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Askari Leasing Limited
Annual Report 1999
CONTENTS
Corporate Information
Notice of Meeting
Directors' Report
Auditors' Report
Balance Sheet
Profit and Loss Account
Statement of Changes in Financial Position
Notes to the Accounts
Pattern of Shareholding
Financial Highlights
CORPORATE INFORMATION
BOARD OF DIRECTORS
Lt. Gen. (R)Mohammad Afsar Chairman
Brig. (R)Ikram-uI-Hasan Director
Brig. (R) Muhammad Ayub Director
Brig. (R) Ghulam All Director
Brig. (R) Gul Zaman Satti Director
Mr. Khalid Sharwani Director
Mr. Shujat All Khan Director
Dr. Amjad Waheed Director (NIT Nominee)
CHIEF EXECUTIVE Mr. Taimur Afzal
COMPANY SECRETARY Mr. Zafar Alam Khan Sumbal
BANKERS Askari Commercial Bank Limited
American Express Bank Limited
ABN-AMRO Bank N.V.
ANZ Grindlays Bank Limited
The Bank of Punjab
Citibank N.A.
Emirates Bank International PJSC
Habib American Bank
United Bank Limited
The Hong Kong and Shanghai Banking Corporation Limited
Standard Chartered Bank
AUDITORS Taseer Hadi Khalid & Co.
Chartered Accountants
LEGAL ADVISOR Walker Martineau Saleem
Mr. M. Hanif Bhatti
REGISTERED
OFFICE/HEAD OFFICE 5th Floor, AWT Plaza,
The Mall, Rawalpindi.
Telephone: (051) 511309-11, 566153, 515289
UAN 111-111-345
Fax: (051) 565670
REGISTRAR AND SHARE
TRANSFER OFFICE Askari Associates (Pvt.) Ltd.
6th Floor, AWT Plaza, The Mall, P.O:' Box 678, Rawalpindi.
Telephone: (051) 514370-71, 516108
Fax: (051) 516109
E.Mail: askari@isb.compol.com
NOTICE OF THE SEVENTH
ANNUAL GENERAL MEETING
Notice is hereby given that the Seventh Annual General Meeting of Askari Leasing Limited will be held on Friday,
December 24, 1999 at 9:00 a.m., in Blue Lagoon Complex, Opposite Pearl Continental Hotel outward gate,
Rawalpindi to transact the following business:-
1. To confirm the minutes of the 6th Annual General Meeting of the company held on December 18, 1998.
2. To receive, consider and adopt the Audited Accounts together with Directors' and Auditors' Reports thereon
for the year ended June 30, 1999.
3. To appoint Auditors of the company for the year ending June 30, 1999 and to fix their remuneration. The
present Auditors being eligible, offer themselves for re-appointment.
4. To approve the payment of 20% cash dividend (Rs. 2.00 per share) as recommended by the Board of
Directors for the year ended June 30, 1999.
5. To transact any other business with the permission of the Chair.
By Order of the Board
Dated: November 8, 1999 Zafar Alam Khan Sumbal
Place: Rawalpindi Company Secretary
NOTES:
1. Closure of Share Transfer Books
The Share Transfer Books of the company will be closed from December 1, 1999 to December 11, 1999
(both days inclusive). Cash dividend will be paid to the shareholders whose names appear on the Register
of Members on December 01, 1999.
2. Change in Address and Consolidation of Folios
Members are requested to immediately notify the change of address, if any, and ask for consolidation of
folio numbers, provided any member holds more than one folio, to our Registrar, Askari Associates (Private)
Limited, 6th Floor, AWT Plaza, The Mall, Rawalpindi.
3. Participation in General Meeting
A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend the meeting
and vote for him / her. The form of proxy, duly completed, in order to be effective must be received by the
company at its Registered Office at least 48 hours before the meeting.
DIRECTORS' REPORT
The Board of Directors of your company has the pleasure in presenting the Seventh Annual Report with the audited
accounts of your company for the year ended June 30, 1999.
FINANCIAL RESULTS Rs. in ('000)
Total revenue 797,590
Total expenditure 726,689
Profit for the year 70,901
Provision for taxation 8,500
Un-appropriated profit brought forward 6,438
Transferred from general reserve 115,000
Profit available for appropriation 183,839
Transferred to reserve fund 12,480
Transferred to deferred tax reserve 46,900
Transferred to contingency reserve 75,000
Proposed cash dividend 48,000
Un-appropriated profit carried forward 1,459
DIVIDEND
The Board of Directors has recommended a 20% cash dividend for the year ended June 30, 1999.
RIGHT SHARES
The Board has recommended issue of 35% right shares (subject to necessary approvals) which will enhance capital
of the company by Rs 84 million.
REVIEW OF OPERATIONS
The political and economic situation of the country remained uncertain throughout the year resulting in un-favourable
business environment. Limited corporate leases were generated by large creditworthy corporate entities. This
paucity of business resulted in shrinkage of margins as the competition became intense. During this financial year
we also changed our income recognition policy from sum of digits to the more widely used annuity method. Bad
debts in the financial sector continues to be an issue that requires resolution through managerial efforts and changes
in the legal environment.
It is in this background that, we have made a major shift in our business strategy. We have focused ourselves on
the transport sector and launched a major product "Askar" aimed at individual and corporate clients. The scheme
was launched in March 1999. It has been quite successful and we have met our initial objectives. We are confident
that "Askar" will play a significant role in the future growth of the company.
During the year ended June 30, 1999, Askari Leasing disbursed leases worth Rs 1.2 billion. On June 30, 1999,
total balance sheet footing of the company was Rs 5.6 billion, an increase of 12% from the previous year. Net
investment in leases stood at Rs 4.1 billion as against last year's figure of Rs 3.8 billion. In the big and medium
ticket leases we kept our focus on the top local and multinational blue chip companies. Certificates of Investment
(COIs) continue to be the backbone of our funding requirements. Total COIs outstanding at the year-end were
Rs 3.6 billion. During the year your company successfully completed Rs 113 million first ever lease rental-
based securitization transaction. The liquidity position remained comfortable during the year.
The analysis of the income statement shows the lease income at Rs 638 million as compared to Rs 594 million
for the previous period. The total income for the year was Rs 798 million. The financial charges for the year were
Rs 665 million as compared to the last year's figure of Rs 530 million. The administrative expenses were Rs 50
million as compared to Rs 41 million mainly due to an aggressive marketing strategy pursued for "Askar".
