| AKD Securities & Safe Deposit Co. Ltd |
|
|
|
|
|
|
| (Formerly
Security Safe Deposit Company Ltd) |
|
| (Annual
Report 1997) |
|
|
| CONTENTS |
|
|
| Company
Information |
|
|
|
| Notice
of Meeting |
|
|
|
| Directors' Report |
|
|
|
| Auditors'
Report |
|
|
|
| Balance Sheet |
|
|
|
| Profit & Loss Account |
|
|
|
| Cash
Flow Statement |
|
|
|
| Notes
to the Accounts |
|
|
|
| Pattern
of Shareholding |
|
|
|
|
|
| COMPANY
INFORMATION |
|
| Board
of Directors |
|
| Mr.
Aqeel A. Karim Dhedhi |
|
| (Chairman) |
|
| Mr.
Munir Muhammad Ladha |
|
| (Chief
Executive) |
|
| Mr.
Wusooq Khaleeli |
|
| Mr.
Khalid Nazir |
|
| Mr.
Iqbal A. Karim |
|
| Mr.
Mian Nazir Ahmed |
|
| Mr.
Haji A. Karim Haji Abdul Rehman Dhedhi |
|
|
| Company
Secretary |
|
| Mr.
Ilyas Haji Ahmed |
|
|
| Auditors |
|
| Hyder
Bhimji & Co. |
|
| Chartered
Accountants |
|
|
| Bankers |
|
| Allied
Bank of Pakistan |
|
| Muslim
Commercial Bank Ltd. |
|
| Prime
Commercial Bank Ltd. |
|
| Rupali
Bank Ltd. |
|
| United
Bank Ltd. |
|
| Union
Bank Ltd. |
|
|
| Legal
Advisors |
|
| Bawaney
& Partners |
|
|
| Corporate
Advisors |
|
| Haroon
Zakaria & Co. |
|
| Chartered
Accountants |
|
| Room
No.211, Progressive Plaza |
|
| Beumount
Road, |
|
| Karachi. |
|
|
| Registered
Office |
|
| 611
Clifton Centre, Karachi-75600 |
|
| Tel:
(92-21) 5863801 (10 lines) |
|
| Fax:
(92-21) 5872206 |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
| Notice
is hereby given that the Sixty Second Annual General Meeting of the
Shareholders of the Company will be |
|
| held
at the Registered Office of the Company at 611 Clifton Centre, Clifton,
Karachi, on Tuesday, December 3 I, 1997 |
| at
9:00 a.m. to transact the following business:- |
|
|
| 1.
To confirm the minutes of the Extra Ordinary Meeting held on November 3,
1997. |
|
| 2.
To receive and adopt the Annual Accounts for the year ended June 30, 1997
together with Directors and |
|
| Auditors
Report thereon. |
|
| 3.
To appoint auditors and to fix their remuneration. |
|
| 4.
To transact any other business with the permission of the chair. |
|
|
| By
Order of Board |
|
|
| Place:
Karachi |
|
| Dated:
December 8, 1997 |
|
Chief Executive. |
|
|
| NOTES: |
|
| 1.
The Share Transfer books of the Company will remain closed from December 20,
1997 to December 30, 1997 |
|
| (both
days inclusive). |
|
|
| 2.
A member entitled to attend and vote at this meeting may appoint a proxy. A
proxy form must be received |
|
| at
the Registered |
|
| Office
of the Company duly stamped, signed and witnessed not less than 48 hours
before the meeting. |
|
|
| 3.
Members are requested to notify the Company of any change in their addresses. |
|
|
|
| DIRECTORS
REPORT |
|
| Your
Directors take pleasure in presenting the Annual Report together with the
audited accounts for the year ended |
|
| June
30, 1997. |
|
|
| The
financial results are as follows:- |
|
|
| Profit
for the Year before Taxation |
|
Rs. 573,536/- |
|
| Provision
for Taxation |
|
Rs. 200,958/- |
|
|
| Net
Profit after Taxation |
|
Rs. 372,578/- |
|
| Unappropriated
Profit brought forward |
|
Rs. 104,333/- |
|
| Unappropriated
Profit |
|
Rs. 476,911/- |
|
|
| During
the current year the Company generated a Capital Gain of Rs. 379,959/- as
against Rs. 1,637,531/- generated |
|
| in
the previous year due to bearish condition of the Stock Exchange. However,
the investment portfolio of the |
|
| Company
at the close of the year is showing a gain of RS. 144,919/- as against a loss
of Rs. 6,994/- last year. In view |
| of
the lower profits, the Directors of the Company have decided to omit the
Dividend for the year 1997. |
|
|
| Auditors |
|
| The
present auditors Messrs. Hyder Bhimji & Co., Chartered Accountants,
retire and being eligible offer themselves |
|
| for
re-appointment. |
|
|
| Pattern
of Shareholding |
|
| The
statement of pattern of shareholding of the Company as at June 30, 1997 is
annexed with the Balance Sheet. |
|
|
| Acknowledgement |
|
| The
Directors would like to thank the Staff and Officers of the Company for their
hard work and are confident of their |
| continued
whole hearted support for better results during the next year. |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| We
have audited the annexed Balance Sheet of AKD SECURITIES AND SAFE DEPOSIT CO.
