| FIRST CONSTELLATION MODARABA |
|
|
|
|
|
|
|
| 5TH
ANNUAL REPORT 1997 |
|
|
|
|
|
| CONTENTS |
|
| 1.
Corporate Information |
|
| 2.
Directors' Report to the |
|
| Certificate
Holders |
|
| 3.
Auditors' Report to the |
|
| Certificate
Holders |
|
| 4.
Balance Sheet |
|
| 5.
Profit & Loss Account |
|
| 6.
Statement of changes in Financial Position |
|
| 7.
Notes to the Accounts |
|
| 8.
Pattern of Certificate Holders |
|
|
|
| CORPORATE
INFORMATION |
|
|
| DIRECTORS
OF MODARABA COMPANY |
|
|
| Mohammad
Yousuf Memon |
|
| R.A.
Sattar * |
|
| Mohammad
Zakaria |
|
| Mohammad
Zain * |
|
|
|
|
| AUDITOR |
|
| Hyder
Bhimji & Company, |
|
| Chartered
Accountants |
|
|
| BANKERS |
|
| Askari
Commercial Bank Limited |
|
| ANZ
Grindlays Bank |
|
| Faysal
Bank Limited |
|
| Muslim
Commercial Bank Limited |
|
| Allied
Bank of Pakistan Limited |
|
| National
Bank of Pakistan |
|
| Bank
of Tokyo |
|
| Platinum
Bank Limited |
|
| Trust
Bank Limited |
|
|
| LEGAL
ADVISORS |
|
| Haroon
Sharif Gogan Advocate |
|
| MODARABA
COMPANY |
|
|
|
|
| Constellation
Management Company (Private) Limited |
|
|
|
|
|
| REGISTERED
OFFICE |
|
| 2nd
Floor, Trade Centre, |
|
| I.I.
Chundrigar Road, |
|
| Karachi. |
|
|
|
|
|
|
|
| REGISTRARS |
|
|
|
| MIPCO
Associates, |
|
|
|
|
| 10th
Floor, Uni Centre, |
|
| I.I.
Chundrigar Road, |
|
|
|
| Karachi. |
|
|
|
|
|
| *
Induction communicated to the concerned for assent. |
|
|
| DIRECTORS'
REPORT TO THE CERTIFICATE HOLDERS |
|
|
| The
Board of Directors of the Constellation Management Company (Private) Limited,
the Management |
|
| Company
of First Constellation Modaraba (FCM), take pleasure in presenting of the
Fifth Annual Report of |
|
| First
Constellation Modaraba alongwith the audited financial statements together
with the notes to the |
|
| accounts
for the year ended June 30, 1997. |
|
|
| FINANCIAL
REVIEW :- |
|
| In
spite of the adverse business environments and some what volatile performance
of the economy, the |
|
| expected
performance of the Modaraba sector in terms of the profitability has not been
as good as it could |
|
| have
been, however, your Modaraba is perhaps the only one among the few, which has
achieved |
|
| unprecedented
growth and has maintained excellent performance record Successfully fielding
its business |
|
| activities
and deploying its resources in various venues as is mentioned by the
following financial results of |
|
| 12
months of the year under review as compared to results of 18 months as at
June 30, 1996; |
|
|
|
|
July 1st 1996 |
Jan 1st 1995 |
|
|
|
To June 30, 1997 |
To June 30, 1996 |
|
|
|
(12 Months) |
(18 Months) |
|
|
|
Rupees |
Rupees |
|
| Operating
Profit for the year |
|
9,474,403 |
5,217,004 |
|
| Less
: (Provision) for diminution in the |
|
|
|
| Value
of Marketable Securities |
|
(3,170,554) |
- |
|
|
|
|
|
---------- |
---------- |
|
| Profit
before charging Management Fee |
|
6,303,849 |
5,217,004 |
|
| Modaraba
Company Management Fee |
|
(573,077) |
(474,273) |
|
|
|
---------- |
