| International Multi Leasing Corporation
Limited |
|
|
|
|
|
|
| Annual
Report 2000 |
|
|
|
| CONTENTS |
|
|
| Corporate
Information |
|
| Notice
of Annual General Meeting |
|
| Directors'
Report |
|
| Auditors' Report to the Members |
|
| Balance
Sheet as at June 30, 2000 |
|
| Profit
& Loss Account for the year ended June 30, 2000 |
|
| Cash Flow
Statement for the year ended June 30, 2000 |
|
| Statement
of Changes in Equity for the year ended June 30, 2000 |
|
| Notes
to the Accounts |
|
| Pattern of Shareholding
as at June 30, 2000 |
|
|
|
|
| CORPORATE
INFORMATION |
|
|
| Board
of Directors |
|
| Sh.
Amjad Rashid |
|
Director |
|
| Mr.
Muhammad Arshad Naeem |
Director |
|
| Sh.
Atif Rashid |
|
Director |
|
| Mr.
Muhammad Toufique Amdani |
Director |
|
| Mr.
Muhammad Sarwar Sh. |
|
Director |
|
| Mr.
Arshad A'la Syed |
|
Director ICP-Nominee |
|
| Mr.
Muhammad Rafiq |
|
Chief Executive /
Director |
|
|
| Company
Secretary |
|
| Mr.
Fazal H. Rizwan |
|
|
| Auditors |
|
| M/s
Ford, Rhodes,' Robson, Morrow |
|
| Chartered
Accountant |
|
|
| Bankers
& Lending Institutions |
|
| Allied
Bank of Pakistan Limited |
|
| National
Development Finance Corporation |
|
| Habib
Bank AG Zurich |
|
| Metropolitan
Bank Limited |
|
| Bank
of Punjab |
|
|
| Legal Advisor |
|
| Bokhari
Aziz & Karim |
|
| Advocates
& Solicitors |
|
|
| Registrars
& Share Transfer Office |
|
| Software
(Pvt) Limited |
|
| 5/79,
Usman Block, |
|
| New
Garden Town, Lahore. |
|
| Phone:
5865794-5 |
|
|
| Registered
Office & Head Office |
|
| 2nd
Floor, 89-C, |
|
| Jail
Road, Lahore. |
|
| (042)
7586235-6 |
|
| (042) 7586234 |
|
| imlcpk@brain.net.pk |
|
|
| Karachi
Office |
|
| 1106-1110
Kashif Centre, |
|
| Shahrah-e-Faisal,
Karachi. |
|
| Tel:
(021) 5662054 |
|
| Fax: (021) 5683010 |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the Tenth Annual General Meeting of the shareholders of
INTERNATIONAL MULTI |
|
| LEASING
CORPORATION LIMITED will be held on Monday, November 27, 2000, at 11 a.m. at
its Registered |
|
| Office
at 2nd Floor, 89-C, Jail Road, Lahore, to transact the following business: |
|
|
| Ordinary
Business |
|
|
| 1.
To confirm the Minutes of the Extra Ordinary General Meeting held on October
21, 2000. |
|
| 2.
To receive, consider and adopt the Audited Accounts for the year ended June
30, 2000, together with Directors' |
|
| and
Auditors' Report thereon. |
|
| 3.
To appoint auditors and fix their remuneration. The present auditors M/s
Ford, Rhodes, Robson, Morrow, |
|
| Chartered
Accountants, retire and being eligible offer themselves for re-appointment. |
|
| 4.
Any other business with the permission of the Chair. |
|
|
|
BY ORDER OF THE BOARD |
|
|
| 2nd
floor, 89-C, Jail Road, Lahore |
|
Fazal H. Rizwan |
|
| November
4, 2000 |
|
Company Secretary |
|
|
| NOTES: |
|
|
| 1.
The Share Transfer Books of the Company will remain closed from November19,
2000, to November 27, |
|
| 2000.
(both days inclusive). |
|
|
| 2.
A member eligible to attend and vote at this meeting may appoint another
member as his / her proxy to attend |
|
| and
vote instead of him/her. Proxies in order to be effective must be received by
the company at the Registered |
|
| Office
not less than 48 hours before the time for holding the meeting. |
|
|
| 3.
