| Crescent Leasing Corporation Limited |
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| Annual
Report 1999 |
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|
MISSION STATEMENT |
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CRESLEASE IS COMMITTED TO PURSUING THE IMPROVEMENT IN |
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SHAREHOLDERS VALUE THROUGH DEVELOPMENT OF A DEDICATED |
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HUMAN RESOURCE AND EFFICIENT SYSTEMS BASE CAPABLE OF |
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EFFECTIVELY PARTICIPATING IN A COMPETITIVE BUSINESS |
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ENVIRONMENT. CRESLEASE WOULD ENDEAVOR TO EXTEND |
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THE REACH OF THE CREDIT DELIVERY SYSTEM TO STIMULATE |
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THE ECONOMIC DEVELOPMENT. |
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| Contents |
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| Company
Information |
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| Notice
of Meeting |
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| Directors' Report |
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| Auditors' Report |
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| Financial
Statements of the Company |
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| Pattern
of Holding of Shares |
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| Company
Information |
|
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| BOARD
OF DIRECTORS |
|
| Mr.
Aftab Ahmed Khan |
|
Chairman |
|
| Mr.
Javed A. Callea |
|
Chief Executive |
|
| Mr.
Altaf M. Saleem |
|
| Mr.
David V. Johns |
|
| Mr.
Manzur-ul-Haq |
|
| Mr.
Nessar Ahmed |
|
| Mr.
Rashid Ahmed |
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| COMPANY
SECRETARY |
|
| Mr.
Zaheer A. Shaikh |
|
| Mr.
Rashid Sadiq |
|
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| AUDITORS |
|
| Khalid
Majid Husain Rahman & Co. |
Chartered Accountants |
|
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| LEGAL
ADVISORS |
|
| Cornelius
Lane & Mufti |
|
Advocates &
Solicitors |
|
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| RATING
AGENCY |
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| The
Pakistan Credit Rating Agency (Private) Limited |
|
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| BANKS
& LENDING INSTITUTIONS |
|
| Commonwealth
Development Corporation |
|
| Habib Bank Ltd. |
|
| Allied Bank Ltd. |
|
| Allied
Bank of Pakistan |
|
| Saudi-Pak
Industrial & Agricultural Investment Co. (Pvt) Ltd. |
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| National
Discounting Services Ltd. |
|
| Orix
Investment Bank Ltd. |
|
| Pak-Kuwait
Investment Co. (Pvt) Ltd. |
|
| Bank
of America (NT&SA) |
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| REGISTERED
AND SHARE TRANSFER OFFICE |
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| 83-Babar
Block, New Garden Town, Lahore |
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| Phone:
(042) 588-1974 & 75 Fax: (042) 588-1976 |
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| Email:
rashid.sadiq@cressoft.com.pk |
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| BRANCH
OFFICE |
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| Suit
No. F-7 (B) 1st Floor, |
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| Rehman
Business Suites, 32-B-III, Gulberg-III, |
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| Lahore |
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| HEAD OFFICE |
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| B-801
& 802, 8th Floor, Lakson Square, Bldg. #3, Sarwar Shaheed Road, Karachi. |
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| Phone:
021-566-1938, 48 & 58 Fax: 021-566-1988 |
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| Email:
crescent@super.net.pk |
|
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| *For
a copy of this report write to our Head Office/Registered Office. |
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| Notice
of Annual General Meeting |
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| NOTICE
is hereby given that the 12th Annual General Meeting of the shareholders of |
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| Crescent
Leasing Corporation Limited, will be held on Saturday, the December 04, 1999, |
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| at
12:00 noon, at Registered Office 83-Babar Block, New Garden Town, Lahore to
transact |
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| the
following business: |
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| 1.
To receive, consider and adopt the audited accounts of the company for the
year |
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| ended
June 30, 1999 together with Directors' and Auditors' Reports thereon. |
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| 2.
To declare dividend. The Directors have recommended the payment of Cash |
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| Dividend
@ Rs. 1.00 per share (i.e. @10%). |
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| 3.
To appoint Auditors and fix their remuneration. |
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| BOOK
CLOSURE |
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| The
Register of Member of the company will remain closed from November 30, 1999
to |
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| December
06, 1999 (both days inclusive). The members whose names appear on the |
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| Register
of Members as on November 29, 1999 shall be entitled for cash dividend. |
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|
BY ORDER OF THE BOARD |
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|
ZAHEER A. SHAIKH |
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|
Corporate Secretary |
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| REGISTERED
OFFICE: |
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| 83-Babar
Block New Garden Town |
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| LAHORE. |
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| Telephone
No. (042) 5881974-75, 5839631 |
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| Fax
No. (042) 5881976 |
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| Email:
rashid.sadiq@cressoft.com.pk |
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| Dated:
October 19, 1999. |
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| NOTE: |
|
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| 1.
A member eligible to attend and vote at this Meeting may appoint another
member |
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| as
his/her proxy to attend and vote instead of him/her. Proxies in order to be
effective |
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| must
be received by the Company at the Registered Office not later than 48 hours |
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| before
the time for holding the Meeting. |
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| 2.
Shareholders are requested to immediately notify the change in address, if
any. |
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| 3.
Account holders and sub-account holders holding book entry securities of the |
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| company
in Central Depository System of Central Depository Company of Pakistan |
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| Limited
who wish to attend the Annual General Meeting are requested to please bring |
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| original
I.D. Card alongwith copy thereof duly attested by their Bankers for
identification |
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| purpose. |
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| Directors'
Report |
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| Your
Directors have pleasure in presenting the Audited Accounts for the period
from |
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| July
1, 1998 to June 30, 1999. |
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| FINANCIAL
RESULTS |
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|
Rupees in Million |
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| Net
Profit before tax |
|
31.271 |
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| Provision
for taxation |
|
1.726 |
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| Net
Profit after taxation |
|
29.545 |
|
| Un-appropriated
profit brought forward |
|
0.118 |
|
| Profit
available for appropriation |
|
29.662 |
|
| Appropriations |
|
|
|
| Transfer
from general reserve |
|
(8.161) |
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| Transfer
to reserves under NBFI Regulations |
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5.909 |
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| Transfer
to reserve for deferred taxation |
|
14.649 |
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| Proposed
dividend @ 10% |
|
17.250 |
|
| Un-appropriated
profit carried forward |
|
0.015 |
|
|
|
| Net
profit for the year after charging all expenses, including allowance for
potential lease |
|
| losses
amounted to Rs. 29.545 million. |
|
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| In
compliance of the policy for deferred taxation prescribed by the SECP for
leasing |
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| companies
an amount Rs. 14.6 million has been transferred to Reserve for Deferred |
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| Taxation. |
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| The
performance of your company, in the review period, needs to be seen in the
light of |
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| economic
and policy factors affecting the business environment in general and the long |
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| term
investment climate in particular. |
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| ECONOMIC
SCENARIO |
|
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| Fiscal
1999 was a difficult and challenging year for Pakistan's economy, with output |
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| growth
slipping to 3.1% as against 4.3% in 1997-98, drop in total investment to
14.8% of Gross |
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| Domestic
Product from 17.1% in Fiscal '98 and worsening of the current account of |
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| balance
of payments due to fall in exports and substantial decline in private
transfers and |
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| invisible
receipts. The nuclear tests of May 1998, the economic sanctions that followed
and |
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| the
related dryings up of most external capital flows led to severe financial
stresses and |
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| strains.
Combination of sensible economic and financial management and international |
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| financial
assistance has, however, allowed Pakistan to mitigate the effects of the
crisis and |
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| maintain
a positive growth rate of GDP in an ambiance of stability. |
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| Lackluster
economic growth and an inhospitable investment milieu had an adverse |
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| impact
on the demand for leasing, where a contraction, both in volume and quality
was |
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| observed. |
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| The
shareholders would recall that certain factors emanating out of the freezing
of foreign |
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| currency
accounts were identified in the Half-Yearly report. These related to the non- |
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| recoverability
of premium paid on market purchase of forex for creating hedging deposits |
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| and
penal interest on overdue installments due to delayed approval of
availability of forex |
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| by
State Bank. In the Interim period, prior to valuation of foreign currency
accounts at par |
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| with
inter-bank-floating rate, an exchange loss was suffered on one remittance.
These |
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| uncontrollable
and unfavourable external factors adversely affected the profitability
of |
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| the company. |
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| OPERATING
RESULTS |
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| In
view of, different and uncertain economic and business environment in the
review |
|
| period
your company followed the strategy of consolidating its position in the lease |
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| market. |
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| New
leases executed during the period amounted to Rs. 331.7 million (1998, Rs.
276 |
|
| million).
The net investment in leases in placed at Rs. 704 million (1998, Rs. 634
million). |
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| Lease
income during the review period increased and amounted to Rs. 119 million
(1998, |
|
| Rs.
106 million). Income from other business activities increased from Rs. 44
million in 1998 |
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| to
Rs. 53 million in 1999. Factors identified in the preceding paras reduced the
pre-tax |
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| profit
to Rs. 31 million (1998, Rs. 41 million). The post-tax earning per share in
placed at Rs. 1.71. |
|
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| The
focus during the year continued to be on market penetration in the small and |
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| medium
ticket leases, improved client service and development of the consumer
leasing |
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| activity.
