| Natover Lease & Refinance Limited |
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| Annual
Report 1999 |
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| CONTENTS |
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| Company
Information |
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| Notice
of Meeting |
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| Directors'
Report |
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| Pattern
of Shareholding |
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| Auditors'
Report |
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| Balance Sheet |
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| Profit
and Loss Account |
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| Statement
of Changes in Financial Position |
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| Notes
to the Accounts |
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| COMPANY
INFORMATION |
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| BOARD
OF DIRECTORS |
Syed Zahid Hasan |
Chairman |
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Mr. Nadeem H. Shaikh |
Chief Executive |
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|
Mr. Khalid Latif |
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|
Syed Dilawar Abbas |
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|
Brig. (Retd.) M. Zareef
Malik |
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Mr. S. A. Nizami |
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|
Mr. Hasan Ali Fadoo |
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| COMPANY
SECRETARY |
Syed Kabiruddin |
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| AUDITORS |
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M/s. Hyder Bhimji &
Co. |
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Chartered Accountants |
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| LEGAL
ADVISOR |
M/s. Continental Law
Consultant |
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| REGISTRARS
AND SHARE |
M/s. Uni Corporate &
Financial Services |
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| TRANSFER
OFFICE |
Westland Trade Centre, |
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Opp: Flyover,
Shaheed-e-Millat Road, |
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Karachi. |
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Tel: 4313205-6 |
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Fax: 4313207 |
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| REGISTERED
OFFICE |
140, 17th East Street, |
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Off Main Korangi Road, |
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Phase I, D.H.A. Karachi. |
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Tel: 5893881-3 |
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Fax: 5884082 |
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| ISLAMABAD
OFFICE |
4 & 5 Tahir Plaza, |
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Block No. 37, Blue Area, |
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Islamabad. |
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Tel: 276467-8 |
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Fax: 276469 |
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| NOTICE
OF ANNUAL GENERAL MEETING |
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| NOTICE
is hereby given that the 14th Annual General Meeting of NATOVER LEASE &
REFINANCE LIMITED |
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| (Formerly
Natover Motor Lease Limited) will be held on Friday, December 24, 1999 at
8:00 a.m. at the Regis- |
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| tered
Office of the Company at 140, 17th East Street, Off Main Korangi Road, Phase
I, Defence Housing |
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| Authority,
Karachi to transact the following business: |
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|
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| *
To confirm the minutes of the Annual General Meeting held on 24th December
1998. |
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|
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| *
To receive, consider and adopt the audited accounts of the Company for the
period ended June 30, |
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| 1999. |
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| *
To appoint Auditors for the year 1999-2000 and to fix their remuneration. The
present Auditors, M/s. |
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| Hyder
Bhimji & Company, Chartered Accountants, retire and, being eligible,
offer themselves for re- |
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| appointment. |
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| *
To transact any other business with the permission of the Chair. |
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By Order of the Board |
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| Karachi. |
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(SYED KABIRUDDIN) |
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| Dated:
2nd December 1999 |
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Company Secretary |
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| NOTES: |
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| 1.
The Share Transfer Books of the Company will be closed from 15th December
1999 to 21st December |
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| 1999
(both days inclusive). |
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| 2.
A member entitled to attend and vote at this Meeting may appoint another
member as his or her proxy |
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| to
attend and vote. Proxies in order to be effective must be received at the
Registered Office of the |
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| Company
not less than 48 hours before the time of holding the meeting. |
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| 3.
Shareholders are advised to lodge shares for transfer at the Registrar Office
M/s. Uni Corporate & |
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| Financial
Services, Westland Trade Centre, Opp. Fly over, Shaheed-e-Millat Road,
Karachi. |
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| 4.
Members are requested to notify any change in their address immediately. |
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| DIRECTORS'
REPORT |
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| On
behalf of the Board, the 14th Annual Report together with the Audited
Accounts of the Company for the |
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| period
ending 30th June 1999 is presented as follows: |
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| FINANCIAL
RESULTS |
|
RUPEES |
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| REVENUE |
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| Income
from Leases Operations |
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18,941,566 |
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| Ancillary
Financial Services Income |
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4,272,050 |
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| Other Income |
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|
1,199,982 |
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------------------ |
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24,413,598 |
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| EXPENDITURES |
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| Operating |
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|
9,046,855 |
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| Administrative |
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|
9,065,225 |
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| Financial |
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|
11,267,672 |
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|
------------------ |
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|
29,379,752 |
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| Allowance
for Potential Lease Losses: |
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9,500,000 |
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|
------------------ |
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| Loss
before Taxation |
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|
(14,466,154) |
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| Provision
for Taxation |
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|
14,533,420 |
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| Profit
after Taxation |
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|
67,266 |
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| OPERATIONAL
REVIEW |
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| From
the above, it can be observed that during the period under review, total
revenue has increased from 21.8 |
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| (m)
to 24.41 (m) due to the addition of ancillary Financial services. Expenses
have also been reduced from |
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| 31.98
(m) to 29.38 (m) and as a result the Operating loss has reduced from 10.9 (m)
to 6.2 (m). However, due |
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| to
provision for doubtful leases, before tax loss has increased from 10.16 (m)to
14.47 (m). |
|
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| Although
at the time of writing this Report, the chances look very remote that a major
portion of this provision |
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| will
actually convert to loss, nevertheless it was thought prudent to provide for
it. One of the fruits of labor in |
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| leasing
business after 15 years of operation also appears in the accounts in the form