An individual beneficial owner of CDC, entitled to attend and vote at this
meeting, must bring his / her original |
|
| NIC
or Passport to provide his / her identity, in case of proxy must enclose an
attested copy of his / her NIC |
|
| or
Passport. In case of institution being the beneficial owner, notarially
certified copy of the power of attorney |
|
| or
other authority, together with the proof of identity of such nominee, is
required for admittance to the meeting. |
|
|
| 4.
Shareholders are requested to notify the change of address, if any, to
Registrars, M/s Software (Pvt) Limited, |
|
| 5/79
Usman Block, New Garden Town, Lahore. Telephone 5865794-5. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
directors are pleased to present their 10th Annual Report together with the
Audited Accounts of INTERNATIONAL |
|
| MULTI
LEASING CORPORATION LIMITED for the year ended June 30, 2000. |
|
|
| Financial
Results |
|
Rupees |
|
| Income
from Operation |
|
23,906,425 |
|
|
| EXPENDITURE |
|
| Administrative
and operating expenses |
|
14,558,339,339 |
|
| Financial
charges |
|
4,537,431 |
|
|
|
19,095,770 |
|
|
| Net
profit before tax |
|
4,810,655 |
|
| Less: Taxation |
|
300,000 |
|
| Profit after tax |
|
4,510,655 |
|
| Unappropriated
Profit Brought Forward |
|
17,078,545 |
|
| Profit
available for Appropriations |
|
21,589,200 |
|
|
| Appropriations |
|
|
| Transfer
to Capital reserve - Statutory Reserve |
|
902,131 |
|
| Transfer
to Capital reserve - Deferred Taxation |
|
600,000 |
|
|
---------- |
|
|
1,502,131 |
|
|
========== |
|
| Unappropriated
Profit Carried Forward |
|
20,087,069 |
|
|
| Operating
Results |
|
| The
year under review was a difficult year due to economic and political
uncertainty in the country. Leasing operations |
|
| were
adversely affected due to declining opportunities for investments and
increase in the operating costs. However, |
|
| your
company managed to maintain the pattern of profitability and earned a net
profit before tax of Rs. 4.810 million |
|
| while
gross investment in leases stood at Rs. 133.216 million. In line with its
declared policy, the company followed |
|
| its
lending practices by diversifying its exposure and concentrating on small
leases instead of big ones. Its portfolio |
|
| is
evenly spread and the recovery of lease rentals was also satisfactory. |
|
|
| Economy |
|
| The
economy during the year under review was characterized by ups and downs, and
expectations and apprehensions. |
|
| At
the end of fiscal year 1999-2000, a number of favourable developments did
emerge. The GDP growth rate improved |
|
| mainly
due to excellent performance of the agriculture sector. The exports also
registered increase and went up to $ |
|
| 8.50
billion from approximately $ 8.00 billion during the previous year. Despite
above the industrial performance had |
|
| been
very poor. The government has declared the recovery of economy as its
foremost important priority. The seriousness |
|
| of
the government can be gauged from the fact that it had remained firm to
document economy despite stiff resistance |
|
| from
the trading community. It is expected that with the implementation of the
government's economy recovery |
|
| plan,
revival will soon be witnessed. |
|
|
| Auditors |
|
| The
Auditors M/s Ford, Rhodes, Robson, Morrow Chartered Accountants, retire and
offer themselves for reappointment. |
|
|
| Pattern
of Shareholding |
|
| The
pattern of shareholdings as On June 30, 2000 is enclosed in the Annual
Report. |
|
|
| Staff |
|
| The
Directors are pleased to place on record their appreciation for the hard work
and dedicated efforts of all the staff |
|
| members. |
|
|
|
On behalf of Board |
|
|
| Lahore |
|
Muhammad Rafiq |
|
| October
21, 2000 |
|
Chief Executive |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of INTERNATIONAL MULTI LEASING