LIMITED (Formerly |
|
| Security
Safe Deposit Company Limited) as at June 30, 1997 and the related Profit and
Loss Account and Cash Flow |
|
| Statement
together with the Notes forming part thereof for the year then ended and we
state that we have obtained |
|
| all
the information and explanations which to the best of our knowledge and
belief were necessary for the purpose |
|
| of
our audit and after due verification thereof, we report that: |
|
|
| (a)
in our opinion, proper books of accounts have been kept by the company as
required by the Companies |
|
| Ordinance,
1984; |
|
|
| (b)
in our opinion: |
|
|
| i.
The Balance Sheet and Profit & Loss Account together with the Notes
thereon have been drawn |
|
| up
in conformity with the Companies Ordinance, 1984 and are in agreement with
the books of |
|
| accounts
and are in accordance with the 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 expenditure incurred during the
year were in |
|
| accordance
with the objects of the Company; |
|
|
| (c)
in our opinion and to the best of our information and according to the
explanations given to us the |
|
| Balance
Sheet, Profit |
|
| and
Loss Account and Cash Flow Statement together with the notes forming part
thereof' given 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 affair as at June 30, 1997,
and of the Profit and Cash Flow |
|
| for
the year then ended; and |
|
|
| (d)
in our opinion zakat deductible at source under the Zakat and Ushr Ordinance,
1980 was deducted by the |
|
| Company
and deposited in the Central Zakat Fund established under Section 7 of that
ordinance. |
|
|
|
HYDER BHIMJI & CO. |
|
|
CHARTERED ACCOUNTANTS |
|
|
| Associated
with |
|
| Reeves,
Neylan and Latham, Crossley & Davis, |
|
| Chartered
Accountants, United Kindgom |
|
| KARACHI:
December 8, 1997 |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1997 |
|
|
|
|
30-6-1997 |
30-6-1996 |
|
|
NOTE |
RUPEES |
RUPEES |
|
| CAPITAL
AND RESERVES |
|
|
| Share
Capital: |
|
| Authorised:
10,000,000 |
|
| (1996:
10,000,000) |
|
| shares
of Rs. 10/- each |
|
100,000,000 |
100,000,000 |
|
|
=========== |
=========== |
|
| Issued,
Subscribed & Paid-up |
|
| Capital |
|
3 |
1,488,443 |
1,488,443 |
|
| Unappropriated
Profit |
|
476,911 |
104,333 |
|
|
----------- |
----------- |
|
|
1,965,354 |
1,592,776 |
|
| CURRENT
LIABILITIES |
|
|
| Accrued
Liabilities |
|
4 |
917,066 |
909,146 |
|
| Deposit
- Key Deposit Lockers |
|
36,290 |
36,290 |
|
| Provision
for Taxation |
|
200,958 |
498,194 |
|
| Unclaimed
Dividend |
|
385,834 |
57,238 |
|
| Proposed
Dividend |
|
-- |
1487563 |
|
|
----------- |
----------- |
|
|
1,540,148 |
1,649,431 |
|
| Contingencies |
|
5 |
-- |
-- |
|
|
----------- |
----------- |
|
|
3,505,502 |
3,242,207 |
|
|
=========== |
=========== |
|
| TANGIBLE
FIXED ASSETS |
|
| Operating
Fixed Assets |
|
6 |
611,248 |
479,930 |
|
| SECURITY
DEPOSITS |
|
|
611,813 |
519,213 |
|
| CURRENT
ASSETS |
|
|
|
| Trade Debtors |
|
7 |
313,360 |
300,000 |
|
| Advances
and Prepayments |
|
8 |
330,284 |
177,874 |
|
| Short
Term Investments |
|
9 |
825,924 |
1,351,246 |
|
| Advance
Income Tax |
|
|
33,252 |
38,887 |
|
| Cash
& Bank Balances |
|
10 |
779,621 |
375,057 |
|
|
|
----------- |
----------- |
|
|
2,282,441 |
2,243,064 |
|
|
----------- |
----------- |
|
|
3,505,502 |
3,242,207 |
|
|
=========== |
=========== |
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE |
|
| YEAR
ENDED JUNE 30, 1997 |
