| Pakistan Ind. & Comm. Leasing Ltd - 2003 |
=================================================================================== BALANCE SHEET AS AT JUNE 30, 2003 =================================================================================== 2003 2002 Note Rupees Rupees =================================================================================== ASSETS NON-CURRENT ASSETS Tangible fixed assets 3 10,633,839 14,712,369 Net investment in lease finances 4 194,343,082 261,638,828 Investments 5 92,525,848 84,751,840 CURRENT ASSETS Net investment in lease finances - current portion 4 162,404,086 270,969,905 Advance against assets subject to lease 6 - 2,960,374 Investments-Held For Trading 7 22,332,484 27,688,046 Advances, deposits and prepayments 8 22,115,456 15,022,231 Other Receivables 9 68,331,222 51,920,048 Cash and bank balances 10 31,312,599 57,060,811 306,495,847 425,621,415 TOTAL ASSETS 603,998,616 786,724,452 EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Authorised capital 25,000,000 (2001: 25,000,000) ordinary shares of Rs. 10/- each 250,000,000 250,000,000 Issued, subscribed and paid-up capital 11 164,162,220 164,162,220 Reserves 12 Statutory reserve 31,071,118 31,071,118 Accumulated loss (213,640,903)(178,069,201) (18,407,565) 17,164,137 NON-CURRENT LIABILITIES Long term finances 13 392,286,282 470,710,368 Certificates of investment 14 500,000 1,667,145 Deposit on lease contracts 15 28,313,247 85,176,908 Obligation under finance lease 16 93,781 2,178,819 CURRENT LIABILITIES Redeemable capital - non participatory 17 - 1,425,000 Current maturity of: Long term finances 13 75,384,734 75,384,734 Certificates of Investment 14 3,790,000 5,408,622 Deposits on lease contracts 15 91,047,202 104,132,025 Obligation under finance lease 16 2,079,976 1,443,254 Accrued and other liabilities 18 28,910,959 22,033,440 201,212,871 209,827,075 TOTAL EQUITY AND LIABILITIES 603,998,616 786,724,452 =================================================================================== =================================================================================== PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2003 =================================================================================== 2003 2002 Note Rupees Rupees =================================================================================== INCOME Income from leasing operations 19 42,522,555 100,817,475 Income from government securities - 1,513,181 Income from bank deposits 1,365,079 3,059,424 Return on short term finances 973,068 806,255 Return on additional financing to Pakland Cement Ltd. 55,359 - Gain (Loss)/on sale of Investments 7,100,810 (2,297,925) Profit on disposal of fixed assets 728,528 576,599 Dividend income 2,668,253 2,148,620 Other income 1,154,395 1,894,860 56,568,047 108,518,489 EXPENDITURE Financial charges 20 59,635,020 83,191,427 Return on certificates of investment 491,574 2,472,469 Administrative and operating expenses 21 37,046,497 41,918,505 (97,173,091) (127,582,401) OPERATING LOSS BEFORE PROVISIONS (40,605,044) (19,063,912) Reversal/(PROVISIONS)/OTHERS Doubtful lease receivables 1,794,271 (97,481,050) Other receivables (1,684,988) (3,787,578) Gain on revaluation of investments held for trading 6,655,128 651,231 Loss on revaluation of investments available for sale (520,018) (1,097,424) 6,244,393 (101,714,821) LOSS BEFORE TAXATION (34,360,651) (120,778,733) PROVISION FOR TAXATION (1,211,051) (1,700,000) Current NET LOSS FOR THE YEAR (35,571,702) (122,478,733) Accumulated loss brought forward (178,069,201) (84,701,117) (213,640,903) (207,179,850) Transferred from general reserve - 29,110,649 Accumulated loss carried forward (213,640,903) (178,069,201) BASIC EARNING PER SHARE 23 (2.17) (7.46) =================================================================================== ===================================================================================
CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2003
===================================================================================
2003 2002
Rupees Rupees
===================================================================================
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss before taxation (34,360,651) (120,778,733)
Adjustments for:
