| FIRST CAPITAL SECURITIES CORPORATION LIMITED |
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|
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| ANNUAL
REPORT 1996 |
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| FIRST
CAPITAL SECURITIES CORPORATION LIMITED |
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| FIRST
CAPITAL INVESTMENTS (PRIVATE) LIMITED |
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| FIRST
CAPITAL H. G. ASIA (PRIVATE) LIMITED |
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| WORLD
CALL LIMITED |
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|
| CONTENTS |
|
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| First
Capital Securities Corporation Limited |
|
| (An
alliance of local & foreign expertise) |
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|
| Financial
Statements of First Capital Securities Corporation Limited |
|
|
| Company
information |
|
|
| Notice
of Annual General Meeting |
|
| Chairman's
Review |
|
| Auditors'
Report |
|
|
| Annual
Accounts |
|
| Pattern
of Share holding of First Capital Securities Corporation Limited |
|
| Statement
and report under sub section (1) (e), (f) & (g) of section 237 of
Companies |
|
| Ordinance
1984 |
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|
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| Financial
Statements of First Capital Investments (Private) Limited |
|
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| Auditors'
Report |
|
| Annual
Accounts |
|
|
| Financial
Statements of First Capital H G Asia (Private) Limited |
|
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| Auditors'
Report |
|
| Annual
Accounts |
|
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| Financial
Statements of World Call Limited |
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| Auditors'
Report |
|
| Annual
Accounts |
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| FIRST
CAPITAL SECURITIES CORPORATION LIMITED |
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| (An
Alliance of Local and Foreign Expertise) |
|
|
| First
Capital Securities Corporation Limited (FCSC), the largest securities house
in Pakistan with a |
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| paid-up
capital of Rs. 194 million, was formed by a group of reputable foreign and
local sponsors in |
|
| 1994.
HG Asia, a leading research and brokerage house in Asia and a subsidiary of
ABN AMRO Bank |
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| has
an equity stake of 40% in FCSC. |
|
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| Local
sponsors include institutions such as Muslim Commercial Bank Limited, First
Leasing |
|
| Corporation
Limited, Saudi Pak Industrial & Agricultural Investment Co. (Private)
Limited, A1-Faysal |
|
| Investment
Bank Limited, Allied Bank Limited, A1-Towfeek Investment Bank Limited and
Capital |
|
| Market
Consultants (Private) Limited. |
|
|
| FCSC
has entered into collaboration with ABN AMRO HG Asia, the Asian merchant
banking arm of |
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| the
ABN AMRO group, to pursue corporate finance opportunities in Pakistan. The
strategy of forming |
|
| collaborations
with renowned international financial institutions has positioned FCSC to
effectively |
|
| meet
the needs of local and foreign clients. FCSC can provide its domestic private
and public sector |
|
| clients
access to international markets. At the same time, FCSC's international
clients continue to |
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| benefit
from the company's expertise and experience in the Pakistani market. |
|
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| MAJOR
INSTITUTIONAL SHAREHOLDERS |
|
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| HG
Asia Limited (A member of ABN AMRO Hoare Govett group) |
|
| HG
Asia (formerly Hoare Govett) is a full service brokerage house specialising
in Asian equity markets. |
|
| HG
Asia distribution network includes sales offices in London, Paris, New York
and major Asian |
|
| capital
markets. |
|
|
| John
Govett & Co. Limited |
|
| John
Govett & Co. is an international asset management company with over USS
8.5 billion under |
|
| management. |
|
|
| Muslim
Commercial Bank Limited (MCB) |
|
| MCB
is Pakistan's largest commercial bank in the private sector with an asset
base of Rs. 120 billion |
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| with
1321 branches. |
|
|
| First
Leasing Corporation Limited (FLCL) |
|
| FLCL
was incorporated in 1991 as a public limited company with International
Finance Corporation |
|
| sponsorship. |
|
|
| Saudi
Pak Industrial & Agricultural Investment Co. (Private) Limited |
|
| Saudi
Pak is a joint venture between the governments of Saudi Arabia and Pakistan.