Asset wise lease analysis indicates a continuing change in the composition of the leased assets. Vehicles represent
24% of the total lease portfolio mainly due to "Askar" and our focus on vehicle leases as better quality asset.
However, machinery has still the largest share with 65%. Geographical distribution remained more or less similar
to that of the last year with a major share in Lahore (40%) & Karachi (39%), while the rest is shared by the other
branches. Sector wise analysis shows, 21% in Energy, Oil and Gas, 14% in Textile, 12% in Chemical and
Pharmaceutical and 11% in Services, while the rest is spread over 17 different sectors.
We place a lot of emphasis on the quality of the human resource. We have invested a considerable amount
for training of our employees which has paid rich dividends. The management and the employees deserve a pat
on their backs for their devotion and hard work without which these results would not have been possible.
CREDIT RATING
Despite the political turmoil and the downturn in the economy, your company has sustained these pressures to
maintain its credit rating. The Pakistan Credit Rating Agency (PACRA), has maintained Askari Leasing's entity
rating at "A" for long term obligations and "AI" for short term obligations.
PACRA has also maintained the rating at "A+" of Rs 250 million TFCs issued by the company.
Y2K ISSUE
The Directors are pleased to confirm that the hardware and software of your company are Y2K compliant.
AUDITORS
The Auditors, M/s Taseer Hadi Khalid and Company, Chartered Accountants, retire and being eligible offer themselves
for reappointment.
PATTERN OF SHAREHOLDING
The pattern of shareholding of the Company as at June 30, 1999 is shown on page 30.
ACKNOWLEDGMENT
The Board wishes to place on record our thanks to our customers, our bankers, credit rating agency and our
shareholders for their undeterred support to the company. We take this opportunity to thank Securities and Exchange
Commission of Pakistan, State Bank of Pakistan and other regulatory authorities for their on-going guidance and
support.
Rawalpindi Lt. Gen. (R) Mohammad Afsar
November 8, 1999 CHAIRMAN AND DIRECTOR
AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed balance sheet of Askari Leasing Limited as at 30 June 1999 and the related profit
and loss account and the statement of changes in financial position, together with the notes forming part thereof,
for the year then ended and we state that we have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit and, after due verification thereof, we
report that:
a) in our opinion, proper books of account have been kept by the company as required by the Companies
Ordinance, 1984;
b)    in our opinion:
i) the balance sheet and profit and loss account together with the notes thereon have been' drawn up
in conformity with the Companies Ordinance, 1984 and are in agreement with the books of account
and are further in accordance with accounting policies consistently applied except for the change as
explained in note 2.3 with which we concur;
ii) the expenditure incurred during the year was for the purpose of the company's business; and
iii) the business conducted, investments made and the expenditure incurred during the year were in
accordance with the objects of the company;
c) in our opinion and to the best of our information and according to the explanations given to us, the balance
sheet, profit and loss account and the statement of changes in financial position, together with the
notes forming part thereof, give the information required by the Companies Ordinance, 1984 in the
manner so required and respectively give a true and fair view of the state of the company's affairs as at
30 June 1999 and of the profit and the changes in financial position for the year then ended; and
d) in our opinion Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 was deducted by the
company and deposited in the Central Zakat Fund established under section 7 of that Ordinance.
ISLAMABAD TASEER HADI KHALID & CO.
November 8, 1999 CHARTERED ACCOUNTANTS
BALANCE SHEET
AS AT JUNE 30, 1999
1999 1998
Note Rupees Rupees
(in '000) (in '000)
ASSETS
Fixed Assets - Tangible 3 21,667 20,750
Long Term Advances 4 9,163 9,056
Deferred Costs 1,363 1,433
Long Term Investments 5 5,000 5,000
Net Investment in Lease Finance
Minimum lease payments 4,762,161 4,156,246
Add: Residual value 692,965 602,960
---------------------- ----------------------
5,455,126 4,759,206
Less: Unearned finance income 1,337,382 972,554
---------------------- ----------------------
Net investment in lease finance 6 4,117,744 3,786,652
Less: Current portion 1,216,053 1,221,712
         : Allowance for potential lease losses 2.4 131,591 120,000
---------------------- ----------------------
2,770,100 2,444,940
Current Assets 7 2,810,393 2,545,973
---------------------- ----------------------
5,617,686 5,027,152
============ ============
CAPITAL AND LIABILITIES
Share Capital and Reserves
Share capital 8 240,000 240,000
Reserves 9 286,740 247,360
Unappropriated profit 1,459 6,438
---------------------- ----------------------
528,199 493,798
Redeemable Capital 10 83,333 166,666
Provision for Deferred Taxation 9.2.1 - 20,000
Long Term Liabilities 11 2,740,377 1,897,162
Current Liabilities 12 2,265,777 2,449,526
Contingencies and Commitments 13
---------------------- ----------------------
5,617,686 5,027,152
The annexed notes form an integral part of these accounts
Rawalpindi Lt. Gen. (R) Mohammed Afsar Taimur Afzal
November 8, 1999 CHAIRMAN AND DIRECTOR EXECUTIVE
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED JUNE 30, 1999
REVENUE
Lease income 14 638,103 593,665
Income from short term investments 47,759 46,003
Income from bank deposits 111,038 75,915
Other income 690 426
---------------------- ----------------------
797,590 716,009
EXPENDITURE
Finance and bank changes 15 665,419 529,952
General and administrative expenses 16 49,679 40,746
Allowance for potential lease losses 11,591 45,330
---------------------- ----------------------
726,689 616,028
---------------------- ----------------------
PROFIT BEFORE TAXATION 70,901 99,981
PROVISION FOR TAXATION
Current 85,001 8,000
Deferred - 20,000
---------------------- ----------------------
8,500 28,000
---------------------- ----------------------
PROFIT AFTER TAXATION 62,401 71,981
Unappropriated Profit brought forward 6,438 1,853
Transferred from General Reserve 115,000 -
---------------------- ----------------------
Profit available for Appropriation 183,839 73,834
APPROPRIATIONS:
Transferred to:
Reserve fund 12,480 14,396
General reserve - 5,000
Deferred tax reserve 46,900 -
Reserve for contingencies 75,000 -
Proposed dividend @ 20% (1998:20%) 48,000 48,000
---------------------- ----------------------
182,380 67,396
---------------------- ----------------------
Un-appropriated Profit carried forward 1,459 6,438
============ ============
Earnings Per Share-Basic and Diluted 18 2.60 3.00
============ ============
The annexed notes form an integral part of these accounts
Rawalpindi Lt. Gen. (R) Mohammed Afsar Taimur Afzal
November 8, 1999 CHAIRMAN AND DIRECTOR EXECUTIVE
STATEMENT OF CHANGES IN