The lease portfolio of your company's is prudently diversified over the
industrial |
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| and
services base in Pakistan comprising nearly two dozen leading sectors. The
individual |
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| exposure
in any single sector (textile) does not exceed 13 percent (1998 in Energy Oil
& |
|
| Gas
13.16 percent). |
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| Plant
and machinery remained the major lease asset at 71 percent of the portfolio |
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| followed
by automobiles at 25 percent and office equipment at 4 percent. Lackluster |
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| business
conditions placed pressures on recovery during the year. However, persistent |
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| and
vigilant monitoring and follow-up enabled to post a 95 percent recovery
during the |
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| year. |
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| The
entity rating of your company for long-term obligations is maintained at BBB
and for |
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| short-term
at A2, indicating a low expectation of credit risk. |
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| Your
company raised Rs. 45 million in long-term credits and Rs. 125 million in
short-term |
|
| credits
from premier financial institutions at competitive rates. In addition long
and |
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| short-term
credits of Rs. 125 million were also negotiated. |
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| FUTURE
OUTLOOK |
|
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| The
fundamental factors for the revival of the economy and its sustained growth
on an |
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| increasingly
self-reliant basis still need to be tackled effectively. These inter-alia,
include, |
|
| restoration
of the overseas and local investors' confidence, adequate resource |
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| mobilization,
financial sector development, good governance, public sector reforms and |
|
| improved
policy environment characterized by coherence and consistency. |
|
|
| The
deflationary pressures operating in the economy are likely to continue well
into FY |
|
| 2000.
The public sector infrastructure programs, which are under implementation,
are |
|
| likely
to absorb some liquidity in the money market during the year propping up the |
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| interest
rates and the capacity utilization of the industries linked to such projects.
This |
|
| along
with increased agricultural production particularly in cotton and concerted
efforts |
|
| to
boost exports may provide the desired impetus for revival of the economy late
in the |
|
| year.
The industrial investment in most of FY 2000 is likely to remain depressed
and the |
|
| demand
for industrial and consumer durable goods would exhibit weakness. Your |
|
| company
would continue with its risk management policy of extending business in low
risk |
|
| profile
sectors and entities. |
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|
| Year
2000 compliance |
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| All
the systems and procedures and software and hardware packages have been |
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| adjusted/reprogrammed
to be fully Y2K compliant. |
|
|
| Acknowledgement |
|
| The
Board wishes to record their appreciation of the valuable contribution of Mr.
Shabbir |
|
| Hashmi
during his term. The Board welcomes Mr. David V. Johns on the Board. |
|
|
| The
Board acknowledges the support of the regulatory authorities, banks and
lending |
|
| institutions.
The Board wishes to place on record its appreciation of the hard work and |
|
| dedication
shown by the company personnel. |
|
|
| Auditors |
|
| The
auditors, Khalid Majid Husain Rahman, Chartered Accountants retire and being |
|
| eligible,
offer themselves for re-appointment. |
|
|
| Pattern
of Holding of Shares |
|
| The
pattern of Holding of Shares as on June 30, 1999, is placed at page No. 32. |
|
|
|
|
on behalf of the Board |
|
|
|
|
|
| October
19, 1999 |
|
Javed A. Callea |
|
| Karachi. |
|
Chief Executive |
|
|
| Khalid
Majid Husain Rahman |
|
|
|
| Chartered
Accountants |
1st Floor, Modern Motors
House |
|
|
|
Beaumount Road,
Karachi-75530 |
|
|
|
Tel: UAN 111 - 404040 |
|
|
|
Fax: (021) 5688834 |
|
|
|
Email:
kmhrkhi@paknet3.ptc.pk |
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of Crescent Leasing Corporation
Limited as at |
|
| June
30, 1999 and the related profit and loss account and the statement of changes
in financial |
|
| position
(cash flow statement), together with the notes forming part thereof, for the
year then |
|
| ended
and we state that we have obtained all the information and explanations which
to the |
|
| best
of our knowledge and belief were necessary for the purposes of our audit and,
after due |
|
| verification
thereof, we report that: |
|
|
| (a)
in our opinion, proper books of account have been kept by the company as
required by the |
|
| Companies
Ordinance, 1984; |
|
|
| (b)
in our opinion: |
|
|
| (i)
the balance sheet and profit and loss account together with the notes thereon
have |
|
| been
drawn up in conformity with the Companies Ordinance, 1984, and are in |
|
| agreement
with the books of account and are further in accordance with accounting |
|
| policies
consistently applied except for the change as stated in note 2.7 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
(cash flow statement) together with the notes forming part thereof, give the
infor- |
|
| mation
required by the Companies Ordinance, 1984, in the manner so required and
respec- |
|
| tively
give a true and fair view of the state of the company's affairs as at June
30, 1999 and |
|
| of
the profit and the 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:
October 19, 1999 |
|
Chartered Accountants |
|
|
| Deloitte Touche |
|
| Tohmatsu |
|
| International |
|
|
|
| Balance
Sheet As At June 30, 1999 |
|
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|
|
1999 |
1998 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| SHARE
CAPITAL AND RESERVES |
|
|
|
|
|
| Authorised
Capital |
|
|
|
| 30,000,000
ordinary shares of Rs. 10/- each |
|
|
300,000,000 |
300,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up capital |
|
3 |
172,500,000 |
150,000,000 |
|
| Reserves |
|
|
135,191,390 |
145,396,852 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
307,691,390 |
295,396,852 |
|
|
|
|
|
|
| DEFERRED
INCOME |
|
4 |
475,977 |
-- |
|
| LONG-TERM
FINANCES |
|
5 |
198,756,310 |
246,303,680 |
|
| LIABILITIES
AGAINST ASSETS SUBJECT |
|
|
|
|
| TO
FINANCE LEASES |
|
6 |
3,974,707 |
813,213 |
|
|
|
|
|
|
| LONG-TERM
CERTIFICATES OF INVESTMENT |
|
7 |
21,100,000 |
-- |
|
| LONG-TERM
DEPOSITS |
|
8 |
92,033,209 |
54,430,049 |
|
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
| Current
maturity of long-term liabilities |
|
9 |
103,122,410 |
88,387,266 |
|
| Current
maturity of liabilities against |
|
|
| assets
subject to finance leases |
|
|
1,662,743 |
304,238 |
|
| Short-term
certificates of investment |
|
7 |
80,000,000 |
50,000,000 |
|
| Short-term
finances |
|
10 |
80,000,000 |
35,000,000 |
|
| Running
finances under mark-up arrangement |
|
11 |
75,972,271 |
28,537,633 |
|
| Creditors,
accrued and other liabilities |
|
12 |
26,239,049 |
27,897,260 |
|
| Proposed
dividend |
|
|
17,250,000 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
384,246,473 |
230,126,397 |
|
| COMMITMENTS |
|
13 |
------------------ |
------------------ |
|
|
|
|
1,008,278,066 |
827,070,191 |
|
|
|
|
|
========== |
========== |
|
|
| OPERATING
FIXED ASSETS |
|
14 |
17,059,171 |
14,664,836 |
|
|
|
|
|
|
|
| NET
INVESTMENT IN LEASES |
|
|
| Minimum
lease rental receivables |
|
|
739,150,538 |
707,372,887 |
|
| Residual value |
|
|
129,577,427 |
91,049,712 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
868,727,965 |
798,422,599 |
|
| Less:
Unearned finance income |
|
|
164,853,846 |
164,495,719 |
|
|
|
|
------------------ |
------------------ |
|
| Net
investment in leases |
|
|
703,874,119 |
633,926,880 |
|
|
|
------------------ |
------------------ |
|
| Less:
Current maturity |
|
|
270,162,303 |
223,425,370 |
|
| Allowance
for potential lease losses -General |
|
12,849,656 |
6,275,392 |
|
|
- Specific |
|
4,592,088 |
2,146,117 |
|
|
|
------------------ |
------------------ |
|
|
|
416,270,072 |
402,080,001 |
|
|
|
|
| LONG-TERM
INVESTMENTS |
|
16 |
31,764,507 |
4,125,000 |
|
|
|
|
|
|
| LONG-TERM
DEPOSITS AND DEFERRED COSTS |
17 |
13,053,360 |
18,711,558 |
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
| Current
maturity of net investment in leases |
|
|
270,162,303 |
223,425,370 |
|
| Short-term loan |
|
18 |
4,623,036 |
-- |
|
| Advances,
prepayments and other receivables |
|
19 |
42,337,421 |
23,121,491 |
|
| Short-term
investments |
|
20 |
114,868,191 |
64,252,913 |
|
| Cash
and bank balances |
|
21 |
98,140,005 |
76,689,022 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
530,130,956 |
387,488,796 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
1,008,278,066 |
