,
gas and water |
|
1,030,322 |
899,805 |
|
| Repairs
and maintenance |
|
1,060,147 |
174,769 |
|
| Printing
and stationery |
|
352,954 |
289,201 |
|
| Telephone
and postage expenses |
|
1,315,638 |
1,573,461 |
|
| Advertising
expenses |
|
154,178 |
137,619 |
|
| Legal
and professional charges |
|
2,052,548 |
1,492,002 |
|
| Vehicle
running and maintenance |
|
879,687 |
920,233 |
|
| Insurance
expenses |
|
635,502 |
523,796 |
|
| Entertainment
expenses |
|
249,771 |
186,810 |
|
| Computer
consultancy and maintenance |
|
105,180 |
-- |
|
| Amortization
of deferred costs |
|
-- |
122,122 |
|
| Donation |
|
-- |
19,000 |
|
| Auditors'
remuneration |
|
|
|
| Audit fee |
|
50,000 |
40,000 |
|
| Out
of Pocket expenses |
|
12,258 |
11,032 |
|
|
---------- |
---------- |
|
|
62,258 |
51,032 |
|
| Sundry
expenses |
|
448,093 |
370,868 |
|
| Depreciation |
|
2,242,997 |
2,020,077 |
|
|
---------- |
---------- |
|
|
18,560,359 |
15,374,308 |
|
|
========== |
========== |
|
|
| 27.1
This amount includes Rs. 0.153 million (2000: Rs. 0.133 million) in respect
of staff |
|
| retirement
benefits. |
|
|
| 28.
FINANCIAL CHARGES |
|
| Mark-up
/ return on: |
|
| Long
term loans |
|
3,091,647 |
484,402 |
|
| Short
term loans and running finances |
|
14,635,041 |
9,201,350 |
|
| Liabilities
for finance leases |
|
773,813 |
493,561 |
|
| Certificates
of investment |
|
783,949 |
-- |
|
| Bank charges |
|
192,590 |
282,378 |
|
|
---------- |
---------- |
|
|
19,477,040 |
10,461,691 |
|
|
========== |
========== |
|
|
| 29. EARNINGS PER SHARE |
|
| Net profit for the year
after taxation |
|
2,234,501 |
2,540,203 |
|
|
========== |
========== |
|
|
Number of shares |
|
| Average
issued ordinary shares |
|
6,623,950 |
6,623,950 |
|
|
========== |
========== |
|
| Earning per share |
|
Rs. 0.337 |
Rs. 0.383 |
|
|
========== |
========== |
|
|
|
|
| 30.
REMUNERATION OF CHIEF EXECUTIVE |
|
| DIRECTORS
AND EXECUTIVES |
|
| The
aggregate amounts charged in the accounts for remuneration, including certain
benefits to the |
|
| Chairman,
Chief Executive, Directors and Executives of the company were as follows: |
|
|
|
CHIEF EXECUTIVE |
DIRECTORS |
EXECUTIVES |
|
|
2001 |
2000 |
2001 |
2000 |
2001 |
2000 |
|
|
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
|
| Managerial
remuneration |
1,097,960 |
991,800 |
7,500 |
3,500 |
812,917 |
1,045,204 |
|
| Bonus |
|
-- |
-- |
57,000 |
50,517 |
|
| Utilities |
|
78,360 |
34,200 |
-- |
-- |
53,924 |
36,583 |
|
| Leave
encashment |
57,000 |
-- |
-- |
-- |
23,227 |
50,284 |
|
| Provident
fund contribution |
65,304 |
57,000 |
-- |
-- |
34,789 |
39,517 |
|
| Reimbursable
expenses |
49,787 |
28,308 |
-- |
-- |
121,835 |
66,573 |
|
| Contract
for legal services |
-- |
-- |
-- |
60,000 |
-- |
-- |
|
| Contract
with advisor to the board |
-- |
-- |
-- |
-- |
930,000 |
930,000 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| Total Rupees |
|
1,348,411 |
1,168,308 |
7,500 |
63,500 |
2,027,209 |
2,168,161 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| Number
of persons |
1 |
1 |
4 |
4 |
5 |
5 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| The
Chairman, Chief Executive, Advisor to the Board and two Executives are
provided use |
|
| of
company maintained cars and other benefits as per company policy |
|
|
| 31.