FINANCIAL POSITION
FOR THE YEAR ENDED JUNE 30, 1999
1999 1998
Rupees Rupees
(in '000) (in '000)
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 70,901 99,981
Adjustments for:
Depreciation 7,794 6,117
Allowance for potential lease losses 11,591 45,330
(Profit)/Ioss on disposal of fixed assets (62) 9
Amortisation of deferred costs 979 867
Provision for diminution in value of investments 544 711
---------------------- ----------------------
20,846 53,034
---------------------- ----------------------
Operating profit before working capital changes 91,747 153,015
Increase in:
Short term investments (22,511) (51,645)]
Advances, prepayments and other receivables (32,687) (92,089)
---------------------- ----------------------
(55,198) (143,734)
Increase/(decrease) in current liabilities 66,286 (12,535)
---------------------- ----------------------
Net cash generate all(used)in operating activities 102,835 (3,254)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of operating fixed assets (8,725) (12,062)
Disposal of operating fixed assets 76 2
Long term advances 83 (3,662)
Investment in lease finance (net) (331,092) (857,227)
---------------------- ----------------------
Net cash used in investing activities (339,658) (872,949)
CASH FLOWS FROM FINANCING ACTIVITIES
Deferred costs (909) (2,000)
Redeemable capital (83,333) 252,694
Certificates of Investment 607,497 579,038
Deposits on lease contracts 133,815 78,223
Loans from financial institutions (159,470) 103,970
Dividend paid (45,163) (3,095)
---------------------- ----------------------
Net cash from financing activities 452,437 1,008,830
---------------------- ----------------------
Net increase in cash and cash equivalents 215,614 132,627
Cash and cash equivalents at the beginning of the year 191,341 58,714
---------------------- ----------------------
Cash and cash equivalents at the end of the year 406,955 191,341
============ ============
Rawalpindi Lt. Gen. (R) Mohammed Afsar Taimur Afzal
November 8, 1999 CHAIRMAN AND DIRECTOR EXECUTIVE
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 1999
1.    COMPANY AND ITS OPERATIONS
Askari Leasing Limited ("the company") was incorporated in Pakistan as a public limited company
on August 1, 1993 and is listed on the Karachi, Lahore and Islamabad Stock Exchanges. The
company principally carries on the business of leasing and providing finance.
2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis for Preparation
These accounts have been prepared in accordance with International Accounting Standards as
applicable in Pakistan.
2.2    Accounting Convention
These accounts have been prepared under the historical cost convention.
2.3 Revenue Recognition
The company has changed its revenue recognition policy for lease contracts executed during
the year ended June 30, 1999. The policy has been changed to comply to the provisions of
revised International Accounting Standard for Leases (IAS17) and to adhere to the directive
dated August 1, 1999 issued by the Institute of Chartered Accountants of Pakistan. Consequently,
it has not been considered necessary to give disclosures required under IAS8.
Due to this change in accounting policy, lease income and profit for the year has decreased by
Rs. 18,966,186.
Lease Income
For Lease Contracts Executed to June 30, 1998
At the commencement of lease, total unearned lease income consists of excess of aggregate
lease contract receivable over the cost of the leased asset. At the time a lease is executed, a
portion of unearned lease income which equals the allowance for potential lease losses is charged
to income. The remainder of unearned lease income is taken to income over the term of lease,
starting from the month in which the lease is executed, so as to produce a systematic return on
the net investment in the lease.
For Lease contracts Executed after June 30, 1998
The company follows the "Finance Method" to recognize income on finance leases. At the
commencement of lease, total unearned lease income consists of excess of aggregate lease
contract receivable over the cost of the leased asset. Unearned finance income is amortized
to income over the lease term by applying the annuity method to produce a constant rate of return
on net investment in the lease.
Income on Bank deposits and Investments
Profit on short term investments and bank deposits is accounted for on accrual basis.
2.4    Allowance for Potential Lease Losses
The allowance for potential lease losses is maintained at a level which, in the judgment of the
management, is adequate to provide for potential losses on lease portfolio that can be reasonably
anticipated. The allowance is increased by provisions charged to income and is decreased by
charge off, net of recoveries.
2.5    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 the asset
is written off over its estimated useful life. In respect of additions and deletions of assets during
the year, depreciation is charged proportionately from the month of acquisition and up to deletion
respectively. Minor maintenance and repairs are charged to income as and when incurred.
Major renewals and improvements are capitalized and the assets so replaced, if any, are
retired. Gains and losses on disposal of assets, if any, are taken to profit and loss account.
2.6    Investments
Long term
These are stated at cost. Provision for diminution in value of investments is made, if considered
permanent.
Short term
These are stated at lower of average cost and market value determined on an aggregate portfolio
basis.
2.7    Taxation
Current
The charge for current taxation is based on taxable income at the current tax rates after taking
into account tax credits and tax rebates available, if any.
Deferred
Deferred tax is accounted for by using the liability method on all major timing differences arising
due to recognition of lease income by using different methods both for tax and accounting
purposes.
2.8 Deferred Costs
  These are written off within a period of five years from the date of occurrence.
2.9 Foreign Currency Transactions
Transactions in foreign currencies are accounted for in rupees at the rates of exchange ruling
on the date of the transactions. Monetary assets and liabilities in foreign currencies are translated
into rupees at the rate of exchange ruling at the balance sheet date, except for liabilities covered
under State Bank of Pakistan exchange risk cover scheme, which are translated at contracted
rates. Exchange gains and losses are taken to the profit and loss account.
2.10 Staff Retirement Benefits
The company operates a Staff Provident Fund scheme for all eligible employees. Equal monthly
contributions are made to the fund by the company and the staff at the rate of 10% of the basic
salary.
2.11 Offsetting of Financial Assets and Financial Liabilities
Financial assets and financial liabilities are offset at the year ended June 30, 1999 and net amount
is reported in the balance sheet, if the company has a legally enforceable right to set off the
recognized amounts and also intends to settle the liabilities simultaneously. Corresponding income
on assets and charge on liabilities are also reported at net amount.