It promotes |
|
| industrial
development in Pakistan through equity and debt financing. |
|
|
| Al-
Faysal Investment Bank Limited (AFIBL) |
|
| AFIBL
is owned by the Geneva-based group Darul Mal A1 Islami (DMI) with an asset
base of Rs. 10 |
|
| billion. |
|
|
| Allied
Bank Limited |
|
| ABL
is the second largest bank in the private sector with a branch network of 750
locally and |
|
| internationally. |
|
|
| AI-Towfeek
Investment Bank Limited |
|
| A
member of the Dallah A1-Baraka group whose banking and finance operations
extend to 33 countries |
|
| with
cumulative assets of over USS 5 billion. |
|
|
| Capital
Market Consultants (CMC) |
|
| CMC
is an investment advisory company specialising in portfolio management. |
|
|
| PRIMARY
ACTIVITIES
~~ |
|
|
|
| · Corporate Finance |
|
| FCSC's
collaboration with ABN AMRO HG Asia (AAHG) covers opportunities for all
equity |
|
| mandates
originating in Pakistan including initial public offerings or private
placements, |
|
| privatisation,
mergers and acquisitions, investments, divestitures, joint ventures with
Government |
|
| of
Pakistan owned companies and corporate restructuring for both private and
public sector clients. |
|
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| For
all equity capital market transactions requiring an international private or
public placement, |
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| there
is a co-operation agreement between ABN AMRO and NM Rothschild. These
transactions |
|
| would
be handled under the name of ABN AMRO Rothschild. This agreement also
encompasses |
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| all
Pakistan equity capital market transactions and as such FCSC will undertake
these transactions |
|
| jointly
with AAHG and Rothschild. |
|
|
| During
the limited time of its existence, FCSC's corporate finance department has
established a |
|
| strong
presence by providing advisory services to high quality companies like Sui
Northern Gas |
|
| Pipelines
Ltd., National Highway Authority, National Bank of Pakistan, etc. It is also
active in the |
|
| growing
fixed income market and is co-advising National Bank of Pakistan for issuing
a Rs. 1.0 |
|
| billion
bond. Focus in the fixed income market is towards the primary market
involving pre-IPO |
|
| placements. |
|
|
| FCSC
has been successful in placement of over USS 20 million of primary equity.
Access to |
|
| international
network coupled with strong domestic presence gives it a competitive
advantage 'in |
|
| successful
placements to foreign and local institutions. The company's performance in
managing |
|
| lead
issues to date is as follows: |
|
|
| Issue,
Lead Managed by FCSC (As on Sept. 30, 1996) |
|
|
| Sector |
|
Share Capital |
IPO Size |
Times Subscribed (x) |
|
|
|
(Rs. Million |
(Rs. million) |
|
| Insurance |
|
190 |
93.70 |
12 |
|
| Leasing |
|
250 |
112.50 |
1.04 |
|
| Mutual Funds |
|
150 |
68.60 |
1.10 |
|
| Fuel
& Energy |
163 |
98.00 |
4.00 |
|
| Miscellaneous |
271.60 |
137.80 |
5.74 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
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| Total |
|
1,024.60 |
510.60 |
|
| ---------- |
---------- |
---------- |
---------- |
---------- |
|
|
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| · Direct Investments |
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| FCSC's
direct investment business relating to managing its own portfolio complements
its advisory |
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| activities
regarding companies' equity and debt offerings. FCSC's direct investment
strategy is to |
|
| realise
capital gains by making short to medium-term investments in companies at, or
prior to, their |
|
| initial
public offerings. |
|
|
| · Brokerage |
|
|
|
| Equity |
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| FCSC
provides a wide range of capital market services to local and foreign
institutional clients |
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| such
as mutual funds and trusts, insurance companies, fired managers, and select
individual |
|
| accounts.
Membership of the Karachi and Lahore Stock Exchanges makes it possible to
provide |
|
| these
services on a country-wide basis. FCSC has invested heavily in technology and
systems to |
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| ensure
that clients will be provided with research and economic analysis
illustrating latest market |
|
| trends. |
|
|
| Fixed
Income Securities |
|
| An
independent money market desk is actively involved as a broker in the inter
bank market. FCSC |
|
| also
trades public debt instruments issued by the Government of Pakistan -
T-Bills, short term |
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| Federal
Bonds, and Federal Investment Bonds. The department provides a full range of
services |
|
| such
as arrangement/placement of funds under repurchase and reverse repurchase
agreements,. |
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| security
lending and borrowing, arrangement of funds under call & dollar/rupee
swaps, and clean |
|
| placement
of funds in certificates of investment & fund management schemes. |
|
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| The
money market desk is licensed by Fund Managers Association as an approved
broker for the |
|
| players
in the money market including foreign banks, government banks, private
commercial and |
|
| investment
banks, development finance institutions, non-bank financial institutions,
leasing |
|
| companies,
big corporate, and pension funds in Karachi, Lahore, and Islamabad. |
|
|
| Fixed
income securities market, still in its infancy but with tremendous growth
potential, is also |
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| handled
by the money market desk. The money market desk's active role in the
secondary market |
|
| is
an extension of corporate finance department's focus in the primary market. |
|
|
| EMPLOYEES:
The Key to Success |
|
|
| The
achievements oŁ FCSC and its employees during its initial two years of
operations have been |
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| commendable.
