Investment Bank/Investment Co: JAVED OMAR VOHRA & COMPANY LIMITED - Year Ended June 30 2004

The company is a corporate member of KSE and continued to scale new heights in profit. During the year the company posted total income at Rs 1,691.58 million as against Rs 776.90 million posted in the preceding year registering remarkable increase by 117.7% over the preceding year's capital gain on investment was major component of its total income and amounted Rs 1,277.03 million (2002-03: Rs 426.26 million) which increased by 199.6% and comprised 75% of total income. The capital gains has been derived mainly because of buoyant stock market during the year under review. But in the recent past the stock market sentiments has sobered and if that tendency persists the profit profile of the company might not be that glossy.
In this case the capital gain is the major component of income and this brings shadow over profit projections.
Javed Omar Vohra & Company Ltd was incorporated in the province of Sindh on 29 December 1992 as a public limited company and is listed on all stock exchanges in the country. 80.23% of its total 10 million shares are held by the company's directors their spouses etc. NIT and ICP held 8.67% of its stock. Its investors from general public held 8.5% of the stock.
It is listed on all the stock exchanges in Pakistan on 27th April 2004, the closing quotation of its share was recorded at Rs 317.50 per share which works out to nearly 32 times of the par value. The market value of its share has remained high during the last one year. In this period the market value of its share increased from Rs 245 to Rs 755 per share.
The company is a corporate member of the Karachi Stock Exchange (Guarantee) Ltd KSE holding room and card of KSE. The asset side shows the acquisition cost of card at 7.0 million as intangible asset. In addition an amount of Rs 3.5 million has also been booked for rooms and booths and stated as acquisition cost.
The principal activities of the company include trading and brokerage for equities, underwriting of public issues etc. The company has also acquired membership of the National Commodity Exchange Ltd.
It has been reported that the company is in the process of incorporating a wholly owned subsidiary to carry out any or all activities of a non-banking finance company in particular to undertake the business of asset management and investment advisor under the name of "JOV Investments Management Ltd" (proposed).
During the financial year ended June 30, 2004, the company generated total income at Rs 1.692 billion as against Rs 0.777 billion posted in the previous year 2002-03, showing commendable increase of Rs 915 million over previous year's. At the bottom line the net profit after taxation amount was all time high at Rs 1.607 billion (2002-03: Rs 0.736 billion).
The company has been declaring very attractive dividend since 2002. For the year under review cash dividend was similar to last year's at 250% whereas reserve for bonus shares was at 100% (2003: Rs 150%).
The aggregate dividend comes to 350% which is a bonanza but most of the enrichment is for directors as they hold overwhelming majority of the company's stock. The company holds very strong financial position; Total Assets reached Rs 4.67 billion (2002-03 Rs 1.295 billion).

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Performance Statistics                (Million Rupees)

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June 30                              2004         2003

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Share Capital-Paid-up:             100.00        40.00

Capital Reserves:                  171.50       131.50

Revenue Reserves:                1,931.28       674.55

Shareholders Equity:             2,202.78       846.05

Current Liabilities:             2,471.80       448.59

Operating Fixed Assets:              7.02         4.47

Rooms & Booths:                      3.50         3.50

Intangible Assets:                   7.00         7.00

L.T. Deposits:                       3.49         1.33

Current Assets:                  4,653.57     1,278.34

Total Assets:                    4,674.58     1,294.64

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Revenue Profit & Payout

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Brokerage Revenue:                  49.79        22.39

Dividend Income:                    78.50        39.67

Capital Gain on Investments-Net: 1,277.03       426.56

Gain Investment on Available

For Sale and:                      290.32       292.04

Income/(Cost) on Repo Transactions: (4.96)      (4.61)

Other Operating Income:              0.68         0.68

Other Income:                        0.22         0.17

Total Income:                    1,691.58       776.90

Financial Charges:                 (52.90)     (19.19)

Operating Expenses:                (32.36)     (15.93)

Reversal Provision:                  1.07            -

Profit Before Taxation:          1,607.39       741.78

Profit After Taxation:           1,606.73       735.81

Interim Dividend Cash

@ 250% (2003: 250%):              (250.00)      100.00

Reserve For Bonus Issue @ 100%

(2003: 150% @):                   (100.00)     (60.00)

Earnings Per Share (Rs):           160.67        73.58

Share Price (Rs) on 27-4-05:       317.50            -

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Financial Ratios

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Price/Earning Ratio:                 1.97            -

Book Value Per Share:              220.28       211.51

Price/Book Value Ratio:              1.44            -

Debt & Equity Ratio:                0:100        0:100

Current Ratio:                       1.88         2.85

Net Profit Margin (%):              94.98        94.71

R.O.E. (%):                         72.94        86.91

R.O.C.E. (%):                       72.94        86.97

R.O.A. (%):                         34.37        56.83

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