| AKD Securities & Safe Deposit Co. Ltd |
|
|
|
|
|
|
| Annual
Report 1998 |
|
|
|
|
| CONTENTS |
|
|
| Company
Information |
|
| Notice
of Meeting |
|
| Directors'
Report |
|
| Auditor's
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.
Haji Iqbal Haji Ismail |
|
| Mr.
Khalid Nazir |
|
| Mr.
Iqbal A. Karim |
|
| Mrs.
Yasmeen Aqeel A. Karim |
|
| Mr.
Haji A. Karim Haii 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 |
|
|
| REGISTERED
OFFICE |
|
| 533-534,
Karachi Stock Exchange Bldg., Karachi-74000 |
|
| Tel:
(92-21) 2436461 (3 lines) |
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| Fax:
(92-21) 2426429 |
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|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the Sixty Third Annual General Meeting of the
Shareholders of the Company will be |
|
| held
at the Registered Office of the Company at 533-534, Karachi Stock Exchange
Building, Stock Exchange Road, |
|
| Karachi,
on Thursday December 31, 1998, at 9.00 a.m. to transact the following
business:- |
|
|
| 1.
To confirm the minutes of the Annual General Meeting held on December 31,
1997 |
|
|
| 2.
To receive, consider and adopt the Annual Accounts for the year ended June
30, 1998 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, |
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|
By order of the Board |
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|
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| Place:
Karachi |
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|
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| Dated:
December 7, 1998 |
|
Company Secretary |
|
|
| NOTES: |
|
|
| 1.
The Share Transfer books of the Company will remain closed from December 20,
1998 to December 31,1998 |
|
| (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, 1998. |
|
|
| The
financial results are as follows:- |
|
|
| (Loss)
for the year before Taxation |
|
(168,955) |
|
| Provision
for Taxation |
|
(76,308) |
|
|
|
|
---------- |
|
| (Loss)
after Taxation |
|
(245,263) |
|
| Unappropriated
Profit brought forward |
|
476,911 |
|
|
|
|
---------- |
|
| Unappropriated
Profit Carried to Balance Sheet |
|
231,648 |
|
|
========== |
|
|
| During
the current year the company suffered a loss of Rs. 168,955/= as against
profit of Rs 573,536/= due to |
|
| bearish
condition of the Stock Exchange through out the year. The KSE-100 index which
was 1566 points at the |
|
| beginning
of the year dropped down to 880 points. Due to continuous bearish condition
the company could not |
|
| generate
sufficient consultancy income and capital Gain In view of loss suffered
during the year the Directors |
|
| of
the Company have decided to omit the dividend. |
|
|
| Change
in the Board of Directors |
|
| During
the period under review Mr. Wusooq Khaleeli resigned as director. Mr. Haji
Iqbal Haji Ismail was co-opted |
|
| in
the vacancy arising in the Board for the remaining term. Mr. Mian Nazir Ahmed
the director of the Company |
|
| expired
on March 9, 1998 and in his place Mrs. Yasmeen Aqeel A. Karim was co-opted
for the remaining term. |
|
| The
Board wishes to thanks Mr. Wusooq Khaleeli for the valuable contribution
while serving as director of the |
|
| company
and also condoles the death of Mr. Mian Nazir Ahmed & pray to Almighty
Allah for the eternal peace |
|
| of
his soul. |
|
|
| Year
2000 Compliance of Computer System |
|
| The
financial statements of the company are being prepared manually. No action,
therefore, is required in |
|
| connection
of Year 2000 Compliance of Computer System. |
|
|
| Auditors |
|
| The
Auditors M/s Hyder Bhimji & Co. Chartered Accountants retire and being
eligible offer themselves for |
|
| reappointment
in the coming meeting. |
|
|
| Pattern
of Shareholding |
|
| The
Pattern of shareholding as on June 30, 1998 is annexed to this report. |
|
|
| Acknowledgment |
|
| The
Directors would like to thanks the staff and officers of the company for the
hard work and positive efforts |
|
| during
the year. |
|
|
|
|
For & behalf of Board of Directors |
|
|
|
|
|
|
|
Munir M. Ladha |
|
|
|
Chief Executive |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of AKD SECURITIES AND SAFE DEPOSIT CO.
