Leasing Companies: SECURITY LEASING CORPORATION LIMITED - Nine Months Ended March 31 2004

The organisation is a public limited company. It was incorporated in the province of Sindh on December 6, 1993. It commenced its operation on May 21, 1995. Its registered office and share registrar office are situated at B901/902, Lakson Square No. 3 Sarwar Shaheed Road Saddar Karachi 74200.
The company is primarily engaged in the business of leasing and is listed at Karachi Stock Exchange. The closing market price of Security Leasing Share ratio was quoted on 28-6-04 at Rs 15.50 per share. The share carries 55% premium over the par value of Rs 10 per share. During the last one year the price of the share increased from below par value at Rs 7/75 to Rs 15.50 per share.
JCR-VIS Credit Rating Company Ltd upgraded its long term rating to A (Single A) and maintained the short term rating of A1 (Single A One). The outlook is stable. These ratings show strength and achievements of the company in the prevailing economic climate. The directors have given assurance to the members that every effort is being made to further improve these ratings.
The company has continued to maintain its growth in the period under review. As compared to 30th June 2003, its total assets increased to Rs 2095.10 million from Rs 1469.88 and the net investment in leases increased to Rs 1,386.9 million from Rs 1,107.5 million. The revenue amounted to Rs 155.61 million including income from leasing operation at Rs 93.07 million.
The profit after tax was Rs 36.06 million compared to Rs 11.3 million in the previous corresponding period. The annualised basic earning per share has been projected to Rs 3.64 million.
Since beginning of the year, the company also enhanced its equity base through the issue of new preference shares - class A, amounting to Rs 150 million. The subscription was completed in October 8, 2003. With the issue of these preference shares, the existing preference shares class 1 were fully redeemed. The enhanced equity would increase the operational and borrowing capacity of the company.

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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:             250.00       150.00

Reserves & Profit:                  94.11        65.96

Shareholders Equity:               344.11       215.96

Borrowings From Financial

 Institutions:                     665.62       135.00

Obligation Under Finance Lease:      1.98         3.01

Redeemable Capital-Secured:           -         469.27

Musharika Finance:                   0.45            -

L.T Deposits:                      286.66       190.53

Deferred Liability:                  4.17         3.18

Current Liabilities:               792.11       452.93

Fixed Assets Tangible:              59.21        36.03

Net Investment Leases:             857.98       675.17

L.T Deposits:                        1.12         1.05

Deferred Costs:                      5.41         7.45

Current Assets:                  1,171.38       750.18

Total Assets:                    2,095.10     1,469.88

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Profit & Loss A/c

 For Nine Months Ended      March 31 2004         2003

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Revenues

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Lease Income:                       93.07        88.79

Other Income:                       62.54        15.60

Gross Revenue:                     155.61       104.39

Total (Expenditure & Provisions): (117.76)       83.26

Profit Before Taxation:             37.85        21.13

Profit After Taxation:              36.06        19.85

Earnings Per Share (Rs):             3.64         1.99

Annualised Share

 Price (Rs) on 28.06.2004:          15.50            -

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Financial Ratios

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Price/Earning Ratio:                 4.26            -

Book Value Per Share:               13.76        14.40

Lease Income/Total Profit (%):      59.81        85.06

Net Profit/Total Income (%):        23.17        19.01

R.O.E:                              10.48         9.19

R.O.A (%):                           1.72         1.35

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