| Pakistan Industrial Leasing Corporation
Limited |
|
|
|
|
|
|
|
| Annual
Report 2001 |
|
|
|
| CONTENTS |
|
|
|
| COMPANY
INFORMATION |
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
| FINANCIAL
HIGHLIGHTS |
|
|
| LEASE
PORTFOLIO |
|
| FIVE
YEARS AT A GLANCE |
|
| DIRECTORS'
REPORT |
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
| BALANCE
SHEET |
|
| PROFIT
AND LOSS ACCOUNT |
|
| CASH
FLOW STATEMENT |
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| NOTES
TO THE ACCOUNTS |
|
| PATTERN
OF HOLDING OF SHARES |
|
|
| LIST
OF BRANCHES |
|
|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
| (in
alphabetical order) |
|
|
| Mr.
Anjum M. Saleem |
|
| Mr.
Jared Omer Vohra |
|
| Mr.
Khalid Bashir |
|
| Mr.
Mazhar Karim (Chairman) |
|
| Mr.
Muhammad Rafi |
|
| Mr. Nasir Shafi |
|
| Mr.
Rashid Ahmed (Chief Executive Officer & Managing Director) |
|
| Mr.
Saifullah Khan (Nominee of PICIC) |
|
| Mr.
S. Hashim Ishaque (Nominee of NIT) |
|
|
| AUDITORS |
|
| Riaz
Ahmad & Company, Chartered Accountants |
|
|
| CORPORATE
SECRETARY |
|
| Mr. Naveed Ali |
|
|
| LEGAL
ADVISORS |
|
| Hassan
& Hassan, Advocates |
|
|
| RATING
AGENCY |
|
| Pakistan
Credit Rating Agency (Private) Limited |
|
|
| REGISTERED/HEAD
OFFICE |
|
| 4th
& 5th floors, PAAF Building, |
|
| 7-D
Kashmir/Egerton Road, Lahore. |
|
| Tel:
92-42-111-666-333, 6366067-8, 6311178-80 |
|
| Fax:
92-42-6369272-6311184 Telex: 47154 PILC PK |
|
| E-mail:
info@pilcorp.com |
|
| Web
site: www.pilcorp.com |
|
|
|
| BAUKERS |
|
| Bank of Khyber |
|
| Habib
Bank Limited |
|
| National
Bank Of Pakistan |
|
| Oman
International Bank SA.O.G |
|
| Prime
Commercial Bank Limited |
|
| Soneri
Bank Limited |
|
| Standard
Chartered Grindlays Bank |
|
| Platinum
Commercial Bank Limited |
|
| Union
Bank Limited |
|
|
| LENDERS |
|
| Foreign |
|
| Asian
Development Bank (ADB), Manila, Philippines |
|
| Commonwealth
Development Corporation (CDC), London, UK |
|
| German
Investment & Development Company (DEG),Germany |
|
| International
Finance Corporation (IFC), Washington, USA |
|
| Netherlands
Development Finance Corporation (FMO), Netherlands |
|
|
| Local |
|
| Al-Baraka
Islamic Bank B.S.C. (E.C.) |
|
| Pakistan
Kuwait Investment Company (Private) Limited |
|
| Pak
Libya Holding Company (Private) Limited |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| NOTICE
is hereby given that the 14th Annual General Meeting of the shareholders of
Pakistan Industrial |
|
| Leasing
Corporation Limited will be held on Wednesday, December 26, 2001 at 11:00
a.m. at Holiday Inn.
~"i~ |
|
| Kashmir/Egerton
Road, Lahore to transact the following business: |
|
|
| 1.
To receive, consider and adopt the audited accounts of the company for the
year ended June 30, 2001 |
|
| together
with Directors' and Auditors' Reports thereon. |
|
|
| 2.
To approve, as recommended by the Directors, the payment of Cash Dividend @
10% i.e. Rs. 1.00 per |
|
| share
for the year ended June 30, 2001. |
|
|
| 3.
To appoint Auditors and fix their remuneration. |
|
|
|
|
By Order Of The Board |
|
|
|
|
|
|
|
NAVEED ALI |
|
| Lahore:
November 22, 2001 |
|
Corporate Secretary |
|
|
| NOTES: |
|
|
| 1.
The Members' Register will remain closed from December 20, 2001 to December
26, 2001 (both days |
|
| inclusive).
Transfer received in order at the Registered Office by the close of business
hours on |
|
| December
19, 2001 will be treated in time for entitlement of dividend. |
|
|
| 2.
A member eligible to attend and vote at this meeting may appoint another
member as his/her proxy to |
|
| attend
and vote in the meeting. Proxies in order to be effective must be received by
the company at the |
|
| Registered
Office not later than 48 hours before the time of holding the meeting. |
|
|
| 3.
CDC account holders will further have to follow the under mentioned
guidelines as laid down in circular |
|
| No.
1 dated January 26, 2000 of the Securities and Exchange Commission of
Pakistan for attending the |
|
| meeting: |
|
|
|
|
| i)
In case of individuals, the account holder or sub-account holder and/or the
person whose |
|
| securities
are in group account; and their registration details are uploaded as per the
Regulations, |
|
| shall
authenticate his/her identity by showing his/her original National Identity
Card (NIC) or |
|
| original
passport at the time of attending the meeting. The shareholders registered on
CDS are |
|
| also
requested to bring their Participant I.D. numbers and account numbers in CDS. |
|
|
| ii)
In case of corporate entity, the Board of Directors' resolution/power of
attorney with specimen |
|
| signature
of the nominee shall be produced (unless it has been provided earlier) at the
time of |
|
| meeting. |
|
|
|
|
|
|
|
| FINANCIAL
HIGHLIGHTS (1997-2001) |
|
|
|
|
|
|
(Rupees in thousand) |
|
|
|
|
|
|
| BALANCE
SHEET |
June-97 |
June-98 |
June-99 |
June-00 |
June-01 |
|
|
|
|
| Paid-up Capital |
|
181,578 |
181,578 |
217,893 |
217,693 |
217,893 |
|
| Reserves
and Retained Earnings |
346,129 |
388,673 |
358,188 |
363,325 |
366,372 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Net Worth |
|
527,707 |
570,251 |
576,081 |
581,218 |
584,265 |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
|
| Long
Term Loans-Foreign |
1,901,954 |
1,740,982 |
1,461,931 |
1,029,125 |
761,304 |
|
| Long
Term Loans-Local |
13,241 |
35,029 |
177,226 |
610,210 |
948,848 |
|
| Liabilities
Against Assets subject to |
|
|
| Finance Lease |
|
-- |
-- |
6,415 |
5,400 |
2,820 |
|
| Long
Term Deposits -Against Leases |
371,592 |
395,810 |
392,335 |
485,789 |
558,482 |
|
| Certificates
Of Investment |
555,154 |
856,915 |
630,891 |
605,399 |
774,627 |
|
|
|
|
| Current
Liabilities |
563,533 |
550,077 |
738,421 |
739,111 |
751,167 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Total
Liabilities |
3,405,474 |
3,578,813 |
3,407,219 |
3,475,034 |
3,797,248 |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
|
| Operating
Fixed Assets |
20,740 |
17,368 |
16,253 |
23,769 |
32,597 |
|
| Long
Term Investments |
64,457 |
64,457 |
59,457 |
147,061 |
155,210 |
|
| Net
Lease Receivables |
3,007,121 |
3,079,470 |
2,746,520 |
2,821,124 |
3,299,774 |
|
| Long
Term Loan and Deferred Cost |
55,148 |
42,625 |
29,618 |
23,698 |
14,648 |
|
| Long
Term Deposits |
52,232 |
191,454 |
226,457 |
252,044 |
311,189 |
|
| Non
Lease Current Assets |
733,483 |
753,690 |
904,995 |
788,556 |
568,095 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Total Assets |
|
3,933,181 |
4,149,064 |
3,983,300 |
4,056,252 |
4,381,513 |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
|
| INCOME
STATEMENT |
|
| Gross
Income From Lease Financing |
535,253 |
581,854 |
536,967 |
504,353 |
529,727 |
|
| Return
on Placements and Advances |
75,579 |
101,932 |
114,771 |
85,898 |
125,265 |
|
| Income
From Investments and Others |
3,004 |
2,527 |
1,623 |
6,592 |
3,675 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Total Income |
|
613,836 |
686,313 |
653,361 |
596,843 |
658,667 |
|
|
|
|
| Financial
Expenses |
446,294 |
488,697 |
484,699 |
430,497 |
480,232 |
|
| Operating
Expenses |
45,313 |
51,094 |
46,595 |
49,601 |
62,747 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Total Expenses |
|
491,607 |
539,791 |
531,294 |
480,098 |
542,979 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Profit
Before Provisions |
122,229 |
146,522 |
122,067 |
116,745 |
115,688 |
|
| Provision
for Doubtful Receivables |
37,386 |
98,878 |
95,095 |
88,749 |
83,903 |
|
| Provision
for Taxation |
4,400 |
5,100 |
4,800 |
6,517 |
6,948 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Net Income |
|
80,443 |
42,544 |
22,172 |
21,479 |
24,837 |
|
|
|
========== |
========== |
========== |
========== |
========== |
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
Directors of your Company are pleased to present the annual report with
audited financial statements |
|
| for
the year ended June 30, 2001, |
|
|
| FINANCIAL
RESULTS: |
|
| The
results of operations of the Company for the year under review are summarized
below: |
|
|
|
|
(Rupees in thousands) |
|
|
|
| Revenue |
|
|
|
658,666 |
|
| Expenditure |
|
|
|
(542,979) |
|
| Provision
for doubtful receivables |
|
(75,800) |
|
| Provision
for diminution in value of equity investments |
(8,103) |
|
|
|
|
------------------ |
|
| Profit
before taxation |
|
|
31,784 |
|
| Provision
for taxation |
|
|
(6,948) |
|
|
|
|
------------------ |
|
| Profit
after taxation |
|
|
24,836 |
|
| Un-appropriated
profit brought forward |
|
288 |
|
| Transferred
from revenue reserves |
|
10,000 |
|
|
|
|
------------------ |
|
| Profit
available for appropriation |
|
|
35,124 |
|
|
|
|
------------------ |
|
|
| Appropriations: |
|
| Proposed
cash dividend @ 10% |
|
|
(21,789) |
|
| Reserve
for contingencies |
|
|
(5,000) |
|
| Transferred
to reserves for deferred tax |
|
(8,000) |
|
|
|
|
------------------ |
|
| Un-appropriated
profit carried forward |
|
335 |
|
|
|
========== |
|
|
|
| DIVIDEND: |
|
| The
Board of Directors recommended a cash dividend @ 10% for the year ended June
30, 2001. |
|
|
| FINANCIAL
REVIEW: |
|
| Despite
difficult business and economic conditions, Company's performance remained
positive and showed |
|
| an
improvement over the last year figures. During the period under review, your
Company disbursed an |
|
| amount
of Rs. 1,309 million, the highest since its inception in a year, as against
Rs. 725 million last year. |
|
| Consequently,
net investment in leases increased from Rs. 3,181 million to Rs. 3,732
million i.e. an increase |
|
| of 17.33%. |
|
|
| PILCORP's
car-financing scheme has received an enthusiastic market response as quantum
of auto leasing |
|
| in
the year under review has been 86.88% (Rs. 1,136.84 million) of the total
disbursements. Disbursements |
|
| for
industrial machinery & equipment accounted for 10.14 % (Rs. 132.67
million) and office equipment 2.98% |
|
| (Rs.
38.95 million). |
|
|
| During
the year Company's total revenue increased to Rs. 659 million as compared to
Rs. 597 million in the |
|
| last
year, which represents an increase of 10.36%. Total expenditure increased by
Rs. 63 million representing |
|
| an
increase of 13%. Financial charges increased by 12.34% and administrative
expenses increased by |
|
| 26.50%,
which is a consequence of inflationary pressure and increased business volume
during the year. The |
|
| Company
also recognizes the need for continuing with the prudent policy of providing
for doubtful debts, |
|
| hence
an amount of Rs. 75.8 million was provided for doubtful debts. In addition,
Rs. 8.102 for diminution in |
|
| value
of equity investments has also been provided. |
|
|
| During
this period, the Company established two additional branches, one at Karachi
(second branch) and |
|
| the
other one at Rawalpindi, thereby bringing total branch strength to eight in
addition to its head office at |
|
| Lahore.
Representative offices have also been set-up in Sahiwal and Okara. |
|
|
|
| CREDIT
RATING: |
|
| Pakistan
Credit Rating Agency (Private) Limited (PACRA) assigned to PILCORP entity
rating of 'BBB+' |
|
| (Triple
B Plus) for long term and A2 (A Two) for short term. Both ratings signify
"good credit quality", hence |
|
| confirming
the ability of the Company to withstand the pressure of difficult economic
situations. The rating for |
|
| already
issued secured 5-year TFCs of Rs. 287.50 million and 3-year TFCs of Rs.