A cornerstone of FCSC's success has been the quality of its human resource
working in |
|
| a
corporate environment of teamwork and partnership, ethics and integrity,
innovation and leadership, |
|
| international
focus and ever changing business goals. FCSC's human resource system oŁ
compensation, |
|
| organisation,
and employee development aims to fulfil the aspirations oŁ its employees.
Formal training |
|
| programs
are an important aspect of employee development. Employees are encouraged to
enrol in |
|
| various
training programs to improve their technical, functional and managerial
skills. |
|
|
| FCSC
recruits graduates from prestigious foreign and local universities. Its team
of professionals |
|
| includes
Chartered Accountants, MBAs and post-graduates in finance and economics. They
bring with |
|
| them
rich experience in investment banking, economics and financial analysis. FCSC
recognises the |
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| quality
of its employees as its biggest asset and the best long term investment. It
places great emphasis |
|
| on
hiring and maintaining high quality personnel which has been a primary
ingredient of its success. |
|
|
| GROUP
COMPANIES |
|
|
|
| First
Capital Securities |
|
| Corporation
Limited |
|
|
| First
Capital Investments |
First Capital H. G. Asia |
World Call Limited |
|
| (Private)
Limited |
(Private) Limited |
|
|
| First
Capital Mutual |
|
| Fund Limited |
|
|
| First
Capital Investments (Private) Limited (FCIL) |
|
| The
company has been registered as Investment Advisors under Investment Companies
and Investment |
|
| Advisor's
rules 1971 and are Investment Advisors to First Capital Mutual Fund Limited |
|
|
| First
Capital H. G. Asia (Private) Limited (FCHG) |
|
| FCSC
and HG Asia have formed a jointly owned company, First Capital HG Asia
(Private) Ltd. which |
|
| carries
out investment analysis of the domestic financial markets. FCSC contributes
the local market |
|
| expertise
while I-IG Asia furnishes the latest technology and training facilities for
the personnel of the |
|
| company.
Furthermore, association with HG Asia provides an international network to
ensure global |
|
| distribution
of information. |
|
|
| First
Capital HG Asia maintains a constant database of more than 700 companies
listed on the Karachi |
|
| Stock
Exchange in terms of price, volume, growth rates, earnings per share, payout
performance, price |
|
| earnings
ratio and return on equity etc. During last year, First Capital HG Asia
published reports on |
|
| sectors
including electrical cables, tobacco, paper & board, synthetic &
rayon, auto & allied, leasing, |
|
| cement,
fuel & energy, textile, telecom, food & allied, sugar & allied,
investment banks & companies, |
|
| insurance
and fertiliser. |
|
|
| World
Call Limited (WCL) |
|
| The
company is a unlisted public limited company with a main objective of
implementing, owing and |
|
| operating
a nation wide card operated phone network in Pakistan. The company has plans
to install at |
|
| least
1000 pay phones in the financial year 1997. World Call Limited intends to
install 5000 phones in a |
|
| period
of four years. |
|
|
| First
Capital Mutual Fund Limited (FCMF) |
|
| Mutual
funds act as a backbone for the development and sustenance of capital
markets. First Capital |
|
| Mutual
Fund was launched in March 1995, with a paid up capital of Rs. 150 million.