CORPORATION LIMITED |
|
| as
at June 30, 2000 and the related profit and loss account, cash flow statement
and statement of changes in equity |
|
| 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. |
|
|
| It
is the responsibility of the company's management to establish and maintain a
system oŁ internal control, and prepare |
|
| and
present the above said statements in conformity with the approved accounting
standards and the requirements of |
|
| the
Companies Ordinance, 1984. Our responsibility is to express an opinion on
these statements based on our audit. |
|
|
| We
conducted our audit in accordance with the auditing standards as applicable
in Pakistan. These standards require |
|
| that
we plan and perform the audit to obtain reasonable assurance about whether
the above said statements are free of |
|
| any
material misstatement. An audit includes examining on a test basis, evidence
supporting the amounts and disclosures |
|
| in
the above said statements. An audit also include assessing the accounting
policies and significant estimates made |
|
| by
management, as well as, evaluating the overall presentation of the above said
statements. We believe that our audit |
|
| provides
a reasonable basis for our opinion and after due verification, 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 and 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 further in accordance with accounting policies
consistently |
|
| applied; |
|
|
| ii)
the expenditure incurred during the year was for the purpose of the company's
business' |
|
| and |
|
|
| iii)
the business conducted, investments made and the 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, cash flow statement and statement of changes
in equity together |
|
| with
the notes forming part thereof conform with approved accounting standards as
applicable in |
|
| Pakistan,
and, give 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
affairs as at June |
|
| 30,
2000 and of the profit its cash flow and changes in equity for the year then
ended; and |
|
|
| (d)
in our opinion, Zakat deductible at source under the Zakat and Ushr
Ordinance, 1980 (XVIII of 1980), |
|
| was
deducted by the company and deposited in the Central Zakat Fund established
under section 7 |
|
| of
the Ordinance. |
|
|
| Lahore |
|
|
|
Ford, Rhodes, Robson,
Morrow |
|
| October
21, 2000 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET |
|
| AS
AT JUNE 30, 2000 |
|
|
|
|
Notes |
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| Tangible
fixed assets |
|
3 |
1,657,488 |
2,101,738 |
|
| Investment
in lease finance |
|
4 |
|
|
| Minimum
lease payments receivable |
|
115,141,623 |
125,601,753 |
|
| Add:
Residual value of leased assets |
|
18,074,410 |
17,121,383 |
|
|
----------- |
----------- |
|
| Gross
lease payment receivable |
|
133,216,033 |
142,723,136 |
|
| Less:
Un-earned mark-up |
|
(22,841,732) |
(31,619,402) |
|
|
----------- |
----------- |
|
| Net
investment in lease finance |
|
110,374,301 |
111,103,734 |
|
| Less:
Current maturity |
|
(50,525,607) |
(39,684,383) |
|
|
----------- |
----------- |
|
|
59,848,694 |
71,419,351 |
|
| Long
term deposits |
|
5 |
269,500 |
550,060 |
|
| Long
term investments |
|
6 |
1,689,540 |
1,489,540 |
|
|
----------- |
----------- |
|
|
63,465,222 |
75,560,689 |
|
| Current
assets |
|
|
|
| Short
term finance |
|
7 |
23,900,000 |
21,498,776 |
|
| Net
investment in lease finance-Current maturity |
8 |
40,735,178 |
32,237,517 |
|
| Security
deposits - current portion |
|
|
277,560 |
348,800 |
|
| Advances,
prepayments and other receivables |
|
9 |
4,425,230 |
7,322,326 |
|
| Cash
and bank balances |
|
10 |
1,307,436 |
6,730,101 |
|
|
|
----------- |
----------- |
|
|
|
70,645,404 |
68,137,520 |
|
| Current
liabilities |
|
11 |
(31,044,916) |
(45,500,1351 |
|
|
|
----------- |