LIMITED as at |
|
| June
30, 1998 and the related Profit and Loss Account for the year then ended
& the statement of changes in |
|
| financial
position (Cash Flow Statement) together with the Notes forming pad 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 statement of changes in financial position (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, 1998, and of the Loss and (Cash Flows) for the year then
ended; and |
|
|
| (d)
in our opinion, "no zakat was deductible at source under the Zakat and
ushr Ordinance, 1980. |
|
|
|
|
CHARTERED ACCOUNTANTS |
|
|
| KARACHI:
December 7, 1998 |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1998 |
|
|
|
|
1998 |
1997 |
|
|
|
Note |
Rupees |
Rupees |
|
|
|
|
|
|
|
| CAPITAL
AND RESERVES |
|
|
|
|
|
|
|
|
|
|
| Share
Capital: |
|
|
|
|
|
| Authorised:
10,000,000 |
|
|
|
|
|
| (1997:
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 |
|
|
231,648 |
476,911 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
1,720,091 |
1,965,354 |
|
|
|
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
|
|
| Accrued
Liabilities |
|
4 |
535,899 |
917,066 |
|
|
| Deposit-
Key Deposit Lockers |
|
|
36,290 |
36,290 |
|
|
| Provision
for Taxation |
|
|
23,388 |
200,958 |
|
|
| Unclaimed
Dividend |
|
|
353,022 |
385,834 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
948,599 |
1,540,148 |
|
|
|
|
|
|
|
|
| Contingencies
and Commitments: |
|
5 |
- |
- |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
2,668,690 |
3,505,502 |
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
| TANGIBLE
FIXED ASSETS |
|
|
|
|
|
|
| Operating
Fixed Assets |
|
6 |
650,122 |
611,248 |
|
|
|
|
|
|
|
|
| SECURITY
DEPOSITS |
|
|
611,813 |
611,813 |
|
|
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
|
|
| Trade
Debtors |
|
7 |
482,037 |
313,360 |
|
|
| Advances
Deposits and Prepayments |
|
8 |
275,203 |
330,284 |
|
|
| Short
Term Investments |
|
9 |
629 |
825,924 |
|
|
| Advance
Income Tax |
|
|
141,781 |
33,252 |
|
|
| Cash
& Bank Balances |
|
10 |
507,105 |
779,621 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
1,406,755 |
2,282,441 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
2,668,690 |
3,505,502 |
|
|
|
|
|
========== |
========== |
|
|
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
|
Munir M. Ladha |
|
Iqbal A. Karim |
|
| Karachi:
December 7, 1998 |
Chief Executive |
|
Director |
|
|
|
|
|
| PROFIT
& LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 1998 |
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| Operating
Revenue |
|
11 |
4,437,304 |
16,805,268 |
|
| Capital
Gain/(Loss) on Investment |
|
12 |
(266,387) |
379,959 |
|
|
|
|
---------- |
---------- |
|
|
|
|
4,170,917 |
17,185,227 |
|
| Operating
Expenses |
|
13 |
(4,357,930) |
(16,622,827) |
|
|
|
|
---------- |
---------- |
|
| Operating
(Loss)/Profit before taxation |
|
(187,013) |
562,400 |
|
| Other
Income |
|
|
18,058 |
11,136 |
|
|
|
|
---------- |
---------- |
|
| (Loss)/Profit
before taxation |
|
|
(168,955) |
573,536 |
|
|
|
|
| Provision
for Taxation- Current |
|
(23,388) |
(83,602) |
|
| Prior |
|
(52,920) |
(117,356) |
|
|
|
---------- |
---------- |
|
|
|
(76,308) |
(200,958) |
|
|
|
---------- |
