| First Crescent Modaraba |
|
|
|
|
|
|
|
|
|
|
| (Annual
Report 1997) |
|
| Managed
By Crescent Business Management (Private) Limited |
|
|
| CONTENTS |
|
| Corporate
Information |
|
| Directors'
Report and Chief Executive's Review |
|
| Auditors'
Report to the Certificate Holders |
|
| Balance
Sheet |
|
| Profit
and Loss Account |
|
| Statement
of Changes in Financial Position |
|
| Notes
to the Accounts |
|
| Pattern
of Holding of Certificates |
|
| Investors'
Information |
|
|
|
|
| CORPORATE
INFORMATION |
|
| ALTAF
M. SALEEM |
|
| Chairman |
|
| MAHMOOD
AHMED |
|
| Chief
Executive |
|
|
|
| DIRECTORS |
|
| (in
alphabetical order) |
|
| Muhammad
Awais Qureshi |
|
| Rashid Ahmed |
|
| Zaheer
A. Shaikh |
|
|
|
| CORPORATE
SECRETARY |
|
| Rashid Sadiq |
|
|
| AUDITORS |
|
| Riaz
Ahmad and Company |
|
| Chartered
Accountants |
|
|
| LEGAl,
ADVISORS |
|
| Hassan
and Hassan Advocates |
|
|
| PRINCIPAL
OFFICE |
|
| 45-Shahrah-e-Quaid-e-Azam,
Lahore. |
|
| Phones:
(042) 7238336-7 |
|
| Fax:
92-42-7230504 |
|
| Telex:
44445 BANK PK |
|
|
| REGISTERED
OFFICE |
|
| 83-Babar
Block, New Garden Town, Lahore. |
|
| (042)
5839631,5881974-75 |
|
| Fax:
92-42-5881976 |
|
|
|
| DIRECTORS'
REPORT & CHIEF EXECUTIVE'S REVIEW |
|
| It
is a great pleasure to present to you the Sixth Annual Report of First
Crescent Modaraba (FCM) which covers the sixth |
|
| full
year of operations of the Modaraba. Before the review of operating results of
the Modaraba, it will be pertinent to have |
|
| a
brief review of the national economic scenario. |
|
| MACRO
ECONOMIC SCENARIO |
|
| During
the period in review, the rate of GDP growth of 3.1 percent was only slightly
above the population growth, |
|
| implying
virtually no improvement in per capita income. Large scale manufacturing
recorded a negative growth rate of |
|
| 1.4
percent while value added in agriculture increased at a pace of less than one
percent; major agricultural crops in fact |
|
| showed
a drop in output. Both investment and national savings declined as a
proportion of GDP. Exports fell by 2.7 |
|
| percent
and, notwithstanding a 5.0 percent contraction in imports, the current
account of balance of payments recorded a |
|
| deficit
of 6.5 percent of GDP. Besides the poor weather conditions and a below
expectation cotton crop, the economy has |
|
| suffered
from poor economic management and domestic political disturbances. |
|
|
| On
the other hand, the budget recorded a deficit of 6.2 percent of GDP, tax -
GDP ratio declined instead of increasing, total |
|
| debt
as percentage of GDP went up, and bank borrowings for budgetary support stood
at more than three times the original |
|
| target,
pushing up the domestic credit beyond the level envisaged in the credit plan.
High level of credit expansion, in the |
|
| context
of lower than the targeted rate of economic growth, led to widening of the
inflationary gap. |
|
|
| The
severe liquidity crunch pockets throughout the year had an unfavourable
effect on capital market and resulted in |
|
| further
bearish sentiments during the year, although subsequently, there has been a
significant improvement. The KSE 100 |
|
| Index
declined from 1703 points as on June 30, 1996 to 1566 points at the end of
June 1997, showing a decrease of 8 |
|
| percent. |
|
|
| OPERATING
PERFORMANCE |
|
| As
on 30 June 1997, total assets of First Crescent Modaraba were Rs. 1,048.20
million as against |
|
| Rs.
