| Dawood Leasing Company Limited |
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| Annual Report 1999 |
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| CONTENTS |
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| Corporate Information |
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| Notice of Meeting |
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| Financial Highlights |
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| Directors' Report |
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| Auditors'
Report |
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| Balance
Sheet |
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| Profit
& Loss Account |
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| Statement
of Changes in Financial Position |
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| Notes to the Financial
Statements |
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| Statement & Report Under
Section 237 |
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| of the Companies Ordinance,
1984 |
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| Pattern of Share Holding |
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| Guardian
Modaraba Management (Pvt) Limited- |
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| Subsidiary Company |
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| Corporate Information |
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| Auditors' Report |
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| Balance
Sheet |
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| Profit
& Loss Account |
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| Statement of Changes in
Financial Position |
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| Notes to the Financial
Statements |
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| Consolidated Accounts of |
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| Dawood
Leasing Company Ltd. and its Subsidiary |
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| Auditors' Report |
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| Balance Sheet |
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| Profit & Loss Account |
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| Statement
of Changes in Financial Position |
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| Notes to the Financial
Statements |
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| CORPORATE
INFORMATION |
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| Board of Directors |
Mr. Rafique Dawood |
Chairman & Chief
Executive |
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Mr. Mehboob G. Rawjee |
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Mr. Ayaz Dawood |
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Dr. Najeeb Samie |
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(Nominee of SLIC) |
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Mr. Asadullah Khawaja |
(Nominee of ICP) |
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Mr. Nasim Beg |
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(Nominee of NIT) |
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Mr. Bashir A. Sheikh |
(Nominee of Al-Faysal
Inv. Bank) |
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| Company secretary |
Syed Jamal Macdi |
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| Auditors |
M. Yousuf Adil Saleem
& Co. |
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Chartered Accountants |
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| Legal Advisors |
Mohsin Tayebaly & Co. |
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| Bankers |
Askari Commercial Bank
Ltd. |
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Bank A1-Habib Ltd. |
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Bank of Khyber |
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Bank of Punjab |
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Faysal Bank Ltd. |
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Gulf Commercial Bank Ltd. |
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Habib Bank Ltd. |
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Muslim Commercial Bank
Ltd. |
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Oman International Bank
S.A.O.G |
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Societe Generale, The
French & International Bank |
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United Bank Ltd. |
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| Registered Office |
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| and Head Office |
5-B, Lakson Square
Building # 1, |
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Sarwar Shaheed Road,
Karachi-74200 |
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Tel: (021) 568 7778 |
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Fax: (021) 568 5830 |
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E-mail: dlc @
khi.compol.com |
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| Branch Offices |
Office No. 20 & 21,
Beverly Centre, 1 st Floor, |
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56-G, Jinnah Avenue,
Islamabad-44000 |
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Tel: 051-276367 & 274194-5 |
: |
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E-mail: moeen @
comsats.net.pk |
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327/2, C-II, Township,
Lahore |
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Tel' (042) 5118141 |
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| Shares Registrar |
Ferguson Associates
(Pvt.) Ltd. |
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State Life Building No.
l-A, |
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I.I. Chundrigar Road,
Karachi. |
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Tel: (021)
2426682-2426711-5 |
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Fax: (021) 2415007,
2427938 |
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| NOTICE
OF FIFTH ANNUAL GENERAL MEETING |
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| Notice
is hereby given that the Fifth Annual General Meeting of the Company will be
held at Raffia Choudri |
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| Memorial
Centre, Sidco Avenue Centre, 1 st Floor, R.A. Lines, Karachi on Friday
December 17, 1999 at 10:45 |
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| a.m. to transact the
following business: |
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| 1.
To receive, consider and adopt the Audited Accounts of the Company for the
year ended June 30, 1999 |
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| together
with the Directors' and Auditors' Report thereon. |
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| 2.
To approve payment of Cash Dividend @ Rs. 1.00 per share to the shareholders
as recommended by the |
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| Board
of Directors for the year ended June 30, 1999. |
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| 3.
To appoint Auditors for the year 1999-2000 and to fix their remuneration. The
retiring Auditors, being |
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| eligible, offer themselves for
re-appointment. |
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| 4.
Any other business with the permission of the chair. |
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By the Order of the Board |
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| November 23, 1999 |
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Syed Jamal Macdi |
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| Karachi |
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Secretary |
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| Notes: |
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| 1.
The share transfer books of' the Company will remain closed from December I
1, 1999 to December 17, |
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| 1999 (both days inclusive). |
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| 2.
A member entitled to attend and vote at a General Meeting is entitled to
appoint a Proxy to attend and vote |
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| instead
of him/her. No person other than a member shall act as a Proxy. |
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| 3.
An instrument appointing a Proxy and the Power of Attorney or other Authority
(if any) under which it is |
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| signed
or a notarially certified copy of the Power or Authority, in order to be
valid, must be deposited at the |
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| Registered
Office of the Company, at the latest by 10:45 a.m. on December 15, 1999 and
must be duly |
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| stamped, signed and
witnessed. |
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| 4.
The shareholders are requested to notify any changes in their address and
send Zakat Declaration |
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| immediately. |
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| 5.
Account holders and sub-account holders' holding book entry securities of the
Company in Central |
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| Depository
System of Central Depository Company of Pakistan Limited who wish to attend
the Annual |
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| General
Meeting are requested to please bring original I.D. Card with copy thereof
duly attested by their |
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| Bankers for identification
purpose. |
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| FINANCIAL HIGHLIGHTS |
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1999 |
1998 |
1997 |
1996 |
1995* |
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|
Rupees in Million |
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| Authorized Capital |
500.00 |
500.00 |
300.00 |
300.00 |
300.00 |
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| Paid-up Capital |
250.00 |
250.00 |
250.00 |
250.00 |
250.00 |
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| Shareholders' Equity |
300.62 |
305.59 |
295.52 |
281.60 |
267.92 |
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| Total Assets |
1,520.99 |
926.58 |
680.10 |
539.45 |
340.45 |
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| Net Investment in Leases |
1,036.38 |
791.63 |
620.50 |
510.57 |
253.37 |
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| Provision for Lease Losses |
34.00 |
26.50 |
16.50 |
5.00 |
-- |
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| Revenue |
163.21 |
141.34 |
121.96 |
89.12 |
28.00 |
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| Income from Leasing
Operations |
154.05 |
133.36 |
121.29 |
84.66 |
21.19 |
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| Profit before Taxation |
35.29 |
28.06 |
46.41 |
46.21 |
18.09 |
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| Taxation |
15.35 |
17.89 |
1.24 |
1.27 |
0.17 |
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| Profit after Taxation |
19.94 |
10.17 |
45.16 |
44.94 |
17.92 |
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| Current Ratios |
1:1.32 |
1:1.26 |
1:1.53 |
1:0.91 |
1:6.74 |
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| Book Value Per Share |
12.02 |
12.22 |
11.82 |
11.26 |
10.71 |
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| Earning Per Share - After Tax |
0.80 |
0.40 |
1.81 |
1.79 |
0.71 |
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| Return on Equity |
6.58% |
3.38% |
15.65% |
16.35% |
13.36% |
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| Dividend Per Share (Rs.) |
1.00 |
-- |
1.25 |
1.25 |
-- |
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| * 6 months of operations. |
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| DIRECTORS' REPORT |
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| We
are pleased to present your Company's Fifth Annual Report for the year ended
June 30, 1999. |
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| Operating Results |
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1999 |
1998 |
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Rupees |
Rupees |
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| Lease Income |
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154,046,674 |
133,357,772 |
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| Other Income |
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9,160,518 |
7,986,021 |
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------------------ |
------------------ |
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163,207,192 |
141,343,763 |
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| Profit before Taxation |
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35,291,304 |
28,058,669 |
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| Provision for Taxation |
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15,352,971 |
17,890,000 |
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------------------ |
------------------ |
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19,938,333 |
10,168,669 |
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| Un-appropriated
Profit Brought Forward |
|
9,549,157 |
1,414,222 |
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| Profit Available for
Appropriation |
|
29,487,490 |
I 1,582,891 |
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| Appropriations |
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| Transfer to Statutory Reserve |
|
3,987,667 |
2,033,734 |
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| Proposed Cash Dividend |
|
25,000,000 |
-- |
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| Un-appropriated Profit
Carried Forward |
|
499,823 |
9,549,157 |
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| Review of Operations |
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| The
fiscal year 1998-99 in contrast with last year, which had witnessed the
economic turmoil of Asian tigers |
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| and
its ripple effect on other economies of the world, started with internal
enigma as the economy was on the |
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| verge
of breakdown. As stated in the last year's report, the supply-side economic
policies could not help our |
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| .economy
to rebound on account of our internal uncertainties and economic meltdown all
over the globe, these |
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| conditions,
collectively have eroded the confidence of the investors. The aftermath of
nuclear tests, freezing of |
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| Foreign
Currency Accounts, and subsequent events have brought the economic activity
to a standstill, which is |
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| still persisting. |
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| The
failure of the political system and stagnation of the economy has not only
hurt the common man, but every |
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| segment
of our society. Leasing companies, who have to grow 15% to 20% per annum to
remain in the tax |
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| shield
and make healthy profits for the shareholders, are facing difficulties in
achieving these objectives. Some |
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| of
the threats to the. leasing industry are as under: |
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| -- constant
decline in spreads due to competition, |
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| -- scarcity of good quality
borrowers, |
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| --
continuous erosion of tax shield due to dearth of investment activity, |
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| --
intrusion of other players in to the leasing business, |
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| -- non
execution of decrees issued by the courts and |
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| -- delays and defaults
in rental recoveries |
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| Your
Company while trying to address as far as possible the critical issues being
faced by the leasing sector has |
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| adopted
a more cautious and prudent approach to access new lease proposals, select
viable sectors and continue |
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| to
maintain a well-diversified portfolio of leases. |
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| We
are pleased to report that this year Textile Composite sector is at the top
of our portfolio list with an |
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| exposure
of 16%. During the fiscal 1998-99 your company has entered into 131 new lease
contracts valued at |
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| Rs.
486.45 million. The net investment in lease finance has increased from Rs.
791.63 million to Rs. 1,036.38 |
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| million
showing an increase of 30.92%. The revenue increased from 141.34 million to
Rs. 163.21 million an |
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| increase
of 15.5% and profit after tax has also jumped from Rs. 10.17 million to Rs.
19.94 million, an increase |
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| of 96%. |
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| In
continuation of our prudent accounting approach, this year we have provided
an additional Rs. 13.11 million |
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| on
account of deferred tax liability thus raising the total to Rs. 29.00
million. We do not expect that this liability |
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| will
materialize in the foreseeable future. Additionally, we have also made
provision of Rs. 7.50 million to |
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| provide
for potential lease losses. It may be noted that provision for lease losses
is now Rs. 34.00 million which |
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| is
around 3.4% of net investment in lease finance. As of June 30, 1999 all the
reserves, allowances and |
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| provisions,
put together add up to over 49% (43% 1998) of the paid-up capital of your
Company. |
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|
| Resource Mobilization |
|
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| You
will be pleased to note that we have utilized US$ 3.10 million from Asian
Development Bank's Financial |
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| Sector
Intermediation Loan, and anticipate utilizing a further US$ 3.56 million
already approved by ADB by |
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| December,
1999. Our local bankers have also extended and enhanced our credit limits, as
such, your Company |
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| does
not foresee any uncertainty in meeting its future funding requirements.
Additionally, your Company's |
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| solid
credit standing has contributed in raising funds through issue of
Certificates of Investments (COIs) to |
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| individuals and corporate
customers. |
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| Future Prospects |
|
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| The
country is in the grip of recession and a steadily declining economic
situation. Therefore, it is difficult to |
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| assess
the future outlook at the moment. The new set up governing the country has a
formidable task at hand, |
|
| we
pray that, with wisdom, honesty and hard work, the new Chief Executive will
be able to inspire trust and |
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| confidence
in the investors and thereby inflow of new investments in the country would
gather momentum |
|
|
| Given
the prevailing conditions, the management of your Company at the moment sees
very few prospects of |
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| fixed
investments in plant and machinery. The country is into "financial
deflation", and too much money is |
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| chasing
too few creditworthy clients. Accordingly, we continue to emphasize on
vendor-financing arrangements |
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| and
leasing to small and medium size entrepreneurs. |
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|
| Acquisitions |
|
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| We
are pleased to report that we had successfully closed our deals for
acquisition of the management companies |
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| of
Guardian Leasing Modaraba on March 3rd, 1999, and First General Leasing
Modaraba on August 4th, 1999 |
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| having
a paid-up capital of Rs. 100 million and Rs. 56.25 million respectively. |
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| Your
Company has also completed the process of purchasing 30% in Pakistan Venture
Capital Limited, a listed |
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| company
sponsored by Asian Development Bank, which occupies the unique distinction of
being the only listed |
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| venture
financing company in the country. |
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| With
these acquisitions Dawood Leasing wil1 be able to offer to clients a wide
range of financial services |
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| ranging
from leasing, equity investments, underwritting, morabaha and musharika
financing. |
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| Millennium Compliance |
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| You
will be pleased to note the Y2K compliance within Dawood Leasing has been
completed, as a result of our |
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| investment
in latest software in the current fiscal year. |
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| Board of Directors |
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|
| Mr.