---------- |
|
| Profit
before Tax |
|
|
5,730,772 |
4,742,731 |
|
|
|
|
| Taxation |
(1996: Rs. 372,343/=) |
|
|
|
|
(1997: Rs. 259,921/=) |
|
(632,264) |
(141,354) |
|
|
|
|
|
---------- |
---------- |
|
| Profit
after Tax |
|
|
5,098,508 |
4,601,377 |
|
| Add:
Profit brought forward |
|
229,194 |
130,738 |
|
|
|
---------- |
---------- |
|
| Profit
available for Appropriation |
|
5,327,702 |
4,732,115 |
|
| APPROPRIATIONS: |
|
|
|
|
| Statutory
Reserves (@20%) |
|
(1,146,154) |
(948,546) |
|
| Profit
Distribution in Cash |
|
(3,877,500) |
(3,554,375) |
|
|
|
---------- |
---------- |
|
| Unappropriated
Profit Carried Forward |
|
304,048 |
229,194 |
|
|
|
========== |
========== |
|
|
| FINANCIAL
HIGHLIGHTS AND EARNING OF CERTIFICATE HOLDERS |
|
| The
Modaraba's steady but prudent growth and continued enhancement in Certificate
Holders' earnings |
|
| are
evident from the following financial data: |
|
|
|
|
|
|
July 1st 1996 |
Jan 1st 1995 |
|
|
|
|
|
To June 30, 1997 |
To June 30, 1996 |
|
|
|
|
|
% |
% |
|
| Break-Up
Value Per Certificate |
|
|
10.52 |
10.33 |
|
| Gross
Profit Margin |
|
|
|
56.29 |
16.92 |
|
| Net
Profit Margin |
|
|
|
30.29 |
14.93 |
|
| Return
on Total Assets Employed |
|
|
4.96 |
4.58 |
|
| Return
on Capital Employed |
|
|
7.89 |
7.12 |
|
| Return
on Capital (Dividend) |
|
|
6.00 |
5.50 |
|
|
| STATUTORY
RESERVES |
|
| The
Board of Directors have decided to appropriate 20% Rs. 1,146,154/= of the
profit before tax Rs. |
|
| 5,730,772/=,
realized during the year ended June 30, 1997, towards statutory reserve
requirement of laws |
|
| of
the Modaraba. This reserve would be consistently made until it equals the
paid up capital of the |
|
| Modaraba.
Creation of this reserves will not only strengthen the financial footing of
the Modaraba but it will |
|
| also
help building-up of sound equity base and provide solid foundation for its
future growth. |
|
|
| PROFIT
DISTRIBUTION |
|
| While
the above stated provisions have to be made, but the Board of Directors take
pleasure in distributing |
|
| to
the Certificate holders a Cash Dividend at the rate of 6% (i.e. Rs. 0.60 per
certificate held by the FCM |
|
| Certificate
holders), for the year under review. |
|
|
| This
profit is being declared after transferring of 20% of net profit before tax
to statutory reserves which |
|
| shows
robustness of the Modaraba as well as your Modaraba's objective to continue
to pay dividend to its |
|
| certificate
holders. |
|
|
| It
would not be out of place to mention here that your Modaraba has been paying
dividend from its first |
|
| financial
year, till todate and the total payment till the year ended June 30, 1997
amounts to 45% or |
|
| another
way paying it is an average of 9% per annum payment has been made to the
Certificate Holders |
|
| through
Dividend / Bonus, see below the Dividends / Bonus payments, made thus far · |
|
|
| Period |
|
|
Dividend/ Bonus |
|
| Dec.
31, 1992 |
|
- |
10.00% |
|
| Dec.
31, 1993 |
|
- |
17.50% |
|
| Dec.