827,070,191 |
|
|
|
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these financial statements. |
|
|
|
JAVED A. CALLEA |
|
AFTAB AHMED KHAN |
|
|
Chief Executive |
|
Chairman |
|
|
|
| Profit
And Loss Account For The Year Ended June 30, 1999 |
|
|
|
|
1999 |
1998 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| Income
from lease operations |
|
118,758,255 |
106,041,312 |
|
| Other income |
|
22 |
53,345,898 |
48,652,867 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
172,104,153 |
154,694,179 |
|
|
|
|
|
| Administrative
and operating expenses |
|
23 |
16,002,124 |
13,391,752 |
|
| Financial
charges |
|
24 |
114,921,094 |
91,776,524 |
|
| Amortization
of deferred cost |
|
|
889,970 |
488,750 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
131,813,188 |
105,657,026 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
40,290,965 |
49,037,153 |
|
|
|
|
| Allowance
for potential lease losses -General |
|
6,574,264 |
6,275,392 |
|
|
|
- Specific |
|
2,445,971 |
1,301,881 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
9,020,235 |
7,577,273 |
|
|
|
------------------ |
------------------ |
|
| Profit
before taxation |
|
|
31,270,730 |
41,459,880 |
|
| Taxation |
|
|
26 |
1,726,192 |
1,267,069 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
after taxation |
|
|
29,544,538 |
40,192,811 |
|
| Unappropriated
profit brought forward |
|
117,538 |
19,924,727 |
|
|
|
------------------ |
------------------ |
|
|
|
29,662,076 |
60,117,538 |
|
| Appropriations: |
|
|
|
|
|
|
| Transfer from: |
|
|
|
| - general reserve |
|
|
|
8,161,438 |
-- |
|
| Transfer to: |
|
|
|
|
| -
reserve under NBFI rules |
|
|
(5,908,908) |
(8,038,562) |
|
| - general reserve |
|
|
|
-- |
(51,961,438) |
|
| -
reserve for deferred taxation |
|
26 |
(14,649,296) |
-- |
|
| -
Proposed dividend @ 10% (1998:Nil) |
|
|
(17,250,000) |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
(29,646,766) |
60,000,000 |
|
|
|
|
|
------------------ |
------------------ |
|
| Unappropriated
profit carried forward |
|
15,310 |
117,538 |
|
|
|
|
========== |
========== |
|
| Earnings
per share |
--Basic |
|
27 |
1.71 |
2.33 |
|
|
|
-- Diluted |
|
|
N/A |
N/A |
|
|
| The
annexed notes form an integral part of these financial statements. |
|
|
|
JAVED A. CALLEA |
|
AFTAB AHMED KHAN |
|
|
Chief Executive |
|
Chairman |
|
|
|
| Statement
Of Changes In Financial Position (Cash Flow Statement) |
|
| For
The Year Ended June 30, 1999 |
|
|
|
|
|
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
| Cash
flows from operating activities |
|
|
|
|
|
| Profit
before taxation |
|
|
31,270,730 |
41,459,880 |
|
|
|
|
|
|
| Adjustments for: |
|
|
|
|
| Amortization
of deferred cost |
|
|
889,970 |
488,750 |
|
| Depreciation |
|
|
1,511,452 |
2,617,883 |
|
| Allowance
for potential lease losses |
|
|
9,020,235 |
7,577,273 |
|
| (Gain)/Loss
on sale of operating fixed assets |
|
|
(78,529) |
48,322 |
|
|
|
|
------------------ |
------------------ |
|
| Operating
profit before working capital changes |
|
|
42,613,858 |
52,192,108 |
|
|
|
|
| Decrease
in creditors, accrued and other liabilities |
|
(1,658,211) |
(8,786,668) |
|
| Increase/(Decrease)
in advances, deposits, prepayments |
|
|
|
| and
other receivables |
|
(8,703,563) |
(2,605,996) |
|
|
|
------------------ |
------------------ |
|
| Cash
generated from operations |
|
32,252,084 |
46,011,436 |
|
| Income
taxes paid |
|
(12,238,559) |
(2,699,605) |
|
|
|
------------------ |
------------------ |
|
| Net
cash flows from operating activities |
|
20,013,525 |
43,311,831 |
|
|
|
|
|
|
| Cash
flows from investing activities |
|
|
|
|
|
| Increase
in net investment in leases |
|
|
(69,947,239) |
(122,098,764) |
|
| Purchase
of operating fixed assets |
|
|
(5,847,865) |
(1,818,167) |
|
| Proceeds
from sale of operating fixed assets |
|
|
2,496,584 |
974,726 |
|
| Purchase
of long-term investments |
|
|
(27,639,507) |
-- |
|
| Long-term
loan - net |
|
|
-- |
2,499,994 |
|
| Decrease
in long -term deposits and deferred costs |
|
|
4,768,228 |
4,217,909 |
|
| Increase
in short- term loan |
|
|
(4,623,036) |
-- |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash used in investing activities |
|
|
(100,792,835) |
(116,224,302) |
|
|
|
|
|
| Cash
flows from financing activities |
|
|
| (Decrease)/increase
in long-term finances |
|
|
(33,119,775) |
4,946,208 |
|
| Increase
in long -term deposits |
|
|
37,910,709 |
21,336,806 |
|
| Proceeds
from certificates of Investment |
|
|
51,100,000 |
40,000,000 |
|
| Increase
in running finances under mark-up arrangement |
|
47,434,638 |
25,608,396 |
|
| Increase
in short - term finances |
|
|
45,000,000 |
15,000,000 |
|
| Increase
in liabilities against assets subject to finance leases |
|
4,519,999 |
704,038 |
|
| Payment
of dividend |
|
|
-- |
(22,495,282) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash flows from financing activities |
|
|
152,845,571 |
85,100,166 |
|
|
|
|
------------------ |
------------------ |
|
| Net
increase in cash and cash equivalents |
|
|
72,066,261 |
12,187,695 |
|
| Cash
and cash equivalents at beginning of the year |
|
|
140,941,935 |
128,754,240 |
|
|
|
|
------------------ |
------------------ |
|
| Cash
and cash equivalents at the end of the year (Note A) |
|
213,008,196 |
140,941,935 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| Note
A. Cash and cash equivalents at the end of the year |
|
| Cash
and bank balances |
|
|
98,140,005 |
76,689,022 |
|
| Short-term
Investments |
|
|
114,868,191 |
64,252,913 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
213,008,196 |
140,941,935 |
|
|
|
|
========== |
========== |
|
|
|
JAVED A. CALLEA |
|
AFTAB AHMED KHAN |
|
|
Chief Executive |
|
Chairman |
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED JUNE 30, 1999 |
|
|
|
RESERVE |
|
|
|
Capital |
|
Revenue |
|
|
|
Issued, |
Premium |
Reserve |
Reserve |
Reserve |
General |
Reserve |
Un-appropriated |
Total |
Grand |
|
Subscribed and |
on issuance |
for deferred |
under NBFI's |
for issue of |
reserve |
for doubtful |
profit |
|
Total |
|
Paid-up |
of right |
taxation |
rules |
proposed bonus |
|
debts |
|
|
Capital |
shares |
|
shares |
|
|
| Balance as at |
|
| June 30,1997 |
|
150,000,000 |
56,250,000 |
-- |
18,792,752 |
-- |
-- |
10,236,562 |
19,924,727 |
105,204,041 |
255,204,041 |
|
|
|
|
|
| Net profit for |
|
|
| the year |
|
-- |
-- |
-- |
-- |
-- |
-- |
-- |
40,192,811 |
40,192,811 |
40,192,811 |
| Premium on |
|
|
| issuance of right |
|
|
| shares to be |
|
|
| utilized
for issue of |
|
| 15% proposed |
|
|
| bonus shares |
|
-- |
(22,500,000) |
-- |
-- |
22,500,000 |
-- |
-- |
-- |
-- |
-- |
| Transfer
from profit |
|
| and
loss account |
-- |
-- |
-- |
8,038,562 |
-- |
51,961,438 |
-- |
(60,000,000) |
-- |
-- |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
| Balance as at |
|
|
| June30, 1998 |
|
150,000,000 |
33,750,000 |
-- |
26,831,314 |
22,500,000 |
51,961,438 |
10,236,562 |
117,538 |
145,396,852 |
295,396,852 |
| Net profit |
|
|
| for the year |
|
-- |
-- |
-- |
-- |
-- |
-- |
-- |
29,544,538 |
29,544,538 |
29,544,538 |
| Transfer
from/(to) |
|
| profit and loss |
|
|
| account |
|
-- |
-- |
14,649,296 |
5,908,908 |
-- |
(8,161,438) |
-- |
(12,396,766) |
-- |
-- |
| Issue of bonus |
|
|
| shares |
|
22,500,000 |
-- |
-- |
-- |
(22,500,000) |
-- |
-- |
-- |
(22,500,000) |
-- |
|
|
| Proposed
dividend |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
(17,250,000) |
(17,250,000) |
(17,250,000) |
|
|
| Balance as at |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
| June30, 1999 |
|
172,500,000 |
33,750,000 |
14,649,296 |
32,740,222 |
-- |
43,800,000 |
10,236,562 |
15,310 |
135,191,390 |
307,691,390 |
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
JAVED A. CALLEA |
|
AFTAB AHMED KHAN |
|
|
Chief Executive |
|
Chairman |
|
|
|
| Notes
To The Financial Statements |
|
| For
The Year Ended June 30, 1999 |
|
|
| 1.
LEGAL STATUS AND NATURE OF BUSINESS |
|
|
| The
company was incorporated in Pakistan as a public limited company on April 7, |
|
| 1987.
The company commenced commercial operations in August 1989, and is |
|
| listed
on all Stock Exchanges in Pakistan. Its prime business is leasing, and it is |
|
| classified
as a Non-Banking Financial Institution (NBFI) by the State Bank of Pakistan |
|
| and
is regulated by the Securities and Exchange Commission of Pakistan. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
|
| 2.1
Accounting convention |
|
| These
financial statements have been prepared under the historical cost |
|
| convention. |
|
|
| 2.2
Operating fixed assets and depreciation |
|
|
|
| (a)
Owned assets |
|
|
| Fixed
assets are stated at cost less depreciation to date. Depreciation is |
|
| charged
to income by applying reducing balance method. Full years |
|
| depreciation
is charged on acquisitions during the year while no |
|
| depreciation
is charged on fixed assets disposed off during the year. |
|
|
| However,
the assets given to employees as per the company policy are to |
|
| be
charged to income applying the straight-line method whereby the cost |
|
| of
an asset is written off over four years. Depreciation on such additions is |
|
| charged
from the month in which the asset is put to use and on disposals in |
|
| the
month in which disposal is made. |
|
|
| Normal
repairs and maintenance are charged 1-o income as and when |
|
| incurred.
