| Elite Capital Modaraba Ist - 2003 |
========================================================================================== BALANCE SHEET AS AT JUNE 30, 2003 ========================================================================================== 2003 2002 Note Rupees Rupees ========================================================================================== ASSETS Cash and bank 3 826,283 6,777,727 Investments 4 28,185,435 30,324,779 Trade debtors 5 1,263,582 1,293,582 Advances, deposits, prepayments and other receivable 6 8,239,833 9,283,181 Current portion of Musharika finance 7 9,273,493 6,755,120 Morabaha finances 8 19,257,275 7,045,680 67,045,901 61,480,069 Long term portion of Musharika finance 7 4,640,671 - Assets leased out 9 46,441,751 49,550,035 Assets in own use 10 859,777 779,886 51,942,199 50,329,921 118,988,100 111,809,990 LIABILITIES Creditors, accrued expenses and other liabilities 11 1,331,462 541,115 Current portion of long term security deposits 12 2,948,537 1,842,980 Management fee payable 494,740 328,665 Unclaimed profit distribution 634,137 726,301 Profit distribution 3,969,000 - Income tax payable 21 - 793,016 9,377,876 4,232,077 Long term security deposits 12 12,010,327 11,086,519 Staff retirement benefits 13 493,483 381,639 12,503,810 11,468,158 21,881,686 15,700,235 Net Assets 97,106,414 96,109,755 REPRESENTED BY Certificate capital 14 113,400,000 113,400,000 Statutory reserves 3,090,992 2,097,860 Accumulated loss (19,384,578) (19,388,105) Contingencies and Commitments 15 - - 97,106,414 96,109,755 ========================================================================================== ========================================================================================== PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2003 ========================================================================================== 2003 2002 Note Rupees Rupees ========================================================================================== REVENUE Leasing income 16 22,028,397 23,244,504 Musharika profit 83,481 - Morabahas profit 1,242,788 1,543,379 Investment income 17 2,761,187 1,996,780 Other income 18 1,248,632 142,150 27,364,485 26,926,813 EXPENDITURE Operating Expenses 19 3,955,889 3,623,989 Provision for doubtful Morabaha receivables 8 184,945 2,521,683 Amortization of assets leased out 9 17,577,086 17,154,789 Financial Charges 20 17,322 14,548 Provision for staff retirement benefits 13 111,844 87,290 21,847,086 23,402,299 PROFIT BEFORE CHARGING MANAGEMENT FEE 5,517,399 3,524,514 MODARABA COMPANY'S MANAGEMENT FEE 551,740 352,451 PROFIT FOR THE YEAR BEFORE TAXATION 4,965,659 3,172,063 TAXATION 21 - 793,016 PROFIT AVAILABLE FOR APPROPRIATION 4,965,659 2,379,047 APPROPRIATIONS: Profit distribution: 3.5% (2002: Nil) 3,969,000 - Transfer to statutory reserves 993,132 475,809 4,962,132 475,809 ACCUMULATED LOSS BROUGHT FORWARD (As Previously Reported) (19,490,981) (21,394,219) Effect of change in Accounting Policy 13 102,876 102,876 ACCUMULATED LOSS BROUGHT FORWARD RESTATED (19,388,105) (21,291,343) ACCUMULATED LOSS CARRIED TO BALANCE SHEET (19,384,578) (19,388,105) EARNING PER CERTIFICATE 22 0.44 0.21 ========================================================================================== ==========================================================================================
CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2003
==========================================================================================
2003 2002
Rupees Rupees
==========================================================================================
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation 4,965,659 3,172,063
Adjustment for:
Depreciation 113,120 108,640
Amortization on assets leased out 17,577,086 17,154,789
Provision for doubtful Morabaha receivable 184,945 2,521,683
Reversal of provision during the year (5,000) -
Provision for staff retirement benefits 111,844 87,290
(Gain)/loss on sale of investments (428,876) 39,074
(Gain) on sale of fixed assets leased out (859,066) -
Financial charges 17,322 14,548
Dividend income (1,774,676) (1,567,505)
Profit on bank deposits (557,635) (468,349)
14,379,064 17,890,170
Operating profit before working capital changes 19,344,723 21,062,233
Effect of working capital changes
(Increase)/decrease trade debtors 30,000 150,000
(Increase)/decrease advances, deposits,
prepayments and other receivable 1,043,348 2,239,635
(Increase)/decrease in Musharika financing (7,159,044) -
(Increase)/decrease in Morabaha financing (12,391,540) 3,178,624
(Increase)/decrease management fee payable 166,075 (64,374)