Depreciation 3,164,761 3,200,527
Gain on disposal of fixed assets (728,528) (576,599)
Provision for doubtful lease receivables (1,794,271) 99,164,458
Provision for other receivables 1,684,988 2,104,180
Surplus on revaluation of investments (6,655,128) (651,231)
Deficit on revaluation investments 520,018 1,097,424
Income from government securities - (1,513,181)
Gain/(Loss) on sale of investments (7,100,810) 2,297,925
Financial charges and return on
certificates of investment 60,126,593 85,663,896
Dividend Income (2,668,253) -
46,549,371 190,787,399
Operating profit before working capital changes 12,188,720 70,008,666
(Increase) in operating assets (9,438,490) (20,978,587)
Increase/(decrease) in operating liabilities 921,156 (2,096,910)
(8,517,334) (23,075,497)
3,671,386 46,933,169
Investments in lease finance - net of recoveries 175,280,591 201,609,954
Interest paid (55,595,231) (88,691,180)
Income tax paid (7,388,872) (1,774,454)
Net cash from operating activities 115,967,874 158,077,489
CASH FLOWS FROM INVESTING ACTIVITIES
Income from government securities - 1,513,181
Purchase of tangible fixed assets (335,453) (11,110,129)
Sale proceeds of tangible fixed assets 1,977,750 703,045
Investments - (61,739,840)
Gain/(Loss) on sale of Investments 7,100,810 (2,297,925)
Dividend income 2,668,253 -
Net cash from/(used) in investing activities 11,411,360 (72,931,668)
CASH FLOWS FROM FINANCING ACTIVITIES
Long term finances and deposits on lease contracts (148,372,570) (64,075,169)
Assets acquire under finance lease - 3,110,000
Payment against finance lease (1,969,109) (1,362,927)
Certificates of investment (2,785,767) (10,676,378)
Net cash used in financing activities (153,127,446) (73,004,374)
Net (decrease)/ increase in cash and cash equivalents (25,748,212) 12,141,347
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 57,060,811 44,919,464
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 31,312,599 57,060,811
===================================================================================NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 20033. TANGIBLE FIXED ASSETS =========================================================================================================================================
Additions/ Accumulated Accumulated
Cost at the (disposals) Cost at the depreciation depreciation Book value Rate of
beginning during end of at the beginning Depreciation at the end at the end dep.
of the year the year the year of the year for the year of the year of the year %
=========================================================================================================================================
OWNED
Building 2,884,938 - 2,884,938 1,001,986 144,252 1,146,238 1,738,700 5
Leasehold improvements 1,108,780 295,538 1,404,318 1,085,996 10,723 1,096,719 307,599 20
Equipment and machinery 2,966,947 39,915 3,006,862 1,333,941 246,312 1,580,253 1,426,609 10
Furniture end fixtures 4,016,365 - 4,016,365 2,850,054 244,915 3,094,969 921,396 10
Vehicles 8,214,947 (3,721,032) 4,493,915 3,833,738 898,082 2,260,010 2,233,905 20
(2,471,810)
Computer peripherals 2,950,122 - 2,950,122 1,359,344 610,461 1,969,805 980,317 25
22,142,099 335,453 18,756,520 11,465,059 2,154,745 11,147,994 7,608,526
(3,721,032) (2,471,810)
UNDER LEASE
Vehicles 5,050,000 - 5,050,000 1,014,671 1,010,016 2,024,687 3,025,313 20
2003 Rupees 27,192,099 335,453 23,806,520 12,479,730 3,164,761 13,172,681 10,633,839
(3,721,032) (2,471,810)
2002 Rupees 19,303,403 11,110,129 27,192,099 12,374,190 3,200,527 12,479,730 14,712,369
(3,221,433) (3,094,987)
=========================================================================================================================================3.1. PARTICULARS OF DISPOSAL OF TANGIBLE FIXED ASSETS DURING THE YEAR=================================================================================================================================
Original Accumulated Written Sale Mode of Particulars
Description of assets cost depreciation down value proceed Disposal of purchaser
=================================================================================================================================
Suzuki Khyber 462,000 269,500 192,500 280,000 Negotiation Mr. Kamran Ghayas
House No. D-61, Nauman Avenue
Rashid Minhas Rd. Karachi.