Major renewals and betterment are capitalized. |
|
|
| Gains
and losses on disposal of fixed assets, if any, are included in income |
|
| currently.
However, gains on sale and leaseback transaction that results in a |
|
| finance
lease, is deferred and amortized over the lease term. |
|
|
| (b)
Assets subject to finance leases |
|
|
| These
are stated at the lower of present value of minimum lease payments |
|
| and
fair value of assets acquired on lease. Assets so acquired are |
|
| depreciated
over the shorter of the lease term or its useful life. Financial |
|
| charges
are allocated to accounting periods in a manner so as to produce |
|
| a
constant periodic rate of charge on the outstanding liability. |
|
|
| 2.3
Deferred costs and amortization |
|
| Deferred
costs are written off during a period not exceeding five years |
|
| commencing
from the year such costs are incurred. |
|
|
| 2.4 Investments |
|
|
| (a)
Long-term investments |
|
|
| Long-term
investments are stated at cost and carrying amount is |
|
| reduced
to recognize any decline other than temporary in the value of |
|
| investments. |
|
|
| (b)
Short-term investments |
|
|
| investments
are valued at the lower of cost and market value |
|
| determined
on an aggregate portfolio basis. |
|
|
| 2.5 Taxation |
|
|
|
| (a) Current |
|
|
|
| Provision
is made on taxable income at the prevailing rates of taxation |
|
| after
taking into account tax credits available, if any. |
|
|
| (b) Deferred |
|
|
|
| The
company accounts for deferred taxation on all major timing |
|
| differences
likely to reverse in the foreseeable future, using the liability |
|
| method.
However, in order to confirm with the requirements of circular |
|
| no.
16 dated September 9, 1999 issued by the Securities and Exchange |
|
| Commission
of Pakistan, appropriation or provision is made each year. |
|
|
| 2.6
Foreign exchange transactions |
|
|
| Transactions
in foreign currencies are accounted for in rupees at the rate of |
|
| exchange
ruling on the date of transaction. Assets and liabilities in foreign |
|
| currencies
are translated into rupees at the rate of exchange at the balance |
|
| sheet
date. Net exchange differences arising due to hedging mechanism |
|
| are
accounted for as deferred revenue/costs as the case may be and are |
|
| credited/amortized
to income over the term of the underlying transactions |
|
| or
five years whichever is shorter. |
|
|
| 2.7 Off-setting |
|
|
| A
financial asset and a financial liability is off-set and the net amount |
|
| reported
in the balance sheet if the company has a legal enforceable right |
|
| to
set-off the transactions and also intends either to settle on a net basis or
to |
|
| realize
the asset and settle the liability simultaneously. Until last year, |
|
| corresponding
income on the asset and charge on the liability was also |
|
| netted off. |
|
|
| 2.8
Employees' retirement benefits |
|
| The
company operates a contributory provident fund for all its confirmed |
|
| employees
and contributions are made by the company and the |
|
| employees
in accordance with the fund rules. |
|
|
| 2.9
Revenue recognition |
|
| The
company follows the financing method in accounting for recognition of |
|
| lease
income. At the time of the execution of a lease, a portion of unearned |
|
| lease
income, which approximates the initial direct costs incurred in writing |
|
| the
leases, is taken to "Income from lease operations". The remainder
of the |
|
| unearned
lease income is then allocated over the lease term on a pattern |
|
| reflecting
a constant periodic return on the company's net investment |
|
| outstanding
in respect of the lease. |
|
|
|
|
|
| Front
end, commitment and other fees, if any, are taken to income when |
|
| realized. |
|
|
|
|
|
|
| 2.10
Allowance for potential lease losses |
|
|
| The
allowance for potential lease losses is maintained at a level, which in the |
|
| judgment
of the management, is sufficient to provide for any potential lease |
|
| losses.
The recognition of annual charge and income of such amount would |
|
| be
taken through the profit and loss account. The allowance would be |
|
| increased
by the provision charged to income and would be decreased by |
|
| charge
off, net of recoveries. |
|
|
|
|
|
|
| 3.
ISSUED, SUBSCRIBED AND PAID-UP CAPITAL |
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
|
| 15,000,000
(1998: 15,000,000) ordinary snares of |
|
|
| Rs.
10 each fully paid in cash |
|
150,000,000 |
150,000,000 |
|
|
|
|
| 2,250,000
(1998: Nil) ordinary snares of |
|
|
| Rs.
10 each issued as fully paid bonus shares |
|
|
22,500,000 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
172,500,000 |
150,000,000 |
|
|
|
|
========== |
========== |
|
| 4.
DEFERRED INCOME |
|
|
|
| This
represents gain on sale and leaseback transaction that resulted in a finance |
|
| lease. |
|
|
|
|
|
|
| 5.
LONG-TERM FINANCES-Secured |
|
|
|
|
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
| Foreign
currency |
|
|
|
| From
Commonwealth Development |
|
|
| Corporation
U.K- an associated undertaking |
|
239,166,667 |
290,937,750 |
|
| (Note 5.1 ) |
|
|
|
|
|
|
|
| Local currency |
|
|
|
| From
a commercial bank (Note 5.2) |
|
|
23,632,545 |
-- |
|
| From
an investment company (Note 5.3) |
|
|
20,018,763 |
25,000,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
43,651,308 |
25,000,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
282,817,975 |
315,937,750 |
|
| Less:
Current maturity (Note 9) |
|
|
84,061,665 |
69,634,070 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
198,756,310 |
246,303,680 |
|
|
|
|
========== |
========== |
|
|
| 5.1
This represents Pounds Sterling 5 million loan obtained from Commonwealth |
|
| Development
Corporation, UK, an associated undertaking. The loan is |
|
| repayable
in twelve equal semi-annual installments commenced from May |
|
| 1997
and is secured by floating pari-passu charge, through hypothecation, over |
|
| certain
present assets and joint floating charge over certain present and all |
|
| future
assets of the company. The rate of interest is 11.5% per annum. |
|
|
| 5.2
This represents Rs. 23.63 million loan obtained under mark-up arrangement and |
|
| carries
mark-up at the rate of Rs. 0.42 per Rs. 1,000 per day, payable in quarterly |
|
| installments.
The principal is repayable in six equal semi annual installments |
|
| commencing
from October 1999. The loan is secured by lien of three years |
|
| registered
special US dollar bonds included in note 16. |
|
|
| 5.3
This represents Rs. 25 million loan obtained under mark-up arrangement. The |
|
| loan
is repayable in twelve equal quarterly installments commenced from |
|
| October
1998. The loan carries mark-up at the rate of Rs. 0.53 per Rs. 1,000 per |
|
| day
and is secured by joint pari-passu charge over all present and future assets |
|
| of the company. |
|
|
|
|
| 6.
LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASES |
|
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Minimum
lease payments (Note 6.1) |
|
|
7,297,496 |
1,411,822 |
|
| Less:
Finance charges not yet due |
|
|
1,660,046 |
294,371 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
5,637,450 |
1,117,451 |
|
| Less:
Current maturity |
|
|
1,662,743 |
304,238 |
|
|
|
|
------------------ |
------------------ |
|
|
|
3,974,707 |
813,213 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| 6.1
The company has entered into lease agreements with leasing companies for |
|
| financing
to acquire motor vehicles, furniture and fixture and office equipment. |
|
| Payments
under these agreements include finance charges ranging from |
|
| 19.17%
to 21.03 % per annum, which are used as discounting factors. The future |
|
| payments
due are as follows: |
|
|
|
|
|
|
| Year ending |
|
|
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| June 30, 1999 |
|
|
-- |
532,402 |
|
| June 30, 2000 |
|
|
2,537,976 |
447,408 |
|
| June 30, 2001 |
|
|
2,451,426 |
360,858 |
|
| June 30, 2002 |
|
|
1,950,609 |
71,154 |
|
| June 30, 2003 |
|
|
357,485 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
7,297,496 |
1,411,822 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
| 7.
CERTIFICATES OF INVESTMENT |
|
|
|
|
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
| Certificates
of investment issued: |
|
|
|
| -
for one year and more |
|
|
21,100,000 |
-- |
|
| -
for less than one year |
|
|
80,000,000 |
50,000,000 |
|
|
| The
company has a scheme of registered Certificates of Investment (COIs) for |
|
| resource
mobilization as per permission from the Securities and Exchange |
|
| Commission
of Pakistan. The term of these COIs ranges from three months to five |
|
| years
and expected return, ranging from Rs. 0.36 to Rs. 0.51 per Rs. 1,000 per day,
is |
|
| paid
on a profit and loss sharing basis. |
|
|
|
|
|
| 8.
LONG-TERM DEPOSITS |
|
|
|
|
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Security
deposits on leases (Note 8.1 ) |
|
|
111,093,954 |
73,183,245 |
|
| Less:
Current maturity (Note 9) |
|
|
19,060,745 |
18,753,196 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
92,033,209 |
54,430,049 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| 8.1
These represent interest free security deposits received under lease
contracts and |
|
| are
repayable/adjustable at the expiry/termination of the respective leases. |
|
|
|
|
| 9.
