| Capital Assets Leasing Corporation Limited |
|
|
|
|
|
|
|
|
| Annual
Report 1999 |
|
|
|
| CONTENTS |
|
|
| Company
Information |
|
|
| Notice
of Meeting |
|
|
| Directors'
Report |
|
|
| Auditors' Report |
|
|
|
| Balance Sheet |
|
|
|
| Profit
& Loss Account |
|
|
| Cash
Flow Statement |
|
|
| Notes
to the Accounts |
|
|
| Pattern
of Shareholding |
|
|
|
|
| COMPANY
INFORMATION |
|
|
| Board
of Directors |
|
Mr. Salman Qureshi |
(Chairman) |
|
|
|
Mr. Nisar A. Memon |
|
|
|
Mr. Mohammad Kalim |
|
|
|
Chaudhry Fazal-i-Husain |
|
|
|
Mr. Aamir Qureshi |
|
|
|
|
Mr. Anwar Shafi |
|
|
|
|
Mr. Jehangir Shah |
|
|
|
|
|
|
|
| Chief
Executive Officer |
|
Mr. Jehangir Shah |
|
(Managing Director) |
|
| 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 Softlink (Pvt.)
Limited |
|
|
|
Wings Arcade, 1-K
(Commercial) |
|
|
|
Model Town, Lahore. |
|
|
|
Tel. # 5839180-2 Fax #
5837061 |
|
|
|
|
| Legal Advisor |
|
Chaudhry Fazal-i-Husain |
|
|
|
M/s Mohsin Tayebally
& Co., Advocates |
|
|
|
M/s Rizvi, Isa & Co.,
Advocates |
|
|
|
| Main Bankers |
|
|
Allied Bank of Pakistan |
|
|
|
|
Askari Commercial Bank
Limited |
|
|
|
|
First Women Bank Limited |
|
|
|
|
Gulf Commercial Bank
Limited |
|
|
|
|
Muslim Commercial Bank
Limited |
|
|
|
|
National Bank of Pakistan |
|
|
|
|
Platinum Commercial Bank
Limited |
|
|
|
|
Prime Commercial 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 7TH ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the seventh (7th) Annual General Meeting of the
Shareholders of |
|
| CAPITAL
ASSETS LEASING CORPORATION LIMITED will be held at the Registered Office |
|
| of
the Company located at 10-1 l/B, 3rd Floor, LDA Flats, Lawrence Road, Lahore
on Thursday, |
|
| 30th
December 1999 at 10:30 a.m. to transact the following business: |
|
|
| 1.
To confirm the minutes of second Extra Ordinary General Meeting held on June |
|
| 21, 1999. |
|
|
|
|
|
|
| 2.
To receive, consider and adopt the Audited Accounts of Company for the year |
|
| ended
June 30, 1999 together with the Directors' and Auditors' Reports thereon. |
|
|
|
|
| 3.
To approve, as recommended by the Directors in their meeting held on Friday, |
|
| Dec.
03, 1999 the payment of Cash Dividend ~ 5% i.e. 0.50 paisa per share for |
|
| the
year ended June 30, 1999. |
|
|
|
|
|
|
| 4.
To appoint Auditors of the Company and to fix their remuneration. The present |
|
| Auditors
M/s Ebrahim & Co. Chartered Accountants, retire and being eligible |
|
| offer
themselves for reappointment. |
|
|
|
| Special
Business |
|
|
|
| 5.
To approve the remuneration of Chief Executive. |
|
|
|
|
|
| 6.
To transact any other business with the permission of the Chair. |
|
|
|
|
|
BY ORDER OF THE BOARD |
|
|
|
|
|
|
| Lahore |
|
|
|
(Rizwan Akhtar) |
|
| December
08, 1999 |
|
|
Company Secretary |
|
|
|
| Notes: |
|
|
| 1.
The Share Transfer Books of the Company will remain closed from 24th
December, |
|
| 1999
to 30th December, 1999 (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 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
identity. 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 shareholders alongwith this notice. |
|
|
|
|
| 5.