Honda Civic 716,250 716,249 1 102,000 Negotiation Syed Kashif Raza Naqvi
House No. 476, Street No. 1 Sector 149/1
Islamabad.
Toyota Corolla 786,880 786,879 1 103,000 Negotiation Mr. Raza Ahmed
177-F Block-5. Kehkashan Clifton, Karachi.
Suzuki Margalla 419,487 419,487 - 285,000 Insurance claim
received
Honda Civic 1,243,200 186,480 1,056,720 1,182,750 Insurance claim
received
Honda CD 70 28,715 28,715 - 10,000 Negotiation Mr. Asim Baqa
Plot #79, Sector 24 Korangi Industrial Area,
Karachi.
Suzuki Motorcycle 64,500 64,500 - 15,000 Negotiation Mr. Asim Baqa
Plot #79, Sector 24 Korangi Industrial Area,
Karachi.
2003 Rupees 3,721,032 2,471,810 1,249,222 1,977,750
2002 Rupees 3,221,433 3,094,987 126,446 703,045
=================================================================================================================================4. NET INVESTMENT IN LEASE FINANCES===================================================================================
2003 2002
Note Rupees Rupees
===================================================================================
Minimum lease rentals receivables
Less than one year 465,003,344 509,575,554
More than one year and less than five years 140,674,391 364,008,425
Gross investment in leases 605,677,735 873,583,979
Less: Unearned finance income (36,368,660) (128,233,376)
Suspended income (62,002,325) (60,388,017)
(98,370,985) (188,621,393)
507,306,750 684,962,586
Provision for potential lease losses 4.3 (150,559,582) (152,353,853)
Net investment in lease finance 356,747,168 532,608,733
Less: Current portion of net investment
in lease finance (162,404,086) (270,969,905)
Long term portion of net investment 194,343,082 261,638,828
===================================================================================4.1. Minimum lease rentals receivable over the next twelve months amount to Rs. 90.260 million (2002: Rs.232.838 million).4.2. Net investment in lease finance includes Rs. 1.622 million (2002: Rs. 1.613 million) in respect of an associated undertaking. Maximum outstanding during the period was Rs. 1.622 million (2002: Rs.2.217 million). 4.3. PARTICULARS OF PROVISION AGAINST NON-PERFORMING LEASES =============================================================================================================
June 2003 June 2002
Specific General Total Specific General Total
=============================================================================================================
Opening Balance 152,353,853 - 152,353,853 91,366,374 - 91,366,374
Charge for the year - - - 99,164,446 - 99,164,446
Reversal (1,794,271) - (1,794,271) - - -
Transferred to other receivables - - - (38,176,967) - (38,176,967)
Closing balance 150,559,582 150,559,582 152,353,853 152,353,853
=============================================================================================================5. INVESTMENTS=================================================================================
FAIR VALUE COST
2003 2002 2003 2002
Note Rupees Rupees Rupees Rupees
=================================================================================
Available for sale 5.1 29,555,819 23,012,000 30,206,253 30,206,253
Held to maturity 5.2 62,970,029 61,739,840 62,970,029 61,739,840
92,525,848 84,751,840 93,176,282 91,946,093
=================================================================================5.1. AVAILABLE FOR SALE==================================================================================================================
No. of Shares
2003 2002
Shares in
listed companies Note
------------------------------------------------------------------------------------------------------------------
25,500 25,500 Zeeshan Textile Mills Ltd. 341,700 191,250 255,000 255,000
12,500 12,500 Zahoor Textile Mills Ltd. - 10,625 668,800 668,800
134,855 134,855 First Equity Modaraba 1,753,115 1,051,869 1,024,329 1,024,329
122,800 122,800 Prudential Investment Bank Ltd. 307,000 171,920 2,591,454 2,591,454
1,666,667 1,666,667 Saudi Pak Commercial Bank Ltd.