It is expected to |
|
| outperform
other mutual funds in the long run because majority of the investments were
made, at low |
|
| multiples,
in high growth infrastructure sectors such as fuel & energy, telecom,
etc. |
|
|
| FIRST
CAPITAL SECURITIES |
|
| CORPORATION
LIMITED |
|
|
| FINANCIAL
STATEMENTS |
|
|
| FOR
THE YEAR ENDED |
|
| 3O JUNE 1996 |
|
|
| FIRST
CAPITAL SECURITIES CORPORATION LIMITED |
|
| COMPANY
INFORMATION |
|
|
| Board
of Directors |
Mr. Salmaan Taseer, |
|
|
|
Chairman & CEO |
|
|
|
Mr. Tim Kilpatrick |
|
|
|
Mian Jehangir Elahi |
|
|
|
Mr. Abdul Waheed Alavi |
|
|
|
Mr. Bashir A. Sheikh |
|
|
|
Mr. Mohsin Mehdi |
|
|
|
Mr. Rashid Zahir |
|
|
|
Ms. Sara Taseer |
|
|
| Company
Secretary |
Mr. Zahid Zia |
|
|
|
|
| Auditors |
|
Ford, Rhodes, Robson,
Morrow |
|
|
|
Chartered Accountants |
|
|
|
Lahore. |
|
|
|
|
| Legal
Advisors |
M/s Chima & Ibrahim |
|
|
|
Advocates |
|
|
|
Lahore. |
|
|
|
|
| Bankers |
|
Muslim Commercial Bank
Ltd. |
|
|
|
Prime Commercial Bank
Ltd. |
|
|
|
Emirates Bank
International Ltd. |
|
|
|
Crescent Investment Bank
Ltd. |
|
|
|
ANZ Grindlays Bank Ltd. |
|
|
|
|
| Share
Department |
First Capital Securities
Corporation Limited |
|
|
|
Ground Floor, |
|
|
|
Sheikh Sultan Trust
Building No. 2 |
|
|
|
Beaumont Road, |
|
|
|
Karachi. |
|
|
| Registered
Office |
103 C II, Gulberg III |
|
|
|
Lahore. |
|
|
|
Phone Nos. (9242) 575
7591-94 |
|
|
|
Fax No. (9242) 575 7590 |
|
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that 3rd Annual General Meeting of First Capital Securities
Corporation Limited will be held at |
|
| 103-C/II,
Gulberg-III, Lahore, on Thursday, 27 February 1997 at 10:30 a.m. for
transacting the following business:- |
|
|
| Ordinary
Business: |
|
|
| 1.
To confirm the minutes of the 2nd Annual General Meeting held on 12 March
1996. |
|
| 2.
To receive, consider and adopt the Accounts of the Company for the year ended
June 30, 1996 together with |
|
| the
reports of Chairman and Auditor' s. |
|
| 3.
To appoint Auditors for the year ended 30 June 1997 and fix their
remuneration. |
|
| 4.
To approve final dividend at the rate of Rs.2/- per share (Rupee two per
share) inclusive of interim dividend |
|
| Re.
1/- per share (already paid) for the year ended 30 June 1996 as recommend by
Directors. |
|
|
| Special
Business: |
|
|
| To
Consider and if deem fit, pass the following resolution as Special Resolution
with or without |
|
| amendments
that, the Chief Executive be and is hereby authorized to undertake: |
|
| *
an investment in World Call Limited up to Rs.10 million (divided
intol,000,000 shares of Rs.10/- |
|
| each). |
|
|
| *
an investment in First Capital HG Asia (Private) Limited up to Rs.l.5 million
(divided into 150,000 |
|
| shares
of Rs. 10/- each). |
|
| and
dis-invest at appropriate times (if necessary). |
|
| 2.
Any other business with the permission of Chair. |
|
|
| Statement
u/s 208 of the Companies Ordinance 1984: |
|
|
| World
Call Limited. |
|
| The
Company was incorporated on 14 December 1995. The main objective of the
company is to design, development |
|
| and
implementation of telephone service, pay phone service, cellular phone
service, radio service and all associated |
|
| computer
and communication services subject to any permission as required under the
law. |
|
| First
Capital H G Asia (Private) Limited. |
|
| The
Company was incorporated on December 26, 1995. The main objective of the
company is to act as professional, |
|
| financial,
investment and technical consultants and advisors to individuals,
undertakings, companies, mutual funds, |
|
| financial
institutions and government corporations. |
|
|
| Notes: |
|
|
| 1.
The Memorandum and Articles of Association of World Call Limited and First
Capital H G Asia (Private) |
|
| Limited
have been kept at 103 C-II, Gulberg - III Lahore, a principal office of the
company and can be inspected |
|
| from
10:00 am to 1.00 p.m. on all working days up to 21 February 1997. |
|
|
|
|
| 2.
Share Transfer Books of the Company will remain closed from 21 February 1997
to 27 February 1997 (both days |
|
| inclusive). |
|
|
|
| 3.
A Member entitled to attend and vote at this meeting may appoint another
Member as his/her proxy to attend and |
|
| vote
on his/her behalf. Proxies, in order to be effective must be received by the
Company not less than 48 hours |
|
| before
the meeting. |
|
|
| 4.