334.13 million has been 'A-' |
|
| (A minus). |
|
|
|
| EARNINGS
PER SHARE: |
|
| The
after tax earnings attributable to each share work out to be Rs. 1.14 on the
outstanding shares as on June |
|
| 30, 2001. |
|
|
| FUNDS
MOBILIZATION: |
|
| The
liquidity position during the period remained stable and the Company financed
its lease portfolio through |
|
| 2ND
Term Finance Certificates issue of Rs. 334.13 million, long-term local
currency loans, certificates of |
|
| investment
(COI's) and funds raised from the financial sector. |
|
|
| Your
Company is the only leasing company in Pakistan, which has successfully
raised long-term funds |
|
| through
two separate issues of Term Finance Certificates. The Company plans to raise
additional long-term |
|
| funds
through another TFC issue of Rs. 600.00 million to meet its future funding
requirements. Messrs Aqeel |
|
| Karim
Dhedhi Securities (Private) Limited have already been appointed as advisors
to our proposed issue. |
|
| We
anticipate placement of TFCs in the market for subscription by January 2002. |
|
|
|
| ECONOMY
AND FUTURE OUTLOOK: |
|
| The
year under review witnessed significant efforts of the Government to
revitalize the economy and to make |
|
| investment
climate conducive for foreign investment. The Government's commitment to
improve the |
|
| functioning
of financial sector is also expected to result in setting a direction and
pace for a balanced |
|
| economic
growth. |
|
|
| With
the strenuous efforts of Leasing Association of Pakistan, the Government,
through Finance Ordinance |
|
| 2001,
allowed following incentives to the leasing sector: |
|
|
| *
First year depreciation allowance/initial depreciation allowance was
restored. |
|
| *
Cost of vehicles for the purpose of claiming tax depreciation was increased
from Rs. 600,000/- to |
|
| Rs. 750,000/-. |
|
|
| All
this was possible with the support of the Minister of Finance, Chairman
Securities and Exchange |
|
| Commission
of Pakistan and Chairman Central Board of Revenue. |
|
|
| It
is expected that the above incentives would positively help the leasing
industry, being the sole provider of |
|
| medium
term funds, to contribute its share of obligation for economic and social
development of the country. |
|
|
| Consequent
to September 11 events in America, various initiatives have been taken by the
international |
|
| community
and institutions to provide relief to Pakistan. The steps taken so far
include lifting of sanctions, |
|
| liberal
rescheduling of loans, increased access to markets, besides commitments of
grants and soft term |
|
| loans.
This will give boost to the economic activities in the country. |
|
|
| The
recent fall in lending rates and Government's continuous interaction with the
business community auger |
|
| well
for the country, which is already on the path of economic revival. |
|
|
| Your
Company is well positioned to meet the future challenges. We need to harness
innovative funding |
|
| sources
and develop a formidable human resource. We wish to establish norms of good
professional |
|
| behavior,
prudent business practices, responsible organizational conduct, fair market
competition and |
|
| effective
risk management at all levels so that an overall culture of professionalism
and competence is |
|
| created. |
|
|
| ACKNOWLEDGMENT: |
|
| We
express our heartfelt gratitude to our valuable clients, banks, financial
institutions, multilateral credit |
|
| agencies
and our shareholders who continued their support and patronage to your
Company. |
|
|
| We
also like to thank the Ministry of Finance, Securities and Exchange
Commission of Pakistan, Central |
|
| Board
of Revenue and State Bank of Pakistan for their continuous support and
guidance. |
|
|
| We
equally appreciate the efforts put in and dedication shown by officers and
staff of the Company for |
|
| managing
Company's affairs successfully. |
|
|
| AUDITORS: |
|
| The
auditors, M/S Riaz Ahmed & Company, Chartered Accountants, retire and
being eligible, offer |
|
| themselves
for re-appointment. |
|
|
| PATTERN
OF SHAREHOLDING: |
|
| The
pattern of shareholding as on June 30, 2001 is presented on page 45. |
|
|
|
|
|
On behalf of the Board |
|
|
|
|
RASHID AHMED |
|
| Lahore: |
|
|
Chief Executive Officer & |
|
| November
22, 2001 |
|
Managing Director |
|
|
|
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed balance sheet of PAKISTAN
INDUSTRIAL LEASING CORPORATION |
|
| LIMITED
as at 30 June, 2001 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 of 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 includes |
|
| 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 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 thereon
have been drawn up in |
|
| conformity
with the Companies Ordinance, 1984, and are in agreement with the books of
account |
|
| 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 expenditure incurred during 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 confirm 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
30 June, 2001 and of the profit, its cash flows 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 Cental Zakat Fund established
under section 7 of |
|
| that ordinance. |
|
|
|
|
|
|
RIAZ AHMED & COMPANY |
|
| LAHORE:
24 November, 2001 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 2001 |
|
|
|
|
|
|
|
NOTE |
2001 |
2000 |
|
|
|
Rupees |
Rupees |
|
| EQUITY
AND LIABILITIES |
|
| SHARE
CAPITAL AND RESERVES |
|
|
|
| Authorized
share capital |
|
| 50,000,000
ordinary shares of Rupees 10 each |
|
500,000,000 |
500,000,000 |
|
|
========== |
========== |
|
|
|
| Issued,
subscribed and paid up share capital |
|
| 21,789,306
ordinary shares of Rupees 10 each |
3 |
217,893,060 |
217,893,060 |
|
|
| Reserves |
|
| Capital reserves |
|
351,736,903 |
338,736,903 |
|
| Revenue
reserves |
|
|
14,635,174 |
24,587,783 |
|
|
------------------ |
------------------ |
|
|
|
366,372,077 |
363,324,686 |
|
|
|
------------------ |
------------------ |
|
|
|
|
584,265,137 |
581,217,746 |
|
|
|
|
| NON-CURRENT
LIABILITIES |
|
|
|
| Redeemable
capital |
|
4 |
755,251,689 |
455,271,257 |
|
| Long
term loans |
|
5 |
446,811,077 |
666,813,301 |
|
| Certificates
of investment |
|
6 |
431,344,427 |
224,232,465 |
|
| Liabilities
against assets subject to finance lease |
7 |
1,225,342 |
2,862,106 |
|
| Long
term deposits |
|
8 |
419,117,334 |
359,602,358 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,053,749,869 |
1,708,781,487 |
|
|
|
| CURRENT
LIABILITIES |
|
|
|
| Current
portion of long term liabilities |
9 |
649,047,430 |
645,975,128 |
|
| Short
term finances |
|
10 |
610,055,000 |
612,440,100 |
|
| Certificates
of investment |
|
6 |
343,282,653 |
381,166,325 |
|
| Creditors,
accrued and other liabilities |
11 |
100,097,494 |
98,122,844 |
|
| Provision
for taxation |
|
|
18,619,880 |
11,672,310 |
|
| Dividend
payable |
|
12 |
22,395,318 |
16,875,751 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,743,497,775 |
1,766,252,458 |
|
| CONTINGENCIES
AND COMMITMENTS |
13 |
|
|
|
|
------------------ |
------------------ |
|
|
|
4,381,512,781 |
4,056,251,691 |
|
|
|
========== |
========== |
|
|
|
|
| The
annexed notes form an integral part of these financial statements. |
|
|
|
|
|
RASHID AHMED |
|
|
|
|
Chief Executive Officer & |
|
|
|
|
Managing Director |
|
|
| NON-CURRENT
ASSETS |
|
|
|
| Tangible
fixed assets |
|
14 |
32,596,670 |
23,769,048 |
|
|
| Net
investment in finance leases |
|
15 |
1,836,473,285 |
1,804,090,923 |
|
|
| Equity
investments |
|
16 |
155,210,074 |
147,061,410 |
|
|
| Long
term loans |
|
17 |
2,682,838 |
5,675,572 |
|
|
| Long
term deposits |
|
18 |
233,501,050 |
200,480,792 |
|
|
| Deferred cost |
|
19 |
11,965,605 |
18,022,272 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
2,272,429,522 |
2,199,100,017 |
|
|
|
| CURRENT
ASSETS |
|
|
|
| Current
portion of net investment in finance leases |
20 |
1,463,300,375 |
1,017,032,857 |
|
| Current
portion of long term deposits |
21 |
77,687,628 |
51,563,060 |
|
| Short
term investments |
|
22 |
67,468,300 |
82,334,095 |
|
| Advances,
deposits, prepayments and |
|
|
| other
receivables |
|
23 |
430,822,222 |
560,139,911 |
|
| Cash
and bank balances |
|
24 |
69,804,734 |
146,081,751 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,109,083,259 |
1,857,151,674 |
|
|
------------------ |
------------------ |
|
|
|
4,381,512,781 |
4,056,251,691 |
|
|
========== |
========== |
|
|
|
MAZHAR KARIM |
|
|
|
Chairman |
|
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 2001 |
|
|
|
|
|
|
|
NOTE |
2001 |
2000 |
|
|
|
Rupees |
Rupees |
|
|
| REVENUE |
|
| Income
from lease financing |
|
25 |
529,726,636 |
504,353,253 |
|
| Return
on investment, short term placements, |
|
|
| loans
and other advances |
|
26 |
125,264,952 |
85,897,880 |
|
| Other income |
|
27 |
3,674,776 |
6,591,487 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
658,666,364 |
596,842,620 |
|
|
|
|
| EXPENDITURE |
|
|
|
| Financial
and other charges |
|
28 |
469,642,349 |
418,047,269 |
|
| Administrative
and other operating expenses |
29 |
62,747,347 |
49,600,921 |
|
| Amortization
of deferred cost |
|
|
10,589,706 |
12,449,838 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
542,979,402 |
480,098,028 |
|
|
|
|
------------------ |
------------------ |
|
| Profit
before provisions |
|
|
115,686,962 |
116,744,592 |
|
|
|
|
|
|
| Provision
for doubtful receivables |
|
75,800,000 |
88,430,765 |
|
| Provision
for diminution in value of equity |
|
|
| investments |
|
|
8,102,695 |
317,846 |
|
|
------------------ |
------------------ |
|
|
|
|
83,902,695 |
88,748,611 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
BEFORE TAXATION |
|
|
31,784,267 |
27,995,981 |
|
| PROVISION
FOR TAXATION |
|
30 |
6,947,570 |
6,517,355 |
|
|
|
|
------------------ |
------------------ |
|
| PROFIT
AFTER TAXATION |
|
|
24,836,697 |
21,478,626 |
|
| UNAPPROPRIATED
PROFIT |
|
| BROUGHT
FORWARD |
|
287,783 |
400,498 |
|
|
|
------------------ |
------------------ |
|
|
|
|
25,124,480 |
21,879,124 |
|
| APPROPRIATIONS |
|
| Transfer
from general reserve |
|
10,000,000 |
41,500,000 |
|
| Transfer
to reserve for contingencies |
|
(5,000,000) |
(5,000,000) |
|
| Transfer
to reserve for deferred tax |
|
(8,000,000) |
(41,749,361) |
|
| Proposed
dividend @ Rupees 1.00 Per share |
|
|
|
| (2000:
Rupees 0.75 per share) |
|
(21,789,306) |
(16,341,980) |
|
|
|
------------------ |
------------------ |
|
|
|
(24,789,306) |
(21,591,341) |
|
|
|
------------------ |
------------------ |
|
| UNAPPROPRIATED
PROFIT |
|
335,174 |
287,783 |
|
|
========== |
========== |
|
| EARNINGS
PER SHARE |
|
31 |
1.14 |
0.99 |
|
|
========== |
========== |
|
|
|
|
| The
annexed notes form an integral part of these financial statements. |
|
|
|
RASHID AHMED |
|
MAZHAR KARIM |
|
|
Chief Executive Officer & |
|
Chairman |
|
|
Managing Director |
|
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30, 2001 |
|
|
|
|
2001 |
2000 |
|
|
|
Rupees |
Rupees |
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
| Profit
before taxation |
|
31,784,267 |
27,995,981 |
|
| Adjustments
to reconcile profit with net cash |
|
| provided
by operating activities |
|
| Provision
for diminution in value of equity investments |
8,102,695 |
317,846 |
|
| Provision
for gratuity |
|
3,954,587 |
3,652,466 |
|
| Provision
for doubtful receivables |
|
75,800,000 |
88,430,765 |
|
| Depreciation |
|
|
5,481,179 |
3,354,922 |
|
| Amortization
of deferred cost |
|
10,589,706 |
12,449,838 |
|
| Financial
charges |
|
469,642,349 |
418,047,269 |
|
| Gain
on sale of equity investments |
|
(394,353) |
(5,013,641) |
|
| Gain
on sale of tangible fixed assets |
|
(38,366) |
(197,421) |
|
|
|
------------------ |
------------------ |
|
|
|
573,137,797 |
521,042,044 |
|
|
|
|
| Cash
flows from operating activities before |
|
| adjustment
of working capital |
|
604,922,064 |
549,038,025 |
|
| (Increase)/decrease
in advances, deposits, |
|
|
|
| prepayments
and other receivables |
|
133,815,463 |
(59,518,810) |
|