Asadullah Khawaja, Managing Director, Investment Corporation of Pakistan who
has succeeded Mr. Junaid |
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| Z.
Dada on the Board on account of the latter's resignation, Mr. Nasim Beg,
Deputy Managing Director, |
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| National
Investment Trust has succeeded Mr. Rasheed Y. Chinoy on the Board due to
latter's resignation. The |
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| Directors
while welcoming Mr. Asadullah Khawaja and Mr. Nasim Beg, would like to place
on record their |
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| appreciation
of the services of Mr. Junaid Z. Dada and Mr. Rasheed Y. Chinoy. |
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| Auditors |
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| The
present auditors, M. Yousuf Adil Saleem & Co. retire and, being eligible,
offer themselves for re- |
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| appointment. |
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| Pattern of Shareholding |
|
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| The
pattern of Shareholding as on June 30, 1999 is annexed to these financial
statements. |
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| Acknowledgement |
|
|
| We
would like to endorse our appreciation for the confidence and support of our
valuable customers and |
|
| stakeholders
in making this year a success in spite of the economic turmoil that our
country faced. The support |
|
| and
guidance provided by the Ministry of Finance, the Security & Exchange
Commission of Pakistan and the |
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| State
Bank of Pakistan is highly appreciated. We are also grateful to our various
lease syndicate partners, |
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| lending
institutions, in particular, Asian Development Bank, for their support and
confidence and above all, the |
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| dedication
and hard work of our team members that has made it all possible. |
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| We
reiterate our mission to work with dedication and dynamism for the benefit of
all the stakeholders. |
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|
| Rafique Dawood |
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On behalf of the Board |
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| Chairman & CEO |
|
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| AUDITORS'
REPORT TO THE MEMBERS |
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| We
have audited the annexed balance sheet of Dawood Leasing Company Limited as
at June 30, 1999 and the |
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| related
profit and loss account and the statement of changes in financial position
(cash flow statement) together |
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| with
the notes forming part thereof, for the year ended on that date and we state
that we have obtained all the |
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| 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 |
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| Companies Ordinance, 1984; |
|
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| b) in our opinion: |
|
|
| (i)
the balance sheet and profit and loss account together with the notes forming
part thereof have |
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| been
drawn up in conformity with the Companies Ordinance, 1984, and are in
agreement with |
|
| the
books of account and are further in accordance with accounting policies
consistently |
|
| applied; |
|
|
| (ii)
the expenditure incurred during the year was for the purpose of the Company's
business; and |
|
|
| (iii)
the business conducted, investments made and the expenditure incurred during
the year were |
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| 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 |
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| balance
sheet, profit and loss account and the statement of changes in financial
position (cash flow |
|
| statement),
together with the notes thereon, 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 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. |
|
|
| November 17, 1999 |
M Yousuf Adil Saleem
& Co., |
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| Karachi. |
Chartered Accountants |
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|
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| BALANCE
SHEET AS AT JUNE 30, 1999 |
|
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|
|
|
1999 |
1998 |
|
|
Note |
Rupees |
Rupees |
|
|
| SHARE CAPITAL AND RESERVES |
|
| Authorized |
|
| 50,000,000 (1998--
50,000,000) |
|
| Ordinary Shares of Rs. 10/-
each |
|
500,000,000 |
500,000,000 |
|
|
============ |
============ |
|
|
| Issued, Subscribed and Paid-up |
|
| 25,000,000 Ordinary Shares of |
|
| Rs. 10/- each. Fully Paid in
Cash |
|
250,000,000 |
250,000,000 |
|
| Statutory Reserve . |
|
3 |
27,624,957 |
23,637,290 |
|
| General Reserve |
|
3 |
22,500,000 |
22,500,000 |
|
| Unappropriated Profit |
|
3 |
499,823 |
9,549,157 |
|
|
--------------------- |
--------------------- |
|
|
|
300,624,780 |
305,686,447 |
|
|
|
|
| LONG TERM LIABILITIES |
|
|
|
| Redeemable Capital |
|
4 |
14,274,989 |
44,180,241 |
|
| Long Term Loans |
|
5 |
405,057,869 |
58,230,366 |
|
| Liabilities Against Assets |
|
|
|
| Subject to Finance Lease |
|
6 |
-- |
114,814 |
|
| Lease Deposits |
|
7 |
99,152,824 |
85,255,506 |
|
| Certificates of Investment |
|
8 |
11,400,000 |
37,298,949 |
|
|
|
--------------------- |
--------------------- |
|
|
529,885,682 |
225,079,876 |
|
|
| DEFERRED LIABILITIES |
|
| Taxation |
|
29,000,000 |
15,890,000 |
|
| Staff Gratuity |
|
858,033 |
634,341 |
|
|
--------------------- |
--------------------- |
|
|
29,858,033 |
16,524,341 |
|
|
|
|
| CURRENT LIABILITIES |
|
| Short Term Borrowings |
|
9 |
433,548,078 |
193,870,522 |
|
| Certificates of Investment |
|
8 |
50,500,000 |
61,189,863 |
|
| Current
Portion of Long Term Liabilities |
10 |
108,339,332 |
71,861,925 |
|
| Accrued and Other Liabilities |
|
11 |
39,135,584 |
29,732,532 |
|
| Taxation |
|
|
4,100,000 |
3,632,748 |
|
| Proposed Dividend |
|
|
25,000,000 |
-- |
|
|
|
--------------------- |
--------------------- |
|
|
|
660,622,994 |
360,287,590 |
|
| COMMITMENTS |
|
12 |
|
|
|
|
--------------------- |
--------------------- |
|
|
1,520,991,489 |
907,578,254 |
|
|
============ |
============ |
|
|
| TANGIBLE FIXED ASSETS |
|
13 |
23,798,900 |
17,638,655 |
|
| NET
INVESTMENT IN LEASE FINANCE |
|
|
| Minimum Lease Payment
Receivables |
|
14 |
1,204,287,306 |
915,386,692 |
|
| Residual Value of Leased
Assets |
|
148,456,873 |
111,707,423 |
|
|
--------------------- |
--------------------- |
|
|
1,352,744,179 |
1,027,094,115 |
|
| Unearned Income |
|
(316,364,297) |
(235,460,248) |
|
|
| Net Investment in Lease
Finance |
|
1,036,379,882 |
791,633,867 |
|
| Provision for Lease Losses |
|
(34,000,000) |
(26,500,000) |
|
|
1,002,379,882 |
765,133,867 |
|
| Current
Portion of Net Investment in Lease Finance |
|
(426,289,808) |
(330,479,044) |
|
|
--------------------- |
--------------------- |
|
|
576,090,074 |
434,654,823 |
|
| INVESTMENT
IN SUBSIDIARY/ASSOCIATE |
15 |
45,793,350 |
-- |
|
| LONG TERM DEPOSIT |
|
|
300,000 |
-- |
|
| LONG TERM LOANS |
|
16 |
1,719,112 |
1,934,382 |
|
|
|
|
|
|
| CURRENT ASSETS |
|
| Current
Portion of Net Investment in Lease Finance |
|
426,289,808 |
330,479,044 |
|
| Short Term Investments |
|
17 |
189,799,680 |
75,511,206 |
|
| Short Term Morabaha Finances |
|
18 |
103,051,816 |
-- |
|
| Advance Against Lease
Commitments' |
|
|
9,700,000 |
36,317,586 |
|
| Advances, Deposits and
Prepayments |
|
19 |
6,162,379 |
6,657,577 |
|
| Other Receivables |
|
20 |
27,249,820 |
1,999,878 |
|
| Cash and Bank Balances |
|
21 |
111,036,550 |
2,385,103 |
|
|
|
--------------------- |
--------------------- |
|
|
873,290,053 |
453,350,394 |
|
|
--------------------- |
--------------------- |
|
|
1,520,991,489 |
907,578,254 |
|
|
============ |
============ |
|
| The
annexed notes form an integral part of these financial statements. |
|
|
| Rafique Dawood |
|
Dr. Najeeb Samie |
|
| Chairman & Chief
Executive |
|
Director |
|
|
|
|
| PROFIT & LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 1999 |
|
|
|
1999 |
1998 |
|
|
Note |
Rupees |
Rupees |
|
|
| Income |
|
|
|
| Lease Income |
|
154,046,674 |
133,357,772 |
|
| Return on Deposits and
investments |
|
22 |
8,746,096 |
7,550,256 |
|
| Gain on Sale of Securities |
|
136,734 |
386,584 |
|
| Other Income |
|
277,688 |
49,181 |
|
|
--------------------- |
--------------------- |
|
|
163,207,192 |
141,343,793 |
|
|
| Expenditure |
|
| Administration
and Operating Expenses |
23 |
23,565,327 |
22,363,663 |
|
| Financial Charges |
|
24 |
99,883,895 |
68,849,641 |
|
| Provision for Lease Losses |
|
7,500,000 |
10,000,000 |
|
| (Reversal)
/ Provision for Diminution in Value of |
|
| Investments |
|
(3,033,334) |
12,071,820 |
|
|
--------------------- |
--------------------- |
|
|
127,915,888 |
113,285,124 |
|
|
--------------------- |
--------------------- |
|
|
| Profit Before Taxation |
|
35,291,304 |
28,058,669 |
|
|
| Provision for Taxation |
|
|
|
| Current |
|
2,100,000 |
2,000,000 |
|
| Prior |
|
142,971 |
-- |
|
| Deferred |
|
13,110,000 |
15,890,000 |
|
|
--------------------- |
--------------------- |
|
|
15,352,971 |
17,890,000 |
|
|
--------------------- |
--------------------- |
|
| Profit After Taxation |
|
19,938,333 |
10,168,669 |
|
|
|
| Unappropriated
Profit Brought Forward |
|
9,549,157 |
1,414,222 |
|
|
|
--------------------- |
--------------------- |
|
| Profit Available for
Appropriation |
|
29,487,490 |
11,582,891 |
|
|
| Appropriations |
|
| Transferred to Statutory
Reserve |
|
3,987,667 |
2,033,734 |
|
| Proposed
Cash Dividend Rs. 1 Per Share (1998 - Nil) |
|
25,000,000 |
-- |
|
|
--------------------- |
--------------------- |
|
|
28,987,667 |
2,033,734 |
|
|
--------------------- |
--------------------- |
|
| Unappropriated Profit Carried
Forward |
|
499,823 |
9,549,157 |
|
|
============ |
============ |
|
| Earning Per Share - Basic and
Diluted |
|
27 |
|
| Pre-Tax |
|
1.41 |
1.12 |
|
| Post-Tax |
|
0.80 |
0.41 |
|
|
| The
annexed notes form an integral part of these financial statements. |
|
|
| Rafique Dawood |
|
Dr. Najeeb Samie |
|
| Chairman & Chief
Executive |
|
Director |
|
|
|
|
|
|
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| FOR
THE YEAR ENDED JUNE 30, 1999 |
|
|
| A.
CASH FLOW FROM OPERATING ACTIVITIES |
|
|
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
| Profit After Taxation |
|
19,938,333 |
10,168,669 |
|
| Adjustment
to determine Net Cash Flows: |
|
| Depreciation |
|
5,505,186 |
2,929,938 |
|
| (Gain) on Sale of Investment |
|
(! 36,734) |
(386,584) |
|
| Financial Charges |
|
99,883~895 |
68.849,641 |
|
| (Gain)/Loss on Sale of Assets |
|
(16.374) |
40,773 |
|
| Provision for Gratuity |
|
376,447 |
742,600 |
|
| Provision for Lease Losses |
|
7,500,000 |
10,000,000 |
|
| (Reversal)/Provision
for Diminution in Value of Investments |
(3,033,334) |
12,071,820 |
|
| Provision for Deferred
Taxation |
|
13,110,000 |
15,890,000 |
|
| Provision for Taxation |
|
2,242,971 |
2,000,000 |
|
|
--------------------- |
--------------------- |
|
|
125,432,057 |
112,138,188 |
|
|
--------------------- |
--------------------- |
|
| Operating
Profit Before Working Capital Changes |
|
145.370,390 |
122.306,857 |
|
| Working Capital Changes |
|
| Advances, Deposits and
Prepayments |
|
(7,050) |
(1,182,653) |
|
| Other Receivables |
|
(25,249,942) |
(1,478,288) |
|
| Accrued and Other Liabilities |
|
(651,595) |
(1,409,770) |
|
|
--------------------- |
--------------------- |
|
|
(25,908,587) |
8,748,829 |
|
|
--------------------- |
--------------------- |
|
|
119,461,803 |
131,055,686 |
|
| Financial Charges Paid |
|
(89,829,248) |
(64,757,411) |
|
| Gratuity Paid |
|
(152,755) |
(108,259) |
|
| Taxation Paid |
|
(1,.263,161) |
(2,327,930) |
|
|
--------------------- |
--------------------- |
|
| Net Cash From Operating
Activities |
|
28,216,639 |
63,862,086 |
|
|
| B.