Members are requested to notify any change in address immediately. |
|
|
| CHAIRMAN'S
REVIEW |
|
|
| It
gives me great pleasure to present to you third year's audited accounts of
First Capital Securities |
|
| Corporation
Limited (FCSC). FCSC is the largest securities house in Pakistan in terms of
paid-up capital |
|
| which
is owned by well reputed organisations; ABN AMRO H G Asia and John Govett;
besides prominent |
|
| local
institutional and individual sponsors. |
|
|
| FCSC
during the year has entered into a |
|
| Collaboration
Agreement with ABN |
|
| AMRO
HG Asia, the investment banking |
|
| arm
of ABN AMRO group, for financial |
|
| advisory
business in Pakistan. ABN |
|
| AMRO
is the sixth largest non Japanese |
|
| bank
in the world, with assets of about US |
|
| $
400 billion and funds under management |
|
| of
US $ 50 billion. It has been active in |
|
| Asia
since 1824, and now has 90 offices |
|
| throughout
the region. World-wide, it has |
|
| more
than 1700 branches in 67 countries, |
|
| employing
62,000 professionals. H.G. |
|
| Asia
group is one of the most highly |
|
| regarded
securities house specialising in |
|
| the
markets of Asia, where it has a |
|
| presence
since 1972. The group has |
|
| offices
in 15 countries and direct access to |
|
| 13
stock exchanges. |
|
|
|
| The
Collaboration Agreement will complement the strength of FCSC in the area of
financial advisory and |
|
| distribution
owing to the experience and international network of ABN AMRO HG Asia |
|
|
| During
the year 1995-96 rising inflation, fiscal deficits and falling exchange rate
against US Dollar resulted |
|
| in
a sharp down fall of the stock market in Pakistan. Consequently, foreign
investment, both direct and |
|
| portfolio,
reduced drastically during the year making it virtually impossible for new
projects in the country |
|
| to
raise funds from the stock markets. The year has been particularly difficult
on corporate finance advisory |
|
| business
which is dependent on the health of the stock market. |
|
|
| The
privatisation program being undertaken by the Government also showed slow
progress and only a |
|
| limited
number of expressions of interest for financial advisory were invited during
the year. Moreover, the |
|
| decisions
to award mandates to selected / short listed financial institutions are still
pending. The recent |
|
| change
of government has added to the uncertainty prevailing in the country. |
|
|
| Asiamoney
in its October 1996 issue has ranked FCSC's back office operations and
overall |
|
| performance,
i.e., research, sales and back office performance together as number one and
third |
|
| respectively
in Asia Pacific Region. This ranking is based on survey of 450 international
fund |
|
| mangers.
The Asiamoney survey is widely accepted to be the most thoroughly researched
and |
|
| credible
poll on the performance of brokerage houses operating in Asian emerging
markets. |
|
|
| FINANCIAL
RESULTS |
|
|
| The
financial results of FCSC for the year ended 30 June 1996 are very
encouraging as the company has |
|
| earned
after tax profits of Rs. 42.65 million. This is after providing Rs. 5.70
million for diminution in the |
|
| value
of short term investments which in our opinion will be reversed in the
current year. The results for the |
|
| year
ended 30 June 1996 are summarised as follows: |
|
|
|
|
(Rs. in million) |
|
|
|
|
1996 |
1995 |
Increase/ |
|
|
|
|
(decrease) |
|
|
|
|
% |
|
| Operating revenue |
|
83.09 |
83.79 |
(0.84) |
|
|
| Operating
expenses |
|
(30.73) |
(21.74) |
41.33 |
|
|
| Operating
profit |
|
|
52.35 |
62.04 |
(15.61) |
|
|
| Financial
expenses |
|
|
(2.97) |
(1.08) |
174.33 |
|
|
| Net
operating profit |
|
49.38 |
60.96 |
(18.99) |
|
|
| Other
revenues |
|
|
1.56 |
4.01 |
(61.18) |
|
|
|
|
50.94 |
64.97 |
(21.60) |
|
|
| Provision
for diminution in the value of investments |
(5.70) |
0.00 |
100.00 |
|
|
| Net
profit before taxation |
|
|
45.24 |
64.97 |
(30.37) |
|
|
| Taxation |
|
|
(2.59) |
(4.80) |
(46.02) |
|
|
| Profit
after taxation |
|
42.65 |
60.17 |
(29.12) |
|
|
| Unappropriated
profit brought forward |
|
21.37 |
0.00 |
100.00 |
|
|
|
|
----------- |
----------- |
----------- |
|
|
|
|
64.02 |
60.17 |
6.40 |
|
|
|
========== |
========== |
========== |
|
|
| Appropriations |
|
| Interim dividend-
10% cash (1995: 20% inspecie) |
19.40 |
38.80 |
(50.00) |
|
| Final
dividend - 10% cash |
|
|
19.40 |
0.00 |
100.00 |
|
|
|
|
|
38.80 |
38.80 |
0.00 |
|
| Unappropriated
profit carried forward |
|
25.22 |
21.37 |
18.01 |
|
|
|
|
|
----------- |
----------- |
----------- |
|
|
|
|
|
64.02 |
60.17 |
6.40 |
|
|
========== |
========== |
========== |
|
|
|
|
| Despite
of adverse capital market conditions and uncertainty prevailing in the
market, F, CSC has managed |
|
| to
sustain its operating revenues which remained on Rs. 83.0 million level.