3. FIXED ASSETS- TANGIBLE
Cost Cost of Cost Accumulated Book Value Depreciation Rate of
Particulars as at additions / as at depreciation as as at for the year/ depreciation
July 1, 1998 (deletions) June30, 1999 at June30, 1999 June 30, 1999 (on deletions) per annum
Leasehold improvements
and structures 12,430 2,682 15,112 8,846 6,266 3,578 33%
Furniture 1,783 238 2,021 635 1,386 191 10%
Office equipment 12,636 2,938 15,285 7,063 8,222 2,557 20%
(289) (276)
Motor vehicles 7,046 2,868 9,914 4,121 5,793 1,468 20%
----------------- ----------------- ----------------- ----------------- ----------------- -----------------
1999 (Rs) 33,895 8,726 42,332 20,665 21,667 7,794
(289) (276)
=========== =========== =========== =========== =========== ===========
1998 (Rs) 21,860 12,062 33,895 13,145 20,750 6,117
(27)
=========== =========== =========== =========== =========== ===========
3.1 Disposals of fixed assets during the year:
Description Cost Accumulated Book value Sale Profit/(loss) Mode of Particulars
depreciation proceeds on disposal disposal of purchaser
Office equipment
Computer - 486/50
200MB HDD 110 110 -- 13 13 By negotiation Mr. Nasarullah Niazi,
Company employee
Air conditioner 29 29 -- 11 11 By negotiation Mr. Wasi, Rawalpindi
Computer-486 sx
130 MB HDD 56 56 -- 10 10 By negotiation Aftab Malik,
Company employee
Cannon Photo
Copier NP 1011 80 73 7 40 33 Trade In Shirazi Trading Co.,
Lahore
Mobile phone 14 8 6 1 (5) Trade In M/S Choice, Lahore
----------------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
1999: (Rs) 289 276 13 75 62
=========== =========== =========== =========== =========== =========== ===========
1998: (Rs) 27 16 11 2 (9)
=========== =========== =========== =========== =========== =========== ===========
4. LONG TERM ADVANCES- Considered good
1999 1998
Rupees Rupees
(in '000) (in '000)
Chief Executive 2,906 1,829
Executives 6,047 6,450
Others 1,209 1,966
----------------- -----------------
10,162 10,245
Less: Instalments recoverable within one year 999 1,189
----------------- -----------------
9,163 9,056
=========== ===========
These are analysed as follows:
Outstanding for over three years 9,072 8,908
Others 91 148
----------------- -----------------
9,163 9,056
=========== ===========
Maximum aggregate amount outstanding
during the year in respect of Chief Executive and Executives 9,329 9,461
=========== ===========
4.1 Advance to the Chief Executive represents an outstanding balance of house loan of Rs. 2,905,609
(1998: Rs. 1,768,500) and a personal advance of Rs. Nil (1998: Rs. 60,500) given in accordance
with the terms of agreement. The approval of the regulatory agency requires recovery of house
loan to be made within ten years. House loan carries a mark-up of 10% per annum.
Advances to Executives represent house, transport and personal loans granted in accordance
with Staff Service Regulations. These are repayable within a period of 2 to 20 years and carry
mark-up at rates ranging between 5% to 7.5% per annum.
5. LONG TERM INVESTMENTS
This represents investment in 500,000 ordinary shares of Rs. 10 each as 10% investment in the
equity of Askari General Insurance Company Limited, an associated listed company {market
value as at June 30, 1999 Rs. 6,000,000 (1998: Rs. 5,500,000)}.
Investment in associated company is shown at cost. Had the equity method been applied, the
total profit for the year would have been higher by Rs. 927,969 (1998: Rs. 575,156) and carrying
value of investment would be Rs. 6.608 million (1998: Rs. 5.680 million).
6. NET INVESTMENT IN LEASE FINANCE
This includes lease financing provided to the following customers having exposure of more than
20% of the company's equity at the year end.
(Rupees)
Zaman Energy Limited 303 Million
Gatron Industries Limited 160 Million
Shell Pakistan Limited 152 Million
Gharibwal Cement Limited 139 Million
Sui Southern Gas Company Limited 131 Million
Dewan Salman Fibres Limited 131 Million
1999 1998
Rupees Rupees
(in '000) (in '000)
7. CURRENT ASSETS
Currrent portion of net investment in lease finance 1,216,053 1,221,712
Short term investment 7.1 902,718 880,751
Advances, prepayments and other receivables 7.2 284,666 252,169
Cash and bank balances 7.3 406,956 191,341
----------------- -----------------
2,810,393 2,545,973
=========== ===========
7.1 Short term Investments
Federal Investment Bonds 7.1.1 14,000 170,000
Treasury Bills 7.1.2 29,323 -
Musharika financing 7.1.3 64 1 864
Financing agreements 7.1.3 22,722 24 799
Repurchase agreements 7.1.3 1,894 2 058
Short term placements 7.1.4 661,738 495.46
Term Finance Certificates 7.1.5 151,555 47 980
Equity investment 7.1.6 21,422 1 594
N.IT units - 137 000
----------------- -----------------
902,718 880,751
=========== ===========
7.1.1 This represents investment in Federal Investment Bonds (FIBs) on which profit is
receivable semi annually @ 15% per annum. These are stated net of purchase and
resale agreements amounting to Rs. 260 million. These agreements were executed to
fulfil statutory liquidity requirements and cost 1.25 percent per annum to the company.
7.1.2 Treasury Bills have been issued by the Government of Pakistan. These have been
purchased at discounted price from money market and have a yield of 13.95 percent
per annum approximately. These are stated net of un-amortized discount as on June
30, 1999.
7.1.3 These are secured against lien on shares of listed companies and Certificates of
Investment (COIs) issued by the company. The expected rate of profit ranges from 17%
to 22.6% per annum.
7.1.4 These represent placements against Government securities, Term Finance Certificates,
  shares and unsecured placement of funds with financial institutions. Rate of return on
  these placements ranges between 14.75% to 19% per annum.
1999 1998
Rupees Rupees
(in '000) (in '000)
7.1.5 Term Finance Certificates-quoted
Gatron Industries Limited 19,992 20,000
4,000 certificates of Rs. 5,000 each.
ICI Pakistan Limited 92,254 27,980
21,648 (1998:5,596) certificates of Rs. 5,000 each
Saudipak Leasing Company Limited 9,181 -
1,800 certificates of Rs. 5,000 each
First International Investment Bank Limited 500 -
100 certificates of Rs. 5,000 each
Sui Southern Gas Company Limited 20,000 -
200 certificates of Rs. 100,000 each
Packages Limited 10,000 -
2,000 certificates of Rs. 5,000 each
----------------- -----------------
151,927 47,980
Less: Provision for diminution in value 372 -
----------------- -----------------
151,555 47,980
=========== ===========
The aggregate market value/agreed sale price of Term Finance Certificates is
Rs. 152.673 million (1998: Rs. '48.49 million).