CASH FLOW FROM FINANCING ACTIVITIES |
|
| Redeemable Capital Obtained |
|
25,000,000 |
-- |
|
| Long Term Loans Obtained |
|
383,286,406 |
30,000,000 |
|
| Redemption of Redeemable
Capital |
|
(69,089,644) |
(52,301,738) |
|
| Repayment of Lease Liability |
|
( 151,735) |
(209,377) |
|
| Lease Deposits |
|
28,137,135 |
27,172,619 |
|
| Short Term Borrowings |
|
239,677,554 |
127,885,751 |
|
| Certificates of Investment |
|
(36,588,812) |
98,488,812 |
|
| Dividend Paid |
|
-- |
(31,050,927) |
|
|
--------------------- |
--------------------- |
|
| Net Cash from Financing
Activities |
|
570,270,904 |
199,985,140 |
|
|
| C.
CASH FLOW USED IN INVESTING ACTIVITIES |
|
| Long Term Deposit |
|
(300,000) |
-- |
|
| Net Investment in Lease
Finance |
|
(244,746,015) |
(171,130,225) |
|
| Capital Expenditure |
|
( l 2~899.754) |
(9,472,425) |
|
| Proceeds from Sale of Fixed
Assets |
|
1,250,699 |
360,278 |
|
| Long Term Investments - net |
|
(45,793,350) |
-- |
|
| Long Term Loans - Staff |
|
204,960 |
(318,718) |
|
| Short Term Investments |
|
( 153,145,146) |
(65,143,614) |
|
| Sale Proceeds of Marketable
Securities |
|
42,026,740 |
7,403.87 |
|
| Short Term Morabaha Finances |
|
( 103,051,8 l 6) |
-- |
|
| Advance Against Lease
Commitments |
|
26,617,586 |
(36,317,586) |
|
|
--------------------- |
--------------------- |
|
| Net Cash Used in Investing
Activities |
|
(489,836,096) |
(274,618,419) |
|
| Net
Increase / (Decrease) in Cash and Cash Equivalent |
|
108,651,447 |
(10,771,193 |
|
| Cash
and Cash Equivalent at the Beginning of the Year |
|
2,385,103 |
13,156,296 |
|
|
--------------------- |
--------------------- |
|
| Cash
and Cash Equivalent at the End of the Year |
|
111,036,550 |
2,385,103 |
|
|
============ |
============ |
|
| Rafique Dawood |
|
Dr. Najeeb Samie |
|
| Chairman & Chief
Executive |
|
Director |
|
|
|
|
|
| NOTES
TO FINANCIAL STATEMENTS |
|
| FOR
THE YEAR ENDED JUNE 30, 1999 |
|
|
| 1.
THE COMPANY AND ITS OPERATIONS |
|
| The
Company was incorporated on June 22, 1994 as a Public Limited Company and is
listed on the Karachi |
|
| and
Islamabad Stock Exchanges. The main business activity of the Company is
leasing of assets. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1 Accounting Convention |
|
| These financial statements have been
prepared under the "historical cost convention". |
|
|
| 2.2 Revenue Recognition |
|
| The
Company follows the Finance Method in recognizing income on lease contracts.
Under this |
|
| method
the unearned income i.e. the excess of aggregate lease rentals and the
estimated residual value |
|
| over
the cost of the leased asset is deferred and then amortized over the terms of
the lease applying the |
|
| annuity
method, so as to produce a constant rate of return on net investment in the
lease. |
|
|
| Front
end fee, commitment fee and other commissions are taken to income when
realized. |
|
|
| The
transactions of purchase and resale obligation of Government Securities at
contracted rates for |
|
| specified
period of time are recorded at the contracted purchase price and the
differential of the |
|
| contracted
purchase and resale prices is taken to income. |
|
|
| Profit
on Morabaha finance and other financing are accrued based on time proportion
basis. |
|
|
| Return
on securities is recognized on accrual basis. |
|
|
| Dividend
income is recognized at the time of closure of the shares transfer book of
the company |
|
| declaring the dividend. |
|
|
| Lease
income and profit on Morabaha financing which are classified under Prudential
Regulations for |
|
| Non-Banking
Financial Institutions are not taken into income. |
|
|
| 2.3 Staff Retirement Benefits |
|
| The
Company operates a funded contributory Provident Fund Scheme for its
employees. Employees |
|
| are
also entitled to gratuity after completion of three years continuous service
in accordance with the |
|
| service rules of the Company. |
|
|
| 2.4 Provision for Lease
Losses |
|
| Besides
making provisions as per the requirement of Prudential Regulations for
Non-Banking |
|
| Financial
Institutions. The Company, exercising prudence, also makes a general
provision at a |
|
| reasonable
level, which in the judgement of management is adequate to provide for
potential losses on |
|
| lease
portfolio that can be reasonably anticipated. Both the allowances are shown
as deduction from |
|
| the
lease investments as per the directives of Institute of Chartered Accountants
o~' Pakistan. Last year |
|
| provision
for potential lease losses was shown separately under liabilities. |
|
|
| 2.5 Taxation |
|
| The
charge for current taxation is based on taxable income at the current rates
of taxation. On lease |
|
| income,
it is computed as if all leases are operating leases, after taking into
account allowances |
|
| available
for depreciation in respect of fixed assets under lease. |
|
|
| The
tax effect for deferred taxation is calculated using the liability method on
all major timing |
|
| differences
which are expected to reverse in foreseeable future. As a matter of prudence,
deferred tax |
|
| debits are not accounted for. |
|
|
| 2.6
Tangible Fixed Assets and Depreciation |
|
| These
are stated at cost less accumulated depreciation. Depreciation is charged to
income, applying the |
|
| straight
line method whereby cost of an asset is written off over its estimated useful
life. A full year's |
|
| depreciation
is charged on all assets acquired during the year while no depreciation is
charged on |
|
| assets disposed off during
the year. |
|
|
| Normal
repairs and maintenance are charged to income as and when incurred. Gain and
losses on |
|
| disposal,
if any, are taken to profit and loss account. |
|
|
| 2.7 Investments |
|
|
| 2.7.1 Subsidiary/Associate |
|
| The
Company follows "Cost Method" of accounting in recognizing the
investments in |
|
| subsidiary/associate. |
|
|
| 2.7.2 Long Term |
|
| These
are stated at cost and are reduced to recognize a decline other than
temporary in values, if |
|
| any. |
|
|
| 2.7.3 Short Term |
|
| These
are stated at lower of moving average cost and market/break-up value on
aggregate |
|
| portfolio basis. |
|
|
| 2.8 Foreign Currency
Transaction |
|
| These
are accounted for in Rupees at the exchange rate on the date of transaction.
Assets and liabilities |
|
| in
foreign currencies are converted into Rupees at the rate of exchange on the
balance sheet date. In |
|
| cases
where exchange risk cover has been obtained from State Bank of Pakistan the
foreign currency |
|
| amounts
are translated into rupees at the exchange rate prevailing on the date of
disbursement or |
|
| renewal. |
|
|
| Exchange
risk fee and differences arising due to hedging mechanism are accounted for
as deferred |
|
| revenue
or cost as the case may be, and are credited to income or amortized
respectively over the term |
|
| of the transaction. |
|
|
| 2.9 Offsetting |
|
| A
financial asset and financial liability is offset and the net amount reported
in the balance sheet if the |
|
| Company
has a legal enforceable right to setoff the transactions and also intends
either to settle on a |
|
| net
basis or to realize the asset and settle the liability simultaneously.
Corresponding income 'on the |
|
| asset
and charge on the liability is also offsetted. |
|
|
| 3.
STATEMENT OF CHANGES IN EQUITY |
|
|
|
Paid-up Capital |
Statutory |
General |
Unappropriated |
Total |
|
|
|
Reserve* |
Reserve |
Profit |
|
|
|
| Balance as at June 30, 1997 |
250,000,000 |
21,603,556 |
22,500,000 |
1,414,222 |
295,517,778 |
|
| Profit for the year |
-- |
-- |
-- |
10,168,669 |
10,168,669 |
|
| Appropriation |
|
| Transfer |
-- |
2,033,734 |
-- |
(2,033,734) |
-- |
|
|
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
|
| Balance as at June 30. 1998 |
250,000,000 |
23,637,290 |
22,500,000 |
9,549,157 |
305,686,447 |
|
| Profit for the year |
-- |
-- |
-- |
19,938,333 |
19,938,333 |
|
| Appropriations |
|
| Transfer |
-- |
31,987,667 |
-- |
(3,987,667) |
-- |
|
| Dividend |
-- |
-- |
-- |
(25,000,000) |
(25,000,000) |
|
|
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
|
| Balance as at June 30, 1999 |
250,000,000 |
27,624,957 |
22,500,000 |
499,823 |
300,624,780 |
|
|
============ |
============ |
============ |
============ |
============ |
|
|
|
| *
The reserve is created by transferring 20% of the after tax profit for the
year which is required under Rule-3 of |
|
| the
Prudential Regulations for Non-Banking Financial Institutions. |
|
|
| 4. REDEEMABLE CAPITAL |
|
| SECURED (NON-PARTICIPATORY) |
|
|
|
|
Finance Under |
|
|
|
Term Finance Certificates |
|
Morabaha |
Mark-up |
1999 |
1998 |
|
|
I & II |
II1 |
IV |
Finance |
Arrangement |
Rupees |
Rupees |
|
|
| Opening Balance |
20,345,822 |
18,195,614 |
-- |
30,000,000 |
11,488,262 |
80,029,698 |
132,331.44 |
|
| Obtained During the Year |
-- |
-- |
25,000,000 |
-- |
-- |
25,000,000 |
-- |
|
|
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
|
|
|
|
20,345,822 |
18,195,614 |
25,000,000 |
30,000,000 |
11,488,262 |
105,029,698 |
132,331,436 |
|
| Paid During the Year |
(20,345,822) |
(8,233,309) |
(3,240,185) |
(30,000,000) |
(7,270,328) |
(69,089,644) |
(52,301,738) |
|
|
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
|
|
-- |
9,962,305 |
21,759,815 |
-- |
4,217,934 |
35,940.05 |
80,029,698 |
|
| Payable Within One Year |
|
|
| Shown .Under Current
Liabilities |
-- |
(9,962,305) |
(7,484,826) |
-- |
(4,217,934) |
(21,665,065) |
'(35,849,457) |
|
|
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
|
|
-- |
-- |
14,274,989 |
-- |
-- |
14,274,989 |
44,180,24 I |
|
|
============ |
============ |
============ |
============ |
============ |
============ |
============ |
|
| Repayment Period |
-- |
Sept. 27, 1997 |
'Sep. 01, 1998 |
-- |
Mar. 14, 1997 |
|
|
-- |
Mar. 27, 2000 |
'Sep. 01,2001 |
-- |
Dec. 14, 1999 |
|
| Sale Price |
-- |
25,000,000 |
25,000,000 |
-- |
20,000,000 |
|
| Purchase Price |
-- |
35,712,210 |
35,712,210 |
-- |
27,769,024 |
|
| Prompt Payment Bonus |
-- |
1,271,106 |
1,271,106 |
-- |
-- |
|
|
|
|
|
|
|
| These
are secured by way of a pari-passu charge on all. assets and book debts of
the Company through |
|
| hypothecation.