----------- |
|
| Working
capital |
|
39,600,488 |
22,637,385 |
|
|
----------- |
----------- |
|
| Total
capital employed |
|
103,065,710 |
98,198,074 |
|
|
|
|
| Less:
Long term and deferred liabilities |
|
|
|
| Long
term loan - secured |
|
12 |
-- |
-- |
|
| Obligations
under finance lease |
|
13 |
208,617 |
961,737 |
|
| Marginal
deposits on lease arrangements |
|
14 |
16,047,199 |
15,123,538 |
|
| Deferred
liabilities - Gratuity |
|
842,751 |
656,311 |
|
|
----------- |
----------- |
|
|
17,098,567 |
16,741,586 |
|
|
----------- |
----------- |
|
| Net
capital employed |
|
85,967,143 |
81,456,488 |
|
|
========== |
========== |
|
| REPRESENTED
BY |
|
|
|
| Share capital |
|
15 |
54,000,000 |
54,000,000 |
|
| Capital
reserve - Statutory reserve |
|
16 |
9,280,074 |
8,377,943 |
|
| Capital
reserve - Deferred taxation |
|
17 |
2,600,000 |
2,000,000 |
|
| Unappropriated
profits |
|
|
20,087,069 |
17,078,545 |
|
| Contingencies
and commitments |
|
27 |
-- |
-- |
|
|
|
----------- |
----------- |
|
|
85,967,143 |
81,456,488 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
Chief Executive |
|
Director |
|
Director |
|
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
Notes |
2000 |
1999 |
|
|
|
Rupees |
Rupees |
|
|
| REVENUE |
|
| Income
from lease operations |
|
18 |
18,653,669 |
18,266,752 |
|
| Other income |
|
19 |
5,252,756 |
6,308,534 |
|
|
|
----------- |
----------- |
|
|
|
23,906,425 |
24,575,286 |
|
| EXPENDITURE |
|
|
|
| Administrative
and operating expenses |
|
20 |
14,558,339 |
11,518,548 |
|
| Financial
charges |
|
21 |
4,537,431 |
5,710,393 |
|
|
|
----------- |
----------- |
|
|
|
19,095,770 |
17,228,941 |
|
|
|
----------- |
----------- |
|
| Profit
before tax |
|
|
4,810,655 |
7,346,345 |
|
| Taxation |
|
22 |
300,000 |
120,986 |
|
|
----------- |
----------- |
|
| Profit
after tax |
|
4,510,655 |
7,225,359 |
|
| Unappropriated
profit brought forward |
|
17,078,545 |
18,701,258 |
|
|
----------- |
----------- |
|
| Profit
available for appropriation |
|
21,589,200 |
25,926,617 |
|
|
| Appropriations
- |
|
| Transfer
to capital reserve - Statutory reserve |
|
902,131 |
1,448,072 |
|
| Transfer
to capital reserve - Deferred taxation |
|
600,000 |
2,000,000 |
|
| Proposed
dividend @ nil (1999: 10%) |
|
-- |
5,400,000 |
|
|
----------- |
----------- |
|
|
1,502,131 |
8,848,072 |
|
|
----------- |
----------- |
|
| Unappropriated
profit carried forward |
|
20,087,069 |
17,078,545 |
|
|
========== |
========== |
|
| Earning
per share |
|
23 |
0.84 |
1.34 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
Chief Executive |
|
Director |
|
Director |
|
|
|
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
2000 |
1999 |
|
|
Rupees |
Rupees |
|
| Cash
flow from operating activities |
|
| Profit
before tax |
|
4,810,655 |
7,346,345 |
|
| Adjustment
for: |
|
|
|
| Depreciation |
|
809,463 |
768,649 |
|
| Profit
on disposal of fixed assets |
|
(37,921) |
(142,019) |
|
| provision
for doubtful debts |
|
4,157,640 |
1,953,950 |
|
| Deferred
liabilities - Gratuity |
|
322,874 |
213,758 |
|
|
----------- |
----------- |
|
|
5,252,056 |
2,794,338 |
|
|
----------- |
----------- |
|
|
10,062,711 |
10,140,683 |
|
|
| (Increase)/Decrease
in current assets |
|
|
| Short
term finance |
|
(2,401,224) |
(1,154,505) |
|
| Advances,
deposits, prepayments and other receivables |
|
|
|
| (other
than provision for doubtful debts) |
|
(2,673,454) |
(462,833) |
|
|
----------- |
----------- |
|
|
(5,074,678) |
(1,617,338) |
|
|
| Increase/(Decrease)
in current liabilities |
|
| Current
liabilities |
|
(4,462,606) |
1,514,605 |
|
|
----------- |
----------- |
|
|
525,427 |
10,037,950 |
|
|
| Tax paid |
|
(1,443,780) |
(133,143) |
|
| Gratuity paid |
|
(136,434) |
-- |
|
| Dividend paid |
|
(5,221,789) |
-- |
|
|
----------- |
----------- |
|
| Net
cash from operating activities and |