These are stated net of purchase and resale agreements of Rs. 25 million TFCs of
Dewan Salman Fibres Limited.
7.1.6 Equity investment
Cost of investment 24,837 4,837
Less: Provision for diminution in value 3,415 3,243
----------------- -----------------
21,422 1,594
=========== ===========
This represents investment in 352,600 ordinary shares of Rs. 10 each of Shifa International
Hospitals Ltd. {Market value Rs. 1,410,400 (1998: Rs. 1,586,700)} and 500 ordinary
shares of Rs. 10 each of Sitara Energy Ltd. {Market Value Rs. 11,750 (1998: Rs. 7,500)}.
This also includes 2 million "A" class shares of Pakistan Telecommunication Corporation
Limited purchased under resale arrangements. Agreed sale price of these shares is
Rs. 20.479 million.
7.2    Advances, prepayments and other receivables
Advances to employees 4 999 1,189
Advance against leases 7.2.1 8,178 126,387
Advance income tax 35,837 43,224
Recoverable from tax department - paid against demands 58,549 -
Other advances 12,251 5,026
Prepayments 2,578 9,346
Accrued income 144,353 47,085
Amounts receivable from associated undertakings 7.2.2 8,604 11,095
Others 7.2.3 13,317 8,817
----------------- -----------------
284,666 252,169
=========== ===========
7.2.1 This represents advances given to suppliers for assets to be leased on behalf of lessees.
  Lessees are being charged mark-up of 55 to 63 paisas per thousand per day against
  these advances.
7.2.2 These are made up as follows:
Army Welfare Trust 7,927 10,633
Askari General Insurance Co. Limited 677 462
----------------- -----------------
8,604 11,095
=========== ===========
The maximum aggregate amount receivable at the end of any month during the year
from associated undertakings was Rs. 11,095,760 (1998: Rs. 12,071,802).
7.2.3 This includes an amount of Rs. 934,852 (1998: Rs. 4,220,211 ) receivable from the State
Bank of Pakistan on premature termination of foreign exchange risk contracts.
1999 1998
Rupees Rupees
(in '000) (in '000)
7.3    Cash and Bank Balances
Cash in hand 74 83
Cash at bank on
Current accounts with:
State Bank of Pakistan 33,497 27,337
Commercial banks 3,929 847
Deposit accounts 358,568 160,726
Escrow account 10,888 2,348
----------------- -----------------
406,882 191,258
----------------- -----------------
406,956 191,341
=========== ===========
8. SHARE CAPITAL
8.1 Authorized share capital
50,000,000 ordinary shares of Rs. 10/- each 500,000 500,000
=========== ===========
8.2    Issued, subscribed and paid up share capital
20,000,000 ordinary shares of Rs. 10/-
each fully paid in cash. 200,000 200,000
4,000,000 ordinary shares of Rs. 10/-
each issued as fully paid bonus shares. 40,000 40,000
----------------- -----------------
240,000 240,000
=========== ===========
8.3 Army Welfare Trust held 12,874,800 (1998: 12,874,800) ordinary shares of Rs. 10 each as on
June 30, 1999.
9. RESERVES
1999 1998
(Rupees in '000) (Rupees in '000)
Reserve for Deferred Tax  Reserve for Reserve for
General Fund Reserve Contingencies Total General  Reserve  Deferred Tax  Reserve for  issue of Bonus  Total
Reserve (Note 9.1) (Note 9.2) (Note 9.3) Reserve  Fund  Reserve  Contingencies  Shares
Balance as at
July 1 171,000 76,360 - - 247,360 166,000 61,964 - - 40,000 267,964
Transferred from
provision for
deferred taxation - - 20,000 - 20,000 - - - - - -
Transferred
from (to) Profit and
loss account (115,000) 12,480 46,900 75,000 19,380 5,000 14,396 - - - 19,396
----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
56,000 88,840 66,900 75,000 286,740 171,000 76,360 - - 40,000 287,360
Bonus shares
issued ......... - - - - - - - - - 40,000 40,000
----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
Balance as at
June 30 56,000 88,840 66,900 75,000 286,740 171,000 76,360 - - - 247,360
=========== =========== =========== =========== =========== =========== =========== =========== =========== =========== ===========
9.1 Reserve fund
The reserve fund is created by transferring 20% of the profit after tax to the reserve fund. This reserve is required to be maintained under the regulations
for Non Banking Financial Institutions.
9.2 Deferred tax reserve
The International Accounting Standard for Taxes (IAS12) requires that full amount of deferred tax liability should be recognized during the year in which it
arises. Securities & Exchange Commission of Pakistan in its circular No. 16 dated September 10, 1999 states that in order to achieve compliance with the
revised IAS12, all leasing companies during each of the five financial years commencing from July 1, 1998 and ending on June 30, 2003 should provide
for deferred tax liability arising in these years alongwith an additional amount of one-fifth of the unprovided deferred tax liability for the previous years. The
circular further states that if the amount required to be provided for deferred taxation is transferred to a deferred tax reserve, then such transfer would be
considered as compliance to the requirement of IAS12.
The total deferred tax liability as of June 30, 1999 amounts to Rs. 159.3 million (1998: Rs. 135.4 million). An amount of Rs. 46.9 million has been transferred
to the deferred tax reserve (Rs. 23.9 million for the current year and Rs. 23 million against the unprovided liability for deferred taxation for previous years.)
1999 1998
Rupees Rupees
(in '000) (in '000)
9.2.1 Provision for deferred taxation
Opening balance 20,000 -
Provided during the year - 20,000
------------------ ------------------
20,000 20,000
Transferred to deferred tax reserve 20,000 -
------------------ ------------------
Closing balance - 20,000
========== ==========
The provision of Rs. 20 million for deferred tax has been reclassified and transferred to deferred tax reserve for consistency.
9.3 Reserve for contingencies
This is a specific purpose reserve created to provide for possible losses on lease rentals receivables, which at present is not available for distribution.
10. REDEEMABLE CAPITAL
1999 1998
Rupees Rupees
(in '000) (in '000)
Term Finance Certificates 166,666 250,000
Less: Current portion 83,333 83,334
------------------ ------------------
83,333 166,666
========== ==========
These represent non-participatory and registered Term Finance Certificates issued by the company
to commercial banks and financial institutions. Profit on these Term Finance Certificates is payable
on semi annual basis at an expected rate of 17.1% per annum. Term Finance Certificates are
redeemable in six semi annual instalments. These are secured by charge on specific
leased assets and related receivables. Face value of each certificate is Rs. 1 million.