---------- |
|
| (Loss)/Profit
after taxation |
|
(245,263) |
372,578 |
|
| Unappropriated
Profit brought forward |
|
476,911 |
104,333 |
|
|
|
---------- |
---------- |
|
| Unappropriated
Profit carried to Balance Sheet |
|
231,648 |
476,911 |
|
|
|
========== |
========== |
|
|
| Note:
The annexed notes form an integral part of these accounts. |
|
|
|
Munir M. Ladha |
|
|
Iqbal A. Karim |
|
| Karachi:
December 7, 1998 |
Chief Executive |
|
|
Director |
|
|
|
| CASH
FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 1998 |
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| Cash
from Operating Activities |
|
|
|
|
|
| Profit/(Loss)
before Taxation |
|
|
(168,955) |
573,536 |
|
| Adjustment
for: |
|
|
|
|
| Depreciation |
|
|
72,236 |
67,917 |
|
|
|
|
---------- |
---------- |
|
| Profit
before working capital changes |
|
(96,719) |
641,453 |
|
|
|
|
| Increase/(Decrease)
in Current Assets: |
|
| Trade
Debtors |
|
|
(168,677) |
(13,360) |
|
| Advances
& Prepayments |
|
|
55,081 |
(152,410) |
|
| Increase/(Decrease)
in Current Liabilities: |
|
|
|
| Accrued
Liabilities |
|
|
(381,167) |
7,920 |
|
|
|
|
---------- |
---------- |
|
|
|
|
(494,763) |
(157,850) |
|
|
|
|
---------- |
---------- |
|
| Cash
generated from operations |
|
(591,482) |
483,603 |
|
|
|
---------- |
---------- |
|
| Taxes Paid |
|
|
(362,407) |
(492,559) |
|
| Long
Term Deposits |
|
- |
(92,600) |
|
|
|
---------- |
---------- |
|
|
|
(362,407) |
(585,159) |
|
|
|
---------- |
---------- |
|
| Net
Cash Generated from Operating activities |
|
(953,889) |
(101,556) |
|
|
|
|
| Cash
(Outflow)/Inflow from Investing Activities |
|
| Capital
Expenditure |
|
|
(111,110) |
(199,235) |
|
| Proceed
from sale of Investment |
|
825,295 |
525,322 |
|
|
|
|
|
---------- |
---------- |
|
| Net
cash inflow (outflow) from investing activities |
714,185 |
326,087 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
|
(239,704) |
224,531 |
|
|
|
|
| Cash
(Outflow)/inflow from Financing Activities |
|
|
|
|
| Payment
of Dividend |
|
|
(32,812) |
180,033 |
|
|
|
|
---------- |
---------- |
|
| Net
(Decrease)/Increase Cash & Cash equivalents |
|
(272,516) |
404,564 |
|
| Cash
& Cash Equivalents at the beginning of the year |
779,621 |
375,057 |
|
|
|
|
---------- |
---------- |
|
| Cash
& Cash Equivalents at the end of the year |
|
507,105 |
779,621 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
Munir M. Ladha |
|
|
Iqbal A. Karim |
|
|
Chief Executive |
|
|
Director |
|
|
| Karachi:
December 7, 1998 |
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 1998 |
|
|
| 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 leasing /
hiring out of safe deposit |
|
| lockers. |
|
|
|
| 2.
ACCOUNTING POLICIES: |
|
|
| 2.1
Accounting Convention: |
|
| 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 deprecia |
|
| tion
is charged in the year of disposal. |
|
|
| iii.
Depreciation is charged on the 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. |
|
|
| 2.6
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 the material timing differences using the liability method, but does
not account for |
|
| any
net deferred tax. |
|
|
|
|
|
|
|
|
1998 |
1997 |
|
|
|
|
Rupees |
Rupees |
|
| 3.