31, 1994 |
|
6.00% |
- |
|
| June
30, 1996 |
|
5.50% |
- |
|
| June
30, 1997 |
|
6.00% |
- |
|
|
| Above
shows genuine commitment of the Board of Directors, to continue to pay
benefits to Certificate |
|
| holders
even under business circumstances as enunciated above, moreover this
distribution of profit for |
|
| the
period under review is equal to 90% distribution of profit. |
|
|
| OPERATIONAL
PERFORMANCE REVIEW |
|
| The
recessionary conditions are still prevailing in all sectors of the economy,
including Modaraba sector. |
|
| Despite
difficult conditions such as funding and regulatory constraints, extremely
sluggish stock market |
|
| and
imposition of enhanced taxation to the Modaraba, your Modaraba even under
these circumstances, |
|
| has
been able to achieve satisfactory results for the period of 12 months under
review as compared to |
|
| previous
period of 18 months. Operating Profit for the year was Rs. 9,474,403/= (for
12 months) as |
|
| compared
to Rs. 5,217,004/= of previous period (for 18 months). The operating expenses
were Rs. |
|
| 7,356,089/=
as compared to Rs. 25,600,842/= there was a substantial decline in expenses
to the tune of |
|
| 71%,
this was achieved as a result of management's full concentration and
attention to reduce the |
|
| expenses
under present recessionary circumstances. Provision in the diminution in the
value of Stocks |
|
| has
been made of Rs. 3,170,554/=, and the provision of Income Tax of Rs.
632,264/=. has also been |
|
| made.
These in turn have reduced the profitability, but the grace of AI-Mighty
Allah, your Modaraba is still |
|
| able
to pay Cash dividend at the rate of 6% for the year under review. |
|
|
| Your
Modaraba's assets, stood at Rs. 102.906 million as compared to Rs. 100.516
million of previous |
|
| period,
this assets growth reflects a steady but prudent growth of your Modaraba. |
|
|
| BUSINESS
PERFORMANCE REVIEW |
|
| Due
to the continued depressed stock market, the earnings from capital gains did
not materialize, |
|
| resultantly
the Modaraba has taken a very realistic view and had made a provision of Rs.
3,170,554/= for |
|
| diminution.
in the market value of stocks, no doubt it has reduced our profitability, but
it is a wise and practical |
|
| approach
under the present circumstances. However, it is hoped with the expected
improvement in the stock |
|
| market
the share prices shall increase and your Modaraba shall benefit from the
up-rising of stock market. |
|
|
| The
net investment is lease finance stood at Rs. 3,783,138/= (for 12 months) as
compared to Rs. |
|
| 5,165,437/-
(for 18 months). With our modest equity base and lack of uninterrupted and
reasonably priced |
|
| shout
term funding, growth in leasing operation was restricted. However, the lease
portfolio of the |
|
| Modaraba
is based on prudent lending policy which is evident from the fact that there
is not a single |
|
| default
in lease rentals receivables during the year, and under the circumstances,
continuous efforts were |
|
| made
towards sustainable growth with emphasis on quality of leasing as against the
mere size of the |
|
| balance
sheet. |
|
|
| The
short term placement stood at Rs. 52.980 million in the beginning of the year
and closed at Rs. |
|
| 72.500
million as on June 30, 1997, showing increase of 37% which reflects your
Modaraba constant |
|
| efforts
to have resources mobilized to take advantage of any business opportunity
which becomes |
|
| available
to it at any time. |
|
|
| TAXATION |
|
| As
previously informed, tax exemption period of three assessment years has been
expired and your |
|
| Modaraba
is to pay income tax every year. Accordingly a provision for tax Rs.