of tax credit. |
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| Lending
of movable assets is the principal business of your Company and sadly it
continues to face tough |
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| competition
and difficulties in obtaining finance from Banks, but there appear to be
positive signs of change in |
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| this
regard at the time of writing this report. |
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| The
Company hopes that in the current year it will be adequately adding to its
lease portfolio. |
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| Your
management, having realized last year that a financial services company such
as yours can not survive |
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| by
its principal business alone, has successfully launched its Ancillary
Services Division. Like all other institu- |
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| tions
engaged in the business of supply of money, it also has a non-fund based
portfolio of services to augment |
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| its
income now. The need to develop a debt market in the country is undesirable
and the skill required to |
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| become
an active participant in the fixed income securities market is present in
your Company. The amend- |
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| ment
in the name of your Company as approved by you to convey this addition in the
nature of its business has |
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| been
implemented. All of which strongly support the expectations of your
management for the future. |
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| The
Company has taken adequate steps regarding Y2K problem and shall be compliant
before end of the year. |
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| AUDITORS |
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| The
present Auditors Hyder Bhimji & Co. Chartered Accountants are retiring
and being eligible, offer them- |
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| selves
for reappointment. |
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| PATTERN
OF SHARE HOLDING |
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| The
pattern of Shareholding as at 30th June 1999 is shown at page 6. |
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| ACKNOWLEDGMENT |
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| I,
on behalf of the Board, would like to express my gratitude to all those who
assisted the Company in its |
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| operations
and would like to place on record our deep appreciation to the staff members
for their dedication and |
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| hard work. |
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|
On behalf of the Board |
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|
SYED ZAHID HASSAN |
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| Karachi:
24th November 1999 |
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Chairman |
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| PATTERN
OF SHAREHOLDING |
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| AS
AT 30TH JUNE 1999 |
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| NUMBER OF |
|
SHAREHOLDING |
|
TOTAL |
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| SHARE |
FROM |
|
TO |
SHARES HELD |
|
|
| HOLDERS |
|
|
| 1002 |
1 |
-- |
100 |
29,922 |
|
| 354 |
101 |
-- |
500 |
127,260 |
|
| 1188 |
501 |
-- |
1000 |
661,108 |
|
| 194 |
1001 |
-- |
5000 |
358,823 |
|
| 19 |
5001 |
-- |
10000 |
122,300 |
|
| 9 |
10001 |
-- |
15000 |
112,701 |
|
| 1 |
15001 |
-- |
20000 |
19,000 |
|
| 3 |
20001 |
-- |
25000 |
70,669 |
|
| 7 |
25001 |
-- |
30000 |
186,714 |
|
| 1 |
45001 |
-- |
50000 |
47,956 |
|
| 1 |
95001 |
-- |
100000 |
95,065 |
|
| 2 |
125001 |
-- |
130000 |
256,720 |
|
| 1 |
220001 |
-- |
225000 |
220,745 |
|
| 1 |
470001 |
-- |
475000 |
473,370 |
|
| 1 |
885001 |
-- |
890000 |
886,930 |
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| 1 |
1580001 |
-- |
1585000 |
1,580,717 |
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| ------------------ |
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------------------ |
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| 2785 |
|
5,250,000 |
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| ========== |
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========== |
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| CATEGORIES |
|
NUMBER OF |
TOTAL |
|
|
| OF
SHARE HOLDERS |
|
SHARE |
SHARE |
PERCENTAGE |
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|
HOLDERS |
HOLDING |
|
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| INDIVIDUALS |
|
2774 |
3,775,474 |
71.91 |
|
| INVESTMENTS
COMPANIES |
|
2 |
137,540 |
2.62 |
|
| JOINT
STOCK COMPANIES |
|
4 |
269,601 |
5.13 |
|
| FINANCIAL
INSTITUTIONS |
|
4 |
1,052,385 |
20.05 |
|
| MODARABA
COMPANY |
|
1 |
15,000 |
0.29 |
|
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|
------------------ |
------------------ |
------------------ |
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|
|
2785 |
5,250,000 |
100.00 |
|
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|
========== |
========== |
========== |
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| AUDITORS'
REPORT TO THE MEMBERS |
|
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| We
have audited the annexed Balanced Sheet of NATOVER LEASE & REFINANCE
LIMITED (Formerly Natover |
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| Motor
Lease Limited) as at June 30, 1999 and the related Profit and Loss Account
for the year then ended and |
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| the
Statement of Changes in Financial Position (Cash Flow Statement) together
with the Notes forming part |
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| thereof,
for the year then ended and we state that we have obtained all the
information and explanations which |
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| to
the best of our knowledge and belief were necessary for the purposes of our
audit and, after due verification |
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| 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; |
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|
|
|
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| (b)
in our opinion; |
|
|
|
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| (i)
the Balance Sheet and Profit and Loss Account together with the notes thereon
have been |
|
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| drawn-up
in conformity with the Companies Ordinance, 1984 and are in agreement with
the |
|
|
| books
of a accounts and are further in accordance with accounting policies
consistently |
|
|
| applied. |
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|
|
|
|
| (ii)
the expenditure incurred during the year were for the purpose of Company's
business; and |
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|
|
|
|
| (iii)
the business conducted, investments made and the expenditure incurred during
the year |
|
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| were
in accordance with the objects of the Company; |
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|
|
|
|
|
| (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 Statement of Changes in Financial Position
(Cash Flow |
|
| Statement)
together with the notes forming part thereof, give the information required
by the Compa- |
|
| nies
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 |
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| (Cash
Flows) for the year then ended; and |
|
|
|
|
|
|
| (d)
in our opinion, Zakat deductible at source under the Zakat and Ushr
Ordinance, 1980 was deducted, |
|
| by
the Company and deposited in the Central Zakat Fund established Under Section
7 of that Ordi- |
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| nance. |
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|
|
|
|
|
|
Hyder Bhimji & Co. |
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| Karachi:
the 24th November 1999 |
|
Chartered Accountants |
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|
|
| BALANCE
SHEET AS AT JUNE 30, 1999 |
|
|
|
Note |
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
| SHARE
CAPITAL & REVERSES |
|
|
|
|
|
|
|
|
| AUTHORISED |
|
3 |
100,000,000 |
100,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
Subscribed & Paid-up |
|
4 |
52,500,000 |
52,500,000 |
|
| Statutory
Reserves |
|
|
1,694,715 |
1,694,715 |
|
| Capital
Reverse-Share Premium A/C |
|
|
6,250,000 |
6,250,000 |
|
| General
Reserve |
|
|
4,750,000 |
4,750,000 |
|
| Accumulated
(Loss) |
|
|
(20,543,126) |
(20,610,392) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(7,848,411) |
(7,915,677) |
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|
|
|
------------------ |
------------------ |
|
| Shareholders
Equity |
|
|
44,651,589 |
44,584,323 |
|
| Long
Term Certificates of Investments |
|
5 |
14,420,000 |
10,705,000 |
|
| Redeemable
Capital - Secured |
|
6 |
-- |
6,371,000 |
|
| Security
Deposits / Adj. Rentals |
|
7 |
2,214,007 |
4,487,766 |
|
| Liabilities
against assets subject |
|
|
|
|
| to
Finance Lease |
|
8 |
-- |
716,407 |
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
| Current
Portion of Redeemable Capital |
|
6 |
14,999,957 |
12,750,000 |
|
| Current
Portion of Security Deposits/ |
|
|
|
|
| Adjustment
Rentals |
|
7 |
1,981,770 |
3,058,420 |
|
| Current
Portion of Liabilities against |
|
|
|
|
| assets
subject to Finance Lease |
|
8 |
-- |
1,361,578 |
|
| Short
Term Certificates of Investments |
|
5 |
19,442,275 |
5,125,000 |
|
| Shod
Term Running Finance Utilized |
|
|
|
|
| Under
Mark-up Arrangement |
|
9 |
19,124,834 |
22,700,037 |
|
| Creditors.