SHARE CAPITAL: |
|
|
|
| issued,
Subscribed & Paid up |
|
|
|
| 49,521
Ordinary shares of Rs. 10/- |
|
|
|
| fully paid in cash. |
|
495,210 |
495,210 |
|
| 99,042
Ordinary shares of Rs, 10/- |
|
|
|
| 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 |
|
|
60,557 |
450,342 |
|
| Income Tax on Staff Salaries |
|
|
18,757 |
6,889 |
|
| Deduction
of Income Tax Supplier |
- |
3,250 |
|
| Kohinoor Trading Co (Pvt)
Limited |
|
440,000 |
440,000 |
|
|
|
---------- |
---------- |
|
|
|
|
535,899 |
917,066 |
|
|
|
========== |
========== |
|
|
| 5.
CONTINGENCIES AND COMMITMENTS: |
|
| Rs.
Nil (1997 Rs. 88,000) |
|
|
| 6.
FIXED ASSETS: |
|
|
|
| ----------------------------------------------------------------------------------------------------------------------------- |
|
COST |
|
DEPRECIATION |
|
| ----------------------------------------------------------------------------------------------------------------------------- |
|
|
Rate |
|
|
| Particulars |
|
As at |
Additions |
As at |
% |
As at |
For the |
As at |
Value as on |
|
|
1/7/1997 |
|
30-06-98 |
|
1/7/1997 |
year |
30-06-98 |
30-06-1998 |
|
| ----------------------------------------------------------------------------------------------------------------------------- |
| Furniture |
|
236,390 |
39,960 |
276,350 |
10 |
35,996 |
24,035 |
60,031 |
216,319 |
|
| Office
Equipment |
342,350 |
71,150 |
413,500 |
10 |
57,833 |
35,567 |
93,400 |
320,100 |
|
| Computers |
|
121,250 |
0 |
121,250 |
10 |
21,238 |
10,002 |
31,240 |
90,010 |
|
| Lockers |
|
32,500 |
0 |
32,500 |
10 |
6,175 |
2,632 |
8,807 |
23,693 |
|
|
|
----------------------------------------------------------------------------------------------- |
|
| Total
Rs. 1998 |
732,490 |
111,110 |
843,600 |
|
121,242 |
72,236 |
193,478 |
650,122 |
|
|
|
=============================================================================================== |
|
| Total
Rs. 1997 |
533,255 |
199,235 |
732,490 |
|
53,225 |
67,917 |
121,142 |
611,346 |
|
|
=============================================================================================== |
|
|
| 7.
TRADE DEBTORS - CONSIDERED GOOD (UNSECURED) |
|
| Receivable against
consultancy fee |
|
300,000 |
300,000 |
|
| Reimbursable consultancy
expenses |
|
13,360 |
13,360 |
|
| Others |
168,677 |
- |
|
|
|
---------- |
---------- |
|
|
|
|
482,037 |
313,360 |
|
|
|
========== |
========== |
|
|
|
|
| 8.
ADVANCES, DEPOSITS & OTHER RECEIVABLES: |
|
|
| Staff |
220,000 |
220,000 |
|
| Prepayments |
|
|
55,203 |
110,284 |
|
|
|
---------- |
---------- |
|
|
|
|
275,203 |
330,284 |
|
|
|
|
========== |
========== |
|
|
|
|
|
1998 |
1997 |
|
|
|
Rupees |
Rupees |
|
| 9
SHORT TERM INVESTMENT |
|
|
|
|
|
|
| 1997 |
1998 |
|
|
|
| (No. of |
(No. of |
|
|
|
| shares) |
shares) |
|
|
|
|
Banks & Investment
Com13anies |
|
| 33 |
- |
PICIC |
|
|
- |
459 |
|
|
|
|
|
|
|
|
|
Textile Composite |
|
|
| 554 |
- |
Crescent Textile Mills
Ltd, |
- |
11,076 |
|
| 54 |
- |
Kohinoor Textile Mills
Ltd. |
- |
464 |
|
|
|
|
|
|
|
|
Jute |
|
|
|
| 119 |
119 |
Pakistan Jute &
Synthetics Ltd, |
629 |
629 |
|
|
|
|
|
|
|
Fuel & Energy |
|
|
| 49 |
- |
P.S.O. |
|
- |
13,496 |
|
|
|
|
|
|
|
|
Miscellaneous |
|
