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Modaraba Al-Mali
Annual Report 1999
CONTENTS
Corporate Information
Directors' Report
Auditors' Report
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Notes to the Accounts
Pattern of Certificate Holdings
CORPORATE INFORMATION
BOARD OF DIRECTORS
Mr. Syed Iradat Husain Chairman
Mr. Maqbool Hussain Vice Chairman
Mr. Mohammad Kamil Director
Mr. Ashraf Kalam Director
Mr. Ahmad H.I. Dada Director
Mr. Imdad Ali Director
Mr. Faisal Hussain Director
Mr. Zafar H. Naqvi Chief Executive
MANAGEMENT TEAM
Mr. Zafar H. Naqvi Chief Executive
Mr. S. Shakeel-ur-Rehman Chief Manager
Mr. S. Masood Akhter Financial Controller
Mr. D.V. Karia Company Secretary
AUDITORS
Ford, Rhodes, Robson, Morrow
Chartered Accountants
Finlay House
I.I. Chundrigar Road
Karachi.
BANKERS & FINANCERS
Muslim Commercial Bank Limited
Askari Commercial Bank Limited
Metropolitan Bank Limited
Allied Bank of Pakistan Limited
Pak-Libya Holding Co. (Pvt) Limited
Bankers Equity Limited
REGISTERED OFFICE
10th Floor, Progressive Square
Opposite Nursery, Sharea Faisal
Karachi.
Phones :4547521-5
Fax: (92-21) 4547526
DIRECTOR'S REPORT
The Board of Directors of Al-Mal Corporation Limited have pleasure in presenting the 13th Report of Modaraba
AI-Mali together with Audited Accounts for the year ended June 30, 1999.
1. Operating Results:
(Rs. in "000")
The summarized results for the period under report are as under: 1999 1998
* Total Operating income 128,067 109,031
========== ==========
* Net profit before management fee & taxation 32,989 5,261
* Less: Management fee 2,999 478
------------------ ------------------
29,990 4,783
* Less: Provision for Taxation 412 4,361
------------------ ------------------
* Net Profit for the year 29,578 422
* Add: Unappropriated profit b/f 374 36
------------------ ------------------
* Profit available for appropriation 29,952 458
* Appropriations:
-- Statutory reserves 5,916 84
-- Cash dividend @ 12.5% (1998: Nil) 22,821 --
------------------ ------------------
28,737 84
------------------ ------------------
* Unappropriated profit carried forward 1,215 374
========== ==========
* Basic earnings per certificate 1.62 0.02
========== ==========
2. Profit Distribution
Directors take pleasure in announcing distribution of cash dividend @ 12.5% i.e. Rs.1.25 per certificate.
3. Statutory Reserves
In compliance with SBP Prudential Regulations, Directors have decided to appropriate 20% of the year's
profits to Statutory Reserves until it equals the Certificate Capital of the Modaraba.
21. Business Operations
Despite the recession witnessed by the country's economy, specially in view of economic sanctions, your
modaraba managed to perform reasonably well. We were able to negotiate new leases amounting to Rs.
117.01 million in 1998-99 as compared to Rs. 119.59 million during the year 1997-98. However, income
before provisions increased to Rs. 31.8 million as against Rs. 26.1 million earned during the proceeding
year. Profit before tax was 30.0 million. Provision for tax in respect of prior years amounted to Rs. 0.4
million. In view of the tax exemption granted to the modarabas through Finance Act 1998, no provision
was made against current year's tax. Through effective control, the overall administrative expenses were
kept at the same levels. The recovery efforts were quite successful. However, in view of inherent financial
risks, a provision of Rs. 2.24 million was made against the doubtful debts. The earnings per certificate
were Rs. 1.62
5. Future Prospects
The future business prospects depend largely on the economic policies of the new government. The
introduction of effective legislature for recovery of overdues is expected to boost the leasing and financial
sector. We are negotiating with few banks and financial institutions for obtaining additional morabaha lines
to augment our resource base. The management is confident that the improvement in current year's
results will continue in future years as well.
6. Millennium Bug
Necessary steps have been taken to ensure that hardware and software in use are year 2000 compliant.
7. Auditors
The present auditors, Messrs. Ford, Rhodes, Robson, Morrow, Chartered Accountants, are due for retirement,
and being eligible, offer themselves for re-appointment for the year 1999-2000.
8. Pattern of Certificate holding
The pattern of certificate holding is attached.
9. Acknowledgment
The Directors wish to place on record their appreciation and thanks to certificate holders for their continued
confidence in the Modaraba, to the authorities for their guidance and to all the Members of Management
and staff for their dedication and hard work.
On behalf of the Board,
S. IRADAT HUSAIN
Karachi: Dated 06th December, 1999 Chairman
AUDITOR'S REPORT TO THE CERTIFICATE HOLDERS
We have audited the annexed Balance Sheet as at June 30, 1999 and the related Profit and Loss Account and
the Cash Flow Statement together with the Notes to the Accounts for the year ended June 30, 1999 of
Modaraba Al-Mali which are modaraba company's (AI-Mal Corporation Limited) representation and we state
that we have obtained all the information and explanations which we required and, after due verification
thereof, we report that:
(a) In our opinion, proper books of account have been kept by the modaraba company in respect of Modaraba
Al-Mali as required by the Modaraba Companies and Modaraba (Floatation and Control) Ordinance,
1980 and Modaraba Companies and Modaraba Rules, 1981;
(b) In our opinion, the Balance Sheet and the Profit and Loss Account have been drawn up in conformity
with the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, and Modaraba
Companies and Modaraba Rules, 1981; and
(c) In our opinion and to the best of our information and according to the explanations given to us;
(i) the Balance Sheet and the related Profit and Loss Account and the Cash Flow Statement, which
are in agreement with the books of account, exhibit respectively a true and fair view of the state
of the Modaraba's affairs as at June 30, 1999 and of the Profit and Cash Flows for the year ended
on that date;
(ii) no zakat was deductible at source under the Zakat and Ushr Ordinance, 1980; and
(iii) the business conducted, investments made and expenditure incurred by the Modaraba are in
accordance with the objects, terms and conditions of the Modaraba.
Ford, Rhodes, Robson, Morrow
Karachi: 6th December, 1999 Chartered Accountants
BALANCE SHEET AS AT JUNE 30, 1999
ASSETS June 30, June 30,
1999 1998
NON-CURRENT ASSETS Note Rupees Rupees
Fixed assets - Tangible 3
Assets given on lease 3.1 225,469,455 203,366,058
Assets in own use 3.2 10,508,663 11,823,816
------------------ ------------------
215,189,874 235,978,118
Long term investments 4 6,631,599 5,066,267
Long-term deposits 300,000 --
Deferred expenditure 5 25,613 129,545
------------------ ------------------
242,935,330 220,385,686
CURRENT ASSETS
Short term musharaka finance-secured 6 7,079,532 5,940,000
Short term morabaha finances-secured 7 11,040,108 13,338,440
Short term investments 8 5,013,195 4,527,011
Lease rentals receivable 9 7,317,482 9,206,920
Advances, deposits, prepayments 10 6,356,988 7,170,922
and other receivables
Cash and bank balances 11 11,766,802 3,184,816
------------------ ------------------
48,574,107 43,368,109
------------------ ------------------
TOTAL ASSETS 291,509,437 263,753,795
========== ==========
EQUITY AND LIABILITIES
CAPITAL AND RESERVES
Certificate capital
Authorised-20,000,000 (1998: 20,000,000)
Modaraba Certificates of Rs. 10/- each 200,000,000 200,000,000
========== ==========
Issued, subscribed and paid-up 12 182,574,000 182,574,000
Reserves
Capital reserve
Statutory reserve 13 20,371,319 14,455,639
Revenue reserve
Unappropriated profit 1,214,903 373,934
------------------ ------------------
21,586,222 14,829,573
------------------ ------------------
204,160,222 197,403,573
NON-CURRENT LIABILITIES
Long term morabaha finances 14 1,192,826 6,350,000
Deferred liability 15 28,442,256 23,257,207
------------------ ------------------
29,635,082 29,607,207
CURRENT LIABILITIES
Current maturity of morabaha finances 14 4,179,159 4,368,052
Current maturity of deferred liability 15 15,131,143 13,743,515
Creditors, accrued and other liabilities 16 9,714,749 12,624,888
Rentals received in advance 4,706,383 4,791,988
Unclaimed dividend 1,160,949 1,214,572
Proposed dividend 22,821,750 --
------------------ ------------------
57,714,133 36,743,015
CONTINGENCIES 17
------------------ ------------------
TOTAL EQUITY AND LIABILITIES 291,509,437 263,753,795
========== ==========
The annexed notes form an integral part of these accounts
Zafar H. Naqvi Maqbool Hussain S. Iradat Husain
Chief Executive Vice Chairman Chairman
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED JUNE 30, 1999
June 30, June 30,
1999 1998
Note Rupees Rupees
Operating income 18 128,066,933 109,031,169
Operating costs 19 95,418,931 81,364,499
Profit distribution on borrowings 20 1,733,967 2,726,425
------------------ ------------------
97,152,898 84,090,924
30,914,035 24,940,245
Other income 21 921,558 1,187,214
------------------ ------------------
31,835,593 26,127,459
Provisions 22 (1,153,752) 20,866,348
------------------ ------------------
32,989,345 5,261,111
Modaraba company's management fee (2,999,031) (478,283)
------------------ ------------------
Profit before taxation 29,990,314 4,782,828
Taxation - Current 23 -- (4,000,000)
Prior years (411,915) (361,159)
------------------ ------------------
(411,915) (4,361,159)
------------------ ------------------
Profit after taxation 29,578,399 421,669
Unappropriated profit brought forward 373,934 36,599
------------------ ------------------
Available for appropriation 29,952,333 458,268
Appropriations
Proposed dividend @ 12.5% (1998: nil) (22,821,750) --
Transfer to statutory reserve @ 20% (5,915,680) (84,334)
------------------ ------------------
(28,737,430) (84,334)
------------------ ------------------
Balance Carried forward 1,214,903 373,934
========== ==========
Basic earnings per certificate 24 1.62 0.02
========== ==========
The annexed notes form an integral part of these accounts.
