| AKD Securities & Safe Deposits Company
Limited |
|
|
|
|
|
| Annual
Report 1998 |
|
|
|
| CONTENTS |
|
|
| Company
Information |
|
| Notice
of Meeting |
|
|
| Directors'
Report |
|
|
| Auditors'
Report |
|
| Balance
Sheet |
|
| Profit
& Loss Account |
|
|
| Cash
Flow Statement |
|
|
| Notes
to the Accounts |
|
|
|
| COMPANY
INFORMATION |
|
|
| Board
of Directors |
Mr. Aqeel A. Karim Dhedhi |
|
|
(Chairman) |
|
|
Mr. Faisal Bengali |
|
|
(Chief Executive) |
|
|
Mr. Haji A. Karim Haji
Abdul Rehman Dhedhi |
|
|
Mr. Haji Iqbal Haji
Ismail |
|
|
Mr. Iqbal A. Karim |
|
|
Mr. Tariq Adam Ghumra |
|
|
Mrs. Yasmeen Aqeel A.
Karim |
|
|
| Company
Secretary |
Mr. Ilyas Haji Ahmed |
|
|
|
| Auditors |
|
Hyder Bhimji & Co. |
|
|
|
Chartered Accountants |
|
|
|
| Bankers |
|
Muslim Commercial Bank
Ltd. |
|
|
Prime Commercial Bank
Ltd. |
|
|
United Bank Ltd. |
|
|
| Legal
Advisors |
Saiyda Dilshad Begum |
|
|
|
| Registered
Office |
533-534, Karachi Stock
Exchange Bldg., |
|
|
Karachi-74000 |
|
|
Tel: (92-21) 2436461 (3
lines) |
|
|
Fax: (92-21) 2426429 |
|
|
|
| NOTICE
OF ANNUAL GENERAL MEETING |
|
|
| Notice
is hereby given that the Sixty Fourth Annual General Meeting of the
Shareholders |
|
| of
the Company will be held at the Registered Office of the Company at 533-534, |
|
| Karachi
Stock Exchange Building, Stock Exchange Road, Karachi, on Monday |
|
| December
27, 1999, at 9:30 a.m. to transact the following business: |
|
|
|
| 1.
To confirm the Minutes of the Extra Ordinary General Meeting held on December |
|
| 31, 1998. |
|
|
| 2.
To receive, consider and adopt the Annual Accounts for the year ended June
30, 1999 |
|
| together
with Directors and Auditors Report thereon. |
|
|
| 3.
To appoint Auditors and to fix their remuneration. |
|
|
| 4.
To transact any other business with the permission of the chair, |
|
|
| By
older of the Board |
|
|
| Place:
Karachi |
|
| Dated: November 29, 1999 |
Company Secretary |
|
|
| NOTES: |
|
|
| 1.
The Share Transfer books of the Company will remain closed from December 22, |
|
| 1999
to December 27, 1999 (both days inclusive.) |
|
|
| 2.
A member entitled to attend and vote at this meeting may appoint a proxy. A
proxy |
|
| form
must be received at the Registered Office of the Company duly stamped, signed |
|
| and
witnessed not less than 48 hours before the meeting. |
|
|
| 3. Members are requested to notify the Company
of any change in their addresses. |
|
|
|
|
| DIRECTORS
REPORT |
|
|
| The
Directors take pleasure in presenting the Annual Report together with the
Audited |
|
| Accounts
for the year ended June 30, 1999. |
|
|
| The
Financial results are as follows: |
|
|
| (Loss)
for the year before taxation |
|
Rs. |
( 143,913.00 ) |
|
| Provision
for taxation |
|
Rs. |
41,714.00 |
|
|
|
---------- |
|
| Net
(Loss) after taxation |
|
Rs. |
(185,627.00) |
|
| Unappropriated
Profit brought forward |
|
Rs. |
231,648.00 |
|
|
|
---------- |
|
| Unappropriated
Profit carried forward |
|
Rs. |
46,021.00 |
|
|
========== |
|
|
|
|
| During
the year the Company suffered a loss of Rs. 143,913.00 as against a loss of |
|
| Rs.
168,955.00 of the last year due to decline in Consultancy Income. The Company
also |
|
| could
not generate any Capital Gain due to depressed condition of the Stock market.