676.75 million on the corresponding date of last year. During the year under
review, the Modaraba concentrated on |
|
| expanding
the leasing operations in order to offset the negative effect of depressed
capital market on its equity portfolio. |
|
| This
year, the Modaraba was able to provide fully against those shares in its
equity portfolio, of which prices are less likely |
|
| to
increase in the near future. |
|
|
| FINANCING
ACTIVITIES |
|
| As
in the past, our efforts during the year have been directed towards a low
risk portfolio. However, the prevailing |
|
| industry
situation has had an adverse affect on volumes. Outstanding position of
financial assistance as on 30 June 1997 is |
|
| given
below:- |
|
| (Rs.
in million) |
|
|
|
|
|
1997 |
1996 |
|
| Fund Based: |
|
|
| Lease
Finance |
|
|
460.04 |
248.76 |
|
| Morabaha
/ Musharika Financing |
|
315.26 |
142.75 |
|
|
|
|
|
|
|
|
| STOCK
MARKET OPERATION / INVESTMENTS |
|
| This
was the third consecutive year during which bearish conditions prevailed in
the stock market. These conditions have |
|
| adversely
affected FCM's profitability from investment in liquid securities. The
Modaraba however, concentrated its |
|
| effort
to make the quality of its portfolio better and also earn a reasonable return
on the amount invested. The Modaraba |
|
| earned
a net capital gain/dividend income of Rs. 3.35 million on its investments
during the year 1996-97 as compared to |
|
| Rs.
8.35 million during the last year. |
|
|
| RESOURCE
MOBILIZATION |
|
| As
at 30 June 1997, FCM had mobilized a net amount under Morabaha / Musharika
etc. of Rs. 731.77 million against |
|
| Rs.
426.19 million as at year ended June 1996, showing an increase of 71.70% over
the previous year. |
|
|
| BALANCE
SHEET & OPERATING RESULTS |
|
| Total
assets of the Modaraba increased by Rs. 371.45 million (54.89%) during
1996-97 to Rs. 1,048.20 million. The |
|
| Modaraba
earned an after tax profit of Rs. 11.97 million during the year as against a
profit of Rs. 10.97 million last year. |
|
| The
Modaraba received a set back in its capital market operations due to
substantial fall in the prices of listed securities. |
|
| The
year under review was the third year during which profits of the Modaraba
were taxed, however, the tax depreciati9n |
|
| loss
on the lease portfolio has more than covered the taxable profits of FCM for
the period. Composition of the profit (after |
|
| tax)
and the recommended appropriation thereof is as follows:-
: |
|
| (Rs.
in million) |
|
|
|
Amount for the |
Amount for the |
% change |
|
|
|
Year Ended |
Year Ended |
over previous |
|
|
|
30 June 1997 |
30 June 1996 |
year |
|
| INCOME |
|
| Rental
/ profit on lease and Morabaha financing |
230.14 |
110.94 |
107.45 |
|
| Dividend/Capital
Gains |
|
4.08 |
8.35 |
(51.14) |
|
| Fees
and Commission |
|
3.56 |
2.07 |
71.98 |
|
| Profit
on placements etc. |
|
3.42 |
6.51 |
(47.47) |
|
|
|
---------- |
---------- |
---------- |
|
|
Total Income = |
241.20 |
127.87 |
88.63 |
|
| EXPENDITURE |
|
|
| Charges/profit
/ return paid on lease, |
|
| Morabaha
and Musharika |
|
203.66 |
100.92 |
101.80 |
|
| Provisions |
|
18.30 |
4.95 |
269.70 |
|
| Loss
on sale of investments/fixed assets |
0.74 |
5.18 |
(85.71) |
|
| Establishment
& other operating expenses |
6.53 |
5.85 |
11.62 |
|
|
|
---------- |
---------- |
---------- |
|
|
Total Expenditure = |
229.23 |
116.90 |
96.09 |
|
|
|
|
|
| NET
PROFIT (Before Management fee) |
|
11.97 |
10.97 |
9.12 |
|
| Management
fee |
|
1.00 |
0.00 |
|
|
|
|
|
|
|
| NET PROFIT |
|
10.97 |
10.97 |
|
|
| Un-appropriated
profit b/f |
|
0.06 |
0.19 |
|
|
|
|
|
|
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
11.03 |
11.16 |
|
|
|
|
|
|
|
| APPROPRIATIONS |
|
| Transfer
to Statutory Reserve |
|
2.20 |
2.10 |
4.76 |
|
| Transfer
to General Reserve |
|
8.00 |
9.00 |
(11. 11 ) |
|
| Un-appropriated
profit |
|
0.83 |
0.06 |
|
|
|
| OBJECTIVES
FOR 1997-98 |
|
| In
1997-98, the Modaraba plans to enhance its earnings through the following
activities:- |
|
|
| 1.
