It is a public limited company incorporated in Lahore having its registered office located at 2nd Floor, LDA Plaza Egerton Road Lahore-54000. Its principal office is located at New Jubilee Insurance House I.I. Chundrigar Road Karachi. Union Leasing Ltd's core business is leasing movable assets and its 92% earnings come from leasing business. The other source of its income is investments, Morabaha finances and fund placements.
The investment portfolio comprises govt securities, term finance certificates. The company was listed on Karachi Stock Exchange in 1994. On 24th May 2005 the price of Union Leasing share was quoted at Rs 12.10 for closing transaction. This price carried 21% premium over the par value of Rs 10 per share. During the last one year the market value of the share peaked at Rs 20.50.
The Pakistan Credit Rating Agency Limited (PACRA) has upgraded the long term credit rating of Union Leasing Ltd, to 'A+' (Single A plus) and has maintained the short term rating at 'A1' (Single A one). The secured Term Finance Certificates (TFCs) issue of Rs 357.07 million due for redemption in April 2005 has been assigned a short term rating of A1+ (Single A one plus).
The entity rating denotes a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments and are applicable to senior unsecured creditors of the company.
The financial position of the company remained robust as evidence from long term debt to equity and current ratios. The company scaled new height in total assets reached Rs 4.662 billion which shot up from Rs 3.837 billion by Rs 825 million which is quite impressive.
During nine months ended March 2005 (9M 2004-05) the company generated total income at Rs 271.17 million as against Rs 280.96 million posted in the same period last year (SPLY) showing marginal decline by 3.5%. Income from leasing operations was lower by Rs 2.26 million. Total Expenses & Provisions registered steep rise. Profit after taxation declined by Rs 6.32 million to Rs 53.58 million.
The intense competition exerted on the lending rates. The L.T. lease portfolio of the company expanded by Rs 536 million to Rs 2.492 billion on 31st March 2005 from Rs 1.955 billion on June 30, 2004. 735 new leases amounting to Rs 1.68 billion were written.
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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March 31 June 30
2005 2004
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Share Capital-Paid-up: 355.76 301.77
Reserves: 155.89 162.66
Shareholders Equity: 511.65 464.43
(Deficit) on Revaluation
Available for Securities: (0.24) (1.56)
L.T. Debts: 503.14 479.08
L.T. Deposits: 714.29 393.21
L.T. Certificates & Investments: 1,014.26 1,206.78
Deferred Liabilities: 95.45 90.20
Current Liabilities: 1,823.24 1,204.95
Fixed Assets Tangible: 25.12 24.81
Net Investments in
Lease Finances: 2,491.64 1,955.62
Held to Maturity Investments: 264.04 268.38
L.T. Loans: 17.46 14.54
L.T. Deposits & Deferred Costs: 2.02 2.44
Current Assets: 1,861.51 1,571.30
Total Assets: 4,661.79 3,837.09
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Profit & Loss A/c for Nine Months Ended
March 31 2005 2004
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Income from Lease Operations: 248.06 250.32
Government Securities &
Term Finance Certificates: 15.57 15.72
Morabaha Finances & Fund Placements: 2.97 3.28
Other Income: 4.57 11.64
Gross Income: 271.17 280.96
Total Expenses & Provisions: (208.09) (194.76)
Profit Before Taxation: 63.08 86.20
Profit After Taxation: 53.58 59.90
Earnings Per Share (Rs): 1.54 2.19
Share Price (Rs) on 24/05/05: 12.10 -
Price/Earnings Ratio: 7.86 -
Book Value Per Share (Rs): 14.38 15.39
Debt/Equity Ratio: 50:50 51:49
Current Ratio: 1.02 1.30
Lease Income/Total Income (%): 91.48 89.09
Net Profit/Total Income (%): 19.76 21.32
R.O.E. (%): 10.47 12.90
R.O.A. (%): 1.15 1.56
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COMPANY INFORMATION: Chairman: Akbar Ali Chugtai; Chief Executive: Shahzad Enver Murad; Company Secretary: Muhammad Murtaza Ali; Registered Office/Lahore Branch: 2nd Floor, LDA Plaza, Egerton Road Lahore-54000; Web Address: Not Reported; Principal Office & Karachi Branch; 6th Floor, New Jubilee Insurance House I.I. Chundrigar Road Karachi 74000.
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