Zafar H. Naqvi Maqbool Hussain S. Iradat Husain
Chief Executive Vice Chairman Chairman
CASH FLOW STATEMENT
FOR THE YEAR ENDED JUNE 30, 1999
June 30, June 30,
1999 1998
CASH FLOWS FROM OPERATING ACTIVITIES Note Rupees Rupees
Net Profit before management fee and taxation 32,989,345 5,261,111
Adjustment of non-cash and other items 25 82,319,948 90,374,840
Changes in working capital
(Increase)/decrease in trade and other receivables (380,128) 17,262,515
Decrease/(increase) in short term investments 508,568 (3,502,485)
(Decrease)/Increase in trade payables (3,699,555) 5,942,144
------------------ ------------------
111,738,178 115,338,125
Financial charges paid (1,876,544) (2,844,257)
Income taxes paid (347,756) (9,364,679)
Management fee paid - net (1,489,000) (2,005,000)
Profit received from bank 676,430 1,304,339
------------------ ------------------
Net cash from operating activities 108,701,308 102,428,528
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets - Leased out (117,008,237) (119,590,822)
             - Owned (95,174) (221,050)
Purchase of long term investments -- (190,000)
Proceeds from sale of fixed assets - Leased out 14,199,826 22,931,959
- Owned 374,500 --
Proceeds from sale of long term investments 540,350 235,820
Dividend received 696,426 896,137
Customer's security deposits received - net 6,572,677 2,646,369
------------------ ------------------
Net cash used in investing activities, (94,719,632) (93,291,587)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long term borrowings (5,346,067) (4,390,430)
Dividend paid (53,623) (10,868,980)
------------------ ------------------
Net cash used in financing activities (5,399,690) (15,259,410)
------------------ ------------------
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 8,581,986 (6,122,469)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 3,184,816 9,307,285
------------------ ------------------
CASH AND CASH EQUIVALENTS AT END OF THE YEAR 11,766,802 3,184,816
========== ==========
Zafar H. Naqvi Maqbool Hussain S. Iradat Husain
Chief Executive Vice Chairman Chairman
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 1999
1. LEGAL STATUS AND NATURE OF BUSINESS
Modaraba Al-Mali is a multipurpose, perpetual Modaraba formed under the Modaraba Companies and
Modaraba (Floatation and Control) Ordinance, 1980, and the rules framed thereunder and is managed by
Al-Mal Corporation Limited. It is listed on the Karachi, Lahore and Islamabad Stock Exchanges. It is
engaged in the business of leasing, morabaha, musharaka financing and other related business.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) Accounting convention
These accounts have been prepared under the historical cost convention.
(b) Staff gratuity
The Modaraba operates an approved funded gratuity scheme for all its employees, who have
completed minimum qualifying period of service. Monthly contributions to the fund are based on
actuarial valuation using the projected unit credit method'.
Actuarial valuation of the scheme is carried out once in every three years and the latest valuation
was carried out as at June 30, 1996.The fair value of the scheme's assets and liabilities for past
services of the employees at the latest valuation date were Rs.0.427 million and Rs.0.523 million
respectively. The contribution rate is 8.14% per annum of basic salaries excluding allowance for
deficit at the rate of 1.31%. Significant assumptions used for valuation of this scheme are:
Expected long term rate of increase in salary level 12 per cent per annum.
Expected long term rate of interest 12 per cent per annum.
(c) Fixed assets
(i) Assets given out on lease and amortization
All lease transactions are accounted for as operating leases.
Leased assets are stated at cost to the Modaraba less accumulated amortization.
Amortization is charged to income applying the annuity method whereby the amortizable
value of assets is amortized over the lease period.
(ii) Assets in own use and depreciation
Assets in own use are stated at cost less accumulated depreciation. Depreciation is charged
to income applying the straight line method whereby the cost of asset is written-off over its
estimated useful life. In respect of additions and disposals during the year depreciation is
charged proportionately to the period of use.
Maintenance and normal repairs are charged to income as and when incurred.
(iii) Gain or loss on disposal of assets, if any, is included in income currently.
(d) Deferred expenditure
Deferred expenditure incurred in connection with the floatation of Modaraba and right/bonus issue
is being written-off over a period of five years from the date of incurrence.
(e) Investments
Short-term investments are carried at lower of moving average cost and market value determined
on an aggregate portfolio basis. In case of long-term investments, the effect of permanent
diminution, if any, in the value of investments is charged to profit and loss account.
(f) Revenue recognition
(i) Lease rentals are recognised as income when due on a systematic basis over the lease
period. Income pertaining to the periods falling between the due dates and the period end is
recognised on an accrual basis.
(ii) Dividend income is recorded at the time of closure of share transfer books of the company
declaring dividend.
(iii) Income from morabaha and musharaka transactions is recognised on accrual basis taking
into account the duration of placement of funds and the estimated profit receivable.
(g) Taxation
As per the changes made through Finance Act, 1998 in clause 102E of Second Schedule of Part
I of Income Tax Ordinance, 1979, the Modaraba considers itself exempt from income tax application.
Therefore, no provision with respect to current and deferred taxation has been made in the accounts
for the assessment year 1999-2000.
(h) Bad and doubtful debts
Debts considered doubtful are provided for.
3. TANGIBLE FIXED ASSETS
3.1 Assets given out on lease
Accumulated Amortization Accumulated
amortization for the year amortization
Description Cost as at Cost as at as at (accumulated as at Book value
July 1, Additions / June 30, July 1, amortization June 30, as at
1998 (disposals) 1999 1996 on disposal) 1999 June 30,1999
Rupees Rupees Rupees Rupees Rupees Rupees Rupees
Plant and machinery 166,154,909 59,592,876 196,727,315 84,590,773 35,283,623 93,378,925 103,348,390
(29,020,470) (26,495,471)
Motor vehicles 115,973,897 36,306,464 120,965,632 49,090,280 27,669,348 53,193,189 67,772,443
(31,314,729) (23,566,439)
Furniture and fixtures 1,047,501 -- 1,047,501 174,391 289,331 463,722 583,779
Office and computer
equipment 70,272,319 21,108,897 82,479,172 17,163,100 16,862,891 29,028,603 53,450,569
(8,902,044) (4,997,388)
Home appliances 1,769,629 -- 1,222,354 833,653 599,821 908,080 314,274
(547,275) (525,394)
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
355,218,255 117,008,237 402,441,974 151,852,197 80,705,014 176,972,519 2,254,694.55
(69,784,518) (55,584,692)
========== ========== ========== ========== ========== ========== ==========
1998 354,189,624 119,590,822 355,218,255 181,268,478 66,420,654 151,852,197 203,366,058
(118,562,191) (95,836,935)
========== ========== ========== ========== ========== ========== ==========
3.2 Assets in own use
Accumulated Dep. charge Accumulated
Depreciation for the year Depreciation
Description Cost as at Cost as at as at (accumulated as at Book value
July 1, Additions / June 30, July 1, Depreciation June 30, as at Rate of
1998 (disposals) 1999 1998 on disposal) 1999 June 30, 1999 depreciation
Rupees Rupees Rupees Rupees Rupees Rupees Rupees %
Office premises - Leasehold 8,455,677 -- 8,455,677 704,640 422,784 1,127,424 7,328,253 5
--
Motor vehicles 2,712,172 -- 2,088,872 1,416,944 395,208 1,247,335 841,537 20
(623,300) (564,817)
Furniture and fixtures 2,462,978 2,500 2,465,478 640,592 244,653 885,245 1,580,233 10
Office equipment 1,386,741 43,000 1,424,141 618,363 200,935 818,691 605,450 10 to 25
(5,600) (607)
Computers 1,573,410 49,674 1,440,834 1,386,623 83,268 1,287,644 153,190 20
(182,250) (182,247)
------------------ ------------------ ------------------ ------------------ ------------------ ------------------ ------------------
16,590,978 95,174 15,875,002 4,767.16 1,346,848 5,366,339 10,508,663
(811,150) (747,671)
========== ========== ========== ========== ========== ========== ==========
1998 16,369,928 221,050 16,590,978 3,405,166 1,361,996 4,767,162 11,823,816
========== ========== ========== ========== ========== ========== ==========
3.3 Details of disposal of assets given out on lease is as under:
Cost of Accumulated Book Sale Mode of
Particulars assets amortization value proceeds disposal Particular of purchasers
Rupees Rupees Rupees Rupees
Equipment 46,750 44,250 2,500 2,500 Lease expiry M.I. Hyat Furniture
36, The Mall Road, Lahore.