(Formerly Prudential Commercial 5.1.1 19,000,004 13,333,336 16,666,670 16,666,670
Bank Limited)
Shares in
non-listed companies
900,000 900,000 Prudential Securities Ltd. 5.1.2 8,154,000 8,253,000 9,000,000 9,000,000
29,555,819 23,012,000 30,206,253 30,206,253
==================================================================================================================5.1.1. 1 million shares of Saudi Pak Commercial Bank Limited (formerly Prudential Commercial Bank Limited) are pledged with Bankers Equity Limited as security for International Bank for Reconstruction and Development Finance (World Bank) Micro Enterprise Loan (see note 13.2).5.1.2. Break-up value per ordinary share of Rs. 10/- is based on accounts for the year ended June 30, 2002 is Rs. 9.06 [2002: Rs. 11.2]. Percentage of equity held 18% (2002: 18%). Name of the Chief Executive: Mr Osama Bin Shoaib 5.2. HELD TO MATURITY ===================================================================================
2003 2002
Rupees Rupees
===================================================================================
Term Finance Certificates
a) Pakland Cement Limited Note
TEC Series 'A' 51,400,000 51,400,000
TFC Series 'B' (3,145,000) 3,245,000
54,545,000 54,645,000
Provision (4,236,372) (4,336,372)
50,308,628 50,308,628
b) Saadi Cement Limited
TFC Series 'A' 11,063,000 11,063,000
TFC Series 'B' 1,868,000 1,868,000
12,931,000 12,931,000
Provision (1,499,788) (1,499,788)
11,431,212 11,063,000
Additional Financing 1,230,189 -
62,970,029 61,739,840
===================================================================================5.2.1. The above TFC's have been issued equivalent to the amount outstanding as on December 31, 2000 against outstanding lease receivable from Pakland Cement Limited (PCL) and Saadi Cement Limited (SCL). As per scheme of arrangement arrived at by the creditors with PCL and SCL, the lease facilities have been converted into TFC's issued as a redeemable capital under the provision of section 120 of the Companies Ordinance, 1984.The TFC's of PCL and SCL are for a period of eight and a half year and nine and a half year with a grace period of two and a half year and three and a half year respectively. These are secured by a pari passu charge/mortgage over the assets and securities of PCL and SCL created in favour of the Trustees appointed on behalf of the TFC holders/creditors and will be redeemed in 13 semi annual installments. TFCs have been issued by PCL and SCL in two series. TFCs Series A represent the principal amount and carries a yield of 16% per annum. TFCs Series B issued for the accrued profit carry no yield. These TFC's are freely tradable amongst the TFC holders except that for sale/transfer to a party other than a creditor, prior consent of PCL and SCL would be required. The carried over provisions will be reversed by the Company on the basis of the actual recoveries effected according to the repayment schedule of the TFCs. 6. ADVANCE AGAINST ASSETS SUBJECT TO LEASE ===================================================================================
2003 2002
Rupees Rupees
===================================================================================
- 2,960,374
===================================================================================These represent mark-up based advances given to suppliers for purchase of assets under lease agreements.7. INVESTMENTS-HELD FOR TRADING =============================================================================================================
FAIR VALUE COST
Held for Trading
2003 2002 2003 2002
2003 2002 Note Rupees Rupees Rupees Rupees
=============================================================================================================
135,000 800,000 Hub Power Company Ltd. 5,116,500 18,560,000 4,790,414 19,005,350
11,228 10,728 Sui Northern Gas Pipelines Ltd. 371,647 148,046 373,255 142,962
- 200,000 Pakistan Telecommunication Co. Ltd.-A - 3,430,000 - 3,249,000
42,000 - National Refinery 4,158,000 - 4,827,014 -
16,000 - Sui Southern Gas Pipelines Ltd. 336,800 - 361,920 -
30,000 - Pioneer Cement 225,000 - 284,075 -
2,500 - Angro Chemical 217,125 - 217,125 -
40,000 - Indus Motor Company 2,890,000 - 2,953,000 -
146,500 - P.I.C.I.C 4,219,200 - 4,147,905 -
71,500 - Azam Textile 268,125 - 264,961 -
5,000 - Abbott Laboratories 460,000 - 457,417 -
20,000 - Reckitt Benckiser 1,218,000 - 1,442,450 -
50,000 - Dewan Sugar 297,000 - 325,836 -
19,777,397 22,138,046 20,445,372 22,397,312
Held to Maturity
Musharika Receivable 7.1 2,555,087 5,550,000 2,555,087 5,550,000