However |
|
| the
management is hopeful about the performance of the Stock Exchange in the
current year |
|
| and
hopes to earn Capital Gain to turn the Company around from loss to profit. |
|
|
| Change
in the Board of Directors |
|
| During
the period under review Mr. Munir M. Ladha & Mr. Khalid Nazir resigned
from the |
|
| Board
as directors of the Company. Mr. Faisal Bengali & Mr. Tariq Adam Ghumra
were |
|
| co-opted
as directors for the remaining term. The Board wishes to thanks the outgoing |
|
| directors
for the valuable contribution while serving as directors of the Company. The
Board |
|
| also
elected Mr. Faisal Bengali as Chief Executive for the remaining term. |
|
|
| Compliance
of Year 2000 |
|
| The
Company has successfully resolved the problem of Y 2K as all computers and
programs |
|
| of
the Company are completely in compliance of Y2K. |
|
|
| Auditors |
|
| The
Auditors M/s Hyder Bhimji & Co., Chartered Accountants retire and being
eligible offer |
|
| themselves
for appointment in the coming year. |
|
|
| Pattern
of Shareholding |
|
| The
pattern of shareholding as on June 30, 1999 is annexed to this report. |
|
|
| Acknowledgment |
|
| The
Directors also wishes to express their thanks to the Securities &
Exchange Commission |
|
| of
Pakistan & valued clients. The Directors also thanks the staff for the
continued hard work |
|
| &
support during the year under review. |
|
|
| On
behalf of the Board of Directors. |
|
|
| FAISAL
BENGALI |
|
| Chief
Executive |
|
| Karachi
the November 29, 1999 |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of AKD SECURITIES & SAFE DEPOSIT
COMPANY |
|
| LIMITED,
as at June 30, 1999 and the related Profit and Loss account and Statement of
Changes in |
|
| Financial
Position (Cash Flow Statement) together with the notes forming part thereof,
and we state that |
|
| we
have obtained all the information and explanations which to the best of our
knowledge and belief were |
|
| necessary
for the purpose of our audit and, after due verification thereof, we report
that: |
|
|
| a)
in our opinion, proper books of 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 were for the purpose o1' Company's
business: |
|
| and |
|
|
| iii.
the business conducted, investments made and the expenditure incurred during
the year |
|
| were
in accordance with the objects of the Company: |
|
|
| c)in
our opinion and to the best of our information and according to the
explanations given to us, |
|
| the
Balance Sheet, Profit and Loss Account and the Statement of changes in
Financial Position |
|
| (Cash
Flow Statement) together with the notes forming part thereof, give the
information required |
|
| by
the Companies Ordinance, 1984 in the manner so required and respectively give
a true and |
|
| fair
view of the state of the Company's affairs as at June 30, 1999 and of the
loss for the year |
|
| then
ended; and |
|
|
| d)
in our opinion, no Zakat was deductible at source under the Zakat and Ushr
Ordinance, 1980. |
|
|
|
HYDER BHIMJI & CO |
|
| KARACHI:
the November 29, 1999 |
|
CHARTERED ACCOUNTANTS |
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1999 |
|
|
|
|
1999 |
1998 |
|
|
Note |
Rupees |
Rupees |
|
| CAPITAL
& RESERVES |
|
| Share
Capital: |
|
| Authorised:
10,000,000 |
|
| (!