Equipment 52,500 49,875 2,625 2,625 Lease expiry Globe Merchandiser
Ground Floor, Shaikh Sultan Trust
Bldg., No-10, 25, Civil lines, Karachi.
Equipment 268,248 253,333 14,915 14,915 Lease expiry Nabila Enterprises (Pvt) Ltd.
303,304 Fayyaz Centre,
S.M.C.H.S, Karachi.
Equipment 160,522 152,422 8,100 8,100 Lease expiry Nikhar Printing
18, Mubarak Mahal, Mohan Road,
Opp. Urdu Bazar, Karachi.
Equipment 60,000 57,000 3,000 3,000 Lease expiry Globe Merchandiser
Ground Floor, Shaikh Sultan Trust
Building No-10, 25 Civil Lines, Karachi.
Equipment 33,000 31,350 1,650 1,650 Lease expiry Globe Merchandiser
Ground Floor, Shaikh Sultan Trust
Building No-10, 25 Civil Lines, Karachi.
Equipment 90,000 81,000 9,000 9,000 Lease expiry Globe Merchandiser
Ground Floor, Shaikh Sultan Trust
Building No-10,25 Civil Lines, Karachi.
Equipment 265,000 238,500 26,500 26,500 Lease expiry Brooks Pharmaceuticals Lab
58/15, Korangi Industrial Area, Karachi.
Equipment 1,200,000 1,080,000 120,000 120,000 Lease expiry Himont Pharmaceuticals (Pvt) Ltd
17 Km Ferozpor Road, Lahore.
Equipment 70,800 63,720 7,080 7,080 Lease expiry Salam Sons
301, Usmania Colony,
Nazimabad, Karachi.
Equipment 1,054,000 948,600 105,400 105,400 Lease expiry National Investments Co.
Karachi Stock Exchange, Karachi.
Equipment 131,600 118,440 13,160 13,160 Lease expiry Mercantile Industries (Private) Ltd,
B-18, S.I.T.E, Karachi.
Equipment 100,000 90,000 10,000 10,000 Lease expiry Binder International
Sabah Palace, Suit No. 118.
29-A/6, P.E.C.H.S, Karachi.
Equipment 155,000 139,500 15,500 15,500 Lease expiry Huma Medical Centre
Shah Beig Line, Block-C,
Off: Atmaram Road. Lyari, Karachi
Equipment 70,725 63,650 7,075 7,075 Lease expiry Shahab Azfar
708-A, Kashif Centre,
Shahrah-e-Faisal, Karachi.
Equipment 59,000 53,100 5,900 5,900 Lease expiry First Media Services (Pvt)Ltd
43-5 E/3, Block 6, P.E.C.H.S, Karachi.
Equipment 87,000 78,300 8,700 8,700 Lease expiry Path Laab,
Sb-7, Block-2, Asian Appartment,
Gulshan-e-lqbal, Karachi.
Equipment 71,545 64,390 7,155 7,155 Lease expiry Dr. Jamal Ara
D-2, BlOck-3, Doctor's Colony,
J.P.M.C., Karachi.
Equipment 163,000 110,158 52,842 52,842 Lease National Finance & Investment Co
Termination 8th Floor, Tower-A,
Finance & Trade Centre, Karachi.
Equipment 116,000 32,378 83,622 83,622 Lease A.S.I. Printers
Termination 7, Hiralal Building, Near Urdu Arts
Equipment 3,742,354 1,073,971 2,668,383 2,668,383 Lease Expiry Information System
26, Illaco House,
Abdullah Haroon Road, Karachi.
Equipment 55,000 11,574 43,426 43,426 Insurance Adamjee Insurance Co. Ltd.
Claim Saddar Br, Zaibunnisa Street, Karachi.
Equipment 850,000 161,877 688,123 688123 Lease Vision Industries
Termination Plot # 18, Sector No.14
Korangi Industrial Area, Karachi.
------------------ ------------------ ------------------ ------------------
Sub-total 8,902,044 4,997,388 3,904,656 3,904,656
------------------ ------------------ ------------------ ------------------
Home Appliances 14,975 14,675 300 300 Lease expiry Akhlaq Hussain
4th & 5th Floor, Jubilee Insurance
House, I.I. Chundrigar Road, Karachi.
Home Appliances 20,255 19,850 405 405 Lease expiry Aslam Amir Ali Hasani
4th & 5th Floor, Jubilee Insurance
House, I.I. Chundrigar Road, Karachi.
Home Appliances 16,410 16,082 328 328 Lease expiry S. Sajjad Ali Abidi
4th & 5th Floor, Jubilee Insurance
House, I.I. Chundrigar Road, Karachi,
Home Appliances 20,513 20,103 410 410 Lease expiry Tariq Roomi
4th & 5th Floor, Jubilee Insurance
House, I.I. Chundrigar Road, Karachi.
Home Appliances 14,965 14,665 300 300 Lease expiry Irfan Ahmed
4th & 5th Floor, Jubilee Insurance
House, I.I. Chundrigar Road, Karachi.
Home Appliances 14,965 14,665 300 300 Lease expiry S. Mansoor Ahmed Naqvi
4th & 5th Floor, Jubilee Insurance
House, I.I. Chundrigar Road, Karachi.
Home Appliances 10,557 10,346 211 211 Lease expiry Ahsan-ur-Rehman
4th & 5th Floor, Jubilee Insurance
House, I.I. Chundrigar Road, Karachi.
Home Appliances 43,675 43,238 437 437 Lease expiry Syed Mohsin Ali
187/(1), Khayaban-e-Hilal,
Defence, Phase-VI, Karachi.
Home Appliances 12,800 12,544 256 256 Lease expiry Syed Mohsin Ali
187/(1), Khayaban-e-Hilal,
Defence, Phase-VI, Karachi.
Home Appliances 12,892 12,634 258 258 Lease expiry Syed Asghar Ali
Pakistan Naval Academy,
PNS Rabbet Mannora, Karachi.
Home Appliances 25,333 24,826 507 507 Lease expiry Irfan Ahmed
House No. 3/1 11.A, Nazimabad, Khi.
Home Appliances 14,600 14,308 292 292 Lease expiry Haji Abdur Rehman
B-5, Yousuf Apt., Jamshed Qtr, Khi.
Home Appliances 15,140 14,838 302 302 Lease expiry Syed Ali Sajjad
83-A/II, 2nd Comm Street,
Phase-IV, DHA, Karachi.
Home Appliances 71,435 70,005 1,430 1,430 Lease expiry Brian D'Souza
8/5th Floor, Office Tower, Rimpa Plaza,
M. A. Jinnah Road, Karachi,
Home Appliances 20,410 20,002 408 408 Lease expiry Mazhar A. Latif
IR-18, Sasi Apartments, Block-4,
Gulistan-e-Johar, Karachi.
Home Appliances 6,918 6,780 138 138 Lease expiry Mr. Javaid Alam
Apptt. NO. G-3, FI-7, Block-16.
Gulistan-e-Johar, Karachi.
Home Appliances 27,579 21,789 5,790 5,790 Lease Syed Ahmed Raza
Termination A-11, 3rd Floor, Rufi Height,
Phase-II, Gulistan-e-Jauhar, Karachi.
Home Appliances 14,564 14,273 291 291 Lease expiry Syed Shahab Ali
J-3, Erum Palace Block 13-A,
Gulshan-e-lqbal, Karachi.
Home Appliances 76,102 74,580 1,522 1,522 Lease expiry Mr. Irfan Daudi
107/1 Khayaban Bahria 1,
D.H.A Phase-V, Karachi.
Home Appliances 9,128 8,945 183 183 Lease expiry Mr. Mansoor Zaidi
9-B/III Khayaban-e-Shujaat,
Phase-V, Defence, Karachi.
Home Appliances 16,080 15,758 322 322 Lease expiry Mr. Mansoor Zaidi
9-B/III Khayaban-e-Shujaat,
Phase-V, Defence, Karachi.
Home Appliances 27,179 20,504 6,675 6,675 Lease Ejaz Akhter Ansari
Termination A-19,Rufi Garden, Block-13-D/11,
Gulshan-e-lqbal, Karachi.