(Increase)/decrease unclaimed profit distribution (92,164) (3,809,699)
(Increase)/decrease creditors, accrued
and other liabilities 790,347 1,059
(17,612,978) 1,695,245
Cash generated from operations 1,731,745 22,757,478
Financial charges paid (17,322) (14,548)
Taxes paid (793,016) -
Receipt of security deposits from lessees 2,029,365 3,444,336
Net Cash inflow from operating activities(A) 2,950,772 26,187,266
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of investments (116,180) -
Sale proceeds of investments 2,684,399 250,300
Dividend income 1,774,676 1,567,505
Profit on bank deposits 557,635 468,349
Investment in Lease Finance-net (25,364,600) (28,364,018)
Sale proceeds of fixed assets leased out 11,754,864 -
Purchase of operating fixed assets-own use (193,010) (296,420)
Net cash outflow from investing activities(B) (8,902,216) (26,374,284)
CASH FLOW FROM FINANCING ACTIVITIES
Net cash inflow/outflow from
investing activities (C) - -
NET DECREASE IN CASH AND
CASH EQUIVALENTS (A+B+C) (5,951,444) (187,018)
CASH AND CASH EQUIVALENTS AT
THE BEGINNING OF THE YEAR 6,777,727 6,964,745
CASH AND CASH EQUIVALENTS AT
THE END OF THE YEAR 826,283 6,777,727
==========================================================================================NOTES TO THE ACCOUNTS FOR THE YEAR ENDED JUNE 30, 20033. CASH AND BANK ==========================================================================================
2003 2002
Rupees Rupees
==========================================================================================
Cash in hand 29,190 200,715
Cash at bank - current accounts 71,665 870,190
Savings accounts 725,428 5,706,822
826,283 6,777,727
==========================================================================================3.1. For the purpose of cash flow statement cash and cash equivalents comprise of cash and bank balances only.4. INVESTMENTS ==================================================================================
(Held for trading)
==================================================================================
2003 2002
Cost Fair value Cost Fair Value
Rupees Rupees Rupees Rupees
==================================================================================
2,585,289 (2002: 2,705,693
Shares/modaraba certificates
of listed companies 28,185,435 30,598,371 30,324,779 23,385,810
Provision for diminution in value - - - -
28,185,435 30,598,371 30,324,779 23,385,810
==================================================================================4.1. Increase in value of investments aggregating Rs.2,412,936 is not made as the management considers it a temporary phenomenon.4.2. Investment of modaraba funds in listed securities exceeds by an amount of Rs. 8.76 million (2002: Rs 11.10 million) from the maximum limit prescribed by circular No.5 dated April 20, 2000 of SECP. SECP gave relaxation to modaraba vide its letter No.SC/M-RS/Elite/2001-1080 dated October 03, 2001 to bring its investments in accordance with the said regulation, up till June 30, 2002. 4.3. These are fully paid ordinary shares/modaraba certificates of Rs.10 each unless stated otherwise. 4.4. ASSOCIATED COMPANIES - LIMITED ====================================================================================================================================
No. of shares/ Cost Fair value
Modaraba certificates
-------------------------------------------------------------------------------------------------------------------------------------
As at As at As at As at
As at As at 30-06-2003 30-06-2002 30-06-2003 30-06-2002
30-06-2003 30-06-2002 Rupees Rupees Rupees Rupees
====================================================================================================================================
Crescent Spinning Mills Limited
LISTED COMPANIES, MUTUAL FUNDS AND MODARABAS 558,028 564,028 3,819,066 3,860,106 1,674,084 4,230,210
Modarabas
First Equity Modaraba
(Managed by Premier Financial Services (Pvt) Ltd.) 11,866 11,866 104,670 104,670 154,258 92,555
First Hajveri Modaraba
(Managed by Fidelity Capital Management (Pvt) Ltd.) 2,000 2,000 24,759 24,759 5,700 3,200
First UDL Modaraba
(Managed by UDL Modaraba Management (Pvt) Ltd.) 241 241 892 892 1,410 1,097
First Crescent Modaraba
(Managed by Crescent Business Management (Pvt) Ltd. 203 203 2,383 2,383 1,888 842
First Islamic Modaraba
(Managed by Islamic Investment Bank Limited) - 10,000 - 100,000 - 17,000
Mutual Funds
National Investment Trust Ltd. 13,700 13,700 200,020 200,020 274,000 173,305
Leasing Companies
Crescent Leasing Corporation Limited 151,245 144,043 883,735 883,735 2,873,655 1,181,153
Lease Pak Limited 9,000 9,000 151,510 151,510 22,500 23,400