Advisory Services: It was intended to carry out Advisory services two years
ago, however, due to non-performance |
|
| of
the Capital market and overall sluggish conditions in the economy, this
activity could not take off. During this |
|
| year
(1997-98), Modaraba has started advisory services on lease syndication and it
intends to expand this activity |
|
| during
the year. |
|
|
|
|
| 2.
Financing: On the financing side, the Modaraba will concentrate on providing
financial assistance through |
|
| leasing,
gradually increasing its share in the business of the Modaraba to the level
of 80 percent. |
|
|
|
|
| 3.
Stock Market Operations: The Modaraba has a reasonable exposure in listed
securities. Keeping in view the |
|
| continuing
negative performance of the capital markets, the Modaraba will go for further
re-shuffling of its |
|
| equity
portfolio with the intention to reap maximum benefit when there is a
turnaround. |
|
|
| AUDITORS |
|
| The
auditors M/s. Riaz Ahmad & Company, Chartered Accountants, retire and
offer themselves for re-election. |
|
|
| We
would also like to thank the Corporate Law Authority and State Bank of
Pakistan for their continued guidance and |
|
| support
as the regulators for the growth and betterment of the financial sector. |
|
|
| In
the end, the Directors appreciate the dedication and hard work put in by the
officers and staff of the Modaraba. |
|
|
| MAHMOOD
AHMED |
|
| Chief
Executive |
|
|
| Dated:
06-12-1997 |
|
|
|
| AUDITORS'
REPORT TO THE CERTIFICATE HOLDERS |
|
|
| We
have audited the annexed Balance Sheet as at 30 June 1997 and the related
Profit and Loss Account and Statement of |
|
| Changes
in Financial Position together with the Notes to the Accounts for the year
ended 30 June 1997 of FIRST CRESCENT |
|
| MODARABA,
which are modaraba company's [Crescent Business Management (Private) Limited]
representation and |
|
| we
state that we have obtained all the information and explanations which we
required and, after due verification thereof, |
|
| we
report that: |
|
|
| a)
in our opinion, proper books of account have been kept by the modaraba
company in respect of First Crescent |
|
| Modaraba
as required by the Modaraba Companies and Modaraba (Floatation and Control)
Ordinance, 1980, and |
|
| Modaraba
Companies and Modaraba Rules, 1981; |
|
|
|
|
| b)
in our opinion, the Balance Sheet and the Profit and Loss Account have been
drawn up m conformity with the |
|
| Modaraba
Companies and Modaraba (Floatation and Control) Ordinance, 1980, and Modaraba
Companies and |
|
| Modaraba
Rules, 1981; and |
|
|
| c)
in our opinion and to the best of our information and according to the
explanations given to us; |
|
|
| i)
the Balance sheet and the related Profit and Loss Account and Statement of
Changes in Financial |
|
| Position,
which are in agreement with the books of account, exhibit respectively a true
and fair |
|
| view
of the state of the Modaraba's affairs as at 30 June 1997 and the Profit and
the Changes in |
|
| the
Financial Position for the year ended on that date; |
|
|
| ii)
Zakat deductible at source under the Zakat and Ushr Ordinance, 1980, has been
deducted by |
|
| the
Modaraba and deposited in the Central Zakat Fund established under section 7
of that |
|
| Ordinance;
and |
|
|
| iii)
the business conducted, investments made and expenditure incurred by the
Modaraba are in |
|
| accordance
with the objects, terms and conditions of the Modaraba. |
|
|
|
|
|