Similar arrangements unless specified have been made to secure the long term
loans (refer note |
|
| 5)
and short term borrowings (refer note 9). |
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
| 5. LONG TERM LOANS- SECURED |
|
| Foreign Currency |
|
| Asian Development Bank (5.1) |
|
124,3563)36 |
-- |
|
| Local Currency |
|
| From Commercial Banks (5.2) |
|
215,000,004 |
20,000,000 |
|
| From Investment Banks (5.3) |
|
128,93(I,366 |
65,000,000 |
|
|
--------------------- |
--------------------- |
|
|
468,286,406 |
85,000,000 |
|
| Payable Within One Year Shown |
|
| under Current Liabilities |
|
(63,228,537) |
(26,769,634) |
|
|
--------------------- |
--------------------- |
|
|
405,057,869 |
58,230,366 |
|
|
============ |
============ |
|
|
|
|
| 5.1
This represents a fifteen year term facility, with a grace period of three
years, obtained in tranches |
|
| under Financial Sector Intermediation Loan
# 137 I-PAK. This carries interest @ 0.25% over variable |
|
| Ordinary Capital Resource (OCR) rate of
ADB. The loan repayments are semi-annual and secured by |
|
| guarantee of a development financial
institution. The guarantee is secured against hypothecation of |
|
| assets including book debts of the Company
ranking pari-passu with charges created to secure |
|
| redeemable capital (Refer Note 4) and short
term borrowings (Refer Note 9). The Company has |
|
| obtained exchange risk cover from State
Bank of Pakistan. |
|
|
| The
total approved facility amounts to US$ 6.662 million out of which US$ 2.459
million have been |
|
| received
upto the balance sheet date. The balance amount of US$ 4.203 is expected
during the fiscal |
|
| year
1999-2000 out of which US$ 0.642 has already been received subsequent to the
balance sheet |
|
| date. |
|
|
| 5.2
These are secured against hypothecation of assets including book debts of the
Company ranking pari- |
|
| passu with charges created in favour of
other lenders to secure redeemable capital (Refer Note 4) and |
|
| short term borrowings (Refer Note 9),
except the loan of Rs. 100 million which is secured by second |
|
| charge on all assets including book debts
of the Company. The loan of Rs. 35 million has been |
|
| obtained under sale and purchase agreement
on semi-annually rollover basis. |
|
|
| These
loans are subject to mark-up rate ranging from Rs. 0.3425 to 0.5479 per Rs.
1,000/- per day. |
|
|
| 5.3
These include Rs. 100.70 million which is secured by pledge of US$ bonds. The
balance amount is |
|
| secured against hypothecation of assets
including book debts of the Company ranking pari-passu with |
|
| charges created in favour of other lenders
to secure redeemable capital (Refer Note 4) and short term |
|
| borrowings (Refer Note 9). |
|
|
| These
loans are subject to mark-up rate ranging from Rs. 0.3940 to Rs. 0.5479 per
Rs. 1,000/- per day. |
|
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
| 6.
LIABILITIES AGAINST ASSETS SUBJECT |
|
| TO FINANCE LEASE |
|
| Opening Balance |
|
357,580 |
566,957 |
|
| Paid During the Year |
|
(151,735) |
(209,377) |
|
|
--------------------- |
--------------------- |
|
|
205,845 |
357,580 |
|
| Security Deposit |
|
(73,600) |
(73,600) |
|
|
--------------------- |
--------------------- |
|
|
132,245 |
283,980 |
|
| Payable Within One Year Shown |
|
| under Current Liabilities |
|
(132,245) |
( 169,166) |
|
|
--------------------- |
--------------------- |
|
|
-- |
114,814 |
|
|
============ |
============ |
|
| This
represents a vehicle acquired under finance lease agreement from a leasing
company. |
|
| The
cost plus financial charges are payable in 36 monthly installments of Rs.
13,082/-. Implicit rate of |
|
| return is 18% per annum. |
|
|
| The
future minimum lease payments to which the company is committed at June 30,
1999 are as under: |
|
|
|
Rupees |
|
|
| Year Ended June 30, 2000 |
|
143,902 |
|
| Financial
Charges Allocated to Future Period |
|
(11,657) |
|
|
|
--------------------- |
|
|
|
132,245 |
|
|
============ |
|
| 7. LEASE DEPOSITS |
|
| These
represent the security deposits (lease key money) received from lessees under
lease contracts and are |
|
| repayable
at the expiry of their respective lease period. |
|
|
| 8. CERTIFICATES OF INVESTMENT |
|
| These
represent the mobilization of funds under the scheme of certificates of
investment issued with the |
|
| permission
of Security & Exchange Commission of Pakistan. The scheme is based on
profit and loss |
|
| sharing
basis. These certificates are for the terms ranging from three months to five
years. |
|
|
| 9. SHORT TERM BORROWINGS |
|
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
| Secured (9.1) |
|
| From Commercial Banks |
|
| Morabaha Finance |
|
-- |
25,000,000 |
|
| Running Finance |
|
34,548,078 |
30,470,522 |
|
| From
Non-Banking Financial Institutions |
|
35,000,000 |
15,000,000 |
|
|
| Unsecured |
|
| Commercial Banks |
|
45,000,000 |
-- |
|
| Non-Banking Financial
Institutions |
|
319,000,000 |
88,400,000 |
|
| Others |
|
-- |
35,000,000 |
|
|
--------------------- |
--------------------- |
|
|
433,548,078 |
193,870,522 |
|
|
============ |
============ |
|
|
|
|
| 9.1
These facilities are secured against hypothecation of assets including book
debts of the Company |
|
| ranking pari-passu with the charges created
to secure redeemable capital (Refer Note 4) and long term |
|
| loans (Refer Note 5). |
|
|
| The
sanctioned running finance facilities of Rs. 110 million from commercial
banks are renewable |
|
| yearly.
The letter of credit acceptance facilities of Rs. 45 million from commercial
banks are not |
|
| utilised. |
|
|
| The
rate of mark up ranges from Rs. 0.4178 to Rs. 0.4931 per Rs. 1,000/- per day. |
|
|
| 10.
CURRENT PORTION OF LONG TERM LIABILITIES |
|
| Redeemable Capital |
|
21,665,065 |
35,849,457 |
|
| Long Term Loans |
|
63,228,537 |
26,769,634 |
|
| Lease Liabilities |
|
132,245 |
169,166 |
|
| Lease Deposits |
|
23,313,485 |
9,073,668 |
|
|
--------------------- |
--------------------- |
|
|
108,339,332 |
71,861,925 |
|
|
============ |
============ |
|
| 11.
ACCRUED AND OTHER LIABILITIES |
|
| Mark-up/Return on Secured |
|
| Redeemable Capital |
|
2,061,188 |
2,474,251 |
|
| Long Term Loans |
|
4,161,391 |
2,187,395 |
|
| Short Term Borrowings |
|
4,611,024 |
2,473,322 |
|
| On Unsecured |
|
| Short Term Borrowings |
|
9,747,247 |
1,901,052 |
|
| Certificates of Investment |
|
2,483,615 |
3,973,798 |
|
| Advance from Clients |
|
14,177,893 |
12,120,226 |
|
| Withholding Tax |
|
69,360 |
2,258,517 |
|
| Accrued Expenses |
|
1,155,497 |
819,141 |
|
| Unclaimed Dividend |
|
494,967 |
500,303 |
|
| Others |
|
173,402 |
1,024,527 |
|
|
--------------------- |
--------------------- |
|
|
39,135,584 |
29,732,532 |
|
|
============ |
============ |
|
|
|
| 12. COMMITMENTS |
|
| Lease
financing contracts committed but not executed at the balance sheet date
amounted to Rs. 42 million |
|
| (1998 - Rs. 89 million). |
|
|
|
|
| 13. TANGIBLE FIXED ASSETS |
|
|
|
| Operating Assets (13. l) |
|
23,798,900 |
9,860,748 |
|
| Capital Work in Progress |
|
-- |
7,777,907 |
|
|
--------------------- |
--------------------- |
|
|
23,798,900 |
17,638,655 |
|
|
============ |
============ |
|
| 13.1
OPERATING ASSETS - TANGIBLE |
|
|
Cost at |
Additions/ |
Cost at |
Accumulated |
Depreciation |
Accumulated |
Book Value |
|
|
| Particulars |
July 01, |
Transfer/ |
June 30, |
Depreciation |
for the |
Depreciation |
June 30, |
Rate |
|
|
1998 |
Deletions) |
1999 |
at July 01, |
Year |
at June 30, |
1999 |
% |
|
|
|
1998 |
|
1999 |
|
|
|
|
|
| Company Owned |
|
| Office Premises |
3,804,092 |
7,777,907 |
11.581,999 |
1,521,637 |
1,158,200 |
2,679,837 |
8,902,162 |
10 |
|
| Lease-hold Improvements |
1,945,303 |
5,939,883 |
7,885,186 |
680,448 |
788,518 |
1,468,966 |
6,416,220 |
10 |
|
| Furniture and Fixtures |
3,027,677 |
499,500 |
3,527,177 |
1,178,823 |
349,953 |
1,528,776 |
1,998,401 |
10 |
|
| Equipment and Appliances |
3,489,892 |
2,118,000 |
5,337,892 |
1,462,844 |
1,413,420 |
2,805,463 |
2,532,429 |
20 |
|
|
(270,000) |
|
| Vehicle |
6,035,264 |
4,691,371 |
8,554,082 |
3,969,528 |
1,717,695 |
4,759,194 |
3,794,888 |
20 |
|
|
2,172,553 |
|
|
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
|
|
18,302,228 |
21,026,661 |
36,886,336 |
8,813,280 |
5,427,786 |
13,242,236 |
23,644,100 |
|
|
|
(2,442,553 |
|
|
| Under Lease |
|
| Vehicle |
736,000 |
'(349,000) |
387,000 |
364,200 |
77,400 |
232,200 |
154,800 |
20 |
|
|
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
|
| Rupees |
19,038,228 |
21,026,661 |
37,273,336 |
9,177,480 |
5,505,186 |
13,474,436 |
23,798,900 |
|
|
(2,791,553) |
|
|
============ |
============ |
============ |
============ |
============ |
============ |
============ |
|
| 1998 Rupees |
18,091,355 |
1,694,518 |
19,038,228 |
6,594,139 |
2,929,938 |
9,177,480 |
9,860,748 |
|
|
(747,645) |
|
|
============ |
============ |
============ |
============ |
============ |
============ |
============ |
|
|
|
|
| 13.2 DISPOSAL OF ASSETS |
|
|
|
| Particulars |
Mode of |
Sold to |
Cost |
Accumulated |
Book |
Sale |
|
|
Disposal |
|
Depreciation |
Value |
Proceeds |
|
|
| Equipment |
|
| & |
|
| Appliance |
Negotiation |
Shirazi Trading Co. |
150,000 |
30,000 |
120,000 |
45,000 |
|
|
(Pvt.) Ltd. |
|
|
' 3rd Floor, Ibrahim
Estate, |
|
|
Shahra-e-Faisal, Karachi. |
|
|
| --do- |
Negotiation |
Mr. Hamid Makuwala |
60,000 |
24,000 |
36,000 |
60,000 |
|
|
Ex-employee |
|
|
B/66, Block-W, |
|
|
Allama lqbal Town, |
|
|
North Nazimabad, Karachi. |
|
|
| --do- |
Leased Out |
Mr. Suleman Qasim |
36,000 |
7,200 |
28,800 |
36,000 |
|
|
Ex-employee |
|
|
House # 59, Street # 62, |
|
|
Sector F- 10/3,
Islamabad. |
|
|
| --do- |
Negotiation |
Mr. Aslam lqbal |
24,000 |
9,600 |
14,400 |
24,000 |
|
|
Ex-employee |
|
|
C- 1/35, Block-2, Ayaz
Town |
|
|
Gulshan-e-lqbal, Karachi. |
|
|
| Vehicle |
Negotiation |
Mr. Hamid Makuwala |
424,440 |
339.55 |
84,888 |
90,000 |
|
|
Ex-employee |
|
|
B/66, Block-W, |
|
|
Allama lqbal Town, |
|
|
North Nazimabad, Karachi. |
|
|
| -- do -- |
Negotiation |
Mr. Jamalullah Macdi |
457,957 |
366,366 |
91,591 |
91,591 |
|
|
Employee |
|
|
As per company policy |
|
|
House # A-98, Sector 1
l-A, |
|
|
North Karachi Township, |
|
|
Karachi. |
|
|
| -- do -- |
Negotiation |
Mr. Shah Faisal |
392,540 |
314,032 |
78,508 |
78,508 |
|
|
. Employee |
|
|
As per company policy |
|
|
D-7, Erum Villas,
Block-14, |
|
|
Gulshan-e-lqbal, Karachi. |
|
|
| -- do -- |
Insurance Claim |
Orient Insurance Co. Ltd. |
293,695 |
117,478 |
176,217 |
235,000 |
|
|
Dean Arcade, Block-8, |
|
|
Kahkashan Clifton,
Karachi. |
|
|
| -- do -- |
Insurance Claim |
-- do -- |
288,321 |
-- |
288,321 |
275,000 |
|
| -- do -- |
Insurance Claim |
-- do -- |
315,600 |
-- |
315,600 |
315,600 |
|
|
|
--------------------- |
--------------------- |
--------------------- |
--------------------- |
|
|
Rupees |
2,442,553 |
1,208,228 |
1,234,325 |
1,250,699 |
|
|
============ |
============ |
============ |
============ |
|
|
Rupees (1998) |
747,645 |
346,594 |
401,051 |
190,000 |
|
|
============ |
============ |
============ |
============ |
|
|
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
| 14.