However, the increase of |
|
| 41.33%
in operating expenses is because the operating expense for the year ended 30
June 1995 represents |
|
| only
nine months, in fact the true increase in operating expenses on proportionate
basis works out to be |
|
| only
Rs. 1.74 million. It means we have succeeded to curtail our expense level if
we account for inflation. |
|
|
| Dividend |
|
|
| The
board has recommended to give cash dividend ~ Rs. 2/- per share, inclusive of
interim cash dividend |
|
| @
Re. 1/- per share (already paid) for the year ended 30 June 1996. |
|
|
| FUTURE
OUT LOOK |
|
|
| Despite
the prevailing adverse market conditions, the company has been able to win a
steady stream of |
|
| mandates
from both public and private sector institutions covering a wide variety of
advisory services. |
|
| Some
of our ongoing projects include: |
|
|
| Privatisation: |
|
| 1.
Joint Financial Advisors to Privatisation Commission, GOP for the
privatisation of Sui Northern Gas |
|
| Pipelines
Limited. |
|
| 2.
Among the three short listed financial advisors for the privatisation of a
Nationalised Commercial |
|
| Bank. |
|
|
|
| Debt: |
|
| 1.
Private Placement of Rs. 1.0 billion for public sector utility company. |
|
| 2.
Joint Advisors to National Bank of Pakistan for Rs 1.0 billion TFC Issue. |
|
|
| Equity: |
|
| 1.
Advisors to a captive power plant company for placement and public issue of
equity. |
|
| 2.
Advisors to telecom company for placement and public issue of equity worth
Rs226 million. |
|
|
| Advisory: |
|
| 1.
Advisors to a hydel independent power project. |
|
|
| Additionally,
there are number of projects for which we have received mandates but are
currently on hold |
|
| given
the uncertain political & economic conditions. We believe that the
imminent turnaround in the |
|
| economic
situation will lead to a re-activation of these mandates. |
|
|
| Capital
market operations |
|
|
| Revenue
from brokerage operations of the company has increased 125% over the last
year. We are |
|
| confident
to improve brokerage revenue in the coming year as not only our clientele
base has improved but |
|
| also
the market conditions are expected to improve in second half of the year. |
|
|
| BENEFITS
TO CHAIRMAN |
|
|
| Your
chairman has waived his performance bonus of Rs. 1.8 million as he did
earlier, i.e., he waived Rs. |
|
| 2.76
million for the year ended 30 June 1995. |
|
|
| AUDITORS |
|
|
| The
present auditors, M/s Ford, Rhodes, Robson, Morrow, Chartered Accountants,
being due for |
|
| retirement,
have offered themselves for reappointment for the year ended 30 June 1997. |
|
|
| I
, firmly believe that our impressive performance has been a result of devoted
efforts of the staff and |
|
| continued
support from our Valued clients. I am hopeful that they will continue to
support our endeavours |
|
| this
year and in future. |
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of First Capital Securities |
|
| Corporation
Limited as at June 30, 1996 and related Profit and Loss Account and |
|
| Statement
of Sources and Application of Funds together with the notes forming part |
|
| thereof,
for the year then ended and we state that we have obtained all the
information |
|
| and
explanations which to the best of our knowledge and belief were necessary for
the |
|
| purposes
of our audit and, after due verification thereof, we report that: |
|
|
| a)
in our opinion, proper books of account have been kept by the Company as |
|
| required
by the Companies Ordinance, 1984; |
|
|
|
|
| b)
in our opinion: |
|
|
| i)
the Balance Sheet and Profit and Loss Account together with the notes |
|
