Leasing Companies: SIGMA LEASING CORPORATION LIMITED - Half Year Ended December 31, 2003

16 Apr, 2004

The company was incorporated in Pakistan on 11 April 1996 as a public limited company and received certificate of commencement of Business on 27 January 1997. The company is principally engaged in the business of leasing and was listed on the Karachi Stock Exchange on 7 January 1997.
At present the share in the company is trading at Rs 18 carrying 80% premium over the par value of Rs 10. As of June 30, 2003 JCR-VIS Credit Rating Company revised upward the last year company's outlook to 'Positive' and again certified the risk management efforts of the company through its medium to long term entity rating of BBB+ (Triple B plus) and short term entity rating of A2 (A Two).
During the half year ended December 31, 2003 (HY 2003-04) the company's gross income improved to Rs 44.42 million by 27.17% from Rs 34.93 million posted in the same period last year (SPLY).
Lease income was almost identical to the SPLY as it was recorded at Rs 29.79 million as compared to Rs 28.68 million posted in the preceding financial year's corresponding period. However lease income ratio vis-à-vis total income fell to 67.06% from 82.10% of SPLY.
The company's total fresh disbursement in six months under review is 266.50 as against Rs 164.46 million of the SPLY which increased the net investment in leases by 25% from Rs 502 million to Rs 630 million.
Total revenue amounted to Rs 44.42 million with operating financial expenses of Rs 18.6 million resulting in a pretax profit of Rs 25.80 million during the period under review.
This is a record profit in the company's half yearly results. The assets of the company now crossed Rs 850 million and eyes are set on Rs one billion horizon.

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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: 200.00 200.00
Reserves: 49.46 26.56
Shareholders Equity: 249.46 226.56
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Surplus on Revaluation of
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Fixed Assets: 17.67 17.67
L.T. Debts: 150.51 50.66
Certificate of Investment: 81.49 86.89
Deposits: 79.58 68.28
Deferred Taxation: 32.79 32.79
Current Liabilities: 243.45 153.38
Fixed Assets: 35.76 36.30
Net Investments in Lease Finance: 388.61 288.03
Deferred Cost: 19.75 22.75
Current Assets: 410.83 289.15
Total Assets: 854.95 636.23
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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: 29.79 28.68
Mark-up on Deposits/Placements/
Musharaka Arrangements: 0.71 1.11
Other Income: 13.92 5.14
Gross Revenue: 44.42 34.93
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Expenditure & Provision
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Financial (Charges): (9.49) (12.65)
Admin & Operating (Expenses): (6.10) (5.66)
(Amortisation) of Deferred Cost: (3.00) (2.75)
Provision for Potential Lease Losses: - (0.39)
Total (Expenditure & Provisions): (18.59) (21.45)
Profit Before Taxation: 25.83 13.48
Profit After Taxation: 25.06 12.86
Earning Per Share (Rs): 1.25 0.66
Share Price (Rs) Dated 13.04.2004: 18.00 -
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Financial Ratios
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Price/Earning Ratio: 14.40 -
Book Value Per Share (Rs): 12.47 11.33
Debt/Equity Ratio: 36:64 17:83
Current Ratio: 1.69 1.88
Lease Income/Total Profit (%): 67.06 82.10
Net Profit/Total Income (%): 56.42 36.81
R.O.E: 10.04 5.68
R.O.A. (%): 2.93 2.02
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COMPANY INFORMATION: Chairman: Asif Ali Rashid; Chief Executive & Managing Director: Muhammad Nasim Khan; Company Secretary, Director & Chief Financial Officer: Arfan Ali Rashid; Registered Office & Head Office: Sigma House 8-C, Block-6 PECHS, Karachi.

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