Accrued & Other Liabilities |
|
10 |
9,539,382 |
10,528,436 |
|
| Dividend
Payable |
|
|
380,858 |
380,858 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
65,469,076 |
55,904,329 |
|
|
|
|
------------------ |
------------------ |
|
|
|
126,754,672 |
122,768,825 |
|
|
|
|
========== |
========== |
|
|
| FIXED
ASSETS |
|
|
|
|
|
|
|
| OPERATING
ASSETS TANGIBLE |
|
11 |
|
|
|
|
| Fleet
of Vehicles Plying for Hire |
|
24,251,998 |
24,970,674 |
|
|
|
------------------ |
------------------ |
|
| Others |
|
|
4,026,941 |
3,377,268 |
|
|
|
28,278,939 |
28,347,942 |
|
|
|
|
|
|
| INVESTMENT
IN LEASES / HIRE PURCHASE |
|
|
| Receivables
under Lease / HP contracts |
|
|
34,230,120 |
57,434,158 |
|
| Less:
Un-earned Income |
|
|
1,343,170 |
3,514,004 |
|
|
|
|
------------------ |
------------------ |
|
| Net
Investment in Leases / HP |
|
|
32,886,950 |
53,920,154 |
|
| Less:
Allowance for potential leases losses |
|
|
9,500,000 |
-- |
|
| Current
Portion of Lease/HP Receivables |
|
|
8,763,345 |
9,145,767 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
14,623,605 |
44,774,387 |
|
| Deferred
Taxation |
|
|
15,000,000 |
-- |
|
| Long
Term Investments |
|
12 |
8,856,176 |
1,284,240 |
|
| Long
Term Deposits, Prepayments |
|
|
| and
Deferred Revenue Expenditures |
|
13 |
2,418,423 |
3,876,296 |
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Current
Portion of Lease / HP Receivables |
|
|
8,763,345 |
9,145,767 |
|
| Vehicles
Stock/Idle Lease Stock |
|
|
8,721,716 |
7,232,732 |
|
| Fixed
Income Securities -Trading Stock |
|
|
3,502,841 |
-- |
|
| Stores
& Spares |
|
|
10,456 |
25,456 |
|
| Rentals
Receivables |
|
14 |
12,302,761 |
6,447,308 |
|
| Loans
and Advances |
|
15 |
5,521,893 |
5,629,455 |
|
| Pre-Payments
and Other Receivables |
|
16 |
17,807,744 |
14,820,431 |
|
| Cash
& Bank Balance |
|
17 |
877,770 |
1,253,814 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
57,508,526 |
44,554,963 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
126,754,672 |
122,768,825 |
|
|
|
|
|
========== |
========== |
|
| NOTE:
The annexed Notes form an integral pad of these accounts. |
|
|
|
(NADEEM H. SHAIKH) |
|
(SYED ZAHID HASAN) |
|
|
CHIEF EXECUTIVE |
|
CHAIRMAN |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 1999 |
|
|
|
Note |
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
| Rental Income |
|
|
14,837,996 |
18,177,855 |
|
| Lease
Settlement at Disposals |
|
18 |
3,664,326 |
2,214,963 |
|
| Hire
Purchase Income |
|
|
439,244 |
679,741 |
|
| Ancillary
Financial Services Income |
|
|
4,272,050 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
23,213,616 |
21,072,559 |
|
| Less: Expenses |
|
|
|
| -
Operating |
|
19 |
9,046,855 |
8,746,725 |
|
| - Administrative |
|
20 |
9,065,225 |
9,887,402 |
|
| -
Financial |
|
21 |
11,267,672 |
13,349,763 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
29,379,752 |
31,983,890 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
(6,166,136) |
(10,911,331) |
|
| Less:
Allowance for potential lease losses |
|
|
9,500,000 |
-- |
|
| Add:
Other Income |
|
22 |
1,199,982 |
753,555 |
|
|
|
|
------------------ |
------------------ |
|
| (Loss)
before Taxation |
|
|
(14,466,154) |
(10,157,776) |
|
|
|
|
|
|
| Provision
for taxation |
|
|
|
| -Current year |
|
122,000 |
110,000 |
|
| -Previous years |
|
344,580 |
-- |
|
| -Deferred |
|
(15,000,000) |
(750,000) |
|
|
|
|
------------------ |
------------------ |
|
|
|
(14,533,420) |
(640,000) |
|
|
|
|
------------------ |
------------------ |
|
| Profit
/ (Loss) after Taxation |
|
|
67,266 |
(9,517,776) |
|
| Accumulated
(Loss) B/F |
|
|
(20,610,392) |
(11,092,616) |
|
|
|
|
------------------ |
------------------ |
|
| Accumulated
(Loss) C/F to Balance Sheet |
|
|
(20,543,126) |
(20,610,392) |
|
|
|
|
========== |
========== |
|
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
|
(NADEEM H. SHAIKH) |
|
|
(SYED ZAHID HASAN) |
|
|
CHIEF EXECUTIVE |
|
|
CHAIRMAN |
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| FOR
THE YEAR ENDED JUNE 30, 1999 |
|
|
|
|
|
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| Cash
flow from operating activities |
|
|
| Net
(loss) / profit before taxation |
|
(14,466,154) |
(10,157,774) |
|
|
|
|
|
| Adjustments
for: |
|
|
|
| Depreciation |
|
7,522,155 |
6,385,845 |
|
| Amortization
of deferred cost |
|
836,153 |
1,102,302 |
|
| Allowance
for Potential lease losses |
|
9,500,000 |
-- |
|
| Provision
for diminution in value of Investments |
|
22,090 |
132,820 |
|
| Gain
on disposal of assets |
|
(4,394,315) |
(2,831,317) |
|
|
|
|
------------------ |
------------------ |
|
| Operating
(loss) before working capital changes |
|
(980,071) |
(5,368,124) |
|
|
|
|
| (Increase)/Decrease
in loans, advances, prepayments and other |
|
| receivables
/ rent receivables |
|
(8,735,204) |
8,284,015 |
|
| Decrease
in net investment in leases |
|
21,033,204 |
12,639,769 |
|
| (Increase)
in Stores, Idle stock & Inventory Stock |
|
(4,976,825) |
(482,650) |
|
| (Decrease)
in deposits from customers |
|
(3,350,409) |
(4,948,419) |
|
| (Decrease)/Increase
in creditors, accrued and other liabilities |
|
(989,054) |
3,918,865 |
|
|
|
------------------ |
------------------ |
|
| Cash
generated from operations |
|
2,981,712 |
19,411,580 |
|
| Income
taxes (paid)/reverse |
|
(466,580) |
640,000 |
|
|
|
------------------ |
------------------ |
|
| Net
cash from operating activities |
|
1,535,061 |
14,683,456 |
|
| Cash
flows from investing activities |
|
|
| Addition
of fixed assets |
|
(8,123,469) |
(7,245,553) |
|
| Proceeds
from sales of own / leases assets |
|
4,886,226 |
3,699,230 |
|
| Long
term deposits & repayments |
|
1,118,335 |
824,873 |
|
| Addition
in deferred cost |
|
(496,615) |
(181,121) |
|
|
|
------------------ |
------------------ |
|
| Net
cash use investing activities |
|
(2,615,523) |
(2,902,571) |
|
|
|
|
| Cash
flows from financing activities |
|
|
| Proceeds
from COl's |
|
18,032,275 |
2,440,000 |
|
| Repayments
of long term finance |
|
(6,199,028) |
(11,221,585) |
|
| Repayments
of short term finance |
|
(3,575,203) |
(3,357,551) |
|
| Dividend paid |
|
|
-- |
(1,155) |
|
|
|
------------------ |
------------------ |
|
| Net
cash used in financing activities |
|
8,258,044 |
(12,140,291) |
|
|
|
------------------ |
------------------ |
|
| Net
Increase/(decrease) in cash and cash equivalents |
|
7,177,582 |
(359,406) |
|
| Cash
and cash equivalents at July 01,1998 |
|
2,670,874 |
3,030,280 |
|
|
|
------------------ |
------------------ |
|
| Cash
and cash equivalents at June 30, 1999 (A) |
|
9,848,456 |
2,670,874 |
|
|
|
========== |
========== |
|
|
|
|
|
| A.