TRANSACTIONS WITH ASSOCIATED COMPANY |
|
| The
following transactions were carried out during the year with associated under |
|
| takings: |
|
|
|
|
2001 |
2000 |
|
|
Rupees |
Rupees |
|
| Leases
finance provided |
|
-- |
1,071,200 |
|
| Lease
rentals received |
|
-- |
1,212,683 |
|
| Interest
on lease finance |
|
-- |
298,472 |
|
| Short
term finance provided |
|
-- |
8,774,000 |
|
| Interest
on short term finance |
|
-- |
715,838 |
|
|
| 32. INTEREST RATE RISK |
|
| Interest
rate risk and sensitivity of the Company's financial assets and financial
liabilities |
|
| as at June
30, 2001 can be evaluated from the following: |
|
|
|
Interest / markup bearing |
Non-interest bearing |
|
|
Maturity |
Maturity |
Sub total |
Maturity |
Maturity |
Sub total |
Total |
|
|
upto one |
after one |
|
upto one |
after one |
|
|
|
year |
year |
|
year |
year |
|
|
|
----------------------------------------------------------------Rupees-------------------------------------------------------- |
|
| FINANCIAL
ASSETS |
|
| Net
investment in lease |
|
| and
hire purchase |
83,196,607 |
128,675,473 |
211,872,080 |
-- |
-- |
-- |
211,872,080 |
|
| Long
term advances |
8,694,270 |
4,167,660 |
12,861,930 |
-- |
-- |
-- |
12,861,930 |
|
| Investments |
|
100,000 |
100,000 |
200,000 |
-- |
35,000 |
35.00 |
235,000 |
|
| Security
deposits |
-- |
-- |
-- |
184,690 |
972.06 |
1,156,750 |
1,156,750 |
|
| Morabaha
and short |
|
| term finances |
|
11,799,550 |
-- |
11,799,550 |
-- |
-- |
-- |
11,799,550 |
|
| Other
receivables |
|
1,230,655 |
-- |
-- |
1,230,655 |
1,230,655 |
|
| Cash
and bank balances |
10,042,566 |
10,042,566 |
1,027,839 |
-- |
-- |
1,027,839 |
11,070,405 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
113,832,993 |
132,943,133 |
246,776,126 |
2,443,184 |
1,007,060 |
3,450,244 |
250,226,370 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
| FINANCIAL |
|
| LIABILITIES |
|
| Long
term loans |
8,749,996 |
6,250,006 |
15,000,002 |
-- |
-- |
-- |
15.000,002 |
|
| Liabilities
against assets |
|
|
| subject
to finance lease |
2,344,852 |
2,658,125 |
5,002,977 |
-- |
-- |
-- |
5,002,977 |
|
| Deferred
liabilities |
-- |
-- |
-- |
-- |
67,770 |
67,770 |
67,770 |
|
| Security
deposits |
-- |
-- |
-- |
24,678,272 |
30,266,979 |
54,945,251 |
54.945,251 |
|
| Short
term loans and |
|
|
| running
finances |
65,941,817 |
-- |
65,941,817 |
-- |
-- |
-- |
65,941,817 |
|
| Certificates
of investment |
10,552,000 |
-- |
10,552,000 |
-- |
-- |
-- |
10,552,000 |
|
| Accrued
and other |
|
|
| liabilities |
|
-- |
-- |
-- |
5,265,208 |
-- |
5,265,208 |
5,265,208 |
|
| Dividends |
|
-- |
-- |
-- |
691,729 |
-- |
691,729 |
691,729 |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
|
87,588,665 |
8,908,131 |
96,496,796 |
30,635,209 |
30,334,749 |
60,969,958 |
157,466,754 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
| Net
financial assets/ |
|
|
| (liabilities) |
|
26,244,328 |
124,035,002 |
150,279,330 |
(28,192,025) |
(29,327,689) |
(57,519,714) |
(92,759,616) |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| 33. CREDIT RISK |
|
| The
Company's credit risk exposure is not significantly different from that
reflected in the |
|
| financial
statements. The management monitors and limits Company's exposure to credit
risk |
|
| through
monitoring of clients' credit exposure, review and conservative estimates of
provisions |
|
| for
potential lease losses and doubtful receivables and through the prudent use
of collateral for |
|
| large
amounts of credit. The management is of the view that it is not exposed to
significant |
|
| concentration
of credit risk as its financial assets are adequately diversified in
different avenues. |
|
|
| 34.
FAIR VALUE OF THE FINANCIAL INSTRUMENTS |
|
| The
carrying value of financial assets and financial liabilities approximate
their fair values as |
|
| reflected
in the financial statements. |
|
|
| 35. NUMBER OF EMPLOYEES |
|
| Total
number of employees at the year end was 23 (2000: 20). |
|
|
| 36.
FINANCIAL RELIEF AND PROVISION |
|
| AGAINST
NON-PERFORMING ADVANCES |
|
| As
no relief was given or loan written off during the year under review, the
information for |
|
| statements
required to be filed under section 33A of the Banking Companies Ordinance,
1962 is |
|
| "Nil". |
|
|
| 37. GENERAL |
|
| i)
Figures have been rounded off to the nearest rupee. |
|
| ii)
Corresponding figures have been re-arranged wherever necessary for the
purpose of |
|
| comparison. |
|
|
|
Bashir Hussain Shaikh |
|
Ilyas Mohsin |
|
Salman Qureshi |
|
|
Managing Director & CEO. |
|
Director |
|
Chairman |
|
|
|
|
|
|
|
|
|
|
|
|
|