Riaz Ahmad and Company |
|
| Lahore:-
December 6, 1997 |
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT 30 JUNE 1997 |
|
|
|
|
|
1997 |
1996 |
|
|
|
Note |
Rupees |
Rupees |
|
| CAPITAL
AND RESERVES |
|
|
| Authorized
capital |
|
| 30,000,000
Modaraba Certificates of Rupees 10 each |
|
300,000,000 |
300,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid |
|
|
| up capital |
|
3 |
158,025,000 |
158,025.00 |
|
|
|
|
|
| Reserves
and surplus |
|
|
|
| Capital
reserve |
|
4 |
13,700,000 |
11,500,000 |
|
| Revenue
reserve-general |
|
|
25,000,000 |
17,000,000 |
|
|
|
|
| Unappropriated
profit |
|
|
831,733 |
58,190 |
|
|
---------- |
---------- |
|
|
197,556,733 |
186,583,190 |
|
|
| FINANCES
UNDER MORABAHA |
|
| AND
MUSHARIKA ARRANGEMENTS |
|
5 |
161,404,880 |
99,862,500 |
|
|
|
|
|
| REDEEMABLE
CAPITAL |
|
6 |
200,800,000 |
176,553,000 |
|
| LONG
TERM DEPOSITS |
|
7 |
45,547,563 |
26,596,462 |
|
| CURRENT
LIABILITIES |
|
|
|
| Current
portion of long term finances and deposits |
8 |
34,894,016 |
53,866,330 |
|
| Finances
under morabaha and musharika arrangements |
9 |
340,561,550 |
103,776,016 |
|
| Creditors,
accrued and other liabilities |
10 |
67,431,940 |
29,510,487 |
|
|
|
|
---------- |
---------- |
|
|
|
|
442,887,506 |
187,152,833 |
|
| CONTINGENCIES
AND COMMITMENTS |
|
|
-- |
-- |
|
|
|
|
---------- |
---------- |
|
|
|
|
1,048,196,682 |
676,747,985 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
| TANGIBLE
OPERATING FIXED ASSETS |
|
11 |
461,221,568 |
249,457,508 |
|
| LONG
TERM INVESTMENTS |
|
12 |
114,994,916 |
100,128,786 |
|
| DEFERRED
COSTS |
|
13 |
1,198,240 |
1,492,800 |
|
| CURRENT
ASSETS |
|
|
|
|
| Finances
under morabaha arrangements |
|
14 |
99,859,262 |
136,850,000 |
|
| Finances
under musharika arrangements |
|
15 |
215,154,613 |
1,000,000 |
|
| Short
term investments |
|
16 |
36,755,310 |
39,692,183 |
|
|
|
|
|
|
| Advances,
deposits, prepayments |
|
|
|
|
| and
other receivables |
|
17 |
106,048,329 |
58,699,857 |
|
|
|
|
|
|
| Bank
balances |
|
18 |
12,964,444 |
89,426,851 |
|
|
|
|
---------- |
---------- |
|
|
|
|
470,781,958 |
325,668,891 |
|
|
|
---------- |
---------- |
|
|
1,048,196,682 |
676,747,985 |
|
|
========== |
========== |
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE YEAR ENDED 3{I JUNE 1997 |
|
|
|
|
|
1997 |
1996 |
|
|
|
Note |
Rupees |
Rupees |
|
| REVENUES |
|
|
| Lease
rentals |
|
|
175,612,955 |
90,233,198 |
|
| Profit
on morabaha/musharika finances |
|
|
54,530,574 |
20,707,782 |
|
| Fee,
commission and other income |
|
19 |
11,054,442 |
16,933,002 |
|
|
---------- |
---------- |
|
|
|
241,197,971 |
127,873,982 |
|
| OPERATING
EXPENSES |
|
|
| Financial
charges |
|
20 |
102,983,008 |
54,895,545 |
|
| Depreciation |
|
|
100,671,098 |
46,028,146 |
|
| Other
expenses and charges |
|
21 |
7,267,409 |
11,033,722 |
|
|
---------- |
---------- |
|
|
|
|
|
|
210,921,515 |
111,957,413 |
|
|
| Operating
profit before provisions |
|
|
30,276,456 |
15,916,569 |
|
| Provision
for diminution in |
|
|
|
|
| value
of investments |
|
|
14 861,558 |
-- |
|
| Provision
under NBFIs regulations |
|
|
3,441,355 |
4,946,042 |
|
|
---------- |
---------- |
|
|
|
18,302,913 |
4,946,042 |
|
|
|
|
|
| PROFIT
FOR THE YEAR |
|
11,973,543 |
10,970,527 |
|
| MODARABA
COMPANY'S MANAGEMENT FEE |
|
1,000,000 |
-- |
|
|
|
---------- |
---------- |
|
|
|
10,973,543 |
10,970,527 |
|
| UNAPPROPRIATED
PROFIT BROUGHT FORWARD |
|
58,190 |
187,663 |
|
|
|
---------- |