Pacific Leasing Company Limited 2,000 2,000 39,400 39,400 10,300 6,200
N.D.L.C 28,350 28,350 207,180 207,180 299,093 120,488
Union Leasing Limited 9,660 9,660 107,290 107,290 116,403 54,096
Pilcorp - 64,200 - 638,265 - 321,000
Dadabhoy Leasing Company Limited 1,000 1,000 9,000 9,000 1,400 1,400
Askari Leasing Ltd. 9,500 9,500 126,225 126,225 171,475 74,575
Investment Companies and Banks
Islamic Investment Bank Limited 18,796 18,796 289,680 289,680 102,438 28,194
Crescent Investment Bank Limited 58,700 61,700 574,019 596,264 1,085,950 493,600
Fidelity Investment Bank Limited - 12,000 - 96,579 - 42,000
Escort Investment Bank Limited - 500 - 5,000 - 3,875
Trust Investment Bank Limited 239,140 130,000 1,775,445 1,137,180 1,709,850 838,500
Askari Commercial Bank Limited 35,824 39,119 648,535 743,535 1,017,402 749,129
First International Investment Bank Limited 9,582 8,333 79,115 79,115 129,357 79,164
Bankers Equity Limited 2,000 2,000 26,100 26,100 - -
K.A.S.B. Bank Limited 44 5,544 280 35,975 493 29,660
Insurance
The Premier Insurance Co. of Pakistan Ltd. 56,967 56,967 324,331 324,331 874,443 256,352
Textile Spinning
Elite Textile Mills Limited 69,040 69,040 1,394,608 1,394,608 483,280 517,800
Textile Weaving
Sunrise Textiles Limited 153,900 153,900 2,023,076 2,023,076 - -
Textile Composite
Libaas Textiles Limited 127,500 127,500 1,268,380 1,268,380 414,375 414,375
The Crescent Textile Mills Limited 251,146 252,146 3,564,843 3,579,033 6,667,926 5,849,787
Jubilee Spinning & Weaving Mills Ltd. 23,000 23,000 255,280 255,280 92,000 96,600
Kohinoor Industries Limited 10,000 10,000 76,650 76,650 61,000 22,000
Sugar and Allied
JDW Sugar Mills Limited 100 47,600 1,101 467,696 2,400 309,400
Crescent Sugar Mills & Distillery Limited 205,325 205,325 3,713,796 3,713,796 2,566,563 1,745,263
Shakarganj Mills Limited 11,433 11,433 137,428 137,428 304,118 118,903
Synthetic and Rayon
Dewan Salman Fibers 8,624 8,624 254,890 254,890 151,351 119,442
Fuel and Energy
Sui Northern Gas Pipelines Limited 195,678 260,678 2,974,590 3,962,590 6,476,942 3,597,356
Sui Southern Gas Pipelines Limited 32,775 32,775 506,480 506,480 689,914 394,939
Jute
Crescent Jute Products Limited 91,122 91,122 434,712 434,712 282,478 164,020
Paper & Board
Crescent Boards Limited 107,300 107,300 820,066 820,066 429,200 386,280
Fertilizers
FFC Jordan Fertilizer Company Limited 75,500 95,500 1,038,300 1,313,300 1,015,475 601,650
Fauji Fertilizer Company Limited 5,000 5,000 327,600 327,600 435,250 227,000
Total 2,585,289 2,705,693 28,185,435 30,324,779 30,598,371 23,385,810
====================================================================================================================================5. TRADE DEBTORS - UNSECURED==========================================================================================
2003 2002
Note Rupees Rupees
==========================================================================================
Associated undertaking - Considered good 5.1 1,263,582 1,293,582
Others - Considered doubtful 71,010 71,010
Opening balance (71,010) (86,910)
Provision made during the year - -
Reversal of provision - 15,900
Closing balance (71,010) (71,010)
1,263,582 1,293,582
==========================================================================================5.1. Maximum aggregate balance due from associated undertaking at the end of any month during the year was Rs.1,263,582 (2002: Rs.1,443,582)6. ADVANCES, DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLE ==========================================================================================
2003 2002
Note Rupees Rupees
==========================================================================================
Advances to employees - unsecured, considered good
Against salary 6.1 149,227 145,027
for expenses 4,000 4,000
153,227 149,027
Advance against Investment-unsecured,
considered doubtful 6.2 366,000 366,000
Provision for doubtful receivable (366,000) (366,000)
Advance income tax 673,471 494,815
Excise duty receivable 97,500 97,500
Security deposit 20,450 20,450
Prepayments 126,927 63,550
Receivable from management company 6.3 2,459,721 4,072,221
Profit receivable 6.4 1,165,059 1,113,071
Other receivable 7,345,337 7,074,406
Provision for doubtful receivable (3,801,859) (3,801,859)
3,543,478 3,272,547
8,239,833 9,283,181