Cash and cash equivalents at June 30, 1999: |
|
|
|
| Cash
in hand and with banks |
|
877,770 |
1,253,814 |
|
| Investments |
|
|
8,970,686 |
1,417,060 |
|
|
|
------------------ |
------------------ |
|
|
|
|
9,848,456 |
2,670,874 |
|
|
|
|
========== |
========== |
|
|
|
(NADEEM H. SHAIKH) |
|
|
(SYED ZAHID HASAN) |
|
|
CHIEF EXECUTIVE |
|
|
CHAIRMAN |
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED JUNE 30, 1999 |
|
|
| 1.
STATUS, NATURE AND STATE OF BUSINESS |
|
| The
Company was incorporated on December 20, 1984 as private limited company. On
September 25, |
|
| 1988,
the Company was converted into public limited Company. Subsequently the
Company got itself |
|
| listed
on the Karachi & Islamabad Stock Exchanges in early 1994. The Main
business of the Company |
|
| is
Leasing and Contract Hire of vehicles, transport craft, plant & machinery
and other permissible assets |
|
| mainly
to the corporate clients. It's ancillary business includes trading in fixed
income securities and |
|
| other
financial services. The Company has not succeeded to achieve the required
level of its lease and |
|
| investment
portfolio giving rise to uncertainty. However, the management is confident
that the new millennium |
|
| will
see the company into a significantly positive recovery. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
Accounting Convention: |
|
|
| These
accounts have been prepared under the historical cost conventions. |
|
|
| 2.2. Taxation |
|
| The
provision for current taxation is based on taxable income at current rates of
taxation after |
|
| considering
admissible tax credit, rebates if any, or half percent of turnover, whichever
is |
|
| higher.
The Company accounts for deferred taxation on all material timing differences
using |
|
| liability method. |
|
|
| 2.3.
Fixed Assets - Tangile |
|
| Operating
Assets and Assets Plying for Hire are stated at cost less accumulated
deprecia- |
|
| tion.
Depreciation is charged to income applying straight line method at the rates
specified in |
|
| Note
11. No depreciation is charged on the assets in the month of acquisition
while a full |
|
| month's
depreciation is charged in the month of disposal. |
|
|
| Maintenance
and normal repairs are charged to income as and when incurred. Major renewals |
|
| and
replacements are capitalised and assets so replaced, if any retired. Profit
& loss on |
|
| disposal
of fixed assets is included in current income. |
|
|
| 2.4
Leasing Operations |
|
|
|
| The
aggregate lease receivables less unearned income are recorded as Net
Investment in |
|
| leases. |
|
|
|
|
|
|
| 2.5
Deferred Revenue Expenditures |
|
|
| The
company defers the major renewal expenditures on motor vehicle to the extent
of 50% of |
|
| their
value which is written off in 3 years. |
|
|
|
| 2.6.
Revenue Recognition |
|
| Rental
income from leased vehicles is received on quarterly / monthly basis
generally in |
|
| advance
and accounted for in books on monthly basis. |
|
|
| The
unearned income portion of the aggregate lease contract receivables is taken
into income |
|
| over
the term of lease commencing with the month of execution, on a pattern
reflecting a |
|
| generally
constant rate of return on net investment outstanding. |
|
|
| 2.7.
Allowance for Potential Lease Losses |
|
| The
allowance for potential lease losses is maintained at a level, which in the
judgement of the |
|
| management
is inefficient to provide for any potential lease losses. The recognition of
annual |
|
| charge
and income of such amount would be taken through the profit and loss account. |
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| 3.
AUTHORISED CAPITAL |
|
|
|
| 10,000,000
(1998: 10,000,000) Ordinary Shares |
|
|
| of Rs. 10/-each. |
|
|
10,000,000 |
10,000,000 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
| 4.
ISSUED SUBSCRIBED AND PAID-UP CAPITAL |
|
| 4,750,000
(1998: 4,750,000) Ordinary Shares |
|
|
| of
Rs. 10/- each fully paid issued for cash. |
|
47,500,000 |
47,500,000 |
|
| 500,000
(1998: 500,000) Ordinary Shares of |
|
|
| Rs.
10/- each fully paid issued as Bonus Shares. |
|
5,000,000 |
5,000,000 |
|
|
|
------------------ |
------------------ |
|
|
|
52,500,000 |
52,500,000 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
| 5.
CERTIFICATES OF INVESTMENTS |
|
|
| Issued to: |
|
|
|
| Associated
Undertakings |
|
6,875,000 |
6,875,000 |
|
| Directors |
|
|
2,365,000 |
3,265,000 |
|
| Friends
& Family members |
|
9,122,275 |
340,000 |
|
| Insurance
companies |
|
5,500,000 |
5,350,000 |
|
| Banks |
|
|
10,000,000 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
33,862,275 |
15,830,000 |
|
| LESS:
Issued for less than one year |
|
19,442,275 |
5,125,000 |
|
|
|
------------------ |
------------------ |
|
| Issued
for one year and more |
|
14,420,000 |
10,705,000 |
|
|
|
|
========== |
========== |
|
|
|
|
| The
Company has a Scheme of registered Certificate of Investment for resource
mobilization. The term of |
|
| Certificates
ranges from three months to five years and expected return ranging from 15%
to 24% P.A. |
|
|
|
|
| 6.
REDEEMABLE CAPITAL- SECURED |
|
|
| Musharika
fund from FIRST ALLIED |
|
|
| BANK
MODARABA (F.A.B.M.) |
|
(a) |
11,000,000 |
11,000,000 |
|
| Less:
Current Portion Shown in |
|
|
| Current
Liabilities |
|
11,000,000 |
6,000,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
-- |
5,000,000 |
|
| Demand
Finance from |
|
|
|
| ALLIED
BANK OF PAKISTAN |
|
(b) |
3,999,957 |
8,121,000 |
|
| Less:
Current Portion Shown in |
|
|
|
| Current
Liabilities |
|
|
3,999,957 |
6,750,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
-- |
1,371,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
-- |
6,371,000 |
|
|
|
|
========== |
========== |
|
|
|
| (a)
This represents the balance amount of Rs. 25.00 millions musharika fund
obtained from F.A.B.M. The |
|
| profit
and loss is to be shared between the Modaraba and the Company in an agreed
ratio after |
|
| adjusting
operating expenses. |
|
|
|
|
|
|
| The
share of profit of the Modaraba from July 98 to June 99 is Rs. 2,200,000
(July 97 to June 98: |
|
| Rs.