| Increase/(decrease)
in creditors, accrued and other |
|
|
| liabilities |
|
|
1,874,459 |
(3,821,949) |
|
|
|
------------------ |
------------------ |
|
| Cash
flows from operating activities |
|
740,611,986 |
485,697,266 |
|
| Financial
charges paid |
|
(466,600,623) |
(481,210,847) |
|
| Gratuity paid |
|
|
(6,941,553) |
(710,931) |
|
| Income tax paid |
|
|
(7,840,333) |
(7,345,664) |
|
|
|
------------------ |
------------------ |
|
| Net
cash generated from/(used in) operating activities |
259,229,477 |
(3,570,176) |
|
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
|
| Investment
in finance leases-Net |
|
(551,449,880) |
(156,303,306) |
|
| Investments
made |
|
(81,373,164) |
(119,715,324) |
|
| Sale
proceeds of investments |
|
80,381,953 |
20,013,641 |
|
| Assets
purchased for own use |
|
(14,909,646) |
(10,967,601) |
|
| Loans
to employees |
|
3,380,723 |
694,635 |
|
| Sale
proceeds of fixed assets |
|
639,211 |
1,824,679 |
|
| Deferred cost |
|
|
(4,533,038) |
(6,809,646) |
|
| Long
term deposits |
|
(59,144,826) |
(25,586,987) |
|
|
|
------------------ |
------------------ |
|
| Net
cash used in investing activities |
|
(627,008,667) |
(296,849,909) |
|
|
| CASH
FLOWS FROM FINANCING ACTIVITIES |
|
| Redeemable
capital |
|
| Obtained |
|
|
489,752,102 |
466,517,032 |
|
| Redeemed |
|
|
(151,114,924) |
(62,261,084) |
|
| Long
term loans |
|
|
(267,820,835) |
(432,806,907) |
|
| Payment
of lease principal amount |
|
(2,580,487) |
(2,545,557) |
|
| Certificates
of investment |
|
|
169,228,290 |
(25,492,078) |
|
| Deposits
from lessees-Net |
|
|
72,692,866 |
93,454,253 |
|
| Short
term finances |
|
|
(2,385,100) |
86,899,758 |
|
| Dividend paid |
|
|
(16,269,739) |
(16,221,104) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash generated from financing activities |
|
291,502,173 |
107,544,313 |
|
|
|
|
|
|
| Net
decrease in cash and cash equivalents |
|
(76,277,017) |
(192,875,772) |
|
|
| Cash
and cash equivalents at the beginning of the year |
146,081,751 |
338,957,523 |
|
|
|
|
------------------ |
------------------ |
|
| CASH
AND CASH EQUIVALENTS AT THE |
|
| END
OF THE YEAR (Note 24) |
|
|
69,804,734 |
146,081,751 |
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these financial statements. |
|
|
|
RASHID AHMED |
|
MAZHAR KARIM |
|
|
Chief Executive Officer & |
|
Chairman |
|
|
Managing Director |
|
|
|
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| FOR
THE YEAR ENDED JUNE 30, 2001 |
|
|
|
|
(AMOUNT IN RUPEES) |
|
|
|
SHARE |
|
CAPITAL
RESERVES |
|
REVENUE RESERVES |
|
TOTAL |
|
|
|
CAPITAL |
|
|
|
|
Premium on |
Reserve for |
Reserve for |
Sub-Total |
General |
Unappropriated |
Sub-Total |
|
|
|
|
Issue of |
Contingencies |
Deferred Tax |
|
Reserve |
Profit |
|
|
|
|
(Note 3) |
Right shares |
(Note 3.3) |
(Note 3.2) |
|
|
|
|
|
| Balance
as on July 01, 1999 |
217,893,060 |
86,976,671 |
167,010,871 |
38,000,000 |
291,987,542 |
65,800,000 |
400,498 |
66,200,498 |
576,081,100 |
|
| Net
profit for the year |
-- |
-- |
-- |
-- |
-- |
-- |
21,478,626 |
21,478,626 |
21,478,626 |
|
| Transfer
from general reserve |
-- |
-- |
-- |
-- |
-- |
(41,500,000) |
41,500,000 |
-- |
-- |
|
| Transfer
to reserve for contingencies |
-- |
-- |
5,000,000 |
-- |
5,000,000 |
-- |
(5,000,000) |
(5,000,000) |
-- |
|
| Transfer
to reserve for deferred tax |
-- |
-- |
-- |
41,749,361 |
41,749,361 |
-- |
(41,749,361) |
(41,749,361) |
-- |
|
| Proposed
dividend |
-- |
-- |
-- |
-- |
-- |
-- |
(16,341,980) |
(16,341,980) |
(16,341,980) |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as on June 30, 2000 |
217,893,060 |
86,976,671 |
172,010,871 |
79,749,361 |
338,736,903 |
24,300,000 |
287,783 |
24,587,783 |
581,217,746 |
|
|
|
|
|
| Net
profit for the year |
-- |
-- |
-- |
-- |
-- |
-- |
24,836,697 |
24,836,697 |
24,836,697 |
|
| Transfer
from general reserve |
-- |
-- |
-- |
-- |
-- |
(10,000,000) |
10,000,000 |
-- |
-- |
|
| Transfer
to reserve for contingencies |
-- |
-- |
5,000,000 |
-- |
5,000,000 |
-- |
(5,000,000) |
(5,000,000) |
-- |
|
| Transfer
to reserve for deferred tax |
-- |
-- |
-- |
8,000,000 |
8,000,000 |
-- |
(8,000,000) |
(8,000,000) |
-- |
|
| Proposed
dividend |
-- |
-- |
-- |
-- |
-- |
-- |
(21,789,306) |
(21,789,306) |
(21,789,306) |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| Balance
as on June 30, 2001 |
217,893,060 |
86,976,671 |
177,010,871 |
87,749,361 |
351,736,903 |
14,300,000 |
335,174 |
14,635,174 |
584,265,137 |
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| The
annexed notes form an integral part of these financial statements. |
|
|
|
RASHID AHMED |
|
MAZHAR KARIM |
|
|
Chief Executive Officer & |
|
Chairman |
|
|
Managing Director |
|
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 2001 |
|
|
| 1.
THE COMPANY AND ITS ACTIVITIES |
|
| The
company was incorporated as a public limited company on January 28, 1987 and
its shares are |
|
| quoted
on all the stock exchanges of Pakistan. It is mainly engaged in the business
of leasing in |
|
| accordance
with the permission granted by Federal Government. It is classified as a
non-banking |
|
| financial
institution (NBFI) and is regulated by the Securities and Exchange Commission
of |
|
| Pakistan. |
|
|
|
|
| 2.
SUMMARYOF SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
Accounting convention |
|
| These
financial statements have been prepared under the historical cost convention. |
|
|
| 2.2
Post employment benefits |
|
|
|
| Defined
contribution plan |
|
| The
Company operates a provident fund scheme covering all its permanent
employees. Equal |
|
| monthly
contributions are made to the fund both by the Company and the employees at
the rate of 10 |
|
| percent
of the basic salary. |
|
|
|
|
| Defined
benefit plan |
|
| The
company also operates funded gratuity scheme for its employees under the
terms of their |
|
| appointments.
Contributions are made annually to this fund on the basis of actuarial
valuation. The |
|
| benefits
are payable to the employees on completion of prescribed qualifying period of
service. In |
|
| measuring
its defined benefit liability, the company recognizes a portion of its
actuarial gains and |
|
| losses
determined by dividing the excess actuarial gains/losses by the expected
average remaining |
|
| lives
of employees as income or expense if the net cumulative unrecognized
actuarial gains and |
|
| losses
at the end of the previous reporting period exceeded the greater of 10
percent value of the |
|
| defined
benefit obligation and 10 percent of the fair value of any plan assets at
that date (Refer to note 29.1) |
|
|
| The
above schemes are recognized by the Commissioner of Income Tax and are
administered by the |
|
| respective
board of trustees. |
|
|
|
|
| 2.3
Foreign currency transactions |
|
| Transactions
in foreign currencies are accounted for in Rupees at the rates of exchange
ruling on the |
|
| date
of the transaction. Monetary assets and liabilities in foreign currencies are
translated into |
|
| Rupees
at the rate of exchange ruling at the balance sheet date except where
exchange risk cover |
|
| has
been obtained. Foreign currency loans registered under the exchange risk
coverage scheme of |
|
| The
State Bank of Pakistan are translated into Rupees at the rates prevailing on
the dates of |
|
| disbursements.
Exchange risk fee, exchange gains and losses are charged to the current
year's |
|
| income. |
|
|
| 2.4
Provision for doubtful receivables |
|
| Provision
for doubtful receivables is made/adjusted after a review of the outstanding
portfolio at year |
|
| end
on the basis of Leasing Companies (Establishment and Regulation) Rules, 2000
issued by |
|
| Securities
and Exchange Commission of Pakistan (SECP) and management's own judgement. |
|
|
| 2.5
Tangible fixed assets and depreciation |
|
|
|
| Owned assets |
|
| Tangible
fixed assets are stated at cost less accumulated depreciation except land
which is stated at |
|
| cost.
Cost of these assets consists of historical cost and directly attributable
costs of bringing the |
|
| assets
to working conditions. Depreciation is charged to income applying the
reducing balance |
|
| method
to write off the cost over the expected remaining useful life of the assets
at the rates given in |
|
| note
14. Full year's depreciation is charged on additions, while no depreciation
is charged on assets |
|
| deleted
during the year. Maintenance and normal repairs are charged to income as and
when |
|
| incurred.
Major renewals and improvements are capitalized. |
|
|
| Leased assets |
|
| These
are stated at lower of present value of minimum lease payments under the
lease agreements |
|
| and
the fair value of assets acquired on lease. Aggregate amount of obligations
relating to assets |
|
| subject
to finance lease is accounted for at net present value of liabilities. Assets
so acquired are |
|
| depreciated
over the useful life of the assets on the reducing balance method at the
rates given in |
|
| note
14. Depreciation of leased assets is charged to income. |
|
|
| 2.6 Taxation |
|
|
|
|
|
|
| Current |
|
|
|
| The
charge for current taxation is based on the taxable income at the current tax
rates after |
|
| taking
into account the tax credits and tax rebates available, if any. |
|
|
| Deferred |
|
| Deferred
tax is accounted for by using the liability method on all major timing
differences excluding |
|
| tax
effect on 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 (Refer to note No.
3.2). |
|
|
| 2.7 Investments |
|
|
| Long
term investments are stated at cost. Provision for diminution in the value of
investments is made |
|
| if
considered permanent. Short term investments are stated at the lower of cost
and market value, |
|
| determined
on aggregate portfolio basis. Investments under purchase and resale
agreements are |
|
| stated
at purchase price. |
|
|
|
|
|
|
| 2.8
Offsetting of financial assets and financial liabilities |
|
| A
financial asset and a financial liability is offset and the net amount is
reported in the balance sheet, |
|
| if
the company has a legal enforceable right to set-off the recognized amounts
and also intends |
|
| either
to settle on a net basis or to realize the asset and settle the liability
simultaneously. |
|
| Corresponding
income on the asset and charge on the liability is also offsetted. |
|
|
| 2.9
Deferred cost |
|
| Exchange
differences arising due to conversion of foreign currency loan receipts for
acquisition of |
|
| lease
assets, into Rupees at the buying rates and re-conversion at the market rates
for placement of |
|
| foreign
currency deposits with financial institutions as hedging to secure the future
loan repayments |
|
| and
other loan originating costs such as negotiation and front end fees are
treated as deferred cost. |
|
| These
are amortized over the loan period or five years from the year of occurrence,
whichever is |
|
| shorter.
Term finance certificate issue expenses have deferred and will be amortized
over a period of |
|
| five
years from the year of occurrence. |
|
|
| 2.10
Revenue recognition |
|
| The
company follows the "Finance Method" to recognize the income on
finance leases. The |
|
| unearned
finance income i.e. the excess of aggregate lease payments and the residual
value over |
|
| the
cost of leased assets is amortized to income over the lease term by applying
the annuity method |
|
| to
produce a constant rate of return on the net investment in the lease. Income
on bank deposits, |
|
| loans,
advances and other investments is recognized on a time proportion basis
taking into account |
|
| the
principal/net investment outstanding and applicable rates of mark-up/profit
thereon. The |
|
| difference
between purchase price and resale value of investments under purchase and
resale |
|
| agreements
is charged to income on a time proportion basis. Fees, commissions and
commitment |
|
| charges
etc. are recognized on accrual basis. Dividend on equity investments is
recognized as |
|
| income
if declared on or before the balance sheet date. |
|
|
| 3.
