| Askari
Leasing Limited |
|
|
|
|
|
|
|
|
|
|
|
| Annual Report 1999 |
|
|
|
|
| CONTENTS |
|
|
| Corporate Information |
|
|
| Notice of Meeting |
|
|
| Directors' Report |
|
|
| Auditors' Report |
|
|
| Balance Sheet |
|
|
| Profit and Loss Account |
|
|
| Statement
of Changes in Financial Position |
|
| Notes to the Accounts |
|
|
| Pattern of Shareholding |
|
|
| Financial Highlights |
|
|
|
|
| CORPORATE INFORMATION |
|
| BOARD OF DIRECTORS |
|
|
| Lt. Gen. (R)Mohammad Afsar |
|
Chairman |
|
|
| Brig. (R)Ikram-uI-Hasan |
|
Director |
|
|
| Brig. (R) Muhammad Ayub |
|
Director |
|
|
| Brig. (R) Ghulam All |
|
Director |
|
|
| Brig. (R) Gul Zaman Satti |
|
Director |
|
|
| Mr. Khalid Sharwani |
|
Director |
|
|
| Mr. Shujat All Khan |
|
Director |
|
|
| Dr. Amjad Waheed |
|
Director (NIT Nominee) |
|
|
| CHIEF EXECUTIVE |
Mr. Taimur Afzal |
|
|
|
| COMPANY SECRETARY |
Mr. Zafar Alam Khan
Sumbal |
|
|
|
| BANKERS |
Askari Commercial Bank
Limited |
|
|
American Express Bank
Limited |
|
|
ABN-AMRO Bank N.V. |
|
|
ANZ Grindlays Bank
Limited |
|
|
The Bank of Punjab |
|
|
Citibank N.A. |
|
|
Emirates Bank
International PJSC |
|
|
Habib American Bank |
|
|
United Bank Limited |
|
|
The Hong Kong and
Shanghai Banking Corporation Limited |
|
|
Standard Chartered Bank |
|
|
| AUDITORS |
Taseer Hadi Khalid &
Co. |
|
|
Chartered Accountants |
|
|
| LEGAL ADVISOR |
Walker Martineau Saleem |
|
|
Mr. M. Hanif Bhatti |
|
|
| REGISTERED |
|
| OFFICE/HEAD OFFICE |
5th Floor, AWT Plaza, |
|
|
The Mall, Rawalpindi. |
|
|
Telephone: (051)
511309-11, 566153, 515289 |
|
|
UAN 111-111-345 |
|
|
Fax: (051) 565670 |
|
|
| REGISTRAR AND SHARE |
|
| TRANSFER OFFICE |
Askari Associates (Pvt.)
Ltd. |
|
|
6th Floor, AWT Plaza, The
Mall, P.O:' Box 678, Rawalpindi. |
|
|
Telephone: (051)
514370-71, 516108 |
|
|
Fax: (051) 516109 |
|
|
E.Mail:
askari@isb.compol.com |
|
|
|
|
|
| NOTICE OF THE SEVENTH |
|
| ANNUAL
GENERAL MEETING |
|
|
| Notice
is hereby given that the Seventh Annual General Meeting of Askari Leasing
Limited will be held on Friday, |
|
| December
24, 1999 at 9:00 a.m., in Blue Lagoon Complex, Opposite Pearl Continental
Hotel outward gate, |
|
| Rawalpindi
to transact the following business:- |
|
|
| 1.
To confirm the minutes of the 6th Annual General Meeting of the company held
on December 18, 1998. |
|
|
|
|
| 2.
To receive, consider and adopt the Audited Accounts together with Directors'
and Auditors' Reports thereon |
|
| for the year ended June 30,
1999. |
|
|
|
|
|
| 3.
To appoint Auditors of the company for the year ending June 30, 1999 and to
fix their remuneration. The |
|
| present
Auditors being eligible, offer themselves for re-appointment. |
|
|
|
|
| 4.
To approve the payment of 20% cash dividend (Rs. 2.00 per share) as
recommended by the Board of |
|
| Directors for the year ended
June 30, 1999. |
|
|
|
| 5.