==========================================================================================6.1. Maximum aggregate balance due from employees at the end of any month was Rs. 212,227 (2002: Rs.151,927).6.2. Advance against investment amounting to Rs.366,000 (2002: Rs.366,000) has been made to M/s Crescent Trading Corporation (Pvt) Limited. 6.3. Rs.2,459,721 (2002:- Rs. 4,072,221) are receivable from Crescent Modaraba Management Company Limited. The management company is endeavoring to pay off this balance at the earliest possible time. Maximum aggregate balance due from management company at the end of any month during the year is Rs.4,072,221 (2002: Rs.5,021,831) 6.4. PROFIT RECEIVABLE ==========================================================================================
2003 2002
Rupees Rupees
==========================================================================================
Lease income receivable 3,256,040 2,047,544
Morabaha profit receivable 33,841,305 33,420,262
Musharika profit receivable 32,331 -
37,129,666 35,467,806
Provision for doubtful receivable (Suspense account)
Opening Balance (34,354,735) (33,992,725)
Amount charged to suspense
during the year (2,607,517) (1,376,242)
Amount Reversed 997,645 1,014,232
Closing Balance (35,964,607) (34,354,735)
1,165,059 1,113,071
==========================================================================================7. MUSHARIKA FINANCE==========================================================================================
2003 2002
Note Rupees Rupees
==========================================================================================
Musharika finance - secured 7.1 14,723,831 7,564,787
Provision for doubtful receivable (809,667) (809,667)
13,914,164 6,755,120
Current maturity (9,273,493) (6,755,120)
4,640,671 -
==========================================================================================7.1. This includes an amount of Rs.7,564,787 receivable against Musharika transaction on deferred payment basis at a specified profit margin from M/s Hotel Kashmir Palace. The provision of Rs.809,667 has been made against this receivable balance. These are secured against mortgage of fixed assets and demand promissory notes.The Modaraba earlier filed a winding up petition against the customer in Lahore High Court for recovery of Rs.13.599 million against which the court issued an order for payment of Rs.6.30 million and observed that the Modaraba Tribunal, Lahore might look into the balance claim of the Modaraba. The modaraba has received the said amount of Rs.6.30 million. Further, the Modaraba filed recovery suit in Modaraba Tribunal, Lahore for recovery of Rs. 11.96 million in view of the fact stated above against which decree was passed in favour of the Modaraba for Rs. 8.162 million alongwith cost of suit and profit till realisation of decretal amount after adjusting the payments received during the pendency of the proceedings. Hotel Kashmir Palace (Pvt) Limited challenged the decree of the Tribunal in Lahore High Court which was accepted by the Divisional Bench subject to the condition of payment of Rs 4.0 million (Rs 1.0 million already deposited with the court) and remanded the case to Modaraba Tribunal for rendition of account as the facility was allowed on Musharika Basis. M/s Hotel Kashmir Palace went in appeal against these orders in Supreme Court. The Supreme Court suspended the orders of High Court to the extent of payment of Rs 4.0 million. At the same time First Elite Capital Modaraba is opposing the grant of stay order and is contesting the main appeal in the Supreme Court of Pakistan. The Modaraba had made a provision in the financial statements for doubtful receivables in the previous years. 8. MORABAHA FINANCES ==========================================================================================
2003 2002
Note Rupees Rupees
==========================================================================================
Short Term Morabaha Finances-Secured 8.1 67,269,685 54,878,145
Provision for doubtful receivable:
Opening Balance 8.2 to 8.5 (47,832,465) (45,310,782)
Provision made during the year (184,945) (2,521,683)
Reversal of Provision during the year 5,000 -
Closing Balance (48,012,410) (47,832,465)
Short Term Morabaha Finances - Considered good 19,257,275 7,045,680