Members are requested to notify the changes of address, if any, to the
Company's Share |
|
| Registrars
M/s. Softlink (Pvt.) Ltd. immediately. |
|
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
Board of Directors is pleased to place before you the 7th Annual Report
together with the |
|
| Audited
Accounts of the company for the year ended June 30, 1999. |
|
|
| Financial
Results: |
|
Notes |
(Rs. in 000) |
|
|
| Gross revenues |
|
|
|
31,511 |
|
| Total expenses |
|
|
|
22,112 |
|
|
|
|
------------------ |
|
| Operating
profit for the year |
|
|
9,399 |
|
| Provisions |
|
|
|
| for
potential losses (Lease) |
|
(0,986) |
|
| for
potential losses (Morabaha/Short-term) |
|
3,272 |
|
| for
taxation (including Deferred Taxation) |
|
3,695 |
|
|
|
|
5,981 |
|
|
|
|
------------------ |
|
| Profit
after taxation |
|
|
3,418 |
|
| Unappropriated
profits brought forward |
|
|
22,747 |
|
|
|
|
------------------ |
|
| Profit
available for appropriation |
|
|
26,165 |
|
| Appropriations |
|
| Proposed
cash dividend |
@ 05% |
|
3,312 |
|
| Transfer
to statutory reserves |
@ 20% |
|
683 |
|
|
|
|
3,995 |
|
|
|
|
------------------ |
|
| Unappropriated
profit carried forward |
|
|
22,170 |
|
|
------------------ |
|
|
| Cash Dividend: |
|
| The
directors are pleased to recommend a cash dividend @ 5% to the share holders
for the year |
|
| ended
June 30, 1999. |
|
|
| Review
of Operations: |
|
| During
the year under review your company's balance sheet has grown to Rs.213.725
million. |
|
| Quality
leases continued to be disbursed. 136 fresh lease contracts were signed, and
gross |
|
| disbursements
totaled Rs.75.594 million. The average net yield of the lease portfolio as on
June |
|
| 30th,
1999, was 25.83% per annum. The company also extended short term financing
facilities |
|
| through
ensuring that minimum 70% of its funds are deployed in leasing business, as
per |
|
| regulatory
requirements. Income from leasing operations contributed the largest revenue, |
|
| Rs.
25.652 million. |
|
|
| Net
Income before provisions for the period under review is Rs. 9,399,406. Your
Directors |
|
| considered
it prudent to create a provision of Rs.3.272 million for potential losses.
Provisioning |
|
| has
been made in accordance with the Prudential regulations of the State Bank of
Pakistan. |
|
| However
in the opinion of the Management & the Board, the Morabaha & Short
term financing |
|
| amounts
outstanding are recoverable. Hence this provisioning should in no manner be
construed |
|
| to
mean that the company's Portfolio is affected. |
|
|
| The
year under review has been one of continued slowdown in economic &
business activities in |
|
| the
country. Despite tills the company continued expanding its base with emphasis
on quality. |
|
|
| Your
Directors are pleased to advise that strict standards for evaluating
proposals continue to be |
|
| adhered
to, and only those institutions or individuals are considered for facilities
whose track |
|
| record
of repayments is proven good. |
|
|
| The
pace of recoveries have been accelerated. We are pleased to inform you that
the results of |
|
| these
efforts has had a tremendous effect on improving the overall recovery
position. This |
|
| obviously
resulted in improving your company's cash flows as well as keeping the need
for |
|
| provisioning
to a minimum. |
|
|
| Fresh
lease disbursements were mainly for vehicle leasing, both commercial and
private. |
|
| Basically
business activities having slowed down resulted in fewer requests for
machinery & |
|
| equipment
leasing, thus shifting the maximum exposure to the transport sector. The
assets mix is |
|
| as follows. |
|
|
| Your
company continued its support to the social sectors--education, health, food.
The |
|
| education
sector is the largest beneficiary percentage wise, in our lease portfolio.
Tourism and |
|
| information
technology sectors are areas where we have also made inroads successfully. |
|
|
| Y2K
Compliance: |
|
| Your
company is Y2K compliant, and this has been certified by our IT consultants. |
|
|
| Resource
Mobilization: |
|
| Resources
were raised through receipts of lease rentals, payments received towards
reduction of |
|
| short-term
borrowings, and with the cooperation of our creditor financial institutions.
New |
|
| avenues
continue to be tapped for obtaining funding to maintain the tempo of
sustained growth. |
|
|
| Future Outlook: |
|
| We
are encouraged by the fact that inspite of the economic scenario during the
year under review |
|
| your
company saw continued activity & progress. Although business revival will
take some time |
|
| your
Directors are hopeful of the future. |
|
|
| With
the advantage of leasing becoming recognized & therefore becoming a
preferred mode for |
|
| acquisition
& financing of assets, it is felt that demand for this form of financing
will continue, |
|
| obviously
resulting in further growth of the sector, of which CALCORP is steadily
becoming an |
|
| active
participant. |
|
|
| The
Directors & the company's management are fully aware & conscious of
their |
|
| responsibilities,
and are focused on balance sheet growth, increased profitability & share
holders |
|
| interest,
and have every intention of continuing to seek quality business. |
|
|
| The
issue of increase in paid-up capital to Rs. 200 million by leasing companies
as required by |
|
| the
Securities & Exchange Commission of Pakistan is being persued by your
company. Under the |
|
| present
circumstances there is no option but to approach the SECP through the Leasing |
|
| Association
of Pakistan with a request to extend the period for complying with this
requirement. |
|
|
| Board
of Directors: |
|
| Elections
of the Board of Directors were held in June 1999 & we are pleased to
inform you that |
|
| all
the retiring Directors who had offered themselves for re-election were
re-elected without |
|
| contest.