To transact any other business with the permission of the Chair. |
|
|
| By Order of the Board |
|
|
| Dated: November 8, 1999 |
|
Zafar Alam Khan Sumbal |
|
| Place: Rawalpindi |
|
Company Secretary |
|
|
| NOTES: |
|
|
| 1. Closure of Share Transfer
Books |
|
|
| The
Share Transfer Books of the company will be closed from December 1, 1999 to
December 11, 1999 |
|
| (both
days inclusive). Cash dividend will be paid to the shareholders whose names
appear on the Register |
|
| of Members on December 01,
1999. |
|
|
|
| 2.
Change in Address and Consolidation of Folios |
|
| Members
are requested to immediately notify the change of address, if any, and ask
for consolidation of |
|
| folio
numbers, provided any member holds more than one folio, to our Registrar,
Askari Associates (Private) |
|
| Limited,
6th Floor, AWT Plaza, The Mall, Rawalpindi. |
|
|
| 3. Participation in General
Meeting |
|
|
| A
member entitled to attend and vote at the meeting is entitled to appoint a
proxy to attend the meeting |
|
| and
vote for him / her. The form of proxy, duly completed, in order to be
effective must be received by the |
|
| company
at its Registered Office at least 48 hours before the meeting. |
|
|
|
|
|
|
|
| DIRECTORS' REPORT |
|
| The
Board of Directors of your company has the pleasure in presenting the Seventh
Annual Report with the audited |
|
| accounts
of your company for the year ended June 30, 1999. |
|
|
| FINANCIAL RESULTS |
|
Rs. in ('000) |
|
|
|
|
| Total revenue |
|
797,590 |
|
| Total expenditure |
|
726,689 |
|
| Profit for the year |
|
70,901 |
|
| Provision for taxation |
|
8,500 |
|
| Un-appropriated profit
brought forward |
|
6,438 |
|
| Transferred from general
reserve |
|
115,000 |
|
| Profit available for
appropriation |
|
183,839 |
|
| Transferred to reserve fund |
|
12,480 |
|
| Transferred to deferred tax
reserve |
|
46,900 |
|
| Transferred to contingency
reserve |
|
75,000 |
|
| Proposed cash dividend |
|
48,000 |
|
| Un-appropriated profit
carried forward |
|
1,459 |
|
|
| DIVIDEND |
|
| The
Board of Directors has recommended a 20% cash dividend for the year ended
June 30, 1999. |
|
|
| RIGHT SHARES |
|
| The
Board has recommended issue of 35% right shares (subject to necessary
approvals) which will enhance capital |
|
| of the company by Rs 84
million. |
|
|
| REVIEW OF OPERATIONS |
|
| The
political and economic situation of the country remained uncertain throughout
the year resulting in un-favourable |
|
| business
environment. Limited corporate leases were generated by large creditworthy
corporate entities. This |
|
| paucity
of business resulted in shrinkage of margins as the competition became
intense. During this financial year |
|
| we
also changed our income recognition policy from sum of digits to the more
widely used annuity method. Bad |
|
| debts
in the financial sector continues to be an issue that requires resolution
through managerial efforts and changes |
|
| in the legal environment. |
|
|
| It
is in this background that, we have made a major shift in our business
strategy. We have focused ourselves on |
|
| the
transport sector and launched a major product "Askar" aimed at
individual and corporate clients. The scheme |
|
| was
launched in March 1999. It has been quite successful and we have met our
initial objectives. We are confident |
|
| that
"Askar" will play a significant role in the future growth of the
company. |
|
|
| During
the year ended June 30, 1999, Askari Leasing disbursed leases worth Rs 1.2
billion. On June 30, 1999, |
|
| total
balance sheet footing of the company was Rs 5.6 billion, an increase of 12%
from the previous year. Net |
|
| investment
in leases stood at Rs 4.1 billion as against last year's figure of Rs 3.8
billion. In the big and medium |
|
| ticket
leases we kept our focus on the top local and multinational blue chip
companies. Certificates of Investment |
|
| (COIs)
continue to be the backbone of our funding requirements. Total COIs
outstanding at the year-end were |
|
| Rs
3.6 billion. During the year your company successfully completed Rs 113
million first ever lease rental- |
|
| based
securitization transaction. The liquidity position remained comfortable
during the year. |
|
|
| The
analysis of the income statement shows the lease income at Rs 638 million as
compared to Rs 594 million |
|
| for
the previous period. The total income for the year was Rs 798 million. The
financial charges for the year were |
|
| Rs
665 million as compared to the last year's figure of Rs 530 million. The
administrative expenses were Rs 50 |
|
| million
as compared to Rs 41 million mainly due to an aggressive marketing strategy
pursued for "Askar". |
|
|
|
| Asset
wise lease analysis indicates a continuing change in the composition of the
leased assets. Vehicles represent |
|
| 24%
of the total lease portfolio mainly due to "Askar" and our focus on
vehicle leases as better quality asset. |
|
| However,
machinery has still the largest share with 65%. Geographical distribution
remained more or less similar |
|
| to
that of the last year with a major share in Lahore (40%) & Karachi (39%),
while the rest is shared by the other |
|
| branches.