2,555,087 5,550,000 2,555,087 5,550,000
22,332,484 27,688,046 23,000,459 27,947,312
=============================================================================================================7.1. MARKUP RATE ON THE ABOVE IS 20%8. ADVANCES, DEPOSITS AND PREPAYMENTS ===================================================================================
2003 2002
Note Rupees Rupees
===================================================================================
Advance to employees - Unsecured Considered Good
- against salaries 6,334,200 2,444,003
- against expenses 182,795 88,895
6,516,995 2,532,898
Advance Income Tax 8,436,246 1,047,374
Advances 5,900,000 -
Deposits 488,536 617,036
Prepayments 8.1 773,679 10,824,923
22,115,456 15,022,231
===================================================================================8.1. This includes exchange risk coverage fee of Rs. 10,106 (2002: Rs.8,972,782.67) paid to State Bank of Pakistan against ADB-FSIL loan.9. OTHER RECEIVABLE ===================================================================================
2003 2002
Note Rupees Rupees
===================================================================================
Accrued income 9.1 195,723 209,079
Net receivable under foreign exchange
risk cover scheme 9.2 65,796,937 47,316,267
Others 9.3 2,338,562 4,394,702
68,331,222 51,920,048
===================================================================================9.1. ACCRUED INCOME===================================================================================
2003 2002
Rupees Rupees
===================================================================================
Income from bank deposits - 166,720
Return on short term investments 140,364 29,259
Return on T.F.C'S 55,359 -
Dividend Receivable - 13,100
195,723 209,079
===================================================================================9.2. This represents Rs. 122,234,969 (2002-101,710,452) recoverable from SBP on account of exchange difference arising on repayments of foreign currency IFC loan, registered under foreign exchange risk cover scheme, netted against the forward cover fee payable to SBP of Rs. 56,438,032 (2002-54,394,185) in respect of the same loan.These will be settled simultaneously. No exchange difference has yet been received neither any forward cover fee is paid as the exchange loss claim will be lodged with SBP after January 2004 as per the usual procedure, upon payment of final installment of the loan. The management is of the view that these will be settled simultaneously as has been done in a similar case earlier and expect to realize full amount. 9.3. PERTAINS TO EX-CHAIRMAN ===================================================================================
2003 2002
Note Rupees Rupees
===================================================================================
Receivable against Leases 9.3.1 49,531,488 49,531,488
Payable against COI and Musharika 9.3.1 (12,354,521) (11,354,521)
37,176,967 38,176,967
Less: Provision (37,176,967) (37,176,967)
- 1,000,000
====================================================================================9.3.1. This represents two leases disbursed by the previous management lacked substance as declared in the show cause notice issued to the then Board by the Securities and Exchange Commission of Pakistan.These are fully provided after taking the effect of liquid securities in the shape of certificate of investment and Musharika held in the name of family members of the Ex-Chairman. Further PICL filed recovery suit against both the leases and obtained decrees from the Honorable Courts in PICL's favour. 10. CASH AND BANK BALANCES ===================================================================================
2003 2002
Rupees Rupees
===================================================================================
With banks
- Current accounts 16,956 175,187
- Deposit accounts 30,070,643 55,660,624
- Deposit with SBP 1,225,000 1,225,000
31,312,599 57,060,811
===================================================================================11. ISSUED, SUBSCRIBED AND PAID-UP CAPITAL===================================================================================
No of shares 2003 2002
2003 2002 Rupees Rupees
===================================================================================
6,950,000 6,950,000
Ordinary Shares of Rs. 10/-each
fully paid in cash
69,500,000 69,500,000
9,466,222 9,466,222
Ordinary Shares of Rs. 10/-each issued
as fully paid bonus shares 94,662,220 94,662,220
