Investment Banks/Investment Co: JAHANGIR SIDDIQUI INVESTMENT BANK LIMITED - Year Ended 30-06-2004
The vision of the leadership in the company is to transform this institution into a diversified financial super market catering to the needs of a broad array of clients. They also envision to maintain their market dominance and superior leadership. The company has taken its direction to realise the vision, the enrichment of the stakeholders has started. Gross income and net profit have scaled new heights.
Profit distribution is record highest @115% (15% cash plus 100% dividend bonus stock). Total assets increased to Rs 3.501 billion by Rs 425.4 million and certificates of deposit was posted at Rs 996.06 million which increased by Rs 652.21 million over the corresponding figures of last year.
The report explains the strategic investment decisions to avail opportunity created by the bullish trend in the money market. They capitalised through trading in Pakistan Investment Bonds, where investments of relatively higher magnitude was made in view of medium to long term trading potential.
Jahangir Siddiqui Investment Bank Ltd (JSIBL) is a public limited company incorporated in Pakistan and is quoted on Karachi Stock Exchange. JSIBL is licensed to carry out business of investment finance services as a Non-Banking Finance Company (NBFC) under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 issued by Securities & Exchange Commission of Pakistan (SECP).
The registered office of the company is situated at Room No 1301-1303, 13th Floor Chapal Plaza, Hasrat Mohani Road Karachi. The company is a subsidiary of Jahangir Siddiqui & Company Ltd during the year under review, membership card of Islamabad Stock Exchange is acquired by the company. The amount of Rs 11.01 million posted as a non current asset, represents this membership.
The majority shareholding of the company (62.4%) is with its parent company. NBP/NIT hold 10.05% stock of the company on 7th February 2005, the price of its share closed at Rs 38.80 per share which is four times of the par value. In line with the rising stock market index and due to strong financial strength of the company the highest price of its share reached Rs 174.20 per 10-rupee share during the last one year.
JSIBL offers a wide range of products to cater to the varied needs of its clients. The company offers attractive returns on its registered COD scheme. Investors can invest in COD for periods suitable to their requirements from one month to five years.
JSIBL provides short-term margin finance and term finance at competitive mark-up rates.
Corporate Finance: The company assists clients in raising capital through securities under writing, private placements and loan syndication. JSIBL also provides financial services such as acquisition and financial restructuring etc.
The company also assists retail investors in timely execution of their trades at stock exchange. During the year under review the company produced outstanding operating and financial results.
Its gross income increased by 61.05% to Rs 559.36 million from Rs 347.31 million posted in the preceding year. Tempo of growth in all areas of business accelerated. The company achieved high growth of 132% at Rs 393.46 million over preceding year's income of Rs 169.53 million from capital gains on disposal of investments/reverse repurchase transactions.
The other major profit centre was income from investments/reverse repurchase transactions in the sum of Rs 126.63 million which was almost identical to last year's. The company posted net profit after taxes at Rs 440.70 million (2002-03: Rs 209.53 million).
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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June 30
2004 2003
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Share Capital-Paid-up: 227.50 227.50
Reserves & Surplus: 720.08 313.50
Shareholders Equity: 947.58 541.00
Surplus on Reval. of Investments: 143.33 390.24
Deferred Taxation: - 8.92
Current Liabilities: 2,410.83 2,136.21
Fixed Assets-Tangible: 11.45 6.41
Stock Exchange Membership Card: 11.10 -
L T Deposits: 2.68 1.33
L T Loans & Term Finances: 20.43 9.56
L T Investments: 351.44 416.26
Deferred Taxation: 2.03 -
Current Assets: 3,102.61 2,642.81
Total Assets: 3,501.74 3,076.37
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Revenue, Profit & Pay Out
Income
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Income from Investments/ Reverse
Repurchase Transaction: 126.63 125.68
Return on Fund Placements & with
Financial Institutions: 12.24 12.28
Capital Gains: 393.46 169.53
Mark-up on Loans on Term Finances: 8.30 29.83
Consulting & Corporate
Advisory Fees: 6.06 1.39
Commission & Fees: 8.07 3.12
Other Income: 4.60 5.48
Total Income: 559.36 347.31
Expenditure
(Return) Certificate of Deposits: (24.11) (25.63)
(Mark-up) on S T Running Finances: (0.65) (1.79)
(Mark-up) on Borrowings
from Banks/NBFCs: (27.50) (53.59)
(Provisions) for Non
-Performing Loans: 0.17 -
(Administrative)
& Operating Expenses: (59.61) (37.24)
Total (Expenditure): (111.71) (118.25)
Profit Before Taxation: 447.65 229.06
Profit After Taxation: 440.70 209.53
Dividend Cash 15% (2000: 12.5%): (34.13) (28.44)
Reserves for Bonus Issue: 227.50 -
Earning Per Share (Rs): 19.37 9.21
Share Price (Rs) on 07/02/05: 38.80 -
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Financial Ratios:
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Price/Earning Ratio: 2.00 -
Book Value Per Share: 41.65 23.78
Price/Book Value Ratio: 0.93 -
Current Ratio: 1.29 1.24
Net Profit Margin (%): 78.79 60.39
R O A (%): 12.59 6.81
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COMPANY INFORMATION: Chairman: Mazharul Haq Siddiqui; Chief Executive Officer & Company Secretary: Muhammad Yousuf Amanullah; Registered Office: 1301-1303 13th Floor, Chapal Plaza, Hasrat Mohani Road Karachi. Web Address: Not Reported.
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