MINIMUM LEASE PAYMENT RECEIVABLES |
|
|
| Due Within One Year |
|
501,114,893 |
320,932,693 |
|
| Due
After One Year but not more than 5 years |
|
703,172,413 |
594,453,999 |
|
|
--------------------- |
--------------------- |
|
|
1,204,287,306 |
915,386,692 |
|
|
============ |
============ |
|
| 15.
INVESTMENT IN SUBSIDIARY/ASSOCIATE |
|
| Subsidiary |
|
|
| Guardian
Modaraba Management (Pvt.) Ltd. |
|
| Percentage of holding 99.80%,
1998: Nil |
|
| 2,495,000
ordinary shares of Rs. 10/- each. 1998: Nil. |
|
| Net assets value as at June
30, 1999: |
|
| Rs. 20.21 million, 1998: Nil |
|
15,793,350 |
-- |
|
|
| Associate |
|
|
| Pakistan Venture Capital
Limited |
|
| Percentage of holding 30%,
1998: Nil |
|
| 3,000,000
ordinary shares of Rs. 10/- each. 1998: Nil |
|
| Net assets value as at June
30, 1999: |
|
| Rs. 34.77 million, 1998: Nil |
|
| Market Value Rs. 12 million |
|
30,000,000 |
-- |
|
|
--------------------- |
--------------------- |
|
|
45,793,350 |
-- |
|
|
============ |
============ |
|
|
| 15.1
The above investments are carried at cost. Had these investments been
accounted for using the |
|
| "Equity Method", the value of
investments on the basis of latest available audited accounts for the |
|
| year ended June 30, 1999 of the investees
and their effects on the profit and loss account would have |
|
| been as follows: |
|
|
Value of |
|
|
investments |
|
|
Effect on |
Effect on |
|
|
Profit |
Profit |
|
|
Rupees |
Rupees |
|
|
| Guardian
Modaraba Services (Pvt.) Limited |
|
14,611,558 |
(1,181,792) |
|
| Pakistan Venture Capital
Limited |
|
33,338,280 |
.3,338,280 |
|
|
--------------------- |
--------------------- |
|
|
47,949,838 |
2,156,488 |
|
|
============ |
============ |
|
|
|
|
|
|
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
| 16. LONG TERM LOANS |
|
| CONSIDERED GOOD |
|
|
| Staff' loan |
|
1,930,910 |
2,135,870 |
|
| Recoverable Within One Year |
|
(211,798) |
(201,488) |
|
|
--------------------- |
--------------------- |
|
|
1,719,112 |
1,934,382 |
|
|
============ |
============ |
|
|
|
|
| The
loans under the scheme have been provided to executives of the Company to
facilitate construction or |
|
| purchase
of house, which are repayable over a period of 10 years with a service charge
@5% per annum. |
|
|
| Maximum
amount due from executives at the end of any month during the year was Rs.
2,135,870/- (1998: |
|
| Rs.
2,178,964/-) and the amount outstanding for the period exceeding three years
is Rs. 1,284, 681 (1998: |
|
| Rs. 1,499,951/-). |
|
|
| 17. SHORT TERM INVESTMENTS |
|
|
| Marketable Securities |
|
17.1 |
29,854,034 |
19,011,206 |
|
| Federal Investments Bonds (10
years) |
|
|
4,000,000 |
19,000,000 |
|
| US Dollar Bonds |
|
l 7.2 |
l 15.91 1,357 |
-- |
|
| Placements and Deposits |
|
17.3 |
40,034,289 |
37,500,000 |
|
|
--------------------- |
--------------------- |
|
|
189,799,680 |
75,511,206 |
|
|
============ |
============ |
|
| 17.1 Marketable Securities |
|
|
No. of |
Market/ |
|
|
| Quoted |
Shares/ |
Breakup |
|
|
|
Certificates |
Value |
Cost |
Cost |
|
| Shares |
|
| Adamjee Insurance Company
Ltd. |
36,252 |
1,359,450 |
2,578,500 |
2,578,500 |
|
| B.R.R. International Modaraba |
2,000 |
11,000 |
10,260 |
10,260 |
|
| (former B.R.R. 2nd Modaraba) |
|
| Bank A1-Habib Limited |
9,108 |
167,587 |
204,923 |
204,923 |
|
| Dawood Hercules Ltd. |
1,200 |
122,400 |
92,500 |
92,500 |
|
| Engro Chemicals Ltd. |
5,520 |
400,200 |
524,000 |
524,000 |
|
| Glaxo Wellcome-Pakistan Ltd. |
2,000 |
70,000 |
80,500 |
-- |
|
| Hub Power Company Ltd. |
5,000 |
70,500 |
67,984 |
266,250 |
|
| ICI Pakistan Ltd.. |
6,250 |
55,313 |
119,766 |
119,766 |
|
| First Imrooz Modaraba |
500 |
13,875 |
10,600 |
10,600 |
|
| KASB Premier Fund Ltd. |
50,000 |
115,000 |
500,000 |
500,000 |
|
| Pakistan State Oil Company
Ltd. |
4,269 |
394,883 |
1,123,182 |
1,123,182 |
|
| Pakistan Telecommunication
Co. Ltd. |
5,000 |
99,250 |
155,750 |
155,750 |
|
| Pakland Cement Ltd. |
-- |
-- |
-- |
12,072,740 |
|
| Saadi Cement Ltd. |
2,500,000 |
6,250,000 |
12,500,000 |
12,500,000 |
|
| Sui Southern Gas Company Ltd. |
5,285 |
45,451 |
133,230 |
133,230 |
|
| 25th I.C.P. Mutual Fund |
7,500 |
79,125 |
191,325 |
191,325 |
|
|
--------------------- |
--------------------- |
--------------------- |
--------------------- |
|
| Balance c/f |
|
9,254,034 |
18,292,520 |
30,483,026 |
|
|
| Balance b/f |
|
99,254,034 |
18,292,520 |
30,483,026 |
|
|
|
|
| Term Finance Certificates
(TFCs') |
|
|
|
| Dewan Salman Fibres Limited |
|
10,000,000 |
10,000,000 |
-- |
|
| Saudi Pak Leasing Company
Limited |
|
10,000,000 |
10,000,000 |
-- |
|
|
--------------------- |
--------------------- |
--------------------- |
--------------------- |
|
|
29,254,034 |
38,292,520 |
30,483,026 |
|
|
| Provision
for Diminution in Value of Investments |
|
| Opening Balance |
|
( 12,071,820) |
-- |
|
| Reversal/(Provisioning)
during the year |
|
3,033,334 |
( 12,071,820) |
|
|
--------------------- |
--------------------- |
|
|
(9,038,486) |
(12,071,820) |
|
|
--------------------- |
--------------------- |
|
|
29,254,034 |
18,411,206 |
|
| Unquoted |
|
| Image Graphics Solution (Pvt)
Ltd. |
|
60,000 |
600,000 |
600,000 |
|
| Chief Executive- Mr. Tariq
Mian |
|
--------------------- |
--------------------- |
|
|
29,854,034 |
19,011,206 |
|
|
============ |
============ |
|
|
|
|
| Market
value of quoted shares is Rs. 29,254,034/- (1998 Rs. 18,411,206/-) and break
up value of unquoted |
|
| shares is Rs. 10/- (1998 Rs.
10/- each). |
|
|
| The
amount of TFCs represents redeemed value till year end. These TFCs are
redeemed semi-annually, and |
|
| earn
expected profit ranging from Rs. 0.50 to Rs. 0.521 per Rs 1,000/- per day. |
|
|
| 17.2
Investment in Special US Dollar Bonds of US$ 2,190,300 has a maturity period
of 3 and 7 years. The |
|
| interest
rates are 2% and 4% over Libor respectively. |
|
|
| 17.3
Short term placement and deposits of funds to financial institutions are made
in the normal course of busi- |
|
| ness
at profit rates ranging from Rs. 0.4958 to 0.6849 per Rs. 1,000/- per day. |
|
|
| 18.
SHORT TERM MORABAHA FINANCES - SECURED |
|
| These
represent funds provided for periods ranging from 3 months to one year under
morabaha |
|
| arrangement
on mark-up/profit basis. These are secured by hypothecation of all present
and future goods, |
|
| merchandise,
work-in-progress, finished and unfinished goods. The mark-up/profit rate
ranges from Rs. |
|
| 0.36 to Rs. 0.575 per Rs.
1,000/- per day. |
|
|
| 19.
ADVANCES, DEPOSITS AND PREPAYMENTS |
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
| Current
Portion of Long Term Loan-Staff |
|
211,798 |
201,488 |
|
| Advance Income Tax |
|
3,945,414 |
4,457,972 |
|
| Advance for Purchase of
Shares |
|
573,750 |
500,000 |
|
| Deposits |
|
41,000 |
41,000 |
|
| Prepayments |
|
827,480 |
1,129,117 |
|
| Others |
|
562,937 |
328,000 |
|
|
--------------------- |
--------------------- |
|
|
6,162,379 |
6,657,577 |
|
|
============ |
============ |
|
| 20. OTHER RECEIVABLES |
|
| Considered Good |
|
|
| Receivable Against Sale of
Securities |
|
19,180,330 |
-- |
|
| Accrued Profit/Return |
|
5,609,068 |
1,954,692 |
|
| Dividend |
|
49,436 |
-- |
|
| Income Tax Refundable |
|
899,333 |
-- |
|
| Others |
|
1,511,653 |
45,186 |
|
|
--------------------- |
--------------------- |
|
|
27,249,820 |
1,999,878 |
|
|
============ |
============ |
|
| 21. CASH AND BANK BALANCES |
|
| Cash in Hand |
|
| Local Currency |
|
32,934 |
20,038 |
|
| Foreign Currency |
|
134,649 |
-- |
|
| Cash in Transit (21. l) |
|
107,027,788 |
-- |
|
| Cash with Banks |
|
| In Deposit Accounts (21.2) |
|
3,841,179 |
2,365,065 |
|
|
--------------------- |
--------------------- |
|
|
111,036,550 |
2,385,103 |
|
|
============ |
============ |
|
|
|
|
| 21.1
It represents second tranche of ADB loan amounting to US$ 2,083,671.52 (US
Dollar Two Million |
|
| Eighty Three Thousand Six Hundred Seventy
One Cents Fifty Two Only) credited to our banker for |
|
| onward surrender to SBP. |
|
|
| 21.2
It includes Rs. 250,000/- (1998 - Rs. 150,000) deposited with State Bank of
Pakistan as required |
|
| under Prudential Regulations for
Non-Banking Financial Institutions. |
|
|
| 22.
RETURN ON DEPOSITS AND INVESTMENTS |
|
|
| Profit
on PLS Account / Bank Deposit (Net of Zakat) |
|
62,969 |
116,299 |
|
| Return on Short Term
Investments |
|
8,405,723 |
7,283,809 |
|
| Dividend |
|
277,404 |
150,148 |
|
|
--------------------- |
--------------------- |
|
|
8,746,096 |
7,550,256 |
|
|
============ |
============ |
|
|
|
| 23.