998: 10,000,000) |
|
| shares
of Rs. 10/- each |
|
|
|
| Issued,
Subscribed & Paid Up |
|
100,000,000 |
100,000,000 |
|
|
========== |
========== |
|
| Capital |
|
3 |
14,884,431 |
1,488,443 |
|
| Unappropriated
Profit |
|
46,021 |
231,648 |
|
|
---------- |
---------- |
|
|
1,534,464 |
1,720,091 |
|
|
| CURRENT
LIABILITIES |
|
| Accrued
Liabilities |
|
4 |
491,591 |
535,899 |
|
| Deposit-Key
Deposit Lockers |
|
36,290 |
36,290 |
|
| Provision
for Taxation |
|
8,292 |
23,388 |
|
| Unclaimed
Dividend |
|
353,022 |
353,022 |
|
|
---------- |
---------- |
|
|
889,195 |
948,599 |
|
|
| Contingencies
& Commitments |
|
|
---------- |
---------- |
|
|
2,423,659 |
2,668,690 |
|
|
========== |
========== |
|
| FIXED
ASSETS |
|
| Operating
Assets |
|
5 |
585, 110 |
650,122 |
|
|
|
|
|
| SECURITY
DEPOSITS |
|
|
323,413 |
611,813 |
|
|
|
|
| CURRENT
ASSETS |
|
|
|
| Trade
Debtors |
|
6 |
313,360 |
482,037 |
|
| Advances
& Prepayments |
|
7 |
|
275,203 |
|
| Short
Term investments |
|
8 |
629 |
629 |
|
| Advance
Income Tax |
|
|
140,371 |
141,781 |
|
| Cash
& Bank Balances |
|
9 |
1,060,776 |
507,105 |
|
|
|
---------- |
---------- |
|
|
1,515,136 |
1,406,755 |
|
|
---------- |
---------- |
|
|
2,423,659 |
2,668,690 |
|
|
========== |
========== |
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
| Karachi
the November 29, 1999 |
|
Faisal Bengali |
|
Iqbal A. Karim |
|
|
Chief Executive |
|
Director |
|
|
|
| PROFIT
& LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 1999 |
|
|
|
|
1999 |
1998 |
|
|
Note |
Rupees |
Rupees |
|
|
|
|
| Operating
Revenue |
|
10 |
1,515,792 |
4,437,304 |
|
| Capital
Gain / (Loss) on Investment |
|
11 |
-- |
(266,387) |
|
|
---------- |
---------- |
|
|
1,515,792 |
4,170,917 |
|
| Operating
Expenses |
|
12 |
1,660,076 |
4,357,930 |
|
|
---------- |
---------- |
|
| Operating
(Loss) Before Taxation |
|
(144,284) |
(187,013) |
|
| Other
Income |
|
13 |
371 |
18,058 |
|
|
---------- |
---------- |
|
| (Loss)
before taxation |
|
(143,913) |
(168,955) |
|
|
| Provision
for Taxation - Current |
|
(8,292) |
(23,388) |
|
|
- Prior |
|
(33,422) |
(52,920) |
|
|
---------- |
---------- |
|
|
(41,714) |
(76,308) |
|
|
---------- |
---------- |
|
| (Loss)
after taxation |
|
(185,627) |
(245,263) |
|
| Unappropriated
Profit brought forward |
|
231,648 |
476,911 |
|
|
---------- |
---------- |
|
| Unappropriated
Profit carried to Balance Sheet |
|
46,021 |
231,648 |
|
|
========== |
========== |
|
| NOTE:
The annexed notes form an integral part of these accounts. |
|
|
| Karachi
the November 29, 1999 |
|
Faisal Bengali |
|
Iqbal A. Karim |
|
|
Chief Executive |
|
Director |
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| FOR
THE YEAR ENDED JUNE 30, 1999 |
|
|
|
|
1999 |
1998 |
|
|
Note |
Rupees |
Rupees |
|
|
| Cash
Generated from Operating Activities |
|
| Profit/(Loss)
Before Taxation |
|
(143,913) |
(168,955) |
|
| Adjustment
for: |
|
|
|
| Depreciation |
|
65,012 |
72,236 |
|
|
---------- |
---------- |
|
| Profit
before working .capital changes |
|
(78,901) |
(96,719) |
|
|
| Changes
in working capital:- |
|
| 'Increase/(Decrease)
in Current Assets: |
|
| Trade
Debtors |
|
168,677 |
(168,677) |
|
| Advances
& Prepayments |
|
275,203 |
55,081 |
|
| Increase
/ (Decrease) in Current Liabilities: |
|
|
|
| Accrued
Liabilities |
|
(44,308) |
(381,167) |
|
|
---------- |
---------- |
|
|
399,572 |
(494,763) |
|
|
---------- |
---------- |
|
| Cash
generated from operations |
|
320,671 |
(591,482) |
|
| Taxes Paid |
|
(55,400) |
(362,407) |
|
| Long
Term Deposits |
|
-- |
-- |
|
|
---------- |
---------- |
|
|
(55,400) |
(362,407) |
|
|
---------- |
---------- |
|
| Net
Cash Generated from Operating Activities |
|
265,271 |
(953,889) |
|
|
|
|
| Cash
(Outflow) / Inflow from Investing Activities |
|
| Capital
Expenditure |
|
-- |
(111,110) |
|
| Investment
Acquired |
|
-- |
825,295 |
|
| Security
Deposit |
|
288,400 |
-- |
|
|
---------- |
---------- |
|
| Net
cash inflow (outflow) from investing activities |
|
288,400 |
714,185 |
|
|
---------- |
---------- |
|
|
553,671 |
(239,704) |
|
| Cash
(Outflow) / Inflow from Financing Activities |
|
| Payment
of Dividend |
|
-- |
(32,812) |
|
|
---------- |
---------- |
|
| Net
increase in cash & cash equivalent |
|
553,671 |
(272,516) |
|
| Cash
& Cash Equivalents at the beginning of the year |
|
507,105 |
779,621 |
|
|
---------- |
---------- |
|
| Cash
& Cash Equivalents at the end of the year |
|
1,060,776 |
507,105 |
|
|
========== |
========== |
|
| Karachi
the November 29, 1999 |
|
Faisal Bengali |
|
Iqbal A. Karim |
|
|
Chief Executive |
|
Director |
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 1999 |
|
|
| 1.
