Investments Banks/Investment Co: SAUDI PAK LEASING COMPANY LIMITED - Half Year Ended December 31, 2003

This leasing company is incorporated in Pakistan and is listed on all the stock exchanges in Pakistan. The registered office of the company is 6th Floor, Lakson Square Building No 1 Sarwar Shaheed Road Saddar Karachi. The main business activity of the company is leasing of assets.
Despite tough competition from commercial banks and development financial institutions Saudi Pak Leasing Company performed better in the first six months of 2003-04 (HY 2003-04) as compared to the corresponding period of the previous year.
The amount of lease financing rose to Rs 768 million from Rs 396 million, the period July 01-December 31, 2003. Net investment in leases stood at Rs 2,186 million on Dec 31, 2003 as compared to Rs 1,786 million on December 31, 2002 showing an increase of 22 percent.
However, on the profitability side, it can be seen from the Performance Statistics that Gross Income, lease income and income from investments were on the lower side.
The management emphasized that this was attributable mainly to the lower yield on new lease because of generally declining rentals in the leasing industry.
But the control on administrative expenses and substantial fall in financial expenses turned the table by substantially improving profit as compared to the SPLY.
As a result net profit zoomed to Rs 17.40 million from Rs 2.09 million in the corresponding period of last year.
The chairman of the company gives optimistic outlook for the year 2003-04. His projections are that the company would be able to achieve higher growth in business volume in the second half of current fiscal year in the backdrop of improved economic and business environment.

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Performance Statistics                (Million Rupees)

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Balance Sheet                                  -As At-

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                              December 31      June 30

                                     2003         2003

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Share Capital-Paid-up:             220.00       220.00

Reserves & Profit:                  98.74        81.33

Shareholders Equity:               318.74       301.33

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Surplus on Revaluation of

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Sale of Investments:                10.02        10.11

L.T. Debts:                        339.45       484.21

L.T. Certificates of Investment:   441.75       499.94

L.T. Deposits:                     344.54       296.91

Deferred Liabilities:               47.91        47.02

Current Liabilities:             1,641.41     1,183.44

Fixed Assets:                       41.17        37.45

Net Investments in Lease Finance: 1302.74     1,159.29

L.T. Loans:                          0.13         0.16

Current Assets:                  1,799.78     1,626.06

Total Assets:                    3,143.82     2,822.96

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Profit & Loss A/c For the Half

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Year Ended December 31               2003         2002

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Revenue

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Lease Income:                      103.16       103.02

Income From Investments:            31.58        57.40

Unrealized Gain in the M/V

 of Investment:                       -           1.88

Other Income:                        1.84         2.37

Gross Revenue:                     136.58       164.67

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Expenditure & Provisions

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Financial & Other (Charges):       (73.80)      127.32

Admin & Operating (Expenses):      (21.01)     (24.42)

Direct (Cost) of Operating Leases:  (1.91)      (1.93)

(Provision)/Reversal For Potential

 Lease Losses:                     (19.35)        1.50

Total (Expenditure & Provisions):  116.08       152.17

Profit Before Taxation:             20.50        12.50

Profit After Taxation:              17.40         2.09

Earning Per Share (Rs):              0.79         0.10

Share Price (Rs) Dated 13.04.2004:  11.20            -

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Financial Ratios

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Price/Earning Ratio:                 1.42            -

Book Value Per Share (Rs):          14.49        13.69

Debt/Equity Ratio:                  51:49        61:39

Current Ratio:                       1.10         1.37

Lease Income/Total Profit (%):      75.53        62.56

Net Profit/Total Income (%):        12.74         1.27

R.O.E:                               5.46         0.69

R.O.A. (%):                          0.55         0.07

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