11. LONG TERM LIABILITIES
Certificates of Investment 11.1 2,202,496 1,493,570
Deposits on lease contracts 11.2 435,214 317,056
Long term loans 11.3 102,667 86,536
------------------ ------------------
2,740,377 1,897,162
========== ==========
11.1 Certificates of Invesment
Balance as at June 30 3,567,681 2,960,184
Less: Current portion 1,365,185 1,466,614
------------------ ------------------
2,202,496 1,493,570
========== ==========
Balance of long term Certificates of Investment is made up as follows:
Certificates of Investment 2,154,023 1,446,774
Profit payable 48,473 46,796
------------------ ------------------
2,202,496 1,493,570
========== ==========
The Certificates of Investment (COIs) are issued for a period of three months to five years on a
profit and loss sharing basis at expected rates of profit ranging from 13% to 18.6% per annum.
11.2 Deposits on lease contracts
Balance as at June 30 521,026 387,212
Less: Current portion 85,812 70,156
------------------ ------------------
435,214 317,056
========== ==========
These represent security deposits received from lessees under lease contracts and are
refundable/adjustable at the expiry/termination of the respective leases.
Long term loans
These are made up as follows:
Emirates Bank International P.J.S.C 11.3.1 49,997 83,332
Emirates Bank International P.J.S.C 11.3.2 32,373 40,000
ANZ. Grindlays Bank Limited 11.3.3 4,167 12,500
The Bank of Punjab 11.3.4 32,877 -
ANZ Grindlays Bank Limited 11.3.4 30,942 -
Muslim Commercial Bank Limited 11.3.4 32,877 -
------------------ ------------------
183,233 135,832
Less: Current portion 80,566 49,296
------------------ ------------------
102,667 86,536
========== ==========
11.3.1 This represents a term finance facility of Rs. 100 million. The facility is repayable
alongwith mark-up in 12 quarterly instalments. The facility carries mark-up of 47.26
paisas per thousand per day, and is secured by first charge on specific leased assets
and related receivables.
11.3.2 This represents a facility of Rs. 40 million repayable in 48 equal monthly instalments.
The facility carries a mark-up of 46.58 paisas per thousand per day and is secured by
assignment of lease rentals.
11.3.3 This represents a term finance facility of Rs. 25 million repayable in six semi annual
  instalments. The facility carries a mark-up of 47.95 paisas per thousand per day and
  is secured by first charge on specific leased assets and related receivables.
11.3.4 These represent discounting of promissory notes of Shell Pakistan Limited representing
  rentals receivable. These carry yield of 18.4% per annum and are payable in quarterly
  instalments within 3 years commencing from January 7, 1999. These are secured
  against hypothecation of assets leased to and assignment of lease rentals receivables
  from Shell Pakistan Limited.
1999 1998
Rupees Rupees
(in '000) (in '000)
12. CURRENT LIABILITIES
Current portion of:
- Redeemable capital 10.0 83,333 83,334
- Certificates of Investment 11.1 1,365,185 1,466,614
- Deposits on lease contracts 11.2 85,812 70,156
- Long term loans 11.3 80,566 49,296
Short term facilities 12.1 359,898 566,768
Advance receipts against leases 71,487 15,335
Creditors 6,825 13,362
Accrued mark-up on loans 9,349 17,701
Accrued mark-up on Certificates of Investment 120,032 78,510
Other accrued liabilities 12.2 369 399
Provision for taxation 27,099 35,400
Unclaimed dividend 3,008 171
Proposed dividend 48,000 48,000
Other liabilities 4,814 4,480
-------------------- --------------------
2,265,777 2,449,526
========== ==========
12.1 These are made up as follows:
Standard Chartered Bank 12.1.1 39,939 91,831
The Hong Kong and Shanghai Banking
Corporation Limited 12.1.2 30,000 49,659
Habib Bank Limited 12.1.3 100,000 -
Soneri Bank Limited 12.1.4 50,000 -
United Bank Limited 12.1.5 99,959 -
The Hong Kong and Shanghai Banking
Corporation Limited 12.1.6 40,000 -
American Express Bank Limited - 53,793
Credit Agricole Indosuez - 733
Credit Agricole Indosuez - 45,000
Citibank N.A. - 77,950
ABN Amro Bank N.V. - 17,822
Others - 229,980
-------------------- --------------------
359,898 566,768
========== ==========
12.1.1 This running finance facility of Rs. 40'million (1998:'Rs. 90 million)is secured against
specific leased assets and related receivables and carries mark-up of 45.21 paisas
per thousand per day.
12.1.2 This running finance facility of Rs. 35 million (1998: Rs. 50 million) is for a period of
one year on a roll over basis and is secured against specific leased assets and related
receivables. It carries mark-up ranging from 40.41 paisas to 46.58 paisas per thousand
per day.
12.1.3 This represents an unsecured finance facility obtained for a period of 3 months and
is payable on September 30, 1999. It carries a mark-up rate of 34.66 paisas per
thousand per day.
12.1.4 This unsecured finance facility for a period of 2 months is repayable on of July 3, 1999.
Mark-up rate on this facility is 38.36 paisas per thousand per day.
12.1.5 This is a running finance facility of Rs. 100 million having a mark-up rate ranging from
40 paisas to 47.95 paisas per thousand per day and is secured against specific leased
assets and related receivables.
12.1.6 This demand finance facility of Rs. 40 million is for a period of one year on a roll over
  basis and is secured against specific leased assets and related receivables. It carries
  mark-up ranging from 39.73 paisas to 47.95 paisas per thousand per day.
12.2 This includes an amount of Rs. 109,500 (1998: Rs. 65,142) due to an associated
undertaking.
13. CONTINGENCIES AND COMMITMENTS
The company has given undertakings on behalf of lessees for the payment of Rs. 187.994
million (1998: Rs. 53 million) approximately for the retirement of L/C documents of the assets
to be leased by the company.
14. LEASE INCOME
Lease income is recognized in accordance with the accounting policy explained in Note 2.3.