ISSUED, SUBSCRIBED AND PAID UP CAPITAL |
|
|
| NUMBER OF SHARES |
|
RUPEES |
|
| 2001 |
2000 |
|
|
2001 |
2000 |
|
|
| 16,052,585 |
16,052,585 |
Ordinary shares of Rupees 10 |
160,525,850 |
160,525,850 |
|
|
each fully paid in cash |
|
|
| 1,004,700 |
1,004,700 |
Ordinary Shares of Rupees 10 |
10,047,000 |
10,047,000 |
|
|
each issued to
International |
|
|
Finance Corporation
against |
|
|
their right of option to
convert 10 |
|
|
percent of their
outstanding loan |
|
|
into fully paid up shares |
|
|
|
|
Ordinary shares of Rupees
10 |
|
| 4,732,021 |
4,732,021 |
each issued as fully paid
bonus |
47,320,210 |
47,320,210 |
|
|
|
shares |
|
| ------------------ |
------------------ |
|
------------------ |
------------------ |
|
| 21,789,306 |
21,789,306 |
|
217,893,060 |
217,893,060 |
|
| ========== |
========== |
|
========== |
========== |
|
|
| 3.1
Included there in is 7,931,541 (2000: 8,365,455) ordinary shares of Rupees 10
each held by the |
|
| associated
undertakings. |
|
|
|
|
| 3.2
RESERVE FOR DEFERRED TAX |
|
| The
reserve has been created to comply with the requirements of Securities and
Exchange |
|
| Commission
of Pakistan's circular No. 16 dated September 09, 1999 (Note 30.1). This
capital |
|
| reserve
shall not be available for utilization for any purpose other than to provide
for deferred tax. |
|
|
| 3.3
RESERVE FOR CONTINGENCIES |
|
| This
represents the amount set-aside to strengthen the financial. soundness of the
company. The |
|
| reserve
has been earmarked by the board of directors for meeting unforeseeable future
losses |
|
| against
leases, advances and investments. This reserve also fulfills the requirement
to create |
|
| special
reserve under the Leasing Companies (Establishment and Regulation) Rules,
2000 issued |
|
| by
Securities and Exchange Commission of Pakistan. |
|
|
| 4.
REDEEMABLE CAPITAL |
|
|
|
2001 |
2000 |
|
|
|
Rupees |
Rupees |
|
|
| Term
Finance Certificates (Note 4.1) |
|
621,457,500 |
287,442,500 |
|
| Saudi
Pak Industrial and Agricultural Investment Company (Pvt) Limited |
-- |
9,217,549 |
|
| Habib
Bank Limited |
|
-- |
100,000,000 |
|
| Pak
Libya Holding Company (Private) Limited (Note 4.2) |
4,245,133 |
5,747,017 |
|
| Pak
Kuwait Investment Company (Private) Limited (Note 4.3) |
126,144,967 |
109,074,532 |
|
| Al-Baraka
Islamic Bank B.S.C. (E.C.) (Note 4.4) |
|
58,333,333 |
70,000,000 |
|
| Al-Faysal
Investment Bank Limited (Note 4.5) |
|
41,666,667 |
-- |
|
| Standard
Chartered Bank (Note 4.6) |
|
97,000,000 |
-- |
|
| Others |
|
-- |
28,728,824 |
|
|
|
------------------ |
------------------ |
|
|
|
948,847,600 |
610,210,422 |
|
| Less:
Current portion (Note 9) |
|
193,595,911 |
154,939,165 |
|
|
|
------------------ |
------------------ |
|
|
|
755,251,689 |
455,271,257 |
|
|
|
========== |
========== |
|
|
|
|
| 4.1
The company has issued non-participatory and registered Term Finance
Certificates (TFC's) to |
|
| commercial
banks, financial institutions and general public for financing leasing
arrangements. First |
|
| issue
carries profit at the rate of 18 percent payable semi-annually. It is
repayable in 10 semi-annual |
|
| installments
commenced from June 2000. Aggregate face value of each set of ten TFC's
offered to |
|
| general
public and institutional investors is Rupees 5,000 each and Rupees 100,000
each |
|
| respectively.
Second issue carries profit at the rate of 15.60 percent payable
semi-annually. It is |
|
| repayable
in six semi-annual installments commenced from September 2001. Aggregate face
value |
|
| of
each set of six TFC's offered to general public and institutional investors
is Rupees 5,000, Rupees |
|
| 25,000,
Rupees 50,000 and Rupees 100,000 each respectively. |
|
|
| 4.2
The credit facilities of Rupees 8.353 million and Rupees 1.590 million
obtained under mark-up |
|
| arrangements
for finance lease operations. These carry mark-up at the rate of 18 percent
per |
|
| annum.
These are repayable in 12 equal quarterly installments commenced from August
1999 and |
|
| November
2000 respectively and are secured against assets given on lease. |
|
|
| 4.3
The credit facilities of Rupees 125 million and Rupees 55 million obtained
under mark-up arrangements |
|
| for
financing lease operations. These carry mark-up rates of 16.50 and 16.65
percent per annum. and |
|
| are
repayable in 8 and 6 semi-annual installments commenced from March15, 2000
and February |
|
| 2001
respectively. These are secured against second charge on moveable assets of
the company. |
|
|
| 4.4
The credit facility of Rupees 70 million obtained under mark-up arrangements
for financing lease |
|
| operations.
It consists of two tranches of Rupees 35 million each. First tranche carries
mark-up rate of |
|
| 19
percent per annum. It is repayable in September 2002. Second tranche carries
mark-up at the rate |
|
| of
17 percent per annum and is repayable in 3 equal annual installments
commencing from March |
|
| 2001.
This facility is secured by pari passu charge over the leased assets with
other lenders. |
|
|
| 4.5
The credit facility of Rupees 50 million obtained under mark-up arrangements
for financing lease |
|
| operations.
It carries mark-up at the rate of 18 percent in first year and thereafter
variable based on |
|
| State
Bank of Pakistan's discount rate plus 4 percent with the floor of 17 percent
per annum and cap |
|
| of
20 percent per annum. It is repayable in 6 semi-annual installments commenced
from June 2001 |
|
| and
is secured by way of first pari passu charge on leased assets. |
|
|
| 4.6
The Credit facility of Rupees 97 million obtained under mark-up arrangements
for financing lease |
|
| operations.
It carries mark-up at the rate of 13.24 percent per annum. It is repayable on
September |
|
| 2003
and is secured against second charge by way of hypothecation of company's
present and |
|
| future assets. |
|
|
|
|
|
|
2001 |
2000 |
|
|
Rupees |
Rupees |
|
| 5.
LONG TERM LOANS-SECURED |
|
| In
foreign currency |
|
| Asian
Development Bank |
|
| U.S.
Dollars 7,500,000 (2000: 10,500,000) (Note 5.2) |
|
483,000,000 |
549,150,000 |
|
| Commonwealth
Development Corporation |
|
|
| U.S.
Dollars 543,750 (2000: 1,631,250) (Note 5.3) |
|
13,598,915 |
40,796,747 |
|
| International
Finance Corporation |
|
|
| U.S.
Dollars 3,125,000 (2000: 4,375,000) (Note 5.4) |
|
96,758,750 |
135,462,250 |
|
|
| German
Investment and Development Company |
|
|
|
| Deutsche
Marks 312,500 (2000: 937,500) (Note 5.5) |
|
5,279,156 |
15,837,469 |
|
| Deutsche
Marks 937,500 (2000: 1,562,500) (Note 5.6) |
15,493,500 |
25,822,500 |
|
| Deutsche
Marks NIL (2000: 2,500,000) |
|
-- |
63,918,250 |
|
|
|
------------------ |
------------------ |
|
|
|
20,772,656 |
105,578,219 |
|
|
|
|
| Netherlands
Development Finance Company |
|
| Deutsche
Marks 444,000 (2000: 1,332,000) (Note 5.7) |
12,435,873 |
34,055,643 |
|
| Deutsche
Marks 888,000 (2000: 1,776,000) (Note 5.8) |
24,871,746 |
45,407,525 |
|
|
|
------------------ |
------------------ |
|
|
|
37,307,619 |
79,463,168 |
|
|
|
------------------ |
------------------ |
|
|
|
651,437,940 |
910,450,384 |
|
|
|
|
| In
local currency - World Bank (Note 5.9) |
|
109,865,769 |
118,674,160 |
|
|
|
------------------ |
------------------ |
|
|
|
761,303,709 |
1,029,124,544 |
|
| Current
portion (Note 9) |
|
314,492,632 |
362,311,243 |
|
|
|
------------------ |
------------------ |
|
|
|
446,811,077 |
666,813,301 |
|
|
========== |
========== |
|
|
| 5.1
The loans stated in note No. 5 above are secured by way of floating and
hypothecation charges on all |
|
| the
company's assets (present and future) including assets leased by the company
and demand |
|
| promissory
notes ranking pari passu with the charges stated in note No. 4.4. |
|
|
| 5.2
The interest is charged at six months LIBOR plus 2.125 percent per annum. The
loan is repayable in |
|
| 10
equal semi-annual installments commenced from March 15, 1999. The loan has
been hedged by |
|
| placing
a deposit of U.S. Dollars 7.5 million (2000: US$ 10.5 million) with Pak
Kuwait Investment |
|
| Company
(Private) Limited and a Rupee credit has been obtained thereagainst (Note
18.1). |
|
|
| 5.3
The outstanding balance of foreign currency loan has been converted into
Rupees at the average |
|
| rate
of exchange ruling on December 18, 1991, December 27, 1991 and April 18, 1992
i.e. the dates |
|
| on
which exchange risk cover was obtained from the State Bank of Pakistan. The
interest and |
|
| exchange
risk fee rates are 10.25 percent and 5 percent per annum respectively. The
loan is repay- |
|
| able
in sixteen semi annual equal installments commenced from March 15 1994. |
|
|
| 5.4
The outstanding balance of foreign currency loan has been converted into
Rupees at the rate of |
|
| exchange
ruling on July 03, 1994 and June 01, 1995 i.e. the dates on which exchange
risk cover was |
|
| obtained
from the state Bank of Pakistan. The interest and exchange risk fee rates are
8.50 percent |
|
| and
6.66 percent per annum respectively. The loan is repayable in sixteen semi
annual equal |
|
| installments
commenced from June 15, 1996. |
|
|
|
| 5.5
The outstanding balance of the foreign currency loan has been converted into
Rupees at the rate on |
|
| October
21, 1992 i.e. the date on which the exchange risk cover was obtained from the
State Bank of |
|
| Pakistan.
The interest and exchange risk fee rates are 10.5 percent and 5.17 percent
per annum |
|
| respectively.
The loan is repayable in sixteen semi annual equal installments commenced
from April |
|
| 30, 1994. |
|
|
|
|
| 5.6
The foreign currency loan balance has been converted into Rupees at the rate
of exchange ruling on |
|
| March
31, 1993 i.e. the date on which the exchange risk cover was obtained from the
State Bank of |
|
| Pakistan.
The interest and exchange risk fee rates are 10.5 percent and 5.17 percent
per annum |
|
|
|
|
| respectively.
The loan is repayable in sixteen semi annual equal installments commenced
from April |
|
| 30, 1995. |
|
|
|
|
| 5.7
The interest rate is 10.50 percent per annum. The loan is repayable in ten
equal semi annual |
|
| installments
commenced from May 01 1997. This loan has been hedged by placing equivalent |
|
| foreign
currency in special US Dollar Bonds of 0.754 million registered in the name
of Pakistan |
|
| Industrial
Leasing Corporation Limited and availed a Rupee facility thereagainst (Note
18.1). |
|
|
|
| 5.8
The interest is charged at the rate of 9.75 percent per annum. The loan is
repayable in ten equal semi |
|
| annual
installments commenced from November 01, 1997. This loan has been hedged by
placing |
|
| equivalent
foreign currency in special US Dollar Bonds of 1.76 million registered in the
name of |
|
| Pakistan
Industrial Leasing Corporation Limited and availed a Rupee facility
thereagainst (Note 18.1). |
|
|
|
|
| 5.10
This represents the credit line obtained from the World Bank through Bankers
Equity Limited for |
|
| financing
small and micro enterprises shared amongst three leasing companies in
Pakistan on a first |
|
| come
first served basis. It carries interest at the rate of 14 percent per annum
and repayment |
|
| commenced
for February 2000 in semi annual installments over a period of ten years
including a |
|
| grace
period of three years. |
|
|
|
|
|
|
2001 |
2000 |
|
|
|
Rupees |
Rupees |
|
|
| 6.