Home Appliances 20,400 19,992 408 408 Lease expiry Mr. Irfan Ahmed
A-235, Block 10-A, Gulshan-e-lqbal, Khi.
Home Appliances 20,400 19,992 408 408 Lease expiry Mr. Israr-uI-Haqq
A-38, Block 18, Gulshan-e-lqbal, Karachi.
------------------ ------------------ ------------------ ------------------
Sub-total 547,275 525,394 21,881 21,881
------------------ ------------------ ------------------ ------------------
Machinery 5,000,000 4,750,000 250,000 250,000 Lease expiry SEFEC Engineering (Pvt.) Ltd
35, Sector 28,
Korangi Industrial Area, Karachi.
Machinery 1,092,000 1,032,000 60,000 60,000 Lease expiry SEFEC Engineering (Pvt.) Lid
35, Sector 28,
Korangi Industrial Area, Karachi.
Machinery 382,500 360,000 22,500 22,500 Lease expiry SEFEC Engineering (Pvt.) Lid
35, Sector 28,
Korangi Industrial Area, Karachi.
Machinery 60,762 57,564 3,198 3,198 Lease expiry New Pleasure Drive
172-C, Block-2, P.E.C.H.S.
Machinery 8,000,000 7,200,000 800,000 800,000 Lease expiry Custom Synthetics (Private) Limited
5th Floor, Alfrid Centre.
M.T. Khan Road, Karachi.
Machinery 3,456,895 3,111,205 345,690 345,690 Lease expiry Brookes pharmaceuticals Lab
58/15, Korangi Industrial Area, Karachi.
Machinery 925,000 832,500 92,500 92,500 Lease expiry Brookes pharmaceuticals Lab
58/15, Korangi Industrial Area, Karachi.
Machinery 2,295,000 2,180,250 114,750 114,750 Lease expiry Baluchistan lubricants
303, Qamar House.
I.I. Chundrigar Road, Karachi.
Machinery 1,100,000 990,000 110,000 110,000 Lease expiry Brookes Pharmaceuticals Lab
58/15, Korangi Industrial Area, Karachi.
Machinery 525,000 472,500 52,500 52,500 Lease expiry Brookes Pharmaceuticals Lab
58/15, Korangi Industrial Area, Karachi.
Machinery 600,000 540,000 60,000 60,000 Lease expiry Brookes Pharmaceuticals Lab
58/15, Korangi Industrial Area, Karachi.
Machinery 690,000 565,474 124,526 124,526 Lease Kimblze Chateau De Glace
Termination Plot 10-1/5,
Korangi Industrial Area, Karachi.
Machinery 765,000 688,500 76,500 76,500 Lease expiry Salam Sons
301, Usmania Colony, Nazimabad, Khi.
Machinery 682,565 614,305 68,260 68,260 Lease expiry Brookes Pharmaceuticals Lab,
58/15, Korangi Industrial Area, Karachi.
Machinery 1,025,000 922,500 102,500 102,500 Lease expiry Paragon Construction (Pvt.) Limited.
503, Wind Sang Palace, BI- 7/8.
Off Sheheed-e-Millat Road, Karachi.
Machinery 700,000 630,000 70,000 70,000 Lease expiry Spotlit Printers (Pvt) Ltd.
St 16 Block B, N. Nazimabad,
Near Ziauddin Hospital, Karachi.
Machinery 1,035,400 931,860 103,540 103,540 Lease expiry Mehran International (Pvt.) Ltd.
Polka Annexe,
Hotel Metropole, Karachi.
Machinery 685,348 616,813 68,535 68,535 Lease expiry Rab Medical Centre
Sb-1, Block 2, Scheme 24,
Gulshan--e-lqbal, Karachi.
------------------ ------------------ ------------------ ------------------
Sub-total 29,020,470 26,495,471 2,524,999 2,524,999
------------------ ------------------ ------------------ ------------------
Vehicle 104,200 98,000 6,200 6,200 Lease expiry Saint's Restaurant
26th Street, Tauheed Commercial Area,
D. H. A. Karachi.
Vehicle 593,750 562,500 31,250 31,250 Lease expiry M.I. Hyat Furniture
35, The Mall Road, Lahore.
Vehicle 123,500 117,000 6,500 6,500 Lease expiry SEFEC Engineering (Pvt.) Ltd.
35, Sector 28, Industrial Area, Karachi.
Vehicle 277,518 262,911 14,607 14,607 Lease expiry M I. Hyat
36, The Mall Road, Lahore.
Vehicle 475,250 450,500 24,750 24,750 Lease expiry SEFEC Engineering (Pvt.) Ltd.
· 35, Sector 28, Industrial Area, Karachi.
Vehicle 138,700 131,400 7,300 7,300 Lease expiry M.I. Hyat
36, The Mail Road, Lahore.
Vehicle 850,000 765,000 85,000 85,000 Lease expiry TNT Sky Pak
Rukhsana Bldg, Shaheed-e-Millet Road, Khi.
Vehicle 1,641,025 1,476,925 164,100 164,100 Lease expiry Bashir Siddiqui Goods Transport
3, Ground Floor, KDLB Building,
West Wharf Road, Karachi.
Vehicle 220,000 198,500 21,500 21,500 Lease expiry Omega (Pvt) Ltd.
03, Hoshang Road, Karachi.
Vehicle 47,000 42,300 4,700 4,700 Lease expiry Globe Merchandiser,
Ground Floor, Sheikh Sultan Trust
Bldg No. 10, 25, Civil Lines, Karachi.
Vehicle 564,103 507,693 56,410 56,410 Lease expiry New Pleasure Drive
172- C Block-2, P.E.C.H.S., Karachi.
Vehicle 480,000 432,000 48,000 48,000 Lease expiry Brookes Pharmaceuticals Lab
58/15, Korangi Industrial Area, Lahore.
Vehicle 1,332,079 1,204,079 128,000 128,000 Lease expiry Himont Pharmaceuticals
17 Km Ferozpor Road, Lahore.
Vehicle 330,000 297,000 33,000 33,000 Lease expiry Shamsi Builders
8th Floor, Kashif Centre,
Shahrah-e-Faisal, Karachi.
Vehicle 1,490,000 1,348,850 141,150 141,150 Lease expiry Arabian Construction Go. (Pvt.) Ltd.
M.L.C. Building 34-C, West Wharf, Khi.
Vehicle 650,000 585,000 65,000 65,000 Lease expiry Continental Chemical Co. (Pvt.) Ltd.
Room No. 13, 2nd Floor,
Shalimar Centre, Tariq Road, Karachi.
Vehicle 300,600 270,540 30,060 30,060 Lease expiry Larr Sugar Mills
16-E, Block 6, P.E.C.H.S.. Karachi.
Vehicle 261,750 235,750 26,000 26,000 Lease expiry A.H. Traders
Bhagnari Street, Juna Market, Karachi.
~/Vehicle 365,000 328,500 36,500 36,500 Lease expiry Atco Laboratories (Private) Limited.
B-18, S.I.T.E., Karachi.
Vehicle 522,240 459,675 62,565 62,565 Lease expiry Mustafa Corporation
Alibhai Building, Jinnah Road, Karachi.
Vehicle 1,067,000 960,300 106,700 106,700 Lease expiry Security Papers Ltd.
9-10, Hotel Metropole,
Abdullah Haroon Road, Karachi.
Vehicle 688,000 417,879 270,121 270,121 Lease General Tyre and Rubber Co. Ltd.
Termination P & O Plaza,
I.I. Chundrigar Road, Karachi.
Vehicle 600,000 540,000 60,000 60,000 Lease expiry Industrial Combustion & Control
IV-E/1, Yamin Mansion,
Nazimabad, Karachi.
Vehicle 599,000 539,100 59,900 59,900 Lease expiry Mehran Int'l (Private) Limited,
. Polka Avenue, Hotel Metropole, Karachi.
Vehicle 856,000 770,400 85,600 85,600 Lease expiry First Media Services (Private)Limited.
43-5, E/3. Block-6, P.E.C.H.S. Karachi.
Vehicle 691,500 622,350 69,150 69,150 Lease expiry Atco Laboratories (Private) Limited
B-18, S.I.T.E., Karachi.
Vehicle 256,650 213,150 43,500 43,500 Lease expiry Associated Instrument Dis. Ltd.
8/5th Floor, Rimpa Plaza,
M.A. Jinnah Road, Karachi.
Vehicle 489,000 440,100 48,900 48,900 Lease expiry Froebel Nursery
D-99 Block II, Clifton, Karachi.
Vehicle 673,200 598,400 74,800 74,800 Lease expiry Commerce Aids & Equipment (Pvt) Ltd.
Spotlite Chambers, Near Daily Jang.
I.I. Chundrigar Road, Karachi.
Vehicle 572,000 500,500 71,500 71,500 Lease expiry Al Taj Ghee Industries (Pvt.) Limited.
Cement Factory Road, Rohri, Sukkur,
Vehicle 1,303,897 1,173,497 130,400 130,400 Lease expiry Spotlit Printers (Private) Limited.
