The organisation is a public limited company and was incorporated in July 1993. Its registered office as well as head office are situated at Ibrahim Centre 1, Ahmed Block, New Garden Town Lahore. Its shares are quoted on all stock exchanges of the country.
At present the share is trading at Rs 13.50 carrying 35% premium over the par value of Rs 10. During the last one year market value of the share appreciated substantially by 60% to Rs 16 from Rs 10 per share.
The company is a one of the constituent members of large conglomerate Ibrahim Group of Companies. The company is mainly engaged in the business of leasing and the mainstay of this business is resource mobilisation.
In the last half yearly report the directors of the company had assured that the company had made comfortable arrangements with banks for different credit lines at favourable rates to meet the funding requirements and further negotiations were also underway to meet any additional requirements.
The comparison of the Half Yearly Report with the Nine Monthly Report does not show any significant increase in borrowings ie redeemable capital or short term borrowings.
However there is significant increase in current portion of liabilities which possibly may not be bank borrowings. Hence comfortable arrangement of further credit lines is not evident.
On the asset side the company made disbursement of aggregate amount of Rs 372.83 million during the nine months under review.
In this case the management claims that to maintain high quality lease portfolio, the management is exercising extreme care in selecting the clients having high credibility. It further emphasised that the recovery of lease rentals during the period under review remained satisfactory.
The company's lease income/total income percentage also declined significantly. The profit was on the lower side. So rate of ROA was further down. On the other hand the financial health of the company is robust as evident from liquidity and solvency ratios.
Performance Statistics (millions Rs)
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Performance Statistics (Million Rupees)
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Balance Sheet -As At-
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March 31 June 30
2004 2003
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Share Capital-Paid-up: 251.35 228.50
Reserves & Profit: 129.55 125.41
Shareholders Equity: 380.90 353.91
Redeemable Capital: 138.73 98.56
L T Security Deposits: 90.90 67.15
Deferred Liabilities-Gratuity: 5.29 5.38
Current Liabilities: 183.64 83.80
Fixed Capital Expenditure: 2.97 2.40
Net Investment In Finance Lease: 491.38 355.90
L T Investments: 49.24 55.46
L T Loans & Advances: - 6.07
L T Deposits & Deferred Costs: 1.43 1.63
Current Assets: 254.44 187.34
Total Assets: 799.46 608.80
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Profit & Loss A/c
For Nine Months Ended March 31 2004 2003
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Revenues
Lease Income: 46.10 52.50
Income From Morabaha: 0.04 0.04
Income From Bank Deposits: 0.07 0.03
Dividend Income: 0.28 0.17
Gain on Sale of Listed Securities: 1.14 -
Gross Revenue: 47.63 52.44
Total (Expenditure & Provisions): (19.77) (25.18)
Profit Before Taxation: 27.86 27.26
Profit After Taxation: 27.00 26.59
Earning Per Share (Rs): 1.07 1.16
Share Price (Rs) Dated 24-6-04: 13.50 -
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Financial Ratios
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Price/Earning Ratio: 12.62 -
Debt to Equity Ratio: 27:73 22:78
Book Value Per Share (Rs): 15.15 15.49
Current Ratio: 1.39 2.23
Lease Income/Total Profit (%): 96.78 99.54
Net Profit/Total Income (%): 56.69 50.70
R.O.E: 7.09 7.51
R.O.A (%): 3.38 4.36
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COMPANY INFORMATION: Chief Executive Officer: Abdul Aziz Khan; Director: Mohammad Naeem Mukhtar; Secretary: Anwarul Haque FCA; Registered Office/Head Office: Ibrahim Centre, 1. Ahmed Block, New Garden Town Lahore.
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