---------- |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
11,031,733 |
11,158,190 |
|
| APPROPRIATIONS |
|
| Transfer to: |
|
| Statutory
reserve |
|
|
2,200,000 |
2,100,000 |
|
| General
reserve |
|
|
8,000,000 |
9,000,000 |
|
|
|
|
---------- |
---------- |
|
|
|
|
10,200,000 |
11,100,000 |
|
|
|
|
---------- |
---------- |
|
| UNAPPROPRIATED
PROFIT |
|
|
831,733 |
58,190 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| FOR
THE YEAR ENDED 30 JUNE 1997 |
|
|
|
|
|
1997 |
1996 |
|
|
|
|
Rupees |
Rupees |
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
|
| Net
profit for the year |
|
|
10,973,543 |
10,970,527 |
|
|
|
|
|
| Adjustments
for non-cash and other items |
|
|
|
| Depreciation |
|
|
100,671,098 |
46,028,146 |
|
| Deferred
cost amortized |
|
|
392,860 |
1,074,778 |
|
| (Gain)
/ Loss on sale of investments |
|
735,762 |
(6,198,042) |
|
| (Gain)
/ Loss on sale of fixed assets |
|
(181,570) |
5,180,885 |
|
| Provision
for diminution in value of investments |
|
14,861,558 |
-- |
|
| Provision
under NBFIs regulations for receivables |
|
3,441,355 |
4,946,042 |
|
|
|
|
119,921,063 |
51,031,809 |
|
|
|
|
---------- |
---------- |
|
| Operating
profit before working capital changes |
|
130,894,606 |
62,002,336 |
|
|
|
|
|
|
| Decrease
/ (increase) in morabaha arrangements |
|
34,590,738 |
(39,700,000) |
|
| Decrease
/ (increase) in musharika arrangements |
|
(214,154,613) |
34,635,277 |
|
| Increase
in advances, deposits, prepayments and other receivables |
(48,347,778) |
(35,228,358) |
|
| (Decrease)/increase
in creditors, accrued and other liabilities |
37,975,023 |
(2,933,394) |
|
|
|
|
---------- |
---------- |
|
|
|
|
(189,936,630) |
(43,226,475) |
|
|
| Net
cash flow from operating activities |
|
|
|
| before income tax and dividend paid |
|
(59,042,024) |
18,775,861 |
|
| Income
tax paid |
|
|
(42,049) |
(74,695) |
|
| Dividend
paid |
|
|
(53,570) |
(15,554) |
|
|
|
|
---------- |
---------- |
|
| Net
cash flow from operating activities |
|
(59,137,643) |
18,685,612 |
|
|
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
| Deferred
cost incurred |
|
|
(98,300) |
(1,866,000) |
|
| Certificates
of investment |
|
-- |
(176,553,000) |
|
| Purchase
of fixed assets |
|
|
(323,295,439) |
(93,332,299) |
|
| Proceeds
from sale of fixed assets |
|
11,041,851 |
2,739,173 |
|
| (Increase)
/ decrease in investments |
|
(26,790,815 |
7,226,902 |
|
| Gain
/ (loss) on sale of investments |
|
(735,762 |
6,198,042 |
|
|
|
|
---------- |
---------- |
|
|
|
(339,878,465) |
(255,587,182) |
|
| Net
cash flow from investing activities |
|
|
|
|
| CASH
FLOWS FROM FINANCING ACTIVITIES |
|
|
| Redeemable
capital |
|
|
24,247,000 |
176,553,000 |
|
| Long
term finances under morabaha |
|
|
|
| and
musharika arrangements |
|
44,542,380 |
193,512,500 |
|
| Increase
/ (decrease) in short term finances under morabaha |
|
|
| and
musharika arrangements |
|
236,785,534 |
(51,971,168) |
|
| Long
term deposits |
|
|
16,978,787 |
3,702,264 |
|
|
|
|
---------- |
---------- |
|
| Net
cash flow from financing activities |
|
322,553,701 |
321,796,596 |
|
|
|
|
---------- |
---------- |
|
| NET
INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS |
(76,462,407) |
84,895,026 |
|
| CASH
AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR |
89,426,851 |
4,531,825 |
|
| CASH
AND CASH EQUIVALENTS AT THE END OF THE YEAR |
|
12,964,444 |
89,426,851 |
|
|
========== |
========== |
|
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 1997 |
|
|
| 1.