St. 16-A, Block-B, N. Nazimabad, Khi.
Vehicle 272,000 244,800 27,200 27,200 Lease expiry Atco Laboratories (Private) Limited.
B-18, S.I.T.E., Karachi.
Vehicle 748,000 673,200 74,800 74,800 Lease expiry Hussain Corporation,
Shop 11/1-2, AI-Azmat Plaza,
Block-3, Gulshan-e- Iqbal, Karachi.
Vehicle 720,800 461,180 259,620 259,620 Lease expiry Kamran Medical Store,
Opp: KMC Park,
"K" Area Market, Korangi, Karachi.
Vehicle 270,000 243,000 27,000 27,000 Lease expiry Atco Laboratories (Private) Limited.
B-18, S.I.T.E., Karachi.
Vehicle 547,692 492,922 54,770 54,770 Lease expiry Hassan Motor Training School,
Hasrat Mohani Road,
Manghopir Road, Karachi.
Vehicle 670,000 603,000 67,000 67,000 Lease expiry Oxford Knitting Mills (Private) Limited.
Adamjee Insurance Building.
I.I. Chundrigar Road, Karachi.
Vehicle 478,000 430,200 47,800 47,800 Lease expiry Allied Batteries (Private) Limited.
B-18, S.I.T.E., Karachi.
Vehicle 678,400 517,647 160,753 160,753 Lease Mohammad Shafi & Brothers
Termination Haji Hassan Din Street, Plot No. 169B,
Shah Waliullah Road, Karachi.
Vehicle 412,000 391,400 20,600 20,600 Lease expiry NBP Staff Welfare Foundation
Chappal Plaza, Mezannine Floor,
Hasrat Mohani Road, Karachi.
Vehicle 278,975 251,075 27,900 27,000 Lease expiry Atco Laboratories (Private) Limited
B-18, S.I.T.E., Karachi.
Vehicle 465,400 326,854 138,546 138,546 Lease Rana Muhammad Shamim
Termination R-27, 10 East Street,
Phase I, D.H.A., Karachi.
Vehicle 460,000 382,432 77,568 77,568 Lease Little Folks Paradise School,
Termination St-5, Block "F", N. Nazimabad, Karachi,
Vehicle 357,000 181,084 175,916 175,916 Lease Atco Laboratories (Private) Limited
Termination B-18, S.I.T.E., Karachi.
Vehicle 990,000 514,451 475,549 475,549 Lease Nabila Abs Group
Termination 303, 3rd Floor, Fayaz Centre,
S.M.C.H. Society, Karachi.
Vehicle 1,023,000 512,040 510,960 510,960 Lease Blazon (Private) Limited
51 -D, Commercial Area 'A',
Phase II, D. H. A., Karachi.
Vehicle 256,000 44,269 211,731 211,731 Lease Atco Laboratories (Private) Limited
Termination B-18, S.I.T.E., Karachi.
Vehicle 460,000 160,975 299,025 299,025 Lease Ahmed Plasticraft (Private) Limited
Termination F-9, Estate Avenue, S.I.T.E, Karachi.
'Vehicle 629,000 235,460 393,540 393,540 Lease Naurus (Private) Limited
Termination C-1/8, Manghopir Road, Karachi.
Vehicle 60,500 8,706 51,794 51,794 Insurance Adamjee Insurance Company Limited
Claim Saddar Br., Zaibunnisa Street, Karachi.
Vehicle 789,000 54,559 734,441 734,441 Lease Shahzada Security Services
Termination C-36/1, Comm. Market 'A', D.H.A., Khi.
Vehicle 348,000 82,539 265,461 265,461 Lease Atco Laboratories (Private) Limited
Termination B-18, S.I.T.E., Karachi,
Vehicle 661,500 60,366 601,134 601,134 Insurance Adamjee Insurance Company .Limited
Claim Saddar Br., Zaibunnisa Street, Karachi.
Vehicle 869,000 86,506 782,494 782,494 Lease Tayab Mehmood Dental Clinic
Termination Shop No.28, Hadi Market,
Nazimabad, Karachi.
Vehicle 247,000 46,432 200,568 200,568 Insurance Habib Insurance Co.
Claim First Floor, Habib Square,
M. A. Jinnah Read, Karachi.
Vehicle 60,500 11,543 48,957 48,957 Insurance  Adamjee Insurance Company Limited
Claim Saddar Br., Zaibunnisa Street, Karachi.
------------------ ------------------ ------------------ ------------------
Sub Total 31,314,729 23,566,439 7,748,290 7,748,290
========== ========== ========== ==========
69,784,518 55,584,692 14,199,826 14,199,826
========== ========== ========== ==========
1998 118,562,191 95,836,935 22,725,256 22,931,956
========== ========== ========== ==========
3.4 Details of disposal of assets in own use is as under:
Cost of Accumulated Book Sale (Loss)/Gain Mode of
Particulars assets Depreciation value proceeds on Disposal disposal Particular of purchasers
Rupees Rupees Rupees Rupees Rupees
Computer 132,250 132,249 1 1,500 1,498 Negotiation Mr. Nisar Kauser
22/5, C-1 Area, Liaquatabad, Karachi.
Computer 50,000 49,998 2 1,500 1,499 Negotiation Mr. Nisar Kauser
22/5, C-1 Area, Liaquatabad, Karachi.
Motor Vehicle 562,800 562,800 -- 310,000 310,000 Negotiation Mr. Talib Qureshi
A 7/2, Azizabad, F.B. Area, Karachi.
Motor Vehicle 60,500 2,017 58,483 60,000 1,517 Insurance Adamjee Insurance Co.,
Claim Saddar Br. Zaibunnisa Street, Karachi.
Equipment 5,600 607 4,993 1,500 (3,493) Negotiation Nasir Electronic
2-D, Aisha Chambers,
Abdullah Haroon Road, Karachi.
------------------ ------------------ ------------------ ------------------ ------------------
811,150 747,671 63,479 374,500 311,021
========== ========== ========== ========== ==========
1998 -- -- -- -- --
========== ========== ========== ========== ==========
4. LONGTERM INVESTMENTS
Unless stated otherwise the holdings are in quoted ordinary shares/certificates of Rs. 10 each.
June 30, 1999
Averate
No. of shares/certificates June 30, cost per
June 30, June 30, 1998 share/
1998 1999 Cost certificate Cost Market value
Rupees Rupees Rupees Rupees
(a) ASSOCIATED UNDERTAKING
Al-Mal Securities & Services Limited 229,500 229,500 2,182,820 9.5112 2,182,820 803,250
(b) ASSOCIATED MODARABA
Modaraba Al-Tijarah 120,800 120,800 1,230,058 10.1826 1,230,058 132,880
(Managed by Al-Mal Corporation Limited)
(c) OTHERS
MUTUAL FUNDS
ICP State Enterprise Mutual Fund 28,500 28,500 1,014,507 35.5967 1,014,507 300,675
Twenty Second ICP Mutual Fund 25,000 25,000 650,750 26.0300 650,750 56,250
Twenty Fourth ICP Mutual Fund 49,800 49,800 498,000 10.0000 498,000 72,210
National Investment Trust (Units) 95,000 95,000 1,482,000 15.6000 1,482,000 722,000
MODARABAS
Allied Bank Modaraba 45,783 45,783 526,537 11.5007 526,537 286,144
[Managed by Allied Management
Services (Pvt) Limited]
First Grindlays Modaraba 20,088 20,088 604,755 30.1053 604,755 246,078
[Managed by Grindlays Services of
Pakistan (Pvt) Ltd]
First UDL Modaraba 21,384 21,384 255,398 11.9434 255,398 69,498
[Managed by UDL Modaraba
Management (Pvt) Ltd]
LEASING COMPANIES
Ibrahim Leasing Company Limited 25,000 25,000 447,208 17.8883 447,208 92,500
First Leasing Corporation Limited 11,500 11,500 395,393 34.3820 395,393 60,375
INSURANCE
Adamjee Insurance Company Limited 6,102 6,102 702,499 104.6631 702,499 260,762
TEXTILE WEAVING
Kohinoor Weaving Mills Limited 17,100 17,100 323,994 18.9470 323,994 247,950
SYNTHETIC AND RAYON
Dhan Fibre Limited 45,500 45,500 656,608 14.4309 656,608 209,300
Gatron Industries Limited 11,700 11,700 742,008 63.4195 742,008 169,650
Ibrahim Fibre Limited 35,000 35,000 625,275 17.8650 625,275 245,000
SUGAR AND ALLIED INDUSTRIES
Haseeb Waqas Sugar Mills Limited 16,000 16,000 209,581 13.0988 209,581 28,000
CEMENT
Essa Cement Limited 17,545 17,545 611,038 34.8269 611,038 122,815
Maple Leaf Cement Factory 18,900 18,900 1,198,751 63.4260 1,198,751 53,865
FUEL AND ENERGY
Kohinoor Power Company 24,150 24,150 1,238,900 51.3002 1,238,900 78,488
AUTO AND ALLIED ENGINEERING
Agri-Autos Industries Limited 698,486 698,486 5,645,915 8.0831 5,645,915 2,060,534
Gandhara Nissan Limited 32,500 2,500 1,133,330 34.8720 87,180 20,375
VANASPATI AND ALLIED
Kashmir Edible Oil Mills Limited 25,500 25,500 381,936 14.9779 381,936 51,000
PAPER AND BOARD
Century Paper & Board Mills Limited 17,600 19,360 597,125 30.8432 597,125 242,000
------------------ ------------------ ------------------ ------------------
23,354,386 22,308,236 6,631,599
Provision for diminution in value of
investment (18,288,119) (15,676,637) --
------------------ ------------------ ------------------ ------------------
5,066,267 6,631,599 6,631,599
========== ========== ========== ==========
Aggregate market value as at June 30, 1998 5,066,267
==========
June 30, June 30,
1999 1998
Note Rupees Rupees
5. DEFERRED EXPENDITURES
Expenditure on issue of right certificates 519,643 519,643
Amortization to date (494,030) (390,098)
------------------ ------------------
25,613 129,545
========== ==========
The above expenditure is carried forward as it confers benefit to future years.