259,921/= has been made |
|
| for
the year under review, while income tax assessed for prior year stated a tax
liability of Rs. 513,259/= |
|
| which
has been adjusted against advance tax payment. Thus it is apparent that the
heavy taxation has |
|
| significantly
lowered the profitability of your modaraba. Though the tax payments have
eroded and |
|
| reduced
profitability, but it is anticipated that the government may favorably
consider Modaraba's |
|
| Taxation
in future in order to promote Islamic Modes of Financing. |
|
|
| FUTURE
PROSPECTS |
|
| The
basic objective of the Modaraba is to make secured and profitable investment
and earn maximum |
|
| profit,
thus in accordance with the policy of the Modaraba, the present operations
shall be continued |
|
| besides
seeking new secured and more profitable venues of business, and all efforts
shall be made to |
|
| ensure
that the Modaraba continues to tread the path of progress and hope that,
"Inshah Allah" our |
|
| sincerity
of purpose and devotion would continue to be rewarded as in the past, as
evident from the above |
|
| stated
financial highlights. |
|
|
| AUDITORS |
|
| The
present auditors M/s. Hyder Bhimji & Co., Chartered Accountants, being
due for retirement have |
|
| offered
themselves for re- appointment for the year ended June 30, 1998. Their
appointment has been |
|
| confirmed
by the Board subject to the approval of the competent authority. |
|
|
| ACKNOWLEDGMENT |
|
| The
Board of Directors, places thanks to the valued clients, sponsors and
certificate holders for the trust |
|
| and
confidence they have placed on the Modaraba, and the Board of Directors also
thanks concerned |
|
| authorities
for their continued support, guidance for the smooth business of the
Modaraba. Moreover the |
|
| directors
equally appreciate the hard work and commitment demonstrated by our staff and
acknowledge |
|
| their
contributions in the results for the year under review. |
|
|
|
| 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 |
|
| June
30, 1997 of First Constellation Modaraba, which are Modaraba Company's
(Constellation |
|
| Management
Company (Pvt) Ltd), 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)
The Modaraba has recorded lease transactions as operating leases due to
reasons explained in |
|
| note
2.2 to the accounts. Whereas if these leases were financial leases, the
International |
|
| Accounting
Standard 17 "Accounting for Leases" would have applied. |
|
|
|
|
| (b)
In our opinion, proper books of account have been kept by the Modaraba
Company in respect of |
|
| First
Constellation Modaraba as required by the Modaraba Companies and Modaraba
(Flotation |
|
| and
Control) Ordinance, 1980 and Modaraba Companies and Modaraba Rules, 1981;
and, |
|
|
|
|
| (c)
In our opinion the balance sheet and profit and loss account have been drawn
up in conformity |
|
| with
the Modaraba Companies and Modaraba (Flotation and Control) Ordinance, 1980
and |
|
| Modaraba
Companies and Modaraba Rules, 1981; and |
|
|
|
|
| (d)
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 accounts, and except for
the |
|
| financial
impact of the matter referred to in para (a) above which has not been
quantified, |
|
| 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)
no Zakat was deductible at source under the Zakat and Ushr Ordinance, 1980;
and |
|
|
|
|
| iii)
the business conducted, investments made and expenditures incurred by the
Modaraba |
|
| are
in accordance with objects, terms and conditions of the Modaraba. |
|
|
|
|
|
|
HYDER BHIMJI & CO. |
|
| Karachi:
July 28, 1997 |
|
Chartered Accountants |
|
|
|
|
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1997 |
|
|
|
|
Note |
JULY 1st 1996 |
JAN 1st 1995 |
|
|
|
|
|
TO JUNE 30, 1997 |
TO JUNE 30, 1996 |
|
|
|
|
|
(12 months) |
(18 months) |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| CAPITAL
AND RESERVES |
|
|
| Authorised |
|
|
|
| 30,000,000
Modaraba Certificates |
|
| of
Rs 10/- each |
|
|
300,000,000 |
300,000,000 |
|
|
|
|
=========== |
=========== |
|
| Issued,
subscribed and paid up |
|
| 5,000,000
Modaraba Certificates |
|
| of
Rs 10/- each subscribed in cash |