CURRENT MATURITY OF LONG-TERM LIABILITIES |
|
|
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Long-term
finances (Note 5) |
|
|
84,061,665 |
69,634,070 |
|
| Long-term
deposits (Note 8) |
|
|
19,060,745 |
18,753,196 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
103,122,410 |
88,387,266 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| 10.
SHORT-TERM FINANCE |
|
|
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
| Secured |
|
|
|
| Pro-note
discounting facility from a |
|
|
| financial
institution (Note 10.1) |
|
|
20,000,000 |
25,000,000 |
|
|
|
|
|
|
| Unsecured |
|
|
|
|
| From
investment banks (Note 10.2) |
|
|
35,000,000 |
-- |
|
| Others
(Note 10.3) |
|
|
25,000,000 |
10,000,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
60,000,000 |
10,000,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
80,000,000 |
35,000,000 |
|
|
|
|
========== |
========== |
|
|
|
|
| 10.1
This represents a finance facility carrying mark-up at the rate of Rs. 0.50
per Rs. |
|
| 1,000
per day and is secured by joint pari-passu charge over all present and |
|
| future
assets of the company. |
|
|
|
|
|
|
| 10.2
This represents finance facilities carrying mark-up at the rate ranging from |
|
| Rs.0.38
to Rs. 0.42 per Rs. 1,000 per day. |
|
|
|
|
|
| 10.3
This represents a finance facility obtained from a leasing company carrying |
|
| mark-up
at the rate of Rs.0.47 per Rs. 1,000 per day. |
|
|
|
|
|
| 11.
RUNNING FINANCES UNDER MARK-UP ARRANGEMENT - Secured |
|
|
|
|
| Running
finance facilities available to the company aggregating to Rs. 114.40 |
|
| million
(1998: Rs. 50 million) on yearly renewal basis at mark-up ranging between Rs. |
|
| 0.49
and Rs. 0.50 (1998: Rs. 0.37 and 0.49) per Rs. 1,000 per day. These finances
are |
|
| secured
by way of joint pari-passu charge on all present and future assets of the |
|
| company. |
|
|
|
|
|
|
|
|
|
| 12.
CREDITORS, ACCRUED AND OTHER LIABILITIES |
|
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Advance
lease rentals |
|
|
2,583,729 |
3,939,080 |
|
| Accrued
liabilities |
|
|
1,990,069 |
1,663,866 |
|
| Mark-up
payable on secured finances |
|
|
15,961,724 |
19,273,793 |
|
| Mark-up
payable on un-secured finances |
|
|
3,768,221 |
200,344 |
|
| Excise duty |
|
|
-- |
265,828 |
|
| Unclaimed
dividend |
|
|
64,205 |
75,080 |
|
| Other liabilities |
|
|
1,871,101 |
2,479,269 |
|
|
|
|
------------------ |
------------------ |
|
|
|
26,239,049 |
27,897,260 |
|
|
|
|
|
========== |
========== |
|
|
| 13.
COMMITMENTS |
|
| Lease
proposals approved Rs. 12 million (1998: Rs. 30.021 million). |
|
|
| 14.
OPERATING FIXED ASSETS |
|
|
|
Cost |
|
Depreciation |
|
|
|
|
|
|
As on |
Inter transfer |
Additions/ |
As at |
For the |
As at |
Written down |
Depreciation |
|
|
July 1, |
|
(deletions) |
June 30, |
year |
June 30, |
value as at |
rate % |
|
|
1998 |
|
1999 |
|
1999 |
June 30, 1999 |
per annum |
|
| Owned |
|
|
| Office premises |
|
12,163,446 |
-- |
185,565 |
12,021,361 |
507,515 |
9,642,776 |
9,642,776 |
5 |
|
|
|
|
(327,650) |
|
|
|
|
| Furniture
and fixtures |
1,239,628 |
9,430 |
277,440 |
953,893 |
146,872 |
467,449 |
486,444 |
15 & 25 |
|
|
|
|
|
(572,605) |
|
|
|
|
| Motor vehicles |
|
2,767,585 |
-- |
3,940 |
2,223,125 |
52,489 |
1,616,749 |
606,376 |
20 & 25 |
|
|
|
|
|
(548,400) |
|
|
|
|
| Office
equipment |
3,533,119 |
327,650 |
214,425 |
1,217,680 |
113,128 |
576,621 |
641,059 |
15 |
|
|
|
|
(9,430) |
(2,848,084) |
|
|
|
|
| Computer
software |
573,500 |
-- |
4,500 |
578,000 |
63,958 |
215,571 |
362,429 |
15 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
20,277,278 |
-- |
685,870 |
16,994,059 |
883,962 |
5,254,975 |
11,739,084 |
|
|
|
(3,969,089) |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
|
| Leased |
|
|
|
| Furniture
and fixtures |
-- |
-- |
373,387 |
373,387 |
-- |
-- |
373,387 |
33.33 |
|
| Motor vehicles |
|
544,000 |
-- |
2,547,000 |
3,091,000 |
504,498 |
663,582 |
2,427,418 |
25,33.33 & 36.36 |
|
| Office
equipment |
601,000 |
-- |
2,241,608 |
2,842,608 |
122,992 |
323,326 |
2,519,282 |
33.33 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
1,145,000 |
-- |
5,161,995 |
6,306,995 |
627,490 |
986,908 |
5,320,087 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| 1999 |
|
21,422,278 |
-- |
5,847,865 |
23,301,054 |
1,511,452 |
6,241,883 |
17,059,171 |
|
|
|
|
(3,969,089) |
|
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
| 1998 |
|
21,215,003 |
-- |
1,780,870 |
21,422,278 |
2,617,883 |
6,757,442 |
14,664,836 |
|
|
|
|
(1,573,595) |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
| 15.
DISPOSAL OF TANGIBLE FIXED ASSETS |
|
|
|
|
|
| Particulars |
|
Cost |
Accumulated |
Written |
Sale |
Mode of |
Buyer |
|
|
|
depreciation |
down value |
proceeds |
disposal |
|
|
|
|
|
|
Rupees |
|
|
| Furniture
and fixture |
|
| Furniture |
|
9,000 |
2,498 |
6,502 |
7,000 |
By negotiation |
Mr. Javed Khan, Karachi |
|
|
|
|
| Furniture |
|
563,605 |
197,330 |
366,275 |
373,387 |
Sale & lease back |
Pacific Leasing Company
Ltd. |
|
|
|
|
|
|
| Motor vehicles |
|
|
|
|
| Suzuki Mehran |
|
231,000 |
207,900 |
23,100 |
34,650 |
Company policy |
Mr. S. Shahid Owais,
Employee |
|
| Suzuki Mehran |
|
262,000 |
262,000 |
-- |
39,300 |
Company policy |
Mr. Mehboob-ur-Rehman, |
|
|
|
|
|
Employee |
|
|
|
|
|
|
| Honda |
|
55,400 |
30,581 |
24,819 |
52,000 |
Insurance Claim |
EFU General Insurance Ltd |
|
| CD -70 M-cycle |
|
|
|
|
|
|
|
|
|
| Office
equipment |
|
|
|
| Equipment |
|
2,846,480 |
1,326,702 |
1,519,778 |
1,988,643 |
Sale & lease back |
Pacific Leasing Company
Ltd. |
|
|
|
|
|
|
| Equipment |
|
1,604 |
-- |
1,604 |
1,604 |
Claim from courier Co. |
TCS (Pvt.) Limited |
|
|
|
|
|
| 16.
LONG-TERM INVESTMENTS |
|
|
|
|
|
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| In
associated undertakings (Note 16.1 ) |
|
|
4,125,000 |
4, 125,000 |
|
| In
special US dollar bonds (Note 16.2) |
|
|
27,639,507 |
-- |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
31,764,507 |
4, 125,000 |
|
|
|
|
|
========== |
========== |
|
|
|
|
| 16.1
IN ASSOCIATED UNDERTAKINGS |
|
|
|
| 1999 |
1998 |
|
| No. of ordinary |
|
| shares of Rs. 10 each |
|
|
*Listed |
|
|
Trust Investment Bank
Ltd. |
|
|
(Holding 1 percent |
|
|
(1998: 1 percent) in the |
|
| 100,000 |
100,000 |
equity of the Bank |
|
1,000,000 |
1,000,000 |
|
|
|
|
|
|
*Unlisted |
|
|
|
|
|
International Housing |
|
|
|
|
Finance Ltd. (Holding
2.5) percent |
|
|
|
|
(1998: 2.5 percent in the |
|
|
| 312,500 |
312,500 |
equity of the company) |
|
3,125,000 |
3,125,000 |
|
|
|
------------------ |
------------------ |
|
|
|
|
4,125,000 |
4,125,000 |
|
|
|
|
========== |
========== |
|
|
| 16.1.1
Market value as at June 30, 1999 for investment in listed associated |
|
| undertaking
was Rs.500,000 (1998: Rs. 900,000) |
|
|
| 16.1.2
The above investments are carried at cost. Had the investments been |
|
| accounted
for using the equity method, the value of investment on |
|
| the
basis of latest available audited accounts for the year ended |
|
| June
30, 1999 of the investees and their effects on the profit and loss |
|
| account
would have been as follows: |
|
|
|
|
|
|
Value of |
|
|
|
|
|
|
investments |
Effect on |
|
|
|
|
|
under equity |
profit |
|
|
|
|
|
method |
|
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Trust
Investment Bank Ltd. |
|
|
1,346,559 |
346,559 |
|
| International
Housing Finance Ltd. |
|
|
3,374,180 |
(26,141) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
4,720,739 |
320,419 |
|
|
|
|
========== |
========== |
|
|
|
|
| 16.2
It represents investment amounting to US $538,100 in the special US dollar |
|
| bonds
issued by the Government of Pakistan. These bonds are redeemable |
|
| on
April 01, 2002 and carry interest at the rate of six months LIBOR plus two |
|
| percent. |
|
|
|
|
|
|
| 17.