|
|
30-6-1997 |
30-6-1996 |
|
|
NOTE |
Rupees |
Rupees |
|
|
|
| Operating
Revenue |
|
11 |
16,805,268 |
l 1,694,160 |
|
| Capital
Gain on Investment (Net) |
|
12 |
379,959 |
1,637,531 |
|
|
|
----------- |
----------- |
|
|
|
17,185,227 |
13,331,691 |
|
| Operating
Expenses |
|
13 |
(16,622,827) |
(10,285,177) |
|
|
|
----------- |
----------- |
|
| Operating
Profit before taxation |
|
562,400 |
3,046,514 |
|
| Other Income |
|
11,136 |
-- |
|
|
| Provision
for Taxation - Current |
|
(83,602) |
(498,194) |
|
|
- Prior |
|
(117,356) |
334 |
|
|
----------- |
----------- |
|
|
(200,958) |
(497.860) |
|
|
----------- |
----------- |
|
| Profit
after taxation. |
|
372,578 |
2,548,654 |
|
| Unappropriated
Profit/(Loss) brought forward |
|
104,333 |
(1,998,632) |
|
|
----------- |
----------- |
|
|
476,911 |
550,022 |
|
| Appropriations: |
|
| Interim
Dividend @ 20% |
|
- |
(297,126) |
|
| Proposed
Final Dividend @ 10% |
|
- |
(148,563) |
|
|
----------- |
----------- |
|
|
- |
(445,689) |
|
|
----------- |
----------- |
|
| Un
appropriated Profit carried to the Balance Sheet |
|
476,911 |
104,333 |
|
|
=========== |
=========== |
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
| Karachi:
December 8, 1997 |
|
Munir M. Ladha |
Mian Nazir Ahmed |
|
|
Chief Executive |
Director |
|
|
|
| CASH
FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 1997 |
|
|
|
|
30-6-1997 |
30-6-1996 |
|
|
RUPEES |
RUPEES |
|
| Cash
from Operating Activities |
|
|
| Profit
before Taxation |
|
573,536 |
3,046,514 |
|
| Adjustment
for: |
|
|
|
| Depreciation |
|
67,917 |
53,325 |
|
| Profit
before working capital changes |
|
641,453 |
3,099,839 |
|
| Changes
in working capital :- |
|
|
|
| Increase/(Decrease)
in Current Assets: |
|
|
|
| Trade Debtors |
|
(13,360) |
(300,000) |
|
| Advances
and Prepayments |
|
(152,410) |
(177,874) |
|
| Increase/(Decrease)
in Current Liabilities: |
|
|
|
| Accrued
Liabilities |
|
7,920 |
440,311 |
|
|
----------- |
----------- |
|
|
(157,850) |
(37,563) |
|
|
----------- |
----------- |
|
| Cash
generated from operations |
|
483,603 |
3,062,276 |
|
| Taxes Paid |
|
(492,559) |
(38,887) |
|
| Long
Term Deposits |
|
(92,600) |
( 518,913) |
|
|
----------- |
----------- |
|
|
(585,159) |
(557,800) |
|
|
----------- |
----------- |
|
| Net
Cash Generated from Operating activities |
|
(101,556) |
2,504,476 |
|
|
| Cash
(Outflow)/Inflow from Investing Activities |
|
| Capital
Expenditure |
|
(199,235) |
(533,255) |
|
| Investment
Acquired |
|
525,322 |
-1,303,104 |
|
|
----------- |
----------- |
|
| Net
cash inflow/(outflow) from investing activities |
|
326,087 |
(1,836,359) |
|
|
----------- |
----------- |
|
|
224,531 |
668,117 |
|
| Cash
(Outflow)/inflow from Financing Activities |
|
| Payment
of Dividend |
|
180,033 |
(297,126) |
|
| Net
increase in cash and cash equivalent |
|
404,564 |
370,991 |
|
| Cash
& Cash Equivalents at the beginning of the year |
375,057 |
4,066 |
|
|
----------- |
----------- |
|
| Cash
& Cash Equivalents at the end of the year |
|
779,621 |
375,057 |
|
|
=========== |
=========== |
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE |
|
| YEAR
ENDED JUNE 30,1997 |
|
|
| 1.
THE COMPANY AND ITS BUSINESS: |
|
| The
company was incorporated as a Public Limited Company in the year 1936 and its
shares are quoted on |
|
| the
Karachi Stock Exchange. The Company's Principal activity is Ieasing/hiring
out of safe deposit lockers. |
|
|
| 2.
