Leasing Companies: NATOVER LEASE & REFINANCE LIMITED - Nine Months Ended March 31 2004

It was incorporated in the province of Sindh on December 20, 1984 as a private limited company and was converted into public limited company on September 25, 1988. It is listed on the Karachi & Islamabad Stock Exchanges and is classified Non Banking Finance Company (NBFC).
The principal business of the company is leasing, and as a full range lessor its product portfolio includes finance lease, hire purchase and cancellable operating lease of all permissible assets. Its ancillary business includes trading in fixed income securities and other financial services.
Its paid up capital at Rs 202.50 millions has remained constant and it comprises preference share capital at Rs 150 millions and ordinary share capital at Rs 52.5 millions.
In the last Annual Report (year ended June 30, 2003) stated that the company had initiated the process to increase its authorised capital from Rs 400 millions to Rs 700 millions and paid-up capital from existing Rs 202.50 millions to Rs 500 millions. This would give ample financial space to expand its business activities.
The Q3 (2003-2004) report presents also 9 months report. During this period the company's gross revenue substantially declined by 7.7% to Rs 42.96 millions from Rs 46.52 millions posted during the same period last year (SPLY).
However rental income at Rs 16.19 mln (9M 2002-03: Rs 13.92 mln) and hire purchase & modaraba income at Rs 16.41 mln (9M 2002-03: Rs 12.78 mln) showed increase by 16.31% and 28.4% respectively over SPLY.
The main decline was "other" income from Rs 19.82 mln to Rs 10.37 mln. This income mostly comprised Ancillary Financial Services Income.
The Q3 report does not include the break-up figures of the account from last year's annual report we see that this ancillary income constituted mostly gain on sale of securities and placement mark-up profit income etc.
On the expenses operating expenses decline by Rs 6.01 mln and financial charges reduced by Rs 2.96 mln. But administrative charges shot-up by Rs 4.4 mln. Chairman Syed Zahid Hasan seems to be satisfied with this increase. He argued, "due to the expansion of business the administrative expenses have increased".
Nevertheless, the company's pre-tax profit at Rs 18.25 mln showed increase by Rs 0.97 mln from Rs 17.28 mln.

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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:             202.50       202.50

(Ordinary + Preference Shares)

 Reserves:                          11.20        11.20

Accumulated (Loss):                (11.75)     (15.26)

Shareholders Equity:               201.95       198.44

CoI's & SPN's:                       0.03         0.03

L.T Debts:                          12.12        10.39

Deferred Liabilities:                1.22         1.22

Security Deposits:                  16.22         9.49

Advance Against Shares/

 Subscription-Cum-Financing:       106.00        33.22

Current Liabilities:                63.95       100.11

Operating Fixed Assets:             99.06        90.64

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Investments in Leases

 Hire Purchase & Morabaha

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Financing Finance:                  69.97        57.32

Deferred Taxation:                  12.70        12.70

L.T Investments:                    58.15         1.89

L.T Deposits & Prepayments:          1.08         1.29

Current Assets:                    160.53       189.06

Total Assets:                      401.49       352.90

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Profit & Loss A/c For the

 Nine Months Ended          March 31 2004         2003

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Revenue Rental Income:              16.19        13.92

Hire Purchase & Modaraba Income:    16.41        12.78

Other Income:                       10.37        19.82

Gross Revenue:                      42.96        46.52

Total Expenses:                    (24.71)     (29.24)

Profit Before Taxation:             18.25        17.28

Profit After Taxation:              18.00        17.03

Provision For Preference

 Dividend:                         (10.00)     (14.00)

Earnings Per Share (Rs):             0.67         0.58

Share Price (Rs) Dated 16.08.2004:  10.25            -

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Financial Ratios

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Price/Earning Ratio:                15.30            -

Debt/Equity Ratio:                  38:62         5:95

Current Ratio:                       2.51         1.89

Lease Income/Total Profit (%):      37.68         29.9

Net Profit/Total Income (%):        41.90        36.60

R.O.A (%):                           4.48         4.82

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