CERTIFICATES OF INVESTMENT |
|
| Local
currency (Net 6.1) |
|
774,627,080 |
605,398,790 |
|
| Less:
Due Within one Year |
|
343,282,653 |
381,166,325 |
|
|
|
------------------ |
------------------ |
|
|
|
431,344,427 |
224,232,465 |
|
|
========== |
========== |
|
|
| 6.1
The company has a scheme of Registered Certificates of Investment as per
permission granted by |
|
| the
Securities and Exchange Commission of Pakistan, Government of Pakistan for
raising funds |
|
| directly
from the local/foreign resources. These certificates have been issued for
maturity periods |
|
| of
three months to five years. The return on certificates is ranging from 11 to
20 percent. |
|
|
| 7.
LIABILITIES AGAINSTASSETS SUBJECT TO FINANCE LEASE |
|
| The
rate of interest used as the discounting factor, implicit in leases, ranges
from 18.00 to 21.25 |
|
| percent
per annum. The amount of future payments and periods during which they fall
due are: |
|
|
|
|
2001 |
2000 |
|
| Year
ended June 30 |
|
Rupees |
Rupees |
|
|
|
|
|
| 2001 |
|
-- |
3,253,435 |
|
| 2002 |
|
2,385,818 |
2,425,254 |
|
| 2003 |
|
692,980 |
692,980 |
|
|
------------------ |
------------------ |
|
|
|
3,078,798 |
6,371,669 |
|
| Less:
Unamortized finance charges |
|
259,287 |
971,671 |
|
|
------------------ |
------------------ |
|
|
|
2,819,511 |
5,399,998 |
|
|
| Less: Current portion (Note 9) |
|
1,594,169 |
2,537,892 |
|
|
------------------ |
------------------ |
|
|
|
1,225,342 |
2,862,106 |
|
|
========== |
========== |
|
|
|
|
| 7.1
The lease rentals are payable in monthly installments. The lease agreements
carry renewal and |
|
| purchase
option at the end of lease period. There are no financial restrictions in
lease agreements. |
|
| These
are secured by deposits of Rupees 731,066 (2000: 756,374) included in long
term security |
|
| deposits
(Note 18). |
|
|
| 7.2
Minimum lease payments and their present value are regrouped as below: |
|
|
|
2001 |
2000 |
|
|
Minimum lease |
Present value |
Minimum lease |
Present value |
|
|
payments |
of minimum |
payments |
of minimum |
|
|
|
lease payments |
|
lease payments |
|
|
Rupees |
Rupees |
Rupees |
Rupees |
|
|
| Due
not later than one year |
2,385,818 |
2,172,127 |
3,253,435 |
2,967,941 |
|
| Due
later than one year but not |
|
| later
than five years |
692,980 |
647,384 |
3,118,234 |
2,432,057 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
|
3,078,798 |
2,819,511 |
6,371,669 |
5,399,998 |
|
|
========== |
========== |
========== |
========== |
|
|
|
|
2001 |
2000 |
|
|
Rupees |
Rupees |
|
| 8.
LONG TERM DEPOSITS |
|
| Balance
at the end of the year (Note 8.1) |
|
558,482,052 |
485,789,186 |
|
| Less:
Current Portion (Note 9) |
|
139,364,718 |
126,186,828 |
|
|
|
------------------ |
------------------ |
|
|
|
49,117,334 |
359,602,358 |
|
|
========== |
========== |
|
|
| 8.1
These represent the interest free security deposits received against lease
contracts and are |
|
| repayable/adjustable
at the expiry/termination of the respective leases. |
|
|
| 9.
CURRENT PORTION OF LONG TERM LIABILITIES |
|
| Redeemable
capital (Note 4) |
|
193,595,911 |
154,939,165 |
|
| Long
term loans (Note 5) |
|
314,492,632 |
362,311,243 |
|
| Liabilities
against assets subject to finance |
|
|
| lease (Note 7) |
|
1,594,169 |
2,537,892 |
|
| Long
term deposits (Note 8) |
|
139,364,718 |
126,186,828 |
|
|
|
------------------ |
------------------ |
|
|
|
649,047,430 |
645,975,128 |
|
|
========== |
========== |
|
|
| 10.
SHORT TERM FINANCES |
|
| Under
Musharika/mark-up arrangements |
|
| From
financial institutions (Note 10.1) |
|
610,000,000 |
570,340,100 |
|
| From
others (Note 10.2) |
|
|
55,000 |
42,100,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
610,055,000 |
612,440,100 |
|
|
========== |
========== |
|
|
| 10.1
These unsecured facilities carry mark-up at the rates ranging from 33.56 to
60.27 paisas per Rupees |
|
| thousand
per day. |
|
|
| 10.2
These unsecured facilities have been obtained from individuals and carry
profit at the rate of 36.99 |
|
| paisas
per Rupees thousand per day. |
|
|
|
| 11.
CREDITORS, ACCRUED AND OTHER LIABILITIES |
|
| Interest
accrued on secured loans |
|
18,155,726 |
24,822,506 |
|
| Profit/mark-up
on unsecured short term finances |
|
9,035,797 |
22,015,475 |
|
| Profit/mark-up
on redeemable capital (Note 11.1) |
|
26,466,401 |
13,796,758 |
|
| Lease
financial charges payable |
|
-- |
27,454 |
|
|
|
------------------ |
------------------ |
|
| Mark-up
on credit facilities availed (Note 18) |
|
9,220,625 |
19,027,075 |
|
| Less:
Interest accrued on foreign currency |
|
| deposits
(Note 18) |
|
8,083,798 |
14,839,702 |
|
|
|
------------------ |
------------------ |
|
|
|
1,136,827 |
4,187,373 |
|
|
| Profit
on certificates of investment |
|
33,989,782 |
24,045,843 |
|
| Exchange
risk fee payable |
|
3,774,193 |
621,591 |
|
| Advance
lease rentals |
|
1,582,941 |
530,390 |
|
| Payable
to gratuity fund trust |
|
-- |
2,941,535 |
|
| Due
to provident fund trust |
|
-- |
1,098,747 |
|
| Accrued
liabilities |
|
4,506,537 |
3,837,225 |
|
| Due to lessees |
|
1,449,290 |
197,947 |
|
|
|
------------------ |
------------------ |
|
|
|
100,097,494 |
98,122,844 |
|
|
========== |
========== |
|
|
| 11.1
PROFIT/MARK-UP ON REDEEMABLE CAPITAL |
|
| Representing |
|
|
|
|
| Term
finance certificates |
|
18,521,819 |
1,437,213 |
|
| Funds
on mark-up basis |
|
7,944,582 |
11,084,349 |
|
| Funds
on musharika basis |
|
-- |
1,275,196 |
|
|
|
------------------ |
------------------ |
|
|
|
26,466,401 |
13,796,758 |
|
|
========== |
========== |
|
|
| 12.
DIVIDEND PAYABLE |
|
| Proposed
dividend |
|
21,789,306 |
16,341,980 |
|
| Unclaimed |
|
606,012 |
533,771 |
|
|
|
------------------ |
------------------ |
|
|
|
22,395,318 |
16,875,751 |
|
|
========== |
========== |
|
|
| 13.
CONTINGENCIES AND COMMITMENTS |
|
|
| Lease
contracts approved but not disbursed amounting to Rupees 17.206 million as on
June 30, |
|
| 2001
(2000: Rupees 15.222 million) |
|
|
|
| 14.
TANGIBLE FIXED ASSETS |
|
|
|
|
|
COST |
|
ACCUMULATED DEPRECIATION |
|
BOOK VALUE |
DEPRECIATION |
|
|
|
|
|
|
As at |
Additions/ |
As at |
As at |
|
As at |
As at |
Charge for |
Rate |
|
|
|
July 01, |
(Deletions) |
June 30, |
July 01, |
Adjustments |
June 30, |
June 30, |
the year |
% |
|
|
|
2000 |
|
2001 |
2000 |
|
2001 |
2001 |
|
|
| OWNED |
|
|
|
|
| Freehold land |
|
8,525,000 |
-- |
8,525,000 |
-- |
-- |
-- |
8,525,000 |
-- |
-- |
|
| Buildings
(Note 14.1) |
3,213,340 |
-- |
3,213,340 |
1,127,915 |
-- |
1,232,186 |
1,981,154 |
104,271 |
5 |
|
| Furniture
and fixtures |
2,893,038 |
243,450 |
3,136,488 |
1,479,570 |
-- |
1,645,262 |
1,491,226 |
165,692 |
10 |
|
| Vehicles |
|
6,535,923 |
10,486,095 |
16,795,997 |
4,635,166 |
(23,040) |
7,048,900 |
9,747,097 |
2,436,774 |
20 |
|
|
|
(226,021) |
|
|
|
| Office
and electric equipments |
1,940,644 |
270,749 |
2,211,393 |
906,773 |
-- |
1,037,235 |
1,174,158 |
130,462 |
10 |
|
| Computers |
|
3,804,130 |
3,126,033 |
5,363,998 |
2,568,343 |
(1,298,512) |
2,088,664 |
3,275,334 |
818,833 |
20 |
|
|
|
|
(1,566,165) |
|
|
| Air-conditioning
plant |
1,048,543 |
277,000 |
1,325,543 |
618,295 |
-- |
689,020 |
636,523 |
70,725 |
10 |
|
| Electric
and other installations |
8,857,815 |
668,340 |
9,246,155 |
7,168,634 |
(149,789) |
7,753,858 |
1,492,297 |
735,013 |
33 |
|
|
|
|
(280,000) |
|
|
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
36,818,433 |
15,071,667 |
49,817,914 |
18,504,696 |
(1,471,341) |
21,495,125 |
28,322,789 |
4,461,770 |
|
|
|
|
(2,072,186) |
|
|
|
|
|
| LEASED |
|
|
| Vehicles |
|
4,874,070 |
(253,157) |
4,620,913 |
1,509,705 |
(91,136) |
2,059,038 |
2,561,875 |
640,469 |
20 |
|
| Computers |
|
2,653,837 |
-- |
2,653,837 |
955,381 |
-- |
1,295,072 |
1,358,765 |
339,691 |
20 |
|
| Air-conditioning
plant |
484,554 |
-- |
484,554 |
92,064 |
-- |
131,313 |
353,241 |
39,249 |
10 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
| June
30, 2001 (Rupees) |
44,830,894 |
15,071,667 |
57,577,218 |
21,061,846 |
(1,562,477) |
24,980,548 |
32,596,670 |
5,481,179 |
|
|
|
|
(2,325,343) |
|
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
| June
30, 2000 (Rupees) |
34,395,352 |
12,498,601 |
44,830,894 |
18,142,725 |
(435,801) |
21,061,846 |
23,769,048 |
3,354,922 |
|
|
|
|
|
(2,063,059) |
|
|
|
|
========== |
========== |
========== |
========== |
========== |
========== |
========== |
========== |
|
|
| 14.1
This represents office building acquired at 5th Floor of SIDCO Avenue Centre,
Karachi. |
|
|
| 14.2
Details of fixed assets disposed off during the year are as follows: |
|
|
| Description |
Cost |
Accumulated |
Book value |
Sale |
Mode of |
|
Particulars of Purchasers |
|
|
|
Depreciation |
|
Proceeds |
Disposal |
|
|
|
|
|
|
Rupees |
Rupees |
Rupees |
Rupees |
|
|
|
| OWNED |
|
|
|
| Vehicles |
|
|
|
| Honda Civic |
253,157 |
91,136 |
162,021 |
276,000 |
Negotiation |
|
Ghoshi Motors, Jail Road,
Lahore |
|
| Motor Cycle |
64,000 |
23,040 |
40,960 |
58,000 |
Insurance Claim |
|
Premier Insurance
Company, State Life Building, Karachi |
|
|
|
|
|
| 25 Computers |
1,566,165 |
1,298,512 |
267,653 |
175,000 |
Negotiation |
|
Ocean office Automation,
3-Floor, Cricket House |
|
|
|
20-Shadman, Lahore |
|
|
|
|
| House
Furnishing Allowance |
|
| Air-conditioner |
20,000 |
15,970 |
4,030 |
4,030 |
As per company's policy |
Mr. Shehzad Hussain
-Employee |
|
| Air-conditioner |
20,000 |
15,970 |
4,030 |
4,030 |
As per company's policy |
Mr. Hassan Sheikh,
Ex-employee |
|
| Air-conditioner |
30,000 |
16,533 |
13,467 |
13,467 |
Final Settlement |
|
Mr. Tariq Masood,
Ex-employee |
|
| Air-conditioner |
20,000 |
6,600 |
13,400 |
13,400 |
As per company's policy |
Mr. Mehmood Siddique-
Employee |
|
| Air-conditioner |
20,000 |
6,600 |
13,400 |
13,400 |
Final Settlement |
|
Mr. Zubair Ali Abbasi,
Ex-employee |
|
| Air-conditioner |
20,000 |
17,300 |
2,700 |
2,700 |
As per company's policy |
Mr. Tahir Abbas -Employee |
|
| Air-conditioner |
20,000 |
13,985 |
6,015 |
6,015 |
As per company's policy |
Mr. Asif Fazal-Employee |
|
| Television |
25,000 |
22,181 |
2,819 |
2,819 |
As per company's policy |
Mr. Mudassar Naqvi
Employee |
|
| Deck |
25,000 |
8,250 |
16,750 |
16,750 |
As per company's policy |
Mr. Muhammad Shahid
Pervaiz-Employee |
|
| Furniture |
30,000 |
9,900 |
20,100 |
20,100 |
Final Settlement |
|
Mr. Moazzam A. Khan,
Ex-employee |
|
| Furniture |
30,000 |
9,900 |
20,100 |
20,100 |
Final Settlement |
|
Mr. Zaeem A. Chughtai,
Ex-employee |
|
| Refrigerator |
20,000 |
6,600 |
13,400 |
13,400 |
As per company's policy |
Mr. Javed Siddique
-Employee |
|
|
| LEASED |
|
| Vehicles |
|
| Honda Civic |
253,157 |
91,136 |
162,021 |
162,021 |
Negotiation |
|
Al-Zamin leasing
Modaraba, Karachi |
|
|
|
|
|
|
|
|
2001 |
2000 |
|
|
|
|
Rupees |
Rupees |
|
| 15.