ACCOUNTING POLICIES: |
|
| 2.1
Accounting Policies: |
|
| The
accounts of the company are prepared under the historical cost convention. |
|
|
| 2.2
Fixed Assets: |
|
| i.
Fixed assets are stated at cost less accumulated depreciation. |
|
| ii.
Full year's depreciation is charged on the assets acquired during the year,
whereas, no |
|
| depreciation
is charged in the year of disposal. |
|
| iii.
Depreciation is charged on assets by reducing balance method. |
|
| iv.
Normal repairs and maintenance are charged to income as and when incurred. |
|
|
| 2.3
Short Term Investments: |
|
| Investment
in quoted shares is stated at cost. |
|
|
| 2.4
Trade Debtors: |
|
| These
are stated net of provision for doubtful debts. Full provision is made
against debts |
|
| considered
doubtful. |
|
|
| 2.5
Revenue Recognition: |
|
| a.
Realised gains on investment. |
|
| Capital
gains or losses on sale of investments are taken to income in the period in
which they |
|
| arise.' |
|
| b,
Dividend income is recognised at the time of book closure of the company
declaring the |
|
| dividend. |
|
| c.
Consultancy and advisory fee are recognised as and when services are
provided. |
|
| d.
Hiring income of lockers is recognised as and when lockers services are
provided. |
|
|
| 2.7 Taxation: |
|
| The
charge for current taxation is based on taxable income, if any, at the
current rate of taxation |
|
| after
considering admissible tax credits and rebates, if any. The Company accounts
for deferred |
|
| taxation
based on material timing differences using the liability method, but does not
account for |
|
| any
net deferred tax. |
|
|
1997 |
1997 |
|
|
Rupees |
Rupees |
|
|
| 3.
Share Capital: |
|
| Issued,
Subscribed & Paid-up |
|
| 49,521
Ordinary shares of Rs. 10/- each |
|
| fully
paid in cash. |
|
495,210 |
495,210 |
|
|
| 99.042
Ordinary shares of Rs. 10/- each |
|
| issued
as fully paid Bonus shares. |
|
990,420 |
990,420 |
|
|
| 479
Ordinary shares of Rs. 10/- each |
|
| forfeited. |
|
2,813 |
2,813 |
|
|
----------- |
----------- |
|
|
1,488,443 |
1,488,443 |
|
|
=========== |
=========== |
|
| 4.
Accrued Liabilities: |
|
| Accrued
Liabilities |
|
16,585 |
16,585 |
|
| Accrued
Expenses |
|
450,342 |
405,466 |
|
| Income
Tax on Staff Salaries |
|
6,889 |
12,896 |
|
| Deduction
of Income Tax/Supplier |
|
3,250 |
3,561 |
|
| Zakat Payable |
|
-- |
30,638 |
|
| Kohinoor
Trading Co.(Pvt) Limited |
|
440,000 |
440,000 |
|
|
----------- |
----------- |
|
|
917,066 |
909,146 |
|
|
=========== |
=========== |
|
| 5.
Contingencies: |
|
| Disputed
liability in respect of Capital Gain tax not acknowledged by the company
estimated at |
|
| Rs.88,000/- |
|
|
| 6.
Fixed Assets |
|
|
| COST |
|
RATE |
|
DEPRECIATION |
|
|
| Particulars |
|
As at |
Additions |
As at |
% |
As at |
For the |
As at |
Value as on |
|
01-07-1996 |
|
30-06-97 |
|
01-07-96 |
year |
30-06-97 |
30-06-1997 |
|
|
|
| Furniture |
|
137,305 |
99,085 |
236,390 |
10 |
13,730 |
22,266 |
35,996 |
200,394 |
| Office
Equipment |
262,200 |
80,150 |
342,350 |
10 |
26,220 |
31,613 |
57,833 |
284,517 |
| Computers |
|
101,250 |
20,000 |
121,250 |
10 |
10,125 |
11,113 |
21,238 |
100,012 |
| Lockers |
|
32,500 |
-- |
32,500 |
10 |
3,250 |
2,925 |
6,175 |
26,325 |
| Total
Rs. 1997 |
533,255 |
199,235 |
732,490 |
|
53,325 |
67,917 |
121,242 |
611,248 |
| Total
Rs. 1996 |
-- |
533,255 |
533,255 |
|
-- |
53,325 |
53,325 |
479,930 |
|
----------- |
----------- |
----------- |
----------- |
----------- |
----------- |
----------- |
----------- |
|
|
|
1997 |
1996 |
|
| 7.