6,021,885). The fund is secured by way of 1st. Charge on present & future
assets of the Company. |
|
| The
Finance is repayable in quarterly installments of Rs. 2.00 millions. |
|
|
|
| (b)
The total facility available from Bank is Rs. 13.00 million (1998 Rs. 13.00
M). The rate of mark-up is |
|
| 21.00
%. The facility is secured by hypothecation of vehicles, assignment of
rentals/receivables and |
|
| creation
of first charge on Leased / Hire purchased assets. The Finance is repayable
in biannual |
|
| installments
of Rs. 2.25 millions. |
|
|
|
|
|
|
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
| 7.
SECURITIES DEPOSITS / ADJUSTMENT RENTALS |
|
4,195,777 |
7,546,186 |
|
| Less:
Current portion Refundable |
|
|
| with-in
the following 12 months |
|
1,981,770 |
3,058,420 |
|
|
|
------------------ |
------------------ |
|
|
|
2,214,007 |
4,487,766 |
|
|
|
|
========== |
========== |
|
|
|
|
| 8.
LIABILITIES AGAINST ASSETS SUBJECT TO |
|
|
|
|
| FINANCE
LEASE (SECURED) |
|
|
|
| PARAMOUNT
LEASING LIMITED |
|
-- |
2,077,985 |
|
| Less:
Current Portion shown under |
|
|
|
| Current
liabilities |
|
-- |
1,361,578 |
|
|
|
------------------ |
------------------ |
|
|
|
|
-- |
716,407 |
|
|
|
|
========== |
========== |
|
|
| The
above lease has been obtained for the purpose of equipments and vehicles for
office use. The total |
|
| aggregate
facility available is NIL (1998: Rs 5.44 Million). payable in quarterly
installment as follows:- |
|
|
|
|
Minimum Lease |
Minimum Lease |
|
| Year |
|
|
Payment |
Payment |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
Jun-99 |
Jun-98 |
|
|
|
|
| 1998-1999 |
|
|
|
| Lease Rent |
|
|
-- |
1,342,373 |
|
| Terminal Value |
|
|
-- |
120,000 |
|
| 1999-2000 |
|
|
|
|
| Lease Rent |
|
|
-- |
422,992 |
|
| Terminal Value |
|
|
-- |
486,138 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
-- |
2,371,503 |
|
| Less: Mark-up |
|
|
-- |
293,518 |
|
|
|
|
------------------ |
------------------ |
|
|
|
-- |
2,077,985 |
|
|
|
|
|
|
========== |
========== |
|
|
|
| The
mark-up rate implicit in the lease is 18.81% p.a. on equipments and 16.81%
p.a. on vehicles, |
|
| which,
if used as the discount factor in calculating the present value of the
minimum lease payment, |
|
| brings
them, equal to substantially all of the fair value of the leased assets. |
|
|
| Security |
|
| The
above facility is secured against personal guarantee of Directors, Promissory
note for an amount |
|
| of
Rs. 7.695 Million and security deposit of Rs. NIL. (1998: Rs. 606,139.) |
|
|
|
|
|
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
| 9.
SHORT TERM RUNNING FINANCE |
|
|
|
|
|
|
| RUNNING
FINANCE UTILIZED UNDER |
|
|
| MARKUP
ARRANGEMENTS |
|
|
|
| ALLIED
BANK OF PAKISTAN LTD. |
|
(a) |
2,570,722 |
646,352 |
|
| ANZ
GRINDLAYS BANK plc. |
|
(b) |
10,629,696 |
14,613,685 |
|
| OMAN
INTERNATIONAL BANK, S.A.O.G. |
|
(c) |
4,571,141 |
7,000,000 |
|
| UNION
BANK LIMITED |
|
(d) |
1,353,275 |
-- |
|
| HONGKONG
& SHANGHAI BANKING CORPORATION |
(e) |
-- |
440,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
19,124,834 |
22,700,037 |
|
|
|
|
|
========== |
========== |
|
|
| (a)
ALLIED BANK OF PAKISTAN LIMITED |
|
| The
temporary overdraft available from bank is Rs. 3.00 million. The rate of
Markup is 20.00%. |
|
|
| (b)
ANZ GRINDLAYS BANK plc. |
|
| The
total facility available from bank is Rs. 14.00 Million (1998 Rs. 20.00 M).
The rate of Mark- |
|
| up
is 19.00%. The facility is secured by hypothecation of vehicles, assignment
of lease rent- |
|
| als
and assets value insurance. |
|
|
| (c)
OMAN INTERNATIONAL BANK S.A.O.G. |
|
| The
total facility available from bank is Rs. 4.70 Million (1998 Rs. 10.00 M.)
The rate of Markup |
|
| is
18.50%. The facility is secured by hypothecation of vehicles and assignment
of lease |
|
| rentals. |
|
|
| (d)
UNION BANK LIMITED |
|
| The
total facility available from bank is Rs. 2.00 Million (1998 Rs. NIL.) The
rate of Mark-up is |
|
| 19.50%.
The facility is secured by Pledge of Special US$ Bonds. |
|
|
| (e)
HONGKONG & SHANGHAI BANKING CORPORATION. |
|
| The
temporary overdraft available from bank is Rs. NIL (1998:Rs. 0.44 million).
The rate of |
|
| Markup
was 20.00%. |
|
|
| 10
CREDITORS, ACCRUED AND OTHER LIABILITIES |
|
|
|
| Creditors |
|
|
-- |
2,944,024 |
|
| Accrued
Expenses |
|
|
1,444,779 |
1,370,586 |
|
| Accrued
profit on COI'S |
|
|
2,737,270 |
1,777,100 |
|
| Mark-up
Accrued |
|
|
3,467,698 |
3,135,957 |
|
| Other Liabilities |
|
|
1,889,635 |
1,300,769 |
|
|
|
|
------------------ |
------------------ |
|
|
|
9,539,382 |
10,528,436 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
| 11.