ADMINISTRATION AND OPERATING EXPENSES |
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
| Salaries and Benefits |
|
8,702,448 |
9,207,972 |
|
| Directors' Meeting Fees |
|
7,000 |
7,500 |
|
| Rent, Rates and Taxes |
|
512,202 |
250,934 |
|
| Insurance |
|
915,335 |
434,614 |
|
| Legal, Professional and
Consultancy |
|
1,745,612 |
928,223 |
|
| Travelling and Conveyance |
|
1,008,116 |
1,437,245 |
|
| Postage and Telephone |
|
967,426 |
1,571,282 |
|
| Utilities |
|
278,301 |
271,540 |
|
| Printing and Stationery |
|
422,668 |
508,373 |
|
| Vehicles Running and
Maintenance |
|
836,597 |
720,353 |
|
| Computerization |
|
130,460 |
206,874 |
|
| Entertainment |
|
472,266 |
636,322 |
|
| Advertisement |
|
141,604 |
116,850 |
|
| Repairs and Maintenance |
|
332,790 |
598,179 |
|
| Auditors' Remuneration (23.1) |
|
174,900 |
95,000 |
|
| Share Department |
|
342,180 |
505,788 |
|
| Credit Rating |
|
100,000 |
334,679 |
|
| Depreciation |
|
5,505,186 |
2,929,938 |
|
| Fees and Subscription |
|
446,180 |
1,409,773 |
|
| Commission and Brokerage |
|
383,537 |
-- |
|
| Donation (23.2) |
|
95,500 |
59,500 |
|
| Others |
|
45,019 |
132,724 |
|
|
--------------------- |
--------------------- |
|
|
23,565,327 |
22,363,663 |
|
|
============ |
============ |
|
| 23.1 Auditors' Remuneration |
|
| Statutory Audit Fee |
|
85,000 |
65,000 |
|
| Special Audit Fee |
|
20,000 |
-- |
|
| Tax and Other Consultancy |
|
55,000 |
30,000 |
|
| Out of Pocket |
|
14,900 |
-- |
|
|
--------------------- |
--------------------- |
|
|
174,900 |
95,000 |
|
|
============ |
============ |
|
| 23.2
None of the directors or their spouse had any interest in the donees fund. |
|
|
|
|
1998 |
1999 |
|
|
Rupees |
Rupees |
|
| 24. FINANCIAL CHARGES |
|
|
| Mark-up/Return on |
|
| Redeemable Capital |
|
12,123,723 |
19,923,566 |
|
| Long Term Loans |
|
13,352,747 |
6,080,612 |
|
| Long Term Certificates of
Investment |
|
931,523 |
7,054,392 |
|
| Short Term Borrowings |
|
56,664,222 |
28,350,559 |
|
| Short Term Certificates of
Investment |
|
15,588,319 |
5,782,940 |
|
| Financial Charges on Lease
Liability |
|
62,754 |
84,812 |
|
| Forward Cover Fee |
|
886,231 |
-- |
|
| Exchange Gain |
|
18,883 |
-- |
|
| Documentation, Project
Examination, |
|
|
|
| Commission,
Brokerage and Bank Charges |
|
255,493 |
1,572,760 |
|
|
--------------------- |
--------------------- |
|
|
99,883,895 |
68,849,641 |
|
|
============ |
============ |
|
| 25. TAXATION |
|
|
|
| The
company has provided for deferred taxation in compliance with circular No. 16
of Securities and |
|
| Exchange
Commission of Pakistan to ensure that the liability arising on June 30, 2003
has been fully |
|
| provided for upto that year. |
|
|
| The
deferred taxation, arising out of timing difference between accounting and
income tax revenue or |
|
| charges
computed under the liability method, is estimated at Rs. 43.69 million (1998
Rs. 39.48 million). |
|
| Part
provision of Rs. 29 million has been provided for as of these accounts. The
liability for deferred tax is |
|
| not
likely to reverse in the foreseeable future. |
|
|
| Assessment
for all income years upto June 30, 1998 (Assessment year 1998-99) has been
finalized. |
|
|
| 26.
REMUNERATION TO CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES |
|
|
|
1999 |
|
1998 |
|
|
Chief |
|
Chief |
|
|
|
Executive |
Director |
Executives |
Executive |
Director |
Executives |
|
|
| Managerial Remuneration |
806,452 |
403,226 |
2,634,876 |
838,710 |
419,355 |
2,727,138 |
|
| Housing and Utilities |
443,548 |
246,774 |
1,449,182 |
461,290 |
230,645 |
1,499,920 |
|
| Gratuity |
42,422 |
21,211 |
125,080 |
258,064 |
112,896 |
357,012 |
|
|
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
|
| Rupees |
1,292,422 |
671,211 |
4,209,138 |
1,558,064 |
762,896 |
4,584,070 |
|
|
============ |
============ |
============ |
============ |
============ |
============ |
|
| Number of persons |
1 |
1 |
10 |
1 |
1 |
6 |
|
|
|
| 26.1
The Chief Executive, Directors and Executives are also provided with free use
of company owned |
|
| cars, medical insurance cover, provident
fund contribution and travelling allowance. The monetary |
|
| value of these perquisites are Rs.
1,652,942/- (1998 Rs. 1,042,619/-) approximately. |
|
|
| 26.2
Fees of Rs. 7,000/- were paid to three non-executive directors for attending
Board Meetings. |
|
|
| 27. EARNING PER SHARE |
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
| Profit Before Taxation |
|
35,291,304 |
28,058,669 |
|
| Profit After Taxation |
|
19,938,333 |
10,168,669 |
|
| Average Number of Ordinary
Shares |
|
25,000,000 |
25,000,000 |
|
| Earning per Share - Basic and
Diluted |
|
| Pre-Tax |
|
1.41 |
1.12 |
|
| Post-Tax |
|
0.80 |
0.41 |
|
|
| 28.
CREDIT RISK AND CONCENTRATION OF SIGNIFICANT CREDIT RISK |
|
|
| Credit
Risk is the risk faced when one party to a financial instrument fails to
discharge its obligation and |
|
| causes
the other party to incur a financial loss. |
|
|
| The
Company follows two sets of guidelines: an operating policy duly approved by
the Board of Directors |
|
| and
the Prudential Regulations for NBFIs. The operating policy defines the extent
of exposure with |
|
| reference
to a particular sector or group of lessees. The leases are classified on the
basis of Prudential |
|
| Regulations guidelines. |
|
|
| The
Company believes in maintaining a balance between profitability and portfolio
riskiness. |
|
| Diversification
of lease portfolio is the focal point of DLC's exposure policy. Extra care is
taken to ensure |
|
| that
per party and per sector exposures remain within limits prescribed by the
operating policy and |
|
| Prudential Regulations. |
|
|
| Details
of the industry / sector analysis of lease portfolio is given below: |
|
| Segment by class of business |
|
Rupees |
% |
|
| Textile Composite |
|
167,736,225 |
16.18 |
|
| Auto and Engineering |
|
135,419,591 |
13.07 |
|
| Oil and Gas |
|
127,960,617 |
12.35 |
|
| Cement |
|
116,170,968 |
11.21 |
|
| Textile Finishing |
|
88,677,448 |
8.56 |
|
| Chemicals and Pharmaceuticals |
|
84,908,678 |
8.19 |
|
| Food and Beverages |
|
55,724,081 |
5.38 |
|
| Power Generation |
|
52,632,647 |
5.08 |
|
| Electrical Goods |
|
25,970,189 |
2.51 |
|
| Sugar & Allied |
|
19,493,941 |
1.88 |
|
| Health Care |
|
18,105,403 |
1.75 |
|
| Financial |
|
8,285,412 |
0.80 |
|
| Miscellaneous |
|
135,294,682 |
13.04 |
|
|
--------------------- |
--------------------- |
|
|
1,036,379,882 |
100 |
|
|
============ |
============ |
|
|
|
| 29.
FAIR VALUE OF FINANCIAL INSTRUMENTS |
|
|
| The
carrying value of all the financial instruments reflected in the financial
statements approximates to |
|
| their fair values. |
|
|
| 30. INTEREST RATE RISK MANAGEMENT |
|
|
| Interest
Rate Risk arises from the possibility when changes in interest rates affect
the value of financial |
|
| instruments.
The Company is exposed to Interest Rate Risk as a result of mismatches or
gaps in the |
|
| amounts
of assets and liabilities that mature or reprice in a given period. The
Company manages this risk |
|
| by
matching the repricing of assets and liabilities. |
|
|
| The
Company's exposure to Interest Rate Risk on its financial assets and
liabilities are summarized as fol- |
|
| lows: |
|
|
|
|
Not exposed |
|
|
|
Less than |
One Month |
Over |
to interest |
|
|
|
one month |
to one year |
One Year |
rate risk |
Total |
|
|
| ASSETS |
|
| Tangible Fixed Assets |
-- |
-- |
-- |
23,798,900 |
23,798,900 |
|
| Net Investment in Lease
Finance |
-- |
402,976,323 |
510,937,250 |
122,466,309 |
1,036,379,882 |
|
| Long Term Loans |
-- |
-- |
-- |
1,719,112 |
1,719,112 |
|
| Long Term Deposit |
-- |
-- |
-- |
300,000 |
300,000 |
|
| Long Term Investments |
-- |
-- |
45,793,350 |
-- |
45,793,350 |
|
| Short Term Investments |
20,000,000 |
169,799,680 |
-- |
-- |
189,799,680 |
|
| Short Term Morabaha Finances |
-- |
103,051,816 |
-- |
-- |
103,051,816 |
|
| Advance against Lease
Commitments |
-- |
-- |
9,700,000 |
-- |
9,700,000 |
|
| Advances, Deposits and
Prepayments |
-- |
-- |
-- |
6,162,379 |
6,162,379 |
|
| Other Receivables |
-- |
-- |
-- |
27,249,820 |
27,249.82 |
|
| Cash and Bank Balances |
110,753,616 |
-- |
-- |
282,934 |
111,036,550 |
|
|
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
|
| Rupees |
130,753,616 |
675,827,819 |
566,430,600 |
181,979,454 |
1,554,991,489 |
|
|
============ |
============ |
============ |
============ |
============ |
|
|
|
| CAPITAL AND LIABILITIES |
|
| Capital and Reserves |
-- |
-- |
-- |
300,624,780 |
300,624,780 |
|
| Provision for Lease Losses |
-- |
-- |
-- |
34,000,000 |
34,000,000 |
|
| Deferred Liabilities |
-- |
-- |
-- |
29,858,033 |
29,858,033 |
|
| Redeemable Capital |
-- |
21,665,065 |
14,274,989 |
-- |
35,940,054 |
|
| Long Term Loans |
12,742,450 |
50,486,087 |
405,057,869 |
-- |
468,286,406 |
|
| Liabilities Against Assets
Subject to Finance Lease |
11,139 |
121,106 |
-- |
-- |
132,245 |
|
| Certificates of Investment |
30,000,000 |
20,500,000 |
11,400,000 |
-- |
61,900,000 |
|
| Lease Deposits |
-- |
-- |
-- |
122,466,309 |
122,466,309 |
|
| Short Term Borrowings |
82,000,000 |
351,548,078 |
-- |
-- |
433,548,078 |
|
| Accrued Expenses and Other
Liabilities |
229,160 |
38,906,424 |
-- |
-- |
39,135,584 |
|
| Taxation |
-- |
4,100,000 |
-- |
-- |
4,100,000 |
|
| Proposed Dividend |
-- |
25,000,000 |
-- |
-- |
25,000.00 |
|
|
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
|
| Rupees |
124,982,749 |
512,326,760 |
430,732,858 |
486,949,122 |
1,554,991,489 |
|
|
============ |
============ |
============ |
============ |
============ |
|
| On Balance Sheet Gap Rupees |
5,770,867 |
163,501,059 |
135,697,742 |
(304,969,668) |
-- |
|
|
--------------------- |
--------------------- |
--------------------- |
--------------------- |
--------------------- |
|
| Total Interest Rate
Sensitivity Gap Rs |
-- |
-- |
-- |
-- |
-- |
|
|
============ |
============ |
============ |
============ |
============ |
|
|
| 31. NUMBER OF EMPLOYEES |
|
| Total number of employees as at year end
are 22 (1998:19) |
|
|
| 32. GENERAL |
|
| 32.1
Figures have been rounded off to the nearest Rupee. |
|
|
| 32.2
Corresponding figures have been re-arranged wherever necessary for the