NET INVESTMENT IN FINANCE LEASES |
|
| Lease payments receivable |
|
3,995,539,078 |
3,519,321,946 |
|
| Guaranteed
residual value of leased assets |
|
561,129,616 |
509,105,627 |
|
|
------------------ |
------------------ |
|
| Gross investment in leases |
|
4,556,668,694 |
4,028,427,573 |
|
| Less: Unearned finance
income |
|
824,182,680 |
847,391,439 |
|
|
------------------ |
------------------ |
|
| Net investment in
finance leases (Note 15.1) |
|
3,732,486,014 |
3,181,036,134 |
|
| Less:
Current portion including overdue rentals of net |
1,896,012,729 |
1,376,945,211 |
|
|
------------------ |
------------------ |
|
| investment in
lease finance (Note 15.3) |
|
1,836,473,285 |
1,804,090,923 |
|
|
========== |
========== |
|
|
|
|
| 15.1
Included therein are finance leases to following associated undertakings: |
|
| Crescent Greenwood
Limited |
|
440,860 |
372,433 |
|
| Crescent Greenwood Energy
Limited |
|
340,091 |
393,904 |
|
|
------------------ |
------------------ |
|
|
|
780,951 |
766,337 |
|
|
|
========== |
========== |
|
|
|
|
|
| 15.2
Maximum aggregate balance of finance leases to associated undertakings at the
end of any month |
|
| during
the year was Rupees 0.955 million. |
|
|
| 15.3
Lease payments and guaranteed residual value due within next twelve months
ending on June 30, |
|
| 2002
are Rupees 2,350.44 million (June 30, 2001: Rupees 1,770.41 million). |
|
|
| 15.4
Gross investment in the leases and present value of minimum lease payments
are regrouped as |
|
| under: |
|
|
|
2001 |
2000 |
|
|
|
Gross |
Present value |
Gross |
Present value |
|
|
|
Investment |
of minimum |
Investment |
of minimum |
|
|
|
in lease |
lease payments |
in lease |
lease payments |
|
|
|
|
|
|
Rupees |
Rupees |
Rupees |
Rupees |
|
|
| Due not later than one year |
2,350,440,789 |
2,178,656,042 |
1,770,407,428 |
1,649,751,897 |
|
|
| Due
later than one year |
|
| but
not later than five years |
2,206,227,905 |
1,553,829,972 |
2,258,020,145 |
1,531,284,237 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
|
4,556,668,694 |
3,732,486,014 |
4,028,427,573 |
3,181,036,134 |
|
|
========== |
========== |
========== |
========== |
|
|
| 15.5
It includes leases to Pakland Cement Limited (PCL) and Saadi Cement Limited
(SCL) amounting to |
|
| Rupees
75.05 million and Rupees 154.19 million respectively outstanding as on June
30, 2001. |
|
| According
to the schemes of arrangements prepared by PCL and SCL, the lessees will
issue term |
|
| finance
certificates valuing Rupees 72.48 million and Rupees 148.86 million
respectively carrying |
|
| profit
at the rate of 16 percent with effect from January 01 2001 and will be fully
redeemed in year 2010 |
|
| in
settlement of aforesaid lease receivables. The schemes were approved by the
majority of creditors |
|
| under
section 284 of the Companies Ordinance, 1984 in their meeting held on
September 04, 2001 and |
|
| submitted
in the Hono'urable High Court of-Sindh for sanction which are still pending.
However, |
|
| provisions
for doubtful receivables made thereagainst amounting to Rupees 14.06 million
and Rupees |
|
| 33.12
million respectively have been carried in the accounts as advised by the
Securities and |
|
| Exchange
Commission of Pakistan vide letter No. SC/LES/ED(SC)533/2001 dated October
12,2001. |
|
|
|
|
2001 |
2000 |
|
|
|
Rupees |
Rupees |
|
| 16.
EQUITY INVESTMENTS |
|
| Quoted |
|
|
| Associated
undertakings |
|
| Shakarganj
Mills Limited |
|
| 221,444
ordinary shares of Rupees 10 each |
|
4,730,000 |
4,730,000 |
|
| Crescent
Steel and Allied Products Limited |
|
|
| 152,087
ordinary shares of Rupees 10 each |
|
7,675,000 |
7,675,000 |
|
| Others |
|
|
| Trust
Investment Bank Limited |
|
|
| 100,000
ordinary shares of Rupees 10 each |
|
1,000,000 |
1,000,000 |
|
| BSJS
Balanced Funds Limited |
|
|
|
| 560,406
ordinary certificates of Rupees 10 each |
|
5,604,060 |
5,604,060 |
|
| Pakistan
Industrial Credit and Investment Corporation Limited |
|
|
|
| 565,175
ordinary shares of Rupees 10 each |
|
19,822,700 |
19,822,700 |
|
| Nimir
Industrial Chemicals Limited |
|
|
|
|
| 4,037,166
ordinary shares of Rupees 10 each (Note 16.2) |
16,148,664 |
-- |
|
| Hamid
Textile Mills Limited |
|
|
|
|
| 1,434,956
ordinary shares of Rupees 10 each (Note 16.3) |
11,479,650 |
11,479,650 |
|
|
|
------------------ |
------------------ |
|
|
|
66,460,074 |
50,311,410 |
|
| Unquoted |
|
|
| Associated
undertakings |
|
| Crescent
Greenwood Limited |
|
| 1,000,000
ordinary shares of Rupees 10 each |
|
| (Chief
Executive: Mr. Nasir Shafi) |
|
10,000,000 |
10,000,000 |
|
| Crescent
Industrial Chemicals Limited |
|
|
| 1,000,000
ordinary shares of Rupees 10 each |
|
|
| (Chief
Executive: Mr. Tariq Shafi) |
|
10,000,000 |
10,000,000 |
|
| Others |
|
|
| Crescent
Powertec Limited |
|
| 250,000
ordinary shares of Rupees 10 each |
|
| (Chief
Executive: Mr. Ahsan Bashir) |
|
2,500,000 |
2,500,000 |
|
| Crescent
Ujala Limited |
|
|
| 7,500,000
ordinary shares of Rupees 10 each |
|
|
| (Equity
held 29.8%, Break up value Rupees 10.01 per share |
|
| based
on audited accounts of 1999-2000) (Rupees 6.66 per |
|
| share
based on audited accounts of 1998-99) |
|
|
| (Chief
Executive: Mr. Anjum M. Saleem) |
|
76,125,000 |
76,125,000 |
|
| International
Housing Finance Limited |
|
|
| 312,500
ordinary certificates of Rupees 10 each |
|
|
| (Chief
Executive: Mr. Nessar Ahmad) |
|
3,125,000 |
3,125,000 |
|
|
|
------------------ |
------------------ |
|
|
|
168,210,074 |
152,061,410 |
|
| Less:
Provision for diminution in value of investment |
13,000,000 |
5,000,000 |
|
|
------------------ |
------------------ |
|
|
|
|
155,210,074 |
147,061,410 |
|
|
|
========== |
========== |
|
|
| 16.1
Aggregate Market value of quoted investments was Rupees 27.59 million as on
June 30, |
|
| 2001
(2000 Rupees 15.665 million). |
|
|
| 16.2
4,037,166 ordinary shares of Nimir Industrial Chemicals Limited were acquired
in partial |
|
| settlement
of outstanding lease amounts. |
|
|
|
|
|
| 16.3
1,434,956 ordinary shares of Hamid Textile Mills Limited (HTML) were acquired
in partial settlement |
|
| of
outstanding lease amount. Included therein are 309,550 shares covered under
the terms of sale |
|
| and
buy back agreement which shall be sold back at the rate of Rupees 8 per share
on or before |
|
| March
2003. HTML has option of repurchasing the remaining shares at the rate of
Rupees 8 per |
|
| share
on or before March 2003 which is the period of maturity of lease facility
availed. |
|
|
|
|
2001 |
2000 |
|
|
|
Rupees |
Rupees |
|
| 17.
LONG TERM LOANS-Considered good |
|
| Vehicles
loan-Staff (Note 17.1) |
|
3,465,490 |
6,846,213 |
|
| Less:
Current portion (Note 23) |
|
782,652 |
1,170,641 |
|
|
|
------------------ |
------------------ |
|
|
|
2,682,838 |
5,675,572 |
|
|
|
|
|
========== |
========== |
|
|
| 17.1
This represents the secured loans given to the company's employees and
repayable in 6 to 7 years |
|
| Rates
of interest range from 5.25 to 6 percent per annum and are outstanding for a
period not |
|
| exceeding
three years. |
|
|
|
|
|
| 18.
LONG TERM DEPOSITS |
|
|
|
| Foreign
currency deposits (Note 18.1) |
|
232,527,346 |
198,843,114 |
|
| Security
deposits (Note 18.2) |
|
|
973,704 |
1,637,678 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
233,501,050 |
200,480,792 |
|
|
|
========== |
========== |
|
|
|
|
| 18.1
FOREIGN CURRENCY DEPOSITS |
|
| First
International Company (Private) Limited |
|
| Deutsche
Marks NIL (2000: 2,500,000) |
|
-- |
63,255,000 |
|
|
|
|
| Pakistan
Kuwait Investment Company (Private) Limited |
|
| U.S.
Dollars 7,500,000 (2000: 10,500,000) |
|
477,192,000 |
549,141,600 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
477,192,000 |
612,396,600 |
|
| Less:
Credit facilities availed (Note 18.4) |
|
285,453,484 |
454,218,518 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
191,738,516 |
158,178,082 |
|
| Special
U.S. Dollar Bonds 1,760,000 |
|
117,480,000 |
92,046,592 |
|
|
|
|
|
------------------ |
------------------ |
|
| Balance
at the end of year |
|
|
309,218,516 |
250,224,674 |
|
| Less:
Current Portion (Note 21) |
|
|
|
|
| Foreign
currency deposits |
|
|
190,876,800 |
220,152,600 |
|
| Credit
facilities availed |
|
|
(114,185,630) |
(168,771,040) |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
76,691,170 |
51,381,560 |
|
|
|
------------------ |
------------------ |
|
|
|
232,527,346 |
198,843,114 |
|
|
|
========== |
========== |
|
|
|
|
| 18.2
SECURITY DEPOSITS |
|
| Security
Deposits |
|
|
1,970,162 |
1,819,178 |
|
| Less:
Current Portion (Note 21) |
|
|
996,458 |
181,500 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
973,704 |
1,637,678 |
|
|
========== |
========== |
|
|
| 18.3
The deposits stated in note 18.1 above are placed under lien for hedging
against foreign currency |
|
| loans
mentioned in note No. 5. The rates of return on above mentioned deposits are
ranging from |
|
| 4.68
to 7.91 percent per annum. The deposits will mature during the period from
December 22, 2002 |
|
| to
September 15, 2003. Registered special U.S. Dollar Bonds have been issued by
the Government |
|
| of
Pakistan for a period of three years maturing on December 22, 2002. |
|
|
| 18.4
The total sanctioned amount by financial institution of Rupees 285.453
million (2000: Rupees |
|
| 454.219
million) has been availed on a matching facility basis. This facility carry
mark-up rate of |
|
| paisas
39.78 per Rupees thousand per day and is secured against foreign currency
deposits |
|
| mentioned
in note 18.1. The repayment will be made during the period from September 13,
2001 to |
|
| September
15, 2003. |
|
|
|
|
|
|
| 19.