LEGAL STATUS AND NATURE OF BUSINESS |
|
| The
Modaraba is a multipurpose perpetual modaraba formed under the Modaraba
Companies and Modaraba |
|
| (Floatation
and Control) Ordinance, 1980 and the rules framed thereunder and is managed
by Crescent Business |
|
| Management
(Private) Limited. It is listed on all the Stock Exchanges in Pakistan and is
engaged in the business |
|
| of
leasing, morabaha and musharika financing, investment in marketable
securities and other related business. |
|
|
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
| 2.1
Overall valuation policy |
|
| These accounts have been prepared under the
historical cost convention. |
|
| 2.2
Tangible fixed assets |
|
|
| Tangible
fixed assets are stated at cost less accumulated depreciation. Depreciation
is charged |
|
| to
revenue on straight line method whereby the cost of an asset is written off
over its expected |
|
| useful
life to modaraba. |
|
|
| 2.3
Investments |
|
| Long
term investments are stated at cost. Short term investments are stated at
lower of cost and |
|
| market
value determined on aggregate portfolio basis. |
|
|
| 2.4
Deferred costs |
|
| These are amortized over a period of five
years commencing from the year of incurrence. |
|
|
|
| 2.5
Account receivables |
|
| Provision
for doubtful debts is made/adjusted after review of outstanding portfolio at
the year |
|
| end
on the basis of NBFIs regulations as applicable to the Modarabas and
management's own |
|
| judgement. |
|
|
|
|
|
| 2.6 Taxation |
|
|
| Provision
for current taxation is based on taxable income at current rates of taxation
after |
|
| taking
into account tax credits available. |
|
|
|
|
| The
modaraba accounts for deferred taxation on all timing differences, using the
liability method, |
|
| excluding
the tax effect of those timing differences which are not likely to reverse in
the |
|
| foreseeable
future. As a measure of prudence, deferred tax debits are not accounted for. |
|
|
|
|
| 2.7
Off-setting of financial assets and liabilities |
|
|
|
|
| A
financial asset and a financial liability is off set and the net amount
reported in the balance |
|
| sheet
if the Modaraba has a legal enforceable right to set-off the recognized
amounts and intends |
|
| either
to settle on a net basis or to realize the asset and settle the liability
simultaneously. |
|
| Corresponding
income on the assets and charge on the liability is also off-setted. |
|
|
|
|
| 2.8
Foreign currency |
|
|
|
|
| Transactions
in foreign currencies are accounted for in Pak rupees at rates of exchange
ruling at |
|
| the
date of transaction. Monetary assets and liabilities in foreign currency are
translated into |
|
| Pak
Rupee at the rate of exchange ruling at the balance sheet date. Exchange gain
and losses on |
|
| translations
are included in income currently. |
|
|
|
|
| 2.9
Revenue recognition |
|
|
|
|
| 2.9.1
Lease rentals are recognized as income when due on a systematic basis over
the lease period. |
|
|
|
|
| 2.9.2
Income from morabaha / musharika transactions is recognized on pro-rata
accrual basis taking |
|
| into
account, the duration of placement of funds and the estimated profit
receivable. |
|
|
| 2.9.3
Gain / loss on sale of investments is accounted for in the year in which it
arises. Dividend |
|
| income
is accounted for on receipt basis. |
|
|
|
|
|
|
|
1997 |
1996 |
|
|
|
|
Rupees |
Rupees |
|
| 3.
ISSUED, SUBSCRIBED AND PAID UP CA |