Sector wise analysis shows, 21% in Energy, Oil and Gas, 14% in Textile, 12%
in Chemical and |
|
| Pharmaceutical
and 11% in Services, while the rest is spread over 17 different sectors. |
|
|
| We
place a lot of emphasis on the quality of the human resource. We have
invested a considerable amount |
|
| for
training of our employees which has paid rich dividends. The management and
the employees deserve a pat |
|
| on
their backs for their devotion and hard work without which these results
would not have been possible. |
|
|
| CREDIT RATING |
|
|
| Despite
the political turmoil and the downturn in the economy, your company has
sustained these pressures to |
|
| maintain
its credit rating. The Pakistan Credit Rating Agency (PACRA), has maintained
Askari Leasing's entity |
|
| rating
at "A" for long term obligations and "AI" for short term
obligations. |
|
|
| PACRA
has also maintained the rating at "A+" of Rs 250 million TFCs
issued by the company. |
|
|
| Y2K ISSUE |
|
|
| The
Directors are pleased to confirm that the hardware and software of your
company are Y2K compliant. |
|
|
| AUDITORS |
|
|
| The
Auditors, M/s Taseer Hadi Khalid and Company, Chartered Accountants, retire
and being eligible offer themselves |
|
| for reappointment. |
|
|
| PATTERN OF SHAREHOLDING |
|
|
| The
pattern of shareholding of the Company as at June 30, 1999 is shown on page
30. |
|
|
| ACKNOWLEDGMENT |
|
|
| The
Board wishes to place on record our thanks to our customers, our bankers,
credit rating agency and our |
|
| shareholders
for their undeterred support to the company. We take this opportunity to
thank Securities and Exchange |
|
| Commission
of Pakistan, State Bank of Pakistan and other regulatory authorities for
their on-going guidance and |
|
| support. |
|
|
| Rawalpindi |
|
|
Lt. Gen. (R) Mohammad
Afsar |
|
| November 8, 1999 |
|
|
CHAIRMAN AND DIRECTOR |
|
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
|
| We
have audited the annexed balance sheet of Askari Leasing Limited as at 30
June 1999 and the related profit |
|
| and
loss account and the statement of changes in financial position, 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 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
except for the change as |
|
| explained
in note 2.3 with which we concur; |
|
|
| ii)
the expenditure incurred during the year was for the purpose of the company's
business; and |
|
|
| iii)
the business conducted, investments made and the expenditure incurred during
the year were in |
|
| accordance
with the objects of the company; |
|
|
| c)
in our opinion and to the best of our information and according to the
explanations given to us, the balance |
|
| sheet,
profit and loss account and the statement of changes in financial position,
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 |
|
| 30
June 1999 and of the profit and the changes in financial position for the
year then ended; and |
|
|
| d)
in our opinion Zakat deductible at source under the Zakat and Ushr Ordinance,
1980 was deducted by the |
|
| company
and deposited in the Central Zakat Fund established under section 7 of that
Ordinance. |
|
|
| ISLAMABAD |
|
TASEER HADI KHALID &
CO. |
|
| November 8, 1999 |
|
CHARTERED ACCOUNTANTS |
|
|
|
| BALANCE SHEET |
|
| AS AT JUNE 30, 1999 |
|
|
|
1999 |
1998 |
|
|
Note |
Rupees |
Rupees |
|
|
|
(in '000) |
(in '000) |
|
|
| ASSETS |
|
|
| Fixed Assets - Tangible |
|
3 |
21,667 |