6. SHORT TERM MUSHARAKA FINANCE - Secured
Considered good
To an associated modaraba 6.1 7,079,532 5,940,000
========== ==========
6.1 The Modaraba has entered into a musharaka agreement with Modaraba Al-Tijarah, an associated
modaraba, for providing funding to a maximum limit of Rs. 16 million (1998: Rs. 16 million) for trading
activities, The profit and loss will be shared by both modarabas in an agreed ratio after adjusting all
incidental costs. The facility is secured by hypothecation of stock in-trade. The principal amount and
profit is repayable in a lump sum after completion of the transactions. A provisional profit at the rate
of 19.% (1998: 19%) per annum is being accrued on daily product outstanding balance.
7. SHORTTERM MORABAHA FINANCE-Secured
Considered good 7.1 11,040,108 13,338,440
Considered doubtful 465,688 --
------------------ ------------------
7.2 11,505,796 13,338,440
Provision for doubtful debts (465,688) --
------------------ ------------------
11,040,108 13,338,440
========== ==========
7.1 The above represent sums receivable against Morabaha transactions i.e. sale of goods on a deferred
payment basis at specified profit margins ranging from 23% to 27% (1998: 23% to 27%) per annum.
The facilities are secured by personal guarantees of the directors, equitable mortgage of property and
hypothecation of stock.
7.2 The above amount is considered to be fully receivable. However, in accordance with the SBP's
Prudential Regulations, the Modaraba has made the required provision against overdue rentals.
8. SHORTTERM INVESTMENTS
Unless stated otherwise the holdings are in quoted ordinary shares/certificates of Rs. 10 each.
June 30, 1999
Averate
No. of shares/certificates June 30, cost per
June 30, June 30, 1998 share/
1998 1999 Cost certificate Cost Market value
Rupees Rupees Rupees Rupees
a) ASSOCIATED UNDERTAKING
Al-Mal Securities & Services Limited 1,500 1,500 8,095 5.3967 8,095 5,250
b) ASSOCIATED MODARABA
Modaraba Al-Tijarah
(Managed by Al-Mal Corporation Ltd.) 3,500 25,500 4,150 1.0167 25,925 28,050
c) OTHERS
MUTUAL FUND
Golden Arrow S.S. Fund 49,500 17,000 72,281 1.4220 24,174 22,100
ICP State Enterprise Mutual Fund -- 1,000 -- 10.8240 10,824 10,550
MODARABAS
Long Term Venture Capital Modaraba (Rs. 5) 95,550 95,550 633,471 6.6297 633,471 128,992
[Managed by National Technology
Development Corporation Limited]
First Mehran Modaraba 18,012 18,012 214,980 11.9354 214,980 45,030
[Managed by Technology
Ventures (Pvt) Ltd]
First Habib Bank Modaraba 10,000 10,000 71,050 7.1050 71,050 62,500
[Managed by Habib Bank Financial
Services (Pvt) Ltd]
First Equity Modaraba 17,000 17,000 130,710 7.6888 130,710 51,850
[Managed by Premier Financial Services
(Pvt) Ltd.]
Allied Bank Morabaha -- 500 -- 6.0640 3,032 3,125
[Managed by Allied Services (Pvt) Ltd]
LEASING COMPANIES
Saudi Pak Leasing Co. 24,124 24,124 882,759 36.5926 882,759 144,744
(Formerly Standard Chartered Mercantile)
Dadabhoy Leasing Company Limited 10,212 10,212 87,735 8.5914 87,735 12,254
Trust Leasing Corporation Limited 19,376 19,376 622,754 32.1405 622,754 62,972
National Development Leasing Corporation 5,250 5,250 46,900 8.9333 46,900 22,312
Paramount Leasing Limited. 5,000 5,000 43,150 8.6300 43,150 25,000
Union Leasing Limited 7,000 200 23,500 2.6950 539 600
INVESTMENT COMPANIES/BANKS
The Bank of Punjab Limited 4,933 5,426 278,861 51.3935 278,861 74,608
Faysal Bank Limited 15,000 15,000 427,625 28.5083 427,625 138,750
First Capital Securities Corporation Limited 5,500 6,187 98,150 15.8639 98,150 49,496
INSURANCE
Commercial Union Assurance Company 10,000 10,000 135,200 13.5200 135,200 77,500
TEXTILE SPINNING
Khurshid Spinning Mills Limited 13,000 13,000 95,312 7.3317 95,312 7,800
Crescent Spinning Mills Limited 10,500 10,500 138,195 13.1614 138,195 51,450
Taj Textile Mills Limited 10,500 10,500 143,781 13.6934 143,781 21,000
Friends Spinning Mills Limited 7,355 7,355 75,757 10.3001 75,757 12,871
Maqbool Textile Mills Limited 7,000 7,000 86,835 12.4050 86,835 29,750
Sail Textile Mills Limited 11,902 11,902 179,435 15.0760 179,435 83,314
TEXTILE COMPOSITE
(Colony) Sarhad Textile Mills Limited 25,014 25,014 369,077 14.7548 369,077 50,028
Nishat Mills Limited 23,489 23,489 1,240,093 52.7946 1,240,093 223,146
SYNTHETIC AND RAYON
Tristar Polyester Limited 17,000 17,000 485,867 28.5804 485,867 29,750
Polycon Limited 8,500 8,500 115,855 13.6300 115,855 21,675
Dewan Salman Fibre Limited 18,562 21,346 894,150 41.8884 894,150 536,852
Dhan Fibre Limited 45,000 45,000 259,550 5.7678 259,550 207,000
Carried Forward 7,865,278 7,829,841 2,240,319
Brought forward 7,865,278 7,829,841 2,240,319
SUGAR AND ALLIED INDUSTRIES
Al-Asif Sugar Mills Limited 200 200 2,451 12.2550 2,451 370
Dewan Sugar Mills Limited 15,840 17,424 1,034,653 59.3809 1,034,653 309,276
Haseeb Waqas Sugar Mills Limited 18,500 18,500 74,899 4.0486 74,899 33,300
CEMENT
Punjab Building Products Limited (Rs.5) 24,000 24,000 239,126 9.9636 239,126 --
Cherat Cement Company Limited 14,750 14,750 521,500 35.3559 521,500 191,750
Pakistan Slag Cement Industries Limited 5,000 5,000 181,375 36.2750 181,375 10,000
Lucky Cement Limited 26,000 26,000 593,600 22.8308 593,600 107,900
D.G. Khan Cement Company Limited 30,000 30,000 503,750 16.7917 503,750 127,500
Fauji Cement Factory Limited 15,000 15,000 142,200 9.4800 142,200 44,250
Pakland Cement Limited 10,000 10,000 99,050 9.9050 99,050 46,000
Dandot Cement Company Limited 9,000 9,000 52,250 5.8056 52,250 11,250
FUEL AND ENERGY
Tristar Power Limited 22,500 22,500 763,827 33.9479 763,827 42,750
Ibrahim Energy Limited 2,500 2,500 91,600 36.6400 91,600 29,625
Sui Southern Gas Company Limited 4,025 4,427 101,675 22.9670 101,675 38,515
Sitara Energy Limited 22,500 21,500 729,250 31.9794 687,557 505,250
Kohinoor Energy Limited 10,000 10,000 207,000 20.7000 207,000 106,000
Genertech (Pak) Power Company 2,000 2,000 36,260 18.1300 36,260 17,000
Japan Power Generation Limited 5,000 64,000 51,900 4.5233 289,492 252,800
Hub Power Company Limited 14,000 14,000 585,700 41.8357 585,700 197,400
AUTO AND ALLIED ENGINEERING
Indus Motor Company Limited 10,000 -- 142,325 -- -- --
CHEMICAL AND PHARMACEUTICAL
Sardar Chemical Industries Limited 5,000 5,000 69,885 13.9770 69,885 12,000
ICI Pakistan Limited 20,000 20,000 588,900 29.4450 588,900 177,000
FFC Jordan Company Limited 5,000 5,000 120,000 24.0000 120,000 56,000
Fauji Fertilizer Co. Ltd -- 4,000 -- 54.8000 219,200 164,400
TRANSPORT AND COMMUNICATION
Pakistan National Shipping Corporation 21,900 21,900 228,441 10.4311 228,441 51,465
Pakistan Telecommunication
Corporation Limited "A" 29,500 7,500 861,307 21.4069 160,552 148,875
Pakistan International Airlines Corporation (A) 5,000 -- 45,150 -- -- --
PAPER AND BOARD
Century Paper &. Board Mills Limited 5,000 5,500 146,000 26.5455 146,000 68,750
MISCELLANEOUS
Arpak International Investment Limited 6,700 6,700 68,753 10.2616 68,753 23,450
------------------ ------------------ ------------------ ------------------
16,148,105 15,639,537 5,013,195
Provision for diminution in value of investments (11,621,094) (10,626,342) --
------------------ ------------------ ------------------ ------------------
4,527,011 5,013,195 5,013,195
========== ========== ========== ==========
Aggregate market value as at June 30, 1998 4,527,011
========== ========== ========== ==========
June 30, June 30,
1999 1998
Note Rupees Rupees
9. LEASE RENTALS RECEIVABLE -Secured
Considered good 7,317,482 9,206,920
Considered doubtful 17,620,091 16,029,915
------------------ ------------------
9.1 24,937,573 25,236,835
Provision for doubtful debts (17,620,091) (16,029,915)
------------------ ------------------
7,317,482 9,206,920
========== ==========
9.1 The above amount is considered to be fully receivable. However, in accordance with the SBP's
Prudential Regulations, the Modaraba has made the required provision against overdue rentals.
