It is a public limited company incorporated in Pakistan and is primarily engaged in the business of lease finance. It is listed on the stock exchange in Pakistan and at present its 10-rupee share is being quoted at Rs 8.30 at 17% discount. During the last 52 weeks market value of the share ranged between Rs 6.30 and Rs 11 per share.
During the half year ended December 31, 2006 (HYD 06-07) 77 lease contracts were written for which Rs 204.50 million disbursed as compared to 69 lease contracts for Rs 326.56 million in the same period last year (SPLY).
Net Investment in lease as on December 30, 2006 amounted to Rs 1.475 billion as compared to six months earlier on June 30, 2006, at Rs 1.485 billion.
The directors pointed out that they are facing though competition in the financial market, particularly in the leasing sector due to Commercial Banks. However, they emphasized that they succeeded in getting their share at a reasonable rate of return. Although the net investment in lease were slight lower but the operating results improved.
Income from lease operations for the period under review were higher at Rs 77.47 million as compared to Rs 69.83 million posted in SPLY. About 97% of the revenue came from the lease operations.
Gross revenue amounted to Rs 79.9 million and total expenditure was in the sum of Rs 63.2 million leasing Rs 16.7 million for pretax profit which was marginally higher than Rs 16 million in SPLY.
Its credit rating JCR-VIS has assigned the company medium to long term entity rating of BBB+ and short term rating at A2. The outlook on the entity was considered "Stable".
The directors are hopeful for improvement in revised rating which is in process.
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Performance Statistics (Mln Rs)
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Balance Sheet ----As At---- December 31 June 30
2006 2006
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Un-audited Audited
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Share Capital Paid-up: 200.00 200.00
Reserves: 64.94 53.00
Shareholders Equity: 264.94 253.00
L.T. Debts: 317.51 358.39
Deferred Taxation: 51.80 48.36
Security Deposits: 288.86 281.26
Certificates of Investment: 58.50 58.50
Deferred Liabilities: 1.81 1.63
Current Liabilities: 532.48 554.53
Tangible Fixed Assets: 30.40 30.53
L.T. Loan & Advances: 0.60 0.75
Net Investment in Finance Leases: 874.65 908.65
L.T. Investments: 10.00 10.00
L.T. Security Deposits: 0.67 0.58
Current Assets: 599.58 605.16
Total Assets: 1,515.90 1,555.67
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Profit & Loss A/c for Half Year Ended
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----December 31---- 2006 2005
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Income from Lease Financing: 77.47 69.83
Other Income: 2.45 3.34
Total Income: 79.92 73.17
Admin & Operating (Expenses): (12.86) (11.47)
Finance & Other (Charges): (50.65) (45.97)
(Provision) for Doubtful
Receivables: 0.30 0.27
Total (Expenditure): (63.21) (57.17)
Profit Before Taxation: 16.71 16.00
Profit After Taxation: 11.93 10.57
Earning Per Share (Rs): 0.60 0.53
Share Price (Rs) on 25/06/2007: 8.30 -
Price/Earning Ratio: 13.17 -
Debt/Equity Ratio: 55:45 59:41
Current Ratio: 1.13 1.09
Lease/Total Income Ratio (%): 96.93 95.44
Net Profit/Total Income Ratio (%): 14.93 14.45
R.O.A. (%): 0.79 0.68
R.O.E. (%): 4.50 4.18
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COMPANY INFORMATION: Chairman: Paul Douglas Gray; Vice Chairman: Khawar Anwar Khwaja; Chief Executive: Abdul Rashid Mir; Director: Muhammad Tahir Butt; Company Secretary/Chief Financial Officer: Atif Bin Arshad; Registered Office & Head Office: 7th Floor, City Towers, Main Boulevard Gulberg II Lahore; Website URL: not reported.
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