20,750 |
|
| Long Term Advances |
|
4 |
9,163 |
9,056 |
|
| Deferred Costs |
|
|
1,363 |
1,433 |
|
| Long Term Investments |
|
5 |
5,000 |
5,000 |
|
|
| Net Investment in Lease
Finance |
|
| Minimum lease payments |
|
4,762,161 |
4,156,246 |
|
| Add: Residual value |
|
692,965 |
602,960 |
|
|
---------------------- |
---------------------- |
|
|
5,455,126 |
4,759,206 |
|
| Less: Unearned finance income |
|
1,337,382 |
972,554 |
|
|
---------------------- |
---------------------- |
|
| Net investment in lease
finance |
|
6 |
4,117,744 |
3,786,652 |
|
| Less: Current portion |
|
|
1,216,053 |
1,221,712 |
|
| : Allowance for potential lease
losses |
|
2.4 |
131,591 |
120,000 |
|
|
|
|
---------------------- |
---------------------- |
|
|
2,770,100 |
2,444,940 |
|
|
| Current Assets |
|
7 |
2,810,393 |
2,545,973 |
|
|
|
|
---------------------- |
---------------------- |
|
|
5,617,686 |
5,027,152 |
|
|
|
============ |
============ |
|
| CAPITAL AND LIABILITIES |
|
|
|
| Share Capital and Reserves |
|
|
| Share capital |
|
8 |
240,000 |
240,000 |
|
| Reserves |
|
9 |
286,740 |
247,360 |
|
| Unappropriated profit |
|
|
1,459 |
6,438 |
|
|
|
|
---------------------- |
---------------------- |
|
|
|
528,199 |
493,798 |
|
|
|
|
| Redeemable Capital |
|
10 |
83,333 |
166,666 |
|
| Provision for Deferred
Taxation |
|
9.2.1 |
- |
20,000 |
|
| Long Term Liabilities |
|
11 |
2,740,377 |
1,897,162 |
|
| Current Liabilities |
|
12 |
2,265,777 |
2,449,526 |
|
| Contingencies and Commitments |
|
13 |
|
|
|
|
---------------------- |
---------------------- |
|
|
|
5,617,686 |
5,027,152 |
|
| The
annexed notes form an integral part of these accounts |
|
|
| Rawalpindi |
Lt. Gen. (R) Mohammed
Afsar |
Taimur Afzal |
|
| November 8, 1999 |
CHAIRMAN AND DIRECTOR |
EXECUTIVE |
|
|
|
|
|
|
|
|
|
| PROFIT AND LOSS ACCOUNT |
|
|
|
|
| FOR
THE YEAR ENDED JUNE 30, 1999 |
|
|
|
|
|
|
|
| REVENUE |
|
| Lease income |
|
14 |
638,103 |
593,665 |
|
| Income from short term
investments |
|
|
47,759 |
46,003 |
|
| Income from bank deposits |
|
|
111,038 |
75,915 |
|
| Other income |
|
|
690 |
426 |
|
|
|
|
---------------------- |
---------------------- |
|
|
797,590 |
716,009 |
|
| EXPENDITURE |
|
| Finance and bank changes |
|
15 |
665,419 |
529,952 |
|
| General and administrative
expenses |
|
16 |
49,679 |
40,746 |
|
| Allowance for potential lease
losses |
|
|
11,591 |
45,330 |
|
|
|
|
---------------------- |
---------------------- |
|
|
726,689 |
616,028 |
|
|
---------------------- |
---------------------- |
|
| PROFIT BEFORE TAXATION |
|
70,901 |
99,981 |
|
|
| PROVISION FOR TAXATION |
|
| Current |
|
85,001 |
8,000 |
|
| Deferred |
|
- |
20,000 |
|
|
|
---------------------- |
---------------------- |
|
|
8,500 |
28,000 |
|
|
---------------------- |
---------------------- |
|
| PROFIT AFTER TAXATION |
|
|
62,401 |
71,981 |
|
| Unappropriated Profit brought
forward |
|
|
6,438 |
1,853 |
|
| Transferred from General
Reserve |
|
|
115,000 |
- |
|
|
---------------------- |
---------------------- |
|
| Profit available for
Appropriation |
|
183,839 |
73,834 |
|
|
| APPROPRIATIONS: |
|
| Transferred to: |
|
|
| Reserve fund |
|
|
12,480 |
14,396 |
|
| General reserve |
|
|
- |
5,000 |
|
| Deferred tax reserve |
|
|
46,900 |
- |
|
| Reserve for contingencies |
|
|
75,000 |
- |
|
| Proposed dividend @ 20%
(1998:20%) |
|
48,000 |
48,000 |
|
|
|
---------------------- |
---------------------- |
|
|
182,380 |
67,396 |