OPERATING ASSETS |
|
|
|
|
|
|
|
|
COST |
|
|
DEPRECIATIONS |
|
|
|
|
|
|
W.D.V. |
|
|
|
|
|
RATES % |
|
|
|
AS AT |
ADDITIONS |
TRANSFERS |
SALES |
AS AT |
|
AS AT |
FOR THE |
TRANSFERS |
SALES |
AS AT |
AS AT |
|
|
01-07-98 |
DURING |
DURING |
DURING |
30-06-99 |
|
01-07-98 |
YEAR |
DURING |
DURING |
30-06-99 |
30-06-99 |
|
|
|
THE YEAR |
THE YEAR |
THE YEAR |
|
THE YEAR |
|
|
|
|
|
|
|
|
| VEHICLES
PLYING FOR HIRE: |
|
|
|
|
|
| RELIEF
VEHICLES |
965,846 |
-- |
1,282,051 |
-- |
2,247,896 |
20 |
910,461 |
76,753 |
833,333 |
-- |
1,820,547 |
427,350 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
| LEASE
VEHICLES |
31,532,443 |
7,860,313 |
(1,282,051) |
(1,169,000) |
36,941,705 |
20 |
7,335,830 |
6,163,688 |
(833,333) |
(267,804) |
12,398,381 |
24,543,324 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
| Sub total |
|
32,498,289 |
7,860,313 |
-- |
(1,169,000) |
39,189,602 |
-- |
8,246,291 |
6,240,441 |
-- |
(267,804) |
14,218,928 |
24,970,674 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
|
|
|
|
| OTHERS
ASSETS: |
|
|
|
|
|
| Furniture
& Fixtures |
852,009 |
83,510 |
-- |
-- |
935,519 |
10 |
581,805 |
61,031 |
-- |
-- |
642,836 |
292,683 |
| Office
Equipments |
2,627,282 |
96,696 |
1,263,360 |
-- |
3,987,338 |
10 |
1,443,347 |
289,041 |
431,785 |
-- |
2,164,173 |
1,823,165 |
| Office
Equipments (Obtained |
|
|
|
| Under
Finance (Lease) |
1,263,360 |
-- |
(1,263,360 |
-- |
-- |
10 |
368,617 |
63,168 |
(431,785) |
-- |
-- |
-- |
| Tools
& Machinery |
376,425 |
-- |
-- |
-- |
376,425 |
10 |
340,139 |
27,520 |
-- |
-- |
367,659 |
8,766 |
| Vehicles
for Office Use |
2,449,817 |
82,950 |
3,246,474 |
(1,684,279) |
4,094,962 |
20 |
2,262,175 |
283,626 |
1,684,474 |
(1,387,967) |
2,842,308 |
1,252,654 |
| Vehicles
for Office Use (Obtained |
|
|
| Under
Finance Lease) |
3,246,474 |
-- |
(3,246,474) |
-- |
-- |
20 |
1,792,346 |
557,328 |
(2,349,674) |
-- |
-- |
-- |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
| Sub
Total Rupees |
10,815,367 |
263,156 |
-- |
(1,684,279) |
9,394,244 |
-- |
6,788,429 |
1,281,714 |
(665,200) |
(1,387,967) |
6,016,976 |
3,377,268 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
| TOTAL
JUNE 1999 Rupees |
43,313,656 |
8,123,469 |
-- |
(2,853,279) |
48,583,846 |
|
15,034,720 |
752,155 |
(665,200) |
(1,655,771) |
20,235,904 |
28,347,942 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
| TOTAL
JUNE 1998 Rupees |
37,314,840 |
7,245,553 |
-- |
(1,246,737) |
43,313,656 |
|
9,482,696 |
6,385,845 |
-- |
-- |
15,034,717 |
28,278,939 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
|
|
|
|
| 11.1
Particulars of fixed assets sold during the year. |
|
|
| Description |
Original |
Accumulated |
Written |
Sale |
Profit/ |
Mode of Disposal & |
|
|
Cost |
Depreciation |
down value |
proceeds |
(Loss) |
Particulars of buyers |
|
|
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
|
|
| Suzuki Mehran |
149,300 |
149,300 |
-- |
100,000 |
100,000 |
Through Negotiation |
|
|
|
|
Mrs. Sadaf Nizamani, |
|
|
|
|
W/o. Mr. Sajjad Hussain, |
|
|
|
|
AB-1, Ibrahim Terrace, |
|
|
|
|
Adam Road, Cantt, |
|
|
|
|
Karachi. |
|
|
|
|
| Suzuki Khyber |
285,720 |
261,910 |
23,810 |
235,000 |
211,190 |
Through Negotiation |
|
|
|
|
Mr. Nayar Afzal Siddiqi, |
|
|
S/o. Mr. Afzal Siddiqi, |
|
|
C-35, Block-9, |
|
|
Gulshan-e-lqbal, |
|
|
Karachi. |
|
|
| Suzuki Khyber |
234,359 |
210,924 |
23,435 |
222,000 |
198,565 |
Through Negotiation |
|
|
Mr. Muhammad Motasim
Bilali, |
|
|
S/o Mr. Mustahassan
Bilali, |
|
|
E-3, A.B.C. Appartment, |
|
|
Block-4, Nazimabad, |
|
|
Karachi. |
|
|
| Honda CD-70 |
39,900 |
27,500 |
12,400 |
39,900 |
27,500 |
Due to Theft, |
|
|
M/s. Askari General
Insurance |
|
|
4th Floor, A.W.T. Plaza, |
|
|
The Mall, |
|
|
Rawalpindi. |
|
|
| Nissan Sunny |
425,000 |
325,833 |
99,167 |
300,000 |
200,833 |
Through Negotiation |
|
|
M/s. Aziz & Sons, |
|
|
D-21-A, SITE, |
|
|
Karachi. |
|
|
| Honda Accord |
550,000 |
412,500 |
137,500 |
325,000 |
187,500 |
Through Negotiation |
|
|
M/s. New Car Castle |
|
|
126-M, Block-2, |
|
|
P.E.C.H.S., |
|
|
Karachi |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Total
June 1999 |
1,684,279 |
1,387,967 |
296,312 |
1,221,900 |
925,588 |
|
|
========== |
========== |
========== |
========== |
========== |
|
| Total June 1998 |
867,250 |
498,604 |
368,646 |
985,000 |
616,354 |
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
|
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| 12.
LONG TERM INVESTMENTS |
|
|
|
|
|
| Federal
Investment Bonds |
|
(a) |
1,000,000 |
1,000,000 |
|
| National
Investment Trust Units |
|
(b) |
99,960 |
99,960 |
|
| Shares
of Quoted Companies |
|
(c) |
143,100 |
317,100 |
|
| Special
US$ Bonds |
|
(d) |
7,727,628 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
8,970,686 |
1,417,060 |
|
| Less:
Diminution in Value of Investments |
|
|
| -N.I.T. Units |
|
|
45,560 |
52,020 |
|
| -Shares
of Quoted Companies |
|
|
68,950 |
80,800 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
114,510 |
132,820 |
|
|
|
------------------ |
------------------ |
|
|
|
8,856,176 |
1,284,240 |
|
|
|
|
========== |
========== |
|
|
|
|
| (a)
FEDERAL INVESTMENT BONDS:- |
|
|
| Investment
has been made to comply with the provisions of State Bank of Pakistan's
rules' for |
|
| Non-Banking
Financial Institutions (NBFIs) to maintain liquidity against prescribed
liabilities The |
|
| rate
of return is 15% P.A. payable half yearly. |
|
|
|
|
|
| (b)
NATIONAL INVESTMENT TRUST:- |
|
|
| 6,800
Registered units Purchased at the rate of Rs. 14.70 per unit and current rate
is Rs. 8.00 per |
|
| unit. |
|
|
|
|
|
|
| (c)
SHARES OF QUOTED COMPANIES:- |
|
|
|
|
|
|
| NAME
OF COMPANIES |
|
NO. OF |
COST |
MARKET |
|
|
|
SHARES |
PRICE |
VALUE |
|
|
|
|
| COMMERCIAL
UNION LIFE INC. LTD. |
|
5,000 |
72,000 |
38,750 |
|
| I.C.I.
