Al-Zamin Leasing Modaraba was formed in 1991 and commenced its operation in August 1992 with a paid up capital of Rs 100 million. It was listed on the Karachi, Lahore and Islamabad Stock Exchanges in July 1992 through a public offer which was oversubscribed seven times.
It is multi-purpose modaraba allowed to undertake various business transactions under Islamic modes of financing. The principal business of the modaraba is financing under leasing arrangements. The Modaraba's principal place of business is Clifton Karachi having its zonal offices at Karachi, Lahore, Faisalabad, Islamabad and Peshawar and branch at Abbotabad, Sahiwal, Sargodha, Sheikhupura.
JCR VIS the prominent credit rating agency has assigned a rating of "A-" (Single A Minus) to the Modaraba's TFC issue.
The Al-Zamin's Term Finance Certificates are a five-year redeemable bonds based on the implementation of the principles of profit and loss sharing under the concept of Musharaka.
First-Tranche of TFC issue of Rs 250 million with a Green Shoe Option of Rs 50 million.
Total Rs 300 million was issued by Al-Zamin Modaraba in December, 2003 which was heavily oversubscribed.
The second tranche was issued in May 2005 and the amount is Rs 325 million including green shoe option of Rs 50 million.
According to the press release dated 22-06-2005, appeared in Daily Business Recorder, this TFC has been substantially oversubscribed. Therefore it has been decided by the Modaraba to exercise the green shoe option in full.
During 9M 2004-05, the period under review, the size of its balance sheet registered impressive increase of 46%, fresh leases of Rs 782 million were disbursed. Net Investment in Lease finance stood at Rs 1663 million registering growth of 29%.
The total revenue of the Modaraba increased to Rs 138.8 million (9m 2003-04: Rs 128.9 million) showing 7.7% increase.
Operating Expenses (Rs 33.16 million) and financial charges Rs 72.04 million were on the higher side.
Profit after taxation and management fee works out to Rs 19.91 million (9m 2003-04: Rs 16.67 million) registering 19.4% growth.
With its progressive outlook, relatively extended network of offices, loyal customer base and entrenched presence in the financial market it is visualised that the Modaraba will scale new heights.
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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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Certificate Capital Paid-up: 254.72 254.72
Reserves & Profit: 85.74 65.83
Certificate Holders' Equity: 340.46 320.55
Certificates of Musharaka: 36.48 -
Musharaka TFC
- Redeemable Capital: 300.00 300.00
Other LT Debts: 213.62 282.53
LT Portion of Security
Deposits from Leases: 431.07 335.97
Current Liabilities: 850.63 484.38
Assets - Own use: 22.38 16.33
Assets Leased Out: 17.14 31.93
Investments-Held to Maturity: 76.56 83.51
LT Portion of Net Investment
In Lease Finance: 1,083.04 852.85
LT Musharaka Finances: 20.84 41.34
LT Deposits: 2.57 1.21
Deferred Cost - on
Issuance of Musharaka TFC: 4.40 5.25
Current Assets: 945.33 691.01
TOTAL ASSETS: 2,172.26 1,723.43
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Profit & Loss A/c for Nine Months Ended
March 31 2005 2004
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Income from Leasing Operation: 114.09 107.31
Profit on Musharaka Investments: 11.82 15.45
Income on Deposits with Banks: 0.17 0.34
Markup on Term Finance
Certificates: 7.08 0.03
Net Gain on Marketable Securities: 1.40 1.39
Profit on Sale of Fixed Assets: 1.55 0.44
Unrealised Gain on Investment
in marketable securities: 1.81 2.98
Other Income: 0.84 0.96
Gross Income: 138.76 128.90
(Total Expenses & Provisions): (117.18) (109.61)
Modaraba Company's
Management (Fees): (1.67) (1.02)
Profit Before Taxation: 19.91 18.27
Profit After Taxation: 19.91 16.67
Earnings Per Certificate (Rs): 0.78 0.65
Certificate Price (Rs)
on 21-06-05: 7.10 -
Price/Earning Ratio: 9.10 -
Book Value Per Share (Rs): 13.37 12.58
Current Ratio: 1.11 1.43
Lease Income/Total Income (%): 82 83
Net Profit/Total Income (%): 14.34 12.93
R.O.A. (%): 0.92 0.97
R.O.E. (%): 5.85 5.20
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