THE COMPANY AND ITS BUSINESS: |
|
| The
Company was incorporated as a Public Limited Company in the year 1936 and its |
|
| shares
are quoted on the Karachi Stock Exchange. The Company's Principal activity is |
|
| leasing
/ hiring of safe deposit lockers. |
|
|
| 2.
ACCOUNTING POLICIES: |
|
| 2.1
Accounting Convention |
|
| The
accounts of the company are prepared under the historic cost convention. |
|
|
| 2.2
Fixed Assets: |
|
| a)
Fixed Assets are stated at cost less accumulated depreciation. |
|
| b)
Full year's depreciation is charged on the Assets acquired during the year, |
|
| whereas
no depreciation is charged in the year of disposal. |
|
| c)
Depreciation is charged on the Assets by reducing balance method. |
|
| d)
Normal repairs and maintenance are charged to income as when incurred. |
|
|
| 2.3
Short Term Investment: |
|
| Investment
in quoted shares is stated at cost. |
|
|
| 2.4
Trade Debtors: |
|
| These
are stated net of provision for doubtful debts. Full provision is made
against |
|
| debts
considered doubtful. |
|
|
| 2.5
Revenue Recognition: |
|
| a)
Realised gains on investment |
|
| Capital
gains or losses on sale of investments are taken to income in the period |
|
| in
which they arise. |
|
| b)
Dividend income is recognised at the time of book closure of the company |
|
| declaring
the dividend. |
|
| c)Consultancy
and advisory fee are recognised as and when services are |
|
| provided. |
|
| d) Hiring income of lockers is recognised as
and when lockers services are |
|
| provided. |
|
|
| 2.6
Taxation: |
|
| The
charge for current taxation is based on taxable income, if any, at the
current |
|
| rate
of taxation after considering admissible tax credits and rebates, if any. The |
|
| Company
accounts for deferred taxation based on the material timing differences |
|
| using
the liability method, but does not account for any net deferred tax. |
|
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
| 3.
SHARE CAPITAL |
|
| Issued,
Subscribed & Paid Up |
|
| 49,521
Ordinary Shares of Rs. 10/- |
|
| fully
paid in cash. |
|
495,210 |
495,210 |
|
|
| 99,042
Ordinary Shares of Rs. 10/- |
|
| issued
as fully paid Bonus Shares |
|
990,420 |
990,420 |
|
|
| 479
Ordinary Shares of Rs. 10/- each |
|
| forfeited |
|
2,813 |
2,813 |
|
|
---------- |
---------- |
|
|
1,488,443 |
1,488,443 |
|
|
========== |
========== |
|
| 4.
ACCRUED LIABILITIES |
|
| Accrued
Liabilities |
|
16,585 |
16,585 |
|
| Accrued
Expenses |
|
35,006 |
60,557 |
|
| Other
Liabilities |
|
440,000 |
458,757 |
|
|
---------- |
---------- |
|
|
491,591 |
535,899 |
|
|
========== |
========== |
|
| 5. FIXED ASSETS |
|
|
7 |
|
|
|
|
COST |
|
Rate |
|
DEPRECIATION |
|
| Particulars |
|
As at |
|
As at |
|
As at |
For the |
As at |
Value as on |
|
|
Addition |
|
% |
|
|
1/7/98 |
|
30-06-99 |
|
1/7/98 |
year |
30-06-99 |
30-06-99 |
| Furniture |
|
276,350 |
-- |
276,350 |
10 |
60,031 |
21,632 |
81,663 |
194,687 |
| Office
Equipment |
413,500 |
-- |
413,500 |
10 |
93,400 |
32,010 |
125,410 |
288,090 |
| Computers |
|
121,250 |
-- |
121,250 |
10 |
31,240 |
9,001 |
40.24 |
81,009 |
| Lockers |
|
32,500 |
-- |
32,500 |
10 |
8,807 |
2,369 |
11,176 |
21,324 |
|
|
| Total
Rs. 1999 |
843,600 |
-- |
843,600 |
|
193,478 |
65,012 |
258,490 |
585,110 |
|
|
| Total
Rs. 1998 |
843,600 |
-- |
843,600 |
|
121,242 |
72,236 |
193,478 |
650,122 |
|
|
|
|
|
|
|
1999 |
1998 |
|
|
Rupees |
Rupees |
|
| 6.