LONG-TERM DEPOSITS AND DEFERRED COSTS |
|
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Long-term
deposits |
|
|
811,305 |
486,035 |
|
| Deferred
costs (Note 17.1) |
|
|
12,242,055 |
18,225,523 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
13,053,360 |
18,711,558 |
|
|
|
|
========== |
========== |
|
|
| 17.1
Deferred Costs |
|
|
|
|
As on |
Additions/ |
As at |
Amortization |
Unamortized |
|
|
|
July 01, |
(Deletion) |
June 30, |
For the year |
As at |
Balance as at |
|
|
|
1998 |
|
1999 |
|
June 30, |
June 30, |
|
|
|
1999 |
1999 |
|
|
| Fund utilization |
|
26,989,065 |
-- |
26,989,065 |
5,397,813 |
15,416,910 |
11,572,155 |
|
| (Note 17.2) |
|
|
|
|
|
|
|
| Others |
|
4,541,879 |
304,315 |
2,943,908 |
889,970 |
2,274,008 |
669,900 |
|
|
|
|
(1,902,286) |
|
|
| (Note 17.3) |
|
|
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| 1999 |
|
31,530,944 |
304,315 |
30,968,658 |
6,287,783 |
17,690,918 |
12,242,055 |
|
|
|
|
(1,902,286) |
|
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| 1998 |
|
30,730,944 |
800,000 |
31,530,944 |
5,886,563 |
13,305,421 |
18,225,523 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| 17.2
Fund utilization represents expenses incidental to foreign currency finances, |
|
| which
were adjusted against possible recoveries or charged off as part of bor- |
|
| rowing cost. |
|
|
|
| 17.3
The balance as on June 30, includes. |
|
|
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Right
issue expenses |
|
|
55,125 |
338,213 |
|
| Commitment
charges |
|
|
156,606 |
234,909 |
|
| Bond
floatation expense |
|
|
-- |
3,264 |
|
| Others |
|
|
458,169 |
679,169 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
669,900 |
1,255,555 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
| 18.
SHORT TERM LOAN - Considered Good Secured |
|
| This
represents a short-term loan facility given to a company against first charge
by |
|
| way
of hypothecation of stocks and carries a mark-up at the rate of Rs. 0.61 per
Rs. |
|
| 1,000 per day. |
|
|
|
|
|
|
| 19.
ADVANCES, PREPAYMENTS AND OTHER RECEIVABLES |
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Advances
- Considered good |
|
|
|
|
- to staff (Note 19.1 ) |
|
245,156 |
126,756 |
|
|
- against expenses |
|
63,932 |
2,500 |
|
|
- against leases |
|
11,040,653 |
1,971,578 |
|
|
- others |
|
3,250 |
9,250 |
|
| Taxation-net
of provision |
|
12,045,617 |
1,533,250 |
|
| Prepayments |
|
|
717,531 |
569,682 |
|
| Mark-up
due on certificates/securities |
|
14,253,811 |
18,089,132 |
|
| C.E.D.
Receivables |
|
1,837,789 |
-- |
|
| Other
receivables |
|
2,129,682 |
819,343 |
|
|
|
------------------ |
------------------ |
|
|
|
42,337,421 |
23,121,491 |
|
|
|
|
========== |
========== |
|
|
|
|
| 19.1
Aggregate amount due by the executives Rs. 0.182 million (1998: Rs. 0.071 |
|
| million).
Maximum amount due from executives at the end of any month |
|
| during
the year aggregated Rs. 0.285 million (1998: Rs. 0.229 million). |
|
|
|
|
| 20.
SHORT-TERM INVESTMENTS |
|
|
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Federal
Investment Bonds |
(Note 20.1) |
|
925,000 |
20,925,000 |
|
| Term
finance certificates |
(Note 20.2) |
|
7,287,999 |
8,390,413 |
|
| Placement
and deposits |
(Note 20.3) |
|
96,382,192 |
34,937,500 |
|
| Special
US dollar bonds |
(Note 20.4) |
|
10,273,000 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
|
114,868,191 |
64,252,913 |
|
|
|
|
|
|
========== |
========== |
|
|
| 20.1
This includes investments as per NBFI rules, issued by the State Bank of
Pakistan. |
|
|
|
| 20.2
Term Finance Certificates (TFCs) |
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Packages
Limited |
|
|
|
| 10
(1998: 10) Certificates of face value |
|
|
| Rs.
5,000 each and |
|
|
|
| 12
( (1998: 12) Certificates of face value |
|
|
| Rs. 100,000 each |
|
416,334 |
861,097 |
|
|
|
|
| Nishat
Tek Limited |
|
|
| Nil
(1998: 75) Certificates of face value |
|
|
| Rs. 100,000 each |
|
-- |
7,529,316 |
|
|
|
|
| ICI
Pakistan Limited |
|
|
| 100
(1998: Nil) Certificates of face value |
|
|
| Rs. 100,000 each |
|
|
8,487,855 |
-- |
|
|
|
|
| Sui
Southern Gas Company Limited |
|
|
| 5800
(1998: Nil) Certificates of face value |
|
|
| Rs.
5,000 each and |
|
|
|
| 50
(1998: Nil) Certificates of face value |
|
|
| Rs. 100,00 each |
|
26,383,810 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
35,287,999 |
8,390,413 |
|
| Less:
Sold under repurchase agreements |
|
|
| ICI
Pakistan Limited |
|
|
|
| 100
Certificates of face value Rs. 100,000 each |
|
|
| (repurchase
price Rs. 8.3 million) |
|
8,000,000 |
-- |
|
| Sui
Southern Gas Company Limited |
|
|
| 4000
Certificates of face value Rs. 5,000 each |
|
|
| (repurchase
price Rs. 20.86 million) |
|
26,000,000 |
-- |
|
|
|
------------------ |
------------------ |
|
|
7,287,999 |
8,390,413 |
|
|
|
|
|
========== |
========== |
|
|
| The
aggregate market value of TFCs Rs. 15 million (1998: 8.78 million) and |
|
| carries
expected profit ranging from Rs. 0.51 to Rs. 0.61 per Rs. 1,000 per day |
|
| and
is redeemable in semi annual installments. |
|
|
| 20.3
These represent short-term placement and deposits with different NBFIs and |
|
| carry
mark-up ranging from Rs. 0.42 to Rs. 0.52 per Rs. 1,000 per day. |
|
|
| 20.4
It represents investment amounting to US $ 200,000 in the special US dollar |
|
| bonds
issued by the Government of Pakistan. These bonds are redeemable |
|
| on
April 01, 2002 and carry interest rate of six months LIBOR plus two percent. |
|
|
| 21.
CASH AND BANK BALANCES |
|
|
|
|
|
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Cash in hand |
|
|
9,927 |
10,286 |
|
| Cash
with banks on |
|
|
| -
current accounts (Note 21.1) |
|
29,072,914 |
484,414 |
|
| -
fixed deposit receipts (Note 21.2) |
|
69,056,626 |
76,193,784 |
|
| -
collection accounts |
|
538 |
538 |
|
|
|
------------------ |
------------------ |
|
|
|
98,140,005 |
76,689,022 |
|
|
|
========== |
========== |
|
|
| 21.1
This includes Rs. 0.050 million (1998: Rs. 0.040 million) in current account |
|
| maintained
with the State Bank of Pakistan under NBFI rules. |
|
|
| 21.2.
Fixed Deposit Receipts |
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Foreign
currency fixed deposit receipts |
|
|
249,207,581 |
349,850,841 |
|
| Less:
Credit facility availed (Note 21.3) |
|
|
180,648,077 |
240,845,145 |
|
| Credit
facility availed |
|
|
-- |
33,037,500 |
|
|
|
|
------------------ |
------------------ |
|
|
|
68,559,504 |
75,968,196 |
|
|
|
|
|
|
| Other
foreign currency fixed deposit receipts |
|
|
247,122 |
225,588 |
|
| Local
currency fixed deposit receipts |
|
|
250,000 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
69,056,626 |
76,193,784 |
|
|
|
|
========== |
========== |
|
|
|
|
| 21.3
The total sanctioned amount from a commercial bank and an investment |
|
| company
under mark-up arrangements amounted to Rs. 305 million (1998: Rs. |
|
| 337
million). These loans carry mark-up ranging from Rs. 0.37 to Rs. 0.39 (1998: |
|
| Rs.
0.35 to Rs. 0.39) per Rs. 1,000 per day. The commercial bank borrowing is |
|
| repayable
in ten semi-annual equal installments upto November 2002, |
|
| whereas
investment company borrowing is repayable in twelve equal semi- |
|
| annual
installments upto November 2002. The commercial bank and |
|
| investment
company borrowing is secured against foreign currency deposits |
|
| mentioned
above. |
|
|
|
|
|
|
| 22.