purpose of comparison. |
|
|
| Rafique Dawood |
|
Dr. Najeeb Samie |
|
| Chairman & Chief
Executive |
|
Director |
|
|
|
| STATEMENT & REPORT |
|
|
| Under Section 237 of the
Companies |
|
1999 |
1998 |
|
| Ordinance, 1984 |
|
Guardian |
|
|
|
Modaraba |
|
|
| STATEMENT
UNDER SUB-SECTION (1) (e) |
|
Management (Pvt) |
|
|
| (a)
Extent of the interest o£ Dawood Leasing Company |
|
Limited |
|
|
| Limited
(the Holding Company) in the equity o~ its |
|
| subsidiaries
at the end of the last financial year of |
|
| subsidiaries |
|
99.80% |
-- |
|
|
| (b)
The net aggregate amount of profit less losses of the |
|
Amount in Rupees |
|
| subsidiary
companies so far as these concern |
|
| members
of the Holding Company and have not |
|
| been
dealt with in the accounts of the Holding |
|
|
|
|
| Company
for the year ended June 30, 1999 are: |
|
| (i)
for the financial year of the subsidiaries |
|
(128,181 ) |
-- |
|
|
| (ii)
for the previous financial year of the subsidiary |
|
| since it became the Holding
Company's |
|
| subsidiary |
|
(4,657,853) |
-- |
|
|
| (c)
The net aggregate amount of profit less losses of the |
|
| subsidiary
companies so far as these concern |
|
| members
of the Holding Company and have been |
|
| dealt
with in the accounts o1' the Holding Company |
|
| for the year ended June 30,
1999 are: |
|
| (i)
for the financial year of the subsidiaries |
|
N/A |
-- |
|
|
|
|
| (ii)
for the previous financial year of the subsidiary |
|
| since it became the Holding
Company's |
|
|
|
| subsidiary |
|
N/A |
-- |
|
|
| STATEMENT
UNDER SUB-SECTION (I) (f) |
|
N/A |
N/A |
|
| STATEMENT
UNDER SUB-SECTION (I) (g) |
|
N/A |
N/A |
|
|
| Rafique Dawood |
|
Dr. Najeeb Samie |
|
| Chairman & Chief
Executive |
|
Director |
|
|
|
|
|
| PATTERN
OF SHARE HOLDING AS AT JUNE 30, 1999 |
|
|
|
| No. of |
|
Share Holding |
|
Shares |
|
| Shareholders |
From |
|
To |
Held |
|
|
| 22 |
1 |
-- |
100 |
2,200 |
|
| 2,096 |
101 |
-- |
500 |
1,041,700 |
|
| 169 |
501 |
-- |
1000 |
155,600 |
|
| 164 |
1001 |
-- |
5000 |
476,100 |
|
| 44 |
5001 |
-- |
10000 |
372,000 |
|
| 13 |
10001 |
-- |
15000 |
161,100 |
|
| 13 |
15001 |
-- |
20000 |
249,600 |
|
| 8 |
20001 |
-- |
25000 |
196,200 |
|
| 10 |
25001 |
-- |
30000 |
296,800 |
|
| 3 |
30001 |
-- |
35000 |
100,100 |
|
| 3 |
35001 |
-- |
40000 |
120,000 |
|
| 1 |
40001 |
-- |
45000 |
42,500 |
|
| 9 |
45001 |
-- |
50000 |
445,100 |
|
| 1 |
50001 |
-- |
55000 |
55,000 |
|
| 1 |
55001 |
-- |
60000 |
58,000 |
|
| 3 |
60001 |
-- |
65000 |
190,500 |
|
| 1 |
80001 |
-- |
85000 |
80,500 |
|
| 2 |
90001 |
-- |
95000 |
183,100 |
|
| 10 |
95001 |
-- |
100000 |
997,700 |
|
| 1 |
120001 |
-- |
125000 |
125,000 |
|
| 1 |
125001 |
-- |
130000 |
130,000 |
|
| 1 |
140001 |
-- |
145000 |
145,000 |
|
| 1 |
190001 |
-- |
195000 |
194,000 |
|
| 3 |
245001 |
-- |
250000 |
750,000 |
|
| 1 |
275001 |
-- |
280000 |
276,800 |
|
| 1 |
300001 |
-- |
305000 |
300,900 |
|
| 1 |
385001 |
-- |
390000 |
390,000 |
|
| 1 |
390001 |
-- |
395000 |
392,700 |
|
| 1 |
415001 |
-- |
420000 |
418,000 |
|
| 1 |
470001 |
-- |
475000 |
472,000 |
|
| 3 |
495001 |
-- |
500000 |
1,500,000 |
|
| 1 |
540001 |
-- |
545000 |
542,800 |
|
| 1 |
950001 |
-- |
955000 |
950,100 |
|
| 2 |
995001 |
-- |
1000000 |
2,000,000 |
|
| 1 |
1095001 |
-- |
1100000 |
1,099,900 |
|
| 1 |
1170001 |
-- |
1175000 |
1,170,400 |
|
| 1 |
1345001 |
-- |
1350000 |
1,346,100 |
|
| 1 |
1505001 |
-- |
1510000 |
1,506,000 |
|
| 1 |
1850001 |
-- |
1855000 |
1,854,000 |
|
| 1 |
4210001 |
-- |
4215000 |
4,212,500 |
|
| ------------------- |
------------------- |
------------------- |
------------------- |
------------------- |
|
| 2,599 |
|
25,000,000 |
|
| The
slabs representing NIL holding have been omitted. |
|
|
| Categories of Shareholders |
|
|
Number of |
Shares Held |
Percentage |
|
| Particulars |
Shareholders |
|
|
|
| Financial Institutions |
11 |
3,873,400 |
15.49 |
|
| Foreign Investors |
1 |
1,346,100 |
5.38 |
|
| Individuals |
2,536 |
7,579,000 |
30.32 |
|
| Insurance Companies |
4 |
4,393,500 |
17.57 |
|
| Investment Companies |
14 |
5,436,900 |
21.76 |
|
| Joint-Stock Companies |
27 |
1827900 |
7.31 |
|
| Modaraba Companies |
6 |
543200 |
2.17 |
|
|
------------------- |
------------------- |
------------------- |
|
| Total |
2,599 |
25,000,000 |
100.00 |
|
|
|
|
GUARDIAN MODARABA |
|
|
MANAGEMENT (PVT) LIMITED |
|
|
SUBSIDIARY COMPANY |
|
|
| CORPORATE
INFORMATION |
|
|
|
| Board of Directors |
Mr. Rafique Dawood |
Chairman |
(Nominee of DLC) |
|
|
Mr. Ayaz Dawood |
Chief Executive |
(Nominee of DLC) |
|
|
Mr. Mehboob G. Rawjee |
|
(Nominee of DLC) |
|
|
Mr. Salman Rasheed |
|
(Nominee of DLC) |
|
|
Mr. Umair Khan |
|
(Nominee of SLIC) |
|
|
| Company Secretary |
Syed Jamal Macdi |
|
|
| Auditors |
M.A. Alam & Co. |
|
|
Chartered Accountants |
|
|
1/7-B, Mohammad Ali
Housing Society, |
|
|
Karachi-75350 |
|
|
| Bankers |
Bank Al-Habib Ltd. |
|
|
Gulf Commercial Bank Ltd. |
|
|
| Registered Office |
|
| and Head Office |
5-B, Lakson Square
Building # 1, |
|
|
Sarwar Shaheed Road,
Karachi-74200 |
|
|
Tel: (021) 568 7778 |
|
|
Fax: (021) 568 5830 |
|
|
E-Mail: dlc
@khi.compol.com |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of Guardian Modaraba Management
(Private) Limited as at June |
|
| 30,
1999 and the related Profit & Loss Account 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 purpose 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 & Loss Account together with the Notes
thereon have been |
|
| drawn
up in conformity with the Companies Ordinance, 1984 and are in agreement with
the |
|
| books
of account and are further in accordance with accounting policies
consistently applied; |
|
|
| ii)
the expenditure incurred during the year was for the purpose of 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 & Loss Account, 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 Income |
|
| for the year then ended; and |
|
|
|
|
| d)
In our opinion no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
|
| Dated: November 16, 1999 |
M.A. Alam & Co. |
|
| Karachi. |
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1999 |
|
|
|
|
1999 |
1998 |
|
|
Note |
Rupees |
Rupees |
|
| SHARE CAPITAL |
|
| Authorized |
|
| 2,500,000 Ordinary Shares of |
|
| Rs. 10 each |
|
25,000,000 |
25,000,000 |
|
|
=========== |
=========== |
|
| Issued, Subscribed &
Paid-up |
|
| 2,500,000 Ordinary Shares of |
|
| Rs. 10 each Fully Paid in
Cash |
|
25,000,000 |
25,000,000 |
|
|
| Accumulated Loss |
|
(4,786,034) |
(6,914,943) |
|
|
20,213,966 |
18,085,057 |
|
| DEFERRED LIABILITY |
|
| Provision for Gratuity |
|
-- |
153,750 |
|
|
| CURRENT LIABILITIES |
|
| Loan from Director |
|
3 |
-- |
7,18;8,515 |
|
| Accrued & Other
Liabilities |
|
4 |
188,843 |
634000 |
|
|
------------------- |
------------------- |
|
|
188,843 |
7,822,515 |
|
|
------------------- |
------------------- |
|
|
20,402,809 |
26,061,322 |
|
|
=========== |
=========== |
|
| TANGIBLE FIXED ASSETS - At
Cost |
|
| Less Accumulated Depreciation |
|
5 |
-- |
1,734,911 |
|
|
| INVESTMENTS - At Cost |
|
20,000,000 |
20,000,000 |
|
| DEFERRED COST |
|
7 |
-- |
7,683 |
|
|
|
|
|
|
|
| CURRENT ASSETS |
|
| Short Term Investments in
.Securities |
|
8 |
97,244 |
1,246,440 |
|
| Advances,
Deposits & Other Receivables |
9 |
135,563 |
2,872,643 |
|
| Cash & Bank Balances |
|
10 |
170,002 |
199,645 |
|
|
------------------- |
------------------- |
|
|
402,809 |
4,318,728 |
|
|
------------------- |
------------------- |
|
|
· |
|
20,402,809 |
26,061,322 |
|
|
=========== |
=========== |
|
| The
annexed notes form an integral part of these financial statements. |
|
|
| Rafique Dawood |
Ayaz Dawood |
|
| Chairman |
Chief Executive |
|
|
|
| PROFIT & Loss ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 1999 |
|
|
|
|
1999 |
1998 |
|
|
Note |
Rupees |
Rupees |
|
|
| Income |
|
| Dividend Income |
|
21,996 |
25,946 |
|
| Capital
(Loss)/Gain on Marketable Securities |
|
(1,021,146) |
26,271 |
|
| Profit on PLS Deposit Account |
|
6,277 |
-- |
|
| Gain on Disposal of Fixed
Assets |
|
3,915,049 |
-- |
|
| Other Income . |
|
618 |
561 |
|
|
------------------- |
------------------- |
|
|
2,922,794 |
57,828 |
|
|
| Expenditure |
|
| Administration &
Operating Expenses |
|
11 |
705,065 |
698,301 |
|
|
| Provision for Diminution in
Value |
|
| of Listed Securities |
|
8 |
88,820 |
134,037 |
|
|
------------------- |
------------------- |
|
|
793,885 |
832,338 |
|
|
------------------- |
------------------- |
|
| Net Income/(Loss) for the
Year |
|
2,128,909 |
(774,510) |
|
| Accumulated Loss Brought
Forward |
|
(6,914,943) |
(6,140,433) |
|
|
------------------- |
------------------- |
|
| Accumulated Loss Carried
Forward |
|
(4,786,034) |
(6,914,943) |
|
|
=========== |
=========== |
|
| The
annexed notes form an integral part of these financial statements. |
|
|
| Rafique Dawood |
Ayaz Dawood |
|
| Chairman |
Chief Executive |
|
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| FOR
THE YEAR ENDED JUNE 30, 1999 |
|
|
| A.
CASH FLOW FROM OPERATING ACTIVITIES |
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
| Profit After Taxation |
|
2,128,909 |
(774,510) |
|
| Adjustment
to Determine Net Cash Flows: |
|
| Depreciation |
|
-- |
119,779 |
|
| Deferred Cost |
|
7,683 |
15,364 |
|
| Loss/(Gain) on Sale of
Investments |
|
1,021,146 |
(26,271 ) |
|
| Gain/(Loss) on Sale of Fixed
Assets |
|
(3,915,049) |
-- |
|
| Provision for Gratuity |
|
-- |
73,750 |
|
| Provision
for Diminution in Value of Marketable Securities |
88,820 |
134,037 |
|
|
-------------------- |
-------------------- |
|
|
(2,797,400) |
316,659 |
|
|
-------------------- |
-------------------- |
|
| Operating
Profit Before Working Capital Changes |
|
(668,491) |
(457,851) |
|
| Working Capital Changes |
|
| Advances, Deposits and
Prepayments |
|
2,737,080 |
52,349 |
|
| Accrued and Other Liabilities |
|
(7,633,672) |
554,212 |
|
|
-------------------- |
-------------------- |
|
|
(4,896,592) |
606,561 |
|
|
-------------------- |
-------------------- |
|
|
(5,565,083) |
148,710 |
|
| Gratuity Paid |
|
(153,750) |
-- |
|
|
-------------------- |
-------------------- |
|
| Net Cash From Operating
Activities |
|
(5,718,833) |
148,710 |
|
|
|
|
|
|
| b.