|
|
---------------------- |
---------------------- |
|
| Un-appropriated Profit
carried forward |
|
1,459 |
6,438 |
|
|
|
============ |
============ |
|
| Earnings Per Share-Basic and
Diluted |
|
18 |
2.60 |
3.00 |
|
|
|
|
============ |
============ |
|
| The
annexed notes form an integral part of these accounts |
|
|
| Rawalpindi |
Lt. Gen. (R) Mohammed
Afsar |
Taimur Afzal |
|
| November 8, 1999 |
CHAIRMAN AND DIRECTOR |
EXECUTIVE |
|
|
|
|
|
|
|
| STATEMENT
OF CHANGES IN |
|
| FINANCIAL POSITION |
|
| FOR
THE YEAR ENDED JUNE 30, 1999 |
|
|
|
|
|
1999 |
1998 |
|
|
|
Rupees |
Rupees |
|
|
|
(in '000) |
(in '000) |
|
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
| Profit before taxation |
|
|
70,901 |
99,981 |
|
| Adjustments for: |
|
|
|
|
| Depreciation |
|
7,794 |
6,117 |
|
| Allowance for potential lease
losses |
|
11,591 |
45,330 |
|
| (Profit)/Ioss on disposal of
fixed assets |
|
(62) |
9 |
|
| Amortisation of deferred
costs |
|
979 |
867 |
|
| Provision
for diminution in value of investments |
|
544 |
711 |
|
|
|
---------------------- |
---------------------- |
|
|
|
20,846 |
53,034 |
|
|
|
---------------------- |
---------------------- |
|
| Operating
profit before working capital changes |
|
91,747 |
153,015 |
|
| Increase in: |
|
| Short term investments |
|
(22,511) |
(51,645)] |
|
| Advances,
prepayments and other receivables |
|
(32,687) |
(92,089) |
|
|
|
---------------------- |
---------------------- |
|
|
|
(55,198) |
(143,734) |
|
| Increase/(decrease) in
current liabilities |
|
|
66,286 |
(12,535) |
|
|
|
---------------------- |
---------------------- |
|
| Net
cash generate all(used)in operating activities |
|
102,835 |
(3,254) |
|
|
|
|
|
|
|
| CASH
FLOWS FROM INVESTING ACTIVITIES |
|
| Purchase of operating fixed
assets |
|
|
(8,725) |
(12,062) |
|
| Disposal of operating fixed
assets |
|
|
76 |
2 |
|
| Long term advances |
|
|
83 |
(3,662) |
|
| Investment in lease finance
(net) |
|
|
(331,092) |
(857,227) |
|
|
|
---------------------- |
---------------------- |
|
| Net cash used in investing
activities |
|
|
(339,658) |
(872,949) |
|
|
|
|
|
| CASH
FLOWS FROM FINANCING ACTIVITIES |
|
|
|
| Deferred costs |
|
|
(909) |
(2,000) |
|
| Redeemable capital |
|
|
(83,333) |
252,694 |
|
| Certificates of Investment |
|
|
607,497 |
579,038 |
|
| Deposits on lease contracts |
|
|
133,815 |
78,223 |
|
| Loans from financial
institutions |
|
|
(159,470) |
103,970 |
|
| Dividend paid |
|
|
(45,163) |
(3,095) |
|
|
|
---------------------- |
---------------------- |
|
| Net cash from financing
activities |
|
|
452,437 |
1,008,830 |
|
|
|
---------------------- |
---------------------- |
|
| Net increase in cash and cash
equivalents |
|
|
215,614 |
132,627 |
|
| Cash
and cash equivalents at the beginning of the year |
|
191,341 |
58,714 |
|
|
|
---------------------- |
---------------------- |
|
| Cash
and cash equivalents at the end of the year |
|
406,955 |
191,341 |
|
|
============ |
============ |
|
|
| Rawalpindi |
Lt. Gen. (R) Mohammed
Afsar |
Taimur Afzal |
|
| November 8, 1999 |
CHAIRMAN AND DIRECTOR |
EXECUTIVE |
|
|
|
| NOTES TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED JUNE 30, 1999 |
|
|
| 1. COMPANY AND ITS OPERATIONS |
|
|
| Askari
Leasing Limited ("the company") was incorporated in Pakistan as a
public limited company |
|
| on
August 1, 1993 and is listed on the Karachi, Lahore and Islamabad Stock
Exchanges. The |
|
| company