OTHER INCOME |
|
|
|
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Return
on foreign currency deposits |
|
22,371,498 |
25,704,123 |
|
| Return
on short term placement and deposits |
|
12,576,894 |
10,737,342 |
|
| Return
on Government securities and |
|
|
|
| term
finance certificates |
|
8,798,440 |
4,728,893 |
|
| Exchange gain |
|
8,544,193 |
7,478,887 |
|
| Gain/(loss)
on sale of listed securities |
|
526,615 |
(46,569) |
|
| Fee,
commission and others |
|
360,729 |
98,513 |
|
| Dividend income |
|
89,000 |
-- |
|
| Gain/(loss)
on sale of operating fixed assets |
|
78,529 |
(48,322) |
|
|
|
------------------ |
------------------ |
|
|
|
53,345,898 |
48,652,867 |
|
|
|
|
========== |
========== |
|
|
| 23.
ADMINISTRATIVE AND OPERATING EXPENSES |
|
|
|
|
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
| Salaries
and allowances including |
|
|
|
| Directors
remuneration (Note 25) |
|
9,194,582 |
6,452,765 |
|
| Staff training |
|
|
78,450 |
14,800 |
|
| Rent,
rates and taxes |
|
122,457 |
105,412 |
|
| Travelling
and conveyance |
|
374,492 |
505,079 |
|
| Vehicle running |
|
|
679,512 |
474,549 |
|
| Utilities |
|
|
309,526 |
290,860 |
|
| Telephone
and Fax |
|
371,169 |
304,196 |
|
| Insurance |
|
|
786,103 |
480,793 |
|
| Fees,
subscriptions and periodicals |
|
375,865 |
241,612 |
|
| Printing
and stationery |
|
432,287 |
469,047 |
|
| Postage,
stamps and telegrams |
|
136,565 |
99,879 |
|
| Legal
and professional charges (Note 23.1) |
|
694,333 |
700,337 |
|
| Auditors'
remuneration (Note 23.2) |
|
151,000 |
126,100 |
|
| Repairs
and maintenance |
|
621,897 |
453,937 |
|
| Depreciation |
|
|
1,511,452 |
2,617,883 |
|
| Advertisement |
|
|
115,038 |
52,441 |
|
| Miscellaneous |
|
|
47,396 |
2,062 |
|
|
|
------------------ |
------------------ |
|
|
|
|
16,002,124 |
13,391,752 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
| 23.1
Legal and professional charges |
|
|
| Corporate
services |
|
473,082 |
380,335 |
|
| Legal charges |
|
166,600 |
281,157 |
|
| Others |
|
54,651 |
38,845 |
|
|
|
------------------ |
------------------ |
|
|
|
694,333 |
700,337 |
|
|
|
|
========== |
========== |
|
|
|
|
| 23.2
Auditors' remuneration |
|
|
|
| Statutory
audit fee |
|
55,000 |
55,000 |
|
| Special audit fee |
|
20,000 |
-- |
|
| Taxation
charges |
|
75,000 |
62,500 |
|
| Out-of-pocket
expenses |
|
1,000 |
8,600 |
|
|
|
------------------ |
------------------ |
|
|
|
126,100 |
151,000 |
|
|
|
|
========== |
========== |
|
|
|
|
| 24.
FINANCIAL CHARGES |
|
|
|
| Mark-up on |
|
|
|
|
| -
long-term finances |
|
75,120,265 |
77,042,942 |
|
| -
short-term finances |
|
20,132,495 |
8,627,688 |
|
| -
discounting facility |
|
4,894,604 |
151,678 |
|
| -running
finances under mark-up arrangement |
|
4,580,113 |
3,356,800 |
|
| -long-term COIs |
|
1,364,682 |
-- |
|
| -short term COIs |
|
8,014,614 |
1,918,082 |
|
| Finance
charges on liabilities against assets subject |
|
|
|
| to finance lease |
|
560,572 |
142,427 |
|
| Bank charges |
|
253,749 |
536,907 |
|
|
|
------------------ |
------------------ |
|
|
114,921,094 |
91,776,524 |
|
|
|
|
|
========== |
========== |
|
|
| 25.
REMUNERATION OF CHIEF EXECUTIVE AND OTHER EXECUTIVES |
|
|
|
|
|
|
1999 |
|
1998 |
|
|
|
|
|
|
Chief |
Executives |
Total |
Chief |
Executives |
Total |
|
|
Executive |
|
Executive |
|
|
|
| Managerial |
|
| remuneration |
|
1,393,333 |
2,059,514 |
3,452,847 |
990,000 |
1,165,812 |
2,155,812 |
|
| Housing
and Utility |
696,667 |
1,029,763 |
1,726,430 |
495,000 |
582,906 |
1,077,906 |
|
| Bonus |
|
197,451 |
330,316 |
527,767 |
200,000 |
233,500 |
433,500 |
|
| Medical & other |
|
|
|
| expenses |
|
129,394 |
171,695 |
301,089 |
100,789 |
157,151 |
257,940 |
|
| Company's
contribution |
|
|
| to
provident fund |
132,000 |
198,056 |
330,056 |
99,000 |
116,581 |
215,581 |
|
| Company's
contribution |
|
|
| to
pension scheme of an |
|
|
| associated undertaking |
318,000 |
-- |
318,000 |
-- |
-- |
-- |
|
| Leave
fare assistance |
283,805 |
189,575 |
473,380 |
178,875 |
263,875 |
442,750 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Total |
|
3,150,650 |
3,978,919 |
7,129,569 |
2,063,664 |
2,519,825 |
4,583,489 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
| Number
of Persons |
1 |
11 |
12 |
1 |
6 |
7 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| The
Chief Executive, Chairman and Executives have been provided with free use |
|
| of
company cars. Directors were paid Rupees 9,000 (1998: Rupees 9,000) for |
|
| attending
board meetings during the year. |
|
|
| 26. TAXATION |
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Current |
|
|
|
| For
the year (Note 26.1) |
|
|
1,726,192 |
1,267,069 |
|
|
|
|
========== |
========== |
|
|
|
|
| 26.1
This represents the provision for minimum tax under section 80D of the |
|
| income
Tax Ordinance, 1979. |
|
|
| 26.2
Deferred taxation arising due to timing differences between accounting |
|
| and
income tax revenue computed under liability method is estimated at |
|
| Rs.
39.94 million (1998: Rs. 31.26 million). |
|
|
| The
liability for deferred taxation is not likely to reverse in the foreseeable |
|
| future.
However, in accordance with the circular no. 16 dated September |
|
| 9,
1999 issued by the Securities and Exchange Commission of Pakistan, an |
|
| amount
of Rs. 14.65 million has been transferred to Capital Reserve under |
|
| "Reserve
for deferred taxation" |
|
|
|
| 27.
EARNINGS PER SHARE -BASIC AND DILUTED |
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Earnings
per share - Basic |
|
|
|
| Profit
after taxation |
|
29,544,538 |
40,192,811 |
|
|
|
|
========== |
========== |
|
|
|
|
|
No. of Shares |
|
| Weighted
average no. of shares. (Note 27.1) |
|
|
17,250,000 |
17,250,000 |
|
|
|
|
========== |
========== |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
1.71 |
2.33 |
|
| Earnings
per share - Diluted |
|
|
N/A |
N/A |
|
|
|
|
| 27.1
Number of shares at the beginning of the year |
|
15,000,000 |
15,000,000 |
|
| Bonus
shares issued |
|
2,250,000 |
-- |
|
| Adjustment
for bonus shares issued |
|
-- |
2,250,000 |
|
|
|
------------------ |
------------------ |
|
| Weighted
average no. of shares |
|
17,250,000 |
17,250,000 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
| 28.
CREDIT RISK AND CONCENTRATION OF CREDIT RISK |
|
|
|
|
| Credit
risk is the risk that one party to a financial instrument will fail to
discharge an |
|
| obligation
and cause to other party to incur a financial loss. The company attempts |
|
| to
control credit risk by monitoring credit exposures, limiting transactions
with specific |
|
| counter-parties
and continually assessing the credit worthiness of counter-parties. |
|
|
|
|
| A
sector wise breakdown of lease portfolio is as follows: |
|
|
|
|
|
|
1999 |
% |
|
|
|
Rupees |
|
|
|
|
|
| Textiles |
|
|
|
|
91,559,050 |
13.00 |
|
| Food,
Tobacco and Beverages |
|
|
|
72,732,216 |
10.33 |
|
| Cement |
|
|
|
|
65,425,762 |
9.29 |
|
| Synthetic,
Garment and others |
|
|
|
61,889,115 |
9.00 |
|
| Energy,
Oil and Gas |
|
|
|
56,280,410 |
7.99 |
|
| Chemical,
Pharmaceuticals and Fertilizers |
|
|
55,924,811 |
7.94 |
|
| Financial |
|
|
|
|
49,349,102 |
7.01 |
|
| Sugar and Allied |
|
|
|
|
35,311,445 |
5.02 |
|
| Steel
Engineering and Automobiles |
|
|
32,709,808 |
4.65 |
|
| Paper and Board |
|
|
|
|
30,149,580 |
4.28 |
|
| Transport
and Communication |
|
|
|
22,260,026 |
3.16 |
|
| Glass
and Fabrics |
|
|
|
18,752,881 |
2.66 |
|
| Healthcare |
|
|
|
|
15,748,254 |
2.24 |
|
| *Miscellaneous |
|
|
|
|
95,781,659 |
13.43 |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
703,874,119 |
100.00 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
| *
Six sector below 2 percent clubbed under miscellaneous. |
|
|
| In
addition, the company has placed certain funds with other NBFIs and has |
|
| invested
certain funds in special US dollar bonds, federal investment bonds and |
|
| term
finance certificates. |
|
|
| 29.