CASH FLOW USED IN INVESTING ACTIVITIES |
|
| Proceeds from Sale of Fixed
Assets |
|
5,649,960 |
-- |
|
| Sale Proceeds of Marketable
Securities |
|
39,230 |
26,271 |
|
|
-------------------- |
-------------------- |
|
|
5,689,190 |
26,271 |
|
|
-------------------- |
-------------------- |
|
| Net
Increase / (Decrease) in Cash and Cash Equivalent |
|
(29,643) |
174,981 |
|
| Cash
and Cash Equivalent at the Beginning of the Year |
|
199,645 |
24,664 |
|
|
-------------------- |
-------------------- |
|
| Cash
and Cash Equivalent at the End of the Year |
|
170,002 |
199,645 |
|
|
|
=========== |
=========== |
|
|
|
| Rafique Dawood |
Ayaz Dawood |
|
| Chairman |
Chief Executive |
|
|
|
| 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 Private Limited Company on
September 2~, 1991. The |
|
| principal
activity of the company is to promote, float and manage modarabas. On March
03, 1999 the |
|
| management
control of the company was acquired by Dawood Leasing Co. Ltd. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
| 2.1 Accounting Convention |
|
| These
accounts have been prepared under the "historical cost convention". |
|
|
| 2.2
Fixed Operating Assets and Depreciation |
|
| These
are stated at cost less accumulated depreciation. |
|
| Until
last year depreciation on fixed assets was charged to income applying the
reducing balance |
|
| method,
but from this year the management has decided to write off the cost of fixed
assets applying |
|
| the
straight line method, over their estimated useful life. As all the fixed
assets of the company have |
|
| been
disposed of during the year, therefore, there is no effect on the income for
the year for this change |
|
| in depreciation method. |
|
|
| Full
year's depreciation is charged on assets acquired during the year, while no
depreciation is charged |
|
| on assets disposed of during
the year. |
|
|
| Normal
repairs & maintenance are charged to income as and when incurred. |
|
|
| Gain
& losses on disposal of fixed assets are included in the income
currently. |
|
|
| 2.3 Investment |
|
| Short
Term Investments are valued at lower of cost and market value determined on
an aggregate |
|
| portfolio basis. |
|
|
| 2.4 Revenue Recognition |
|
| Dividend
'Income is recognized at the time of closure of the shares transfer book of
the company |
|
| declaring
the dividend. All other income are recorded on accrual basis. |
|
|
| 3.
LOAN FROM DIRECTOR- Unsecured |
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
|
| Mr.
Mahmood Nawaz (Ex-Chairman & CEO) |
|
-- |
7,188,515 |
|
|
============ |
============ |
|
| 4. ACCRUED & OTHER
LIABILITIES |
|
| Auditors' Remuneration |
|
10,000 |
10,000 |
|
| Auditors' out of Pocket
Expenses |
|
1,000 |
1,000 |
|
| Other Liabilities |
|
126,293 |
123,000 |
|
| Legal & Professional
Charges |
|
51,550 |
-- |
|
| Others |
|
-- |
500,000 |
|
|
----------------- |
----------------- |
|
|
188,843 |
634,000 |
|
|
============ |
============ |
|
|
|
|
| 5. TANGIBLE FIXED ASSETS |
|
|
ACCUMULATED |
|
|
COST |
|
Rate |
|
DEPRECIATION |
|
W.D.V. |
|
| Particulars |
As at |
(Deletion) |
As at |
% |
As at |
Adjustment |
As at |
As at |
|
|
July 01, |
During the |
June 30, |
|
July 01, |
For the |
June 30, |
June 30, |
|
|
1998 |
Year |
1999 |
|
1998 |
Year |
1999 |
1999 |
|
|
| Office
Premises |
2,003,000 |
(2,003,000) |
-- |
5 |
412,330 |
(412,330) |
-- |
-- |
|
| Vehicle |
387,000 |
(387,000) |
-- |
20 |
242,759 |
(242,759) |
-- |
-- |
|
|
----------------- |
----------------- |
----------------- |
----------------- |
----------------- |
----------------- |
----------------- |
----------------- |
|
| Rupees |
2,390,000 |
(2,390,000) |
-- |
|
655,089 |
(655,089) |
-- |
-- |
|
|
============ |
============ |
============ |
============ |
============ |
============ |
============ |
============ |
|
| 1998
Rupees |
2,390,000 |
-- |
2,390,000 |
|
535,310 |
119,779 |
655,089 |
1,734,911 |
|
|
============ |
============ |
============ |
============ |
============ |
============ |
============ |
============ |
|
|
|
|
| 5.1 DISPOSAL OF FIXED ASSETS |
|
|
| Particulars |
Mode of |
Sold to |
Cost |
Accumulated |
Book |
Sale |
|
|
disposal |
|
depreciation |
Value |
Proceeds |
|
|
| Office Premises |
Negotiation |
Mr. Mahmood Nawaz |
2,003,000 |
412,330 |
1,590,670 |
5,505,719 |
|
|
Ex-Chairman & |
|
|
Chief Executive |
|
|
of the Management |
|
|
Company |
|
|
| Vehicle |
Negotiation |
Mr. Ehteshamuddin |
387,000 |
242,759 |
144,241 |
144,241 |
|
|
Ex-Employee |
|
|
of the Modaraba |
|
|
----------------- |
----------------- |
----------------- |
----------------- |
|
|
Rupees |
2,390,000 |
655,089 |
1,734,91 I |
5,649,960 |
|
|
|
============ |
============ |
============ |
============ |
|
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
| 6. INVESTMENTS-At Cost |
|
|
|
| Investment
in Guardian Leasing Modaraba |
|
| Percentage of holding 20%,
(1998: 20%) |
|
| 2,000,000
Certificates of Rs. 10/= each, (1998: Rs. 2 (m)) |
|
| Net Assets Value as at June
30, 1999: |
|
| Rs.
14.07 million, (1998: Rs. 13.99 million) |
|
| Market
Value Rs. 2.5 million (1998: Rs. 2(m)) |
|
20,000,000 |
20,000,000 |
|
|
============ |
============ |
|
| 7. DEFERRED COST |
|
|
| Preliminary Expenses |
|
7,683 |
23,047 |
|
| Amortized During the Year |
|
(7,683) |
(15,364) |
|
|
----------------- |
----------------- |
|
|
-- |
7,683 |
|
|
============ |
============ |
|
| 8.
INVESTMENTS IN LISTED SECURITIES |
|
|
| No. of
shares/certificates |
|
Cost |
|
| 1998 |
1999 |
|
1999 |
1998 |
|
|
| 6,700 |
-- |
Apollo Textile Mills
Limited |
-- |
1,039 |
|
| 100 |
100 |
Din Textile Mills Limited |
976 |
976 |
|
| 5,000 |
5,000 |
Crescent Board Limited |
35,829 |
35,829 |
|
| 500 |
500 |
Fauji Fertilizer Company
Limited |
39,700 |
39,700 |
|
| 6,547 |
47 |
First Habib Bank Modaraba |
264 |
36,757 |
|
| 1,000 |
1,000 |
First Leasing Corporation
Limited |
33,660 |
33,660 |
|
| 25,000 |
-- |
Modaraba Al-Mali |
-- |
387,500 |
|
| 161,500 |
-- |
Pak Chrome Mines Limited |
-- |
1,695,750 |
|
| 4,200 |
4,200 |
Salfi Textile Mills
Limited |
651 |
651 |
|
| 5,000 |
-- |
Tri Star Shipping Lines
Limited |
-- |
99,490 |
|
| 3,000 |
3,000 |
Wah Noble Chemicals
Limited |
74,984 |
74,984 |
|
|
----------------- |
----------------- |
|
|
186,064 |
2,406,336 |
|
|
Less: Provision for
Diminution in the |
|
|
Value of Securities |
88,820 |
1,159,896 |
|
|
----------------- |
----------------- |
|
|
97,244 |
1,246,440 |
|
|
============ |
============ |
|
|
| 8.1
The aggregate market value of these securities as at June 30, 1999 was Rs.
97,244 (1998: Rs. 1,246,440). |
|
| 8.2
All shares/certificates represent fully paid shares/certificates of Rs. 10
each, unless otherwise stated. |
|
|
|
1999 |
1998 |
|
| 9. ADVANCES, DEPOSITS &
OTHER |
|
Rupees |
Rupees |
|
| RECEIVABLES |
|
|
| 9.1 Advances |
|
|
| Withholding Income Tax |
|
84,982 |
84,436 |
|
| Advance to Staff |
|
2,374 |
117,081 |
|
| Mr.
Hamid Hussain Khawar (Ex-Chief Executive) |
|
-- |
2,653,446 |
|
|
----------------- |
----------------- |
|
|
87,356 |
2,854,963 |
|
|
|
|
| 9.2 Deposits |
|
| Deposit with Petrol Pump |
|
-- |
9,000 |
|
| Telephone Deposit |
|
-- |
2,250 |
|
|
----------------- |
----------------- |
|
|
-- |
11,250 |
|
|
| 9.3 Other Receivables |
|
|
| Due from |
|
| -- Auvitronics Limited |
|
-- |
4,416 |
|
| -- Guardian Leasing Modaraba |
|
6,156 |
14 |
|
| -- Fauji Fertilizer Company
Ltd. |
|
2,000 |
2,000 |
|
| -- I Puri Securities (Pvt.) Ltd. |
|
39,230 |
-- |
|
| Profit Receivable from PLS
Account |
|
821 |
-- |
|
|
----------------- |
----------------- |
|
|
48,207 |
6,430 |
|
|
----------------- |
----------------- |
|
|
135,563 |
2,872,643 |
|
|
============ |
============ |
|
| 10. CASH & BANK BALANCES |
|
|
|
| Cash in Hand |
|
122 |
310 |
|
| With Banks in Current Account |
|
| Gulf Commercial Bank Limited |
|
4,650 |
4,650 |
|
| Muslim
Commercial Bank Limited (Sidco Centre Branch) |
|
-- |
444 |
|
| Muslim
Commercial Bank Limited (Premier Branch) |
|
-- |
194,241 |
|
|
----------------- |
----------------- |
|
|
4,650 |
199,335 |
|
|
| With Bank in PLS Account |
|
| Bank Al-Habib Limited |
|
165,230 |
-- |
|
|
----------------- |
----------------- |
|
|
170,002 |
199,645 |
|
|
|
============ |
============ |
|
|
| 11.
ADMINISTRATION & OPERATING EXPENSES |
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
|
|
| Salaries, Allowances &
Benefits |
|
516,900 |
491,630 |
|
| Legal & Professional
Charges |
|
66,839 |
27,410 |
|
| Audit Fee |
|
I 0,000 |
! 0,000 |
|
| Amortization of Preliminary
Expenses |
|
7,683 |
15,364 |
|
| Advances & Deposits
written off |
|
99,933 |
-- |
|
| Bank Charges |
|
335 |
175 |
|
| Zakat |
|
1,215 |
1,219 |
|
| Fees & Subscription |
|
1,160 |
-- |
|
| Rates & Taxes |
|
-- |
28,806 |
|
| Repairs
& Maintenance - Motor Vehicles |
|
-- |
2,168 |
|
| Depreciation |
|
-- |
119,779 |
|
| Miscellaneous |
|
1,000 |
1,750 |
|
|
----------------- |
----------------- |
|
|
705,065 |
698,301 |
|
|
============ |
============ |
|
| 12. GENERAL |
|
|
| 12.1
Prior period figures have been rearranged & reclassified for the purpose
of comparison. |
|
|
| 12.2
Figures have been rounded off to the nearest Rupee. |
|
|
| Rafique Dawood |
Ayaz Dawood |
|
| Chairman |
Chief Executive |
|
|
|
|
|
CONSOLIDATED ACCOUNTS |
|
|
OF |
|
|
DAWOOD LEASING COMPANY LIMITED |
|
|
& |
|
|
ITS |
|
|
SUBSIDIARY |
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have examined the annexed consolidated financial statements comprising
Consolidated Balance Sheet of |
|
| Dawood
Leasing Company Limited and its subsidiary company as at June 30, 1999 and
the related consolidated |
|
| Profit
and Loss Account and Consolidated Cash Flow Statement together with the notes
forming part thereof, |
|
| for
the year ended June 30, 1999. We have also expressed separate opinions on the
financial statements of |
|
| Dawood
Leasing Company Limited. Audit of its subsidiary company Guardian Modaraba
Management |
|
| (Private)
Limited was done by other firm of Chartered Accountants, whose report has
been furnished to us and |
|
| our
opinion in so far as it relates to the amounts included for such company, is
based solely on the report of |
|
| other
auditors. These financial statements are the responsibility of the Holding
Company's management. Our |
|
| responsibility
is to express an opinion on these financial statements based on our
examination. |
|
|
| Our
examination was made in accordance with International Standards on Auditing
and accordingly included |
|
| such
tests of accounting records and such other auditing procedures as we
considered necessary in the |
|
| circumstances. |
|
|
| In
our opinion the consolidated financial statements examined by us present
fairly the financial position of |
|
| Dawood
Leasing Company Limited and its subsidiary company as at June 30, 1999 and
the results of their |
|
| operations for the year then
ended. |
|
|
| Dated: November 17, 1999 |
M. Yousuf Adil Saleem
& Co. |
|
| Karachi. |
Chartered Accountants |
|
|
|
| CONSOLIDATED
BALANCE SHEET AS AT JUNE 30, 1999 |
|
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
|