16,416,222 16,416,222 164,162,220 164,162,220
===================================================================================11.1. International Finance Corporation (IFC) has the option to convert upto US$1 million into equity subject to a maximum of 20% of the increased share capital at the break-up value of the shares at the time of exercising the option (see note 13.1).12. RESERVES ===================================================================================
2003 2002
Rupees Rupees
===================================================================================
Capital Reserves
Statutory reserve 31,071,118 31,071,118
Revenue reserve
General reserve
Opening balance - 29,110,649
Transfer to Profit and Loss appropriation account - (29,110,649)
- -
Unappropriated Loss
Opening balance (178,069,201) (84,701,117)
Transfer from
general reserve - 29,110,64
Loss for the year (35,571,702) (122,478,733)
(213,640,903) (178,069,201)
Reserves at the end of the year (182,569,785) (146,998,083)
===================================================================================13. LONG TERM FINANCES - SECURED=================================================================================================================================================
Lender Note Installment Interest/ Number of Outstanding Repayment 2003 2002
Payable Markup rate installments Installments period Rupees Rupees
=================================================================================================================================================
International Finance Corporation IFC 13.1 Half Yearly 8.50% 16 4 1996-2004 19,271,251 38,542,501
US$ 5 million
International Bank for Reconstruction 13.2 Various 16% 224 168 2000-2008 86,298,349 105,713,095
and Development-IBRD (World Bank)
PKR 135.9 million
Kreditanstalt Fur Wiederaufbau-KFW 13.3 Various 14% 398 273 1999-2009 91,539,006 108,640,992
PKR 154.5 million
Financial Sector Intermediation
Loan-FSIL (ADB) 13.4 Half Yearly 6.24% 24 23 2002-2014 270,562,410 293,198,514
U5$ 4.750 million variable
467,671,016 546,095,102
Current Maturity (75,364,734) (75,384,734)
392,286,282 470,710,368
=================================================================================================================================================13.1. IFC has the option to convert upto US $1 million of the loan amount into equity of the company during the currency of the loan subject to the maximum of 20% of the increased share capital at the break-up value of the shares at the time of exercising the option. The loans are secured by a first floating charge on all present and future assets of the company ranking pari passu with other lenders.13.2. This represents balance amount of finance from International Bank for Reconstruction and Development (World Bank) Micro Enterprise loan of US$ 26 million to Government of Pakistan for financing Micro Enterprise Projects. The loans are secured by a first floating charge on all present and future assets of the company, ranking pari passu with other lenders and 1.0 million shares of Saudi Pak Commercial Bank Limited (formerly Prudential Commercial Bank Limited) pledged with Bankers Equity Limited (See note 5.1.1) 13.3. This represents balance amount of finance from Asian Development Bank, Financial Sector Intermediation Loan (FSIL) of US$ 100 million to Government of Pakistan for financing the lease investment and specific development projects in Pakistan. The rate of 14% per annum includes interest, administration charges and guarantee commission. The loan is secured by a first floating charge on all present and future assets of the company ranking pari passu with other lenders. 13.4. This represents balance amount of finance from Asian Development Bank, Financial Sector Intermediation Loan (FSIL) of US$ 100 million to Government of Pakistan for financing the lease investment and specific development projects in Pakistan. Total long term finance includes Rs. 58.558 million (June 2002 Rs. 61.597 million ) on account of difference between contracted rate and rate prevailing on the date of transaction covered with forward exchange cover contracts with SBP. The loan is secured by a first floating charge on all present and future assets of the company ranking pan passu with other lenders. 14. CERTIFICATES OF INVESTMENT ===================================================================================
2003 2002
Rupees Rupees
===================================================================================