DEFERRED COST |
|
| Exchange
differences |
|
58,123,903 |
58,123,903 |
|
| Negotiation fee |
|
16,412,908 |
16,412,908 |
|
| Front end fee |
|
5,244,390 |
5,244,390 |
|
| Expenses
on issue of term finance certificates |
|
11,342,685 |
6,809,646 |
|
|
|
------------------ |
------------------ |
|
|
|
91,123,886 |
86,590,847 |
|
| Less:
Amortization to-date |
|
79,158,281 |
68,568,575 |
|
|
|
------------------ |
------------------ |
|
|
|
11,965,605 |
18,022,272 |
|
|
|
========== |
========== |
|
|
|
|
| 20.
CURRENT PORTION OF NET INVESTMENT IN |
|
| FINANCE
LEASES |
|
| Current
portion including overdue rentals of |
|
| net
investment in finance leases |
|
1,896,012,729 |
1,376,945,211 |
|
| Less:
Provision for doubtful receivable (Note 33) |
|
432,712,354 |
359,912,354 |
|
|
|
------------------ |
------------------ |
|
|
|
1,463,300,375 |
1,017,032,857 |
|
|
|
========== |
========== |
|
|
|
|
| 21.
CURRENT PORTION OF LONG TERM DEPOSITS |
|
| Foreign
currency deposits (Note 18.1) |
|
76,691,170 |
51,381,560 |
|
| Security
deposits (Note 18.2) |
|
996,458 |
181,500 |
|
|
|
------------------ |
------------------ |
|
|
|
77,687,628 |
51,563,060 |
|
|
|
========== |
========== |
|
|
|
|
| 22.
SHORT TERM INVESTMENTS |
|
| Quoted |
|
|
| Shares
of joint stock companies |
|
| Dhan
Fibres Limited |
|
| 33,800
ordinary shares of Rupees 10 each |
|
294,020 |
294,020 |
|
| Sui
Northern Gas Pipelines Limited |
|
|
| 1,417
(2000,177,544) Shares of Rupees 10 each |
|
13,941 |
2,831,441 |
|
| Dewan
Salman Fibres Limited |
|
|
| 619,000
ordinary Shares of Rupees 10 each |
|
-- |
17,182,500 |
|
| Pakistan
State Oil Company Limited |
|
|
|
| 61,500
ordinary Shares of Rupees 10 each |
|
-- |
9,987,600 |
|
| Al-Faysal
Investment Bank Limited |
|
|
| 20,000
ordinary Shares of Rupees 10 each |
|
288,400 |
288,400 |
|
| Fauji
Fertilizers Company Limited |
|
|
| 2,000
ordinary shares of Rupees 10 each |
|
107,400 |
107,400 |
|
| Ibrahim
Fibres Limited |
|
|
| 95,000
ordinary Shares of Rupees 10 Each |
|
1,727,274 |
1,727,274 |
|
|
------------------ |
------------------ |
|
|
2,431,035 |
32,418,635 |
|
|
| Modaraba
and other certificates |
|
| First
Hajveri Modaraba |
|
| 9,500
ordinary certificates of Rupees 10 each |
|
43,784 |
43,784 |
|
| First
Elite Capital Modaraba |
|
|
| 20,600
ordinary certificates of Rupees 10 each |
|
144,769 |
144,769 |
|
| Trust
Modaraba |
|
|
| 14,000
ordinary certificates of Rupees 10 each |
|
152,500 |
152,500 |
|
| 22nd
ICP Mutual Fund |
|
|
| 10,000
ordinary certificates of Rupees 10 each |
|
362,400 |
362,400 |
|
| 23rd
ICP Mutual Fund |
|
| 56,200
ordinary certificates of Rupees 10 each |
|
562,000 |
562,000 |
|
| 24th
ICP Mutual Fund |
|
|
| 124,700
ordinary certificates of Rupees 10 each |
|
1,247,000 |
1,247,000 |
|
|
|
|
------------------ |
------------------ |
|
|
|
2,512,453 |
2,512,453 |
|
|
|
------------------ |
------------------ |
|
|
|
4,943,488 |
34,931,088 |
|
|
| Less:
Provision for diminution in value of investments |
(2,699,688) |
(2,596,993) |
|
|
|
|
------------------ |
------------------ |
|
| Market value |
|
|
2,243,800 |
32,334,095 |
|
| Other
Investments |
|
| Federal
Investment Bonds-Unquoted (Note 22.2) |
|
50,000,000 |
-- |
|
| National
Investment (Unit) Trust-Quoted |
|
| 4,608,393 Units |
|
|
-- |
50,000,000 |
|
|
|
|
|
|
|
| Term
Finance Certificates-Quoted |
|
| Orix
Leasing Pakistan Limited |
|
2,000,000 |
-- |
|
| Paramount
Leasing Corporation Limited |
|
7,374,500 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
9,374,500 |
-- |
|
|
|
|
|
|
| Certificates
of Investment |
|
| Trust
Leasing Corporation Limited |
|
3,000,000 |
-- |
|
| Al-Faisal
Investment Bank Limited |
|
500,000 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
3,500,000 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
67,468,300 |
82,334,095 |
|
|
========== |
========== |
|
|
| 22.1
Market value of other quoted investments was Rupees 9.375 million (2000:
Rupees 48.8 million |
|
| of
NIT Units purchased under resale arrangements). |
|
|
| 22.2
These investment have been made to meet the statutory liquidity requirements
of the Leasing |
|
| Companies
(Establishment and Regulation) Rules, 2000. |
|
|
| 23.
ADVANCES, DEPOSITS, PREPAYMENTS |
|
| AND
OTHER RECEIVABLES |
|
| Short
term advances and profit accrued |
|
| thereon
(Notes 23.1 and 23.2) |
|
366,073,385 |
464,655,843 |
|
| Less:
Provision against doubtful advances (Note 33) |
11,231,198 |
8,231,198 |
|
|
------------------ |
------------------ |
|
| Considered
good |
|
|
354,842,187 |
456,424,645 |
|
|
| Advances
against assets to be lease out |
|
1,147,147 |
9,747,496 |
|
| Income
tax in advance |
|
20,186,083 |
12,345,751 |
|
| Current
portion of long term loans to |
|
|
| employees
(Note 17) |
|
782,652 |
1,170,641 |
|
| Profit
accrued on bank deposits and |
|
|
| loans
(Note 23.2) |
|
6,029,242 |
4,914,156 |
|
| Short
term prepayments |
|
2,506,029 |
3,251,890 |
|
| Exchange
rate differences recoverable from |
|
| State
Bank of Pakistan |
|
27,689,575 |
30,282,946 |
|
| Deposits
for term finance certificates of Paramount |
|
| Leasing Limited |
|
|
-- |
25,000,000 |
|
|
|
|
| Due
from lessees |
|
25,885,117 |
25,248,196 |
|
| Less:
provision against doubtful receivables (Note 33) |
(8,245,810) |
(8,245,810) |
|
|
|
|
------------------ |
------------------ |
|
|
| Considered
good |
|
17,639,307 |
17,002,386 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
430,822,222 |
560,139,911 |
|
|
|
========== |
========== |
|
|
| 23.1
These represent the funds provided for short periods to corporate companies,
financial institutions |
|
| and
individuals under mark-up/musharika arrangements. These are secured against
demand |
|
| promissory
notes, hypothecation of stocks, pledge of shares and directors' personal
guarantees. In |
|
| case
of individuals, these are secured against demand promissory notes and lien on
certificates of |
|
| investment
with the company. These carry mark-up from paisas 3603 to paisas 65.76 per
Rupees |
|
| thousand
per day. These include advances / placements and mark-up / profit accrued
thereon |
|
| provided
to following associated undertakings: |
|
|
|
|
| Crescent
Jute Products Limited |
|
14,617,204 |
191,107,014 |
|
| Crescent
Leasing Limited |
|
-- |
25,042,740 |
|
| Crescent
Investment Bank Limited |
|
-- |
403,425 |
|
|
|
------------------ |
------------------ |
|
|
|
14,617,204 |
216,553,179 |
|
|
|
|
========== |
========== |
|
|
| 23.2
The maximum aggregate balance due from associated undertakings at the end of
any month during |
|
| the
year was Rupees 260.083 million (2000: Rupees 282.324 million). |
|
|
| 24.
CASH AND BANK BALANCES |
|
| Cash in hand |
|
|
83,978 |
33,046 |
|
| Cash
with banks |
|
|
| On
current accounts (Note 24.1) |
|
|
65,361,493 |
93,113,763 |
|
| On
foreign currency account US$ 3,463 and |
|
| Pounds
Sterlings 4,745 (2000: US$ 3,463 and |
|
| Pound
Sterlings 4,770) |
|
|
647,014 |
561,419 |
|
|
| On
dividend accounts |
|
|
1,603,153 |
121,254 |
|
|
|
|
------------------ |
------------------ |
|
| On
deposit accounts |
|
|
67,611,660 |
93,796,436 |
|
| Local
currency (Note 24.2) |
|
|
2,109,096 |
52,252,269 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
69,804,734 |
146,081,751 |
|
|
========== |
========== |
|
|
| 24.1
This includes interest free deposit of Rupees 1.043 million (2000: Rupees
5.043 million) with the |
|
| State
Bank of Pakistan. |
|
|
| 24.2
This represents the deposit with bank at profit rate of 11 percent per annum. |
|
|
| 25.
INCOME FROM LEASE FINANCING |
|
| Income
on finance leases (Note 25.1) |
|
522,510,593 |
500,023,616 |
|
| Documentation
and handling charges |
|
4,472,994 |
2,049,397 |
|
| Income
from termination of leases |
|
1,821,507 |
783,797 |
|
| Fee,
commission and other charges |
|
921,542 |
1,496,443 |
|
|
|
------------------ |
------------------ |
|
|
|
529,726,636 |
504,353,253 |
|
|
|
========== |
========== |
|
|
| 25.1
Included therein is income on finance leases to following |
|
| associated
undertakings: |
|
| Crescent
Greenwood Limited |
|
69,075 |
80,633 |
|
| Crescent
Greenwood Energy Limited |
|
63,348 |
67,504 |
|
|
|
------------------ |
------------------ |
|
|
|
|
132,423 |
148,137 |
|
|
|
========== |
========== |
|
|
| 26.
RETURN ON INVESTMENT, SHORT TERM |
|
| PLACEMENTS,
LOANS AND OTHER ADVANCES |
|
| Return
on bank deposits/placements (Note 26.1) |
|
15,062,851 |
17,479,763 |
|
| Exchange
gain on foreign currency deposit |
|
25,433,310 |
705,134 |
|
| Profit/mark-up
on short term advances (Note 26.1) |
|
76,358,557 |
61,030,913 |
|
| Profit
on Federal Investment Bonds |
|
8,214,712 |
6,318,719 |
|
| Mark-up
on loans to employees |
|
195,522 |
363,351 |
|
|
|
------------------ |
------------------ |
|
|
|
125,264,952 |
85,897,880 |
|
|
|
========== |
========== |
|
|
| 26.1
Included therein is profit/mark-up on short term advances given to following
associated |
|
| undertakings: |
|
|
|
|
|
| Crescent
Leasing Limited |
|
277,808 |
42,740 |
|
| Crescent
Jute Products Limited |
|
12,025,666 |
27,782,892 |
|
| Crescent
Investment Bank Limited |
|
-- |
1,317,124 |
|
|
|
------------------ |
------------------ |
|
|
|
12,303,474 |
29,142,756 |
|
|
|
========== |
========== |
|
|
| 27.
OTHER INCOME |
|
| Dividend
income |
|
| Crescent
Steel and Allied Products Limited- |
|
| Associated
undertaking |
|
273,756 |
76,043 |
|
| Other
companies |
|
2,968,301 |
1,304,382 |
|
|
|
------------------ |
------------------ |
|
|
|
3,242,057 |
1,380,425 |
|
| Gain
on sale of equity investments |
|
394,353 |
5,013,641 |
|
| Gain
on disposal of tangible fixed assets |
|
38,366 |
197,421 |
|
|
|
------------------ |
------------------ |
|
|
|
3,674,776 |
6,591,487 |
|
|
|
========== |
========== |
|
|
| 28.
FINANCIAL AND OTHER CHARGES |
|
| Interest
on long term loans |
|
|
90,906,987 |
119,678,370 |
|
|
|
|
------------------ |
------------------ |
|
| Mark-up
on credit facilities offset |
|
50,149,266 |
91,358,623 |
|
| Return
including net exchange gain on |
|
|
|
| foreign
currency deposits |
|
|
(27,466,511) |
(64,545,242) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
22,682,755 |
26,813,381 |
|
| Profit/mark-up
on redeemable capital (Note 28.1) |
|
119,403,787 |
84,247,302 |
|
| Lease
financial charges |
|
|
666,939 |
928,812 |
|
| Mark-up
on short term finances |
|
|
107,842,955 |
68,392,996 |
|
| Exchange
risk fee |
|
|
11,338,918 |
22,475,039 |
|
| Return
on certificates of Investment |
|
115,174,596 |
87,311,994 |
|
| Commission,
commitment / processing fee and |
|
|
|
| bank charges |
|
|
1,625,412 |
1,127,212 |
|
| Penalties
levied by State Bank of Pakistan |
|
|
|
| on
late payment of exchange risk fee |
|
-- |
7,072,163 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
469,642,349 |
418,047,269 |
|
|
========== |
========== |
|
|
| 28.1
PROFIT/MARK-UP ON REDEEMABLE CAPITAL |
|
| Representing |
|
| Term
finance certificates |
|
|
69,066,971 |
27,312,213 |
|
| Funds
on mark-up basis |
|
|
50,336,816 |
51,712,175 |
|
| Funds
on musharika basis |
|
|
-- |
5,222,914 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
119,403,787 |
84,247,302 |
|
|
|
|
========== |
========== |
|
|
| 29.