|
50,000,000 |
50,000,000 |
|
|
|
|
| 1,462,500
Bonus Certificates of Modaraba |
|
| Rs
10/- each issued as fully paid |
|
3 |
14,625,000 |
14,625,000 |
|
|
|
|
|
----------- |
----------- |
|
|
|
|
|
64,625,000 |
64,625,000 |
|
| Statutory
Reserve |
|
|
4 |
3,050,677 |
1,904,523 |
|
| Unappropriated
profit |
|
|
|
304,048 |
229,194 |
|
|
|
|
|
----------- |
----------- |
|
|
|
|
|
|
67,979,725 |
66,758,717 |
|
| Security
Deposits from Lessees |
|
|
1,121,329 |
2,164,146 |
|
|
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
| Short
term Morabaha Finance -- secured |
5 |
27,000,000 |
25,000,000 |
|
| Accrued and
Other Liabilities |
|
6 |
2,927,641 |
3,039,565 |
|
| Profit
Distribution |
|
3,877,500 |
3,554,375 |
|
|
----------- |
----------- |
|
|
33,805,141 |
31,593,940 |
|
|
----------- |
----------- |
|
|
102,906,195 |
100,516,803 |
|
|
|
|
=========== |
=========== |
|
| TANGIBLE
FIXED ASSETS |
|
|
|
|
|
|
|
|
| Cost
less accumulated amortization/ |
|
|
| depreciation |
|
|
|
|
| Assets
given on lease |
|
7.1 |
3,783,138 |
5,165,437 |
|
| Assets
in own use |
|
7.2 |
629,859 |
738,935 |
|
|
|
|
---------- |
---------- |
|
|
|
|
4,412,997 |
5,904,372 |
|
| LONG
TERM INVESTMENTS |
|
8 |
15,899,066 |
15,899,066 |
|
| DEFERRED
EXPENDITURE |
|
9 |
- |
123,344 |
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
|
|
---------- |
---------- |
|
| Morabaha/Advances,
Deposits |
|
10 |
2,030,850 |
11,610,192 |
|
| Marketable
Securities-Short Term |
|
8.10 |
3,802,735 |
6,798,864 |
|
| Prepayment
& Other Receivable |
|
11 |
261,866 |
336,522 |
|
| Short
Term Placement with Banks |
|
|
72,500,000 |
52,980,565 |
|
| Bank
Balances |
|
|
3,998,681 |
6,863,878 |
|
|
|
|
---------- |
---------- |
|
|
|
|
82,594,132 |
78,590,021 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
102,906,195 |
100,516,803 |
|
|
|
|
|
========== |
========== |
|
|
| These
accounts should be read in conjunction with the attached notes. |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 1997 |
|
|
|
Note |
JULY 1st 1996 |
JAN 1st 1995 |
|
|
|
TO JUNE 30, 1997 |
TO JUNE 30, 1996 |
|
|
|
(12 months) |
(18 months) |
|
|
|
Rupees |
Rupees |
|
|
|
|
| OPERATING
INCOME |
|
|
|
| Profit
on Morabaha transactions |
|
|
509,560 |
1,579,545 |
|
| Lease
& allied income |
|
|
14,466,691 |
21,833,567 |
|
|
|
|
---------- |
---------- |
|
| INCOME
FROM OPERATION |
|
|
14,976,251 |
23,413,112 |
|
| Other Income |
|
|
12 |
1,854,241 |
7,404,734 |
|
|
|
|
---------- |
---------- |
|
|
|
|
16,830,492 |
30,817,846 |
|
|
|
|
|
| OPERATING
EXPENSES |
|
13 |
(7,356,089) |
(25,600,842) |
|
|
|
|
|
---------- |
---------- |
|
| OPERATING
PROFIT FOR THE YEAR |
|
|
9,474,403 |
5,217,004 |
|
|
|
|
| Less:
(Provision) for diminution in the |
|
| value
of marketable securities |
|
|
(3,170,554) |
- |
|
|
|
|
---------- |
---------- |
|
| PROFIT
BEFORE CHARGING MANAGEMENT FEE |
|
6,303,849 |
5,217,004 |
|
| MODARABA
COMPANY'S MANAGEMENT FEE |
|
|
(573,077) |
(474,273) |
|
|
|
|
---------- |
---------- |
|
| PROFIT
BEFORE TAX |
|
|
5,730,772 |
4,742,731 |
|
|
|
|
|
| TAXATION |
|
|
|
| - CURRENT |
|
|
|
(259,921) |
(141,354) |
|
| - PRIOR
YEAR |
|
|
|
(372,343) |
- |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
(632,264) |
(141,354) |
|
|
|
|
|
---------- |
---------- |
|
| PROFIT
AFTER TAX |
|
|
5,098,508 |
4,601,377 |
|
| UNAPPROPRIATED
PROFIT BROUGHT FORWARD |
|
229,194 |
130,738 |
|
|
|
|
---------- |
---------- |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
|
5,327,702 |
4,732,115 |
|
|
|
|
|
|
| APPROPRIATIONS: |
|
|
|
|
| STATUTORY
RESERVES |
|
|
(1,146,154) |
(948,546) |
|
| PROFIT
DISTRIBUTION IN CASH @ 6 % (1996 5.5%) |
|
(3,877,500) |
(3,554,375) |
|
|
|
|
---------- |
---------- |
|
| UNAPPROPRIATED
PROFIT CARRIED FORWARD |
|
304,048 |
229,194 |
|
|
|
|
========== |
========== |
|
|
| These
accounts should be read in conjunction with the attached notes. |
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| FOR
THE YEAR ENDED JUNE 30, 1997 |
|
|
|
|
|
|
JULY 1st 1996 |
JAN 1st 1995 |
|
|
|
|
|
TO JUNE 30, 1997 |
TO JUNE 30, 1996 |
|
|
|
|
|
(12 months) |
(18 months) |
|
|
|
|
|
Rupees |
Rupees |
|
| A.