Certificate of investment 4,290,000 7,075,767
Less: Current maturity 3,790,000 5,408,622
500,000,00 1,667,145
===================================================================================14.1. This represents Certificates of investment issued by the company in local currency. These are for terms of three months to five years and bearing interest ranging from 13% to 16.5%.14.2. Maturities falling within the next twelve months are included under current maturities. 14.3. On January 12, 2002 the credit rating agency downgraded the credit rating of the company in consequence of which SECP suspended the company's license to issue Certificate of Investments (COIs). However, existing COI deposits shall be encashed as and when they become due. 15. DEPOSITS ON LEASE CONTRACTS ===================================================================================
2003 2002
Note Rupees Rupees
===================================================================================
Total deposits-non interest bearing 15.1 119,360,449 189,308,933
Less: Current maturity 91,047,202 104,132,025
28,313,247 85,176,908
===================================================================================15.1. These represent security deposits against lease contracts and repayable / adjustable on the expiry of the lease period.16. OBLIGATION UNDER FINANCE LEASE The rate of interest used as the discounting factor is 16% (2002-18%) per annum. The amount of future payments and the period they will become due are: ===================================================================================
2003 2002
Minimum Present value Minimum Present value
lease of minimum lease of minimum
payments lease payments lease
payments payments
===================================================================================
Within one year 2,303,490 2,079,976 1,980,480 1,443,254
After one year but
not more than five years 95,030 93,781 2,431,960 2,178,819
2,398,520 2,173,757 4,412,440 3,622,073
Less: Amount representing
financial charges (224,763) - (790,367) -
2,173,757 2,173,757 3,622,073 3,622,073
Less: Shown under
current maturity 2,079,976 2,079,976 1,443,254 1,443,254
93,781 93,781 2,178,819 2,178,819
===================================================================================17. REDEEMABLE CAPITAL - NON PARTICIPATORY===================================================================================
2003 2002
Rupees Rupees
===================================================================================
Musharika-unsecured - 1,425,000
===================================================================================18. ACCRUED AND OTHER LIABILITIES===================================================================================
2003 2002
Rupees Rupees
===================================================================================
Return on secured long term finances 20,786,358 16,081,183
Return on deposits and certificates of investment 280,993 391,954
Advance from lessees 2,819,926 3,565,388
Unclaimed dividend 185,377 185,377
Unclaimed Term Deposit Receipts 600,000 600,000
Others 4,238,305 1,209,538
28,910,959 22,033,440
===================================================================================19. INCOME FROM LEASING OPERATIONS===================================================================================
2003 2002
Note Rupees Rupees
===================================================================================
Income on lease contracts 19.1 41,828,204 100,235,453
Return on advance against purchase of assets
subject to lease 694,351 582,022
42,522,555 100,817,475
===================================================================================19.1. It includes suspension of income of Rs. 1,614,308/- (2002-Reversal of Rs. 24,599,428).20. FINANCIAL CHARGES ===================================================================================
2003 2002
Rupees Rupees
===================================================================================
Return on long term finances 59,095,513 82,310,010
Profit on Musharika finance 7,838 143,793
Bank and other charges 531,669 737,624
59,635,020 83,191,427
===================================================================================21. ADMINISTRATIVE AND OPERATING EXPENSES===================================================================================
2003 2002
Note Rupees Rupees
===================================================================================
Salaries, allowances and benefits 21.1 19,633,874 18,684,222