10. ADVANCES, DEPOSITS, PREPAYMENTS
AND OTHER RECEIVABLES
Advances and deposits 123,100 41,850
Advance Income Tax 2,155,092 2,219,251
Prepayments 1,624,747 1,776,378
Expenses recoverable from lessees 2,997,921 1,651,303
Provision for bad debts (915,320) (518,702)
------------------ ------------------
2,082,601 1,132,601
Dividend receivable 45,128 130,714
Provision for bad debts (7,350) (7,350)
------------------ ------------------
37,778 123,364
Profit accrued on short term morabaha finance 188,815 468,282
Receivable from management company -- 1,340,073
Other receivables 144,855 69,123
------------------ ------------------
6,356,988 7,170,922
========== ==========
11. CASH AND BANK BALANCES
At bank - in PLS accounts 8,054,551 2,500,233
               - in current accounts 3,465,391 433,663
               - with State Bank of Pakistan 11.1 225,000 225,000
------------------ ------------------
11,744,942 3,158,896
Security stationery in hand 21,860 25,920
------------------ ------------------
11,766,802 3,184,816
========== ==========
11.1 This represents interest free deposit with State Bank of Pakistan as required under the State
Bank of Pakistan's Prudential Regulations for Non-Banking Financial Institutions to maintain liquidity
against certain liabilities.
June 30, June 30,
1999 1998
Note Rupees Rupees
12. ISSUED, SUBSCRIBED AND PAID-UP CAPITAL
13,569,000 (1998:13,569,000) Modaraba
Certificates of Rs. 10 each fully
paid in cash 135,690,000 135,690,000
4,688,400 (1998: 4,688,400) Modaraba
Certificates of Rs. 10 each fully
paid bonus certificates 46,884,000 46,884,000
------------------ ------------------
182,574,000 182,574,000
========== ==========
13. STATUTORY RESERVE
Balance at the beginning of the year 14,455,639 14,371,305
Transfer from profit and loss appropriation account 5,915,680 84,334
------------------ ------------------
Balance at the end of the year 20,371,319 14,455,639
========== ==========
The statutory reserve represents profits set aside as required under the State Bank of Pakistan's
Prudential Regulations for Non-Banking Financial Institutions.
14. LONG TERM MORABAHA FINANCES- Secured
Morabaha from financial institutions 14.1 5,371,985 10,718,052
Current maturities shown under current liabilities (4,179,159) (4,368,052)
------------------ ------------------
1,192,826 6,350,000
========== ==========
14.1 Morabaha from financial institutions
Profit
Outstanding Balance Purchase margin Repayment
1998 1999 Sale price price per annum from installments
Rupees Rupees Rupees Rupees %
Loan A 4,973,922 3,263,019 10,505,725 7,000,000 20.00 August 1,1996 9 unequal
half yearly
Loan B 5,744,130 2,108,966 14,659,664 10,000,000 20.50 October1, 1996 14 unequal
------------------ ------------------ ------------------ ------------------ quarterly
10,718,052 5,371,985 25,165,389 17,000,000
========== ========== ========== ==========
The morabaha sale prices are secured by hypothecation of certain leased assets, rentals receivable
thereagainst and promissory notes.
June 30, June 30,
1999 1998
Note Rupees Rupees
15. DEFERRED LIABILITY
Customer's security deposits 43,573,399 37,000,722
Current maturities shown under current liabilities (15,131,143) (13,743,515)
------------------ ------------------
28,442,256 23,257,207
========== ==========
16. CREDITORS, ACCRUED AND OTHER LIABILITIES
Creditors 16.1 8,549,448 10,719,959
Accrued liabilities 117,389 199,014
Profit accrued on morabaha finance 271,916 414,493
Management fee payable 169,958 --
Others 16.2 606,038 1,291,422
------------------ ------------------
9,714,749 12,624,888
========== ==========
16.1 These include Rs. 4,191,088 (1998: Rs. 3,514,658) as profit received on PLS bank accounts from
January 1, 1994 to the year end. The Modaraba is of the opinion that the profit received on PLS bank
accounts is not permitted under the Islamic mode of financing and hence has not been recognised
as income, pending clarification from Religious Board of the appropriate treatment of such profit.
16.2 This represents late payment charges on rentals recovered from the customers of the Modaraba
which according to the direction of the Religious Board are not to be taken to income but used for
charitable purposes only.
17. CONTINGENCIES
A suit has been filed against the Modaraba for Rs. 6.48 million (1998: Rs. 6.48 million) being a claim for
refund of security deposit in respect of lease finance. The Modaraba is defending the claim as they have
evidence of repayment of the security deposit. The Modaraba is of the opinion that it stands a fairly good
chance of winning this case. Consequently no provision is considered necessary.
18. OPERATING INCOME
Leasing income 124,086,801 105,658,575
Profit on Morabaha finance 2,794,125 2,486,433
Profit on Musharaka finance
from an associated undertaking 1,139,532 --
(Loss) on sale of investments (564,365) (5,178)
Dividend income 610,840 891,339
------------------ ------------------
128,066,933 109,031,169
========== ==========
June 30, June 30,
1999 1998
Note Rupees Rupees
19. OPERATING COST
Salaries and allowances 28 4,743,556 4,240,731
Amortization of leased assets 3.1 80,705,014 66,420,654
Depreciation on assets in own use 3.2 1,346,848 1,361,996
Insurance 4,330,211 4,897,018
Subscription 171,526 165,250
Legal and professional charges 505,814 1,170,011
Amortization of deferred expenditure 103,932 103,932
Printing and stationery 240,040 235,044
Electricity 379,703 530,171
Telephone 222,793 203,744
Postage 29,286 35,592
Advertising 243,868 42,416
Auditors' remuneration 19.1 87,945 76,872
Repair and maintenance 598,811 581,296
Fuel and conveyance 344,158 277,368
Rent, rates and taxes 523,124 172,029
Registrar services 26 600,000 540,000
Miscellaneous expenses 242,302 310,375
------------------ ------------------
95,418,931 81,364,499
========== ==========
19.1 Auditors' remuneration
Statutory audit 80,000 70,000
Out of pocket expenses 7,945 6,872
------------------ ------------------
87,945 76,872
========== ==========
20. PROFIT DISTRIBUTION ON BORROWINGS
Profit on long term Morabaha finance 1,680,460 2,726,425
Profit on short term Musharaka finance 53,507 --
------------------ ------------------
1,733,967 2,726,425
========== ==========
21. OTHER INCOME
Gain on disposal of assets given on lease 3.3 -- 206,703
Gain on disposal of assets in own use 3.4 311,021 --
Others 610,537 980,511
------------------ ------------------
921,558 1,187,214
========== ==========
June 30, June 30,
1999 1998
Note Rupees Rupees
22. PROVISIONS
Provision for diminution in value of short term investments (994,752) 4,362,009
Provision for diminution in value of long term investments (2,611,482) 18,288,119
Provision for short term morabaha finance 465,688 --
Provision for lease rental receivables 1,590,176 (1,960,921)
Provision for expenses recoverable from lessees 396,618 177,141
------------------ ------------------
(1,153,752) 20,866,348
========== ==========
23. TAXATION
The Modaraba's Income tax assessments until assessment years 1998-1999 have been finalised. An
amount of Rs. 0.412 million has been provided as prior year charge during the current year.