==========================================================================================8.1. This represents Morabaha transactions on deferred payment basis at a specified profit margin. These are secured against marketable securities, personal guarantees, mortgage of fixed assets, hypothecation of stocks and demand promissory notes.8.2. The Modaraba had filed a recovery suit with Modaraba Tribunal, Lahore against M/s Sunrise Textiles Limited for the recovery of Morabaha Finance and profit thereon amounting to Rs,22.064 millions approximately. The Modaraba Tribunal has passed the decree in favour of the Modaraba. Modaraba has filed an execution petition in the Tribunal. The execution petition was adjourned sine die by the Modaraba Tribunal. The Modaraba had also joined other financial institution to whom the company is also a defaulter for filing a case for the company's winding up at the Lahore High Court which gave the decision in favour of the financial institution. However the decision was suspended by the Supreme Court of Pakistan and the matter is pending for final decision before the Supreme Court of Pakistan. The Modaraba had made a provision in the financial statements for doubtful receivable in the previous years. 8.3. The Modaraba had filed a recovery suit with Modaraba Tribunal, Lahore against M/s Ravi Enterprises (Pvt). The Modaraba Tribunal has passed the decree in favour of the Modaraba. On the petition of one of the creditors of Ravi Enterprises (Pvt) Limited, the company went under liquidation and the Modaraba has filed its claim before Liquidators, which is still pending. 8.4. The Modaraba had filed a recovery suit with Modaraba Tribunal, Lahore against M/s Rainbow Packages Limited for the recovery of Morabaha Finance amounting to Rs. 9.213 million. The Modaraba Tribunal has passed the decree in favour of the modaraba. However, execution petition is pending before the Modaraba Tribunal. The Modaraba had made a provision in the Financial Statement for doubtful receivable against the financing in the previous years. 8.5. The Modaraba had filed four different recovery suits in Modaraba Tribunal involving an aggregate amount of Rs.47.6 million out of which three suits have been decreed. Execution petitions have been filed which are pending. These are classified under Prudential Regulations by the Modaraba and provisions have been made in the accounts against these facilities in the previous years. 9. ASSETS LEASED OUT ==========================================================================================================================
COST AMORTISATION Written
down
As at July Additions/ As at June As at July Adjustment For the As at June value as at
01, 2002 (Deletion) 30, 2003 01, 2002 for deletion Year 30, 2003 June 30, 2003
Particulars Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
==========================================================================================================================
Vehicles 43,798,773 19,551,500 51,482,773 13,740,348 (6,642,618) 10,902,105 17,999,835 33,482,938
(11,867,500) - -
Office Equipment 19,292,845 5,813,100 16,106,495 6,900,726 (5,874,634) 4,328,996 5,355,088 10,751,407
(8,999,450) - -
Machinery 10,475,100 - 4,064,000 3,375,609 (3,865,000) 2,345,985 1,856,594 2,207,406
(6,411,100)
Total - 2003 73,566,718 25,364,600 71,653,268 24,016,683 (16,382,252) 17,577,086 25,211,517 46,441,751
(27,278,050)
Total -2002 55,271,187 34,856,670 73,566,718 16,930,381 (10,068,487) 17,154,789 24,016,683 49,550,035
(16,561,139)
==========================================================================================================================9.1. Deletion during the year represents adjustments of leased assets of expired or completed lease contracts.10. ASSETS IN OWN USE ==========================================================================================================================
COST DEPRECIATION Written
down value
As at Additions/ As at As at For the As at as at
1-7-2002 (Deletion) 30-6-2003 Rate 1-7-2002 Year 30-06-2003 30-6-2003
Particulars Rupees Rupees Rupees % Rupees Rupees Rupees Rupees
==========================================================================================================================
Furniture & fittings 84,815 - 84,815 10 41,588 4,323 45,911 38,904
Vehicle 388,000 - 388,000 20 229,702 31,660 261,362 126,638
Office equipment 777,479 193,010 970,489 10 199,117 77,137 276,254 694,236
Total - 2003 1,250,294 193,010 1,443,304 470,407 113,120 583,527 859,777
Total - 2002 953,874 296,420 1,250,294 361,768 108,640 470,408 779,886
==========================================================================================================================10.1. Depreciation for the year has been allocated to operating expenses (Note 20).11. CREDITORS, ACCRUED EXPENSES AND OTHER LIABILITIES ==========================================================================================
2003 2002
Rupees Rupees
==========================================================================================
Accrued expenses 574,168 406,935
Tax deducted at source 14,857 6,200
Insurance payable 285,400 94,799
Lease rentals received in advance 14,763 15,066
Morabaha finance received in advance 268,678 -