Directors' fee 21.2 20,500 2,500
Rent, rates and taxes 2,998,506 3,131,072
Repairs and maintenance 895,198 1,788,787
Insurance 764,847 852,837
Advertisement 107,605 219,197
Expenses on issuance of bonus shares 949,006 1,224,042
Utilities 102,032 116,072
Postage and courier 1,075,694 1,679,323
Telephone and telefax 634,132 480,445
Printing, stationery and supplies 1,387,511 687,652
Fees and subscription 704,179 264,237
Travelling and conveyance 355,000 278,633
Auditor's remuneration 21.3 2,981,577 6,945,826
Legal and professional 3,164,761 3,200,527
Depreciation 112,693 112,209
Registrar services 497,020 1,156,295
General services 145,750 91,600
Business promotion 133,950 132,038
Entertainment expenses 44,100 169,366
Stamps and fees 1,157 1,232
Brokerage and commission 337,406 700,393
Other 37,046,497 41,918,505
===================================================================================21.1.21.1.1. Remuneration of Chairman, Chief Executive and Executives. The aggregate amount charged in the accounts for the year for remuneration including all benefits are as follows: ======================================================================================================
Chairman Chief Executive Executives
2003 2002 2003 2002 2003 2002
Rupees Rupees Rupees Rupees Rupees Rupees
======================================================================================================
Managerial remuneration 219,355 876,160 716,127 709,676 5,275,350 3,212,953
Bonus - 64,516 64,516 64,516 439,613 265,501
House Allowance 98,709 394,270 293,222 319,352 2,373,908 1,445,826
Utilities 21,936 87,620 71,619 70,972 527,535 321,344
Medical 27,452 64,516 43,805 52,162 243,357 170,045
Fuel 54,176 158,652 47,548 59,708 - -
Other - - - 110,000 - -
421,628 1,645,734 1,236,837 1,386,386 8,859,763 5,415,669
Number of persons 1 1 1 1 22 18
======================================================================================================During the year the chair was occupied by two persons, out of which only one received remuneration for the period of two months as disclosed above. Executives includes one full-time paid Director. The Chief Executive and 6 Executives of the company are also provided with free use of company maintained cars.21.1.2. STAFF RETIREMENT BENEFITS These include Rs 328,084 (2002: Rs.277,251) for staff retirement benefits. 21.1.3. EMPLOYEE BENEFITS It includes provision of Rs.35,780 for accumulated absences of employees which is 43% of the total liability, in accordance with circular 14 of 2000 of the Securities and Exchange Commission of Pakistan. Compensated absences amounting to Rs. 47,068,(2002: Rs. 71,560) remains unprovided for the year. 21.2. DIRECTORS' FEE This represents fee paid to 5 (2002: 5) directors for attending Board meetings of the company. 21.3. AUDITORS' REMUNERATION The charge for professional fee includes the following in respect of auditors' remuneration- ===================================================================
KMRSRIR & Co. MYAS & Co.
2003 2002 2003 2002
===================================================================
Audit fee-Annual 235,000 - - 175,000
Interim Review - - 100,000 -
Special assignments - - 10,000 83,633
Out-of-pocket expenses - - 10,000 20,000
235,000 - 120,000 278,633
===================================================================22. TAXATIONThe company's income tax assessments for and upto the tax year 2002 (accounting year ended 2001-2002) had been completed. Against the order of DCIT pertaining to the assessment years 1998-1999 to 2002-2003, appeals before the CIT(A) have been filed. The appeals are still pending, however a favourable outcome based on a legal provisions as well as facts of the case, is expected. Deferred A net deferred tax debit (assets) of Rs. 95.977 million (2002: Rs.9.198 million) arising on June 30, 2003 has not been recognized. 23. BASIC EARNING PER SHARE ===================================================================================
2003 2002
===================================================================================
Basic earning per share is worked out as under:
Loss after taxation attributable to
ordinary shareholders (Rupees) (35,571,702) (122,478,733)
Weighted average number of ordinary shares issued
and subscribed at the end of the year 16,416,222 16,416,222
Basic earnings per share (2.17) (7.46)
=================================================================================== DILUTEDNo effect of dilution has been taken into account as that would result in anti-dilution. |