1999 1998
Rupees Rupees
(in '000) (in '000)
15. FINANCE AND BANK CHARGES
Profit on Certificates of Investment 557,496 436,038
Mark-up on bank borrowings 104,724 89,542
Bank charges and commission 3,199 4,372
--------------------- ---------------------
665,419 529,952
============ ============
16.      GENERAL AND ADMINISTRATIVE EXPENSES
Salaries, allowances and benefits 16.1 17,070 14,831
Rent 5,591 3,711
Staff training 81 561
Travelling and vehicle running 2,200 2,148
Insurance of operating assets 2,035 1,500
Legal and professional charges 2,127 2,080
Telephone and utilities 4,260 3,522
Donations 16.3 20 125
Subscription 58 103
Auditors' remuneration 16.4 331 196
Printing and stationery 1,433 1,012
Depreciation 7,794 6,117
Repairs and maintenance 725 368
Advertisement 3,929 2,505
Provision for diminution in value of investments 544 711
Amortization of deferred costs 979 867
General expenses 502 389
--------------------- ---------------------
49,679 40,746
============ ============
16.1 This includes Rs. 487,431 (1998: Rs. 431,760) contributed to the staff provident fund scheme.
16.2 Number of employees at the end of the year was 56 (1998:79)
16.3 The directors and their spouses do not have any interest in the donee institutions.
16.4 Auditors' Remuneration
Audit fee 90 80
Tax advisory services 210 96
Out of pocket expenes 31 20
--------------------- ---------------------
331 196
============ ============
17. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES
The aggregate amount charged in the accounts for remuneration, including certain benefits, to the
Directors, Chief Executive and other Executives of the company is as follows:
1999 (Rs. in '000) 1998 (Rs. in '000)
Directors Chief Executive Executives Directors Chief Executive Executives
Managerial
remuneration - 534 3,189 - 534 2,274
Housing and
utilities - 240 1,716 - 240 1,363
Medical
expenses - 54 309 - 54 247
Provident fund
contribution - 44 273 - 44 206
Meeting fees 15 - - 23 - -
--------------------- --------------------- --------------------- --------------------- --------------------- ---------------------
15 872 5,487 23 872 4,090
============ ============ ============ ============ ============ ============
No of persons  8 1 17 8 1 13
============ ============ ============ ============ ============ ============
Company maintained cars are provided to the Chief Executive and other eligible Executives.
18. EARNINGS PER SHARE-Basic and Diluted
Net profit for the year attributable to ordinary
shareholders 62,401 71,981
============ ============
Weighted average number of ordinary shares
outstanding during the year 24,000 24,000
============ ============
Earnings Per Share-Basic and Diluted 2.60 3.00
============ ============
19. STATEMENT OF CHANGES IN EQUITY
(Rs. in '000)
Shares Reserve for Reserve General Deferred tax Reserve for Unappropriated
capital issue of bonus Fund Reserve Reserve Contingencies profit
shares
Balance as at
July 1, 1997 200,000 40,000 61,964 166,000 - - 1,853
Net profit for the year 71,981
Proposed dividend (48,000)
Transferred to:
- Reserve fund 14,396 (14,396)
- General reserve 5,000 (5,000)
Transferred from:
- Reserve for issue
of bonus shares  40,000 (40,000)
--------------------- --------------------- --------------------- --------------------- --------------------- --------------------- ---------------------
Balance as at
30-Jun-98 240,000 - 76,360 171,000 - - 6,438
Net profit for the year 62,401
Transferred from:
- General reserve (115,000) 115,000
- Deferred tax liability 20,000
(Note 9.2.1)
Proposed dividend (48,000)
Transferred to:
- Reserve fund 12,480 (12,480)
- Deferred tax reserve 46,900 (46,900)
Reserve for contingencies 75,000 (75,000)
--------------------- --------------------- --------------------- --------------------- --------------------- --------------------- ---------------------
Balance as at
30-Jun-99 240,000 - 88,840 56,000 66,900 75,000 1,459
============ ============ ============ ============ ============ ============ ============
20. INTEREST RATE RISK
Exposure to interest rate risk and sensitivity of financial liabilities and financial assets of company are
summarized below:
(Rs. in '000)
Total Within one More than one Not exposed Interest
year and less than to interest rate Rate
five years risk
ASSETS
Long Term Advances 10,162 999 9,163 - 5.0% to 10.0%
Long Term Investments 5,000 - - 5,000 -
Net Investment in
Lease Finance 3,986,153 1,216,053 2,770,100 - 18.1% to 25.0%
Short term investments 902,718 881,296 - 21,422 13.9% to 19.0%
Advances, prepayments
and other receivables 283,667 8,178 - 275,489 18.1% to 25.0%
Cash and bank balances 406,956 358,568 - 48,388 10.5% to 12.5%
--------------------- --------------------- --------------------- ---------------------
5,594,655 2,465,094 2,779,263 350,299
--------------------- --------------------- --------------------- ---------------------
LIABILITIES
Redeemable Capital 166,666 83,333 83,333 - 17.10%
Certificates of Investment 3,567,681 1,365,185 2,202,496 - 13% to 18.6%
Deposits on lease contracts 521,027 - - 521,027 -
Long term loans 183,233 80,566 102,667 - 18.4% to 17%
Short term facilities 359,898 359,898 - - 12.6%to 17.5%
Creditors and other
accrued liabilities 290,982 - - 290,982 -
--------------------- --------------------- --------------------- ---------------------
5,089,487 1,888,982 2,388,496 812,009
--------------------- --------------------- --------------------- ---------------------
Total interest rate sensitivity gap 576,112 390,767 (461,710)
============ ============ ============
Cumulative interest rate sensitivity gap 576,112 966,879 505,169
============ ============ ============
21. CREDIT RISK AND CONCENTRATION OF CREDIT RISK
Credit risk is the risk that if a financial obligation will not be honoured by a counterparty then it will result
in a loss: The company follows various methodologies to control such credit risk. This involves monitoring
of credit exposure, assessment of credit worthiness of client, assessment of the quality of the assets
leased and diversification both sectoral and geographic. Concentration of credit risk arises when the
company is exposed substantially to particular industry, geographic location or class of assets resulting
in the inability of the customers to meet their obligations in case of adverse changes due to economic,
political or other conditions. The company follows internal guidelines, duly approved by Board of Directors,
and external guidelines as laid down by regulatory bodies.