Trade Debtors - Considered Good |
|
Rupees: |
Rupees: |
|
|
| Receivable
against consultancy fee |
|
300,000 |
300,000 |
|
| Reimbursable
Consultancy Expenses |
|
13,360 |
-- |
|
|
----------- |
----------- |
|
|
313,360 |
300,000 |
|
|
=========== |
=========== |
|
| 8.
Advances, Deposits & Others Receivables |
|
| Staff |
|
220,000 |
3,792 |
|
| Others |
|
110,284 |
174,082 |
|
|
----------- |
----------- |
|
|
330,284 |
177,874 |
|
|
=========== |
=========== |
|
|
Short Term Investment: |
|
| 1996 |
1997 |
|
| No. of |
No. of |
|
1997 |
1996 |
|
| Shares |
Shares |
|
Rupees: |
Rupees: |
|
|
Mutual fund |
|
| 200 |
-- |
ICP SEMF |
|
-- |
12,800 |
|
|
Banks & Investment
Companies |
|
| 110 |
-- |
Askari Commercial Bank |
|
-- |
3,200 |
|
| 35 |
-- |
Crescent Investment Bank |
|
-- |
735 |
|
| 120 |
-- |
Muslim Commercial Bank |
|
-- |
3,915 |
|
| 63,250 |
-- |
Prime Commercial Bank |
|
-- |
1,095,278 |
|
| 33 |
33 |
PICIC |
|
459 |
454 |
|
|
Insurance |
|
| 122 |
-- |
Adamjee Insurance Co.
Ltd. |
-- |
11,266 |
|
|
Textile |
|
| 3,000 |
-- |
Gadoon Textile Mills Ltd. |
-- |
116,951 |
|
|
Textile Composite |
|
| 49 |
-- |
(Colony) Sarhad Textile
Mills |
-- |
235 |
|
| 540 |
554 |
Crescent Textile Mills
Ltd. |
11,076 |
11,572 |
|
|
54 |
Kohinoor Textile Mills
Ltd. |
464 |
-- |
|
|
Jute |
|
| 119 |
119 |
Pakistan Jute &
Synth. Ltd. |
629 |
629 |
|
|
Cement |
|
| 100 |
-- |
D.G. Khan Cement Factory
Ltd. |
-- |
2,150 |
|
| 312 |
-- |
Maple Leaf Cement Factory
Ltd. |
-- |
5,928 |
|
| 132 |
-- |
Pakland Cement Ltd. |
|
-- |
2,212 |
|
|
Fuel & Energy |
|
| 17 |
-- |
K.E.S.C. |
|
-- |
170 |
|
| 275 |
-- |
Sui Southern Gas. Co.
Ltd. |
-- |
12,281 |
|
| -- |
49 |
P.S.O. |
|
13,496 |
-- |
|
|
Auto & Allied |
|
| 75 |
-- |
Baluchistan Wheels Ltd. |
|
-- |
525 |
|
|
Food & Allied |
|
| 100 |
-- |
Lever Brothers (Pak) Ltd. |
-- |
70,575 |
|
|
Miscellaneous |
|
| 37 |
-- |
Zulfiqar Industries Ltd. |
|
-- |
370 |
|
|
31,000 |
P.T.C. |
|
799,800 |
-- |
|
|
|
|
----------- |
----------- |
|
|
825,924 |
1,351,246 |
|
|
=========== |
=========== |
|
| The
aggregate Market value of listed shares as on June 30, 1997 was Rs. 970,843/-
( 1996: Rs. 1,344, 252/- ) |
|
|
|
Investment in Unquoted |
|
|
Companies: |
|
| 281 |
281 |
Kohinoor Cotton Mills |
|
3,380 |
3,380 |
|
|
Less: Provision for
diminu- |
|
|
|
tion in value of
investment |
|
|
|
due to liquidation
process |
|
|
|
of Kohinoor Cotton Mills |
|
|
|
|
Ltd. Balance Sheet as at |
|
|
|
|
the date of liquidation
is |
|
|
|
not available for
calcula- |
|
|
|
ting the break-up value
of |
|
|
|
investment |
|
(3,380) |
(3,380) |
|
|
----------- |
----------- |
|
|
-- |
-- |
|
|
=========== |
=========== |
|
| 10.
Cash & Bank Balances: |
|
| Cash in Hand |
|
9,858 |
229,200 |
|
| Cash at Bank |
|
| -
Current Account |
|
769,763 |
145,857 |
|
|
----------- |
----------- |
|
|
779,621 |
375,057 |
|
|
=========== |
=========== |
|
| 11.
Operating Revenue: |
|
| Consultancy
Fee |
|
16,400,000 |
11,550,000 |