As per the changes made through Finance Act, 1998 in clause 102E of Second Schedule of Part I of
Income Tax Ordinance, 1979, the Modaraba now considers itself exempt from income tax application.
Therefore, no provision with respect to current and deferred taxation has been made in the accounts for
the assessment year 1999-2000.
24. BASIC EARNINGS PER CERTIFICATE
Basic earnings per certificates is calculated by dividing the net profit for the year by the number of
certificates outstanding during the year as follows:
Profit after tax for the year 29,578,399 421,669
========== ==========
Weighted average number of certificates outstanding
during the year 18,257,400 18,257,400
========== ==========
Basic earnings per certificate 1.62 0.02
========== ==========
No figure for diluted earnings per certificates has been presented as the Modaraba has not issued any
instruments which would have an impact on earnings per certificate when exercised.
25. ADJUSTMENTS ON NON CASH AND OTHER ITEMS
Depreciation - Leased assets 80,705,014 6,642,065.40
                       - Owned assets 1,346,848 1,361,996
Amortization of deferred expenditure 103,932 103,932
Provision for bad debts 2,452,482 (1,783,780)
Provision for short term investments (994,752) 18,288,119
Provision for long term investments (2,611,482) 4,362,009
Gain on disposal of leased/owned assets (311,021) (206,703)
Loss/(Gain) on sale of long term investments 505,800 (6,473)
Financial charges 1,733,967 2,726,425
Dividend income (610,840) (891,339)
------------------ ------------------
82,319,948 90,374,840
========== ==========
June 30, June 30,
1999 1998
Note Rupees Rupees
26. TRANSACTIONS WITH ASSOCIATED UNDERTAKINGS
Charges for register services 600,000 540,000
Brokerage expenses 26.1 13,005 17,107
Reimbursement of salaries & perquisites 26.2 79,432 100,735
Disbursements against musharaka with
associated modaraba 2,100,000 2,110,000
Receipts against musharaka with
associated modaraba 2,100,000 11,528,000
Profit on musharaka finance 1,139,532 --
Management fee paid-net 1,489,000 2,005,000
Dividend paid -- 1,497,820
Received on account of services rendered 56,100 140,400
Payment for charity and donations 26.3 945,000 122,140
26.1 These represent commission on sales and purchases of investments through Al-Mal Securities and
Services Limited which is a corporate member of Karachi Stock Exchange.
26.2 The amount paid to Al-Mal Corporation for Modaraba Al-Mali's share of salaries of group internal
auditor.
26.3 The amount paid to Al-Mal Charitable Trust as charity and donations from late payment charges
recovered.
26.4 Maximum amount due from associated undertakings at the end of any month during the year was
Rs. 7,079,532 (1998: Rs. 15,451,693).
26.5 The transactions with the associated undertakings are in the normal course of business at contracted
rates and terms determined in accordance with market rates.
27. RENTALS RECEIVABLE WITHIN ONE YEAR
Rentals receivable in the subsequent financial year i.e. June 30, 2000 would amount to approximately
Rs. 114.022 million (June 30, 1999 Rs. 104.522 million)
28. REMUNERATION OF OFFICERS AND OTHER EMPLOYEES
The aggregate amount charged in the accounts for remuneration, including all benefits, to officers
and other employees of the Modaraba were as follows:
OFFICERS OTHER EMPLOYEES TOTAL
June 1999 June 1998 June 1999 June 1998 June 1999 June 1998
Rupees Rupees Rupees Rupees Rupees Rupees
Salaries 1,591,124 1,206,690 1,104,523 1,130,060 2,695,647 2,336,750
Retirement benefits 265,911 202,591 166,664 210,563 432,575 413,154
House rent allowance 715,978 542,977 466,191 502,917 1,182,169 1,045,894
Conveyance and
other allowances 298,906 235,046 134,259 209,887 433,165 444,933
------------------ ------------------ ------------------ ------------------ ------------------ ------------------
2,871,919 2,187,304 1,871,637 2,053,427 4,743,556 4,240,731
========== ========== ========== ========== ========== ==========
Number of persons at the
end of the year 6 5 22 22 28 27
========== ========== ========== ========== ========== ==========
Four of the officers are also provided with free use of cars maintained by the Modaraba
29. INTEREST RATE RISK
As most financial instruments of the Modaraba are on a predetermined profit and loss sharing basis
rather than being exposed to mark-up, the Modaraba is not considered exposed to material interest rate risk.
30. FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value is the amount for which an asset could be exchanged or a liability settled, between
knowledgeable willing parties in an arm's length transaction. whereas, the Modaraba prepares its financial
statement under the historical cost convention, therefore, differences may arise between book value
and the fair estimates
The estimated fair value of all balance sheet financial instruments are not significantly different from
their book value.
31. CREDIT RISK AND CONCENTRATION OF CREDIT
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and
cause the other party to incur a financial loss. The Modaraba, attempts to control credit risk by monitoring
credit exposures, limiting transactions with specific counterparties, and continually assessing the
creditworthiness of counterparties.
Concentrations of credit risk arise when a number of counterparties are engaged in similar business
activities, or activities in the same geographic region, or have similar economic features that would
cause their ability to meet contractual obligations to be similarly affected by changes in economic,
political or other conditions. Concentrations of credit risk indicate the relative sensitivity of the Modaraba
performance to developments affecting a particular industry or geographic location.
The Modaraba seeks to manage its credit risk exposure through diversification of lending activities to
avoid undue concentrations of risks with individuals or groups of customers in specific locations or
businesses. It also obtains security when appropriate. Concentration of credit risk on assets leased
out, morabaha financing and musharaka financing with parties are indicated in the following table by
the percentage of total balance receivable from these parties in the specified industries/sectors
June 30, 1999
Lease rentals Morabaha Musharaka
Industry Sector receivable finances finance Total Total
Rupees Rupees Rupees Rupees %
Distributors, Wholesellers and Retailers 985,062 6,241,190 -- 7,226,252 28.41
Financial Institutions -- -- 7,079,532 7,079,532 27.83
Food, Tobacco and Beverages 2,752,232 2,431,050 -- 5,183,282 20.38
Transport and Communication 1,441,709 -- -- 1,441,709 5.67
Chemical, Fertilizer and Pharma -- 1,429,893 -- 1,429,893 5.62
Textile & Garments 47,817 837,700 -- 885,517 3.48
Glass, Ceramics and Plastics 603,748 -- -- 603,748 2.37
Hotels 462,338 -- -- 462,338 1.82
Steel, Engineering and Autos 397,312 -- -- 397,312 1.56
Miscellaneous 194,434 100,275 -- 294,709 1.16
Construction 255,935 -- -- 255,935 1.01
Printers And Publishers 154,005 -- -- 154,005 0.61
Security Services 22,890 -- -- 22,890 0.09
------------------ ------------------ ------------------ ------------------ ------------------
7,317,482 11,040,108 7,079,532 25,437,122 100.00
========== ========== ========== ========== ==========
June 30, 1998
Lease rentals Morabaha Musharaka
Industry Sector receivable finances finance Total Total
Rupees Rupees Rupees Rupees %
Textile & Garments 427,199 7,174,122 -- 7,601,321 26.69
Distributors, Wholesellers and Retailers 805,477 5,822,768 -- 6,628,245 23.27
Financial Institution 390,777 -- 5,940,000 6,330,777 22.22
Transport and Communications 1,887,298 -- -- 1,887,298 6.63
Food, Tobaco and Beverages 1,725,176 -- -- 1,725,176 6.06
Miscellaneous 1,229,773 341,550 -- 1,571,323 5.52
Leather, Footware and Tanneries 1,079,213 -- -- 1,079,213 3.79
Glass, Ceramics and Plastics 701,958 -- -- 701,958 2.46
Construction 615,935 -- -- 615,935 2.16
Printers and Publishers 144,550 -- -- 144,550 0.51
Security Services 126,505 -- -- 126,505 0.44
Energy Oil and Gas 73,059 -- -- 73,059 0.26
------------------ ------------------ ------------------ ------------------ ------------------
9,206,920 13,338,440 5,940,000 28,485,360 100.00
========== ========== ========== ========== ==========
31. GENERAL
(a) Previous year's figures have been rearranged, wherever necessary, for the purpose of comparison.
(b) Figures have been rounded off to the nearest Rupee.
Zafar H. Naqvi Maqbool Hussain S. Iradat Husain
Chief Executive Vice Chairman Chairman
PATTERN OF CERTIFICATE HOLDINGS
AS AT JUNE 30, 1999
Number of Certificate holding Total
Certificate From To Certificates
Holders Held
373 1 to 100 18726
570 101 to 500 166128
535 501 to 1000 417407
1158 1001 to 5000 2585479
256 5001 to 10000 1802850
92 10001 to 15000 1111381
39 15001 to 20000 660358
31 20001 to 25000 690010
14 25001 to 30000