ADMINISTRATIVE AND OTHER OPERATING |
|
| Staff
salaries and other benefits (Note 29.1) |
|
32,150,218 |
25,587,387 |
|
| Legal
and professional charges |
|
|
4,595,363 |
3,343,644 |
|
| Rent,
rates and taxes |
|
|
3,926,783 |
2,982,683 |
|
| Travelling
and conveyance |
|
|
1,348,420 |
1,337,095 |
|
| Postage,
telephone and telex |
|
|
2,943,555 |
2,161,615 |
|
| Insurance |
|
|
2,013,050 |
1,968,791 |
|
| Electricity
and water |
|
|
2,446,464 |
1,694,392 |
|
| Stationery
and other supplies |
|
|
1,412,835 |
927,352 |
|
| Advertisement |
|
|
1,937,933 |
1,712,948 |
|
| Business
promotion and entertainment |
|
740,155 |
587,932 |
|
| Repair
and maintenance |
|
|
1,811,129 |
2,325,082 |
|
| Fee
and subscriptions |
|
|
697,229 |
536,586 |
|
| Vehicles'
running |
|
|
840,555 |
661,461 |
|
|
| Auditors'
remuneration |
|
| Audit fee |
|
|
185,000 |
160,000 |
|
| Special
audit fee |
|
|
-- |
75,000 |
|
| Other
certification |
|
|
650,001 |
49,800 |
|
| Out
of pocket expenses |
|
|
15,000 |
13,710 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
265,000 |
298,510 |
|
| Newspapers
and periodicals |
|
|
100,589 |
86,721 |
|
| Donations
(Note 29.8) |
|
|
36,890 |
33,800 |
|
| Depreciation |
|
|
5,481,179 |
3,354,922 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
62,747,347 |
49,600,921 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| 29.1
STAFF SALARIES AND OTHER BENEFITS |
|
| These
include the following amounts contributed towards post employment benefits
during the year: |
|
|
| Gratuity
fund (Notes 29.2to 29.5) |
|
|
3,954,587 |
3,652,466 |
|
| Pension fund |
|
|
-- |
261,397 |
|
| Provident
fund (Note 29.6) |
|
|
684,020 |
774,558 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
4,638,607 |
4,688,421 |
|
|
========== |
========== |
|
|
| 29.2
GRATUITY FUND EXPENSE |
|
| Current
service cost |
|
764,736 |
498,750 |
|
| Interest cost |
|
787,296 |
457,926 |
|
| Expected
return on plan assets |
|
(402,525) |
(349,160) |
|
| Past
service cost - Non-vested |
|
191,950 |
191,950 |
|
| Increase
in past service cost - Vested due to change in benefits |
2,613,130 |
2,460,000 |
|
|
|
------------------ |
------------------ |
|
|
|
3,954,587 |
3,259,466 |
|
| Recognition
of transitional liability |
|
-- |
393,000 |
|
|
|
------------------ |
------------------ |
|
|
|
3,954,587 |
3,652,466 |
|
|
|
========== |
========== |
|
|
|
|
| 29.3
GRATUITY FUND LIABILITY |
|
| Present
value of defined benefit obligations (Funded) |
2,154,600 |
6,560,800 |
|
| Fair
value of plan assets |
|
(2,505,198) |
(3,354,374) |
|
| Unrecognized
past service cost-Non-vested |
|
-- |
(191,950) |
|
| Unrecognized
actuarial gains |
|
429,824 |
51,698 |
|
|
|
------------------ |
------------------ |
|
|
|
79,226 |
3,066,174 |
|
|
|
========== |
========== |
|
|
|
|
| 29.4
MOVEMENT IN THE NET LIABILITY |
|
| Net
liability as on June 30, 2000 |
|
3,066,174 |
-- |
|
| Transitional
liability recognized as on July 01, 2000 |
3,954,587 |
393,000 |
|
| Expense
recognized (Note 29.2) |
|
(6,941,535) |
3,259,466 |
|
| Total
contributions made during the year |
|
-- |
(586,292) |
|
|
|
------------------ |
------------------ |
|
| Net
liability as on June 30, 2001 |
|
79,226 |
3,066,174 |
|
|
|
========== |
========== |
|
|
| 29.5
Gratuity expenses for the year have been recorded on the basis of actuarial
valuation carried out as |
|
| on
June 30, 2001 by an independent consulting actuary using the Projected Unit
Credit Method. |
|
| Actual
return on plan assets was Rupees 555,229. The contributions were made at the
rate of 7.80 |
|
| percent
per annum of basic salaries. |
|
|
|
|
| The
principal actuarial assumptions used are as under: |
|
|
|
|
| Discount rate |
|
12 percent |
12 percent |
|
| Expected
rate of return on plan assets |
|
12 percent |
14 percent |
|
| Expected
rate of salary increase in Future years |
|
10 percent |
10 percent |
|
|
| 29.6
The assets and liabilities of the provident fund trust as on June 30, 2001
was Rupees 10.00 |
|
| million
(2000: Rupees 8.00 million). |
|
|
| 29.7
Number of employees at the end of year were 119 (2000: 92). |
|
|
| 29.8
Included therein is Rupees 30,000 paid to Lahore University of Management
Sciences (LUMS). |
|
| Mr.
Rashid Ahmed, Chief Executive Officer and Managing Director of the company is
also member of |
|
| Board
of Governors of LUMS. |
|
|
|
|
|
|
2001 |
2000 |
|
|
|
Rupees |
Rupees |
|
|
| 30.
PROVISION FOR TAXATION |
|
| Current year |
|
6,925,063 |
6,000,000 |
|
| Prior year's |
|
22,507 |
517,355 |
|
|
|
------------------ |
------------------ |
|
|
|
6,947,570 |
6,517,355 |
|
|
========== |
========== |
|
|
|
| 30.1
The provision for taxation represents the minimum tax due under the Income
Tax Ordinance, 1979. |
|
| However,
after considering the available tax losses, no provision for current taxation
except minimum |
|
| tax
is required. The estimated tax losses available for carry forward are Rupees
1,130 million as on |
|
| June
30, 2001 (2000: Rupees 959 million). |
|
|
|
| Deferred
tax computed under the liability method is estimated at Rupees 119 million
(2000: Rupees |
|
| 186
million). No provision for deferred tax has been made as it is not likely to
reverse in the |
|
| foreseeable
future. According to Securities and Exchange Commission of Pakistan's
circular number |
|
| 16
dated September 09, 1999, capital reserve equivalent to deferred tax
liability amounting to |
|
| Rupees
87.749 million (2000: Rupees 79.749 million) has been provided. |
|
|
| 31.
EARNINGS PER SHARE |
|
| There
is no dilutive effect on the basic earnings per share which is based on: |
|
| Profit
attributable to ordinary |
|
| shareholders |
|
Rupees |
24,836,697 |
21,478,626 |
|
|
========== |
========== |
|
| Weighted
average number of ordinary shares |
|
| outstanding
during the year |
|
|
21,789,306 |
21,789,306 |
|
|
|
|
========== |
========== |
|
| Earnings
per share (Basic) |
|
|
1.14 |
0.99 |
|
|
|
|
========== |
========== |
|
|
| 32.
CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES REMUNERATION |
|
| The
aggregate amount charged in the accounts for the year for remuneration,
including all benefits to |
|
| the
chief executive and executives of the company is as follows: |
|
|
|
CHIEF
EXECUTIVE |
EXECUTIVES |
|
|
|
|
2001 |
2000 |
2001 |
2000 |
|
|
|
|
Rupees |
Rupees |
Rupees |
Rupees |
|
|
|
| Managerial
remuneration |
2,436,300 |
2,370,000 |
3,293,916 |
2,727,600 |
|
| House rent |
|
1,096,335 |
1,066,500 |
1,435,661 |
1,227,420 |
|
| Post
employment benefits |
942,173 |
848,118 |
653,904 |
703,871 |
|
| Utilities |
|
243,630 |
237,000 |
319,036 |
272,760 |
|
| Bonus |
|
591,300 |
615,000 |
582,075 |
688,800 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
5,309,738 |
5,136,618 |
6,284,592 |
5,620,451 |
|
|
|
========== |
========== |
========== |
========== |
|
| Number
of person |
1 |
1 |
21 |
18 |
|
|
|
========== |
========== |
========== |
========== |
|
|
| 32.1
In addition, the chief executive has also been provided free use of two
company's vehicles and |
|
| residential
telephones. The company has also provided club membership fee to three
executives |
|
| including
Chief Executive of the company. |
|
|
| 32.2
The aggregate amount charged in the accounts for the year for fees to 6
directors for 4 meetings are |
|
| Rupees
40,000 (2000: Rupees 50,000 to 6 directors for4 meetings). |
|
|
|
2001 |
2000 |
|
|
Rupees |
Rupees |
|
|
| 33.
PARTICULARS OF SPECIFIC PROVISIONS AGAINST |
|
| NON-PERFORMING
ADVANCES/RECEIVABLES |
|
| Opening
balance |
|
376,389,362 |
287,958,597 |
|
| charge
for the year |
|
75,800,000 |
88,430,765 |
|
| Amount
written off during the year |
|
-- |
-- |
|
|
------------------ |
------------------ |
|
| Closing balance |
|
|
452,189,362 |
376,389,362 |
|
|
|
|
========== |
========== |
|
| Provision
against: |
|
|
| Advances
to banks |
|
|
-- |
-- |
|
| Advances
to others |
|
|
452,189,362 |
376,389,362 |
|
|
========== |
========== |
|
|
|
|
| Provisions
have been reflected in the accounts as |
|
| follows: |
|
| Net
investment in finance leases (Note 20) |
|
432,712,354 |
359,912,354 |
|
| Short
term advances (Note 23) |
|
|
11,231,198 |
8,231,198 |
|
| Due
from lessees (Note 23) |
|
|
8,245,810 |
8,245,810 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
452,189,362 |
376,389,362 |
|
|
========== |
========== |
|
|
| 33.1
The break up of provision between principal and mark-up is as under: |
|
|
|
|
|
|
2001 |
2000 |
|
|
|
Principal |
Mark-up |
Principal |
Mark-up |
|
|
|
Rupees |
Rupees |
Rupees |
Rupees |
|
| Net
Investment in |
|
| finance lease |
|
158,291,388 |
274,420,966 |
91,598,363 |
268,313,991 |
|
| Short
term advances |
7,516,613 |
3,714,585 |
4,516,613 |
3,714,585 |
|
| Due
from lessees |
6,205,155 |
2,040,655 |
6,205,155 |
2,040,655 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
172,013,156 |
280,176,206 |
102,320,131 |
274,069,231 |
|
|
|
========== |
========== |
========== |
========== |
|
|
| 34.
INTEREST/MARK-UP RATE RISK |
|
| Interest/mark-up
rate and sensitivity of the company's financial liabilities and financial
assets as at |
|
| June 30, 2001 can
be evaluated from the following: |
|
|
|
|
EXPOSED TO INTEREST/MARK-UP |
|
EXPOSED TO INTEREST/MARK-UP |
|
NOT |
|
|
RATE PRICE RISK |
|
RATE CASH FLOW RISK |
|
EXPOSED |
|
|
FINANCIAL |
|
More |
|
More |
|
TO INTEREST |
|
|
INSTRUMENTS |
Within |
Than One |
Above |
Within |
Than One |
Above |
MARK-UP |
|
|
|
One year |
Year and |
Five |
One Year |
Year and |
Five |
RATE RISK |
|
|
|
Upto Five |
Years |
|
Upto Five |
Years |
|
|
|
|
Years |
|
Years |
|
|
|
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
Rupees |
|
Rupees |
|
| LIABILITIES |
|
| Redeemable
capital |
948,847,600 |
193,595,911 |
755,251,689 |
-- |
-- |
-- |
-- |
-- |
|
| Long
term loans |
761,303,709 |
121,292,631 |
131,933,511 |
25,017,567 |
193,200,000 |
289,800,000 |
-- |
-- |
|
| Certificates
of Investment |
774,627,080 |
343,282,653 |
431,344,427 |