Mr. Salman Qureshi was unanimously elected as Chairman of the Board of
Directors. |
|
|
| Auditors: |
|
| The
company's Auditors, M/s Ebrahim & Company, Chartered accounts, retire
& being eligible |
|
| offer
themselves for re-appointment. |
|
|
| Acknowledgments: |
|
| We
take this opportunity to thank our valued clients, shareholders, creditor
financial institutions, |
|
| the
Securities & Exchange Commission of Pakistan, State Bank of Pakistan,
Leasing Association |
|
| of
Pakistan & all three Stock Exchanges of Pakistan, for their continued
support and guidance. |
|
| The
Board expresses its appreciation & thanks to the management & staff
of the company for |
|
| their
commitment and dedicated hard work without which these results would not have
been |
|
| possible. |
|
|
| Pattern
of Share holding: |
|
| Pattern
of Share holding as on June 30th 1999 is annexed to this report. |
|
|
|
|
|
on behalf of the Board |
|
|
|
|
|
Jehangir Shah |
|
Salman Qureshi |
|
|
Managing Director/CEO |
|
|
Chairman |
|
|
|
|
| Lahore |
|
| December
03, 1999 |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of CAPITAL ASSETS LEASING CORPORATION |
|
| LIMITED
as at June 30, 1999 and the related profit and loss account and 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 & 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 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 accounts and are further in accordance with |
|
| accounting
policies consistently applied; |
|
|
|
| ii)
the expenditure incurred during the year was for the purpose of the Company's |
|
|
| business; and |
|
|
|
|
| iii)
the business conducted, investments made and the expenditure incurred during |
|
| the
year were in accordance with the objects of the Company; |
|
|
|
|
|
| c)
in our opinion and to the best of our information and according to the
explanations given |
|
| to
us, the balance sheet, profit and loss account 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 June 30, 1999 and of
the profit |
|
| and
changes in financial position 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 |
|
| December
03, 1999 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1999 |
|
|
|
|
|
|
1999 |
1998 |
|
| SHARE
CAPITAL AND RESERVES |
|
Notes |
Rupees |
Rupees |
|
| Authorized
Capital |
|
|
|
| 10,000,000
ordinary shares of |
|
|
| Rs. 10 each |
|
|
|
100,000,000 |
100,000,000 |
|
|
|
|
========== |
========== |
|
|
|
|
| Issued
subscribed and paid-up capital |
|
|
| 6,623,950
ordinary shares |
|
|
| of
Rs. 10 each fully paid in cash |
|
66,239,500 |
66,239,500 |
|
|
|
|
| Reserves |
|
|
3 |
7,612,407 |
6,928,786 |
|
| Unappropriated
profit |
|
|
22,169,693 |
22,747,182 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
96,021,600 |
95,915,468 |
|
|
|
|
| LIABILITIES
AGAINST ASSETS |
|
|
|
| SUBJECT
TO FINANCE LEASE |
|
4 |
659,831 |
282,725 |
|
| DEFERRED
LIABILITIES |
|
5 |
3,197,170 |
224,004 |
|
| LONG
TERM DEPOSITS |
|
6 |
25,252,421 |
24,988,455 |
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Current
portion of long term liabilities |
|
|
19,219,928 |
12,923,429 |
|
| Short
term loans-and running finances |
|
7 |
58,367,704 |
47,491,034 |
|
| Creditors,
accrued and other liabilities |
|
8 |
5,721,938 |
7,394,484 |
|
| Provision
for taxation |
|
|
1,430,351 |
992,176 |
|
| Dividend |
|
9 |
3,854,481 |
1,172,596 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
88,594,402 |
69,973,719 |
|
| CONTINGENCIES
AND COMMITMENTS |
|
10 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
213,725,424 |
191,384,371 |
|
|
|
|
|
========== |
========== |
|
|
| TANGIBLE
FIXED ASSETS |
|
|
11 |
4,090,303 |
3,499,870 |
|
| INVESTMENT
IN LEASE AND HIRE |
|
|
|
|
|
| PURCHASE
FINANCES |
|
|
12 |
95,407,662 |
85,936,768 |
|
| LONG
TERM INVESTMENTS |
|
|
13 |
250,000 |
250,000 |
|
| LONG
TERM DEPOSITS |
|
|
14 |
514,590 |
271,180 |
|
| DEFERRED
COST |
|
|
15 |
122,122 |
271,773 |
|
|
|
|
| CURRENT
ASSETS |
|
|
| Current
portion of long term investment |
|
|
| in
lease and hire purchase finances |
|
71,156,037 |
58,789,517 |
|
| Morabaha