PAKISTAN LIMITED |
|
4,000 |
71,100 |
35,400 |
|
|
|
|
------------------ |
------------------ |
|
|
143,100 |
74,150 |
|
|
|
|
|
========== |
========== |
|
|
| (d)
SPECIAL US $ BONDS: |
|
| It
represents investments amounting to US$ 149,000 in the special US dollar
bonds issued by the |
|
| Government
of Pakistan. These bonds are redeemable on April 01,2002 and carry interest
of six |
|
| months
LIBOR plus two percent. |
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
| 13
LONG TERM DEPOSITS, PRE-PAYMENTS |
|
|
| AND
DEFERRED REVENUE EXPENDITURES |
|
|
| Deposits |
|
|
|
48,630 |
674,769 |
|
| Pre-Payments-Associated
Undertakings |
|
|
1,536,000 |
2,112,000 |
|
| -Others |
|
|
129,199 |
45,395 |
|
| Deferred
Cost For Issue of Shares |
|
(13.1) |
-- |
225,000 |
|
| Deferred
Revenue Expenditures |
|
(13.2) |
218,300 |
262,119 |
|
| Deferred
Cost of Renovation of Office/Buildings |
|
(13.3) |
486,294 |
557,013 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,418,423 |
3,876,296 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| 13.1
Deferred Cost for Issue of Shares:- |
|
|
| Opening
Balance of the year |
|
|
225,000 |
675,000 |
|
| Less:
Amortized during the year |
|
|
225,000 |
450,000 |
|
|
|
|
|
------------------ |
------------------ |
|
| Closing
Balance of the year |
|
|
-- |
225,000 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 13.2
Deferred Revenue Expenditures:- |
|
|
| Vehicles
Maintenance:- |
|
|
|
| Opening
Balance |
|
|
262,119 |
454,794 |
|
| Add:
50% of Rs. 473,787/- (1997-1998 Rs. 362,243/=) |
|
236,894 |
181,121 |
|
|
|
------------------ |
------------------ |
|
|
|
499,013 |
635,915 |
|
|
|
------------------ |
------------------ |
|
| Less:
Charged 1/3 of Rs. 236,894 (1998-1999) |
|
78,965 |
-- |
|
| Less:
Charged 1/3 of Rs. 181,122 (1997-1998) |
|
60,374 |
60,374 |
|
| Less:
Charged 1/3 of Rs. 424,120 (1996-1997) |
|
141,374 |
141,373 |
|
| Less:
Charged 1/3 of Rs. 1,032,294 (1995-1996) |
|
-- |
172,049 |
|
|
|
------------------ |
------------------ |
|
|
|
280,713 |
373,796 |
|
|
|
------------------ |
------------------ |
|
| Closing
Balance of the year |
|
218,300 |
262,119 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
| 13.3
Deferred Cost For Renovation of Office / Building: |
|
| Opening
Balance |
|
557,013 |
835,519 |
|
| Add:
Addition during the year |
|
259,721 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
816,734 |
835,519 |
|
| Less:
Written off during the year |
|
330,450 |
278,506 |
|
|
|
------------------ |
------------------ |
|
| Closing
Balance of the year |
|
486,284 |
557,013 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
| It
represents improvements on rented premises and will be written off in five
years. |
|
|
|
|
|
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
| 14.
RENTALS RECEIVABLE |
|
|
|
| Considered
Good |
|
12,302,761 |
6,447,308 |
|
| Considered
Doubtful |
|
299,415 |
299,415 |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
|
12,602,176 |
6,746,723 |
|
| Provision
for Doubtful Debts |
|
|
|
299,415 |
299,415 |
|
|
|
|
------------------ |
------------------ |
|
|
|
12,302,761 |
6,447,308 |
|
|
|
========== |
========== |
|
|
|
|
|
| 15.
LOANS AND ADVANCES |
|
|
|
| (CONSIDERED
GOOD) UNSECURED |
|
|
| To
Employees- Considered Goods |
|
21,675 |
54,855 |
|
| Considered
Doubtful Debts |
|
2,800 |
18,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
72,855 |
24,475 |
|
| Provision
for Doubtful |
|
18,000 |
2,800 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
21,675 |
54,855 |
|
| Against:- |
|
|
|
| Expenses |
|
|
|
579,814 |
750,887 |
|
| Purchase
of Office Premises (own use) |
|
4,150,000 |
4,150,000 |
|
| Income
Tax Refundable |
|
|
|
770,404 |
673,713 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
5,521,893 |
5,629,455 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 16.
PRE-PAYMENTS AND OTHER RECEIVABLES |
|
| Pre- Payments |
|
|
|
|
4,638,310 |
5,851,157 |
|
| Other
Receivables |
|
|
|
13,169,434 |
8,969,274 |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
17,807,744 |
14,820,431 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 17.
CASH & BANK BALANCES |
|
|
| Cash in Hand |
|
|
24,202 |
16,401 |
|
| With
Banks in Current Accounts |
|
853,568 |
1,237,413 |
|
|
|
------------------ |
------------------ |
|
|
|
877,770 |
1,253,814 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 18.
LEASE SETTLEMENT AT DISPOSALS |
|
|
| Profit
on Disposals of Leased Assets |
|
|
5,262,993 |
3,900,185 |
|
| Less:
Rentals Rebate |
|
|
|
1,598,667 |
1,685,222 |
|
|
|
|
------------------ |
------------------ |
|
|
|
3,663,326 |
2,214,963 |
|
|
|
|
========== |
========== |
|
|
|
|
|
| 19.
OPERATING EXPENSES |
|
|
|
| Depreciation |
|
|
|
6,240,441 |
4,955,844 |
|
| Motor
Insurance |
|
|
1,295,003 |
2,218,124 |
|
| Vehicles
Maintenance |
|
|
1,048,231 |
1,046,236 |
|
| Registration
& Road Tax |
|
|
197,080 |
335,490 |
|
| Asset
Value Insurance |
|
|
104,769 |
134,233 |
|
| Freight Charges |
|
|
|
6,536 |
45,985 |
|
| Commission |
|
|
|
139,795 |
7,313 |
|
| Other
Operating Expenses |
|
|
15,000 |
3,500 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
9,046,855 |
8,746,725 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
|
|
|
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
|
| 20.