principally carries on the business of leasing and providing finance. |
|
|
| 2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES |
|
|
| 2.1 Basis for Preparation |
|
|
|
| These
accounts have been prepared in accordance with International Accounting
Standards as |
|
| applicable in Pakistan. |
|
|
| 2.2 Accounting Convention |
|
|
| These
accounts have been prepared under the historical cost convention. |
|
|
| 2.3 Revenue Recognition |
|
|
|
| The
company has changed its revenue recognition policy for lease contracts
executed during |
|
| the
year ended June 30, 1999. The policy has been changed to comply to the
provisions of |
|
| revised
International Accounting Standard for Leases (IAS17) and to adhere to the
directive |
|
| dated
August 1, 1999 issued by the Institute of Chartered Accountants of Pakistan.
Consequently, |
|
| it
has not been considered necessary to give disclosures required under IAS8. |
|
|
| Due
to this change in accounting policy, lease income and profit for the year has
decreased by |
|
| Rs. 18,966,186. |
|
|
| Lease Income |
|
|
|
| For
Lease Contracts Executed to June 30, 1998 |
|
| At
the commencement of lease, total unearned lease income consists of excess of
aggregate |
|
| lease
contract receivable over the cost of the leased asset. At the time a lease is
executed, a |
|
| portion
of unearned lease income which equals the allowance for potential lease
losses is charged |
|
| to
income. The remainder of unearned lease income is taken to income over the
term of lease, |
|
| starting
from the month in which the lease is executed, so as to produce a systematic
return on |
|
| the net investment in the
lease. |
|
|
| For
Lease contracts Executed after June 30, 1998 |
|
| The
company follows the "Finance Method" to recognize income on finance
leases. At the |
|
| commencement
of lease, total unearned lease income consists of excess of aggregate lease |
|
| contract
receivable over the cost of the leased asset. Unearned finance income is
amortized |
|
| to
income over the lease term by applying the annuity method to produce a
constant rate of return |
|
| on net investment in the
lease. |
|
|
| Income on Bank deposits and
Investments |
|
| Profit
on short term investments and bank deposits is accounted for on accrual
basis. |
|
|
| 2.4 Allowance for Potential Lease Losses |
|
|
| The
allowance for potential lease losses is maintained at a level which, in the
judgment of the |
|
| management,
is adequate to provide for potential losses on lease portfolio that can be
reasonably |
|
| anticipated.
The allowance is increased by provisions charged to income and is decreased
by |
|
| charge off, net of
recoveries. |
|
|
| 2.5 Fixed Assets and Depreciation |
|
|
| These
are stated at cost less accumulated depreciation. |
|
|
| Depreciation
is charged to income applying the straight line method whereby cost of the
asset |
|
| is
written off over its estimated useful life. In respect of additions and
deletions of assets during |
|
| the
year, depreciation is charged proportionately from the month of acquisition
and up to deletion |
|
| respectively.
Minor maintenance and repairs are charged to income as and when incurred. |
|
|
| Major
renewals and improvements are capitalized and the assets so replaced, if any,
are |
|
| retired.
Gains and losses on disposal of assets, if any, are taken to profit and loss
account. |
|
|
| 2.6 Investments |
|
|
| Long term |
|