and short term finances |
|
|
16 |
20401060 |
21,387,370 |
|
| Advances,
prepayments and other |
|
|
|
| receivables |
|
|
17 |
5,048,111 |
4,324,691 |
|
| Cash
bank balances |
|
|
18 |
16,735,539 |
16,658,202 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
113,340,747 |
101,159,780 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
213,725,424 |
191,384,371 |
|
|
|
|
========== |
========== |
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
|
|
Jehangir Shah |
|
Nisar A. Memon |
|
|
|
Managing Director/CEO |
|
Director |
|
|
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 1999 |
|
|
|
|
1999 |
1998 |
|
|
Notes |
Rupees |
Rupees |
|
|
|
|
| Income
from leasing operations |
|
19 |
25,651,892 |
22,399,699 |
|
| Other income |
|
20 |
5,859,068 |
4,425,498 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
31,510,960 |
26,825,197 |
|
|
|
|
| Administrative
and operating expenses |
|
21 |
13,108,210 |
9,931,545 |
|
| Financial
charges |
|
22 |
9,003,344 |
4,617,532 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
22,111,554 |
14,549,077 |
|
|
|
|
------------------ |
------------------ |
|
| Operating
profit before provisions |
|
|
9,399,406 |
12,276,120 |
|
|
|
|
| Provision/(reversal
of provision) for losses: |
|
|
| For
lease transactions |
|
(986,300) |
247,500 |
|
| For
morabaha and short term finances |
|
3,272,500 |
502,500 |
|
|
|
------------------ |
------------------ |
|
|
|
2,286,200 |
750,000 |
|
|
|
------------------ |
------------------ |
|
| Operating
profit for the year |
|
7,113,206 |
11,526,120 |
|
|
|
|
|
|
| Provision
for taxation: |
|
23 |
|
| Current year |
|
402,000 |
355,000 |
|
| Prior year |
|
234,099 |
-- |
|
| Deferred |
|
3,059,000 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
|
3,695,099 |
355,000 |
|
|
|
|
------------------ |
------------------ |
|
| Net
profit after taxation |
|
|
3,418,107 |
11,171,120 |
|
|
|
|
| Unappropriated
profit brought forward |
|
22,747,182 |
13,810,286 |
|
|
|
------------------ |
------------------ |
|
| Profit
available for appropriation |
|
|
26,165,289 |
24,981,406 |
|
|
|
|
| Appropriations: |
|
|
|
|
| Proposed
dividend @ 5% (1998: Nil) |
|
|
3,311,975 |
-- |
|
| Transfer
to reserves |
|
|
683,621 |
2,234,224 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
3,995,596 |
2,234,224 |
|
|
|
|
------------------ |
------------------ |
|
| Unappropriated
profit carried forward |
|
|
22,169,693 |
22,747,182 |
|
|
|
|
========== |
========== |
|
| Earnings
per share |
|
24 |
Rs. 0.52 |
Rs. 1.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Note:
The annexed notes form an integral part of these accounts. |
|
|
|
Jehangir Shah |
|
Nisar A. Memon |
|
|
Managing Director/CEO |
|
Director |
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| (CASH
FLOW STATEMENT) FOR THE YEAR ENDED JUNE 30, 1999 |
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
| Profit
before taxation |
|
|
7,113,206 |
11,526,120 |
|
| Adjustments
for non cash charges/(credit) & other items |
|
|
|
| Gratuity .... |
|
|
-- |
162,604 |
|
| Depreciation |
|
|
1,396,649 |
1,157,789 |
|
| (Gain)
on disposal of fixed assets |
|
|
(378,034) |
(64,288) |
|
| Amortization
of deferred cost |
|
|
149,651 |
584,587 |
|
| Financial
charges |
|
|
9,003,344 |
4,617,532 |
|
| Provision
for losses |
|
|
2,286,200 |
750,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
19,571,016 |
18,734,344 |
|
|
|
|
| (Increase)
in current assets |
|
|
|
| Advances,
prepayments and other receivables |
|
(397,200) |
(2,069,348) |
|
|
|
|
| (Decrease)/increase
in current liabilities |
|
|
| Creators,
accrued and other liabilities |
|
(3,721,249) |
4,801,065 |
|
|
|
------------------ |
------------------ |
|
| Cash
generated from operations |
|
15,452,567 |
21,466,061 |
|
|
|
|
|
| Financial
charges paid |
|
(6,954,641) |
(4,669,571) |
|
| Tax paid |
|
(524,144) |
(765,342) |
|
| Gratuity paid |
|
(85,834) |
-- |
|
| Net
investment in lease and hire purchase finances |
|
(20,856,114) |
(32,778,660) |
|
| Morabaha
and short term finances |
|
(2,286,190) |
( |