|
| balance
carried forward |
|
(6,276,576) |
9,904,807 |
|
|
|
|
| Cash
flow from investing activities |
|
|
|
| Purchase
of operating fixed assets |
|
(389,654) |
(1,091,200) |
|
| Sale
proceeds of fixed assets |
|
62,360 |
456,000 |
|
| Net
investment in lease finance |
|
729,433 |
(1,092,906) |
|
| Long
term deposits |
|
351,800 |
(240,910) |
|
| Marginal
deposits on lease arrangements |
|
1,657,527 |
816,093 |
|
| Long
term investments |
|
(200,000) |
(700,000) |
|
|
----------- |
----------- |
|
| Net
cash used in investing activities |
|
2,211,466 |
(1,852,923) |
|
|
| Cash
flow from financing activities |
|
| Long
term loans - repayments |
|
(400,000) |
(1,800,000) |
|
| Obligations
under finance lease |
|
-- |
645,000 |
|
| Payment
of obligation under finance lease |
|
(957,555) |
(682,257) |
|
|
----------- |
----------- |
|
| Net
cash used in financing activities |
|
(1,357,555) |
(1,837,257) |
|
|
----------- |
----------- |
|
| Net
increase/(decrease) in cash and cash equivalents |
|
(5,422,665) |
6,214,627 |
|
| Cash
and cash equivalents at the beginning of the year |
|
6,730,101 |
515,474 |
|
|
----------- |
----------- |
|
| Cash
and cash equivalents at the end of the year |
|
1,307,436 |
6,730,101 |
|
|
========== |
========== |
|
|
|
|
Chief Executive |
|
Director |
|
Director |
|
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
|
|
|
Share |
Statutory |
Capital |
Unappropriated |
profit |
Total |
|
|
capital |
Reserve |
Reserve |
Profit |
for the year |
|
|
|
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
|
|
| Balance
as at July 01, 1998 |
|
54,000,000 |
6,929,871 |
-- |
18,701,258 |
-- |
79,631,129 |
|
| Net
profit for the year |
|
-- |
-- |
-- |
-- |
7,225,359 |
7,225,359 |
|
| Appropriations |
|
|
|
| Capital
reserve - Statutory reserve |
-- |
1,448,072 |
|
-- |
(1,448,072) |
-- |
|
| Capital
reserve - deferred taxation |
-- |
-- |
2,000,000 |
-- |
(2,000,000) |
-- |
|
| Proposed
dividend |
|
-- |
-- |
-- |
-- |
(5,400,000) |
(5,400,000) |
|
| Unappropriated
profit |
|
-- |
-- |
-- |
( 1,622,713) |
1,622,713 |
-- |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
|
| Balance
as at June 30, 1999 |
|
54,000,000 |
8,377,943 |
2,000,000 |
17,078,545 |
-- |
81,456,488 |
|
|
|
|
| Net
profit for the year |
|
-- |
-- |
-- |
-- |
4,510,655 |
4,510,655 |
|
| Appropriations |
|
|
|
| Capital
reserve - Statutory reserve |
-- |
902,131 |
-- |
-- |
(902,131 ) |
-- |
|
| Capital
reserve - Deferred taxation |
-- |
-- |
600,000 |
-- |
(600,000) |
-- |
|
| Unappropriated
profit |
|
-- |
-- |
-- |
-- |
(3,008,524) |
-- |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
|
| Balance
as at June 30, 2000 |
|
54,000,000 |
9,280,074 |
2,600,000 |
20,087,069 |
-- |
85,967,143 |
|
|
========== |
========== |
========== |
========== |
========== |
========== |
|
|
|
|
|
|
Chief Executive |
|
Director |
|
Director |
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED JUNE 30, 2000 |
|
|
| 1.
THE COMPANY AND ITS OPERATIONS |
|
| The
Company was incorporated in Pakistan as a public limited company on April 25,
1990 and is listed on |
|
| the
Lahore, Karachi and Islamabad Stock Exchanges. The Company is engaged in the
business of lease |
|
| financing. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
Accounting convention |
|
| The
financial statements are prepared under the historical cost convention. |
|
|
| 2.2
Tangible fixed assets and depreciation |
|
| Own |
|
| Fixed
assets for own use are stated at cost less accumulated depreciation.
Depreciation on these assets |
|
| is
calculated applying the straight line method whereby the cost of assets is
written off over their |
|
| estimated
useful lives. |
|
|
| Full
year's depreciation is charged in the year of addition and no depreciation is
charged in the year |
|
| of deletion. |
|
|
<