Other payable 173,596 18,115
1,331,462 541,115
==========================================================================================12. LONG TERM SECURITY DEPOSITS==========================================================================================
2003 2002
Rupees Rupees
==========================================================================================
Security deposit of lease contracts 14,958,864 12,929,499
Current maturity (2,948,537) (1,842,980)
12,010,327 11,086,519
==========================================================================================These represents interest free security deposits received from lessees against lease contracts and are repayabledjustable at the time of expiry/termination of respective lease contract.13. STAFF RETIREMENT BENEFITS ==========================================================================================
2003 2002
Rupees Rupees
==========================================================================================
Opening balance of defined benefit
obligation as previously reported 484,515 397,225
Adjustment for change in accounting policy (102,876) -
Opening balance of defined benefit
obligation restated (A) 381,639 397,225
Charge for the year
interest cost for the year 30,531 -
Current service cost 81,313 87,290
111,844 87,290
Actuarial gains losses 25,144 -
(B) 136,988 87,290
Present Value of defined benefit
obligations as at June 30, 2003 (A+B) 518,627 -
Unrecognized actuarial gains (25,144) -
Closing balance of defined benefit obligation 493,483 484,515
==========================================================================================13.1. During the year Modaraba changed its accounting policy with respect to treatment of gratuity expense in order to conform with the requirements of IAS-19. Modaraba now recognises the liability on yearly basis as per the actuarial valuation. This change in accounting policy has been accounted for retrospectively as required by IAS 8. The comparative figure shown as liability in the accounts for 2002 has been restated as prescribed by the actual valuation carried out in current year.14. CERTIFICATE CAPITAL ==========================================================================================
2003 2002
Rupees Rupees
==========================================================================================
Authorised
20,000,000 modaraba certificates
of Rs.10 each (2002: 20,000,000) 200,000,000 200,000,000
Issued, Subscribed and Paid up
10,000,000 modaraba certificates of
Rs.10 each fully paid in cash (2002: 10,000,000) 100,000,000 100,000,000
1,340,000 modaraba certificates of
Rs.10 each issued as fully paid bonus
certificates. (2002: 1,340,000) 13,400,000 13,400,000
113,400,000 113,400,000
==========================================================================================15. CONTINGENCIES AND COMMITMENTS15.1. Securities and Exchange Commission of Pakistan has initiated proceedings against modaraba company and has given certain directions for the recovery of overdue receivables. The management is making efforts to comply with the directions. However this amount has not been recovered fully and the management company would be liable to any penalties etc. Which may be levied by SECP for continued pendency of this balance. 15.2. Investment of Modaraba funds in listed securities exceeds by an amount of R Rs.8.76 million (2002: Rs 11.10 million restated) from the maximum limit prescribed by circular No.5 dated April 20, 2000 of SECP, last year SECP gave relaxation to Modaraba vide its letter No.SC/M-RS/Elite/2001-1080 dated October 03, 2001 to bring its investments in accordance with the said regulation, up till June 30, 2002. However the modaraba still could not meet the conditions. The matter is still under consideration by SECP, therefore the possible financial impact cannot be ascertained at this stage. 16. LEASE INCOME ==========================================================================================
2003 2002
Rupees Rupees
==========================================================================================
Lease rentals 21,891,905 23,119,304
Front end fee 86,492 52,900
Arrangement fee 50,000 72,300
22,028,397 23,244,504
==========================================================================================17. INVESTMENT INCOME==========================================================================================
2003 2002
Rupees Rupees
==========================================================================================
Dividend income 1,774,676 1,567,505
Profit on bank deposit 557,635 468,349