ADMINISTRATIVE EXPENSES |
|
|
| Staff
Salaries & Allowances |
|
|
3,637,457 |
3,982,797 |
|
| Printing
& Stationary |
|
|
227,743 |
78,500 |
|
| Postage
& Telephone |
|
|
709,509 |
635,947 |
|
| Electricity
& Gas |
|
|
390,034 |
585,399 |
|
| Office Rent |
|
|
324,850 |
372,496 |
|
| Lease Rentals |
|
|
576,000 |
576,000 |
|
| Travelling |
|
|
112,001 |
110,509 |
|
| Conveyance
& Transport |
|
|
42,463 |
45,377 |
|
| Fees
Subscription & Periodicals |
|
|
205,437 |
193,075 |
|
| Entertainment |
|
|
126,107 |
124,197 |
|
| Office
Maintenance |
|
|
248,858 |
363,766 |
|
| Rent,
Rates, Taxes & Insurance |
|
|
111,087 |
29,878 |
|
| Auditor's
Remuneration (20.1) |
|
|
77,233 |
53,509 |
|
| Legal
& Professional Charges |
|
|
328,000 |
385,500 |
|
| Advertisement |
|
|
86,052 |
59,125 |
|
| Amortization
of Deferred Cost for Issue of Shares |
|
|
225,000 |
450,000 |
|
| Depreciation |
|
|
1,281,714 |
1,430,001 |
|
| Amortization
of Deferred cost for |
|
|
|
|
| Renovation
of Office / Building |
|
|
330,440 |
278,506 |
|
| Provision
for Diminution in the Value of Investments |
|
22,090 |
132,820 |
|
| Provision
for Doubtful |
|
|
2,800 |
-- |
|
| Other Charges |
|
|
350 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
9,065,225 |
9,887,402 |
|
|
|
|
========== |
========== |
|
|
|
|
| 20.1
Auditor's Remuneration |
|
|
|
| Annual
Audit Fee |
|
45,000 |
45,000 |
|
| Special
Audit Fee (as per NBFI's Rules) |
|
20,000 |
-- |
|
| Out
of Pocket Expenses |
|
12,233 |
8,509 |
|
|
|
------------------ |
------------------ |
|
|
|
77,233 |
53,509 |
|
|
|
|
========== |
========== |
|
| 21.
FINANCIAL EXPENSES |
|
|
|
| Profit
on Redeemable Capital |
|
|
7,281,105 |
5,946,915 |
|
| Mark-Up
on Short Term Running Finance |
|
|
649,455 |
4,893,226 |
|
| Charges
on Finance Lease |
|
|
449,236 |
423,196 |
|
| Bank
Charges & Commission |
|
|
53,247 |
15,949 |
|
| Central
Excise Duty |
|
|
25,564 |
-- |
|
| Profit on COI's |
|
|
2,809,065 |
2,060,019 |
|
| Others |
|
|
-- |
10,458 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
11,267,672 |
13,349,763 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
|
| 22.
OTHER INCOME |
|
|
| Profit
on Disposal of Assets |
|
|
925,588 |
616,354 |
|
| Profit
on Investments |
|
|
224,280 |
135,301 |
|
| Gain
/ (Loss) on Sales of Investments |
|
|
(48,100) |
-- |
|
| Others |
|
|
98,214 |
1,900 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,199,982 |
753,555 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
| 23.
REMUNERATION OF CHIEF EXECUTIVE & EXECUTIVES:- |
|
|
|
|
CHIEF |
EXECUTIVES |
|
|
|
EXECUTIVE |
|
|
|
| SALARY |
|
421,665 |
858,090 |
|
|
| HOUSE RENT |
|
188,129 |
378,580 |
|
|
| UTILITIES |
|
41,806 |
84,130 |
|
|
| MEDICAL |
|
19,440 |
39,120 |
|
|
|
|
------------------ |
------------------ |
|
|
| 1999 Rupees |
|
671,040 |
1,359,920 |
|
|
|
|
------------------ |
------------------ |
|
|
| 1998 Rupees |
|
671,040 |
1,308,595 |
|
|
|
|
------------------ |
------------------ |
|
|
| NO
OF PERSONS:- |
|
|
|
|
| 1999 |
|
1 |
8 |
|
|
|
|
------------------ |
------------------ |
|
|
| 1998 |
|
1 |
7 |
|
|
|
|
------------------ |
------------------ |
|
|
|
| 23.1
The Chief Executive and certain Executives of the Company are also provided
with free use of |
|
| Company
Maintained Vehicles. |
|
|
|
|
| 24.
TRANSACTIONS WITH ASSOCIATED UNDERTAKINGS |
|
| Rent
paid for office premises |
|
|
|
576,000 |
576,000 |
|
| Lease
rentals received |
|
|
|
934,584 |
934,584 |
|
|
|
|
| 25
EARNING PER SHARE |
|
|
|
| Profit
/ (Loss) after taxation |
|
|
|
67,266 |
(9,517,776) |
|
|
|
|
|
========== |
========== |
|
| Number
of ordinary shares |
|
|
|
5,250,000 |
5,250,000 |
|
|
|
|
|
========== |
========== |
|
| Earning
per share |
|
|
|
0.013 |
-- |
|
|
|
|
|
========== |
========== |
|
|
|
| 26.
STATEMENT OF CHANGES IN EQUITY |
|
|
|
|
SHARE |
PREMIUM |
RESERVE FOR |
GENERAL |
ACCUMULATED |
TOTAL |
|
|
|
CAPITAL |
ON ISSUE |
CONTINGENCIES |
RESERVE |
(LOSS) |
|
|
|
|
|
OF SHARE |
|
|
| Balance as on |
|
|
| July
01, 1997 |
|
52,500,000 |
6,250,000 |
1,964,715 |
4,750,000 |
(11,092,616) |
54,102,099 |
|
|
|
|
|
| Loss
for the year |
-- |
-- |
-- |
-- |
(9,517,776) |
(9,517,776) |
|
| Balance as on |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| June 30, 1998 |
|
52,500,000 |
6,250,000 |
1,694,715 |
4,750,000 |
(20,610,392) |
44,584,323 |
|
|
|
|
|
| Profit
for the year |
-- |
-- |
-- |
-- |
67,266 |
67,266 |
|
| Balance as on |
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| June 30, 1998 |
|
52,500,000 |
6,250,000 |
1,694,715 |
4,750,000 |
(20,543,126) |
44,651,589 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| 27 TAXATION |
|
| The
income tax assessments of the company have been finalized upto and including
assessment year |
|
| 1998-1999.
In view of tax losses available in respect of leasing business, provision for
taxation has been |
|
| made. |
|
|
| 28
CREDIT RISK |
|
| The
company's credit risk exposure is not significantly different from that
reflected in the financial state- |
|
| ments.
The management monitors and limits company's exposure to credit risk through
monitoring of |
|
| client's
credit exposure, reviews and conservative estimates of provisions for
doubtful receivable and |
|
| through
the prudent use of collateral policy. The management is of the view that it
is not exposed to |
|
| significant
concentration of credit risk as its financial assets are adequately
diversified in organizations |
|
| of
sound financial standing covering various industrial sectors and segments. |
|
|
| 29
FAIR VALUE OF FINANCIAL INSTRUMENTS |
|
| The
carrying value of financial assets and liabilities approximate their fair
values as reflected in the |
|
| financial
statements except those stated as long term quoted investments referred to in
note 12. |
|
|
| 30 GENERAL |
|
|
| (i)
Previous year's figures have been re-arranged wherever necessary for the
purpose of comparison. |
|
|
|
|
| (ii)
Figures have been rounded off to the nearest rupees. |
|
|
|
(NADEEM H. SHAIKH) |
|
(SYED ZAHID HASAN) |
|
|
CHIEF EXECUTIVE |
|
CHAIRMAN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