TRADE DEBTORS- (CONSIDERED GOOD) |
|
|
|
| Receivable
against consultancy fee |
|
300,000 |
300,000 |
|
| Reimbursable
consultancy expenses |
|
13,360 |
13,360 |
|
| Others |
|
-- |
168,677 |
|
|
---------- |
---------- |
|
|
313,360 |
482,037 |
|
|
========== |
========== |
|
|
|
|
| 7.
ADVANCES |
|
|
|
| Staff |
|
-- |
220,000 |
|
| Others |
|
-- |
55,203 |
|
|
---------- |
---------- |
|
|
-- |
275,203 |
|
|
========== |
========== |
|
|
|
| 8.
SHORT TERM INVESTMENT |
|
|
| 1998 |
1999 |
|
| (No of |
(No of |
|
| shares) |
shares) |
|
|
Jute |
|
| 119 |
119 |
Pakistan Jute &
Synthetics Ltd |
|
629 |
629 |
|
|
| 9.
CASH & BANK BALANCES |
|
| Cash
in Hand |
|
742 |
4,197 |
|
| Cash at Bank |
|
| -
Current Account |
|
1,060,034 |
502,908 |
|
|
---------- |
---------- |
|
|
1,060,776 |
507,105 |
|
|
========== |
========== |
|
|
|
|
| 10.
OPERATING REVENUES: |
|
| Consultancy
Fee |
|
1,500,000 |
4,340,850 |
|
| Share
Custody Income |
|
-- |
44,200 |
|
| Dividend
Income |
|
15,792 |
26,604 |
|
|
---------- |
---------- |
|
|
1,515,792 |
4,411,654 |
|
|
========== |
========== |
|
|
|
|
| 11.
CAPITAL GAIN / (LOSS) ON INVESTMENT |
|
|
|
| Sales |
|
-- |
1,891,908 |
|
| Cost of Sales |
|
|
|
| Opening
Balance |
|
-- |
825,924 |
|
| Purchases |
|
-- |
1,333,000 |
|
| Less:
Closing Stock |
|
-- |
(629) |
|
|
---------- |
---------- |
|
|
-- |
2,158,295 |
|
|
---------- |
---------- |
|
|
-- |
(266,387) |
|
|
========== |
========== |
|
|
|
|
| 12.
OPERATING EXPENSES |
|
| Salaries
& Benefits |
|
142,500 |
1,665,727 |
|
| News
paper and Periodicals |
|
10,109 |
6,237 |
|
| Advertisement |
|
23,150 |
13,100 |
|
| Computer
Supplies & Stationery |
|
28,690 |
67,060 |
|
| Conveyance
& Travelling |
|
7,278 |
63,499 |
|
| Repair
& Maintenance |
|
55,430 |
209,090 |
|
| Postage
Fax & Telephone |
|
169,778 |
335,512 |
|
| Office
Supplies & Expenses |
|
93,990 |
39,373 |
|
| Fees
Taxes & Subscription |
|
21,947 |
8,800 |
|
| Vehicle
Running Expenses |
|
3,750 |
9,480 |
|
| Insurance
Charges |
|
55,203 |
128,557 |
|
| Listing Fee |
|
25,000 |
25,000 |
|
| Lease Rent |
|
691,000 |
1,222,215 |
|
| Legal
& Professional Charges |
|
124,050 |
79,000 |
|
| Electricity
Charges |
|
89,414 |
59,996 |
|
| Entertainment |
|
19,323 |
8,135 |
|
| General
Expenses |
|
22,890 |
10,400 |