Gain/(Loss) on sale of investments 428,876 (39,074)
2,761,187 1,996 780
==========================================================================================18. OTHER INCOME==========================================================================================
2003 2002
Rupees Rupees
==========================================================================================
Reversal of provision of doubtful receivables 5,000 15,900
Bad debt w/off in prior years recovered 5,000 29,000
Gain on sale of fixed assets - leased out 859,066 -
Termination charges and others 379,566 97,250
1,248,632 142,150
==========================================================================================19. OPERATING EXPENSES==========================================================================================
2003 2002
Note Rupees Rupees
==========================================================================================
Salaries, allowances and benefits 19.1 1,647,464 1,405,953
Rent, rates and taxes 27,057 9,733
Arrangement fee 64,948 -
Electricity, water and gas 140,050 121,312
Repair and maintenance 153,025 75,869
Printing and stationery 350,200 330,726
Communication 356,586 369,708
Traveling and conveyance 193,029 294,198
Insurance 25,927 21,998
Advertisement 28,867 60,600
Fee and subscription 295,979 173,108
Newspapers, books and periodicals 7,168 7,326
Entertainment 46,161 31,324
Auditors' remuneration 19.2 160,000 120,000
Legal and professional 216,511 80,064
Depreciation on assets in own use 10 113,119 108,640
Provision for doubtful debts and other receivable - 259,757
Other expenses 63,446 78,271
Zakat 66,352 75,402
3,955,889 3,623,989
==========================================================================================19.1. SALARIES, ALLOWANCES AND BENEFITSThe aggregate amount charged in the accounts for remuneration, including all benefits of officers and other employees of the Modaraba are as follows: ===================================================================================
Officers Other Employees
===================================================================================
2003 2002 2003 2002
Rupees Rupees Rupees Rupees
===================================================================================
Remuneration 429,981 475,200 395,008 246,693
House rent 193,491 212,400 177,122 109,320
Utilities 21,499 47,520 19,190 17,280
Medical expenses reimbursed 155,063 129,900 64,646 31,800
Leave encashment 131,048 8,696 50,186 2,485
Other benefits - - 10,230 124,659
931,082 873,716 716,382 532,237
===================================================================================
Number of employees at the end
===================================================================================
of the year 3 3 9 8
===================================================================================19.2. AUDITORS' REMUNERATION==========================================================================================
2003 2002
Rupees Rupees
==========================================================================================
Audit fee 75,000 75,000
Half yearly review 25,000 -
Code of corporate governance 15,000 -
Tax representation charges 45,000 45,000
160,000 120,000
==========================================================================================20. FINANCIAL CHARGES==========================================================================================
2003 2002
Rupees Rupees
==========================================================================================
Bank charges 17,322 14,548
17,322 14,548
==========================================================================================21. TAXATION==========================================================================================
2003 2002
Rupees Rupees
==========================================================================================
Current year - 793,016
- 793,016
==========================================================================================21.1. Tax assessment have been finalised up to assessment year 1999-2000.22. EARNING PER CERTIFICATE ==========================================================================================
2003 2002
Rupees Rupees
==========================================================================================
Profit after taxation 4,965,659 2,379,047
Weighted average number of outstanding certificates 11,340,000 11,340,000
Earning per certificate-Basic 0.44 0.21
==========================================================================================22.1. There is no dilutive effect on basic earnings per share. |