The composition of lease portfolio is as follows:
1999
Rupees Percentage
(in '000) Share
SECTOR
Sugar and Allied 56,598 1.37%
Cement 347,913 8.45%
Energy, Oil and Gas 853,318 20.72%
Steel, Engineering and Automobiles 36,558 0.89%
Electrical and Electrical Goods 15,702 0.38%
Transport and Communication 314,978 7.65%
Chemical, Pharmaceutical and Fertilizers 476,045 11.56%
Textiles 563,655 13.69%
Paper and Board 3,687 0.09%
Banaspati and Allied Industries 1,000 0.02%
Leather and Footwear 31,295 0.76%
Food, Tobacco and Beverages 137,290 3.33%
Glass and Ceramics 260,861 6.34%
Hotels 23,053 0.56%
Health Care 7,457 0.18%
Constructions 12,901 0.31%
Dairy and Poultry 765 0.02%
Financial Institutions 77,664 1.89%
Security Services 50,519 1.23%
Consumer facilities 399,186 9.69%
Miscellaneous 447,299 10.86%
--------------------- ---------------------
4,117,744 100.00%
============ ============
22. FAIR VALUE OF FINANCIAL INSTRUMENTS
Carrying value of financial instruments approximates the fair value except for long term investments as
given in note 5.
23. TRANSACTIONS WITH ASSOCIATED UNDERTAKINGS
1999 1998
Rupees Rupees
(in '000) (in '000)
These comprise of:
Askari Commercial Bank Limited
Balance on deposit accounts as at June 30 344,147 121,371
Profit on deposit accounts 8,975 1,548
Askari General Insurance Company Limited
Insurance premium paid 6,976 1,736
Insurance claims received 337 7
Balance of Certificates of Investment as at June 30 21,636 21,600
Profit on Certificates of Investments - 1,122
Army Welfare Trust
Balance of Certificates of Investment as at June 30 2,000 1,900
Profit on Certificates of Investments 236 353
Arrangement fee paid - 397
Rent paid for office premises 4,567 3,654
Mobil Askari Lubricants (Pvt.) Limited
Amount due against leases as at June 30 4,482 8,092
Finance income charged during the year 1,554 4,093
Askari Aviation (Pvt.) Limited
Balance of Certificates of Investment as at June 30 3,000 2,000
Profit on Certificate of Investments 170 248
Askari Associates (Pvt.) Limited
For registrar services 438 346
Askari Information Systems (Pvt.) Limited 52 -
For consultancy services
24. TAXATION
Income tax assessments of the company have been finalised by the income tax authorities up to and
including the assessment year 1998-99 (accounting year ended June 30, 1998) creating tax demands
of Rs. 91.5 million. The company is contesting these assessments at the appellate forum and the
management is confident that these demands will be deleted by the appellate authorities.
25. GENERAL
25.1 Figures have been rounded off to the nearest thousand rupees.
25.2 Corresponding figures have been rearranged, wherever necessary, for purposes of comparison.
Rawalpindi Lt. Gen. (R) Mohammad Afsar Taimur Afzal
November 8, 1999 CHAIRMAN AND DIRECTOR CHIEF EXECUTIVE
PATTERN OF SHAREHOLDING
AS AT JUNE 30, 1999
Number of              Share Holdings Total
Shares Holders From To Shares Held
53 1 100 3,960
204 101 500 53,740
297 501 1000 191,480
830 1001 5000 1,503,100
73 5001 10000 505,760
75 10001 110000 1,737,080
1 110001 210000 121,800
1 510001 610000 609,580
1 1310001 1410000 1,334,460
1 5010001 5110000 5,064,240
1 12810001 12910000 12,874,800
--------------------- --------------------- --------------------- ---------------------
1537 24,000,000
============ ============ ============ ============
Categories of Number of Shares Percentage
Shareholders Shareholders Held
Individual 1507 3,570,480 14.88
Investment Company 3 58,200 0.24
Insurance Company 5 915,580 3.81
Joint Stock Company 10 6,465,780 26.94
Financial Institution 5 68,360 0.28
Modaraba Company 3 24,300 0.10
Foreign Company 2 8,100 0.04
Charitable Trust. 2 12,889,200 53.71
--------------------- --------------------- ---------------------
Totals 1537 24,000,000 100.00
============ ============ ============
FINANCIAL HIGHLIGHTS
1995-1999
(Rupees in '000)
Jun 95 Jun 96 Jun 97 Jun 98 Jun 99
(6 months) Full Year Full Year Full Year Full Year
Audited Audited Audited Audited Audited
BALANCE SHEET
Authorised Capital 500,000 500,000 500,000 500,000 500,000
Paid-up Capital 100,000 200,000 200,000 240,000 240,000
Total Equity 194,004 349,742 469,816 493,798 528,199
Allowance for potential lease losses 14,067 31,287 74,670 120,000 131,591
Long Term & Deferred Liabilities 430,123 1,238,570 2,118,780 2,083,829 2,823,710
Current Liabilities 616,539 1,119,343 1,340,280 2,449,526 2,265,777
Net Investment In Leases 896,023 1,915,476 2,929,425 3,786,652 4,117,744
Current Assets 653,884 1,302,790 1,782,176 2,545,973 2,810,393
Total Assets 1,310,733 2,738,942 4,003,546 5,027,152 5,617,686
INCOME STATEMENT
Lease Income 86,728 312,582 524,528 593,665 638,103
Total Revenue 114,480 379,289 630,976 716,009 797,590
Financial Expenses 67,343 236,489 420,440 529,952 665,419
Profit before Taxation 37,029 100,238 135,075 99,981 70,901
Profit after Taxation 29,929 95,738 120,075 71,981 62,401
FINANCIAL RATIOS
Earnings per Share (before tax) 7.41 6.68 6.75 4.54 2.95
Return on Equity * 41.36% 36.87% 32.96% 20.75% 13.42%
Leverage 5.47 6.83 7.52 9.42 9.64
* Calculated on profit' before taxation and on annualised basis.
BRANCH NETWORK
KARACHI 2 - Maqboolabad,
Block No. 7 & 8,
Main Shahra-e-Faisal, Karachi
Telephones: (021) 4529264-5, 4529258-9
Fax (021) 4537150
LAHORE 4 Corps, Garrison Mess,
Tufail Road, Lahore Cantt., Lahore
Telephones: (042) 6673384, 6667784-5
Fax: (042) 6673385
ISLAMABAD 2nd Floor, Ali Plaza, l-E,
Jinnah Avenue, Islamabad.
Telephones: (051) 822037, 826368-9
Fax: (051) 821399
PESHAWAR 32, The Mall, Peshawar,
Telephones: (091) 279497, 275421
Fax: (091) 275423
LIAISON OFFICES
FAISALABAD Kachari Road, Faisalabad,
Telephones: (041) 601595~6
Fax: (041) 601597
MULTAN 2nd Floor, Jalil Center
Abdali Road, Multan,
Telephones: (061) 547862
Fax: (061) 547862
SIALKOT
Paris Road Sialkot
Telephones: (0423) 263344, 263692
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