CASH FLOW FROM OPERATING ACTIVITIES |
|
|
|
|
|
| Profit
for the year |
|
|
|
5,098,508 |
4,601,377 |
|
| Changes
not effecting working capital |
|
---------- |
---------- |
|
| Amortization
of assets given on lease |
|
2,648,371 |
18,119,589 |
|
| Depreciation
on assets in own use |
|
|
299,273 |
388,213 |
|
| Provision
for diminution in the value of |
|
|
| marketable
securities |
|
3,170,554 |
- |
|
| Amortization
of deferred expenditure |
|
123,344 |
370,032 |
|
| (Profit)
on disposal of fixed assets(Own) |
|
(7,537) |
- |
|
| Dividend
Income |
|
(301,485) |
(395,816) |
|
| Capital
Gain on sale-of marketable securities |
|
(3,000) |
344,259 |
|
|
|
---------- |
---------- |
|
|
|
|
|
5,929,520 |
18,826,277 |
|
|
|
|
|
---------- |
---------- |
|
| Operating
profit before working capital changes |
|
11,028,028 |
23,427,654 |
|
| Changes
in Working Capital |
|
|
|
|
| (Increase)/decrease
in current assets |
|
|
|
|
|
|
|
|
|
| Morabaha
Transactions |
|
|
|
10,000,000 |
23,000,000 |
|
| Marketable
Securities |
|
|
|
(174,425) |
514,696 |
|
| Advances,
deposits and other receivables |
|
(346,002) |
1,071,027 |
|
| Short
term placements |
|
|
|
(19,519,435) |
(33,705,300) |
|
|
|
---------- |
---------- |
|
| Net
decrease in current assets |
|
|
(10,039,862) |
(9,119,577) |
|
|
|
|
|
| Increase/(decrease)
in current liabilities |
|
|
|
| Creditor,
accrued and other liabilities |
|
(111,924) |
(12,328,325) |
|
|
|
---------- |
---------- |
|
| Net
decrease in working capital |
|
(10,151,786) |
(21,447,902) |
|
|
|
---------- |
---------- |
|
| Net
cash from operating activities |
|
876,242 |
1,979,752 |
|
|
|
========== |
========== |
|
|
|
JULY 1st 1996 |
JAN 1st 1995 |
|
|
TO JUNE 30, 1997 |
TO JUNE 30, 1996 |
|
|
(12 months) |
(18 months) |
|
|
Rupees |
Rupees |
|
|
|
|
| B.
CASH FLOW FORM INVESTING ACTIVITIES |
|
|
| Capital
expenditures |
|
|
|
(204,160) |
(5,501,477) |
|
| Dividend
Income |
|
|
|
301,485 |
395,816 |
|
| Sales
proceeds of own assets |
|
|
21,500 |
- |
|
| Capital
gain on sale of marketable securities |
|
3,000 |
(344,259) |
|
|
|
|
|
---------- |
---------- |
|
| Net
cash used in investing activities |
|
121,825 |
(5,449,920) |
|
|
|
========== |
========== |
|
| C.
CASH FLOW FROM FINANCING ACTIVITIES |
|
|
| Security
deposits |
|
|
(1,057,577) |
(1,867,270) |
|
| Dividend
paid |
|
|
(3,554,375) |
(3,877,500) |
|
| Financial
charges |
|
|
(1,251,312) |
- |
|
| Shod
term financing |
|
|
2,000,000 |
15,000,000 |
|
|
|
|
|
---------- |
---------- |
|
| Net
cash from financing activities |
|
(3,863,264) |
9,255,230 |
|