FAIR VALUE OF FINANCIAL ASSETS |
|
|
| The
estimated fair value of long-term investments and book value as at June 30, |
|
| 1999
is as follows: |
|
|
|
Rupees |
|
|
| Book value |
|
|
4,125,000 |
|
| Fair value |
|
|
3,534,062 |
|
|
|
|
------------------ |
|
| Fair
value over book value |
|
(590,938) |
|
|
|
|
========== |
|
|
| No
provision for decline in market value has been made, as in the opinion of |
|
| management
the decline is temporary. |
|
|
| The
fair value of all other financial assets and financial liabilities is
estimated to |
|
| approximate
their carrying value. |
|
|
| 30.
TRANSACTION WITH ASSOCIATED UNDERTAKINGS |
|
|
|
|
|
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Placement
and deposits |
|
|
|
20,000,000 |
-- |
|
| Short-term
finance obtained |
|
|
|
55,000,000 |
15,000,000 |
|
| Lease
finance obtained |
|
|
|
1,400,000 |
-- |
|
| Mark-up
on short term finances obtained |
|
|
491,000 |
-- |
|
| Mark-up
on short-term finances given |
|
|
369,384 |
-- |
|
| Interest paid |
|
|
|
38,608,990 |
37,050,228 |
|
| Lease
rental received |
|
7,925,360 |
1,133,050 |
|
| Lease rental paid |
|
|
|
110,078 |
-- |
|
| Lease
finance given |
|
|
|
-- |
10,541,075 |
|
|
|
| 31.
INTEREST RATE RISK EXPOSURE |
|
|
| The
information about the company's exposure to interest rate risk as at June 30, |
|
| 1999
based on contractual refinancing or maturity dates which ever is earlier is
as |
|
| follows: |
|
|
|
|
|
Interest Bearing |
|
Non-interest Bearing |
|
|
|
Less than |
One month |
Over one |
|
Total |
|
|
one month |
to one year |
year |
|
|
|
|
|
Rupees |
|
| Financial
Assets |
|
|
| Net
investment in leases |
16,368,000 |
253,794,303 |
322,617,862 |
111,093,954 |
703,874,119 |
|
| Long-term
investments |
-- |
-- |
27,639,507 |
4,125,000 |
31,764,507 |
|
| Long-term
deposits |
-- |
-- |
-- |
811,305 |
811,305 |
|
| Short-term loan |
|
-- |
4,623,036 |
-- |
-- |
4,623,036 |
|
| Advances
and other receivables |
11,040,653 |
-- |
-- |
18,469,688 |
29,510,341 |
|
| Short-term
investments |
87,655,192 |
23,000,000 |
3,177,314 |
1,035,685 |
114,868,191 |
|
| Cash
and bank balances |
247,122 |
-- |
68,559,504 |
29,333,379 |
98,140,005 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
115,310,967 |
281,417,339 |
421,994,187 |
164,869,011 |
983,591,504 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Financial
Liabilities |
|
|
| Long-term |
|
| finances |
|
1,824,870 |
82,236,795 |
198,756,310 |
-- |
282,817,975 |
|
|
|
|
| Liabilities
against |
|
| assets subject |
|
|
| to finance leases |
|
127,031 |
1,535,712 |
3,488,457 |
486,250 |
5,637,450 |
|
|
|
|
| Long-term |
|
|
| deposits |
|
-- |
-- |
-- |
111,093,954 |
111,093,954 |
|
|
|
|
| Certificates of |
|
|
| investment |
|
25,000,000 |
55,000,000 |
21,100,000 |
-- |
101,100,000 |
|
|
|
|
| Short-term
finances |
10,000,000 |
70,000,000 |
-- |
-- |
80,000,000 |
|
|
|
|
| Running
finances under |
|
| mark-up
arrangement |
-- |
75,972,271 |
-- |
-- |
75,972,271 |
|
|
|
|
| Creditors,
accrued and |
|
| other liabilities |
|
-- |
-- |
-- |
26,239,049 |
26,239,049 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
36,951,901 |
284,744,778 |
223,344,767 |
137,819,253 |
682,860,699 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| On
balance sheet gap |
78,359,066 |
(3,327,439) |
198,649,420 |
27,049,758 |
|
|
|
========== |
========== |
========== |
========== |
|
| Cumulative
interest |
|
| rate sensitivity |
|
|
| gap (a) |
|
78,259,066 |
75,031,627 |
273,681,047 |
|
|
========== |
========== |
========== |
|
|
|
| (a)
The effective interest rate for financial assets and financial liabilities
are as follows. |
|
|
|
|
1999 |
|
|
|
% |
|
| Financial
Assets |
|
|
| Net
investment in finance leases |
|
|
19.25 to 28.25 |
|
| Long-term
investments |
|
|
six month LIBOR plus 2 |
|
| Short-term loan |
|
|
|
2,225 |
|
| Short-term
investment |
|
|
|
|
| -
Federal investment bonds |
|
|
15.00 |
|
| -
Term finances certificate |
|
|
18.50 to 22.50 |
|
| -
Placement and deposits |
|
|
15.25 to 19.00 |
|
| Cash
and bank balances |
|
|
6.50 to 9.50 |
|
|
| Financial
Liabilities |
|
|
| Long-term
finances |
|
11.50 to 19.35 |
|
| Certificates
of investment |
|
13.25 to 18.88 |
|
| Liabilities
against assets subject to finance lease |
|
19.17 to 21.03 |
|
| Short-term
finances |
|
13.75 to 18.25 |
|
| Running
finances under mark-up arrangement |
|
16.00 to 18.25 |
|
|
| 32.
MAN POWER |
|
| The
total number of employees as at June, 30, 1999 was 20 (1998: 19). |
|
|
| 33.
CORRESPONDING FIGURES |
|
| Corresponding
figures have been re-arranged and re-grouped wherever necessary |
|
| for
the purpose of comparison. |
|
|
|
JAVED A. CALLEA |
|
AFTAB AHMED KHAN |
|
|
Chief Executive |
|
Chairman |
|
|
|
| Pattern
of Holding of Shares As At June 30, 1999 |
|
|
| No. of |
From |
To |
Total |
|
| Shareholders |
|
Shares Held |
|
|
| 9 |
1 |
100 |
502 |
|
| 30 |
101 |
500 |
8278 |
|
| 49 |
501 |
1000 |
36716 |
|
| 131 |
1001 |
5000 |
283553 |
|
| 26 |
5001 |
10000 |
191846 |
|
| 19 |
10001 |
15000 |
227677 |
|
| 3 |
15001 |
20000 |
51290 |
|
| 2 |
20001 |
25000 |
45240 |
|
| 11 |
25001 |
30000 |
306220 |
|
| 5 |
30001 |
35000 |
116865 |
|
| 3 |
35001 |
40000 |
110679 |
|
| 3 |
40001 |
45000 |
128250 |
|
| 1 |
45001 |
50000 |
47725 |
|
| 2 |
55001 |
50000 |
116150 |
|
| 3 |
65001 |
70000 |
201710 |
|
| 2 |
70001 |
75000 |
144842 |
|
| 1 |
105001 |
110000 |
107525 |
|
| 1 |
110001 |
115000 |
110400 |
|
| 1 |
125001 |
130000 |
125120 |
|
| 1 |
185001 |
190000 |
186915 |
|
| 1 |
330001 |
335000 |
333500 |
|
| 1 |
340001 |
345000 |
343650 |
|
| 1 |
615001 |
620000 |
617550 |
|
| 1 |
635001 |
640000 |
637905 |
|
| 1 |
740001 |
745000 |
741520 |
|
| 1 |
1005001 |
1010000 |
1005350 |
|
| 1 |
1245001 |
1250000 |
1246100 |
|
| 1 |
1960001 |
1965000 |
1963992 |
|
| 1 |
2020001 |
2025000 |
2021930 |
|
| 1 |
2290001 |
2295000 |
2291000 |
|
| 1 |
3445001 |
3450000 |
3450000 |
|
| ------------------ |
|
|
------------------ |
|
| 314 |
|
17250000 |
|
| ========== |
|
========== |
|
|
| Categories
of Shareholders |
|
Number |
Shares Held |
Percentage |
|
|
| Individuals |
|
268 |
1487533 |
8.62 |
|
| Investment
Companies |
|
4 |
49286 |
0.29 |
|
| Insurance
Companies |
|
3 |
415380 |
2.40 |
|
| Joint
Stock Companies |
|
17 |
3565090 |
20.67 |
|
| Financial
Institutions |
|
9 |
5133620 |
29.76 |
|
| Modaraba
Companies |
|
2 |
744395 |
4.32 |
|
| Others |
|
11 |
5854696 |
33.94 |
|
|
|
------------------ |
------------------ |
------------------ |
|
| Total |
|
314 |
17250000 |
100.00 |
|
|
|
========== |
========== |
========== |
|
|
|
|
|
| Others |
|
| Modarabas |
|
10 |
2404696 |
13.94 |
|
| Non Residents |
|
1 |
3450000 |
20.00 |
|
|
|
------------------ |
------------------ |
------------------ |
|
| Total |
|
11 |
5854696 |
33.94 |
|
|
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
|
|
